I recently wrote about increased instances of cross sector collaboration as a method by which organisations have attempted to solve their collective sustainability problems. I used the example of the partnership between Interface and the Zoological Society London, but another of the insights I encountered from the Responsible Business Summit came from the collaboration of a local government body and a private company.
The session, entitled “Business model for innovation”, involved the discussion of the challenges and opportunities that existed for a public private partnership between Zipcar and Transport for London (Tfl). Zipcar was acutely aware of the environmental, social and economic benefits provided by its innovative car-sharing club. Schemes that reduce congestion and improve air quality are also high on the agenda of those who govern a city where pollutants are linked to as many as one in 12 deaths. The question was, how could they work together to help scale a car-sharing business model that would be of benefit to both parties and wider society?
The General Manager of Zipcar, Mark Walker, said that an effective partnership was required with government and the wider transport network to establish the infrastructure needed for car-club sharing to have real impact. In London, Zipcar kick-started the dialogue by commissioning the ex-head of climate change from the Environment Agency to write a white paper called ‘Car Lite London: How car clubs will help more Londoners drive less’.Packed with facts and figures such as ‘congestion costs London up to £4bn a year’ and ‘each car club car replaces at least 14 private cars’, the report makes a compelling case for scaling the model further.
Walker voiced his vision for the future, where Zipcar access is incorporated into oyster cards and incentive structures offered to those who shun their private cars for car-sharing clubs. The partnership is still in its early stages, however, so it remains to be seen whether they can keep up the momentum with the collaboration to make Walker’s vision a reality.
With all this talk of success and opportunity it might seem that cross sector collaboration is always a win-win, but the road to success is not without potholes. Last year’s blog post by Paul Ellingstad and Charmian Love in the Harvard Business Review (HBR) warns that organisations should not underestimate the power of good relationships in the context of successful collaboration. A more recent HBR article, entitled The Collaboration Imperative, warns that a deficiency of trust can undermine even the best intentioned sustainability partnership effort. Consequently, it suggests that optimal collaborations are those that focus on business processes & outcomes. Zipcar appears to be doing just that through the exploration of methods of how to scale their car-sharing model and communication of these to the general public and local government bodies it hopes to further engage with. Testing the waters through wider communication and engagement with stakeholders is one way of reducing the possibility of otherwise unforeseen legal battles and protest that the likes of Uber have on their hands.
Given the multifaceted nature of many of the sustainability issues the world currently faces, organisations have come to realise the benefits of using their collective clout to solve them. Before rushing to the altar for the next big cross sector collaboration, however, they should not forget the importance of personal relationships, communication and the establishment of shared goals.