From Disruption to Strategy: Why real change demands systems thinking and local relevance

25 June 2025 - The world is eager for fast fixes to global sustainability challenges.  It is critical that business is part of the solutions, which must be anchored in a deeper understanding of both broader systems and the local contexts in which companies operate.  We need to build the knowledge and leadership skills to make this possible, writes Bruce Haase, Senior Associate, Cambridge Institute for Sustainable Leadership.

“For every complex problem there is an answer that is clear, simple, and wrong”

H.L. Menken

It can be hard to know where to start when developing a sustainable business strategy. The information, issues, standards, financial trade-offs and competing priorities can be overwhelming.  This is further exacerbated by the Brittle, Anxious, Non-Linear and Incomprehensible (BANI) times in which we find ourselves. It is unsurprising that the first reaction in this situation may be to focus on what seem to be the simplest solutions. These may be easier to implement, but there is a real risk that they don’t deliver lasting and meaningful outcomes. An effective strategy demands a wider lens – one that embeds sustainability solutions in a company's business model and the broader context in which it operates.

Zooming out: Understand the systems

Although it may feel counterintuitive when overwhelmed, broadening our perspective is essential for finding effective sustainability solutions. Systems thinking enables us to see how our businesses – and the challenges they face – interconnect with society and the environment. Recognising these relationships enables solutions that support long-term outcomes and organisational resilience.

Consider the example of a company that aims to eliminate child labour from its supply chain.  When labour violations are identified in a specific factory, the simplest solution would be to no longer work with that supplier.  But a systems perspective could reveal that engaging with the supplier may be a better long-term solution.  For example, if an entire village is economically dependent on that factory, closing it could jeopardise livelihoods and threaten the survival of the community – including other systems, such as local education, that depend on that community. The business sustainability landscape is littered with these kinds of unintended consequences; things that initially seem like a good idea but end up being counterproductive. In this case, addressing the problem with a systems view delivers better sustainability results and creates a more stable supply chain.

It’s important to recognise that all businesses exist within and are dependent upon a hierarchy of systems – many of which we don’t often think about.  Businesses in Cape Town came to realise this in 2018, during an extended drought when the city was days away from running out of water.  Banks, software companies and shopping malls suddenly realised how their businesses would struggle to function if their employees were queueing for emergency water trucks rather than being at work.  Toilets that wouldn’t flush, tourists that wouldn’t visit, or civil unrest as people fought for water were just a few challenges these companies might have faced if rain hadn’t arrived just weeks before ‘Day Zero’. 

A business-as-usual response might be stocking up on drinking water for the office. While this could alleviate some short-term impacts, it would not address the systemic issues that lead to taps running dry. This crisis led some companies to take more systemic action, including harvesting rainwater, promoting water-saving measures and lobbying government for better water management systems.  A government-led behaviour change campaign was also credited with reducing daily consumption to 50 litres per person.

Zooming in: See the local context

Systems thinking helps us see the bigger picture but tailoring solutions to the local context is equally essential. Cultural and contextual differences often mean that initiatives that succeed in one market can fail in another. Take the example of a French automaker that wanted to develop the emerging B2B market for its electric vehicles in Amsterdam. The municipality wanted a quieter, cleaner, less crowded and safer environment for its residents while addressing its climate impacts.  For the company leadership, the first step was changing their mindset from producing vehicles to enabling mobility. This helped them see that success in this market was not about competing on price and features, but rather that collaboration would enable a shift to electric mobility with their vehicles being part of a broader mobility system.  It meant engaging with power companies, charging infrastructure providers and IT and shared mobility solution enablers.

In this context, shared goals and collaboration proved more successful than traditional competition. Through these partnerships, the company gained valuable experience and insights for future growth in the nascent electric mobility market.  For the city, it propelled its zero emission zone plans to the next level. 

Sustainability Leadership

Being able to zoom in and out to think your way around complex sustainability challenges is a skill that requires a new kind of leadership to deliver solutions for a lasting positive impact within a business and beyond it. CISL has launched the latest version of its flagship 8-week facilitated online programme, Business Sustainability Management (BSM). Discover more real-world insights into how a systemic approach can unlock powerful opportunities for lasting change, while connecting with fellow changemakers and developing the skills you need to lead in these challenging times.