Why better is bigger (feat. the 'de-growth' movement)
Why Ireland's president is talking about de-growth... and what that has to do with donuts.
Ireland's President, Michael Higgins, is known for two things: First, his people-first political stances; and second, never appearing in public without his faithful dog.
In a speech for TASC (Think-Tank for Action on Social Change) this year, Higgins criticised the "obsession" with economic growth at any cost, and urged the country to "rebalance economy, ecology and ethics."
As ideas go, it's not outlandish. Unilever ex-CEO Paul Polman, the Body Shop's Anita Roddick, and Patagonia's Yvon Chouinard and Ray Anderson have all run successful businesses with a similar people-first model. But the approach isn't widely adopted.
So why then is Higgins suddenly the poster child for de-growth? And why are his ideas sparking support, fear or discomfort globally?
Higgins' stance represents the first time 'de-growth' has entered the public policy realm within the Western world. And for that reason, what he's proposing feels... radical. It's not just about one business taking a stance anymore. It's about an escalating call to do something differently.
“A narrow focus constitutes an empty economics which has lost touch with everything meaningful, a social science which no longer is connected, or even attempts to be connected, with the social issues and objectives for which it was developed over centuries. It is incapable of offering solutions to glaring inadequacies of provision as to public needs, devoid of vision.”
– Michael Higgins in his TASC Speech.
Higgins is also a vocal critical of the way universities teach economics, insisting that it's missing the mark – that it doesn't account for new indicators of economic health.
The alternatives on the table
Simply rejecting our current growth-based model won't work. Radically replacing it with something else will set us up for failure. So what do we do?
We need a concrete, actionable alternative that not only aligns with business objectives, but also takes into account the new world we're creating.
Donut Economics, for instance, challenges us to operate within social and ecological limits while ensuring healthy margins. The Donut consists of two concentric rings: a social foundation, to ensure that no one is left falling short on life's essentials, and an ecological ceiling, to ensure that humanity does not overshoot its resource boundaries.
This model isn't asking society to abandon growth; it's asking society to plan for it differently. Think of it as the 'balanced diet' organisations might follow. You wouldn't eat only sugar and expect to stay healthy. The donut urges us to consider many more 'nutrients'—like social equity and planetary factors—alongside traditional financial goals.
From donut to day-to-day operations
So how do you realise something like the Donut Economic model in your day-to-day operations? How can you be a leader in this emerging future.
This is where the New World Organisation Design framework makes things tangible. The model encourages us to pivot from doing 'less bad' to doing 'more good' in all aspects of work, from our culture, to our operations, to our leadership practices.
And what's in it for organisations? How can we justify a shift to people-first practices?
Organisations are free to do whatever they like within the rules of the legal and commercial world. But what if they wanted to make a shift? How might they justify it without compelling internal evidence?
The reality is that organisations focusing on sustainability (through people, planet and profit) are in demand. Here are some recent findings around this:
A bibliometric review found that sustainable business models in all sectors have increased.
A Porter Novelli study showed that 88% of consumers are more loyal to organisations that support social or environmental issues.
A McKinsey report showed that organisations that fail to take these externalities into account may struggle to sustain themselves in the future.
Want to take the next step? Keep reading.
Thriving in the future: the good, the uncomfortable, and the hopeful.
Whether you’re a senior leader in an SME, a large organisation, a not-for-profit, or a government body, shifting to a new world framework adds longevity.
Step 1: Gain Insights
Get ready for eye-opening insights as we assess your organisation's current practices using the New World Organisation Design framework. We'll identify both strengths and opportunities, ensuring your strategies are tailored, not just temporary fixes.
Step 2: Define Your Purpose
Start with your purpose—it's the golden thread that ties together your people, operations, and offerings. While pinpointing your 'why' might require tough talks and rethinking, it offers a clear reason for your existence beyond margins and metrics.
Step 3: Plan to Change the Engine Mid-Flight
Change demands diverse input—from new hires to founders, from ops to finance. It's a challenge to make time for these crucial conversations while keeping daily operations smooth. Yet, once you do, you'll wonder why you didn't start sooner.
Step 4: Get Clear on The Roadmap
Co-designing your roadmap with input from leadership and diverse team members ensures it's representative and ready for action. Expect a mix of reactions—some may find change tough, while others will be invigorated.
Step 5: Tweak As You Go
During co-design, your team sets meaningful metrics to guide your transformations. Expect some setbacks and motivation dips post-launch, but also anticipate establishing a new, enduring baseline
Ready to meet the new world, regardless of de-growth, re-growth or whatever new curve balls we encounter?
If you’re looking to re-calibrate your business, we’re here to help.
