Orchestrating harmony

Top leaders, as conductors of harmony, play an essential role in shaping the culture and success of their organizations’ circular transition. It is about orchestrating a symphony of purpose-driven humans, perspectives, and efforts toward a joint (impact) goal. To emphasize holistic thinking, self-management, adaptability, long-term perspectives, and sympathetic stakeholder engagement – with the planet perhaps being the most crucial stakeholder of them all. 

The same can be said about the transition in the value chain. When you shift the focus from yourself as an individual and your company as an enclosed entity within the ecosystem towards a connected direction and understanding, the transition will flow more harmoniously – and more emphasis will naturally also come on nature. Hence, there is a dependency in connectedness: the resources are not inexhaustible, and they are not easy to replace. They are not given to you as an individual or to your specific company.

The planet’s resources are common property and must be handled accordingly – this must be the foundation for the new collaborative values and structures that will support the transformation in scope 3 and ensure an industry that operates in respect of the planetary boundaries.

Three steps a leader must take to reduce disharmony in the transition process

In our work, we meet a lot of courageous leaders who dare to think radically differently about their business models, strategies, and processes. However, having taken that first step towards a greener and more circular way of doing business, more often than not, entails a realization that the organization has to change to fully release the potential of the circular transformation:

1. Start unlearning

   First, the leader must insist on challenging assumptions about what the organization should become. Our organizations are made up of layers of rules, regulations, structures, procedures, and processes built on beliefs, logic, and values from a more predictable time when profit was king. That echoes professor and writer Ida Engholm’s distinction between “State of Being” and “State of Doing” (Design for the New World, p. 130).

   Our organizations have grown into large, intangible “doing-machines” that are maintaining and, in turn, also maintained by the aforementioned rules, processes, etc., and they are, thus, separated from the natural world.

   That is problematic and becomes evident in an unpredictable world in crisis. We, as individuals, are torn between our “being” and “doing”. Among Gen Z, this is prevalent and shows itself through movements such as Quiet Quitting, their ambitions not to become leaders, and climate anxiety leading to every fourth young woman considering not having children.

   Therefore, challenging our assumptions on what an organization should be is essential both in terms of internal and external sustainability. But it is hard! It takes a lot of unlearning: Letting go of control, discovering new roles across the organization, and, first and foremost, rethinking the part of the top manager towards more of a “chief sensemaking officer”.

   That includes empathizing with the challenges, uncertainties, fears, and hopes that colleagues are experiencing along the way – and taking seriously the task of navigating these emotions together. A key lesson: These are emotions you go through as a top manager, too.

2. Experiment

   Secondly, consistent with the entire transition process, it is necessary to consciously – but often also unconsciously – work with what you could call experiments. In this connection, it is worth remembering that designing an organization is not just a project. Nor is it a number of phases. Instead, it is a continuous interaction between curiously ascertaining a challenge or opportunity, creating time and space to unfold possible ideas, paths, and directions to move forward, and openly testing which way seems most right and works best. In reality, this means that organizational design becomes an ongoing organization and reorganization of working methods, relationships, roles, and approaches. Supporting this constant mode of experimentation is perhaps the organization’s ultimate endpoint, making it innovative and adaptive. It is also where power has finally been distributed across all colleagues, giving them the agency to drive the learning and shifts in behavior that they deem right.

3. Hold the tension

   Third, hold the tension. New insights and discoveries arise throughout the change process, and solutions and approaches float – new ideas can come from anywhere. But where does this lead, and what form and shape should our work take? The tension in terms of open-endedness and ambiguity is palpable in the change process, and the risk is that especially top managers, who see themselves as decision-makers, will close things down too early. But because the leading decision-making role is largely taken away, that is no longer an option. That means that as a leader, one has to manage the tension by joining colleagues in the exploration – not trying to steer or control it. That is a hard thing to do, and you can feel uncertain about when there is a need to step in and help set direction.

   The same tension and the ability to explore new approaches must also be used when establishing new value chain collaborations and structures.
   

Tools to mobilize

For a leader who is used to having all the answers – or being expected to have them – this new way of leading can seem insecure. But no one has all the answers. As a leader, you should – and can – not either. To utilize the new and distributed power structure outlined in this article, it’s imperative to mobilize the entire organization facing a circular transformation. That is true for any leader but, in fact, also for any employee working to succeed in designing a more circular business.

In our next article, we will share some of the tools and frameworks we use to mobilize entire organizations toward a greener, more inclusive future. In the meantime, reach out to Sara Solveig Ørnsholt or Gry Brostrøm if you want to hear more about how we can help you in your circular and organizational transition. Or explore some of our relevant and existing content below.