Leading your company toward circular economy
Ida Parkkinen’s blog text on how to lead the transition to a circular economy in companies. Blog is based on educational materials and insights from CECE – UEF Research Center for Sustainable Circular Economy.
Transitioning to a circular economy is not a one-size-fits-all journey. Every organization starts from its own context, with unique strengths, values, and resources. The key is to design a path that fits your reality while aiming for ambitious, measurable goals. In this post, you find practical steps for leaders who want to guide their companies toward circular economy practices based on insights and resources from the CICAT2025 research project.
- Develop a clear vision and strategy
Start by exploring your organization’s strengths, values, and resources. These form the foundation for your circular economy roadmap. There is no single “right” path—your strategy should reflect your unique starting point. Define a clear vision and set concrete, measurable goals to guide progress.
- Engage stakeholders and foster collaboration
Circular economy is not achieved in isolation. Look around; your value chain partners and stakeholders are part of the same setting. Link your plans and goals to concrete actions and identify opportunities for collaboration. Engaging stakeholders early helps turn ideas into real steps forward.
- Build organizational capabilities
Change requires internal commitment. One practical tool is a circular economy idea box, where employees can share suggestions for small improvements. This fosters a culture of experimentation and innovation, while strengthening organizational capabilities and readiness for bigger changes.
- Innovate business models and start small
Big transformations begin with small steps. Ask: What is the smallest change we can implement easily in our daily operations? Experiment with circular business models in low-risk ways and share the learning process with partners. Incremental changes reduce risk and build confidence.
- Monitor performance and adapt
When introducing circular products or services, ensure they create value for customers and remain viable as a business. Track performance against your goals and review how redefining value affects your operations. Continuous monitoring and adaptation are essential for success.
- Strengthen circular economy culture
Circular transition is a long-term process. It requires persistence and future-oriented thinking. Commit to solution-focused approaches and keep exploring opportunities that move your organization closer to circularity. Cultural change is as important as technical innovation.
In conclusion, circular economy is not only a technical shift, but also a leadership challenge. By starting small, engaging stakeholders, and fostering solution-focused approaches, leaders in various organizations can build momentum for meaningful change.
For more practical tools and ideas, explore the CICAT2025 project resources.
Ida Parkkinen ([email protected])