Six sigma for sustainability : how organizations design and deploy winning environmental programs

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PROVEN STRATEGIES FOR CREATING CORPORATE SUSTAINABILITY PROGRAMS

Co-written by Six Sigma Black Belts and LEED Accredited Professionals, this pioneering guide reveals how to use the power of Six Sigma to develop and implement enterprise-wide green initiatives. Six Sigma Sustainability explains how typical Six Sigma DMAIC structures such as program governance, project charters, transfer functions, measurement systems, risk assessment, and process design support environmentally sound business practices.

Real-world examples demonstrate how specific problems in areas such as carbon emissions, energy conservation, materials recycling, water use, and finance can be solved using Six Sigma tools. The detailed information in this practical resource helps you to deliver innovative programs that simultaneously reduce environmental impact and create business value.

COVERAGE INCLUDES:

Developing the business case for necessary investments in sustainability Sustainability leadership and the collaborative management model Applying the Six Sigma transfer function framework to identify critical drivers of success Sustainability measurement and reporting Designing a change management strategy and leveraging teams using the Six Sigma DMAIC framework Managing corporate real estate portfolios in compliance with green initiatives Case studies that show how to use Six Sigma methodologies to improve sustainability functions Design for Six Sigma--using the House of Quality and other essential Six Sigma design tools Stakeholder management--best practices for driving adoption of high quality solutions

Author Notes

Tom McCarty , Six Sigma Master Black Belt, is a Managing Director within the Strategic Consulting group of Jones Lang LaSalle where he leads Six Sigma deployment strategies within the firm and for client engagements. He is the lead author of The Six Sigma Black Belt Handbook , and co-author of Six Sigma Financial Tracking and Reporting . Mr. McCarty's clients include HSBC, United Health Group, Fidelity, Sprint, Agilent, American Electric Power, Starbucks, Motorola, and the U.S. Department of Defense.

Michael Jordan is a Senior Vice President and leads Jones Lang LaSalle's Energy and Sustainability Services (ESS) Americas Corporate practice. He has worked with real estate executives at Fortune Global 100 companies to cut costs, manage carbon, and build greener buildings worldwide. Mr. Jordan is a LEED Accredited Professional, a trained facilitator in The Natural Step sustainability framework, and a Six Sigma Master Black Belt.

Dan Probst has been in the commercial real estate industry for over thirty years including 23 with Jones Lang LaSalle. He currently serves as Chairman of the global Energy and Sustainability Services practice. He is responsible for developing and delivering products and services to help clients reduce energy costs and their real estate related environmental footprint through innovative portfolio and occupancy strategies, workplace standards, and operating practices. Dan has a Mechanical Engineering degree from Purdue University and an MBA from Indiana University, and is a LEED Accredited Professional.

Prologue	p. xv
Introduction	p. xxiii
Acknowledgments	p. xxix
A Letter from the Next Generation	p. xxxi
Chapter 1 Developing the Business Case	p. 1
Who Should Address This Challenge?	p. 2
Developing the Sustainability Business Case at the Company Level	p. 4
Workforce	p. 6
Customers	p. 7
Regulations	p. 8
Developing the Sustainability Business Case at the Project Level	p. 12
Chapter Summary-Key Points	p. 18
Notes	p. 19
Chapter 2 Sustainability and the Collaborative Management Model	p. 21
The Paradox	p. 21
New Levels of Organizational Complexity	p. 22
Evolution of the Six Sigma Leadership Framework	p. 26
Six Sigma as a Leadership Framework	p. 27
The Collaborative Leadership and Governance Model	p. 30
Developing a Set of Leadership and Management Practices	p. 31
Annual Planning and Strategy Development Workshop	p. 33
CMT Strategic Planning Dialogue Agenda	p. 33
Midpoint Dialogue Session	p. 33
Weekly Reviews and Alerts Dialogue	p. 34
Collaborative Management Process Summary	p. 34
The Need for Real-Time Performance Data	p. 34
The Role of the Facilitator/Coach	p. 35
Moving from Model to Practical Application	p. 36
The Key to Breakthrough Performance	p. 36
The Need for Discipline and a Collaborative Leadership Environment	p. 43
Chapter Summary-Key Points	p. 45
Chapter 3 The Sustainability Transfer Function	p. 47
Transfer Functions and Why They Are Important	p. 47
Building the Sustainability Transfer Function	p. 49
The Transfer Function for Office Waste	p. 53
The Role of Location	p. 58
The Transfer Function for Office Water	p. 61
Conclusion	p. 64
Chapter Summary-Key Points	p. 65
Notes	p. 65
Chapter 4 Sustainability Measurement and Reporting	p. 67
Reporting Overview	p. 68
Benefits and Drivers for Reporting	p. 69
Brand	p. 72
Track Progress toward Goals	p. 72
Regulatory Compliance	p. 72
Shareholder Pressure/Securities and Exchange Commission (SEC) Guidance	p. 74
Reporting and Measurement Standards/Protocols	p. 75
The Greenhouse Gas Protocol	p. 76
The Global Reporting Initiative (GRI)	p. 78
The Climate Registry	p. 80
The Carbon Disclosure Project (CDP)	p. 81
International Standards Organization (ISO)	p. 83
Process and/or Tools	p. 83
Consider Business Goals	p. 84
Consider GHG Accounting Principles	p. 85
Define Organizational Boundaries	p. 85
Define Operational Boundaries	p. 86
Select Base Year	p. 86
Identify Emissions Sources/Calculate Emissions	p. 86
Verify Inventory	p. 87
Reporting Emissions	p. 87
Establish a GHG Reduction Target	p. 87
Examples of Voluntary Reporting Initiatives	p. 88
Sustainability Investment-Rating Agencies	p. 88
Buildings	p. 90
Chapter Summary-Key Points	p. 93
Chapter 5 Transformational Change and the Power of Teams	p. 95
Why Green Project Teams Fail	p. 96
Uncertainty of Purpose, Lack of Goal Clarity	p. 96
Narrow Focus	p. 97
Lack of Authority	p. 97
Insufficient Data and Tools for Analyzing the Data	p. 98
Weak Leadership	p. 98
Eliminating the Potential Failure Modes	p. 98
The Six Sigma Methodology for Driving Team Success	p. 99
Development of Detailed, One-Page Team Charters	p. 99
Business Case	p. 100
Opportunity Statement	p. 100
Goal Statement	p. 101
Project Scope	p. 102
Team Selection	p. 102
Team Charter Evaluation	p. 103
Establishing a Supporting Leadership Structure	p. 103
Sponsors	p. 103
Champions	p. 104
Team Leader	p. 105
Adoption of a Consistent Team Problem-Solving Model Known as DMAIC	p. 105
Define	p. 106
Measure	p. 107
Analyze	p. 109
Improve	p. 111
Control	p. 113
Blitz Teams	p. 115
Summary of DMAIC	p. 116
Change Management	p. 116
Do You Change or Just Think about Change?	p. 117
Myriad Theories, Universal Formula	p. 118
Create a Shared Need	p. 119
Shape a Vision	p. 119
Mobilize Commitment	p. 121
Monitor Progress	p. 121
Make the Change Last	p. 121
Organized for Change	p. 126
Leading Change	p. 127
Six Sigma Integrated Team Framework as a Model for Driving Transformational Change	p. 128
Sponsors' Launch	p. 128
Champions' Launch	p. 133
Project Launch	p. 134
DMAIC, Blitz Teams, Organization-Wide Adoption	p. 135
Putting It All Together	p. 135
The Six Sigma Methodology Applied to Sustainability Projects	p. 136
Background	p. 136
Define	p. 136
Measure	p. 137
Analyze	p. 137
Improve	p. 138
Control	p. 139
Chapter Summary-Key Points	p. 140
Note	p. 141
Chapter 6 Sustainability and Real Estate	p. 143
Real Estate Decisions Relating to Energy and the Environment	p. 146
The Right Steps in the Right Order	p. 147
Reduce Your Space Requirements	p. 149
Factor Carbon into Location Decisions	p. 150
Transportation	p. 151
Energy and Water Consumption	p. 151
Electrical Power Sources	p. 151
Site Selection for New Space	p. 151
Physical Risk of Climate Change	p. 152
Apply Green Standards to New Buildings or Space	p. 153
Existing Building Operations and Retrofits	p. 156
Engage Employees in Support of Green Initiatives	p. 158
Green Leasing	p. 160
Financing Multitenant Building Retrofits and Existing Lease Constraints	p. 165
Measuring Success and Environmental Reporting	p. 166
Chapter Summary-Key Points	p. 167
Notes	p. 168
Chapter 7 Six Sigma Sustainability Project Examples	p. 169
Selecting Projects	p. 169
Example Project: Reducing Cost and Carbon Through Energy Efficiency in Office Buildings	p. 171
Example Project: Reducing the Environmental Impact of Company Office Space through Increased Office Space Agility	p. 177
Example Project: Greening Leased Space	p. 186
Define	p. 187
Measure	p. 188
Analyze	p. 189
Improve	p. 189
Control	p. 190
Chapter Summary-Key Points	p. 190
Notes	p. 190
Chapter 8 Design for Six Sigma	p. 193
Designing the Corporate Sustainability Program Using the House of Quality	p. 195
Step 1 Identify and Prioritize Customer Requirements	p. 195
Step 2 Translate Customer Requirements into Measurements That Reflect Those Requirements	p. 197
Step 3 Set Performance Targets	p. 198
Step 4 Identify Critical Process Features Required to Achieve Performance Targets	p. 200
Step 5 Design the Processes That Will Meet the Critical Features	p. 204
Design and Innovation in Projects Using DMADV	p. 208
Measure Phase: Operational Definitions	p. 213
Chapter Summary-Key Points	p. 221
Chapter 9 Stakeholder Management	p. 223
Defining Stakeholder Management	p. 225
Understanding Stakeholder Needs	p. 225
Converting Needs to Requirements	p. 226
The Stakeholder's Type and Level of Influence on the Sustainability Project/Initiative	p. 230
Assignment of a Team Member to Own a Stakeholder Relationship and Drive the Strategy	p. 232
Likelihood/Degree of Stakeholder Support/Opposition to a Project and Associated Factors	p. 235
The Web of Stakeholder Groups	p. 237
Conclusion	p. 242
Chapter Summary-Key Points	p. 243
Notes	p. 244
Conclusion Letters to Tomorrow's Corporate Leaders	p. 245
Letter to Tomorrow's Chief Sustainability Officer	p. 245
Letter to Tomorrow's Corporate Real Estate Leader	p. 247
Appendix A Business Case Template and Examples	p. 249
Appendix B Sustainability Transfer Function	p. 257
Appendix C Sample Energy Conservation Opportunity Evaluation Checklist for an Office Building Assessment	p. 259
Appendix D Sample High-Level Process Map for Energy Conservation in an Office Facility	p. 261
Appendix E Sample Functional Performance Criteria for Enterprise Carbon Accounting Software	p. 263
Index	p. 265

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