Leadership

Subterms

    More stories

    • 75 Shares119 Views

      in Environment

      Engaging enterprises with the climate crisis

      by

      Almost every large corporation is committed to achieving net zero carbon emissions by 2050 but lacks a roadmap to get there, says John Sterman, professor of management at MIT’s Sloan School of Management, co-director of the MIT Sloan Sustainability Initiative, and leader of its Climate Pathways Project. Sterman and colleagues offer a suite of well-honed strategies to smooth this journey, including a free global climate policy simulator called En-ROADS deployed in workshops that have educated more than 230,000 people, including thousands of senior elected officials and leaders in business and civil society around the world. 

      Running on ordinary laptops, En-ROADS examines how we can reduce carbon emissions to keep global warming under 2 degrees Celsius, Sterman says. Users, expert or not, can easily explore how dozens of policies, such as pricing carbon and electrifying vehicles, can affect hundreds of factors such as temperature, energy prices, and sea level rise. 

      En-ROADs and related work on climate change are just one thread in Sterman’s decades of research to integrate environmental sustainability with business decisions. 

      “There’s a fundamental alignment between a healthy environment, a healthy society, and a healthy economy,” he says. “Destroy the environment and you destroy the economy and society. Likewise, hungry, ill-housed, insecure people, lacking decent jobs and equity in opportunity, will catch the last fish and cut the last tree, destroying the environment and society. Unfortunately, a lot of businesses still see the issue as a trade-off — if we focus on the environment, it will hurt our bottom line; if we improve working conditions, it will raise our labor costs. That turns out not to be true in many, many cases. But how can we help people understand that fundamental alignment? That’s where simulation models can play a big role.”

      Play video

      Learning with management flight simulators 

      “My original field is system dynamics, a method for understanding the complex systems in which we’re embedded—whether those are organizations, companies, markets, society as a whole, or the climate system” Sterman says. “You can build these wonderful, complex simulation models that offer important insights and insight into high-leverage policies so that organizations can make significant improvements.” 

      “But those models don’t do any good at all unless the folks in those organizations can learn for themselves about what those high-leverage opportunities are,” he emphasizes. “You can show people the best scientific evidence, the best data, and it’s not necessarily going to change their minds about what they ought to be doing. You’ve got to create a process that helps smart but busy people learn how they can improve their organizations.” 

      Sterman and his colleagues pioneered management flight simulators — which, like aircraft flight simulators, offer an environment in which you can make decisions, seeing what works and what doesn’t, at low cost with no risk. 

      “People learn best from experience and experiment,” he points out. “But in many of the most important settings that we face today, experience comes too late to be useful, and experiments are impossible. In such settings, simulation becomes the only way people can learn for themselves and gain the confidence to change their behavior in the real world.” 

      “You can’t learn to fly a new jetliner by watching someone else; to learn, one must be at the controls,” Sterman emphasizes. “People don’t change deeply embedded beliefs and behaviors just because somebody tells them that what they’re doing is harmful and there are better options. People have to learn for themselves.”

      Play video

      Learning the business of sustainability 

      His longstanding “laboratory for sustainable business” course lets MIT Sloan School students learn the state of the art in sustainability challenges — not just climate change but microplastics, water shortages, toxins in our food and air, and other crises. As part of the course, students work in teams with organizations on real sustainability challenges. “We’ve had a very wide range of companies and other organizations participate, and many of them come back year after year,” Sterman says. 

      MIT Sloan also offers executive education in sustainability, in both open enrollment and customized programs. “We’ve had all kinds of folks, from all over the world and every industry” he says. 

      In his opening class for executive MBAs, he polls attendees to ask if sustainability is a material issue for their companies, and how actively those companies are addressing that issue. Almost all of the attendees agree that sustainability is a key issue, but nearly all say their companies are not doing enough, with many saying they “comply with all applicable laws and regulations.” 

      “So there’s a huge disconnect,” Sterman points out. “How do you close that gap? How do you take action? How do you break the idea that if you take action to be more sustainable it will hurt your business, when in fact it’s almost always the other way around? And then how can you make the change happen, so that what you’re doing will get implemented and stick?” 

      Simulating policies for sustainability 

      Management flight simulators that offer active learning can provide crucial guidance. In the case of climate change, En-ROADs presents a straightforward interface that lets users adjust sliders to experiment with actions to try to bring down carbon emissions. “Should we have a price on carbon?” Sterman asks. “Should we promote renewables? Should we work on methane? Stop deforestation? You can try anything you want. You get immediate feedback on the likely consequences of your decisions. Often people are surprised as favorite policies — say, planting trees — have only minor impact on global warming. (In the case of trees, because it takes so long for the trees to grow).”

      One En-ROADS alumnus works for a pharmaceutical company that set a target of zero net emissions by mid-century. But, as often observed, measures proposed at the senior corporate level were often resisted by the operating units. The alumnus attacked the problem by bringing workshops with simulations and other sustainability tools to front-line employees in a manufacturing plant he knew well. He asked these employees how they thought they could reduce carbon emissions and what they needed to do so. 

      “It turns out that they had a long list of opportunities to reduce the emissions from this plant,” Sterman says. “But they didn’t have any support to get it done. He helped their ideas get that support, get the resources, come up with ways to monitor their progress, and ways to look for quick wins. It’s been highly successful.” 

      En-ROADS helps people understand that process improvement activity takes resources; you might need to take some equipment offline temporarily, for example, to upgrade or improve it. “There’s a little bit of a worse-before-better trade-off,” he says. “You need to be prepared. The active learning, the use of the simulators, helps people prepare for that journey and overcome the barriers that they will face.” 

      Interactive workshops with En-ROADS and other sustainability tools also brought change to another large corporation, HSBC Bank U.S.A. Like many other financial institutions, HSBC has committed to significantly cut its emissions, but many employees and executives didn’t understand why or what that would entail. For instance, would the bank give up potential business in carbon-intensive industries? 

      Brought to more than 1,000 employees, the En-ROADS workshops let employees surface concerns they might have about continuing to be successful while addressing climate concerns. “It turns out in many cases, there isn’t that much of a trade-off,” Sterman remarks. “Fossil energy projects, for example, are extremely risky. And there are opportunities to improve margins in other businesses where you can help cut their carbon footprint.” 

      The free version of En-ROADS generally satisfies the needs of most organizations, but Sterman and his partners also can augment the model or develop customized workshops to address specific concerns. 

      People who take the workshops emerge with a greater understanding of climate change and its effects, and a deeper knowledge of the high-leverage opportunities to cut emissions. “Even more importantly, they come out with a greater sense of urgency,” he says. “But they also come out with an understanding that it’s not too late. Time is short, but what we do can still make a difference.”  More

    • 100 Shares99 Views

      in Environment

      Creating the steps to make organizational sustainability work

      by

      Sustainability is a hot topic. Companies throw around their carbon or recycling initiatives, and competing executives feel the need to follow suit. But aside from the external pressure, there are also bottom-line benefits. Becoming more efficient can save money. Creating a new product might make money; customers care about a company’s practices and will spend their money based on that.

      The work is in getting there, because becoming sustainable can seem simple: Establish a goal for five years down the road, and everything will fall into place — but it’s easy for things to get upended. “There is so much confusion and noise in this space,” says Jason Jay, senior lecturer and director of the Sustainability Initiative at MIT’s Sloan School of Management.

      His work is to help companies break through the confusion and figure out what they want to actually do, not merely what sounds good. It means doing research and listening to science. Mostly, it requires discipline, and because something new — be it a product, process or technology — is being asked for, it also takes ambition. “It’s a tricky dance,” he says, but one that can result in “doing well and doing good at the same time.”

      Play video

      It’s about taking steps

      Three steps, to be exact. The first, which is the crux, Jay says, is for a company to focus on a small set of issues that it can take the lead on. It sounds obvious, but it’s often missed. The problem is that companies will do either one of two things. They’ll take an outside-in approach in which they end up listening to too many stakeholders, “get pulled in a million different directions,” and try to solve all of society’s problems, which means solving none of them, he says.

      Or they’ll go inside-out and have one executive in charge of sustainability who will do some internal research and come up with an initiative. It might be a good idea, but it doesn’t take into account how it will affect the facilities, supply chains, and the people who work with them. And without that consideration, “It’s going to be very difficult to get the necessary traction inside the company,” Jay says.

      What’s needed is a combination of the two — outside perspectives coupled with insider knowledge — in order to find an initiative that resonates for that company. It starts with looking at what the company already does. That might show where it’s making a negative impact and, in turn, where it could make a positive one. It also involves the C-suite executives asking themselves, “What do we want this company to stand for?” and then, “What do I want my legacy to be?”

      Still, it can be hard to envision what change can look like or what actions might have an impact. Jay says this is where a simulation tool like En-ROADS, developed by MIT Sloan and Climate Interactive, can help explore scenarios.

      But it’s ultimately about making a commitment and allowing an iterative process to play out. A company then discovers its true focus might be something less flashy. Nike early on, for example, found that a huge source of greenhouse gas emissions was sulfur hexafluoride gas in the Nike Air bladder. When they re-engineered it, they ended up with inert nitrogen and a stronger material that was aesthetically cool and lightweight for the athlete. That didn’t come in one brainstorming meeting. It meant doing research and looking at what the science says is possible. It’s not quick, but it also shouldn’t be, if the goal is to take real, measurable action.

      “Cheap talk leads to cheap things,” Jay says. 

      Play video

      The next two

      Deciding what matters is key, but nothing materializes without establishing concrete goals. This is where a company “shows the world you’re serious.” But it’s a place where companies slip up. They either set weak goals, ones they know they can easily reach, so there’s no challenge, no accomplishment, “no stretch,” Jay says. Or they set goals that are too ambitious and/or aren’t backed by science. It could be, “We’re going to be net zero by 2050,” but how exactly is never answered.

      Jay says it’s about finding the sweet spot of having a reasonable amount of goals — like two to four — and then have those goals feel like a reach, yet possible. When that balance is right, it becomes a self-fulfilling prophecy. People stay motivated because they experience progress. But if it’s off, it won’t happen.

      “You need that optimal creative tension,” he says.

      And then there’s the third step. Companies need to find partners to make their sustainability programs succeed. It’s the one part that’s most overlooked because executives continually believe that they can do it alone. But they can’t, because big initiatives require help and expertise outside of a company’s realm.

      Maersk, the global shipping company, has a goal of replacing fossil fuel with green fuels for ocean freight, Jay says. It discovered that green ammonia could make that happen, and it was Yara, a fertilizer company, which best understood ammonia production. But it could also be a startup that’s working on a promising technology. Sometimes, as with moving to electric cars, what’s needed are political partners to enact policy and offer tax breaks and incentives. And it might be that the answer is collaborating with activists who have been pushing a company to change its ways.

      “There are strange bedfellows all around,” Jay says.

      Know how to tap the brake

      All the steps circle back to the essential point that becoming sustainable takes a committed investment of time, money, and patience. Starting small helps, especially in a corporate culture that tends to move slowly. Jay says there’s nothing wrong with going from zero projects to one, even if it’s a small one in a specific department. It allows people to become accustomed to the idea of change. It also lets the company establish a framework, analyze results, and build momentum, making it easier to ramp up.

      The patience part can be hard since there’s a rightful sense of urgency involved. Companies want to show that they’re doing something, and want to affect climate change sooner rather than later. But Jay likens it to building a skyscraper. The desire is to get it up fast, but if the foundation is shaky, everything will crumble.

      “What we’re trying to do is strengthen that foundation so it can reach the height we need,” he says. More

    • 75 Shares99 Views

      in Energy

      Preparing students for the new nuclear

      by

      As nuclear power has gained greater recognition as a zero-emission energy source, the MIT Leaders for Global Operations (LGO) program has taken notice.

      Two years ago, LGO began a collaboration with MIT’s Department of Nuclear Science and Engineering (NSE) as a way to showcase the vital contribution of both business savvy and scientific rigor that LGO’s dual-degree graduates can offer this growing field.

      “We saw that the future of fission and fusion required business acumen and management acumen,” says Professor Anne White, NSE department head. “People who are going to be leaders in our discipline, and leaders in the nuclear enterprise, are going to need all of the technical pieces of the puzzle that our engineering department can provide in terms of education and training. But they’re also going to need a much broader perspective on how the technology connects with society through the lens of business.”

      The resulting response has been positive: “Companies are seeing the value of nuclear technology for their operations,” White says, and this often happens in unexpected ways.

      For example, graduate student Santiago Andrade recently completed a research project at Caterpillar Inc., a preeminent manufacturer of mining and construction equipment. Caterpillar is one of more than 20 major companies that partner with the LGO program, offering six-month internships to each student. On the surface, it seemed like an improbable pairing; what could Andrade, who was pursuing his master’s in nuclear science and engineering, do for a manufacturing company? However, Caterpillar wanted to understand the technical and commercial feasibility of using nuclear energy to power mining sites and data centers when wind and solar weren’t viable.

      “They are leaving no stone unturned in the search of financially smart solutions that can support the transition to a clean energy dependency,” Andrade says. “My project, along with many others’, is part of this effort.”

      “The research done through the LGO program with Santiago is enabling Caterpillar to understand how alternative technologies, like the nuclear microreactor, could participate in these markets in the future,” says Brian George, product manager for large electric power solutions at Caterpillar. “Our ability to connect our customers with the research will provide for a more accurate understanding of the potential opportunity, and helps provide exposure for our customers to emerging technologies.”

      With looming threats of climate change, White says, “We’re going to require more opportunities for nuclear technologies to step in and be part of those solutions. A cohort of LGO graduates will come through this program with technical expertise — a master’s degree in nuclear engineering — and an MBA. There’s going to be a tremendous talent pool out there to help companies and governments.”

      Andrade, who completed an undergraduate degree in chemical engineering and had a strong background in thermodynamics, applied to LGO unsure of which track to choose, but he knew he wanted to confront the world’s energy challenge. When MIT Admissions suggested that he join LGO’s new nuclear track, he was intrigued by how it could further his career.

      “Since the NSE department offers opportunities ranging from energy to health care and from quantum engineering to regulatory policy, the possibilities of career tracks after graduation are countless,” he says.

      He was also inspired by the fact that, as he says, “Nuclear is one of the less-popular solutions in terms of our energy transition journey. One of the things that attracted me is that it’s not one of the most popular, but it’s one of the most useful.”

      In addition to his work at Caterpillar, Andrade connected deeply with professors. He worked closely with professors Jacopo Buongiorno and John Parsons as a research assistant, helping them develop a business model to successfully support the deployment of nuclear microreactors. After graduation, he plans to work in the clean energy sector with an eye to innovations in the nuclear energy technology space.

      His LGO classmate, Lindsey Kennington, a control systems engineer, echoes his sentiments: This is a revolutionary time for nuclear technology.

      “Before MIT, I worked on a lot of nuclear waste or nuclear weapons-related projects. All of them were fission-related. I got disillusioned because of all the bureaucracy and the regulation,” Kennington says. “However, now there are a lot of new nuclear technologies coming straight out of MIT. Commonwealth Fusion Systems, a fusion startup, represents a prime example of MIT’s close relationship to new nuclear tech. Small modular reactors are another emerging technology being developed by MIT. Exposure to these cutting-edge technologies was the main sell factor for me.”

      Kennington conducted an internship with National Grid, where she used her expertise to evaluate how existing nuclear power plants could generate hydrogen. At MIT, she studied nuclear and energy policy, which offered her additional perspective that traditional engineering classes might not have provided. Because nuclear power has long been a hot-button issue, Kennington was able to gain nuanced insight about the pathways and roadblocks to its implementation.

      “I don’t think that other engineering departments emphasize that focus on policy quite as much. [Those classes] have been one of the most enriching parts of being in the nuclear department,” she says.

      Most of all, she says, it’s a pivotal time to be part of a new, blossoming program at the forefront of clean energy, especially as fusion research grows more prevalent.

      “We’re at an inflection point,” she says. “Whether or not we figure out fusion in the next five, 10, or 20 years, people are going to be working on it — and it’s a really exciting time to not only work on the science but to actually help the funding and business side grow.”

      White puts it simply.

      “This is not your parents’ nuclear,” she says. “It’s something totally different. Our discipline is evolving so rapidly that people who have technical expertise in nuclear will have a huge advantage in this next generation.” More

    • 125 Shares199 Views

      in Security

      Promoting systemic change in the Middle East, the “MIT way”

      by

      The Middle East is a region that is facing complicated challenges. MIT programs have been committed to building scalable methodologies through which students and the broader MIT community can learn and make an impact. These processes ensure programs work alongside others across cultures to support change aligned with their needs. Through MIT International Science and Technology Initiatives (MISTI), faculty and staff at the Institute continue to build opportunities to connect with and support the region.

      In this spirit, MISTI launched the Leaders Journey Workshop in 2021. This program partnered MIT students with Palestinian and Israeli alumni from three associate organizations: Middle East Entrepreneurs for Tomorrow (MEET), Our Generation Speaks (OGS), and Tech2Peace. Teams met monthly to engage with speakers and work with one another to explore the best ways to leverage science, technology, and entrepreneurship across borders.

      Building on the success of this workshop, the program piloted a for-credit course: SP.258 (MISTI: Middle East Cross-Border Development and Leadership) in fall 2021. The course involved engaging with subject matter experts through five mini-consulting projects in collaboration with regional stakeholders. Topics included climate, health care, and economic development. The course was co-instructed by associate director of the MIT Regional Entrepreneurship Acceleration Program (REAP) Sinan AbuShanab, managing director of MISTI programs in the Middle East David Dolev, and Kathleen Schwind ’19, with MIT CIS/ MISTI Research Affiliate Steven Koltai as lead mentor. The course also drew support from alumni mentors and regional industry partners.

      The course was developed during the height of the pandemic and thus successfully leveraged the intense culture of online engagement prevalent at the time by layering in-person coursework with strategic digital group engagement. Pedagogically, the structure was inspired by multiple MIT methodologies: MISTI preparation and training courses, Sloan Action Learning, REAP/REAL multi-party stakeholder model, the Media Lab Learning Initiative, and the multicultural framework of associate organizations.

      “We worked to develop a series of aims and a methodology that would enrich MIT students and their peers in the region and support the important efforts of Israelis and Palestinians to make systemic change,” said Dolev.

      During the on-campus sessions, MIT students explored the region’s political and historical complexities and the meaning of being a global leader and entrepreneur. Guest presenters included: Boston College Associate Professor Peter Krause (MIT Security Studies Program alumnus), Gilad Rosenzweig (MITdesignX), Ari Jacobovits (MIT-Africa), and Mollie Laffin-Rose Agbiboa (MIT-REAP). Group projects focused on topics that fell under three key regional verticals: water, health care, and economic development. The teams were given a technical or business challenge they were tasked with solving. These challenges were sourced directly from for-profit and nonprofit organizations in the region.

      “This was a unique opportunity for me to learn so much about the area I live in, work on a project together with people from the ‘other side,’ MIT students, and incredible mentors,” shared a participant from the region. “Furthermore, getting a glimpse of the world of MIT was a great experience for me.”

      For their final presentations, teams pitched their solutions, including their methodology for researching/addressing the problem, a description of solutions to be applied, what is needed to execute the idea itself, and potential challenges encountered. Teams received feedback and continued to deepen their experience in cross-cultural teamwork.

      “As an education manager, I needed guidance with these digital tools and how to approach them,” says an EcoPeace representative. “The MIT program provided me with clear deliverables I can now implement in my team’s work.”

      “This course has broadened my knowledge of conflicts, relationships, and how geography plays an important role in the region,” says an MIT student participant. “Moving forward, I feel more confident working with business and organizations to develop solutions for problems in real time, using the skills I have to supplement the project work.”

      Layers of engagement with mentors, facilitators, and whole-team leadership ensured that participants gained project management experience, learning objectives were met, and professional development opportunities were available. Each team was assigned an MIT-MEET alumni mentor with whom they met throughout the course. Mentors coached the teams on methods for managing a client project and how to collaborate for successful completion. Joint sessions with MIT guest speakers deepened participants’ regional understanding of water, health care, economic development, and their importance in the region. Speakers included: Mohamed Aburawi, Phil Budden (MIT-REAP) Steven Koltai, Shari Loessberg, Dina Sherif (MIT Legatum Center, Greg Sixt (J-WAFS), and Shriya Srinivasan.

      “The program is unlike any other I’ve come across,” says one of the alumni mentors. “The chance for MIT students to work directly with peers from the region, to propose and create technical solutions to real problems on the ground, and partner with local organizations is an incredibly meaningful opportunity. I wish I had been able to participate in something like this when I was at MIT.”

      Each team also assigned a fellow group member as a facilitator, who served as the main point of contact for the team and oversaw project management: organizing workstreams, ensuring deadlines were met, and mediating any group disagreements. This model led to successful project outcomes and innovative suggestions.

      “The superb work of the MISTI group gave us a critical eye and made significant headway on a product that can hopefully be a game changer to over 150 Israeli and Palestinian organizations,” says a representative from Alliance for Middle East Peace (ALLMEP).

      Leadership team meetings included MIT staff and Israeli and Palestinian leadership of the partner organizations for discussing process, content, recent geopolitical developments, and how to adapt the class to the ongoing changing situation.

      “The topic of Palestine/Israel is contentious: globally, in the region, and also, at times, on the MIT campus,” says Dolev. “I myself have questioned how we can make a systemic impact with our partners from the region. How can we be side-by-side on that journey for the betterment of all? I have now seen first-hand how this multilayered model can work.”

      MIT International Science and Technology Initiatives (MISTI) is MIT’s hub for global experiences. MISTI’s unparalleled internship, research, teaching, and study abroad programs offer students unique experiences that bring MIT’s one-of-a-kind education model to life in countries around the world. MISTI programs are carefully designed to complement on-campus course work and research, and rigorous, country-specific preparation enables students to forge cultural connections and play a role in addressing important global challenges while abroad. Students come away from their experiences with invaluable perspectives that inform their education, career, and worldview. MISTI embodies MIT’s commitment to global engagement and prepares students to thrive in an increasingly interconnected world. More