Context: This post originally appeared in an IBM Innovation Jam threaded discussion about what kind of partner ecosystem IBM might want to develop if they were to enter the sustainable management consulting industry. I’ll update the post below if anyone in the jam posts an interesting reply.

1.) The Natural Step
2.) Business for Social Responsibility
3.) Natural Logic
4.) Natural Capitalism, Inc.
5.) McDonough & Braungart

What I know about these organizations through limited personal contact is that they have a very difficult time selling “eco-efficiency”. Corporate clients have been reluctant to invest in the relatively low risk yields that stem from identifing and reducing system waste (energy, water, all resources). The consultants have had better success selling eco-innovation.

What exactly does this mean?

Tough question; and one at the heart of the sustainable business challenge. RMI has been promoting eco-efficiency since the 70′s; their case studies and analysis are relatively unchallenged… yet the pre-Inconvenient Truth market has been relatively non-responsive.

I say pre-Inconvenient Truth because it’s obvious that we’ve only recently crossed the tipping point in terms of mainstream recognition of the risks and opportunities that sustainable people have been talking about for some time. This is a not a minor tipping point either. Corporate behavior is rapidly changing as evidenced by Wal-Mart, GE, BP, and many many others. Perhaps general attitudes toward buying eco-efficiency are changing quickly. Perhaps not. At the end of the day, many people just aren’t excited about how much money you can save by superinsulating buildings or installing graywater treatment systems.

Even if resource prices continue to increase, I don’t anticipate an immediate shift in industrial behavior vis a vis efficiency standards. One major obstacle is the human dimension issue (the narrative) that I mentioned above. Another obstacle is that regulatory bodies often allow organizations to externalize a significant share of the costs associated with resource innefficiency .

To hedge against this risk of decision makers remaining hesitant to invest in efficiency measures, some consultants are selling sustainable initiatives as competitive advantage, focused on areas of:
1.) innovation
2.) product leadership
3.) improved public image
4.) enhanced recruiting and employee job satisfaction

Sustainability is easier to sell when you wrap it in a compelling story. Some marketing and PR organizations sell green washing services. That’s something entirely different than what I’m describing. The difference comes from metrics. A good story needs tangible metrics to back it up. IBM isn’t the greatest at telling stories, no offense. But you’re great at quantitative analysis and IT systems integration.

These are both key areas of emerging sustainable management practices where IBM has a competitive advantage. IBM is in a position to incorporate sustainability oriented metrics into existing decision making platforms.[tags]IBM, Innovation Jam, Big Green[/tags]