What are the skills and competencies needed for circular economy leadership and management?

To be a leader in any industry and function you have to be a strategic thinker. Develop a holistic view that enables to see an execution path for your vision. Circular economy is no difference. Leaders have to be able to see how principles of circularity allow to drive your strategic goals and achieve desired results.

In my experience leading stakeholder engagement across disciplines and sectors, there is a framework that has proven to be universally effective. The Collective Impact framework first articulated by John Kania and Mark Kramer in the Stanford Social Innovation Review, is a collaboration framework that effectively sets the stage for multiple entities to abandon individual agendas in favour of a single common agenda. It was developed to assist groups who share a common interest and need engagement across parties to progress, in making critical advances on complex social issues. Our teams have utilized this model to build multi-disciplinary and cross-sector coalitions in order to advance diverse social and environmental initiatives.

When our advisors at Revamp Ventures have been tasked to implement any circular economy initiative within client organizations, we start with engaging applied innovation models. What this means, is creating a controlled setting where the gap between theory and practice is reduced, while still reaping the benefits of employing both. If you are implementing this on a team focused on reinventing your business model, the goal is to provide a space and platform, in which participants can practice creative thinking, teamwork, and applying innovative ideas in a controlled and monitored environment. This process, sets the stage for learnings to be applied when the individuals return to their organizational environments.

The pursuit of innovative thinking should be motivated by the fact that every step towards innovation involves feedback. However, this may not be enough. A personalized approach to the team is necessary, and the process should begin not with the desire to find innovation but with explaining the purpose. Even if the purpose is explained, it often falls short, as it could simply be rejected due to varying levels of trust in the team members regarding the level of modern risks. This has been excellently demonstrated on a global scale during the pandemic in recent years. In the same informational space, people tend to choose the line of reasoning that is familiar to them rather than the one that contains the highest degree of objectivity.

Circular metrics are crucial tools for assessing and advancing the transition to a circular economy. By quantifying resource efficiency, material circularity, environmental footprint, product lifetime extension, social impact, and economic resilience, these metrics provide a comprehensive view of sustainability performance. They guide decision-making, set targets, and monitor progress towards a more sustainable and regenerative economic model.

Effective leaders must possess strong systems thinking abilities to understand interconnected nature of economic systems & identify opportunities for circularity. Collaboration & networking skills are essential for building partnerships & mobilizing resources across various sectors. Creativity & innovation are crucial for developing novel solutions to complex sustainability challenges. Change management expertise is needed to navigate organizational transformation & overcome resistance to change. Data analysis skills enable leaders to measure progress & make informed decisions, while effective communication & advocacy are essential for building awareness and driving action.