Sustainability Thinking Pays Off; New Framework Drives Game-Changing Ideas
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Sustainability Thinking Pays Off; New Framework Drives Game-Changing Ideas presented by Michael Huthart - ADVA Optical Networking.
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Sustainability Thinking Pays Off; New Framework Drives Game-Changing Ideas
- 1. Sustainability thinking pays off New framework drives game-changing ideas Michael Huthart, June 17, 2015
- 2. © 2015 ADVA Optical Networking. All rights reserved. Confidential.2 Content • Who is AVDA Optical Networking? • CSR in ADVA pre-2014 • Get in the game ADVA! • New Way of thinking – 10 dimension model Baseline • Post-mortem after Baseline • Fixing the weak spots - Stakeholders Engagement Example • Fixing the weak spots – Circular Economy Example • The Game Changing Challenge • So where did we take it? • Public recognition - rewards
- 3. © 2015 ADVA Optical Networking. All rights reserved. Confidential.3 ADVA Optical Networking Richardson Atlanta Munich Meiningen Berlin Singapore Shenzhen Headquarter Office Representative Mobility Data Centers Cloud ADVA is a global provider of fiber optic infrastructure products and services
- 4. © 2015 ADVA Optical Networking. All rights reserved. Confidential.4 Culture of Continuous Improvement & Growth Our History • Public company (FSE: ADV, TecDAX) • Founded in 1994 Our Performance • 19% revenue CAGR since 1994 • 2015 revenue to exceed 350M EUR Our CIP Culture • Rooted in TL9000 framework • Global ISO9001 Certification (2006) • Global TL9000 Certification (2009) • Global TL9000 Re-Cert (annually) • We’re constantly optimizing internally via ADVA Efficiency Engine, Lean, 6-sigma, etc Our People • 1498 person team at year-end 2014 Our Innovation Strength • 700 R&D engineers (50% of staff) at year-end 2014 • up 15% per year on average over the last 4 years Your trusted partner for speed and innovation
- 5. © 2015 ADVA Optical Networking. All rights reserved. Confidential.5 CSR in ADVA 2010 • We had a mix of good and bad • We had no cohesive framework • We had to learn to share • We had great programs hidden • We had no public ‘face’ wandering no ‘face’
- 6. © 2015 ADVA Optical Networking. All rights reserved. Confidential.6 CSR in ADVA 2010 • By end 2010 we had a pretty good idea of what we needed to build • It was a BIG list! • Things like… Building cross-functional teams Nurture Local Volunteer’s Developing Supplier Code of Conduct
- 7. © 2015 ADVA Optical Networking. All rights reserved. Confidential.7 Fast Forward to 2013 – the 5 pillars • By then our house had a foundation – the 5 pillars
- 8. © 2015 ADVA Optical Networking. All rights reserved. Confidential.8 Fast Forward to 2013 – huge momentum
- 9. © 2015 ADVA Optical Networking. All rights reserved. Confidential.9 Get in the game ADVA! • But still, at the end of 2013 we were told to get serious about Sustainability or potentially be replaced • While our program had matured, it still lacked structure and cohesiveness • It was a wake-up call for ADVA – we needed a more comprehensive approach
- 10. © 2015 ADVA Optical Networking. All rights reserved. Confidential.10 New Way of Thinking - 10 dimension model BASELINE • We opened our doors. • We engaged and learned a more comprehensive approach. • We received clear feedback on strengths and gaps.
- 11. © 2015 ADVA Optical Networking. All rights reserved. Confidential.11 Post-Mortem after baseline • We didn’t have the right team – needed more horsepower and wider reach • We had complete blind-spots • We had to recommit ourselves to learning about blind spots and developing programs around them.
- 12. © 2014 ADVA Optical Networking. All rights reserved. Confidential.1212 Stakeholder Engagement Example
- 13. © 2015 ADVA Optical Networking. All rights reserved. Confidential.13 Who are ADVA Stakeholders? • ADVA Stakeholders customer community employeesuppliershareholder analyst +
- 14. © 2015 ADVA Optical Networking. All rights reserved. Confidential.14 How do we typically engage them? customer community employee supplier shareholder analyst Customer QBR’s, Regional ADVA Symposiums, Industry Symposiums, Trade Shows, Annual CSAT Survey administered in-person, GRI Index Local focused outreach to preferred charities, ADVA open house events at bigger sites, ADVA-driven involvement in regional environmental topics Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, GRI Index Supplier Lifecycle Management Process, Quarterly Business Reviews, Process Quality Audits, CSR & Sustainability Audits, GRI Index Global Management Meeting, Quarterly Vorstand Town Hall Meetings, Workers Council, Monthly Executive Reports, Employee Sat Survey Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, Analysts Day, GRI Index
- 15. © 2015 ADVA Optical Networking. All rights reserved. Confidential.15 But, Sustainability dialog has been limited customer community employee supplier shareholder analyst Customer QBR’s, Regional ADVA Symposiums, Industry Symposiums, Trade Shows, Annual CSAT Survey administered in-person, GRI Index Local focused outreach to preferred charities, ADVA open house events at bigger sites, ADVA-driven involvement in regional environmental topics Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, GRI Index Supplier Lifecycle Management Process, Quarterly Business Reviews, Process Quality Audits, CSR & Sustainability Audits, GRI Index Global Management Meeting, Quarterly Vorstand Town Hall Meetings, Workers Council, Monthly Executive Reports, Employee Sat Survey Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, Analysts Day, GRI Index
- 16. © 2015 ADVA Optical Networking. All rights reserved. Confidential.16 Let’s change that going forward • Develop a Strategy • Move away from top-down towards collective voice • Institutionalize dialog – collect the inputs and feed back
- 17. © 2015 ADVA Optical Networking. All rights reserved. Confidential.17 • Stakeholder announcement and Survey on Sustainability. • Feedback to Stakeholders of aggregated results. • Annual GRI reporting. • External GRI assurance. • Annual standalone Sustainability Report. • Frequent public website updates on ‘About Us’. Develop a Strategy on Stakeholder Engagement • Let stakeholders know Sustainability is a strategic initiative for ADVA. • Collect stakeholder direction how they want us to progress the topic. • Return a readout of the consensus direction we aggregate from them. • Show them how their direction results in future goals. • Institutionalize collecting stakeholder direction. • Institutionalize reporting of our results. Stay in constant dialog with ADVA Stakeholders on how we should drive Sustainability in ADVA. Mission Key Objectives Key Initiatives Set strategic direction with the voice of the Stakeholders
- 18. © 2015 ADVA Optical Networking. All rights reserved. Confidential.18 Move away from top-down customer community employee supplier shareholderanalyst Survey 1 Survey 1a Long-standing CSAT Survey Long-standing Employee Survey Continue 1a annually Integrate in ESS annually Integrate in CSAT annually Continue 1 annually
- 19. © 2015 ADVA Optical Networking. All rights reserved. Confidential.19 Institutionalize Dialog • Annual CEO Statement • Annual GRI Index • Every-other-year GRI External Assurance • Annual Standalone Sustainability Report • Constant updates to public website About Us
- 20. © 2015 ADVA Optical Networking. All rights reserved. Confidential.20 Circular Economy Example
- 21. © 2015 ADVA Optical Networking. All rights reserved. Confidential.21 ADVA’s first full LCA - 2012
- 22. © 2015 ADVA Optical Networking. All rights reserved. Confidential.22 CE Best Practices Exposure • ADVA sought and received training on CE Best Practices
- 23. © 2015 ADVA Optical Networking. All rights reserved. Confidential.23 CPMR’s Routers Bringing to light what we were already doing Refurbishment • We’re taking back the BT Routers that have either been cancelled or ceased from BT. • We wipe off circuit information, test and check operating status. • Approx 200 units per year from one BT stock location alone. Re-Use Olympic Refurb Project • Program in place for the kit used in the Olympics. CPMRs and SFPs. The process offers BT… • CPMR – Test, replace accessories, clean and test, accessories clean and/or replace. • ADVA supplied the packaging to BT to return these units to ADVA. • To-date we have completed 152 x CPMRs and 201 x SFPs. • Creative Customer Programs bring value to customer and environment
- 24. © 2015 ADVA Optical Networking. All rights reserved. Confidential.24 Game Changing Challenge - Pitches • Pitch 2 Radical ideas: • 1) Network Design 2) ADVAnced Logistics • Saw Long-term benefit Oh, let’s go do this NOW! x-Haul X Y
- 25. © 2015 ADVA Optical Networking. All rights reserved. Confidential.25 Game Changing Challenge – Real Benefits Real Customer Benefits • Saves 300,000 miles/year • Saves 13,000 hours/year • Cuts 750 tons CO2 /year • 300% ROI • New chapter in our relationship
- 26. © 2015 ADVA Optical Networking. All rights reserved. Confidential.26 So where did we take it? We moved from high Bronze (Red line) to high Silver (Blue line) • Major improvements in 1 year • Won Game Changing Challenge
- 27. © 2015 ADVA Optical Networking. All rights reserved. Confidential.27 Don’t be afraid to jump in – there can be a payoff!
- 28. info@advaoptical.com Thank you IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation. Copyright © for the entire content of this presentation: ADVA Optical Networking.