Fine Sustainability

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Sustainability of an Organization

The typical measures of organization sustainability are usually the measures of the organization's revenue, presence, financial health, reporting transparency, supply chain management and CSR among others.

Most established companies who have been doing well will hire sustainability experts to develop & implement their strategy and public relations. They were first class in their various activities and managing the expectation and influence of their stakeholders.

However, It struck me during an event opening address that the Managing Director mentioned that the true sustainability of an organization should be the measure of her customers' aspiration to work with the organization (or buy their services), work with the organization, repeatedly continue to want to work with the organization and influence their contacts to use the services. How right was she! The trust places on the organization from her various stakeholders, including employees, suppliers, regulators, communities and the extended society, is what would keep the organization relevant. Afterall, the objective of any organization is to serve her customers and help them to be successful.

Its just so straightforward & simple and, yet, it was so surprising that many billion dollar corporation could not get this fundamental right.

The Weaknesses of the Strong

Global organizations (MNC), as compared to small-medium enterprise (SME) counterparts, have depth in resources, both financially and talents. However, many innovations from the SME were beyond the imaginations of these global MNCs. SME were also more nimble and responsive to the needs of their target market while they, however, lacked the resources to pursue perfection. This may be a blessing in disguise for the smaller ventures. Then, were the Strong truly strong?

Here are my lists of frustration which may give hints to why the Strong sometimes fails to act on opportunities.

1. MNCs were usually run by professional managers where they strategies were strongly in place to grow their businesses. These were also the same set of strategies that made them successful and, thus, managers defended them with their “power” ignoring the flaws of the strategies in the changing environment and dismissing potential opportunity (but could be industry game changer) as “not their priority”.

2. Most MNCs adopted matrix management that required clearance from multiple managers of as many functions to clear before an investment can be made. Many of these managers had varying agenda and priorities. In many cases, an immediate opportunity to one may not be important to another. The “due diligence” process on many occasions killed good opportunities or made a good innovation mediocre.

3. Depending on the DNA of the organization, it was common that matrix managers maintain neutral stance on the presented case. They questioned to delay a decision for fear of making a decision contrary to their supervisor or the management. Many opportunities and/or innovation died on its vine.

4. MNCs, unlike SMEs, found many opportunities, especially those strategic in nature, not attractive in their Return on Investment compared to their tried and tested opportunities. These resulted in many MNCs losing market share that they never were able to regain.

5. As most MNCs employed the best strategists and statisticians, the best laid plans were mainly based on historical data. Many were caught in today pace of change where projection from historical data could not provide the long term vision that they used to be able. In addition, with the global nature of these organizations, they failed to listen and translate quickly the “noises” from the ground.

6. The inflexibility and lack of urgency of major organizations, as a result of the multiple hierarchical structure and decision matrix, to response to the changing needs of the customers and operating environments had cause many to be irritated by “fleas” rather then their traditional competitions or the big elephants.

7. Many MNC also adopted the 20-80 rules where they focus on the top 20% of their existing markets which gave them their 80% of the business. Many had neglected the fast emergence of the smaller markets which by demographics and potential will overtake the incumbent markets.

8. Most successful and cash-rich organization forgot how to fight in critical markets where they did not have a huge lead. The hunger and that extra bit of winning mentality were usually found missing as the organization expanded. Some resorted to acquiring their smaller competitions but, even such, failed to integrate and win. SMEs had to fight as they need to win to survive.

9. As an organization grew and expanded beyond their originating shores, the ego became big and the organization became focus on serving the needs of their ego rather than that of their customers. Organization defined their success measurement and remained successful as long as they meet what they had defined and, many occasion, delivered shareholders values.

10. Last, but not least, these global giants, maybe due to their physical and cost structure, did not have the ability to execute small initiative and/or markets.

Many successful organizations would not agree to the above points claiming that they were known facts and had been addressed. Many also claimed that they organizations remained successful remained as market leader and those would not applied to them. Well, maybe they were right until their business performance proved them wrong.

Technology Shifts Power

Changes happens everyday. The cause of change varies. The magnitude and speed varies. So are the impacts. Actually, every individual, organization or group perceived the impact differently. While leaders were focusing at the big picture, the minority can creep unnoticingly and overturn the sight.

"One of the great liabilities of history is that all too many people fail to remain awake through great periods of social change. Every society has its protectors of status quo and its fraternities of the indifferent who are notorious for sleeping through revolutions. Today, our very survival depends on our ability to stay awake, to adjust to new ideas, to remain vigilant and to face the challenge of change." - Rev. Dr. Martin Luther King, Jr.

The emergence of internet have brought about applications that brought people around the world closer through allowing information to share at a faster speed and in more than bi-directional at a single instant. Such has increased the quantum of information flow and also reached out to more individual from more than one channels and in greater frequencies. The source and credibility of such information were usually difficult to trace or validate. This is, however, not the point of discussion in this article.

Technology, or the rapid advancement of it, have somehow intensified, expedited and magnified the changes through engaging a wider audience and, as such, hit on more individuals. The awareness to the masses created through today’s technology is exponential and difficult to regulate or control. Another factor for the viral is the speed of transmission. The speed of dissemination and spread kept response time so short that they became difficult to contain and mitigate.

The conduits facilitating the dissemination such information enable reach to people of differing culture, educational background and experiences. As such, they enlarged the group of people accessing to the transmitted messages as well as opinions to the messages. These people may or may not have any relation of stake to the content but may do so to for a variety of reasons. However, their opinions may directly or indirectly influence the decision of others especially when a majority of the respondents leaned towards a general direction. They can be contagious.

“Revolutionary change does not come as one cataclysmic moment (beware such moments!) but as an endless succession of surprises, moving zigzag toward a more decent society. We don't have to engage in grand, heroic actions to participate in the process of change. Small acts, when multiplied by millions of people, can transform the world."


Howard Zinn, "The Optimism of Uncertainty," in The Impossible Will Take a Little While, edited by Paul Rogat Loeb

Anyone with an intention to disseminate messages to the masses can easily do it with the help of technology and several good nodal connections that can “help fan the fire”. It is certainly necessary that the messages be scripted carefully to leverage on the strengths of the conduits. The messages should provoke emotions among some groups of people and in the direction with the mega-trends of the targeted communities. How dangerous technology can be? Technology can shift power and is a double edge sword when linked with power. Leave that personal agenda and ego behind and technology can be leveraged for the good of mankind.