Justifying the cost of EMIS: Piloting lessons from Rhone-Poulenc

Two worlds are colliding as many companies are integrating environmental management with business management. Nowhere is this more evident than in the hundreds of companies that are now working to upgrade their environmental management information systems (EMIS), which are a critical component of business integration. Building a business case for EMIS requires crossing many disciplinary boundaries—knowing the language of information systems, accounting, business management, and environmental management. Hence, it is a very valuable skill for environmental managers to develop in order to build their function and their own careers. Some environmental and information systems professionals are attempting to develop a general set of guidelines for justifying the cost of EMIS—in particular, the useful emerging work of the Environmental Health and Safety Software Development Group. This article relates the experience of an EMIS development effort at Rhone-Poulenc, Inc.     

Questions and answers. TQEM performance indicators—how do you measure up?

I have seen a number of corporations accept the philosophy of TQEM and start the process of total quality environmental management with great enthusiasm. I believe that many organizations are attracted because TQM principles demand measurements of success and results that are definable for the environment. It reduces the emotionalism that frequently tends to surround environmental issues. Emotionalism has perhaps been the bane and boon of efforts by corporations and advocacy groups to incorporate environmental issues into the day-to-day functions of organizations. Abt Associates, a well-known research-based consulting firm, recently completed a study of U.S. Fortune 250 firms' environmental management programs. Abt found evidence that environmental performance is a competitive issue. Benchmarking is hotly pursued to develop firm-wide indices of performance. One third of the benchmarking is against competition, another third is against worldwide firms. There is a race to develop “Best in Class” standards now. E2M and Abt Associates have combined resources to study corporate Canada's environmental management programs and compare these with those of the United States. This research will help companies benchmark activities and will build a strong North American data base. Unfortunately it will not be ready in time to answer TQEM's question for this issue. (The study results will be released to participating companies in Fall 1992.)     

Demystifying the EMIS purchasing process and decisions: Look (and plan) before you leap

The proliferation of environmental, health, and safety regulations in recent years has increased the complexity and cost of regulatory compliance for companies. In response to the growing complexities of environmental management, many firms are turning to information systems for tracking, managing, and automating their environmental activities and information. An environmental management information system (EMIS), however, is not an end in itself. A successful EMIS supports and facilitates the integration of environmental management into business functions. Effective planning is essential for placing short-term information system development in the context of a long-range comprehensive environmental management strategy. This article presents specific pitfalls to avoid when purchasing environmental management software. Numerous companies have discovered that the true costs of EMIS implementation stem from the political and organizational costs of getting employees to use systems, particularly when they require alterations in existing work processes. The up-front purchase price often represents less than 50 percent of the total system implementation cost. Failure to adequately research and plan frequently results in costly training, high modification or user fees, incompatibilities with other applications, or vendor dependence. The article then discusses the range of options in the EMIS marketplace and offers many practical suggestions to approach and plan effective implementation of an EMIS.     

Selecting measures for corporate environmental quality: Examples from TQEM companies

Companies undertaking TQEM programs must decide how to measure continuous improvement in the environmental field at the outset of their implementation activities. In the past three years, the leading TQEM companies have made these tough choices and have begun to share their findings with the larger professional community. The author proposes a model for classifying environmental measurement data and presents examples of approaches adopted by TQEM companies.     

Systems vs. metasystems: EMIS at the crossroads

As environmental management responsibilities expand beyond regulations to address business issues such as design for the environment, total cost accounting, and strategic planning, it is tempting to plan for expanded information systems (EMIS) to handle new responsibilities. The author argues that we should pursue exactly the opposite course: shrink the EMIS to the minimum size possible. It would be impossible to feed the self-standing EMIS with all the data it needs—replicas of almost any data tracked by the organization. The EMS and EMIS should be “meta-systems” that store the organization's knowledge about how EH&S relates to various business processes, and what should be measured and reported to assure that EH&S objectives are met. The author provides examples of how companies are creating these EMS “metasystems” by leveraging enterprise systems implemented for accounting, business planning, groupware, maintenance, and process control.     

Eleven major companies take quality environmental management initiatives within president's commission

The President'S Commission on Environmental Quality (PCEQ) is translating TQEM theory into action at industrial facilities around the United States. Eleven major corporations are undertaking voluntary demonstration projects at twelve facilities throughout the country to actively test TQEM. Corporate participants will share their conclusions about incentives, barriers, management processes, and metrics to produce a “blueprint” for successful TQEM programs elsewhere.     

How to integrate information strategy planning with environmental management information systems—part I

Rational, cost-effective provision of mission-critical environmental management information remains elusive for almost all large enterprises. Even among the best performing companies—best performing from the perspectives of profitability, quality and/or environmental stewardship—environmental management information systems (EMIS) are usually comprised of dozens to hundreds of individual, isolated applications that require costly data capture, training, and maintenance. This article, the first of two, will discuss ways to coordinate information infrastructures with strategic goals and business processes.     

Implementing design for environment at AT&T

The quality revolution is sweeping its way through most companies globally. It has focused on improving the quality of products and services delivered to the customers and on companies' internal processes. The success of these programs has led to the realization that the same principles need to be applied to the area of environmental management. AT&T has fully embraced TQM as witnessed by the many products and services that have received the International Organization for Standardization (ISO) 9000 certification and awards such as the Malcolm Baldrige Award and the Deming Prize for Quality. We have been utilizing the TQM methodologies for the past few years to turn our environmental focus from end-of-pipe waste management to proactive and preventive TQEM and have made significant progress in reducing our wastes, emissions, and impact on the environment. This article shows how TQEM is now driving Design For Environment (DFE) programs and procedures, recognizing that addressing environmental issues in the initial design process is the most cost-effective means for minimizing environmental impact.     

Monitoring and measurement systems for implementing ISO 14001

There is a lot of work involved in establishing an effective and useful monitoring and measurement system, but it can be a critical tool for business success. With reliable data based on important performance metrics, you can quantify environmental and business improvement; communicate success; provide valuable input to environmental objectives, targets, and programs; and make sound business decisions based on facts. This article details how companies can set up procedures, processes, and schedules using ISO 14001 to monitor regulatory compliance and help establish an integrated management system.     

The environmental quality business plan: A step-by-step guide

Companies that have the most effective environmental programs are those that have integrated environmental management into the business process. In order to take an environmental program to a higher level, we must determine a way to get business leaders to acknowledge the business benefit of environmental programs. Business integration becomes more likely when you speak the language of management and present tools that they regularly use. Most companies use business plans, therefore the use of an environmental quality business plan is a segue into the business. To catch management's attention, we must present cost improvement projects that will be part of the environmental quality business plan that affect the bottom line. Examples of the types of projects that could potentially save the company millions of dollars are reducing the cost of remediation, or pollution-prevention projects such as minimizing packaging and the elimination of chemical use and waste. Once we catch management's attention, we can get them involved in developing an environmental quality business plan and thus get more business integration and support.     

Evaluating management systems as part of environmental audits

Evaluating management systems is a crucial component of any environmental audit. Evolving regulations and directives acknowledge this importance. Remedying management deficiencies can result in long-term, lasting improvements in environmental compliance with external requirements and internal policies. This article presents ideas and examples from leading companies on how environmental audits can be designed to enhance TQEM systems.     

Building audits into tqem measurement systems at P&G

This article discusses an approach to building environmental compliance audits into an effective TQEM measurement system. With this approach, companies can move their existing programs from just “meeting the law” to being viewed as “leaders in environmental excellence.” The benefit of this change is that local communities are more likely to allow their environmental leaders the operating flexibility that minimizes cost and the necessary permits for expansion.     

Total quality product design—how to integrate environmental criteria into the product realization process

Recent case studies on the financial benefits of pollution prevention programs well attest to the notion that a commitment to the environment can help profitability not only by avoiding costs and potential liabilities, but also by generating environmentally-based opportunities for competitive advantage. Achieving these benefits, however, represents a complex management challenge that requires embedding environmental concerns in the day-to-day decisions and actions of a company'S employees. This article shows how the marriage of corporate environmental stewardship and TQM, better known as TQEM, is particularly well suited to the area of product design and why environmental health and safety experts can improve a product'S environmental performance.     

Environmentally conscious manufacturing: A technology for the nineties

Editor's note: Companies embracing TQEM must evaluate and change their manufacturing processes to stay globally competitive in the nineties. This article shows how an environmentally conscious manufacturing program incorporating new approaches to waste reduction will help companies achieve their corporatewide TQEM and strategic goals.     

Benchmarking: Survey profiles the who and what of environmental auditing practice

In late 1990, the Environmental Auditing Roundtable's Auditor Training and Qualification Work Group determined that it needed reliable information about those in industry currently doing health, safety, and environmental audits. The work group would use this information to develop appropriate standards for auditors. It was also felt that such information would be helpful to others establishing internal audit programs. The work group, under the leadership of Donald P. Duffy, developed and refined a survey questionnaire during 1991. This article details the results of this survey and provides companies with timely information to benchmark their TQEM auditing efforts.     

Achieving environmental excellence through TQEM strategic alliances

Generally speaking, today's TQEM initiatives do not improve a firm's activities beyond the shipping dock and onto consumer and postconsumer use and reuse. Although internal TQEM efforts do improve environmental impacts of a firm's operations, most firms remain focused on the traditional bottom-line objective of increasing throughput. For these reasons, most firms implementing TQEM miss the many opportunities to improve environmental performance (including cost and quality) through asset recovery, resource sharing, and reuse. However, by taking the advantages of teamwork beyond corporate boundaries, firms can close the loop on environmental improvements. Inter-firm teaming for environmental advantage, which we define as TQEM alliancing, initiates a cyclical approach to environmental performance improvement. It does so by forging strategic relationships among firms that can leverage each other's environmental weaknesses. TQEM allying is a round-robin game plan. In this article, the authors show how it allows firms to take their environmental improvement initiatives beyond regulatory compliance (and into proactivity), beyond pollution control (to total pollution avoidance), and beyond profitability (for a quantitative as well as qualitative bottom line), because firms will be integrating external as well as internal functions across different business domains.     

Measuring for success in communications for permits

Today, U.S. corporations are discovering the merit of combining the principles of total quality environmental management (TQEM) into their measurement and communications programs. This approach has been particularly productive in the permitting process that is necessary for starting, expanding, or sustaining plant operations—a procedure that can easily be thwarted in the absence of a prominent and aggressive communications component. The need to benchmark and measure such a communication program'S progress is critical both for internal management and for environmental regulators concerned that an applicant demonstrate a high degree of public involvement.     

Metrics,decisions, and strategies: Environmental performance measurement in the electric utility industry

The twin challenges of increased competition and environmental consciousness are causing companies in the utility industry to re-examine their methods for measuring environmental performance. A new paradigm is emerging which has already appeared in other industries—treating environmental quality as a potential source of profitability and competitive advantage. This article discusses how utilities and industrial companies can develop an environmental performance measurement framework, integrate it into their strategic and operating business practices, and use it for evaluation of alternative environmental strategies.     

GIS技术在环境管理信息系统中的应用研究

资源与环境保护是人类可持续发展的重要组成部分,环境问题的日益复杂对环境管理水平提出了更高的要求,环境管理信息系统(EMIS)在此基础上应运而生。GIS技术和环境信息在概念和研究对象上具有相似性、互补性,因此基于GIS技术的EMIS的研究将把我国的环境信息管理工作推上一个崭新的、科学的、高效的平台。环境模型与空间信息的耦合是二者结合的发展趋势。     

Corporate environmental excellence and stewardship: Five critical tasks of top management

One of the most important challenges facing business is shaping the role of senior management in corporate environmental performance. In some leading companies, the CEO or chairman takes the initiative to carefully define his or her role because of a strong personal commitment, a keen grasp of the business incentives, in response to past problems, or because of a combination of these. In other companies, even where corporate policies genuinely support and promote corporate environmental, health, and safety programs, there may still be inaction or reluctance on the part of top management to participate or get involved. This management posture may work for a few more years, but no longer than that—and could quickly become a major detriment to any company's ongoing market success or viability. This article will focus on a strategy for getting top management involved in your company's programs and, where they are already involved, for sharing some insights we have gained from our work with a number of companies where top management has taken a strong role in environmental issues and has established precedence for what can work well.