Social Responsibility in Times of Financial Crisis . . . from an Interview with Jan Blomstrann, President and CEO of NRG Systems

In 1987 NRG Systems formally acknowledged the effort Jan Blomstrann was contributing to the young company by bringing her on payroll.  Founded in 1982 by David Blittersdorf, the company’s main accounting system at the time was a proverbial shoe box of receipts.  Working as a nurse, yet intimately involved in the growing enterprise, Jan noted the need to create a balance sheet.

Ahead of its time in terms of producing instruments to measure wind capacity and capability, NRG business management systems lagged behind the creative engineering aspects of the company.  Jan decided to take classes at Champlain College learning about both business and computers, also in their neophyte stage in terms of small business accounting.

In the late 80s, Jan was not particularly interested in wind energy. “This was in the infant years of wind energy,” she recalled.  “At a trade shows there would be 50 people, all engineers very excited about how a gear box worked.”

In fact, when she spoke to people about what she was doing, the initial reaction was: “You’re doing what?  Making wind instruments?  Trumpets?  Can you make money on this?”

Nurse turned CEO implements SR policies instinctively    JanBlomstrann

She was interested, however, in creating a business organization and management systems to professionally run the company.  “I did like the business part:  accounting, hiring people, figuring out how we were going to offer health insurance.

Although she did not label it at the time, the policies that made the most sense to her were socially responsible.  “It was just the right thing to do, especially in terms of (employee) retention.”

“NRG Systems, by nature of the product, is contributing something greater into the world.  I don’t think I ever thought of (the employee policies) as ‘I’m going to do things in a socially responsible way.’  Things just sort of evolved.”

Those policies included a compensation package of both salary and profit sharing as well as other benefits based on their company values.  “Our core values go back ten years or so, when we first got mature enough to do a strategic plan.  We said; ‘Let’s write down how we have been operating for twenty  years, and document it.’  Those core values — Environmental Stewardship/Leadership, Fair Employment, Profitability, Integrity, Innovation, Dedication. Our core values were reflective of who we were.”

Her ambivalence to the company product changed as the business grew.  “In the late 1990s young people started sending in resumes,” Jan reminisced. “They said: ‘I don’t care what it is, is there a job for me?’” Jan was startled at the requests that were predicated not only on the wind industry, but by her socially responsible policies. “It was very infectious for the employees to see the success of the company.  We were contributing to a new way of being and doing business. Those years were very exciting.”

With the success of NRG Systems, there came a time to move out of their rented sheet metal building.  “We had a desire to create something that had a lighter footprint on the planet.  It was time for us to move, and we felt it would be nice to walk the talk.”  This impetus coincided with her being named President and CEO of the company in 2004.

Architect Bill Maclay was given a power budget and this mandate: create a building that performs well, feels good, and is inviting.  “The entire process led to a LEED certification that taught us along the way,” Jan remembered of her company headquarters.  “It was the fourth industrial building in the world to get LEED Gold.  All materials were sourced as locally as possible.  No off gassing furniture or carpet were specified, no formaldehyde, etc.”

Renewable energy industry stalls — SR policies challenged
“The entire renewable energy industry was on a steep growth curve from 2002-2008, when we built our addition.  Then, the crash affected our business, and the wind industry, as capital dried up, and no wind projects were being developed.  A year ago both the US and Chinese market further dipped at the same time due to public policies,” Jan explained.

After years of strong growth the wind industry stalled.  A world-wide recession, coupled with a Congress unwilling to work with the President in supporting renewables, made a comprehensive energy policy impossible. Jan noted:  “Renewables were left with a simple tax incentive policy.”  Financing dried up.  Projects stopped completely.

Quite suddenly, NRG Systems had to make serious, and extremely difficult, decisions. At the onset, it felt like the company was being ripped apart.  Jan found herself staying up nights.  “It nearly killed me to do what we had to do last year, especially letting people go. When a lot of profits coming are in, it can mask the more stressful aspects of running a business; it’s easier to be creative.”

“In the boom years,” she continued, “with the profit-sharing variable as a component of pay, sometime people earned 50% above base pay.  With the downturn, there were some quarters without any profit-sharing at all.  In these times both the loyal and cynical elements can come from employees.  Although the cynical element wondered out loud if management knew what they were doing, the loyal element buoyed NRG Systems.”

“For example,” Jan quietly told a story, “we had an older man in electronics.  It was a tough year morale-wise, and we were not making as much money.  He got a little discouraged and was going to get another job. We talked.  He thought about it and decided to stay.  I saw him a few days later and said, ‘Thank you.  I am so glad you decided to stay. I hope it will be a good decision for you.‘  His response:  ‘I could go to the other company and make more money, but my wife is sick.  If I stay here, I know I can go to her doctor’s appointments with her.’  People go through different stages in live and go through different things.  I want someone coming through the door happy to be here.”

“The soul of the company is still there,” Jan mused.  “Our values are still there.  In terms of the benefits, we need to get some of them back.  But, I am not looking for this just so I can benefit;  I want everyone to benefit as we grow.”

One example is the mental health of the company.  With the difficulties, Jan wanted to give the NRG Systems team an opportunity to process their stress as a group. “This fall, we brought in a consultant who works on happiness, leadership, and personal accountability.  I gave him the charge to give a recasting exercise.  How do we recast this time into a new intentional story?  How do we look at this time as a positive step in the evolution of the company?

“The entire staff was split into four groups and did this exercise.  I was not part of it so that everyone had a full chance to vent.  People expressed anger, frustration, doubt.  It was just therapeutic.  They all said they appreciated the opportunity to do so in a group supportive way.  It was a good chance to get it out.  The gossipy water-cooler conversations came down, and the faith in leadership is coming round.”

With creativity, SR values adhered to
Jan found herself questioning how to stay true to values during this transition, realizing that things could never go back to where they were.  She explored new initiatives to offer positive reinforcement and recognize people in ways other than cash with a constant wish to portray her sentiments:  “You are all valued, you are all here, we have a job to do together.  This is what we are going to do going forward to rebuild.”

“We prioritized and focused on doing what we need to do to keep what is most important, such as preserving 401(k)s.”  While maintaining NRG’s policy of Open Book Management, “I brought in the word “budget’”.  This is one way of keeping core benefits, and core values, while evolving the company as a whole.

In doing so, some green benefits stemming from the NRG Systems core value of Environmental Stewardship, had to be shelved.  Jan ruminated about the decision to no longer subsidize employee hybrid vehicles.  “I’ve had to take some of the benefits away. I could not do it anymore.  No one lost the benefit who already had it, but nobody new can access it.”

She also mentioned a change in the company holiday party where, in the past, a band had been hired.  This year, in recognition of all the musical employes, Jan smiled, “Two bands formed themselves and got up at the party!  It was all in house.  Although it was a little quieter, it was more fun!”

While some company policies had to change, there is great evidence that the company values of NRG have never been at risk.  As Jan said, “It does not cost money to have integrity.  There are values behind what we do that don’t go away such as community relations and corporate giving.  This is still an important piece.  We give away less, but our program is still there.  I really don’t think its an either or.  Neither is Flex Time.  It is easy to have flexible work hours regardless of bottom line.”

One particular change, Jan is very disappointed about.  “We brought in a chef in 2006 or 2007 and provided lunch four days/week.  During this transition, I had to take as much cost out of our budget as possible. I would love to put that back in.  I keep asking myself, ‘Is there something else I can do to make sure everyone gathers at noon and has that benefit?’

“Previously, no one was using cars.  Everyone would collect at noon and there was a company conversation.  Productivity-wise it was unbelievable.  Meeting was productive.  Now we’re back to people getting in their cars for lunch, or eating at desks.” Jan ruefully concluded.

“It is easy and enjoyable to offer such policies when you are profitable and growing and things look great.  It’s more difficult when it’s not.”  Jan is looking to create changes that are not only for now, but the long term health of NRG Systems into the future.

Market stress re-orients business; SR still foundation
Jan’s words conveyed her long term thinking and belief in the future:  “The past is the past. Don’t think that if a certain contract comes in, it will go back to the way it was.  We need to create a new future for ourselves.  New things might happen, but in a new way.”

“We’re in a real transition phase as a company.  I would describe us as a company that grew quite steadily, we had a tremendous record.  It was exciting and fun to be in this business.  The ability was there to provide a great experience for employees.

“The last couple of years have been a huge wake up call. We are about half the size in terms of revenue and 25% smaller in terms of staff.  There’s had to be a real refocusing on what does it mean to be in business and what does it mean to be a good business?  I am asking that question of myself.  A few people were not there in the beginning and now see a company that is much more serious and much more stressed.  Where is the room for Social Responsibility?

“How do I take this company to the next stage in a much less privileged way, and emphasize the social responsibility aspect?  How do I make sure we continue to evolve?  I don’t think it’s an either or.  I think a lot of those things we did in those years contributed to our success, our intellectual level, institutional knowledge.  Keeping people improves institutional knowledge.

“The company is now a smaller group, working hard.  Policies were put into place that, once things turn around, a smaller group will see the benefits of.  The structure is still all there.  The morale and feeling about the company will turn around.

“There is the story to tell that we went through hard knocks, had to let people go, but we survived as a group and will continue.  By letting go of things of the past, we will be far more careful; lots of lessons have been learned along the way.  We are a smarter and better business than we were three years ago.”

Several years in, after fully establishing the values and policies of the company, Jan started feeling a connection to what NRG Systems was producing as well as the business administration of the company: “I started getting excited about wind energy when we talked about distributed energy, all the things that start to make it more than a machine.  And wind energy doesn’t put out belching smoke!”

“Fast forward today, it is in my blood and who I am.”  Good thing for NRG Systems, the blood flows both ways.

http://www.nrgsystems.com

NRG Systems Headquarters • Photo by Carolyn Bates

NRG Systems Headquarters • Photo by Carolyn Bates

Julie Lineberger

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Leading From Any Chair – An interview with Jed Davis, Director of Sustainability, Cabot Creamery Cooperative

Our blog posts to date have covered individuals who own their own company or work at the highest levels.  This interview is one of our favorite stories as it originates with someone who might best be described as “aspiring to the C-Suite.”  Jed is a terrific example of what one orchestra conductor calls “leading from any chair.[1]”

More broadly, this story illustrates the role middle management can play in successfully weaving sustainability into the fabric of modern businesses.  While there are many excellent examples of charismatic, iconic leaders who bleed green and lead from the front, they remain a minority (albeit a growing minority) across the business landscape today.

So if sustainability is to become the norm, leaders must emerge from within, not just from above.  These new, mid-tier leaders must have a deep seated vision, dogged patience, and an extraordinary ability to work through and with others.  In the particular case of Cabot Creamery, this approach shows terrific promise for evolving the historic dairy farmer cooperative into a sustainability-driven enterprise poised for future success.

From Director of Marketing to Director of Sustainability
In 2007, Jed Davis was Director of Marketing for Cabot Creamery Cooperative, best known as makers of “The World’s Best Cheddar.”   Cabot, which dates back to 1919, is owned cooperatively by 1,200 dairy farm families in New England and upstate New York.

That summer, David Hill, Cabot’s SVP Sales, had returned from a sales call where he was asked, “What is your Sustainability Program?”  This sounded very different from the oft-asked, “Are you sustainable?” Cabot routinely interpreted the latter as an opportunity to discuss the many benefits of cooperatives, including working landscape, strong rural communities and providing award-winning dairy products.

Roberta MacDonald, Cabot’s SVP Marketing, tasked Jed with developing a Sustainability Program.  Jed brought some perspective as Cabot’s longtime liaison to organizations such as Vermont Businesses for Social Responsibility, but this presented an exciting, new learning curve.  Roberta and senior staff endorsed seeking outside counsel as well and Cabot turned to Mark McElroy from the Vermont-based Center for Sustainable Organizations for guidance.

Work on fully developing a Cabot Sustainability Program continued.  By February of 2008, Jed went to Roberta to let her know he was spending 50-75% of his time on sustainability issues.  By March, it was 100%.  In early April, Roberta brought the situation to Rich Stammer, Cabot’s CEO.  He approved of creating a new, full-time position called Director of Sustainability.  Roberta supported Jed taking the role, but all agreed it meant Jed needed to leave Marketing, feeling that sustainability and “spin” needed to be comfortably separated.

Jed took a long view of his work.  He had in mind a five-year plan to make Cabot a sustainability leader.  Importantly, he knew he could not do it alone, nor could he become the “sustainability police.”  So he began to make the case internally, listen to the naysayers, create quantitative and qualitative measures, and developing a support network for himself that both informed and inspired.

Make the case internally
It seemed to Jed that Cabot’s business approach, on a day-to-day basis, was quite consistent with the principles of sustainability, perhaps in large part due to its cooperative heritage.  Still, the concept of Sustainability was not well-understood within the organization and was new to the radar screens of the CEO and the senior management team.   As a result, what Jed had in a title, he lacked in specific direction and commitment.  Jed needed to build support.

One of the key, original allies ended up being the farmers themselves, in the form of the cooperative’s Board of Directors.  Each voting member of the cooperative’s board is a farmer himself or herself.  Collectively they voted to support and fund a project with the Manomet Center for  Conservation Sciences to create a sustainability scorecard for use on dairy farms.

What the board articulated very well was that they felt underserved to engage in conversation with their key stakeholders – from neighbors to local and regional officials and beyond.  Intuitively they understood that in many ways, farmers are the original leaders in stewardship, but they lacked the vocabulary of Sustainability to have that conversation effectively.

They also recognized that to have a fruitful conversation about Sustainability, they needed to have measurements that spoke to their economic and social impacts, as well as their environmental impacts.  Since farming is an occupation for less than 2% of the population, the farmers on the board were seeking a way to thoughtfully answer a question they were hearing more and more often: “Why is your dairy farm important to our community?”

Jed began working closely with Manomet in crafting a scorecard, based largely on prior work Manomet had done in the forestry industry.  Very shortly it became obvious that this project had implications far beyond just Cabot and, in fact, on the scale of the entire dairy industry.

A year into the scorecard project – now called the Vital Capital Index for Dairy Agriculture – the leading, national dairy industry trade group, Dairy Management Inc., agreed to take on and fund the project while continuing to work closely with Cabot, especially on beta-testing the concept with farmers.  Elevating the project to a national standard reflected positively on Cabot’s pioneering work, while also advancing national efforts towards a more sustainable dairy industry.

Listen to the naysayers
At the same time, Jed knew he had to engage the senior management team.  Rich Stammer, Cabot’s CEO, was thoughtful about Sustainability but was looking for proof.  Rich is an extremely intelligent leader, but hardly one who would be confused for one of the more iconic, green leaders.  Cabot’s CFO, Ed Townley, admitted that at the time, he thought sustainability “was a crock.”  Jim Pratt and Ed Pcolar, SVP and VP of Operations, respectively, were focused squarely on the financial bottom line; much less on the social, economic or environmental bottom lines.  Jed began to work with each of these key allies.

At a pivotal meeting with senior staff, Jed and Mark McElroy were presenting the nuts and bolts of proposed Cabot sustainability metrics using context-based sustainability.  CEO Rich Stammer, whose doctoral degree is in agricultural economics, challenged an assumption about using per capita as an allocation method.  As the meeting broke, Jed’s heart sunk, only to rebound moments later as Rich came back into the room, clearly thinking deeply about the problem.  He asked Mark and Jed to rework the calculations to provide allocation, instead, by some measure of added value.  The resulting approach – a denominator that reflects contributions to economic value – was later dubbed The DeStamminator and has become a hallmark of Cabot’s efforts to advance context-based sustainability.

Create quantitative and qualitative measures
Jed also worked closely with Ed Townley, the CFO, to make sure that the sustainability metrics under development properly incorporated financial realities of the business.  Ed himself proactively sought confirmation externally by asking key retail customers, “What are you doing with respect to sustainability?  Do you have expectations of your suppliers?”  Their answers led him to understand that sustainability was much more of a priority in our supply chain than he previously imagined.

In terms of organizational structure, Jed’s position was embedded in the Operations Team, reporting to Jim Pratt, SVP Operations.  Here Jed’s focus turned to engaging key members of the Operations Team.  Initially, Jed arranged meetings with key managers and supervisors and “interviewed” them as if for a story about Cabot and its sustainability practices for a fictitious magazine, Sustainable Dairy.  The results were amazing.  Stories emerged that revealed true pockets of innovation within the organization at one extreme, and at the other extreme, as Jed noted, “I felt like maybe I was speaking Italian” based on the glassed-over expressions that met him.

From this exercise, Jed had a better idea of who was ready to go, as well as who needed help starting the engine.  For those in motion already, the focus turned to sharing best practices across the company.  Amazingly, it proved over time that others, once their “engines” were fired up, have become among the most progressive managers in terms of piloting sustainability efforts.

With tremendous support from Ed Pcolar, VP Operations, a creamery Green Team was created.  This inter-disciplinary, cross-functional team was set up to meet monthly and identify projects that fell within the realm of sustainability in Operations.

Environmental bottom line topics like solid waste and energy quickly emerged from within the group and soon projects in both areas were yielding bottom-line results to the tune of six-figures.  Senior management took note, even highlighting some of the efforts at that year’s annual meeting of the cooperative, so that the farmers could hear the progress.  The Green Team became emboldened by its own success.  Importantly, Jed doesn’t lead the Green Team but serves only as an advisor/cheerleader.  The team is led by one of its members.

Jed used these allies to build the case within Cabot that there was an extraordinary opportunity to adapt the way Cabot does business – to use Sustainability as a lens through which any and every employee can review their work and impacts and from that observation, choose a path of continuous improvement.  Properly executed, this approach yields something for everyone, from employee satisfaction, to bottom line gains, to environmental impact reductions.

Create a support network
At the same time as Jed built unlikely allies, listened to the naysayers, and used independent quantitative and qualitative measurements to make his case, he developed a support network that sustained him and leveraged the work of Cabot.

Two key groups emerged
The first was a yearlong fellowship through the Sustainability Institute called the Donella Meadows Leadership Fellowship Program.  Jed was chosen as one of 20 fellows from across the globe who met in person four times over the year for one week apiece.  The program, based on the work of former Dartmouth professor Dana Meadows, co-author of the seminal Limits to Growth in 1972, focused on visioning, reflective conversation, and thinking in systems.  Cabot supported Jed in this fellowship, an experience that had a monumental impact on his development as a sustainability change agent.

Jed also sought to network with other sustainability officers.  A casual network, nominally called the Northeast Dairy Sustainability Collaborative, was created with Cabot and Jed’s counterparts from Ben & Jerry’s and Stonyfield.  It was a unique opportunity to have three dairy brands with different product categories (cheese, ice cream, and yogurt) but  similar sustainability aspirations and social intentions work together.  The Sustainable Food Lab, an organization to which all three belong, facilitates two to three meetings a year for the group.

Leadership without authority
What I found powerful about Jed’s story is how he is exerting leadership without being in charge.  Rather, he is imbuing in others a desire to change the way Cabot does business– by educating, showing competitive data, driving internal statistics, and holding up a mirror to the organization.  Some individuals at Cabot are driven by the cost or competitive advantages.  Many have also been influenced by the sense of doing the right thing.  Jed would say the instinct to do the right thing has always been a deep-seated value of Cabot: a sort of Cabot karma.

Because of this, what Jed brings to Cabot is a natural fit.  That being said, here is one guy with a lot of ideas, some eloquent language, and a healthy measure of elbow grease that has made a tremendous difference.  One can truly lead from any chair.


[1] The Art of Possibility, Rosamund Stone Zander and Benjamin Zander, September, 2000.

9 October 2012 – Ellen Meyer Shorb

Pushing an Industry into Sustainability . . . from an interview with 
Cliff Cort, President
, Triumph Modular Buildings

Cliff Cort is on to the world wide trend of modular building, with his very own twist. He notes that while the US market is sluggish on modular, buyers in other countries have wholeheartedly embraced the construction system. “There is less disruption to the site. It is quick. All over the world, people are wanting modular.” His twist to focus on “highly designed” and sustainable modular may be the game changer the US is waiting for.  As Cliff says, “Green is old news now.  The building code is making green the law as of late.”

Being an effective entrepreneur is about staying on the market edge. Cliff built Triumph Modular Buildings, and is now creating a piece of the company that is on that edge, by going highly designed green. Realizing the modular industry was made up of structures that had not changed in 30 years, Cliff decided time was ripe for change. “I knew everything was barely legal. Yes, all modular classrooms are built to code, but nothing more. They were the cheapest possible things – windowless classrooms. It was disgusting. I knew there was an unbelievable opportunity to raise the bar. The school systems have been getting what they asked for which is the least expensive alternative.”

The Importance of a Champion

In 2006 an architect from Germany, then working in Maryland’s Montgomery County school department, started a design competition in the United States. Familiar with modular construction in Europe, she knew America was lacking and needed to put together better buildings.

Cliff and his associates entered and won the competition for a green and energy efficient modular classroom design. They flew down to Washington, D.C. for the award. At that point, it was just a design. Cliff wanted it to be a reality. “My daughter was going to the Carroll School, so I asked: ‘How would you like to be the first one in the country to have a green modular classroom?’

“Steve Wilkins was the head of school and there was no precedent for what we were proposing. No one in the country had seen any green relocatable classrooms. It opened the eyes of all the dealers and manufacturers in the country.”



It IS Possible to Push an Industry


“There is this green movement coming. Sitting in front of a bunch of mobile modular industry folks, I was pushing them. The market did not push them.

“I knew I was in trouble with them because they were looking to maintain the status quo and maintain their existing assets. They were very protective of their legacy mobile buildings and classrooms,” Cliff explained.

A turning point came when the Executive Director of the Modular Building Institute said Cliff was right. “We have to embrace the green movement,” concurred Lori Robert from NRB Manufacturing, Ontario, Canada, and Vice President of the Modular Building Institute Board of Directors.

Cliff then created a green modular building that Harvard University used as a child care center for 18 months as they renovated another structure. “It won all these green awards including recognition from the Massachusetts Chapter of the US Green Building Council.  One judge said he voted for it because it sat softly on the earth.”

The trend continues. “We are looking into new prototype modular classrooms now.  For example, the Sprout Space classroom below is designed by one of the largest architecture firms in the world, Perkins+Will.  We hope to be able to deliver it nationally for a compelling price.  The financial result of our green projects have yet to pay back any big results, although word of mouth works and we have been invited to work on interesting projects lately.”

Expanding with Ideas and Energy


“People in schools are now starting to ask for green. Finally they are asking for green modular classrooms, addressing what we have been working on for years. It truly is transforming the industry. We have built the best temporary classrooms in the country two years in a row now. They are green, sustainable and relocatable.”

Cliff is abundant with ideas, some of them really radical in the opinion of the current industry. “I am trying to be relevant to the movement.”

Cliff also has ideas for modular power pad, a modular off-grid solar internet cafe type structure pictured below.

“You need to take risks to innovate.  I offered a group of people in my office to take the test to become LEED accredited and proficient.  I said anyone who got it by January 1, I would give a $10,000 bonus to.  Sure enough, the one who passed the test left the company a short time after.”

Cliff is fast paced, continually thinking, continually revising, pushing his company into the future. He is, in fact, challenging the entire industry.

Julie Lineberger

The Risks and Advantages of Socially Responsible Change: from a conversation with Mary Powell, Green Mountain Power

The executive offices of Green Mountain Power used to occupy 3,000 square feet on the top floors of a three story, glass building.  Now the current CEO, Mary Powell, has a stand up desk facing the front door occupying about 15 square feet.

It is a wonderfully stark image of a profound internal transformation.  In 1998, Green Mountain Power was a traditional, publicly traded utility facing bankruptcy. Now it is a financially sound, environmentally breakthrough utility providing 25% of Vermont’s energy.

The question that hung in the air as we talked to Mary Powell, the dynamo that drove this transformation, was, “Is this a classic case of a strategic realignment in the face of crisis – or are there lessons to be drawn from a traditional company reaching down to its core values and adhering to socially responsible principles in order to drive success?”  The transformation of Green Mountain Power shows how driving change through socially responsible (SR) principles can be both harder and easier than a traditional business turnaround.

When Mary came on board in 1998, under then-CEO Chris Dutton, she entered a company that had, “an arrogant reputation.  It was a big, stuffy area utility.”  She felt, “If we want to be saved, if we want customers to pay more money, we have to transform ourselves into a company worth saving.” Dutton agreed.  Mary and the senior team drove a change process that trimmed the fat in the organization reducing officers from 14 to 6 (now 4), employees from 340 to 200, square footage from 89,000 to 25,000, and the Executive area by 90% to 300 square feet.

Mary and the senior team clarified Green Mountain Power’s core values:  GMP would be the low cost, low carbon, incredibly reliable energy provider for Vermont.  “The neat thing about our values is that they align a lot with the State’s values.  We were looking at what key stakeholders want.  Vermonters want green and free.  Once you get that fly wheel spinning, it is amazing where it can take you.  We are becoming a renewable energy company.”

As with any change process that upends a company this dramatically, the changes engendered fear and pushback.   In the case of GMP, and other companies where SR principles drive change, Mary faced an additional layer of suspicion and politics.  Renewable energy was, and is, political.  There were factions opposed to renewable energy because of its perceived high cost, and/or because they didn’t believe in climate change.  On one side were the true green, anti-nuclear folks; on the other, the hard core Vermont Yankee supporters who wanted GMP to use nuclear power forever.

Fortunately, when Mary was made CEO, Dutton characterized her well; “fearless as she embraces change and new thinking.”  Mary said, “Courage is not the absence of fear, it is the presence of fear and the willingness to walk through it.  At times it was terrifying on a personal level.”

Mary contends that because driving change with SR strategies draws on deeply embedded values, it is powered, supported, and ultimately successful because individuals want and believe in this re-orientation.   “There were really smart, funny, committed, caring people.  Some who had strong environmental values, but they were over here in a pocket.”

Thus, Green Mountain Power, in committing to “low carbon”, aligned itself with a broad customer base that went beyond the naysayers and was able to leverage this market differentiation.  “Our vision was just about our customers and our vision for our customers.  The comment that ‘this is just a marketing ploy’ is not true.  It is really about our values.  We really want to see an energy future that is clean and green and renewable.  Have you seen another utility try to do a windfarm?  Tough decisions, but important ones, if a company is values-based and focused on the values of the majority of customers they serve.”

Taking a traditional, publicly held utility green faced some political landmines.  At the same time, it drove the current success (the wind project will greatly increase the size of the company) by tapping into a powerful customer value for clean, green, and renewable.   Driving a company to the next level with socially responsible strategies can be more risky and, at the same time, facilitate and ensure a profound transformation.

greenmountainpower.com

Ellen Meyer Shorb