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24/06/2013
Employing
a transition management approach
Leen Gorissen, Saskia Manshoven & Karl Vrancken
IST 2013
to discover...
24/06/2013 2
© 2013, VITO NV
Intro
24/06/2013 3
© 2013, VITO NV
The Organisation
» Recycling centers in Belgium represent a social enterprise that recycles
d...
24/06/2013 4
© 2013, VITO NV
The Quest
» What is the new role for the social enterprise ‘Recycling Shops’ in a region
aimi...
24/06/2013 5
© 2013, VITO NV
Methods
24/06/2013 6
© 2013, VITO NV
The Approach
» The involved research team used the transition management framework
as inspira...
24/06/2013 7
© 2013, VITO NV
The TM Approach
» Process guided by a ‘transition-team’ that co-designs and feeds in relevant...
24/06/2013 8
© 2013, VITO NV
The Activities
Internal group Transition arena
Meetings (ranged from 3 to 8 hours):
- (1) Bus...
24/06/2013 9
© 2013, VITO NV
Results
24/06/2013 10
© 2013, VITO NV
In the future, the recycling centers of the province of Limburg are anchored into the
local ...
24/06/2013 11
© 2013, VITO NV
Material Match Maker
Closing material and resource cycles requires
labour and coordination. ...
24/06/2013 12
© 2013, VITO NV
» Towards a concept note and internal engagement declaration
The internal group translated t...
24/06/2013 13
© 2013, VITO NV
Conclusions
24/06/2013 14
© 2013, VITO NV
Is the transition management framework a workable approach to discover a
new role for the so...
24/06/2013 15
© 2013, VITO NV
Is the transition management framework a workable approach to discover a
new role for the so...
24/06/2013 16
© 2013, VITO NV
Did the TM approach contribute to the development of new business
models for the social ente...
24/06/2013 17
© 2013, VITO NV
Did the TM approach contribute to transformative and constitutive power?
» The delivered obj...
24/06/2013 18
© 2013, VITO NV
Did the TM approach contribute to transformative and constitutive power?
E.g. new funding op...
24/06/2013 19
© 2013, VITO NV
Did the TM approach contribute to transformative and constitutive power?
» The examples illu...
24/06/2013 20
© 2013, VITO NV
Questions?
Something old, something almost new,
something borrowed, something to redo.
Saves...
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Transforming business models by the use of a transition management approach

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Employing a transition management approach to discover a new role for the social enterprise ‘Recycling Shops’ in a region aiming at climate neutrality

  1. 1. 24/06/2013 Employing a transition management approach Leen Gorissen, Saskia Manshoven & Karl Vrancken IST 2013 to discover a new role for the social enterprise ‘Recycling Shops’ in a region aiming at climate neutrality
  2. 2. 24/06/2013 2 © 2013, VITO NV Intro
  3. 3. 24/06/2013 3 © 2013, VITO NV The Organisation » Recycling centers in Belgium represent a social enterprise that recycles donated goods for reuse and sells these at local recycling shops (eg thrift shops). At the core of the activities of the recycling centers lies sustainability: they employ disadvantaged personnel (people), they recycle and repair used goods (planet) and they sell second hand goods at low prices (profit).
  4. 4. 24/06/2013 4 © 2013, VITO NV The Quest » What is the new role for the social enterprise ‘Recycling Shops’ in a region aiming at climate neutrality ? » Business model under pressure “Dependent on the goodwill of policy makers” “Increasing competition for key resources” “Dependent on subsidies” “Tension between product reuse and material recycling” “Vulnerable to political changes” “Not resilient, not adaptable to changing dynamics” Interview Quotes
  5. 5. 24/06/2013 5 © 2013, VITO NV Methods
  6. 6. 24/06/2013 6 © 2013, VITO NV The Approach » The involved research team used the transition management framework as inspiration to guide the process of discovering the recycling shop’s new future role in a region aiming at climate neutrality.
  7. 7. 24/06/2013 7 © 2013, VITO NV The TM Approach » Process guided by a ‘transition-team’ that co-designs and feeds in relevant information to the local transition ‘arena’. » The arena is the actual initial incubator of change: » empowerment of niche-actors by creating ‘space’ to exert innovative power » connecting niche-actors to each other so that they can form a broader and stronger network, a ‘niche-regime’ that can exercise transformative power » connecting niche-actors to regime-actors that can exercise constitutive power to establish a new distribution of resources at a structural level and anchor the new roles and collaborations at the regime level. » The arena is well balanced in terms of innovative niche players and change-inclined, open-minded regime players. » Aims to develop a new discourse with higher ambition level, a reform agenda inspired by systemic thinking, a shared language, new networks/coalitions, shared transition experiments, returned trust
  8. 8. 24/06/2013 8 © 2013, VITO NV The Activities Internal group Transition arena Meetings (ranged from 3 to 8 hours): - (1) Business Canvas exercise To envision the future business model and review the current businessmodel (strengths, weaknesses, risks and opportunities) - (5) Synthesising of results and feedback on arena results and transition approach To stimulate an internal dialogue and prepare a concept note for the new management agreement and an internal engagement declaration to formalize the shared strategy; to synthesise the new vision and strategy in an attractive brochure for communication - (6) Conceptnote and engagement declaration To further discuss different views and perspectives; to finalize the conceptnote and sign the engagement declaration Workshops (ranged from 3.5 to 4 hours): - (2) System analysis To explore the system (actors and factors) and learn about niche innovations and landscape trends; to learn about perceptions of threats and opportunities - (3) Envisioning To reflect upon values and principles; to develop a narrative on a desirable future state that can give direction to short/medium term action - (4) Transition pathways To translate the vision into future-oriented plans; to identify trend breaks/shifts that are required to realize the vision; to identify breakthrough experiments in function of the required shifts/realization of the new roles Internal group + Intermunicipal waste company Meetings: - (7) Exchanging visions To exchange the vision of the recycling shop and of the intermunicipal waste company; to identify points of synergie and points of divergence; to stimulate anchorage of the new vision in the regime - (8) Towards a new management agreement between the recycling shops and the intermunicipal waste company To discuss how a new role for the cycle shops can be translated into the new management agreement; to discuss a mutual transition experiment PhaseI: Vision&Pathways PhaseII: Anchoring
  9. 9. 24/06/2013 9 © 2013, VITO NV Results
  10. 10. 24/06/2013 10 © 2013, VITO NV In the future, the recycling centers of the province of Limburg are anchored into the local communities and create substantial shared value in terms of the community feeling and fabric. They root into the local couleur locale by embracing the motto ‘think global, act local’. The recycling centers are an important engine for innovation and entrepreneurship in the creative and circular economy. Thanks to new business models focusing on shared value creation and handicrafts, more meaningful employment is created for people from marginalized groups. The centers make both money and talent work - but differently than in the past. This way, the social cohesion is strengthened while people from marginalized groups are empowered to deliver an acknowledged and meaningful contribution to society. Happiness and talent are the keystones on which the recycling centers' business model builds. The centers initiate and exploit new collaborations focused on closing cycles and they provide tailor-made high quality products and services. The recycling centers have a positive environmental impact: through their activities the environmental quality is enhanced instead of deteriorated. To achieve this, new ways have been developed to work in harmony with the environment, family and community life. Through their focus on simplicity, legitimacy, resilience and slow rhythms/patterns, the centers renew the attention for craftsmanship and quality. The centers will ‘de-care’ the customers which means that they will provide coherent services that aim to make sustainable choices easy. In their multi- perspectif ambition, improvement of quality of life of the people in their local communities is central. The centers are connected by a shared and supported vision that avoids monocultures and embraces diversity. Results Phase I: The Vision The recycling centers of Limburg round the circle and co-create an inclusive and circular economy
  11. 11. 24/06/2013 11 © 2013, VITO NV Material Match Maker Closing material and resource cycles requires labour and coordination. The centers can use their expertise on collection, sorting and dismantling to enhance circularity and explore new pathways of higher shared and added value. Service Match Maker Making sustainable choices easy requires an extension of the service portfolio towards customers. The centres can use their expertise on repairment, refurbishment and restoring to enhance product life cycles and promote and preserve these ‘forgotten’ skills. Because of their local anchorage, they can also unfold, organize and promote product-service systems to reduce material consumerism. Results Phase I: The Pathways
  12. 12. 24/06/2013 12 © 2013, VITO NV » Towards a concept note and internal engagement declaration The internal group translated their ambition into an internal engagement declaration that commits the five non-profit organisations to the future vision. -> even though there is shared support for the vision, there are different views when it comes to short term action » The vision from the intermunicipal waste company (IWC) It was striking to note that the vision formulated by the intermunicipal waste company was very similar to the vision that had been developed in the arena session. -> co-creation in arena did result in ‘ownership’ of the vision » Towards a new management agreement with the IWC The NMA currently being drawn up will allow experimentation and reorientation of the recycling centers’ future role while at the same time offering stability in current practices. A first joint breakthrough experiment is being set up. -> towards a more synergistic relationship between recycling centers and IWC Results Phase II: Anchorage
  13. 13. 24/06/2013 13 © 2013, VITO NV Conclusions
  14. 14. 24/06/2013 14 © 2013, VITO NV Is the transition management framework a workable approach to discover a new role for the social enterprise ‘recycling shops’ in a region aiming at climate neutrality and did it deliver the objectives? Research Question I » promoted systemic thinking by thinking about the bigger picture; » the formulation of a new discourse with a higher ambition level; » development of new business model concepts that fit in an envisioned future society that functions within the boundaries of significantly different material management principles » initiation of a more synergistic collaboration with the local intermunicipal waste company » first seeds of anchorage in regime through the new business management agreement allowing experimentation and reorientation of the recycling centers’ future role » joint steps wit IWC in setting up breakthrough experiment(s); » dispersion of new ideas and concepts into new and relevant networks (i- cleantech antenna Limburg, umbrella organisation KOMOSIE) Y E S
  15. 15. 24/06/2013 15 © 2013, VITO NV Is the transition management framework a workable approach to discover a new role for the social enterprise ‘recycling shops’ in a region aiming at climate neutrality and did it deliver the objectives? Research Question I » no shared sense of urgency and no collective motivation to develop the new future role between the five centers jointly; » no shared trust and confidence between the five directors; » no joint strategy across the five centers; N o » Several aspects have contributed to this : (1) the fact that not all the directors were congruent to the ‘frontrunner’ profile that is the preferred profile in transition arena settings due to restrictions in the assignment; (2) the diversity in starting points/short term focus between the centers; (3) the thereby related diversity in perceived sense of urgency; and (4) the different views on the need for transparency between centers. » In fact, our empirical example shows that frontrunner profiles are critical to prompt action and that early involvement of non frontrunner profiles actually complicates and decelerates progress.
  16. 16. 24/06/2013 16 © 2013, VITO NV Did the TM approach contribute to the development of new business models for the social enterprise ‘recycling shops’? » The TM approach did contribute to the development of new business model concepts (material match maker and service match maker) that fit in an envisioned future society that functions within the boundaries of significantly different material management principles. » The identified concepts are all inspired by closed lean cycles of materials and/or products thus fit the concept of the circular economy. » Some of the emerged concepts are being investigated for their business potential and new collaborations around these concepts are being explored at this very moment. Research Question II Call from i-Cleantech Flanders to fund feasibility studies for new business cases in Limburg: • 2 recycling centers and IWC formed a consortium and IWC will co-fund half of the budget.
  17. 17. 24/06/2013 17 © 2013, VITO NV Did the TM approach contribute to transformative and constitutive power? » The delivered objectives clearly show that a niche-regime interaction has unfolded to both enable transformative and constitutive power » In the new management agreement : • an opening is created for a more synergetic collaboration between both organizations; • an addendum is inserted that will enable joint new experiments focusing on (1) new ways to deal with resources /new resource distribution options that favour more effective product reuse or upcycling and on (2) new roles for recycling centers that can be developed. » The ideas have dispersed into new and influential networks that » (1) can upscale the ideas from the province of Limburg to the whole of Flanders (e.g. the umbrella organization KOMOSIE that represents all the recycling centers named ‘kringloopwinkels’ in Flanders) » (2) can provide funding opportunities (e.g. the policy group of the i-Cleantech Antenna Limburg); Research Question III
  18. 18. 24/06/2013 18 © 2013, VITO NV Did the TM approach contribute to transformative and constitutive power? E.g. new funding opportunities: » New business model concepts of ‘material match maker’ and ‘service match maker’ have been picked up by the policy group I-Cleantech Limburg, that will fund feasibility studies for the most promising business ideas. » This policy group is comprised of many influential members (eg Governor of Limburg, a representative of the Ministry of Innovation, several CEO’s and general managers…). Research Question III
  19. 19. 24/06/2013 19 © 2013, VITO NV Did the TM approach contribute to transformative and constitutive power? » The examples illustrate that the TM approach fueled niche-regime development that can probably lead to up scaling of the formulated new activities and roles from the province to the wider Flanders region » The interaction with regime actors resulted in first explorations around transformations of current resource distribution » A shift in resource distribution in the new management agreement with IWC » Proposal for joint transition experiment, co-funded (50%) by the IWC » If proposal gets granted; they managed to successfully redirect innovation funds towards new business models concepts concerning the circular economy » The new management agreement opens the door for a more synergetic relationship between the recycling centers and the IWC » Transitionizing the regime or Lock-in? » Time will tell… Research Question III
  20. 20. 24/06/2013 20 © 2013, VITO NV Questions? Something old, something almost new, something borrowed, something to redo. Saves more euros in your shoe. Leen.gorissen@vito.be

Transforming business models by the use of a transition management approach

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