CIRCULAR ECONOMY: DIFFERENT APPROACH DIFFERENT BEHAVIOR - A DISTINCTIVE CIRCULAR COMPETENCY PROFILE FOR PROFESSIONALS - Sustainability University
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CIRCULAR ECONOMY: DIFFERENT APPROACH DIFFERENT BEHAVIOR A DISTINCTIVE CIRCULAR COMPETENCY PROFILE FOR PROFESSIONALS 1
INDEX
Summary 3
Introduction 5
Circular economy in companies and business processes 9
Roles and circular economy 11
Competencies for a circular economy 12
Introduction to competencies 12
The 8 competencies of a sustainability professional 13
From talent to competent to result to impact 14
The competency profile of a circular economy professional 15
The competencies 16
Personality and motivations 20
Developability 21
A better look at the competency systems thinking 25
Considerations 27
The role of sustainability professionals within companies 27
The role of other business professionals 28
The role of hr professionals 28
The role of the executive and non-executive board 30
The role of educational and training institutions 31
Conclusion 31
Appendices 32
Methodology 32
Competency profile of a circular economy professional (schematic) 34
Levels of competencies - some examples (schematic) 35
2
SUMMARY
Accelerating the transition towards a circular In order to find out which competencies are
economy requires a different approach and necessary to successfully accelerate the transition
behavior from professionals to a circular economy, the research primarily
Companies play an important role in advancing utilizes the day-to-day experiences of sustaina-
and realizing the circular economy (CE). This is bility professionals in companies aiming to acce-
especially true for larger companies. By changing lerate the transition to the circular economy.
their business activities and processes from linear These experienced experts will henceforth be
to circular, large companies can speed up the referred to as CE professionals. CE professionals
transition to a fully circular economy. However, at companies such as Philips, KPN, NS, Tommy
research among sustainability professionals1 indi- Hilfiger, Interface, Meerlanden, and many other
cates that the implementation of CE in companies frontrunners were queried through surveys, peer-
lags behind other sustainable strategies, such as to-peer coaching and peer-to-peer learning to
incorporating energy transition and social respon- determine successful and unsuccessful behavior
sibility. The primary reason is that the implemen- in their work.
tation of CE is more complicated and impacts the
supply chain and all the business processes within The circular economy competency profile
a company. In order to become a circular compa- provides businesses with practical tools
ny, work processes across the company have to A CE professional distinguishes him- or herself by
change. Employees in different departments will combining the abilities to think, do and engage.
need to be able to apply knowledge about the cir- In order to achieve successful circular change,
cular economy, such as its underlying principles, the professional excels at combining the cog-
tools and skills such as new methods of collabo- nitive competencies (1) systems thinking and (2)
ration and circular work processes. In summary: foresight thinking, the functional competency (3)
the transition to a circular economy requires a management & entrepreneurship, and the social
new approach and, therefore, different behavior. competency (4) interpersonal skills. In addition,
the CE professional is flexible, inquisitive, prag-
Which skills and competencies are required for matic, systematic, empathetic, driven, ambitious,
the transition to a circular economy? tenacious, persistent and takes initiative. The
In order to support the development of circular determined circular economy competency profile is
economy knowledge and skills, the Sustainability especially relevant for HR and sustainability professi-
University Foundation studied the implementati- onals, directors, regulators, educational and training
on of CE in Dutch companies. This study was institutions. By utilizing the profile, they can
completed in collaboration with the competency develop job descriptions, personal development
experts at GITP/PiCompany, among others, and plans, assessments and selection criteria that will
supported by the Goldschmeding Foundation. help stimulate the circular economy.
1 State of the Sustainability Profession (2019) (2020), Sustainability University Foundation
3
Investing in systems thinking and expansion to all processes in a company. This dependency is more
business processes significant with CE than with other sustainable
One of the most important results from the strategies, such as incorporating energy transition
research is that a CE professional must excel at and social responsibility. It is therefore essential for
systems thinking. A systems thinker is able to look the transition to CE that knowledge, skills and
at and make changes to an entire system and competencies related to CE are developed throug-
its parts in a multidisciplinary and circular way. hout all business processes of a company.
However, this competency is relatively new and not
generally covered by educational institutions, the In summary, we have found that systemic change
recruitment and selection process, assessments towards a circular economy requires distinctive
or HR manuals. CE competencies of professionals. These com-
petencies should be recognized and developed.
The research also concludes that the success of This white paper offers tools to help develop these
CE initiatives depends on all the departments and competencies.
CIRCULAR COMPETENCY PROFILE
MANAGEMENT &
FORESIGHT THINKING
ENTREPRENEURSHIP
SYSTEMS THINKING INTERPERSONAL
SKILLS
ETENCIE
C OMP S
Linear Economy Circular Economy
PE
Tenacious RSO ITS Ambitious
N A LI T Y T R A
Driven Flexible
Inquisitive Takes initiative
Persistent Empathetic
Pragmatic
4
INTRODUCTION Currently, 24.5%² of the Dutch economy is to a circular economy is not possible without the circular. The goal is to be fully circular in 2050. impact of established industries. Larger existing This is an ambitious objective. With respect to the companies in particular can greatly accelerate the circular economy, every country in the world is transition by changing their business activities and still developing³. processes from linear to circular. To transition to a fully circular economy, govern- ments, companies and individuals must further Creating change within businesses is dependent develop technology, policy and behavior. As on their employees. To transition to a circular part of the value chain and the ecosystem that business model, companies are dependent on has to realize the circular economy, companies their human capital: the knowledge, skills, compe- play an important role in the transition to a circu- tencies and potential of employees. Employees lar economy. Companies have different reasons need to be able to innovate, implement circular for wanting to do so. In addition to an intrinsic work processes and engage the supply chain. motivation, there may also be commercial rea- Firstly, this applies to the professionals who initiate sons. As is evident from the value creation model and manage the transition within the organiza- (figure 1) inspired by Hart and Milstein, incorpora- tion, such as sustainability managers. But it also ting circularity can create value for shareholders applies to professionals in other fields, such as and stakeholders. This value may be achieved by finance and logistics. focussing on ‘operational excellence’ and a ‘licen- se to operate’. For example, circularity can lead The transition from the current linear way of to the improvement of (existing) products, more working to a circular way of working is complex. efficient production processes that create less Organizations as well as their supply chains have to waste, and a better relationship with stakeholders reorganize their business models, designs, proces- (external parties) who find it important that the ses and methods. In addition to these organizatio- impact on the environment is less negative. Other nal changes, the transition also requires different companies view the circular economy as an opportu- behavior and new methods of collaboration. There nity for the future, with new markets and products. have not yet been many studies within the social These companies are working on a future business sciences to determine what this employee behavior model or are using circularity to drive innovation. should be (see appendix). Knowing what is Whether closing the cycle because of the scarcity effective “circular” behavior is important to selec- of raw materials, (future) regulations or reputatio- ting, assessing, developing and training the right nal damage, there are plenty of commercial rea- people to accelerate the transition to circular busi- sons for companies to get moving. The transition ness models. 2 The Circularity Gap Report The Netherlands (2020), Circle Economy 3 Global Circularity Gap Report (2020), Circle Economy 5
Tomorrow’s opportunity
INNOVATION OF MORE SUSTAINABLE PRODUCTS SUSTAINABLE GROWTH
Sustainability as a (unique) selling point and a driver Co-creating new business based to serve the unmet
for innovation needs of the poor and the underserved
External constituencies
Internal capabilities
SUSTAINABLE
VALUE CREATION
POLLUTION PREVENTION RESPONSIBLE BUSINESS AND PRODUCT STEWARDSHIP
Reduction of costs and risks Improving reputation and legitimacy
Managing today’s business
Figure 1. T
he Sustainable Value Framework by Stuart L. Hart and Mark B. Milstein shows the different ways in
which companies create sustainable value.
In collaboration with the competency experts To answer this question, the research is based
at GITP/PiCompany, among others, and sup- on a solid foundation: the book 7 Roles to Create
ported by the Goldschmeding Foundation, the Sustainable Success⁴ by Carola Wijdoogen, which
Sustainability University Foundation conducted a outlines the seven different roles of sustainability
study into the specific competencies, or behavior, managers, and scientific research by Eghe Osagie 5,6,
required of professionals in order to implement which describes the eight competencies of sustai-
circular solutions at work. Which competencies do nability professionals. In her research, Osagie ex-
people need to be successful at accelerating the plains that all competencies are equally important.
circular economy? However, in the discussion, she acknowledges that
this is likely inaccurate, and that further research
For the study, sustainability professionals in com- is needed.
panies contributing to accelerating the circular The study is a combination of quantitative and
economy were approached. They are the front- qualitative research. The quantitative analysis is
runners, the change agents who launch circu- based on the 2019 and 2020 editions of the online
lar initiatives and have to set a good example. State of the Sustainability Profession Survey⁷, to
Because of their firsthand experience, these CE which respectively 112 and 97 sustainability pro-
professionals understand which competencies fessionals responded, and on a questionnaire sent
are required within a company to be able to im- to 35 predetermined CE professionals. These CE
plement circular processes in their organization professionals were selected based on their suc-
and supply chain. The key question of the study cess at realizing projects or activities necessary for
is: “Which specific roles and competencies do the transition to a circular economy. The qualita-
CE professionals need, in order to make compa- tive analysis is based on conversations held during
nies see the importance of the circular economy four peer-to-peer learning sessions based on case
and to accelerate it?” studies. The 25 CE professionals who participated
4 Wijdoogen, C. (2020). 7 Roles to Create Sustainable Success: A Practical Guide for Sustainability and CSR Professionals.
5 O sagie, E.R.; Wesselink, R.; Blok, V.; Lans, T.; Mulder, M. (2016). Individual competencies for corporate social responsibility: A literature and
practice perspective. Journal of Business Ethics, 135, 233-252
6 O sagie, E.R., Wesselink, R., Blok, V., Mulder, M. (2019). Contextualizing Individual Competencies for Managing the Corporate Social
Responsibility Adaptation Process: The Apparent Influence of the Business Case Logic. Business & Society, Vol. 58.
7 https://sustainabilityuniversity.org/research/
6in these conversations work at companies where
the transition to a circular economy is already A clarification of the terms used in this
in full swing. These include Philips, KPN, NS, white paper:
Tommy Hilfiger, Schiphol, Meerlanden, Interface,
IKEA, ABN AMRO and Arcadis. By asking these Supply chain: network of organizations
professionals which competencies, behavior and and companies that supply products and
elements of their personality they find essential services to, or purchase products and
to achieving successful CE results, it was possible services from, one another. For example,
to establish a competency profile of an effective suppliers or purchasers and their sup-
CE professional. pliers or purchasers.
After giving a brief account of CE in today’s Sustainability professionals: professio-
business world, this white paper will answer the nals who focus on the implementation
research question: which roles and competen- of sustainability within companies and
cies are required for the circular economy? The organizations (frequently including the im-
CE competency profile, which consists of the plementation of CE).
most distinct competencies and personality traits
necessary for CE, is worked out as a definition, CE professionals: professionals (including
visible behavior and development levels. Practical sustainability professionals) who focus on
tips and learning experiences have also been implementing change within companies
added. and organizations, in order to transition
to a circular economy.
Defining a competency profile is the first step.
The next step is using the profile to train, develop, Circular economy: economic system of
recruit and select professionals. This is essential closed loops in which raw materials, com-
to the profile contributing to the acceleration of ponents and products lose as little value
the transition to a circular economy. Parties able as possible, renewable energy sources are
to follow up on this are business professionals and used and systems thinking is at the core 8.
specifically HR and sustainability professionals,
educational institutions, executive and non-execu- Competency: set of behaviors that leads
tive board members. Therefore, a consideration to the intended result when performing
of these roles, combined with recommendations a task within a company or organization.
for follow-up, is covered by this white paper.
8 https://kenniskaarten.hetgroenebrein.nl/kenniskaart-circulaire-economie/is-definitie-circulaire-economie/
7“Circular economy. Two words that shelter an system, such as knowledge institutions, finan- entire world, as evident from this paper by the ciers, NGOs, governments, and competitors. Sustainability University. I fully endorse the Furthermore, the circular economy creates results of this study, in which systems thinking a common interest in preserving the flow of emerges as the most important competency of materials inside the system, either through an CE professionals. Some sustainability strategies, organic or technical life cycle. This also requires such as reducing energy usage and building a other forms of cooperation between these par- more diverse and inclusive workplace, can be ties. This paper provides guidance on the requi- tackled at the organizational level. However, red competencies of CE professionals and how the circular economy inherently demands that those competencies can be put into practice.” changes are made throughout the supply chain. This means collaborating with existing custo- André Nijhof, Professor Sustainable Business mers and suppliers, but also other parties in the and Stewardship, Nyenrode University 8
CIRCULAR ECONOMY
IN COMPANIES AND
BUSINESS PROCESSES
In the first phase of the study, professionals were the circular economy. In addition, changes neces-
asked to which extent their organizations addres- sary for the energy transition can be incorporated
sed various sustainability themes, specifically into an existing, linear organization. Switching to a
climate and energy, circularity, and social res- circular business model, on the other hand, requi-
ponsibility. They indicated in 2019 and 2020, that res changes to all business processes and affects
the circular economy received the least attention collaboration inside and outside the organization.
(figure 2).
At companies that focus more on the circular eco-
This can be partially explained by the fact that the nomy, sustainability - and thus CE - is much more
circular economy is a more recent topic and had integrated into their business processes. This cor-
a less prominent position on the political agenda relation is not as strong with other sustainability
than, for example, the energy transition. As a re- themes, such as climate and energy transition or
sult, there was less political pressure to implement social responsibility.
To what degree does your organization focus/work on the following topics?
Climate and Energy Transition >
Circular Economy >
Social Responsibility >
Not at all Begin to embed Partially To a large extent Fully
Figure 2: S
ustainability professionals indicate that their organizations focus less on the circular economy than on the
energy transition and social responsibility.
9Degree of integration of sustainability in business processes at organizations that have more
or less focus on CE
General management and strategy >
Public affairs >
Marketing and sales >
Product and business development >
Procurement >
Operations >
Facilities >
Logistics >
HR >
Finance >
IT >
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Less focus on CE More focus on CE
Figure 3: C
ompanies that focus more on the circular economy have integrated sustainability to a greater degree
into their business processes
For a company to contribute to the transition to a “The circular economy is unique because it con-
circular economy, CE must be integrated into all nects products to business models. A circular goal
business processes. This is why it is very important cannot be achieved by engineering and product
that, for every business process, investments are design alone; all other disciplines need to be
made in the knowledge and competencies of pro- involved, such as purchasing, finance, marketing
fessionals. These investments should not be limi- and even sales. CE only works if you collaborate.”
ted to the sustainability department: the transition
to a circular economy will not occur if the required Eelco Smit - Senior Director
skills are not present throughout all departments. Sustainability, Philips International
10ROLES AND CIRCULAR
ECONOMY
To implement a circular approach within com-
DESCRIPTION OF THE ROLES
panies, it is important that sustainability is inte-
grated to a great degree. The study shows that, Create and maintain networks around the
1
in order to achieve this, sustainability professio- sustainability field and the organization’s
Networker sustainability program. Representing the
nals must be able to balance 7 roles to integrate Engage company and its program in meetings with
external stakeholders, peers and other parties.
sustainability. The time spent on the different
roles should be evenly distributed. If one or 2 Develop the sustainability strategy and
more roles receives less attention, sustainability Strategist integrate this into the overall strategy of
Lead the organization.
will be less integrated.
3
The same applies to a CE professional: he or she Coordinator
Support people in other departments in the
organization to implement the sustainability
must balance all roles in order to integrate the and Initiator strategy.
Support
circular economy into a company.
4 Act as a sustainability ambassador, inspiring
Stimulator and (outside-in) and activating others to integrate
Connector sustainability goals into tasks, usually without
Challenge formal influence.
1 5 On an individual functional level: advise,
Networker Mentor inform and train colleagues, to enable them
(engage) Empower to achieve the sustainability goals.
7 2
Strategist
Monitor 6 Initiating and guiding innovation processes,
(learn) (lead) so that ideas and innovations can come to life
Innovator and lead to implementation of sustainable
Innovate business models, products and services.
6 Sustainability 3 7
professional Monitor, report and evaluate the progress
Coordinator Monitor of the sustainability goals and the related
Innovator
and Initiator Learn development of the organization.
(innovate)
(support)
5 4
Stimulator and
Mentor Connector
(empower) (challenge)
The study shows that the CE professional, as
opposed to other sustainability professionals,
spends more time on the innovator role than on
other roles. This can be explained by the need for
new circular work processes in the organization
Figure 4: The different roles of a sustainability professional and supply chain.
11COMPETENCIES NEEDED
FOR A CIRCULAR ECONOMY
INTRODUCTION TO COMPETENCIES
In the last fifteen years, it has become more behaviors, lead to the intended result, it is
prevalent within organizations to think and work essential to distinguish these competencies to
in terms of competencies. People can only ensure every position is performed successfully⁹.
deliver the right results if they not only work hard The competency profile is an important starting
enough, but also possess the right competencies point for the selection and development of every
for the job. When competencies, as a set of (potential) circular economy professional.
9 an de Werfhorst, D.J., directeur PiCompany (2017). Coachen op gedrag en resultaat: praktijkgids voor het verzilveren van
V
talent van Nico Smid, voorwoord
12The 8 competencies of a sustainability groups: cognition, functionally, socially and
professional meta-oriented competencies. So far, research
Eghe Osagie, Assistant Professor HR Analytics at into which competencies are required has made
the HAN University of Applied Sciences in no distinction between the various sustainability
Nijmegen, has been researching the competencies themes on which the sustainability professional
of sustainability professionals for several years. focuses. However, it is clear that a distinction is
Eight competencies of sustainability managers needed; the study shows that the transition to a
have emerged from her scientific research 10 circular economy requires a different set of com-
(figure 5). The competencies are divided into four petencies than the other themes.
COGNITION-ORIENTED COMPETENCIES
8 Reflection competency
1 The ability to think in scenarios and to
Foresight anticipate future developments.
7 Value-driven competencies and motivation
thinking
6 CSR-supportive characteristics and attitudes Understanding the interdependency between
2 complex systems and subsystems inside and
Systems outside of the company. Knowledge of that
thinking which needs to be done to change systems.
1 Foresight thinking
2 Systems thinking 3 Ability to understand and deal with
Cognition- Instrumental
3 Instrumental CSR-relevant drivers, values, standards,
oriented understanding
understanding regulations, politics and governance.
competencies
Meta-oriented FUNCTIONALLY ORIENTED COMPETENCIES
competencies
4 Ability to develop a sustainability vision and to
Management & translate this into a sustainability program/plan,
entrepreneur- as well as manage it. Entrepreneurial skills to
The eight ship
competencies of be able to see and realize opportunities.
a sustainability Functionally
professional oriented SOCIALLY ORIENTED COMPETENCIES
competencies
5
Interpersonal Effective social, communicative and
skills networking skills.
Socially
4M
anagement &
oriented
entrepreneurship
competencies
META-ORIENTED COMPETENCIES
6
CSR-supportive Sustainability professionals are ethical,
5 Interpersonal skills characteristics empathetic, patient, persistent, flexible,
and attitudes pragmatic and able to put the interests of
others above their own (ego).
7
Value-driven High intrinsic motivation and consistent in
competencies “what you say” and “what you do”.
and motivation
8
Reflection Ability to challenge your own ideas, habits,
competency and assumptions and to act upon this.
Figure 5: the eight competencies of a CSR manager, from 7 Roles to Create Sustainable Success by Carola Wijdoogen11
10 sagie, E.R.; Wesselink, R.; Blok, V.; Lans, T.; Mulder, M. (2016). Individual competencies for corporate social responsibility:
O
A literature and practice perspective. Journal of Business Ethics, 135, 233-252
11 Wijdoogen, C. (2020). 7 Roles to Create Sustainable Success: A Practical Guide for Sustainability and CSR Professionals.
13From talent to competent to result to impact chologist David McClelland (figure 6). Visible be-
The degree to which someone can master and havior, or competencies, are above the surface.
efficiently deploy the right competencies depends The facets below the surface are not immediately
on their talent, which includes intelligence, perso- visible, but influence behavior.
nality, and motivations. Different people have dif-
ferent talents, and the ability to develop In a nutshell, talent determines behavior and the
competencies is affected by these differences. extent to which behavior can be developed. Talent
A person’s talents are largely fixed, which means comprises one’s cognitive abilities, values and
that not everyone finds it equally easy to learn or characteristics. In addition, knowledge (such as
do certain things. Personality and intelligence in knowledge about the circular economy) and skills
particular limit the extent to which competencies form an integral component of a competency
can be internalized. On the other hand, persona- profile. This component is essential to achieving
lity and intelligence may provide opportunities to intended results.
strengthen other competencies12.
This study specifically focused on the behavior,
In other words: impact is determined by results, personality and values of successful CE professio-
which are determined by competencies, which in nals, which have so far been scarcely studied. An
turn are determined by talent. This is illustrated image was also formed about the developability of
in the following iceberg model by American psy- the competencies.
RESULT
BEHAVIOR
KNOWLEDGE AND SKILLS
TALENT
(intelligence, personality, motives)
Figure 6: Iceberg model by psychologist David McClelland
12 Smid.N. (2017). Coachen op gedrag en resultaat: praktijkgids voor het verzilveren van talent, p10.
14COMPETENCY PROFILE OF A CIRCULAR ECONOMY PROFESSIONAL Analysis of data from questionnaires, interviews to achieve what was previously impossible. In the and peer-to-peer sessions between sustainability study, systems thinking and foresight thinking professionals and CE professionals reveals a con- clearly emerge as the most indispensable and sistent pattern of distinctive competencies. The distinct competencies. Next, the competencies study was conducted among a group of successful interpersonal skills and management & entrepre- CE professionals, each with CE experience and neurship are the most frequently used. The re- often with a pioneering role in organizations. In search shows that, to achieve success, these general, this requires a leader, somebody who can competencies are intertwined and cannot be open doors, create opportunities, initiate projects seen separately. One must constantly switch and get results. The research shows that the pro- between long-term planning and recognizing and fessional’s behavior (competencies) is aimed at creating opportunities, all while being pragmatic realizing change, combined with influencing and and realistic. It is important not just to pursue inspiring stakeholders. This means identifying, business interests, but also know when and how creating and taking advantage of new opportunities to involve others. 15
COMPETENCIES
Systems thinking
Systems thinking peer-to-peer learning
Definition CE professionals visited a colleague at
The ability to understand systems and subsys- another company. Each professional
tems relevant to the circular economy, including brought their own case and they learned
their mutual dependencies. The ability to think the following important lessons from
holistically. one another:
Explanation: visualizing, understanding and analy- ↘ Talk to stakeholders: what is their interest
zing complex dynamic systems and issues, external- in your CE project? Decide who is driving
ly (within the supply chain) and internally (how the the project, who wants this? Consider the
company operates). Overseeing business proces- finances: what is the business model behind
ses and the relationship between them. Knowing your idea and how much do you need to
how systems inside and outside of a company assure someone before they will invest in
work. Knowing what is needed to change systems. your idea?
↘ Consider the issue of ownership: who owns
Behavior what? Realize and take into account the
• Oversees all factors that influence the system. effect your CE project has internally (on all
• Understands the relationship between the the different business processes) and
components of a system and how they influence externally (on the different stakeholders).
one another (feedbackloops). ↘ Realize that changing one component
• Recognizes when cause and effect do not lead affects a different component of the
to a logical and predictable outcome. system: see the whole picture.
• Is able to map the boundaries of a system and ↘ See where there are tensions in the
the interactions between its elements. systems.
• Is able to think and operate from the larger ↘ Be able to weigh up different principles,
whole (system), as well as from independent interests and solutions in order to make a
components (details) within (zoom in and out). decision that suits your goals.
• Is not afraid to act on intuition, especially if ↘ Look for partners who want the same thing
there is no certainty now or in the future. as you do and who want to invest. Create a
• Recognizes the effect of individual actions and network, internally and in the supply chain.
interests on the functioning of the system.
• Demonstrates that he / she is aware of current
societal developments during conversations. “The best circular system is found in nature.
Examines the different interests of stakehol- If you want to run your organization in the same
ders within the supply chain. way as nature, you need to make this system
accessible to everyone in the company. Translate
the lessons from nature to your organization and
involve everyone in your organization and your
supply chain in your goals.”
Geanne van Arkel, Sustainable development
accelerator / former head of sustainable
development at Interface.
16Foresight Thinking
Foresight thinking peer-to-peer learning
Definition CE professionals visited a colleague at
The ability to anticipate (future) CE challenges and another company. Each professional
developments related to the company. brought their own case and they learned
the following important lessons from
Explanation: ability to think critically, ahead and in one another:
scenarios. Bringing the outside in.
↘ Look far ahead: which agreements and
Behavior contracts exist, what can we do when these
• T hinks in concepts, new opportunities and expire?
developments even when there are no specific ↘ Consider the long-term consequences
opportunities for implementation. and long-term impact goals in proposals.
• Makes seemingly impossible long-term goals How can we scale up or make impact in
concrete by creating a step-by-step plan. the future?
• Suggests different solutions to questions and ↘ Always be realistic, make a decision based
scenarios for potential (future) problems. on the present, knowing things can change
• Distances from own practice and views in the future.
situations from multiple angles and from the ↘ Think about whether a decision that is a
perspective of stakeholders good idea in the short term will also have
• Separates himself / herself from everyday the desired effect in the long term.
business. Recognizes that what is not possible ↘ Keep an eye on future internal and external
now, may be possible in the future. plans that might be relevant to CSR challen-
• Identifies developments in the sector, market ges and developments in your company.
or in society and indicates the ways in which ↘ If you are unable to immediately prove the
the department or organization can capitalize results of a CE project, show the risks of the
on them. alternative.
• Looks at the long-term consequences and ↘ Provide insight into which relevant (techno-
long-term impact goals of proposals. logical) developments will exist in the future
• Expresses in which direction he / she thinks and remember that something (e.g. techni-
the department and the organization should cal) that is not yet possible, may be in the
be headed. future.
↘ Hold off on making definitive decisions for
the distant future, but take steps with pilots
and interim evaluations.
17Management & entrepreneurship
Mamanagement & entrepreneurship
peer-to-peer learning
Definition
Managing or leading CE projects and identifying, CE professionals visited a colleague at
prioritizing and realizing CE-related business another company. Each professional
opportunities. brought their own case and they learned
the following important lessons from
Explanation: the ability to develop a CE vision, one another:
translate this into a program or plan and manage
it. Entrepreneurial skills to see and realize oppor- ↘ Make sure you have a good business case.
tunities. The ability to create a business case and This often turns out positive.
know the company well enough to make decisions ↘ Connect stakeholders. Talk until you’re
and reach implementation. Skills related to change blue in the face!
and program management. ↘ Scrutinize suppliers and tell them:
“Prove it!”
↘ Find a partner in crime, you are going
Behavior to need one.
• Identifies possibilities and opportunities in- ↘ Pay attention to leadership in the
stead of obstacles. organization and reward frontrunners:
• Takes action when opportunities present put people inside the organization in the
themselves, stimulates others to step outside spotlight and award the best bidders.
their comfort zone. ↘ Make sure that, in addition to motivating
• Makes clear agreements with others about your employees, you persuade people at
necessary actions (who does what when, being the top. They set an important example
able to delegate). and make the final decision. This also
• Coordinates with all relevant parties when he prevents frustration among ambassadors
or she makes changes to a schedule. in the organization.
• Uses available resources, time and people in ↘ Demonstrate the strategic importance of
such a way that they contribute optimally to CE, for example with a risk analysis. Link it
the intended goals. Takes the time to imple- to business interests. General business
ment things properly. trends are understood by people at the top.
• Is able to see the link between CE initiati- This gives you more leeway to try things.
ves and financial opportunities (commercial Create a sense of urgency.
opportunities) for the organization. ↘ Set concrete goals that you communicate
• Knows how to empower people. Can create internally and externally. In that way, you
appealing visions of the future to impel an can motivate the entire organization.
organization to take the right actions. ↘ Create support. Establish what is possible
• Inspires and motivates others by working with on a small scale (start with a pilot and
energy and enthusiasm. monitor the effect) and scale up afterwards.
“Just start and the rest will follow.”
↘ Do not give up!
18“There is no such thing as waste! At NS, we are be involved. Now, nearly a million train floors well on our way to zero waste by 2030. Currently, are being repurposed in the form of furniture, 99% of our trains are reused. But this is not telephone booths and kitchens. So my belief is: an easy task. 20-year-old train floors were if you can turn 20-year-old train floors, which disposed of as waste. I didn't think this was have traveled 5.7 million kilometers and been right, so I started looking for a new purpose. To trodden on by 44 million feet, into beautiful do this I approached about 200 entrepreneurs. new products, you can't throw anything away as Eventually I ended up with a circular producer waste! Do not give up! Show that it is possible. who could turn a train floor into a table tennis After that, scaling up is (almost) automatic.“ table. Once this table tennis table was built, the ball started rolling. This led to far more Ilse de Vos van Eekeren ideas and more entrepreneurs who wanted to Circular Manager, Dutch Railways (NS) 19
Interpersonal skills Personality traits and motivations
The study reveals the following characteristics or
Explanation personality traits that distinguish a CE professional:
Effective social, communication and networking
skills. Flexible style, knowing how to adapt to the Characteristics and motivations of a CE professional
recipient. Realizing awareness and ownership of CE • Flexible
within others. Coaching and supporting others in • Has perseverance, does not give up, go-
order to integrate CE in their day-to-day work. The getter, goal-oriented
ability to motivate, facilitate and enable cooperation • Anticipates and quickly picks up on stress and
in the field of CE. The ability to identify stakehol- tension in the workplace
ders. Working in multidisciplinary and multicultural • Pragmatic and systematic
alliances while serving the interest of the company • Enterprising
and stakeholders. • Solution-oriented
• Strong networker
Behavior • Pursues future goals
• Knows who is involved or has influence, regar- • Prioritizes greater good above own interests
ding one’s own work or the ongoing project. • Focusses on short term and long term
Recognizes stakeholders. • Driven by relevant issues in society
• Informs involved parties and stakeholders • Sticks to own drive, goal and purpose
about the progress of projects and tasks. • Ambitious
• Involves relevant people when there are new • Inspiring
developments. Links parties inside and out- • Empathetic
side the organization in order to interconnect • Inquisitive and open minded
the various interests.
• Invests in relationships with the people invol- A notable characteristic of CE professionals is the
ved in the work or the project. possession of a certain level of perseverance: the
• Communicates his / her opinion with energy degree to which someone sticks to his / her pro-
and conviction. posals or plans. Perseverance is related to sensing
• Uses logical and understandable arguments to tension and responding effectively (stress resistan-
advance their opinion. ce). After all, perseverance is often important in
• In the event of resistance, switches to inves- situations where resistance and time constraints
tigating the wishes and interests of the other. arise. Ambition and drive speak of the quality re-
• Investigates what the other is sensitive to and quirements of CE professionals, how they achie-
leverages this with his / her arguments. ve their goals and the demands they impose on
their performance. High demands can mean that
CE professionals want or expect to deliver higher
quality work than “average” professionals. Finally,
the study shows that a CE professional can be
sensitive and empathetic, while being inspiring and
showing leadership. It seems that flexible use of
behavior, and thus a broad behavioral repertoire,
is essential to being an effective CE professional.
20DEVELOPABILITY Developability of systems thinking and foresight
thinking
As previously mentioned, desirable behavior is Systems thinking and foresight thinking are cogni-
determined by a person’s talent, their cognitive tive competencies and demand certain concep-
abilities, drive and personality traits. Therefore, tual and cognitive abilities that are difficult to
these aspects are important to determining control. The ability to independently develop ide-
how much a certain behavior, or competency, as or solutions for the longer term, outside daily
can be developed. practice, is an indicator for conceptual qualities.
A competency has different levels of proficiency. If employees have these abilities, it can help to
These levels are revealed by the degree to which teach them to use tools and models developed
the competent behavior is demonstrated. There for their position. These will improve the presen-
are three distinct levels: professional, tactical and tation of their vision and the development of
strategic. These can be described as follows: strategies.
Professional: display effective behavior indepen- In the case of systems thinking, if a CE professio-
dently and on their own initiative. nal has difficulty seeing the connection between
Tactical: encourage effective behavior in systems or overseeing factors that have an impact
others within the workplace, partly on the system or its components, this might be
by setting an example. due to a lack of judgment. However, good judg-
Strategic: inspire effective behavior in others ment does not automatically make it easy to think
inside and outside the entire in systems. Someone’s level of intelligence limits
organization, by creating conditions the complexity of problems they can handle. If a
and setting an example. person is regularly confronted with difficult pro-
blems, it undermines their motivation to conti-
In the following section, the underlying talents of nue. Therefore, awareness of one’s own level of
each competency will be examined to determine intelligence is essential. If a CE professional pos-
the competency’s developability. For each compe- sesses intelligence and good judgment but lacks
tency, several behavior examples and their corres- knowledge about (market) developments in
ponding levels will be given. society or does not have insight into the various
Examples of behavior within different levels of systems thinking:
PROFESSIONAL LEVEL TACTICAL LEVEL STRATEGIC LEVEL
Is able to think and operate from Helps others make connections Directs others within the
the larger whole (system), as well as between the elements that can organization to take into
from independent components influence their own system or other consideration all system-related
(details) within (zoom in and out). systems. aspects in strategic decision
making.
Demonstrates that he / she is Encourages employees / colleagues Translates social, political and
aware of current societal to stay up-to-date on societal economic developments into
developments during developments and to investigate the relevant sustainability policy.
conversations. Examines the various interests of stakeholders
different interests of stakeholders within the supply chain.
within the supply chain.
21interests of parties in the supply chain, it is easier knowledge). It is important to make him / her
to develop systems thinking. Especially if the CE aware of the best sources of information for
professional can translate these interests to his developments in the industry and outside the
daily activities and can experience the impact of organization. It is also important to provide
his role’s activities and decisions on the functio- examples of external influences and their
ning of the system. consequences. If an employee is aware of these
developments but does not translate them to his
Foresight thinking requires commanding a lot of or her own activities, then it is more difficult to
complex information over a longer period of develop the competency.
time. The more intelligent someone is, the easier
this will be. The other facet of this competency is Intelligence (abstract thinking) and persistence
the degree to which the employee is interested (personality) are strong indicators of the ability to
in and up-to-date on the world and developments develop foresight thinking.
around him / her. If an employee lacks know-
ledge of certain developments, this facet of the
competency can still be improved (increase
Examples of behavior within different levels of foresight thinking:
PROFESSIONAL LEVEL TACTICAL LEVEL STRATEGIC LEVEL
Thinks in concepts, new Makes others think of different Associates the organization's
opportunities and developments solutions to questions and sustainability strategies with the
even when there are no specific scenarios for potential (future) organization’s other strategies.
opportunities for implementation. problems. Demonstrates interrelatedness and
dependency.
Distances from his / her own Expresses in which direction he / Develops a new interpretation of
practice and views situations from she thinks the department and the the organization’s goals, based on
multiple angles and from the organization should be headed. developments in CE.
perspective of stakeholders.
22Developability of management & In addition to communication and leadership skills,
entrepreneurship personal style and preference play important roles.
The competency management & entrepreneur- Leadership problems can be caused by inflexibility,
ship refers to the ability to identify and capita- a lack of sensitivity or not listening to people. One
lize on (commercial) opportunities. It requires the one hand, the management & entrepreneurship
awareness (of the market) and the capacity and competency includes facets that are fairly easy to
courage to take initiative. These qualities are develop, such as structured working, planning and
more difficult to develop, because taking initi- coordinating aligning activities. But it also includes
ative and accepting possible risks depend on cognitive aspects that are harder to develop, such
someone’s personality. The same goes for ener- as being able to determine what is important and
gizing and empowering others, which requires setting the right priorities.
empathy, understanding what makes someone
“tick” and the ability to respond skillfully and Strong indicators of the ability to develop manage-
effectively (see interpersonal skills). If a CE ment & entrepreneurship are personality (for
professional has these qualities, but has trouble example: mainly sees solutions, takes charge,
acting on them, tools and training can help. In works in a structured manner) and intelligence
general, management skills can be improved. (oversees and prioritizes).
Examples of behavior within different levels of management & entrepreneurship:
PROFESSIONAL LEVEL TACTICAL LEVEL STRATEGIC LEVEL
Is able to see the link between CE Proactively asks colleagues and Makes decisions that lead the
initiatives and financial employees to present innovative company to strongly deviate from
opportunities (commercial ideas that can improve and expand or change its course.
opportunities) for the organization. activities, products or services.
Makes clear agreements with Coordinates the actions and plans At crucial moments, sets the right
others about necessary actions of different CE projects or activities priorities in situations or projects
(who does what when, being able to within the organization. that have a big (strategic) impact.
delegate).
Developability of interpersonal skills behavior on others, understanding the impor-
The competency interpersonal skills is strong- tance of one’s behavior and being willing to
ly correlated with personality traits (empathy, change it if necessary. If someone is capable
directness, a genuine interest in others) that of these things - and receives time, guidance
are harder to develop. However, the compe- and attention - it will be easier to develop this
tency also involves realizing the effect of one’s competency.
23Possible reasons to focus on interpersonal skills: It may help a CE professional to understand how
• inability to think of alternative solutions or ap- he / she can look for different approaches and
proaches when met with resistance or some- deploy / communicate these with the right tone
one else’s emotions; to achieve a goal.
• inability to anticipate others’ reactions, not
sensitive enough; Personality (extraversion, sensitivity, the ability
• inability to properly survey the situation and to adjust) and motives (connecting people) are
therefore sticking to a specific approach, in- strong indicators of the ability to develop inter-
sufficient problem analysis; personal skills.
• no insight into, or unable to recognize, project’s
participants / stakeholders, not understanding
the behavior of groups and organizations;
Examples of behavior within different levels of interpersonal skills:
PROFESSIONAL LEVEL TACTICAL LEVEL STRATEGIC LEVEL
Knows who is involved or has Supports employees / colleagues Connects parties inside and
influence, regarding their own when identifying, informing, outside the organization to make
work or the ongoing project. involving or consulting stakeholders relevant connections between
Recognizes stakeholders. in projects. different interests. Involves parties
when strategic decisions have to
be made.
Uses logical and understandable Has several arguments ready Communicates strategic points of
arguments to advance their for when he/she is confronted by view such that they are accepted
opinion. those with a different opinion / throughout all levels and
point of view. departments of the organization.
Development through reflection Behavior examples:
The CE profession is a young and rapidly deve- • Asks people for feedback on his / her perfor-
loping line of business. As a whole, the transition mance and relevant parties for feedback on
to a circular economy is a development that con- the organization’s performance.
tains a lot of trial and error, which requires the • Gives negative and positive feedback on
ability to learn from one’s successes and mista- someone’s performance.
kes. Therefore, every CE professional must regu- • Asks in time for help.
larly evaluate his / her behavior and the behavior • Signs up for projects or activities where he /
of the organization to determine what should be she can gain new experiences that will impro-
done differently in the future. Reflection is an im- ve his / her knowledge, skills and behavior.
portant competency for every professional who • Works according to a clear plan with a clear
wants to create change. As such, this competen- timeline to improve performance.
cy is not distinctive to CE professionals, but is • When receiving feedback, asks for specific
relevant for them to be successful. suggestions in order to (further) improve
performance.
24A BETTER LOOK AT THE COMPETENCY SYSTEMS THINKING Systems thinking is considered the most impor- “We learn to zoom in but forget to zoom out. tant competency for accelerating the transition Even though it is essential to seeing the to a circular economy. It is described as one whole picture and expanding the pool of of the most crucial disciplines within a learning solutions. Only then can a solution be a real organization13 and is seen as essential to finding solution, and not something that will just solutions to personal, organizational and world create new problems.“ problems14. Systems thinking is nevertheless not generally covered by courses, recruitment & Geanne van Arkel, selection, assessments or HR manuals. As a result, Sustainable Development Accelerator / Former the study’s respondents offered a lot of different Head of Sustainable Development Interface. interpretations of systems thinking. Therefore, this complex and abstract competency is ex- plained briefly below. 13 Senge, Peter (1990). The Fifth Discipline: The Art and Practice of the Learning Organization 14 Meadows, Donella H. (2008). Thinking in Systems: A Primer 25
Systems thinking is primarily a way of looking at In the context of an organization, systems thinking
reality. We are used to dividing our complex world means a way of working at all levels. The degree
into pieces and then studying them separately15. As of proficiency of this competency differs at the
a result, we learn more and more about parts of operational, tactical and strategic level. This be-
the world, but we find it harder to view the functi- gins with realizing that one is part of a system,
oning of the world as a coherent whole. After all, seeing relationships with one's own activities, and
the problems we encounter are becoming more ultimately being able to change the system. It also
complex and, in many cases, can no longer be requires a different leadership style. There is a
solved by one person or one specialism16. Systems limit to the amount of control one can have over
thinking is “the ability to see and understand re- a system. In addition to governing based on sys-
lationships in dynamic systems”. By thinking this tem analysis, a manager must be able to deal with
way, we alternately zoom in and out, so that we chaos. This means keeping an eye on what exits, is
can see the overall picture as well as the details13. absent from or deviates from the system and what
kind of intervention this necessitates.
A systems thinker has the focus to see interre-
lationships instead of separate phenomena, to “As a systems thinker, I often experience that
see patterns of change instead of snapshots, and my tendency to talk about complexity makes
to see the difference between a problem and a people uncomfortable. I think this is because it
symptom. The concept of feedback is essential seems to obscure essentials and side issues. What
and shows how actions can reinforce or suppress makes someone an excellent systems thinker,
each other. From the perspective of systems thin- in my view, is someone who is terrific at descri-
king, every action is both a cause and a conse- bing why a particular scope was chosen within a
quence of other actions13. To map this, systems large, gray, complex system with many unknown
thinkers use, for example, the tool "system map- factors. In my experience, systems thinking is
ping" in the form of relationship circles, causal particularly useful when complexity can be
diagrams, behavioral pattern graphs and the ice- constructively incorporated into the process.”
berg model17.
Dr. Milan Teunissen van Manen,
By doing so, systems thinking brings structure to tropical paleoecologist and columnist
the understanding that everything in the world
is interconnected. It offers a holistic perspective
in which we humans are part of nature. Systems
thinkers can be found in professions such as eco-
logy, organizational science and sociology18. As
small children we still have this ability but seem
to unlearn it as we grow older16. It is up to the CE
professional to make it his / her own again.
15 https://www.natuurlijkleren.org/Data/cms_uploads/files/source/artikelen/artikel-syteemdenkenconf.pdf
16 Jutten, Jan (2015). Systeemdenken in de school van de 21e eeuw. Article via wij-leren.nl
17 Leyla Acaroglu (2017). Tools for Systems Thinkers: The 6 Fundamental Concepts of Systems Thinking. Article via medium.com
18 https://en.wikipedia.org/wiki/List_of_systems_scientists
26CONSIDERATIONS
The distinctive competency profile for a CE pro- The role of sustainability professionals in
fessional will be validated if employees in com- companies
panies possess these competencies (more and Often, a company appoints a sustainability pro-
more) and are selected because of them. Basically, fessional, in the role of CSR or sustainability
whether anyone, in any department, can become manager, who takes the lead in setting the agenda,
a CE professional. There are several stakeholders driving and implementing the sustainable tran-
with a role to play: sustainability professionals, sition - including the transition to CE. Firstly, it
their colleagues in different departments (specifi- is important that this professional has the right
cally the HR department), directors, supervisors, competencies. In the study, they were asked to
and training and educational institutions. In this do a self-assessment to determine the presence
section of the white paper, their role is briefly of CE competencies. More than three quarters
discussed on the basis of the questions: what, in of this group indicate that they possess these
the view of the researchers, must this stakeholder competencies.
do; what is the status quo; how can the transition
to CE be accelerated? CE can only succeed if it is integrated in all
processes, from strategy and finance to procure-
ment, marketing and operations. If that does not
happen, CE will remain at project level. The
Executive and
sustainability professional must make every
non-executive effort to integrate CE into all of the company’s
board members
processes and its supply chain.
Secondly, it is important that other professionals
acquire CE knowledge and competencies. With
this CE competency profile, a sustainability
Training and Sustainability Other business
educational professionals in
professional can create awareness among other
professionals
institutions companies professionals in his / her company and draw
attention to the recruitment and development
of these competencies. Colleagues in HR can
be allies. The sustainability professional will be
HR professionals helped if he / she has access to instruments, such
in companies
as assessments or competency tests, with which
to measure the degree of CE competencies
in the company, department or individual.
Furthermore, he / she should have checklists
Figure 7: Validity model: stakeholders that can add value to per business process to be able to transfer CE
the circular competency profile knowledge and skills.
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