A Capability Maturity Model for Life Cycle Management at the Industry Sector Level

Abstract

One approach to incorporate environmental sustainability in organisations is the implementation of Life Cycle Management (LCM). LCM is a comprehensive and integrated approach for measuring and managing environmental impacts. Successful sector-wide uptake of LCM has the potential to enable the environmental impacts associated with an industry sector to be efficiently measured and managed in a continual improvement process. There is an opportunity for the New Zealand primary sector to strengthen its competitiveness in the global market place by demonstrating the environmental credentials of its products and supporting the country’s “green and clean” image. Previous research has identified the barriers and enablers to successful LCM uptake by New Zealand primary sector Small and Medium sized Enterprises (SMEs) in a sector-based context. This paper builds on that foundation and presents a Life Cycle Management Uptake Evaluation Framework (LUEF) that allows both individual organisations and industry sectors to identify the key factors affecting successful LCM uptake and assess their level of maturity for each factor. The key factors used in this study are structure, culture, resource availability, LCM strategy, knowledge, market requirements and communication. The study employed a qualitative methodology and used face-to-face interviews with different stakeholders in the value chain for the New Zealand kiwifruit sector to inform the development of the framework. In the framework, each factor is represented as a maturity scale to allow organisations as well as industry sectors to assess their position on the scale. This will help them to create a baseline assessment, both for themselves as an organisation, as well as on an industry sector level. The baseline assessment will allow them to identify areas for improvements, which can be tracked over time by checking the progress on the scales in the individual areas. It can also be used as a communication tool for stakeholders in the supply chain (e.g., growers, post-harvest operators and staff from industry boards). These stakeholders can use the tool to measure and compare performance, including evaluating their own performance against the industry average, as well as performance of the industry sector over time. This is useful to engage these stakeholders and demonstrate that changes (such as reducing carbon footprints) have a positive impact and lead to progress (as well as highlighting any actions that need to be reviewed and adjusted).