3.

Eighteen Feedback Tools

Cause and Effect Diagram (also called a fishbone diagram because of its
appearance or an Ishikawa diagram after the man who popularized it in Japan)
is a systems-based tool that attempts to identify the root causes of a problem.

and Systems The diagram resembles a fishbone, with the problem displayed to the right,
main causes along the core horizontal line, and sub causes coming off of
these. For instructions on how to create a diagram, see the Box 7 or visit:
http://mielsvr2.ecs.umass.edu/virtual_econ/module2/

In addition to the measurement tools we have outlined there are a Box 7: Cause and Effect Diagram
variety of concepts that offer the same benefit — feedback that triggers value-
creating adaptations. As with the measurement tools, each is appropriate in
different circumstances.
Advance Disposal Fees (ADFs) are fees imposed on product Transportation Markets Income

manufacturers, distributors, or consumers at the front-end to cover the cost

Barges disrupt and Loss of local markets due Increased expenses
of disposing or recycling the product or its containers at the back-end. In destroy habitat to demand and competition
Europe, the “green dot” system of processing fees is used to cover the costs
of recycling empty packages. A similar system of state-assessed processing Decline
of family
fees on beverage containers is in place in California. In the California example, commercial
fishing
the fee is not dissimilar to the small sum of money paid as a refund deposit
on soft-drink bottles in some countries. This type of scheme is an incentive Contamination by humans Competition from non-native Silt collecting causing

scheme to get consumers to return the empty bottles to a place of purchase plant and animal species habitat loss

so that the bottles can be re-used. Pollution Imported Species Dam

Asset Management (as used here, not in its generic sense) is the
Source: Johnathan Evers
practice of managing the design, distribution and recovery of a company’s
products to maximize the value derived from them, and minimize life cycle and The Cause and Effect Diagram (also called a fishbone diagram because
back-end costs. For example, both Pitney Bowes and Xerox have established of its appearance or an Ishikawa diagram after the man who popularized it in
model programs in asset management. Both design their equipment to be Japan) is a systems-based tool that attempts to identify the root causes for a
remanufactured or recycled at the end of their initial life. Both recover their problem. The diagram resembles a fishbone, with the problem displayed to the
leased equipment. Both have turned this into a highly profitable process. right, main causes along the core horizontal line, and sub causes coming off of
these.
Attestation Procedure is a catch all set of accounting schemes
typically conducted by major accounting firms, to independently examine The Cause and Effect Diagram can be used to:
and certify the effectiveness of an organization’s internal controls for both
environmental and social data collection, analysis and reporting. • Focus attention on a specific problem.
• Organize and display theories about its root causes.
CAP Scan is a systems-based tool to respond to immediate business • Show the relationship of factors that influence a problem.
opportunities and problems, and sets forth a menu of options. It was developed • Focus your team on causes, not symptoms.
by The Future 500 to enable companies to adapt quickly to issues that arise
in relation to their products or policies. The matter may be a product launch, Eight Steps to Construct a Cause and Effect Diagram:
a marketing opportunity, or a proposed legislative change that is likely to
1. Clearly identify and define the problem or symptom.
affect the business. The CAP Scan investigates the root cause of the problem
or opportunity. It develops an inventory of an organization’s relevant assets 2. Place the problem at the right, in a box.
and liabilities – the resources it can use to seize the opportunity or solve the 3. Draw the central spine as a line pointing from the left.
problem. Then it presents a menu of alternatives, and recommends tactics or Cont.
strategies that get to the root of the issue.

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 has adequately implemented the standardized environmental management
system and methods of the International Organization for Standardization.
4. Brainstorm 2-6 “major categories” of possible causes. They might be: Scientific Certification Systems (SCS) provides Green Cross certification
• Methods, Machines, and Materials of corporate environmental claims. If a company claims to be achieving a
• People, Places, and Procedures
specified environmental result — like pesticide-free produce, for example
— SCS will conduct tests to certify the claim. The Forest Stewardship Council
• People, Policies, and Surroundings
(FSC) provides standards for certifying the sustainability of forestry practices.
• Suppliers, System, and Skills The Marine Stewardship Council (MSC) certifies fisheries. Green Globe 21
5. Place each major category on the diagram and connect it to the central certifies ecotourism products. SA 8000 is a certification program of the
spine by a line at an angle of about 70 degrees from the horizontal. Council on Economic Priorities (CEP), intended to assess a company’s social
6. For each major category ask, “Why does this condition exist?” and labour practices. In addition to these private sector initiatives, a variety
7. Add to each branch until the fishbone is complete. of green labels have emerged, most sponsored by government agencies, that
8. Identify the likely, actionable root cause(s). indicate certification of various environmental characteristics of products. For
information on ISO 14000, visit www.iso.ch./iso/en/ISOOnline.openerpage. For
Remember to: information on SA 8000, visit www.cepaa.org.
• State causes, not solutions.
Deposit/Refund Systems are a specific type of take-back system, in
• Take note of causes that appear repeatedly.
which a consumer is charged a deposit on receipt of the product, and receives
• Review each major cause category. Circle the most likely causes on the a refund of the deposit when the used product or its container is returned to the
diagram.
store or a designated location. Deposit/refund systems are most common with
• Test the most likely cause and verify with data. beverage containers, but are also used to provide an incentive for the return of
Source: Mechanical and Industrial Engineering, University of Massachusetts, 1999 other products which may be harmful or wasteful if otherwise discarded, from
toxic chemicals, to used motor oil, to appliances.

Certification is a process for gaining third party confirmation that an

organization or its products are meeting set criteria. The criteria can relate to
processes or to outcomes (for example, the quality of a product or service).
Specific environmental and, increasingly, triple bottom line certification
(sometimes called accreditation programs) have been developed in recent
years. Green labeling, where a product or process which meets certain
criteria is identified by a logo, is covered under the concept of certification.
Many companies provide ISO 14000 certification to confirm that a company

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 Environmental Product Design Map is a brand-name tool deployed Processing Fees are similar to ADFs but potentially more compre-
by the engineering and environmental consulting firm WSP. It facilitates the hensive in the range of costs they cover. They are fees imposed on product
product planning and design process by generating a simple and cost-effective manufacturers or distributors at the front-end to cover the cost of recovering,
life cycle analysis of product content and materials selection. Incorporating a discarding, or recycling products at the back-end.
legal risk analysis, the map generated by the tool conforms to new European
requirements relating to Integrated Product Policy regulations, and delivers Stakeholder Feedback and Adaptation keeps an organization in close
a sound basis to begin to undertake materials and process substitutions touch with its key stakeholders — employees, customers, communities, media
to reduce the environmental impacts of products in the design, prototype, and others — and in touch with any changing opinions, trends, and attitudes
manufacture, use, and disposition stages of a wide range of products. toward the organization. It identifies threats and opportunities and provides a
basis for product and marketing changes.
Forces and Trends Assessment is a concept developed by the
environmental consulting firm ERM. It takes an “outside-in” approach to Sustainability Assessment Technique (SAT) can take any plan or
reviewing the timing and magnitude of the impact on a particular corporation of decision, from a regional development plan, to a product or process design,
global, social, economic, and environmental forces and trends. The approach to a single decision, and evaluate the expected outcomes against a range
begins with a review of the forces and trends most likely to have a significant of economic, social and environmental criteria. Developed by WSP, the tool
or short-term impact on an organisation, builds organisation-specific scenarios uses an extensive database of best current thinking and practice as a basis
which could credibly materialize as a result of the forces and trends identified, to provide an easy-to-use, graphical assessment that compares the planned
then determines appropriate actions for the organisation to better anticipate outcomes with the best potential outcomes across the whole range of key
the scenarios in a way that improves overall corporate performance. business issues. The tool allows an easily understood evaluation of the relative
strength and/or weakness of decisions and points the way to improved
Greenhouse Gas Validation and Verification Protocols have been performance.
developed by firms such as Det Norske Veritas, to validate complex greenhouse
gas emissions reduction projects. There are numerous schemes of this kind in Take-Back Systems are systems in which the retailer, distributor, or
operation, that help to verify actual emissions reductions for carbon trading manufacturer of a product takes the product back after its useful life. Take-
markets. back systems are relatively common for certain types of equipment, such as
copiers and postage meters; for certain types of chemicals; and for cans and
Ishikawa Diagrams (See Cause and Effect Diagrams) bottles through container recycling or deposit systems.
Verification Systems provide for the independent verification of
ISO 14000 is a standardized environmental management system that corporate policies, claims, or supplier specifications regarding an increasing
includes written procedures, instructions, forms or records to standardize array of social and environmental performance standards. These may
behavior and make planning and administration more predictable and include verification of sustainably harvested wood, fair labor practices,
controllable, and help to clarify who is responsible for doing what, when, how, carbon offset measurement, and many others. Verification is typically
when, why and where. See the discussion of environmental management conducted by assessment or accounting firms such as Deloitte and Touche or
systems, as well as the discussion of certification. For further information visit Det Norske Veritas.
www.iso.ch./iso/en/ISOOnline.openerpage — See Cause and Effect Diagrams
Just in Time Inventory Management (JIT) seeks to minimize the
inventory of raw materials and parts by tightly coordinating the action of
members of a company’s supply chain. Under JIT systems, companies
institute a Kanban or “pull” system of production and materials control, where
inventories are delivered as close as possible to the time they are needed. This
significantly reduces both the cost and waste of inventory. It requires enhanced
communication and coordination among suppliers and users, often including
direct communication between shop floor and an offsite supplier. JIT is not
possible without reliable delivery and consistent quality. For further information,
visit http://sol.brunel.ac.uk/~jarvis/bola/jit/jit.html

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