Transformation Toward a Life-Centered Company: So, Why? So, What? So… HOW?

The?Envision Beyond Journal ?is a monthly publication of the?Intelligent Enterprise Institute, the think and do tank of SAP to help business leaders inspire and accelerate change.

The issue is about?Transformation Toward a Life-Centered Company. Read and discover insights on?what can be done and what are some practical methods and tools to accelerate the path to becoming a Life-Centered Company. You'll also find an exercise at the end to self-reflect on your own personal transformation as a business leader.?

Don’t miss the?Food for Thought?section below to hear from other perspectives!

By Volker Haltenhof

“There is no alternative” (TINA ) – to start with Margaret Thatcher’s provocative quote. She referred to neoliberalism; I refer to transforming toward a Life-Centered Mindset.

In the last edition of our Envision Beyond Journal, we focused on the Life-Centered Economy and elaborated on the evolution from a Human-Centered to a Life-Centered Mindset. In short: Life-Centered Design adds environmental and ethical values (responsibility) to Human-Centered Design (desirability, feasibility, and viability).

This edition will focus on the transformation toward becoming a Life-Centered Company (LCC) and touch on what can be done and how tools and technology can support it. It also offers a bit of self-reflection at the end, concerning the adoption of a Life-Centered Mindset as an individual. But first things first. “Start with why,” as in Simon Sinek’s book , when it comes to behavioral change. In short: no motivation – no (active) transformation.??

Why should I want to embrace a Life-Centered Mindset? Why should I use the influence I have in my professional life and in my private life to promote a Life-Centered Mindset? Why should I change my behavior, influence the behavior of my company and my eco-system and become a change agent or a catalyst ??

A very abstract argument is that saving the planet is the “right” thing to do from an environmental, social, and governance (ESG) perspective. In reality, it is not about us saving the planet. It is about saving us and life on this planet. The planet does not care and will stay. We should care for life in general, for ourselves, and for the following generations to be able to stay on this planet in the absence of a plan@B.

Apart from doing the right thing, it is also increasingly possible to get things right from a commercial perspective due to changes in consumer behavior. Consumers are shifting their spending toward products with ESG-related claims, as revealed in a recent study conducted by McKinsey and NielsenIQ . As a result, according to a study by Deloitte , purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction. This will make it easier to take responsible decisions. At Patagonia, for example, there is no contradiction between saving the world and the bottom line . Patagonia is recognized as a responsible company in the apparel industry, addressing environmental and social challenges while maintaining profitability. The company’s core mission is to save the planet, and its values focus on building the best products, causing no unnecessary harm, protecting nature, and challenging conventions. This billion-dollar brand demonstrates that businesses can be both radically responsible AND profitable.

Having clarified the “why”, let’s look at what can be done to transform toward a Life-Centered Company (LCC).??

Creating a Life-Centered Economy requires a shift in priorities from solely pursuing profit to balancing the needs of people, the planet, and the economy. While this may seem daunting, it is achievable with the right mindset, strategy, and tools. While there is no simple recipe, addressing these four topics can provide a solid foundation for a Life-Centered Company (LLC).

1.????(Re-) Define a clear vision, purpose and mission :

(Re-)evaluate the company's objectives to ensure they are aligned with the principles of a Life-Centered Company, i.e. one that assigns ESG goals the same level of importance as striving for financial profit.

2.????Develop, measure and report back on SMART ESG criteria:

Address key environmental and social challenges, such as waste reduction, carbon emissions, diversity and inclusion, and community engagement. Embrace the circular economy . Measure (“What gets measured gets done ”) and report back transparently on your performance (using recognized sustainability reporting frameworks).

Share lessons learned and “Do good things and talk about them”.

3.????Engage stakeholders and establish partnerships:

Collaborate with various stakeholders – employees, customers, suppliers, investors, and the community – to develop and implement the company's sustainability strategy. Build partnerships with industry associations, NGOs, and other organizations that share similar values and goals.?

4.????Foster innovation for positive impact: Encourage research and development of innovative technologies, products, and services that address environmental and social challenges while supporting the company’s financial growth.

By addressing these pillars, a company can work toward transforming its business and operations to align with a Life-Centered Economy.

There is no silver bullet for a mind shift. For a practical exercise, the Ecogood Business Canvas can be a great tool to start with when it comes to (re-)positioning your company toward the common good. It’s based on Alexander Osterwalder’s traditional Business Model Canvas, but with a special focus on ecological and social sustainability, as it incorporates additional elements and perspectives to help businesses consider their broader impact on the environment and society.

For example, the Ecogood Business Canvas encourages businesses to consider the well-being of all stakeholders and promote fairness and social justice. There is also an increased emphasis on using renewable resources, minimizing waste, and reducing environmental impact. Overall, the Ecogood Business Canvas expands on the classic Business Model Canvas by integrating sustainability principles throughout various elements and developing strategies to operate in a more sustainable and responsible manner.

Apart from the need for top management support in re-defining the purpose of the business based on a life-centered approach, a network of change agents can help to raise awareness for the topic.?These change agents can help to foster transformation by promoting the below Life-Centered Design principles internally.

In order to embrace the Life-Centered approach, existing approaches like Design Thinking can be enhanced with Life-Centered Design principles. In our last article we mentioned adding a new dimension of responsibility to Human-Centered Design. This responsibility dimension should be integrated across all stages of Design Thinking . For example, in the research phase, designers seek to understand the needs, desires, and perspectives of the people they are designing for. When incorporating LCD principles, it’s important to expand the scope of empathy to consider not only human-centered aspects but also the needs and interests of non-human beings, ecosystems, and the planet itself. Further on, in the synthesis phase, it’s crucial to broaden the problem definition beyond purely human needs and to frame the problem in a way that considers the ecological and planetary limitations and acknowledges the interdependencies between humans and the environment.

Integrating LCD principles across all dimensions of the Design Thinking process encourages a shift from a narrow focus on conventional economic value to a more comprehensive and life-centered approach that promotes harmony and balance between people, planet, purpose, and profit. This means that the designed products, services, and solutions can go beyond creating financial value and contribute toward the creation of multiple forms of value, such as ecological resilience, social well-being, cultural preservation, and planetary health.

Last but not least, technology has immense potential to help businesses transition toward a Life-Centered Economy. Technology can help companies improve efficiency in business processes, utilize renewable energy, adopt circular economy practices, increase transparency, and make more informed decisions by providing real-time data and analytics. Readers who would like to find out more about the role of emerging and established technologies in accelerating the path to a Life-Centered Economy can visit our April Envision Beyond Journal.

The transformation toward a Life-Centered Company (LCC) will not only feel like the right thing to do, there is really no reason not to take this step when the cost of transforming is lower than the ultimate cost of continuing with business as usual. If we know there is a banana peel ahead, why slip on it instead of changing our course? We can’t solve problems by using the same kind of thinking we used when we created them.??

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The transformation starts from within. Business leaders’ personal transformation has the potential to reshape organizations and redefine the way business is conducted. A business leader who delves into their inner self, confronts limitations, and aligns actions with values can become a catalyst for positive change which inspires other employees and guides their organization toward a more sustainable future.

With that in mind, we offer some statements for a self-reflection “exercise” based on the eight building blocks of a Life-Centered Economy as described in the previous edition of Envision Beyond. Keep in mind the building blocks are interconnected and mutually reinforcing, forming the foundation for a holistic and sustainable economic model that prioritizes the well-being of both people and the planet.

1. Education and awareness:?

I am raising awareness for a Life-Centered Mindset in interactions with:

• employees
• customers
• customers of my customers
• suppliers
• my ecosystem (LinkedIn, Facebook)
• friends & family

I am aware of and promote the paradigm shifts mentioned in the article, e.g., from “ME2WE”

2. Well-being and equitable markets and trade:

?I am an advocate of equal pay within my circle of control.

?I support the well-being of my employees. (If so, in what way?)

3. Ethical considerations:

I integrate different ethical considerations into my economic decision-making as I:

• acknowledge the intrinsic value of all life forms
• promote animal welfare
• respect the rights and well-being of indigenous communities and marginalized groups
• consider the needs of present AND future generations.

4. Holistic metrics:

“What gets measured gets done.”

I have moved beyond traditional economic indicators like GDP to a holistic metric that measures well-being, social progress, and environmental impact.

This may include metrics such as the Genuine Progress Indicator (GPI), the Social Progress Index (SPI), the Ecological Footprint, and many more.

5. Collaboration and stakeholder engagement:

I work with governments, other businesses, civil society organizations (NGOs), and communities to achieve our common purpose.

I apply participatory decision-making processes that incorporate diverse perspectives and ensure accountability.

6. Regenerative practices:

I am shifting from a linear “take-make-dispose” model to a circular economy in my private life as well as in my professional life.

I recognize the interconnectedness of ecosystems and the finite nature of Earth’s resources and act accordingly.

7. Localized and resilient systems:?

I reduce the dependency on long-distance transportation and promote self-sufficiency. This includes supporting local food systems, community-based renewable energy projects, and decentralized economic structures that empower local communities.

These principles also guide my personal buying behavior, e.g., “buy regional/local”.

8. Sustainable consumption and production:

I promote responsible consumption choices, reducing waste and overconsumption, and encouraging the development of sustainable technologies and industries.

I have adopted a mindset of “quality of life” vs. “quantity of things”.

Let me finish this self-reflection with a quote from Bruce Mau since it fits in well with the last three reflection topics:

“Practically everything we do today needs to change. We are still doing most things as if we own nature and have unlimited resources. We work as if waste is not a problem. We treat nature lake a pantry and a toilet. We think short term, party like there’s no tomorrow, and pass the check to future generations. We dump problems we can’t solve into places we can’t see. And many of our solutions create more problems than they correct. Things gotta change. Now.”

―Bruce Mau

• "Using Life-Centered Design we can foster innovation which is not only technically feasible, economically viable and humanly desirable but also inherently sustainable?–?for future generations and our planet." Find out more about the?SAP Life-Centred Design Movement .?
• Do you need both a mission statement and a purpose statement? Explore?here .?
• World Economic Forum ?looks into how to design innovations based on circular principles.?
• "Nature has the solutions! If we work together with nature, we might get ourselves out of the mess we created." says Elena Doms, Head of Earth Plus. Listen to?her keynote ?from ChangeNOW 2023 in Paris.?

The?Intelligent Enterprise Institute?helps business leaders understand the transformative potential of different forms of intelligence and use it for their organizations and life. It provides a platform to inspire and accelerate change, supported by market trends and SAP’s vision to help the world run better and improve people’s lives. By generating new insights and bringing together unheard voices and unique perspectives from leading thinkers and doers of the world, the Intelligent Enterprise Institute aims to foster different qualities in enterprises and their stakeholders alike, taking them into action for desirable outcomes.?