This post on transitions is based on a Dutch article posted on the Change Inc. platform and a lively conversation between Nicolas Chevrollier and Marjolein Baghuis.

From the energy transition to the protein transition, we are in the middle of the shift toward a more sustainable world. This calls for a new type of leadership, according to Nicolas Chevrollier: “Many companies suffer from tunnel vision. To truly innovate, leaders need to broaden their perspective.”

In the transition to a sustainable world, companies play a major role. Although they are just one of many players, emphasizes Nicolas Chevrollier, associate professor at Nyenrode, “You’re dealing with many other parties, such as governments and financial institutions. It’s a large and complex playing field, and organizations can only bring about change in collaboration with others.”

Zooming in and out for sustainable transitions

However, most managers and directors are primarily focused on their own business operations, Chevrollier notices. “Participants in Nyenrode programs often talk about my company, my company, and my company. It’s a kind of tunnel vision, and that’s a shame. To truly change, leaders need to broaden their perspective.”

According to Chevrollier, systems thinking is the answer. “It’s a skill we need much more of. For leaders, it’s not easy: they prefer working with concrete plans they can implement. Within their organization where they have control, sooner rather than later. Systems thinking requires zooming out and looking at the bigger picture: the entire sector or value chain. The focus shifts from a specific organization to many more parties and levels of operation.”

Marjolein Baghuis also advocates for systems thinking. “When you see the whole system, the scope of a certain task becomes clear. It becomes evident that one company cannot do it alone. The realization that collaborating – with competitors, NGOs, and knowledge institutions is necessary – then comes naturally. Within companies, this requires a certain level of vulnerability and humility. It’s a different attitude than projecting that you know it all and don’t need anyone.”

Raw Materials from China

Many leaders are used to competition. Chevrollier argues that companies might be better off if they collaborate, as seen with the energy transition. “The majority of the necessary materials come from China. For small entrepreneurs and large companies, it could make sense to set up a cooperative and collectively source those raw materials from China. You’d be buying in bulk, probably at a better price. But such a collaboration rarely happens. Every company buys separately. Competitive drive often outweighs the desire to cooperate. In some areas, that’s fine. Yet in some situations, it’s wiser to seek collaboration.”

Tony’s Chocolonely

Tony’s Chocolonely, a company Baghuis has worked with extensively, developed a different approach. “For years, they have been working on chocolate without exploitation, on their own way of sourcing cocoa. Where they once competed with other chocolate makers, they now share their approach in the hope that more parties in the market will adopt the same sourcing principles. Through Tony’s Open Chain, they share information with other companies. The goal is to improve the entire chocolate industry. It’s taking time, but the beginning is there. For example, Albert Heijn now works through Tony’s Open Chain for all its private-label chocolate products.”

Personal Drive

Why do some organizations contribute to sustainability transitions much faster than others? According to Baghuis and Chevrollier, the leaders have a crucial role. Chevrollier: “Personal drive is often underestimated. In management programs, the focus is on business models and strategies, on analytical development. But real change doesn’t just happen in the head. It starts from the heart, from emotions and motivations. And then towards an individual agency”

Baghuis agrees. “Personal development is often overlooked, yet it can be such an important driver. I’ve seen this in a small tech company. The CEO and majority shareholder was deeply moved by a book his sister gave him, Doughnut Economics by Kate Raworth. It triggered a profound change. After reading that book, he could never look at his company the same way again. He wanted to do things differently and bring the management team along. When leaders are moved, that can be a driving force for change.”

“A book can definitely spark strong motivations,” says Chevrollier. “Another way is by witnessing things. In 2024, I took 25 corporate leaders to Chamonix in the Alps. There, in the mountains, we watched a melting glacier. The impact of climate change became very concrete. That image then stays with you and you bring it back into the classroom. The attitude of leaders changed profoundly.”

Urgency Drives Collaboration in Transitions

Long-term agreements and contracts can slow down sustainability efforts, says Chevrollier. “Sometimes contracts run for years. Companies are not flexible and are almost trapped in a system. Large organizations often change slowly. That’s usually not due to fear, but out of habit.”

“Until the system breaks down,” says Baghuis. “You see this now with the electrification of energy-intensive companies. In many places, it’s difficult to ensure access to sufficient electrical power. Suddenly, collaboration starts, between neighbors in an industrial zone. In port areas and industrial zones, they’re figuring out how to better set up the power supply, so access suddenly becomes possible. The urgency outweighs the fear.”

“In that sense, a crisis can be a good catalyst,” continues Chevrollier. “It can speed up change. When the war in Ukraine began, energy prices shot up. We felt it in our wallets and took action. Companies can use such a situation, and the right allies can help.”

Combine Systems Thinking with Personal Mission

Chevrollier and Baghuis agree: systems thinking can help leaders drive sustainable change. The same applies at the personal level. Consequently, the acceleration of sustainability transitions is both highly systemic and deeply personal. “Leaders need to rise to the system level and also look inward to their own personal drivers,” summarizes Baghuis. “Both must be added to the classic leadership focus on the company.”

Systems thinking is often easier for participants than looking inward at the personal level, she observes. “During a program, everyone loves analyzing the system and figuring out at which transition stage their sector is. But when I send the group for a walk around Nyenrode’s estate to think about their personal mission and why they do what they do, most people find that awkward. They don’t expect to walk in silence at a business university and work on this personal level.”

Chevrollier recognizes this. “When I went to the Alps with that executive team, there was initially a sense of discomfort. It felt unsafe and not something a business group should be doing. Three days later, they didn’t want to leave the mountain because the participants found the experience and the conversations so valuable. People in management are constantly trained in analytical thinking, often within the scope of the company. For transitions, we have to unlearn that singular focus on the company level.”

Read more on the Nyenrode website about Nyenrode’s education and development programs around sustainability, systems thinking, and personal conviction.

Interested to read more about sustainability transitions? Check out:

• Radical Business Perspectives for Sustainable Transitions curated by Nicolas Chevrollier, Associate Professor, Aikaterini Argyrou, Associate Professor and Ronald Jeurissen, Professor of Business Ethics, Nyenrode Business University
• Changing the Game curated by Lucas Simons and André Nijhof, including a chapter co-authored by Marjolein Baghuis