Successfully Demonstrated Sustainable Practices by Yarra Valley Water Limited - Case Study Example

Organisation that has Successfully Demonstrated Sustainable Practices: Yarra Valley Water Limited Student’s Name Grade Course Tutor’s Name Date Organisational background Established in 1995, Yarra Valley Water (YVW) is a provider of retail water and sewerage services in Melbourne, Australia (Bloomberg, 2012). Its service provisions cover approximately 1.7 million people residing in the eastern and northern suburbs of Melbourne. With a distribution network of more than 16,000 kilometres of water and sewerage pipes, YVW’s main sustainability challenges include the maintenance of the aging infrastructure and developing new infrastructure in different parts of the covered area in Melbourne. This paper will focus on how YVW has established a culture of sustainability by developing its human resource capacity with special focus being paid to learning and development processes, which are specifically geared to contribute to the organisation’s sustainability. As Commonwealth of Australia (2010) notes, part of the reasons why YVW has initiated and sustained sustainable practices is because it has created a “learning culture” that enables people to share knowledge and apply it in different projects in the organisation (p. 6). Of notable importance however is the fact that YVW prepared itself for future needs of its customers; was able to use its culture to create “sustainability outcomes”; and “created a learning and development program for cultural change” (Commonwealth of Australia, 2010, p. 6). Through the aforementioned practices, YVW set itself up for sustainability practices which were attained not through a one-off activity, but through a series of activities which include: visioning, systemic thinking, critical thinking and reflection, partnerships, participation, and capacity building. According to Crittenden, Benn and Dunphy (2010), YVW has demonstrated its capacity and dedication to delivering sustainability outcomes as depicted at a practical level through the execution of innovative projects (p. 4). YVW’s efforts have not gone unnoticed; the company has for example been the recipient of sustainability awards at international, national and state levels. Some of the projects that stand out because of their sustainable nature include: I) the Aurora residential development, which is rated as being among the largest recycled water systems in the entire country; II) the pressure sewer system in Gembrook; and III) the storm water filtering and water reuse project at Kalkallo. The recycled water system in Aurora residential development qualifies as being sustainable because the recycled water is used for purposes such as public open space irrigation, car washing, garden watering and toilet flushing hence reducing the demand pressure that would have otherwise been placed on fresh water sources. YVW uses dual reticulation – a third pipe that takes the recycled water to user-areas, and by so doing, it is estimated that the Melbourne catchment areas experience a 45% water demand requirement (Centre for Design at RMIPT & Global Footprint Network, 2006). Additionally, the water recycling process uses sustainable stages, which include “inlet screens, biological treatments utilising the Intermittently Decanted Extend Aeration (IDEA) activated sludge process, tertiary filtration and ultraviolent disinfection” (Yarra Valley Water, 2012a, n.pag.). According to Crittenden et al. (2010, p.4), YVW is consistent in its delivery of innovative projects, which demonstrate its focus on sustainability, because it has made organisational learning and change its main focus for more than one decade now. It is through such usage of the below discussed aspects that YVW is evidently engaged in critical thinking systems. 1. YVW’s organisational culture In 2001, YVW conceptualised and implemented a management initiative that was intended to create a flexible and collaborative working environment (Crittenden et al., 2010; Yarra Valley Water, 2012b). Through the years, the management initiative has embraced a culture that fosters creativity and innovation. Notably, most of the sustainable practices in the company are a result of the innovation and creative space given to employees as indicated by YVW (2012a). Additionally, the flexible and collaborative work environment has enabled teams to work together in a manner that utilises the group dynamics to come up with lasting and sustainable solutions. 2. Identification of environment as an essential strategic issue In 2003, key decision makers at YVW identified environmental issues as one of the four main components of the company’s strategic intent (Crittenden et al., 2010). Based on the aforementioned, the decision-makers agreed to “spearhead the integration of environmental considerations into core business decisions” (Crittenden et al., 2010, p. 4). The decision is evidence of the critical thinking that is used by the management specifically for purposes of making the organisation and its practices sustainable. 3. The use of sustainability tools and strategies In 2003, YVW was intent on developing sustainable tools and strategies, which it sought to use in all its decision-making levels (Crittenden et al., 2010). Such tools and strategies include stakeholder consultation, life cycle analysis, and natural step among others. Although different in focus, Crittenden et al. (2010) observe that the three aspects as indicated above are used together for purposes of mutually reinforcing continuous and effective learning in the company as illustrated in figure 1 below. As a result, YVW has registered impressive sustainability and business outcomes. Figure 1: Organisational change for sustainability aspects at Yarra Valley Water Source: Crittenden et al. (2010, p. 5). Evidence of critical thinking at YVW Although the term ‘critical thinking’ does not have a universally agreed upon definition, Facione (2010) developed a working consensus definition for the term stating that it is the “purposeful, reflective judgement which manifests itself in reasoned consideration of evidence, context, methods, standards, and conceptualisations in deciding what to believe or what to do” (p. 22). In other words, an organisation (or individual) who thinks critically would solve practical problems; make thoughtful decisions; clarify confusing ideas; assess the quality in arguments; and scrutinize claims and/or reasons brought their way. In YVW’s case, it is evident that the organisation chose to adopt sustainable practices based on a series of critical thinking phases, initiated at the management level, and supported by the entire workforce. As a water and sewerage company, YVW probably considered the increasing demand of water from clients, and the decreasing capacity of water catchment areas. As such, it had to solve the practical problem by considering other sources of water as a possible solution to the water problem. Considering that recycling sewage water has been a long-debated subject in Australia, it is also probable that the organisation had to sift through ideas, analyse different claims and arguments, and evaluate the value of each of those arguments before deciding to adopt the different strategies that it has undertaken over the years. Put together, all the analysis, evaluations, clarifications, and thoughts that the organisation had to handle is evidence that it used critical thinking in its processes. Not one to offend public sensibilities, YVW’s use of a third pipe to provide recycled water is well informed by the debate surrounding its appropriateness or lack thereof for drinking. Newton (2008) for example observes that while some people agree that recycled water is of equal quality and risk to human health, others argue that it will cause damage to health. Considering the sensitive nature of the debate, YVW seemingly made the right decision by using the second pipe to channel recycled water hence giving consumers a choice on how to use the same water. The use of sewage water and storm water also appears to have been informed by critical thinking (or more appropriately systems thinking), where an organisation considers “the relationship between water abstraction, treatment and use of energy consumption”. The prevalence of storms in Melbourne area, and the fact that sewage water is a reality that cities around the world have to live with, may have inspired YVW to consider the two sources as viable water sources against say, underground water sources. Leadership style at YVW According to Human Synergistics International (HSI) (2005), YVW is among the successful organisations that have demonstrated that “change starts at the top” (p.1). As far back as 2001, the leadership (i.e. the executive and the board) at YVW have adopted an active role in leadership and change management programmes. Additionally, HSI (2005) notes that the leadership engaged staff members at all levels through workshops or information sessions. YVW’s leadership seems to have understood that leaders in an organisation should engage staff (and themselves) towards attaining strategic goals. As indicated by Scott and Kypriotis (2005), “leaders are enablers who help shape the culture in particular directions consistent with their own values and the vision and strategic directions of the organisation” (p. 3). Figure 2: The strategic intent at YVW Source: HSI (2005) The illustration in figure 2 above is cited by HSI (2005) as being among the main elements that the leadership at YVW helps staff members understand the direction and objectives of the company. The managing director of YVW, Tony Kelly was cited stating that the company’s strategy had four elements namely, “continuous improvement in customer service, building a high performing business culture, improvement in efficacy, and reducing our (sic) impact on the environment” (HSI, 2005, p. 2). Of relevance to this paper is that the leadership realised the need for reducing the company’s impact on the environment, something that is seen to have led the company to develop more sustainable projects in the years that followed. By 2010 for example, the leadership and the staff had agreed to make specific objectives work for the sewerage system. Such included increasing reliability in water supply by more than 90%, reducing greenhouse gas emissions by more than 30%, reducing nutrient discharges by 80 %, reducing wastewater discharges by 50%, and increasing the economic savings associated with the sewerage system by 20% (McCafferty, 2010). In addition to the collective identification of objectives by the leadership and the staff members, the management goes a step further and ensures that the employees are equipped with the skills and knowledge needed to make the attainment of the objectives a reality. In March 2011 for example, the leadership at YVW organised a Green Day for all staff members, where they insisted on the need for employees to embrace sustainable practices that would have lasting positive effects on the environment (McCafferty, 2010). To ensure that the workforce is motivated, and hence desires to work for the organisation, one of the approaches that the leadership has adopted is promoting leaders from within the internal workforce. In the 2010/2011 sustainability report for example, YVW reported that it had filled 55% of available job vacancies with internal candidates (YVW, 2011). During the same time, the company initiated 258 formal training courses, and what it calls, “Countless hours of on-the-job training and coaching” (YVW, 2011, p. 2). But how is training related with sustainable practices? One may ask. Well, staff members are responsible for pushing forward the sustainability agenda. For them to do so successfully, they need to possess the skills and knowledge needed for the same. It thus becomes the company’s prerogative to ensure that any gaps in knowledge and/or skills are adequately filled by either hiring people with the needed competencies or training and coaching the existing employees. Such decisions are made at the leadership and management levels, all the more reason why it can be said that the leadership style has helped YVW to adopt, implement and sustain sustainable practices. Sitting at the helm, YVW MD Tony Kelly has adopted a participative leadership that has earned him a place as part of the larger team; as a coach; and as one to be held accountable (Gibbs, 2012). During a personal interview with Gibbs (2012), Kelly reiterated that in addition to understanding the industry, he has realised the need to be confident about the abilities of one’s workforce. Additionally, he stated that he realised the need to be self-aware and cognisant of other people’s strengths and weaknesses as part of developing a formidable team. In matters environment, Kelly reiterated the need for organisations to make deliberate corporate decisions regarding the same, arguing that employees cannot adopt sustainable practices if the organisation has not provided the infrastructures and incentives to make such practices a reality. Overall, Kelly observed that the kind of leadership that prevails in a company determines the organisational culture therein and can therefore lead to success or failure. Owing to the evident success in YVW, it is thus arguable that the leadership style has been good and as such, has affected the organisational culture positively, thus leading to the positive outcomes. Organisational values The values of YVW are deeply embedded in its organisational culture, which is defined as the “building blocks to allow us deliver the future” (YVW, 2012a, n.pag). One of the outstanding values in YVW’s culture is the sustainability-readiness reflected in the workforce. Specifically, the sustainability-readiness is reflected in such things as strong values around innovation and improvement; open, supportive and collaborative leaders; systemic thinking that embraces complexity; diversity in how people think and do things; the participation of all willing employees in decision-making; the empowerment of staff, and their willingness to think, act and take responsibility; and the emphasis that the company places on scenario planning (Commonwealth of Australia, 2010). According to the Commonwealth of Australia (2010), YVW has over the years emphasised the importance of employees to have “an emotional attachment to the sustainability strategy, and a personal commitment to deliver on the vision” (p. 13). The reason for such emphasis is contained in the need for the company to make their future objectives a reality. Openness, honesty and the willingness to share information are also values that are upheld in YVW (Commonwealth of Australia, 2010). Such values enhance input from different people regarding the project or processes, and the open culture creates room for innovation and creativity. Employees are also encouraged to try different approaches of doing things, and though some of the approaches may not work, the MD argues that resisting them may cause the organisation to lose out some of the vital learning opportunities that come with embracing the different approaches. To employees, one of the vital organisational values at YVW is stability in its human resource. While the organisation is not closed to new recruitments, the human resource department is keen on ensuring that it recruits, employs, develops and retains the right people (Commonwealth of Australia, 2010). Over the last 10 years for example, staff turnover in the company has declined from 26% to 9%, while all the 36 staff currently holding senior management levels have been with the company for at least five years. Such stability in its human resource has lasting implications for the company since it means that the organisation is able to retain talent, does not spend needless resources on training and recruitment, and is able to encourage staff members to carry on with the objectives of its different initiatives. Closely tied to the stability of the human resource is the understanding that employees have towards the “where, how and why they fit in the company” (Commonwealth of Australia, 2010, p. 12). Such understanding enhances efficiency of the workforce and reduces dissatisfaction levels, especially since structures such as job design, remuneration, evaluating, recruitment, talent management, performance management and succession planning are all defined and understood by the workforce. Lessons that one could learn from YVW One of the outstanding lessons that one can learn from the YVW case is that sustainability processes do not just happen; rather, they take careful reflection, critical thinking, planning and action for them to be realised. In particular, it is appears that sustainability processes need an organisation (or an individual) to possess some kind of wisdom that enables them to understand what needs to be done, at what time, for what purposes, and the consequences of the same. As illustrated by YVW in its own write-up, there was a time when the company had a mismatch in the real organisational culture, and the desired (suitable) organisational culture. The process of attaining the desired sustainability processes (as embedded in the organisation) therefore started with self-reflection. After identifying its current and desired states, the organisation then had to devise a strategy for attaining the desired outcomes. The strategy contained steps, processes and evaluations that over the years have led the organisation to what it is today. The second lesson from the YVW case is the importance of the human resource department and its significance towards attaining the vision of a company. As is commonly said, an organisation is only as good as the people working in it. The emphasis that YVW places on recruiting the right people, training them and retaining them is evidence that the company realises that its employees are the greatest asset, without which it would be unable to attain its sustainability (or any other) objectives. The third lesson from the YVW scenario is the strategic and pivotal role that leadership plays in organisational success. As indicated elsewhere in this paper, leaders in YVW have not only acted as coaches, but also as facilitators of the success demonstrated in the company’s sustainable practices. Like a Kenyan proverb aptly states, if a leader limps, all the others (his followers) start limping too. Likewise, if the leader is visionary, his followers will buy into his vision, and together, they can work towards making the vision a reality. Conclusion Yarra Valley Water has developed and sustained a culture of sustainability by developing its human resource capacity with special focus being paid to learning and development processes. By focusing on the future needs of its customers, and gauging its internal capabilities and weakness, the organisation was able to make a strategy as far back as 2001, which has over the years enabled it to progress towards its vision. Some of the major factors that are seen to have contributed towards its successes include strategic thinking and the vital role that the leadership played and continues to play. Additionally, the human resource function in the company has played an integral role in helping the organisation identify, implement and sustain its sustainable practices. The critical activities that played a strategic role towards sustainable practices in the company include: visioning, systemic thinking, critical thinking and reflection, partnerships, participation, and capacity building. Combined, these practices can be said to be part of the process that enabled YVW to become the success that it is today. References Bloomberg. (2012). Company overview of Yarra Valley Water Limited. Bloomberg Business Week, retrieved December 01, 2012, from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22676733 Centre for Design at RMIT & Global Footprint Network. (2006). Ecological footprint analysis of Aurora residential development. 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Retrieved December 01, 2012, from http://www.yvw.com.au/yvw/groups/public/documents/document/yvw1002057.pdf Yarra Valley Water. (2012b). Creating a city of the future- how a water utility can contribute. Retrieved December 04, 2012, from http://www.yvw.com.au/yvw/groups/public/documents/document/yvw1003224.pdf Read More