Positive Impact Blog

Thought provoking insights for change makers

Tag Archives: Leadership


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Mapping Responsible Leadership Competencies to LeadershipImpact in Business Sustainability

Katrin Muff & Thomas Dyllick

Read full article: https://www.mdpi.com/2071-1050/18/2/793

Business decisions increasingly influence societal challenges like climate change, water scarcity, inequality or corruption. As a consequence leadership for sustainability requires competencies that go beyond internal performance and short-term effectiveness. It requires the ability to navigate ambiguity, build trust with diverse stakeholders, manage conflicts of interest, and understand systemic interdependencies. The question is not only how leaders behave, but how their competencies enable organizations to become more capable actors in sustainability transformation.

This article strengthens the bridge between responsible leadership and business sustainability by identifying where leadership can make a difference inside organizations—through specific “impact areas” that enable external contribution. We describe organizations that orient their strategy and value creation toward addressing societal and environmental challenges as Positive Impact Organizations (PIOs). PIOs aim to create products and services that solve relevant problems while maintaining financial viability. They are led by impact leaders: leaders who recognize that contributing to societal problem-solving can be integral to long-term business success and legitimacy.

Conceptual approach

In this article we develop a mapping between a responsible leadership competency model and a developmental sustainability model that share a compatible worldview: sustainability is not only a risk to be managed, but an opportunity to align organizational purpose and value creation with societal needs.

For leadership competencies, many established models explain effectiveness mainly in terms of individual performance, emotional intelligence, or organizational climate. By contrast, the Competency Assessment for Responsible Leadership (CARL) explicitly integrates ethical orientation, stakeholder relations, and systems thinking, and frames leadership in relation to sustainable development. CARL also distinguishes three action domains—knowing, doing, being—which enables competency development to be examined as knowledge bases, visible skills, and underlying value orientations. Here our emphasis is on the doing domain: observable leadership actions that influence organizational change.

For organizational sustainability development, reporting standards, assessment systems, and strategic concepts provide useful classification and benchmarking, but they often lack a developmental logic explaining how organizations progress toward higher levels of societal contribution. The PIO concept addresses this by describing transformation as a shift from an inside-out orientation (reducing negative impacts, managing risks) to an outside-in orientation (societal needs defining strategic priorities, innovation, and accountability).

This alignment supports the introduction of impact leadership: leadership that builds on responsible and sustainable leadership competencies but adds an explicit outcome orientation toward positive societal and environmental contributions via organizational transformation.

The impact cascade: How impact leadership functions

Leaders rarely create societal impact directly. They create it indirectly by shaping the organization that produces it. Their behavior influences governance, incentives, culture, and decision routines. These organizational conditions shape how products are developed, how supply chains operate, how partnerships are formed, and how trade-offs are handled. Only then do outcomes appear in the wider world. We call this the impact cascade.

This shifts sustainability leadership from moral aspiration to practical leverage. The key question becomes: which leadership behaviors strengthen which organizational levers so sustainability becomes part of value creation? Let’s now look at how this impact cascade is internally connected.

Competencies of impact leaders (CARL)

CARL conceptualizes responsible leadership through five competency dimensions:

  1. Ethics and values: integrity and fairness in dilemmas; values-based decision-making.
  2. Self-awareness: reflective practice; adapting communication; learning transparency.
  3. Stakeholder relations: trust-building; dialogue; consensus-oriented engagement across differences.
  4. Change and innovation: challenging the status quo; translating ideas into actionable sustainability change.
  5. Systems thinking: understanding interdependencies; navigating complexity and ambiguity; anticipating consequences.

These competencies matter because sustainability transformation increasingly involves extended value chains and multi-actor ecosystems. Leaders must collaborate beyond organizational boundaries and combine internal execution with external engagement.

Strategic leadership impact areas inside organizations

While sustainability impact is often discussed as external contribution, leadership impact operates first inside organizations. Leaders influence structures and processes that enable the organization to generate credible and scalable external outcomes. We identify five strategic impact areas in which leadership can have direct organizational influence:

  1. Governance alignment: embedding sustainability in decision rules, roles, accountability, incentives, and transparency mechanisms.
  2. Sustainability culture: establishing shared norms and routines that prioritize sustainable solutions, cross-functional collaboration, learning, and long-term orientation.
  3. External validation: integrating stakeholder perspectives into decision-making, supported by credible transparency and responsiveness.
  4. Higher purpose: translating purpose into product and service innovation aligned with societal and environmental challenges.
  5. Transformative sustainability: applying a transformational perspective across all domains—moving beyond incremental improvements toward systemic contribution.

These areas can progress developmentally: from compliance and episodic initiatives toward integrated decision-making, externally oriented priorities, and accountability for measurable outcomes.

Mapping competencies to organizational impact areas

A core contribution of this article is a mapping that connects each leadership competency to the organizational leverage point it most directly strengthens:

  • Ethics and values → Governance alignment. Values-based, fair decision-making builds trust and supports credible accountability structures, decision rights, and transparent performance assessment.
  • Self-awareness → Sustainability culture. Reflective leaders model learning, openness, and adaptive communication, enabling norms and incentives that make sustainability part of daily work.
  • Stakeholder relations → External validation. Trustful collaboration and structured dialogue integrate legitimate external perspectives into decisions, reducing symbolic engagement and strengthening legitimacy.
  • Change and innovation → Higher purpose. The capacity to challenge assumptions and implement solutions translates purpose into tangible offerings, partnerships, and business model evolution.
  • Systems thinking → Transformative sustainability. Systems awareness supports navigation of complexity, helps avoid unintended consequences, and aligns transformation efforts with system-level outcomes.

This mapping is intentionally simplified: competencies overlap, and contextual factors may moderate what leaders can achieve (e.g., organizational culture, sector pressures, geography, life circumstances, and geopolitical conditions). The framework is therefore best seen as a heat map of primary leverage points, not a full causal explanation.

Implications for leadership development and research

By mapping CARL leadership competencies to strategic organizational impact areas drawn from the PIO concept, this framework clarifies how leadership development can connect to concrete mechanisms of sustainability transformation—governance, culture, stakeholder integration, purpose-driven innovation, and transformative systems change.

For educators and leadership development specialists, the mapping enables two complementary approaches:

  • Strength-based focus: leaders can concentrate on the organizational impact area that matches their strongest competency.
  • Developmental scaffolding: leaders can actively develop weaker competencies through targeted learning and support.

Practical development might include ethical deliberation and policy implementation; 360-degree feedback and reflective routines; stakeholder mapping and co-creation workshops; pilot projects and innovation processes; and scenario planning and systems training.


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Leadership vs. Citizenship

Re-defining the word in the 21st century context

Who is a leader in the context of the challenges in the era of the Sustainable Development Goals (SDGs)? Business leaders, government leaders (speak politicians), non-government activist, social entrepreneurs, parents, or maybe all of them? And how do we define if somebody is a leader? Leaders have long been associated with organizational roles they hold; in a company, the CEO may be a leader, but not an accountant, salesman or marketer. But does this assumption still hold true in times where courageous action and responsible behavior is expected from almost anybody at any level of any type or organization, including at home?

Kathy Miller in her recent blog suggests that leadership entails “seeking solutions to wicked problems most always through collaboration with others”. She also reflected on how few true leaders there are on her horizon. Her definition suggests a much larger field of action of a leader than previously considered. When I went to business school in the early nineties, things were still clear. A leader is in charge of managing his company. Period. Ever the Rio Conference on Sustainable Development in 2012, it has become clear that business is expected to deliver far beyond only satisfying internal needs, including those of employees and shareholders. Having included external stakeholders in selected consultation has become a fashion since the start of this decade. And yet, the SDGs introduced in 2015, take the stakeholder engagement perspective even a step further suggesting that business may need to operate far beyond its current set of stakeholders.

I entirely concur with Kathy’s definition of leadership. Even a traditionally defined leader, a person who holds a top position in an organization, is expected today to not only manage her business, but also to engage with players in a growing ecosystem that represents the trillion dollar business opportunities of engaging in solving burning societal and environmental issues. For this, we need to replace the outdated idea that leadership is attached or connected to a specific role or position. Everybody, in every position and role of an organization, no matter how small, needs to embrace the responsibility to seek solutions to the “wicked problems” as Kathy suggested. Is that realistic or even necessary?

At BSL where I work, we see how demanding self-organization is on individual. Self-organization demands a high degree of personal responsibility and emotional independence to allow the organization to thrive. But that is not a realistic expectation. There are many people who for various reasons do much better in an environment where they can rely on emotional support, political support, and a bit of clarification on priorities from somebody better apt at defining these. We have learned the hard way that personal responsibility is not something that can be expected or necessarily developed in a person who is not open to this. We all have effective defensive systems that prevent change and development. Often for good reasons. So what does that mean?

I suggest that the word leader needs to be reinterpreted. Rather than being reserved to those holding a specific role or position, it should be used for those exceptional individuals who have the capacity, energy and competence to build on a high degree of personal responsibility so that they can not only do their day-job but can find synergies between what they do and what can help solve wicked global problems. Such people can be found everywhere, but – and this is a realization I must admit – they cannot be expected everywhere. They are exceptional human beings and I suggest that they fully embrace their responsibility as global citizens and can hence be considered as the 21st century leaders. Such a shift really means that we have come to consider Leadership as engaged Citizenship. And for this, we certainly need to adjust the way we educate such leaders in business and management schools. Or should they be called citizen-schools in future?

 

Photo by Ben White on Unsplash


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50+20 normative leadership model meets behavioural economics

I recently spoke at RECOL Switzerland about our vision for responsible leadership and presented our normative model developed as part of the 50+20 Vision:

Globally responsible leadership is built on a leader’s capacity for reflective awareness and contains three roles in which he acts and makes decisions – entrepreneur, leader and statesman.

Interestingly, my presentation was followed by an in-depth analysis by Gerard Fehr, who together with his Nobel-prize winning brother works on ways to apply behavioural economics to the real world.

He gave examples of their existing research to evaluate if and how our ideal leadership vision is reflected in the current realities of leaders. The discussion that followed couldn’t have been more inspiring: Are we really unable to be empathic? Are sanctions really the only way to maintain employee compliance? Is breaking down of cooperation really the norm and not the exception?

The hand-picked, high calibre audience first experienced their own gaps in their behaviour compared to their intention, through a smart real-time survey game operated by Gerard and his lovely assistant, Katharina Kaiser.

The Human Resources, Sustainability, and Compliance Directors of top Swiss firms contributed to a rich and controversial discussion, about the tension between the somewhat sad, actual state of the elements of responsible leadership and its ideal vision.

In a last segment, as Gerhard and I jointly discussed avenues of action and possibility to move towards the envisaged ideal state, we found insightful new options.

In conclusion, I must say that I was delighted to have been part of such a rich and thought-provoking experience and I hope that normative and quantitative research meet again in such inspiring settings.

Thanks to Joanna Hafenmayer Stefanska & RECOL for having orchestrated such a miraculous event!

Learn more about seeing through the jungle of responsible leadership and other relevant initiatives.


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Otto Scharmer on a Global Action Leadership School (the “u-school”)

Read this inspirational personal account of one of our key thought leaders of today, Otto Scharmer, and how he is finding courage and will within him to drive towards a dream he has had for a long time. More on Otto’s blog.


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Dreaming up the university of the future at the OIKOS Future Lab 2013

90 students from nearly all chapters from around the world met in St Gallen for a two-day session to inquire how to place OIKOS in the future of management education. I was invited as one of a number of thought leaders from around the world to trigger their creative process. What a delightful experience it was!

The other thought leaders were Max Oliva of the HUB Global and Teamlabs, Martin Cadée of The Journey Network and Knowmads, Traian Bruma who created CROS a student-led university in Romania and Rasmus Johnsen teaching philosophy at CBS in Copenhagen. What an amazing assembly of experience and creative vision in the emerging space of the future of management education.

After a first day spent getting together onto the Journey and applying the Impact Canvas, inspired by the Osterwalder Business Model Generation Canvas, to various concrete projects within the OIKOS framework, day two was dedicated to co-creation. OIKOS is the largest sustainability-focused student organization world-wide with chapters on all continents. We facilitated the initial part of the co-creative process of the students which involved painting a picture of the future of the business school in 2 phases.

Phase 1 consisted of a first group of students of drawing together a picture of what such a university could or should look like. Phase 2 consisted of a second team inheriting the drawing and determining what role OIKOS might want to play in such a scenario. The discussions which accompanied the creative painting exercise were both fascinating and revealing. While we typically think that we need to first know what to point, thus starting with a lengthy debate that ends with a few hasty scribbles on a nearly empty page, our first group immediately attempted to visualize each idea they had about the future university on paper without fully understanding what was emerging or what the final picture might be. About half-way through, one part of team 1 who had worked mostly on one side of the drawing explained what they had ended up painting and vice-versa. The team exchanged places and enhanced the designs of their friends. What emerged what a comprehensive picture which shows the future university as an open space embedded in both society and the environment thus showing the larger planetary context, while also showing the journey of an individual student working on his quest (what do I want to do in future) in his own time, working both in the collaborative open space with facilitative professors, business professionals and thought leaders as well as within reflective spaces, moving back and forth between practical experiences in society (hospitals, businesses, etc.), creating their own individual curriculum in the process (see image 1).

Phase 2 started with an immensely grateful new student team who was amazed by the creative piece of art the first team had drawn up for them. Their analysis of the picture opened the debate on what such a future university could be and what role OIKOS might want to play in there. The second team was nearly afraid to destroy the beautiful foundation work of the first team. Again, rather than trying to first finding the solution, they launched in daring to create a huge infinity loop all across the 3 posters indicating that OIKOS could be the connecting enablers supporting the student in her journey from society, the environment and the university and along her individual learning journey. The open space of the university ended up being the crossing over of the two lines which was drawn up into a green heart. The team furthermore highlighted the planetary context the first team had hinted at by filling in a blue background to the entire picture immensely strengthening the message and providing a common space which symbolized the potential of OIKOS as a universal platform of learning (see image 2).

What impressed me most is how effortlessly this creative process went along and how painting thoughts actually helped to develop thinking. We tend to think it works the other way around. We were accompanied by an amazing artist Klaus Elle who provided the visual track (as compared to the sound track) of what was going on. His ability to summarize sessions with one telling image must have seriously inspired us all!


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Give your 67 minutes on Mandela Day

Here is a message I received from The B Team and would like to share with all of you. Let’s celebrate the Nelson Mandela International Day together, wherever you are right now!

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July 18 is known around the globe as Mandela Day – a celebration of the wonderful Nelson Mandela, his tireless struggle for human dignity and his lifelong commitment to pursue the greater good. His compassion, moral courage and vision of selfless leadership have been an inspiration to so many of us.

As people everywhere keep Madiba in their thoughts and prayers these days, The B Team, alongside Virgin Unite, is supporting the Nelson Mandela Centre of Memory in South Africa to honour his extraordinary life and values.

The premise of Mandela Day is a simple one: each and every one of us has the ability to make a positive impact in the lives of others. It doesn’t take much to make every day a Mandela Day: if we were all to give just 67 minutes, one minute for every year of Madiba’s fight for human rights and social justice, we can make a huge difference.

I for my part, will spend 67 minutes on July 18th mentoring a group of young entrepreneurs. But there is so much that we all can do. Visit www.mandeladay.com for further inspiration. You can make your pledge to give your 67 minutes at http://www.pledge4mandeladay.org/.

Of course there are other ways in which you can help. If you wish to make a donation from anywhere in the world, to honour Nelson Mandela’s legacy, please visit: www.virginmoneygiving.com/nelsonmandela.

Alternatively, from UK mobiles, you can also text MANDELA to 70107 to make a £5 donation. If you are in the US, text MANDELA to 20222 and $10 will be added to your mobile phone bill or deducted from your prepaid balance.

All funds donated via text messaging, and all funds collected by Virgin Unite through the website will go directly to the Nelson Mandela Centre of Memory. Inaugurated by Nelson Mandela in 2004, the Centre focuses on three areas of work: the Life and Time of Nelson Mandela, Dialogue for Social Justice and Nelson Mandela International Day. For more information, please visit www.nelsonmandela.org.

Join The B Team and Virgin Unite to support the Nelson Mandela Centre of Memory in honouring this exceptional leader, elder and wonderful human being. Make sure to give your 67 minutes on Mandela Day, or make a donation today.

Enkosi kakhulu! Baie Dankie! Thank you!

Richard Branson
Co-Chair, The B Team


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Designing a university for the new millennium

Here is an inspiring model of desining a university for the new millennium.

The model described here has no silos (i.e. no departments), a circular building,  no faculty ranks, same teaching load for all, no lecturing or professing – only tutoring, classrooms built for roundtable discussions, curriculum setup to promote trans-disciplinary, question-driven and experiential learning etc. etc.

 

Following 35 years on the faculty of Columbia University in New York, more than half of that time as Chair of the Department of Astronomy and Astrophysics, Dr. Helfand developed a deep understanding of the problems of traditional universities. Seizing an opportunity to redesign higher education from scratch, he has served as a Founding Tutor and, since 2008, as President and Vice Chancellor of Quest University Canada. He is also President of the American Astronomical Society, the professional society for astronomers, astrophysicists, planetary scientists and solar physicists in North America.


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An illustration of continuous leadership education: the executive monastery

Executives have different needs at different times. These include traditional executive training in leadership, management or business skills. A relatively under-estimated need is the possibility to retreat from the day-to-day demands and action and to reflect on the past to crystallize lessons learned and critical considerations and adaptations for the future. We call it the Executive Monastery!

The Executive Monastery forms an integral part of the management school of the future. It offers a space to reflect on professional and personal achievements and challenges with the possibility to digest and integrate experiences and to prepare for new challenges. Imagine a place, not unlike a real monastery, a safe and sacred space with archways providing shade for walks and reflection, with emptiness in the middle, often enriched with elements of nature, surrounded by a building that offers amenities (rooms and food) and inspiration (libraries) integrated into the surrounding walls. As such, it welcomes professionals for retreats of a duration of their choice, offering them a powerful and safe space of emptiness that is held for them by a variety of supporting services around them: coaches and facilitators are available when necessary, there are personal development workshops, a library with inspirational material in all current media forms, spaces for silent retreats, as well as common moments of yoga, meditation, sports, singing, working, cooking, eating and sharing in general.

katrin blog 1

katrin blog 2

From top to bottom: Sanahin Monastery, Armenia, Sucevita Monastery, Romania


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Business and management schools must educate leaders in any organization

While business remains a key focus of future management education, we must embrace leaders in any other organization as well. Borders between for-profit and not-for-profit organizations are blurring, the emergence of “social entrepreneurship” is a good example of this. Government and non-government organizations are challenged to become a lot more professional in their strategies and operational implementation.

More to the point, enabling managers and leaders to understand and embrace the idea of serving the Common Good requires an inclusive approach to education, involving stakeholders beyond business to allow dialogues that have not yet taken place. Developing such leaders is a high order and requires a fundamental paradigm shift in the goal of management education: from assuring that graduates know about leadership to ensure that they are being leaders. Awakening and developing the human being in the leader and the leader in the human being becomes the central purpose and starting point of management education.


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How to become a leader?

I have always been fascinated how leaders are “brought forth” by circumstance. Something out of the ordinary occurs – an accident, a coincidence, a conflict, an opportunity – and you see people step up and start doing what needs to be done. Such leaders who hold no formal power or authority express what I believe true leadership is about: the courage to fully engage with all we have – our acquired and dormant skills, competencies, fears and uncertainties – if and when the situation requires it. It may well be that such leadership makes the headlines once in a lifetime only, but I have noticed that there are countless opportunities every day before, during and after work that invite us to practice this kind of leadership that I call “personal responsibility”. This makes all of us potential leaders.

Imagine if each of us would dare to engage fully if and when the situation requires it! Daring to make a mistake, to shake things up and maybe to step on some toes; not to show off or to manipulate, but simply because you know what is required to happen and, since you are there, it is up to you to step up. And this is where it gets interesting: how do you know what to do, how to be and whether to engage in a situation or not?

Is it indeed possible to learn such kind of a enlightened courage? I believe, you can! You can learn to be connected to your inner quiet voice, you can learn to sense what is right and what feels wrong, you can learn to differentiate between your own subconscious autopiloted fear mechanisms and your true values-based intuition, you can learn to find that voice and speak up. Such learning resembles more of a journey than a 3-day executive course. It requires practice and reflection.

It is possible to create powerful and safe learning environments to develop not only your courage to step up but to develop your full potential so that you can engage with a maximum of resources that you have. And if we as business schools were doing what is required of us right now, this is – in my humble view – what we should be doing: developing globally responsible leaders equiped to deal with the emerging societal, economic and environmental challenges so that all of us can live well and within the limits of out planet.