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JOHN SAWHILL -e i tained for farming.We also felt that unless we could ! scale of an entire landscape to protect biological re- 11 - do something about the area's weak economy,there sources, you've touched the tar baby whether you i Is would be too much pressure for development in like it or not. You're in the community-develop- 4 ways inconsistent with our conservation objec- ment business and the conservation business; the s tives. And so we're trying to find new, low-impact two are inextricably linked. s businesses to come into the area, profit from the f- eastern shore's comparative advantages, and pro- As you learn more about sustainable development, i vide jobs for people. do you find areas where a species'survival and eco- nomic activity clash irreconcilably? What about i If your core capabilities as an organization are in the battle in the Pacific Northwest between envi- science and real estate, what you're describing ronmentalists and the logging industry over the sounds like a real departure.Do you have to go out- I spotted owl? side the organization for people? c i Obviously, there are no easy answers to conflicts Yes, for two new skills. First,we need communi- like those,but such clashes are not inevitable.The ty-development organizing skills.We typically hire controversies surrounding the Endangered Species someone who will live in the area,be rooted in the Act show that people on all sides are not doing a , community, and will work with other local people good job in planning and prevention.The lesson to to build and strengthen a conservation ethic. Sec- be learned is this: The best way to avoid divisive ond,we need business-development and marketing conflicts over endangered species is to get out in I skills.For the Virginia project,we recruited the for- front of the issue, to address the problem before it mer vice president and chief business officer of becomes a crisis. It's just plain bad policy to wait Colonial Williamsburg to help manage a new for- until a plant or animal is on the brink of extinction profit company called the Virginia Eastern Shore before taking action. Too often, we wait until we n Sustainable Development Corporation, which has have to send in the cavalry when a little diplomacy three goals:profitability, job creation, and environ- .I beforehand could have avoided the whole mess. 4 mental protection. We felt that the enterprise If we get to the point where a species is nearing had to be for-profit in order to succeed. On the extinction,we've let things go too far.Whether it's ' other hand, we and our investors realized that we an owl or a gnatcatcher or a salmon—these creatures couldn't expect to make venture capital returns. are not responsible for the decline of industries. The trick to economic.development anywhere is Their near extinction is usually symptomatic of a to identify what is special about the place—its com- larger problem.The plight of the spotted owl in the parative advantages—and to build on that. Also, Pacific Northwest, for instance, suggests that a there is strength in diversity, so our strategy is not once-plentiful resource, the old-growth forest, is in to look for 2 different 50% solutions but 50 differ- trouble.And we depend on that resource for future, ent 2% solutions. Specifically, our goal with the sustainable economic development. Virginia shore project is to create 50 small busi- On my desk, I have a little sign that says, "If ` nesses that will generate 250 jobs over the next you're not the lead dog, the view never changes." five years. The company will ini- tially focus on developing and marketing nature-tourism pro- "If a species is nearing extinctions we've grams and related services, which are a natural fit given the re- let things go too far." gion's beauty and proximity to major population centers. In ad- dition, it will try to take advantage of the area's Businesses and communities that get out in front strong agricultural base to develop and market high- on environmental issues will have an enormous quality, high-margin specialty foods and organic competitive advantage over those that stall, file produce.Today the farmers are growing commodity lawsuits,or simply bury their heads in the sand. crops and losing money. If we're as successful as we hope to be,the project How are business leaders doing on environmental will become a model we'll use elsewhere. We're issues today? very excited about this venture—the spark is lit. Our mission leads us to this kind of activity be- Some of the most innovative and competitive cause once you say you're going to work on the companies I know have been in the forefront of en- HARVARD BUSINESS REVIEW September-Octoba 1995 113