1.8 End-of-Topic Case: Amer Sports: Sticky Stories Can Free up Resources

Roger Hutchinson, Director of Global Supply Chain at Amer, stepped quickly through the door. Noting that the sky was blue—not a cloud to be seen—he pulled out his cell phone and clicked on the Lime Scooter app. The nearest scooter was less than half a block away.

In only 20 minutes, Roger was scheduled to lead a business group sponsored by the Utah Office of Economic Development on a tour of Amer’s new Distribution Center (DC). Roger knew he could cover the 2.1 miles to the DC in 12–15 minutes on a scooter. Yes, he was cutting it close, but what was new?

As Roger unlocked the scooter, he thought back to his last tour of the DC. Only one week earlier, he had walked Heikki Takala, Amer’s CEO, and Jussi Siitonen, Amer’s CFO, through the facility. Amer’s leadership had been impressed with what Roger’s team was doing to retrofit a pre-existing warehouse built by Wayfair into a model for sustainable operations.

An Unusual Offer

He sensed they also appreciated his team’s passion for sustainability. The result: As they were wrapping up the visit, Heikki Takala had made an unusual offer. The CEO had said, “You have a €50 million budget to get this DC up and running. You can keep every euro you save and invest it your sustainability pet projects. If you want a solar farm, go for it!”

Roger’s initial thoughts had been, “Wow! Really? That’s cool!” Yet, even as Roger began to process the invitation—and the possibilities—Heikki Takala put a challenge on the table, saying, “We’re 100% behind you. Build your targets. Decide where you want to take sustainability over the next 3, 5, 10 years. Make the business case for how you are going to get there. Then invest the money.”

An Exciting, but Daunting Task

At the time, Roger’s excitement had blinded him to a key reality. The CEO hadn’t just empowered him to act; the CEO had made him responsible to act. Yes, Roger and his team had purposely told a sticky story about their quest for sustainable operations. They had wanted to impress Amer’s leadership team. Now, he and his team had two tasks to perform.

  1. Save Money. Roger’s team needed to save money on the DC start-up to free up cash for sustainability projects. The CEO’s save-it-to-use-it offer was very different from the standard use-it-or-lose-it model.

  2. Develop a Sticky Strategy. Roger’s team needed to develop the right sustainability strategy and identify the right initiatives to make a real difference. The CEO’s language was clear: “Make the business case for how you are going to get there.” Roger would need to tell a sticky story and deliver on his promises—an exciting, but daunting task.

The time for talk was over. Roger now had to act. He needed to come up with a vision and the initiatives to make it a reality. One question was on his mind: “What’s next?”

Questions

  1. If you were Roger, how would you feel about the CEO’s unusual offer?

  2. What steps would you recommend Roger take to codify his vision of sustainable DC operations?

  3. Identify two or three sustainability initiatives you would recommend Roger consider as part of his sustainability strategy. Make your case for each initiative. Remember to tell a sticky story.

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