Almost Interconnected
How Sweden’s 50 Largest Companies Apply a Systems Approach to Sustainability Work – PART 1
By Nathalie Mantel & Johanna Hallin
A systems approach is based on the idea of interconnectedness — that we are all linked together in this one system on this one planet. All separate parts must thrive for the entity to thrive, for a body it doesn’t matter how well the heart beats if your lungs fail. In a global and connected world — all part of it must thrive to ensure a sustainable future for all.
Global value chains connect companies to our shared system
Zooming into companies — they are connected to this shared system via global value chains, stakeholders inside and outside the organization and planetary assets and boundaries amongst many, many things.
Applying a systems approach to businesses strategy and governance is imperative to build a sustainable society fit for the generations to come.
The Inter Business Index is a measurement that looks at how an individual company leverages the abilities of purpose, empathy, systems approach and transformation in core strategy and business. Our research show that these abilities are key when developing businesses for a sustainable future, businesses that create value in all relationships. For the second year in a row, we have analyzed Sweden’s 50 biggest companies and how well they perform in creating holistic value according to our Index.
This year, the results showed that companies are moving forward in developing these skills — but one is proving more difficult for most companies to work with then the others: Applying a systems approach to core strategy.
Indexing ability to create value to all stakeholders
The index examines how well a company moves toward a holistic view of sustainability, analyzes is place in the system, it’s sense of responsibility and change agency. Most importantly — it looks at a company’s ability to align strategic priorities to match the analysis made.
We found several different insights when looking at the results of the Inter Business Index of 2018 in relation to systems approach. The companies analyzed seem to be quite far along in the analysis of what needs to be done to ensure a sustainable future. They look at macro trends to understand their place in the system — digitalization, climate change and increasing migration to name a few of the more commonly occurring ones. Many of them are explicit in naming themselves responsible for their part of the system and change that has to come with it. Many companies understand that they have tremendous impact on people and planet — and the need to take responsibility of their actions in all relations.
In short — many of the company’s analyzed have an abundance of information leading them towards opportunities for sustainability. Still, very few of them have even started the process of making business priorities to align strategies and core operation with these findings.
Knowing what needs to be done is one thing, actually doing it is another.
Applying a systematic approach to businesses strategy is imperative for them to be a force for sustainability, but proves difficult in relation to the market. The inherent short-sightedness of traditional companies is hindering this important development. Also, the fact that the sustainability field is in rapid development — and many business leaders are unsure of what to do next.
Swedish companies have a long way to go before they can create holistic value — and applying a systems approach on core strategies and priorities should be at the top of their list to do so.
Please read the entire article published in Applied Science and Innovative Research: ALMOST INTERCONNECTED — How Sweden’s 50 Largest Companies Apply a Systems Approach to Sustainability.
Nathalie Mantel is the COO of Inter Business Initiative, a knowledge lab, developing framework towards holistic value creation where business can act as change agents in a world where sustainability, responsibility, agency are business as usual.
Johanna Hallin is the founder and Chair of Inter Business, and her (my) day job is CEO of Srey.
