This was presented at the Academy Of Management's 2011 Annual Meeting in San Antonio, Texas. This presentation was part of an All-Academy Session entitled: Creating Social Value: From Box Checking to Embedded Philosophy (http://program.aomonline.org/2011/submission.asp?mode=ShowSession&SessionID=822). The session explored different methods of creating social value within organizations; this presentation is a case study of one such method: creating a business with social value inextricably aligned with economic value.

1. AOM2011: A Meaningful Journey From box checking to embedded philosophy: One entrepreneur’s quest to bring capitalism and meaning together Bryan Guido Hassin @guido23

2. I’ll share this presentation on green business as a story—my own entrepreneurial journey

3. My mission: build a business that uses information technology to address the energy challenge Inspired by epic quests That quest is energy Business is the best medium to address it Information technology is a powerful weapon

4. Businesses that trade economic value for green value aren’t “sustainable.” “Corporate Social Responsibility” 4 Wanted: business that aligns economic and green value for sustainable meaning

5. Wanted: meaningful alignment of economic, green value at SCALE 5 Scale Alignment of economic, green value

6. Found: Smart Office Energy Solutions 6

8. Up to 70% of energy use in offices is simply wasted

9. $280 billion per year spent globally on office energy

10. Energy prices forecast to increaseOffice Building Expenses 7

12. 6+ years for typical payback on retrofits

13. Specialized personnel to install, maintain retrofitsMost buildings can not adopt expensive retrofit solutions Can Adopt Can Not Adopt Can Not Adopt Can Not Adopt $26 BILLION POTENTIAL MARKET at 20% AGR 53 MILLION TONS CO2 / ANNUAL SAVINGS 8

14. Wireless Mesh Smart Monitors Smart Sockets SmartOES.com Monitoring and Analysis Services Energy Management Dashboards Desktop Apps Mobile Apps 9 Smart OES reduces office energy consumption 25% with wireless hardware, cloud software, services

15. M3™ Energy Savings Identify building circuits with most energy waste Target and prioritize initiatives with greatest returns Automatically shut off power to unused devices nights and weekends Capitalize on human behavior by reporting individual employee energy use relative to peers 10 Source: Client Studies Smart OES’s proprietary methodology maximizes energy savings throughout office

17. Automatic categorization of energy use (HVAC, lighting, equipment)

18. Immediate identification of greatest energy waste sources, prioritization of highest savingsClient believed climate control was top energy drain, but Smart OES identified the true culprits (lighting) - - Client saved more than $20,000 in planned A/C renovations! Actual Field Trial 11

21. Provides standard improvement levers

24. Analysis performed by PhD engineer experts

25. Set rules for each Smart Socket to shut off automatically at night and weekends when not in use12

26. Motivate: Smart OES induces better energy behavior through recognition, competition Energy use transparency, accountability, and competition 13

28. $500K / year savings

29. Payback < 2 year

30. Easy to try

31. Over 80% trial conversion

32. Hardware components “off the shelf”

33. “Glued” together with Smart OES software

34. Plugged into proprietary M3™ methodology

35. 440 Louisiana

36. 2700 N Post Oak

37. 710 N Post OakTDB, Inc. 14

38. Found: meaningful alignment of economic, green value at SCALE 15 Scale Alignment of economic, green value

39. Found: meaningful alignment of economic, green value at SCALE 16 Smart OES Business Model

40. What does this journey tell us about embedding sustainability philosophy? 17

41. 1. Saving the world isn’t about technology—it’s about people!

42. 2. Focus on initiatives that create value for all stakeholders Align economic and green value for each stakeholder Avoid tradeoffs Stakeholders will innovate their own initiatives 19

43. 3. Bottom up empowerment can be much more productive than top-down control Top-down utility smart meter push has led to resistance 20 “Turn the lights off” policies only 10% effective vs. 90% bottom-up success Empowerment Intangible Benefits: morale, productivity, health

44. 4. Life is too short not to do something meaningful

45. 5. Seek support in your secure bases; be a secure base to others To fear risk is Human Secure bases will love you even if you fail Secure bases give you confidence to take risks Identify and lean on your secure bases 22 Hostage at the Table; Kohlrieser; 2006

46. AOM2011: A Meaningful Journey From box checking to embedded philosophy: One entrepreneur’s quest to bring capitalism and meaning together Bryan Guido Hassin @guido23