A fit of strategy, structure and culture is an essential success factor for any strategic sustainability transformation. For creating a strategy-focused organization with “purpose”, strategic goals must be integrated into the management and control systems to become relevant for decision-making. Thus, resources, skills, attitudes, incentives, and management information are aligned to the strategy. Consequently, the strategic projects with the highest impact on economic, social, and ecological objectives will get the necessary financial and time resources.
Budgets as well as individual performance indicators of your employees are derived from the strategic goals of the organization and combined with the incentive system. Capital budgeting determines how competing projects are prioritized and limited resources are allocated. Here is the “moment of truth” as it reflects to what extend propagated sustainability ambitions become relevant in managerial decision making. Eventually an integrated management reporting provides the necessary transparency through consistent, focused, and reliable information. Authentic leadership and a sustainability-oriented company culture provide the “fertile soil” for the required dynamic innovation and adaptation processes.
