State Of The Nation Update – The New Norms Bite?

My gut is telling me something different is happening. Keep it lean folks, we are heading into choppy water again.

Take the redundancies I’ve seen in the last couple of weeks in FM, environmental and sustainable consulting, outsourced technology, mainstream engineering, internal carbon teams. I’ve seen “walk-aways” by corporates on non-core green related activity, sluggishness in buying “green” and renewable energy progress hampered by team downsizing. There is still a lack of investment and we are now seeing the first signs that the Government cuts are going to bite hard!

Green Bank?

Show me something different and I’ll believe it! Isn’t this the blueprint the Carbon trust but a few more heavyweight names with a sprinkling of Private Equity folks? It’s not going to solve the problem, is it? What happens to the innovation spawning grounds in the latest melee? Same model of return, different underwriter?

Cleantech Investment - What are the new norms?

Yields of less than 7%, ROIs – think more like 5 years now folks!
Venture funding – it’s all about collaboration and circumnavigating Venture land as we know it now.
VCs – for early stage they really mean well past “post revenue” stage – and lots of it!
Fund raising – if you haven’t done it in 6 months, forget it you better do something different.
Equity – start at 60% and if you are lucky negotiate your way back as you hit the milestones.
Typical deal flow scenario - 400 deals reviewed – 4 investments made – those were the figures quoted – but am I wrong in thinking that maybe the view on returns needs to change which might make the ratio different? Maybe the investment community simply haven’t woken up to the new norms yet?

Commercial Property & the CRC

The exodus from inefficient but lovely looking glass and steel buildings is already starting to happen. My prediction is that swathes of office blocks will soon become empty especially where they cannot provide the smart control aspect of carbon management programme roll out.
FTSE or AIM listed company in your property portfolio? What are you doing to help their league table position? Perhaps just taking the rent is now no longer enough – the new norm might be business collaboration?

CRC progress – estimates that 20% of businesses cannot even make registration.
Expecting help from the Environment Agency – hmmmm seems to be a problem when you can’t find the forms on the website even...

Facilities Management Companies – it’s not just about an EPC and some CHP feasibility & engineering consultancy – get your acts together - you are offering a fragmented, disparate service offering – clients want pro-active initiative, joined up thinking and deep traction across third party relationships to resolve the issues they face. I’m hearing reports that FM Companies are not playing ball with energy efficiency partners of clients ... BIG mistake!

For further insight you might like to have a look at my previous post 'Sustainability and The Apollo Effect'.

Skills & Recruitment

Graduate entrants – forget going in to £30K of debt and trekking to Uni unless you aim to come out with a 2:1! 69 graduate applicants for a single job ...employers are being choosy. Boy do we have a problem in the UK with our Course Content – someone’s forgetting the basics & practicals – it’s all theory!

And – this bit is for recruiters only as I know you all read my blog (the intelligent ones will get to this bit – the others will have zoned out by now)! Judging by the amount of recruiters checking out my profile at the mo – everyone in recruitment is piling into this space... wise piece of advice ... if you see a bandwagon, you’ve already missed it. Those of us who have been around for a while, stick together, the flight to quality will be on soon enough.

Prediction – remember the dot.com days? Now imagine that again with only one quarter of the jobs .... I dispute all the figures quoted about green jobs – I think they are overestimated and lots of jobs will mainstream in from related industry or be internal appointments – because of the climate we are in (maybe with the exception of big wind or maybe retraining plumbers!).

You reap what you sow, no matter what business you are in, so expect payback relative to your customer facing investment – and I don’t mean just in cash terms! Everyone is feeling the pressure but I’ve asked myself many times this month - is there a way to be nice and still do business anymore? – or have things got so bad it’s just every man for himself and screw the consequences in the future?

Sustainable business behaviour ... hmmm perhaps a subject for a future blog.

Photo by gluemoon on flickr

Carbon Management Software – State of the Nation

I am using the phrase “carbon” management software deliberately. Using words such as sustainability & environmental do not necessarily attract the right talent, create the right feel and, frankly, make some people run a mile.

A quick check if I say “environmental” to you - what picture is in your head right now? What are you thinking? I bet its not cool, teccie, exciting software and programme deployment the like of which we haven’t seen before, is it?

Does GHG sound attractive to you? What about carbon accounting? Does “environmental management system” turn you on? Nah, didn’t think so.

None of these phrases grab me either, so that’s why I prefer not to use them. I prefer words normal people understand, are familiar with reading in their everyday newspapers and can apply a broad brush too. One thing is for sure, the vocabulary used by organisations penetrating a variety of vertical markets will be increasingly important in order that you don’t pigeon-hole your product into a single sector – and you may have to change it depending on which circles you are moving in.

So things are definitely hotting up in the carbon management sofware sector but we don’t have any decent traction… yet. What we do have is a lot of talk. There are some good looking solutions sloooowly coming to market… lots of RFIs/Bids, case studies building etc. but who is really selling and who is really buying?

Across the board incoming enquiries are reported to be up… but don’t hold your breath. I hear this week that the Environment Agency are sending mass mail shots out without so much as a job title in information packs.

Here are some of the things I see adding to the confusion and noise out there:

• Lots of products and services window shopping by all manner of functional areas on the client side and none that necessarily hold the keys to an open cheque book.
• Complex sales entry points – sure you may get in with the FM manager – but who do you need to mark off next?
• Who has got responsibility for delivery of these solutions across the business – come to that are people thinking “cross business solution” or are they thinking “solve just my problem”?
• Solutions that fall across a number of areas take some digging to find where overall responsibility lie.
• Long, laborious scoping out of solutions that have to go through a myriad of sign offs.
• Prospects are underestimating the complexity and reality of the legislation coming down the pipe – there could be some expensive mis-selling and retrofitting going on.
• Interfaces with existing data systems – other environmental management software, HR software, facilities management software – what about communication with outsourced functions and partners?
• Vertical markets – everyone’s going for the big ones first and boy are they making the most of shopping around because they don’t want to make a purchasing error. Seriously – hands up who is working with Tesco?
• Channel and reseller markets. Who is getting into bed with who and are you competing against them in the market now – how will that relationship play out?
• Carbon consultancies WAKE UP - this as a huge cross-sell/up-sell opportunity. But you need a different skillset to sell these software solution babies… do you just want to sell “consultancy” – well you have a 24 month shelf life if that is the case. Call me if you need the right talent to help you open this revenue channel – you have the easy part you UNDERSTAND the client pain, a couple of extra heads with the right knowledge of these products and you have yourself a brand new revenue channel that will extend your company’s shelf life.
• Reseller models - make a wrong move now and you could find yourself in an exclusive reseller partnership with a non-market leader – could be very damaging.
• Software players –are you underestimating the amount of handholding needed to put these products into play? This is not something for the white socked sales person. Consulting credibility client side is the key. There is no getting away from the fact that your front facing sales people will need a modicum of holistic carbon management programme understanding, backed up by some subject matter experts who can navigate their way around the legislative framework. Cue merger and acquisition activity in the boutique consultancy arena.
• Lack of product information – things are moving so fast its difficult to benchmark the different offerings and who really does have credible case history on deployment – half the products I see are still being developed off the shelf as things go along – which is fine – providing you have the right person holding the client’s hand and you understand the vertical markets you are operating in.
• Product Evolution – so you have a wonderful shiny new product - but can you spot the challenges coming through the rest of the market that will impact it and can you keep pace? (think PESTLE, I’m sure you know what I mean).
• Patience – there’s going to be a mixing of a whole host of cultures on this moving forward… that will be an interesting play out – FM, CSR, CTO, FD, HR, IT Sales, outsourcing companies, infrastructure providers and Green Consultants...
• Panic – From what I can see I am predicting that come February some organisations are not going to have the bandwidth to service the enquiries coming through the channels. Don’t leave it until next year – get your teams assembled now!

There will shortly be a feeding frenzy. We know who’s having the conversations and marking off the best talent in the marketplace but not actually hiring yet. Well prepare for a bidding war soon. Those organisations that move early to acquire the brightest talent will have the greatest chance of success.

If you are a candidate, open to the idea of a new opportunity, make sure you back a thoroughbred with a well thought out plan that is showing the ability to flex and actively learn how to approach different markets. Don’t back a donkey that’s just thinking we sell “IT solutions” this way! There will not be enough space in the future.

The talent is out there but will not be for long. I welcome serious clients – no tyre kickers please!

Call or email me for the latest talent hotsheet of individuals available in this space – or if you want to go on it, for that matter!

By Debby Lloyd

Managing Direcor, EcoSearch

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Some upcoming events you might also find interesting:

Green IT Expo - London 10th & 11th November 2009

Smart Energy 09 - London - 1st & 2nd December 2009

Green Monday - London - 7th December 2009

Sustainability and The Apollo Effect

This month I have had the privilege of delivering my thoughts to Facilities Managers from key businesses in Utilities, Telecoms and IT.

The document below gives some extracts from these speeches. I share with you my thoughts on the challenges ahead on our quest to organise businesses to comply with forthcoming regulations for carbon management. Pulling on some analogies and insights into practical methods of engaging mindsets and embedding cultural change for to improvement of business, maintain competitiveness and ultimately survive.

This challenge is becoming ever more complex. For businesses to remain competitive and survive in a changing world sustainable working practices now need to be embedded into the heart of organisational culture – from CEO to cleaner. But how do we relate that bigger picture of business survival in a changing world to the ordinary employee going about their day job?

Sustainability & The Apollo Effect - By Debby Lloyd

By Debby Lloyd
Managing Director, EcoSearch

The Carbon Show 2009

What? Billed as the first ever international exhibition dedicated to carbon, The Carbon Show covers everything from consulting and carbon audits to low carbon solutions for your business.

There will be interactive workshops, seminars, panel debates and plenary sessions. The Carbon Show 2009 offers a wealth of expertise, insight, and best practice. Visitors will have the chance to mix and match these elements to design their own programme. This will give attendees tailored advice and guidance on the carbon market as well as the management of their organisation’s carbon emission scheme.

When? The Carbon Show is a two day event kicking off on Tuesday 29th September 2009

Where? Excel, London

Why? The conference brings people in the industry together before the crucial Copenhagen summit in December, offering the opportunity to network with potential clients, contacts and industry leaders.

The draft Climate Change Bill commits the UK to reductions in CO2 emissions of at least 26% by 2020 and 80% by 2050. Consider the huge opportunities offered by this commitment -The Carbon Show will help you make the most of them!

Who? The Carbon Show features exhibitors from across the carbon industry. EcoSearch will have a presence at the show. We look forward to meeting lots of new faces and helping all of those

Take a look at the extensive Exhibitor list to get a flavour of who you will see at the show.

Pre-register now for FREE general admission to the exhibition and advanced booking privileges for a series of innovative seminars and workshop programmes.

Don’t forget you can follow @EcoSearch and @TheCarbonShow on Twitter even if you are unable to attend. If you are tweeting from the show - don't forget to use the hashtag #carbonshow so that others can follow the show.

Carbon Forum UK

Last week Debby Lloyd spoke at Carbon Forum UK. Below is a ‘brain dump’ of her lasting impressions from the event.

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A personal view – it’s always when you attend these events that the gravity of the situation hits you all over again.

In my own presentation I emphasised the complexity of the corporate situation where everyone used different words and phrases to tackle “carbon” and the huge range and scope of projects that are tackled. It’s not difficult but it is hugely complex because all of the subjects below touch on every aspect of our businesses today.

Some salient points made by some of the “thought leaders” present:-

The Corporate Leadership Group feel more ambitious Government targets to drive improvements should have been set – the current 8% level they felt was lacking in “bite”. I asked the question about visibility at “CFO” level on the upcoming CRC (Carbon Reduction Commitment). The general consensus was 8% reduction could easily be lost on the balance sheet of major corporates and therefore it wasn’t visible.

Concerns also about “adaptation” and how to take things “beyond carbon”
CDP6 was launched in the USA with 70% of the world’s largest financial companies responding this time.

A demand for increase in the amount of policy to drive positive investment, but they do not want punitive policy and there was concern over the amount of corporate red tape already in place.
Institutional investors are currently very concerned about the sustainability aspects of their investments and the impact on company value behind negative performance and publicity
Carbon Reduction Commitment launch – targeting the entities responsible for 10% of the total UK emissions landscape – provoked discussion around the “two tier” system that was clearly emerging.

On Energy Management EN16001 - the new European energy management standard, due to be launched mid 2009. BSi are piloting early movers next year. Regarding energy audit/surveys – the UK are taking a lead on developing the new European standards. The new international energy management standard ISO 500001 will supersede the European standard.

There are some interesting discussions happening in the US on “world population”.

Lots going on in the world of Smart Metering – if you can’t measure it you can’t improve it and there is a big problem with measurement.

Doubt as to whether oil demand (if it continues rising at its current rate) will not be met come 2011.

University of Liverpool are now offering an oil dependency Audit.

Some interesting “world legal” dynamics – seeing a transition in the UK from “deterrent environmental law” (i.e. standards and penalties for breach –v- “behavioural change law” e.g. CRC.

Some technology challenges, for example in Waste to Energy – overcoming the emerging technologies which transfer waste outside of the waste stream once processed. Renewable Transport Fuels Obligation (RTFO) – concerns as to the speed of evolution.

Education – University of East Anglia have the first Carbon Management MBA – it’s fully subscribed.

Skills – there are skills shortages but corporates are just not being flexible enough in an emerging and disparate skills marketplace and are holding out for the perfect experience and skills-set that simply doesn’t exist in volume. Environmental qualifications are all very well but without the commercial bottom line translation skills and cross functional project management ability there’s a real risk to progress. What of career progression and longevity too? It’s a bit like the millennium bug rush. Once it’s done - what next?

The Carbon Forum UK website will be officially launched in January 2009. For further information contact Jeremy Blow of Zeno Communications Ltd via carbon.forum@btinternet.com.

Feel free to give your thoughts on any of these points below in the comments section.