Doughnut economics – the challenge and opportunity for EO
Doughnuts, hosepipe and the future of the planet… not quite the mix you’d expect to find in your usual business lecture, but then Kate Raworth isn’t quite your usual business lecturer. She’s the influential economist focused on making 21st century economics fit for the ecological and social realities of today.
She was also the inspirational speaker at the Employee Ownership Association’s annual Robert Oakeshott Lecture at Bayes Business School in London last week.
Kate’s topic? ‘Redesigning business with Doughnut Economics’ and, specifically, the opportunity for employee-owned businesses to help society meet the challenge to change.
As she explained: ‘Currently, we are a world perilously out of balance, overshooting our planetary boundaries. We need new theories, business models, government policies and ways of living to turn this around…. We need to become regenerative and distributive to thrive.’
Her challenge to the audience of EOA members and advocates was clear: ‘Employee ownership is intentionally distributive by design – can it be regenerative too?’
Redesigning business to be a force for good
Our MD Jeremy Gadd attended the event and was intrigued by what he heard from Kate and her colleague Enrich Sahan, Business and Enterprise Lead at the Doughnut Economics Action Lab.
He was also interested in Kate’s response to the questions the audience asked, including his own about the most common ‘yes but…’ she hears when discussing doughnut economics with businesses.
The answer? ‘Yes but… the market or my shareholders won’t take it,’ she revealed. ‘The beauty is we’ve shown the design can change that.’
‘It was certainly a thought-provoking afternoon,’ Jeremy says.
‘What was so appealing about Kate’s presentation on doughnut economics wasn’t the academic interest it stimulated or the ‘yes but…’ question, but how easy it is to see why employee-owned organisations are by their nature well-placed to embrace the concept and vision that was shared. They’re the ideal recipients of doughnut thinking!’
Why? ‘Because when people understand the challenge they face, the choices they can make and are given the freedom to make these choices, empowering them through the culture of employee ownership releases so much positive energy,’ Jeremy replies.
‘This energy can be such a force for good and if, like me, you believe that business can be a force for good and that true change will only come through cultural entrepreneurship, then the scary challenges we face every day become exciting opportunities to embrace.
‘That feels a little easier when you have a genuine stake in the place where you work.’
Empowering employees to make a difference
Of course, for this to happen in practice, employee ownership needs to be more than a description on a piece of paper. The ability to maximise both its commercial and social potential requires a genuine culture of shared ownership across all levels of the organisation, which takes time and energy to evolve.
‘Currently, we are a world perilously out of balance, overshooting our planetary boundaries. We need new theories, business models, government policies and ways of living to turn this around…. We need to become regenerative and distributive to thrive’
Kate Raworth, ecological economist and EOA guest speaker
In our work at JGA, Jeremy says he’s often asked: ‘How do you know when a business has really embraced employee ownership?’. This question was on his mind as he listened to Kate’s view that ‘being an EO business is a very good starting point for redesigning business’.
His own view is that it starts with clarity about the responsibility, opportunities and rewards of EO.
‘People freely share information, ideas and challenge,’ he explains. ‘The employee owners have a clear sense of purpose, understand their role in the organisation and believe they truly matter and can make a difference.
‘You know when a business has really embraced EO because you can see, hear and feel it all around you. There’s a palpable belief that anything is possible.’
Looking forward to a ‘brilliant year’
The afternoon started – and closed – with the opportunity to network with other EOA members as well as meet several of the EOA’s team who had travelled down from Hull to host the event, which was sponsored by Brabners LLP.
This included EOA Chief Executive James de le Vigne who said he was delighted that the first in-person Robert Oakeshott Lecture for three years had attracted such a strong gathering of ‘employee ownership pioneers and advocates’.
Even without the prospect of more doughnut economics, he confirmed he was ‘very excited’ for the EO sector’s future as he predicted a ‘brilliant year ahead’.
Want to know how JGA’s transition, people and governance services can support you and your EO business?
Coaching 2023: Why it's still worth it for leaders
It’s the start of a new year, usually a time for fresh beginnings, but even the most resilient businesses would probably say they’ve ‘had enough’ of change. Budgets are tight, with a squeeze on spending. So is this really the time to invest in coaching for your leadership team?
‘Yes,’ says Corrine Thomas, JGA’s change expert and Coaching Lead. Corrine knows this is exactly what people would expect her to say, but points out that change – and change programmes – will continue to impact every sector throughout 2023. This makes it even more important that leaders are equipped to manage change well.
Why? Because despite the recession there’s still a strong job market.
‘People are choosing to leave employers if they’re not treated as individuals and their input recognised,’ she explains. ‘Getting your people into a place where they feel motivated, strongly connected to your company and engaged, means they’re more likely to stay, be loyal, and make change programmes happen.’
‘Ultimately, it’s the people within a business who will determine whether a change programme succeeds or fails.’
Supporting leaders to navigate change
Corrine has built a career around supporting change at an organisational, professional and personal level.
Often her work is a blend of all three, as at JGA where she is now leading our team of experienced executive coaches as they deliver our refreshed coaching service: Coaching through Change.
She’s excited that the programme uses Engage, a powerful evidence-based digital toolkit, to assess the psychological readiness and impact of leaders facing change.
Building collaborative senior teams
Coaching is a crowded market, so how is JGA’s Coaching through Change programme different? And why is Corrine confident that it delivers good value for companies facing change right now?
The key is in three words: readiness for change.
‘In a challenging economic environment, Coaching through Change enables individuals to assess their own readiness for change and, with the support of a coach, identify practical actions to overcome any hurdles,’ she explains. ‘This allows them to feel confident, capable and emotionally committed to the change.’
Corrine also points to the programme’s positive impact on the way in which teams work together.
‘Building high levels of trust and having open and honest conversations sits at the heart of this,’ she says. ‘Coaching through Change brings the leadership team together to explore each person’s strengths and the areas they need to work on to be a high performing team.’
The programme includes facilitated workshops which guide leaders to engage in deeper conversations and constructively challenge each other to create collaborative working relationships.
‘Risks and issues that arise are discussed and addressed more rapidly than before,’ she adds.
Changing leaders’ mindsets to achieve results
This is confirmed by initial feedback from the first EO client businesses to engage JGA’s Coaching through Change support.
As one leader told Corrine: ‘We had a brutally honest conversation yesterday after our workshop. This has been needing to happen for about six months. I’m so proud of us – the session really helped us.’
Corrine reveals that participants have found it ‘invaluable’ to be able to reflect on their feelings, thoughts and ideas in their sessions.
‘Guided by our experienced executive coaches, they have enjoyed the space to explore what they want to do to change their mindset. This has increased their confidence, motivation and commitment to the challenges they face.
‘Our Engage survey has been key to starting conversations around how open to change each leader feels. It has provided an accurate reflection of their mindset and, with the support of the coaching, everyone has taken practical actions away to work on.’
At a time of recession, Coaching through Change will ensure that organisations and their leaders avoid the costly impact of poorly-managed change.
Want to know more about how JGA’s Coaching through Change service can support your organisation? Get in touch here.