More understanding and control over transitions
Societal transitions occur when a critical threshold of change is reached. Research shows that a 25% acceptance rate is needed to achieve broader systemic change. In the eyes of consumers, companies play a vital role in initiating and sustaining transitions. It’s no surprise they think so. Companies have a key responsibility to lead by example for consumers and to offer attractive choices.
Research also highlights that price often acts as a significant driver. Major transitions demand both innovation and acceptance. On the one hand, companies need to collaborate to develop solutions that may not yet exist. On the other, timing and pace are crucial. What is required to effectively mobilize the critical mass of 25%? This calls for socially connected leadership.
The power of critical thresholds
Societal change often begins with a minority embracing new norms. Everett Rogers’ Diffusion of Innovations theory suggests that when 25% of a group accepts change, it can trigger a broader transition. Recent research by Motivaction, commissioned by Triodos Bank, among over 1,000 Dutch respondents, reveals:
- On average, 50% support change, while only 15% are opposed.
- The energy and societal transitions show the most progress (22% acceptance), driven by actions such as reducing air travel and volunteering more.
- Well-being, food, and resource transitions are further from the tipping point but can be accelerated through environmental factors and price incentives.
Consumers see a significant role for companies in driving these changes.
Transitions are opportunities for companies
Transitions evolve slowly and require long-term commitment and leadership. This is a two-way street. Companies that align their business models with the future of society not only play a crucial role in accelerating transitions but also become more successful themselves. By understanding the pace of transitions, identifying bottlenecks early, fostering innovation, and mobilizing resources and insights in the right direction, companies can actively contribute to positive change for both society and their own business. This requires a deep understanding of external dynamics.
Agility and resilience
Today’s society is dynamic, requiring companies not only to have a thorough understanding of the world around them but also to remain agile and resilient. Often, we need to invent the wheel to make transitions succeed. This means that not everything will work perfectly the first time, and societal acceptance may happen faster or slower than anticipated. Companies that can best assess this are the most successful. By actively engaging with stakeholders and collaborating with other parties, companies can better understand transitions and make more informed decisions.
The Socially Connected Leadership Model
This model, developed by Marion Kremer, offers a systematic approach to help organizations accelerate transitions. It highlights three key pillars:
Purpose | Understand your own goals and what you can contribute.
Connection | Align your goals and interests with those of your stakeholders, whether in favor or opposition, and deeply understand transitions.
Meaning | Act in the best interests of both society and your organization, earning trust and creating societal value.
This approach helps companies strengthen their internal and external cohesion. By connecting with all stakeholders, businesses enhance their adaptability and secure a meaningful position within society.
About Kremer & Company
Kremer & Company supports organizations in navigating complex transitions by strengthening leadership and prioritizing sustainable value creation. Our methodology for Socially Connected Leadership helps organizations thrive during transitions. Curious about how we can support your organization? Feel free to contact us; we look forward to meeting you!
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