Green isn’t always good!

It often seems that there is an automatic acceptance that ‘green is good’ and therefore I was initially a little shocked to be sent a piece from my colleague Stephen Timbers entitled ‘Green isn’t always good’. But suspend any reactions until you read this post because it is a factual approach to finding the right balance, and as an engineer I thoroughly applaud his approach and argument. See what you make of his views!


As each week passes there are more and more things that highlight the need to be green. We are encouraged to recycle, drive less, preserve heat, buy locally, and switch things off when we aren’t using them – all perfectly reasonable! But there are organisations that extend the green message just a little too far…
Scorecard management
Imagine running a large business and using scorecards to show all the things that are measured. In this context as well – green is good! Put simply, a good scorecard is coloured green to show progress on key deliverables or a positive status quo, and a bad scorecard is red to show a lack of movement. But is green actually good?
When creating a scorecard there are numerous things that can be measured and for each of those there is a range of possibilities against which success can be defined. When managing sales for example, there are measures such as gross and net sales, with or without tax, with or without refunds, with or without loyalty costs, by area, by date, by department, and no doubt many more.
On top of that there are multiple targets, not least limiting reduction in a recession, maintaining the status quo, achieving reasonable growth, ambitious growth, challenging growth, etc. In combining these options and determining thresholds, managers make choices about how green the scorecard will look. When proposing measures they recognise that people like green scorecards.
Each year there is a ritual played out between managers and those that they manage:
How do we agree on a measure that will be stretching but also be seen to be achievable?
vs
How do we agree on a measure that is seen to be stretching yet is actually simple enough that we can be confident of hitting our targets?
The managers are in turn conscious of their own targets and will be looking to get the maximum amount of help from those they manage. If everything is working well then everyone is helping everyone else to succeed – and to succeed we must all have green scorecards.
Green is good
When you visit an organisation that makes extensive use of scorecards it is easy to accept that green is good but there is nothing about a green measure that proves success – they are, after all, much more complex than that. If the target is set low then getting green may not be much of an achievement. If it was red but is now green how much success does that show? Are all red-to-green conversions equal? Of course not, but that isn’t visible on a scorecard.
It is possible (and important!) to put some quite challenging questions to such organisations. For example, if all measures are green what do managers actually do!? Does this mean there are no issues anywhere? How long have these measures shown as green? Why do you only monitor things that are ok?
It seems reasonable that in a well-managed organisation there will be few things that need to be addressed. Of course some would argue that the words “well-managed” could just as easily have read “risk-averse” or “unambitious” since an absence of problems is often easiest to achieve when change is minimised. But it may also be the case that an organisation that has no challenges on its scorecards simply doesn’t acknowledge problems and avoids confronting them by acting as if they aren’t there.
Red is good
So, if green isn’t always good what should the alternative be? The proposition here is that progress relies on the solving of problems. In scorecard terms this requires both recognition of the problem (i.e. the creation of a measure that shows it as red) and the subsequent elimination of that problem (i.e. showing through measurement that the problem has ceased to be a problem and is now showing as green.
Crucially, once it has been shown to be green then it ceases to be a problem, perhaps after allowing a period of time to show it was not a one-off measurement. This suggests that the problem, once solved, should cease to be on the scorecard. In which case its obvious replacement would be another problem returning the scorecard to red again.
My point is this. In a progressive organisation managers should not be given the target of making their scorecard green. They should be given a target of identifying problems and resolving them in addition to creating measures that are red and controlling improvements in the business, its processes and its employees to make them go green.
In this environment red is good as it says: “We know what our problems are, we make them visible to our managers, and we monitor them until they cease to be problems”. In such an environment people solve problems rather than recycle statistics. Green should be part of the lifecycle, not an end in itself.

About the author

61.thumbnail Green isn’t always good! Capgemini Global Chief Technology Officer, Andy is a member of the Capgemini Group management board and advises on all aspects of technology-driven market changes, together with being a member of the Policy Board for the British Computer Society. Andy is the author of many white papers, and the co-author three books that have charted the current changes in technology and its use by business starting in 2006 with ‘Mashup Corporations’ detailing how enterprises could make use of Web 2.0 to develop new go to market propositions. This was followed in May 2008 by Mesh Collaboration focussing on the impact of Web 2.0 on the enterprise front office and its working techniques, then in 2010 “Enterprise Cloud Computing: A Strategy Guide for Business and Technology leaders” co-authored with well-known academic Peter Fingar and one of the leading authorities on business process, John Pyke. The book describes the wider business implications of Cloud Computing with the promise of on-demand business innovation. It looks at how businesses trade differently on the web using mash-ups but also the challenges in managing more frequent change through social tools, and what happens when cloud comes into play in fully fledged operations. Andy was voted one of the top 25 most influential CTOs in the world in 2009 by InfoWorld and is grateful to readers of Computing Weekly who voted the Capgemini CTOblog the best Blog for Business Managers and CIOs each year for the last three years.




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3 Responses to Green isn’t always good!

  • Jungle says:

    I totally agree…some companys were spending so much time and energy in this “green-thing” but at the end they do not focused the real problems in connection to the environment.

  • M. Verboeket says:

    Good article! But I wonder… would there be a difference in the performance measure if, in both cases (‘measuring performance of being green’ and ‘measuring performance of red to green transition’), the targets would be too easy or the tresholds would be too low? I agree, finding a balance in the measure is a good aim and it probably will balance itself; you cannot measure transition only because ‘green’ is the actual desired state when having the correct measures.

  • Andy Mulholland Andy Mulholland says:

    Mmm – yes the point that you get what you measure and this may distort the objective is very true in this case as we are still struggling to find the right balance to create a ‘balanced scorecard’ approach.

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