Sustainability, Supply Chain and Lessons From the Sierra Club
I recently went one on one with Mike Newman, CEO of Returnity, a pioneer in the elimination of single use shipping packaging. Mike is considered one of the leading experts in the transformation of logistics platforms from single-use to circularity, reducing the mountains of plastics and corrugated cardboard entering our waste stream while saving millions in packaging expenses. Over the last two plus decades, Mike has worked at the intersection of supply chain and sustainability and has founded three companies and built and launched technology products that have been distributed to millions of consumers.
Adam: Thanks again for taking the time to share your story and your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth?
Mike: Some people seem to have the ability to see a clear path for themselves and work towards it linearly. I've been the opposite; it has been a lot of stumbling forward. I had no idea how to get a job when I graduated from college, so I applied to and got an internship in Washington with the Sierra Club. That was the first step of bouncing around between NGOs, government and for-profit companies that all taught me important lessons and exposed me to new opportunities.
Starting on the "outside" rather than with a large company has been a challenge, because big companies have a bias towards people with large company experience. But by surrounding myself with smart, interesting people - no matter the setting - I've always felt better positioned for whatever comes next.
Adam: What are the best and most applicable lessons you’ve learned from time as a leader of the Sierra Club's political operations?
Mike: Washington is a city full of young people thrown into roles they are ridiculously unprepared for - and that was my experience with the Sierra Club. That exposure changes you forever; I learned that politicians are just people and that if I can talk to a Senator about an issue, I can talk to anybody. I learned that there are passionate, smart people on both sides of the aisle - and vain, self-interested people as well. And I learned that true progress isn't measured in any one election but over a long-time horizon, which was a painful lesson but one that has served me very well.
Adam: I found several tidbits in your background especially interesting. Can you talk about your experience of serving as president of a labor union? What is the backstory? What are the best lessons you learned?
Mike: The Sierra Club at that time fell into a somewhat common trap; it was full of committed employees there for the mission, not the salary, which I think caused it to forget that we still needed to have some security and make living wages. Ultimately, the employees felt that the only way to be heard was to unionize, and of course the irony is that the organization fought it aggressively, despite their continued pursuit of other unions as partners on the issues they were so focused on. I will never forget the profound condescension of certain senior managers; it was a big contributor to my decision to pursue an MBA, as I knew that there had to be a better way to run a large organization.
Adam: How did you find yourself advising a start-up non-profit in Nairobi? What were your key takeaways from that experience?
Mike: Getting my MBA from the University of Michigan gave me the opportunity to take advantage of a lot of non-traditional programs, so that while my colleagues were at JP Morgan or P&G, I was working from Nairobi trying to help a small non-profit in whatever way I could. Ultimately my biggest take-away was how arrogant it was to think we could come in and do much of anything in 6 weeks; it was an amazing group of smart and dedicated people doing the best they could under difficult operational circumstances to create change in their community. We quickly understood that classroom learning was of limited value in that effort; I'm afraid we probably learned much more than we shared!
Adam: What attracted you to the sustainability space? In your experience, what are the key distinctions between life as an entrepreneur and life a social entrepreneur?
Mike: I've been an entrepreneur for over a decade now - and I have enough perspective now to wonder why anybody ever tries it. Success is fleeting, the pressure is constant, and you have to live with consistent ambiguity. Day to day, there really isn't any difference between being a "regular" entrepreneur or a social entrepreneur, save one. When you have a tough day - and there will be plenty - the mission is what can really push you through it, and that is one advantage to social entrepreneurship.
I became passionate about sustainability from an early age - probably because it runs in my blood. My grandfather ran his own scrap yard, collecting up metal, paper and glass for recycling. My father built what became the largest used phone refurbisher and recycler in the world. I always wanted to study environmental policy and be involved in some way.
Adam: More broadly, what should everyone better understand about sustainability and its importance socially and economically?
Mike: By now everybody should be acutely aware of our climate crisis. Oftentimes, we lose focus on the bigger picture and think that addressing plastic straws - or even shipping packaging - is how we fix our problems. Those things matter, but real change is going to be difficult and touch our entire society - and we need entrepreneurs to lead the charge. If you care about social and economic issues, you care about sustainability, because you will never make progress without addressing our underlying resource use problems.
Adam: In your career, you have developed partnerships with huge companies like Wal-Mart, Target and Verizon. How? And how can other entrepreneurs develop similar relationships?
Mike: There are three keys to working with large companies. First, you have to understand that things usually are going to move very slowly; stay patient and be careful how hard you push. Second, they need to know that you can handle their volume of business, so don't go in before you can prove your ability to jump to that scale. And finally, change at a large company often means an individual or group's job must change - or might even be eliminated. That creates an internal inertia that is very hard to overcome - so try to find opportunities that limit that change as much as possible!
Adam: What should all entrepreneurs understand about supply chain management?
Mike: The trains must run on time, full stop. An expensive, inefficient system is always better than a non-functional one, which makes supply chain management profoundly risk adverse. Ignore that reality at your peril!
Adam: What are your best tips for entrepreneurs, executives and leaders interested in grassroots marketing and building a grassroots movement?
Mike: It is easier than ever to find "your people" thanks to social media and the internet. Though it can really take you out of your comfort zone, I strongly encourage entrepreneurs to talk to people outside their circle as early as possible to learn what is - and is not - resonating with their product or service. Scale will almost certainly require it, and the sooner you understand the strengths and weaknesses of your idea, the better!
Adam: More generally, what are your three best tips applicable to entrepreneurs, executives and leaders?
Mike: 1. Successful startups need to focus on being great at as few things as possible. Every discipline or market you must disrupt or excel in for your business to thrive just compounds your risk.
2. Network aggressively – but never assume that anybody knows your market or concept better than you do.
3. How you raise money impacts the definition of success for your company more fundamentally than you can possibly imagine.
Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?
Mike: Keep the mindset of a student, always. Continue to research and seek out new ways to approach challenges in your industry and take care not to fall into complacency. Just because it is the norm does not mean it is the best approach.
Adam: As a serial entrepreneur involved in multiple ventures, how do you manage your time effectively? How do you focus? What are some tips, ticks and guiding principles that others in a similar situation should consider?
Mike: It has been very important for me to learn to stop chasing "shiny objects". No matter how busy you are, there is never enough time to do everything you want, so you must have the discipline to say no to yourself, your colleagues, and the outside world.
Adam: What is the single best piece of advice you have ever received?
Mike: Be patient. I want to go fast and win fast, but when you are trying to change systems it takes time. Slow isn't always losing if you are hitting your milestones, and patience can create a stronger organization when seen through that filter.
Adam: What is one thing everyone should be doing to pay it forward?
Mike: Mentorship! I love talking to entrepreneurs; it is great to help them launch their new ventures, but I always take as much as I give from the interaction.