Green Options

In yesterday’s Disruptive Innovation panel at SoCap09 “Three Successful Approaches to Scaling Impact”, Kevin Jones moderated a panel of three very different but equally disruptive business models. Instead of establishing a nonprofit organization to increase computer access around the world, founder Mark Beckford explained that NComputing is a for-profit company leveraging existing distributing channels and repair services in developing countries. Their hardware and software solution, which they call “the $70 PC”, can actually yield more margin and profit for distributors than more expensive computers with high-cost distribution networks.

NComputing is also using a technical solution to green PC use. With distributed computing, nComputing systems draw less than five watts, using 90% less energy than a typical PC, and can be run by solar power or a battery.

Sungeeta Chowdry of the Acumen Fund spoke about the Ripple Effect Project, their collaboration with IDEO (represented by Sally Madsen) to create solutions for customer-centered, sustainable and affordable delivery of water.

They brought together twenty organizations (both for-profit and nonprofit) on the ground in India and East Africa, in addition to the nonprofit Gates foundation, the private company IDEO and the Acumen social venture fund, for a complex cross-sector collaboration. IDEO led a human-centered design process, which means rapid prototyping, speaking to potential users immediately, iterating while continuing to listen, and coming up with a fairly quick solution. The resulting projects are commercial water sales operations, with some unusual aspects such as government ownership of the land and/or equipment in some places.

So why is water sales a more effective and scalable solution than donated aid? Some of the answers are compliance and aligning incentives. Madsen and Chowdry explained that people aren’t always able to make the best health decisions. Using a standard business practice of customer segmentation, IDEO put together a set of behavior profiles, so on-the-ground organizations could talk about more than health, such as by emphasizing the status of buying clean water or following  government direction.

Last week I blogged about avoiding trouble with human resource issues, and this week I’m taking a more upbeat note. As a green business, you’ve got a hiring and motivational advantage, and you should retain those dedicated employees with as many benefits as you can without breaking the bank.

Alignment around the Environmental Mission

One of the most important operational issues in any business is alignment around a common goal. In some organizations the mission and the highest priorities are unclear. Often, well-meaning staff members are working at cross purposes or are at least not benefiting by the compounding effect of everyone’s efforts complimenting that of everyone else.

In an eco-enterprise, you probably think about and speak about your mission often, and it is likely that your staff joined your green business because they believe strongly in the mission.

Knowing Employment Rules Helps You Devise An Ideal Strategy

As the owner of a green business, you have some flexibility in terms of paid time off and holidays, flexible work schedules and more, and this can help build staff loyalty and help save you costs. By assessing the specific needs of your staff, you can work out a custom benefits package that pleases them and works for you financially.

Do not assume that you have to have the same benefits that were offered at your former employer or that of your friends’ current employers. Find out the employment laws, and then define your own strategy.

I usually recommend separating vacation time from sick time, versus lumping it altogether as paid