Leadership in the transition to a circular economy: how experts are driving the transition

The term circular economy is gaining traction, and thanks in part to the efforts of innovative startups, pioneering governments, and bold corporates, many concrete steps toward this new economy are already being taken. This clearly demonstrates that the transition has begun, and it's often guided by consulting firms like New Economy, which, with expert knowledge, collaborate with clients to explore the steps that can be taken and the opportunities that exist. In her research, Iris asked herself: "What leadership role do these consulting firms play in the transition to a circular economy?"‘

For her master's thesis, Iris Grobben researched the transition to a circular economy. Academic literature provides ample information on what a circular economy should look like, but the leadership of the organizations actually implementing these ideas and guiding parties through the transition, from a directorial role, remains largely undocumented. How they do their work and the changes they bring to the world are the subject of this blog.

Numerous obstacles hinder the transition to circularity: a lack of knowledge and funding, perverse market incentives, inflexible legislation, and a lack of visibility into potential solutions, all of which seem to have locked the transition into a change deadlock. Consulting firms, as directors of the transition, aim to resolve this change deadlock. They do this by demonstrating Horizontal Leadership. This is a form of collective leadership focused on creating new collaborations and acquiring knowledge. An investigative mindset, learning by doing, and reflection are central to this approach.

Consulting firms bring various parties together and, without knowing the solution in advance, they work with the client to shape it. This process creates new connections, devises innovative solutions, and works towards a circular system on a concrete scale. The results of their work then serve to encourage and inspire others to embrace circularity, and in doing so, they are Prospect Builders.

The work of the directors reduces the change deadlock and makes it increasingly possible to integrate circularity into the DNA of organizations and ultimately society. As a result, the opportunities are increasingly being utilized, waste is being increasingly reduced, and the positive effects on the climate, economy, and society are becoming increasingly visible. Traditional consulting firms therefore play a key role in the transition to a circular economy and ensure that the transition gains in impact.