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A translation of a recent article published in ‘La vie économique’ a Swiss publication from the Secretariat d’Etat a l’economie, SECO

For the U.N. Sustainable Development Goals (SDGs) to be reached, business has to shift its strategic perspective. Interconnected Web‐tools such as the GAPFRAME.org can help companies in this perspective change.

 

The launch of the GapFrame.org online platform represents a bold attempt to provide a normative framework to answer two related questions: what are the biggest sustainability challenges in our country and what does it take for us to contribute to a world where everybody lives well on one planet? The Gap Frame translates the SDGs so that government and business can take action. But what is really needed so that business becomes a force for good? Building on the need to shift from inside-out to an outside-in perspective, the article investigates three challenges on an individual, organizational and societal level to make enable such a shift and offers insights of relevant tools. The circle model offers an integrative approach to the transformational challenges so that the Global Agenda for 2030 can be realized. The article concludes with levers of change for the three challenges.

The Sustainable Development Goals (SDGs) represent the globally negotiated and broadly accepted agreement of our Grand Challenges until 2030. The SDGs are formulated into 17 Global Goals (see Figure 1). How does business react to these SDGs? On the upside, there is increasing awareness among business leaders that the SDGs represent a “billion dollar investment opportunity” 1 for businesses as the SDGs provide a strategic outline for innovation and where new markets will emerge as a result of needs that are currently under addressed. On the downside, these opportunities are not obvious and organizations can be tempted to use the SDGs to merely showcase how existing business activities, contribute to the 17 global goals. While such examples are important, they further accentuate the “big disconnect” of business doing a lot of good while at the same time the state of the world is deteriorating. It is critical to enable business to quantum leap from focusing predominantly on its current activities and considering the SDGs as just another reporting requirement instead of the long‐term source of innovation and success while serving society and the world.

The “inside‐out” Perspective is no longer sufficient

What is needed so that business can indeed become a force for good to society and the world? In order toachieve the full potential the SDGs present for business, we need efforts of Corporate Social Responsibility (CSR) and Corporate Responsibility (CR) to advance so that business becomes “truly sustainable” 2. In course of the this decade, most large organizations have been required to adapt their business model towards a refined shareholder model, thus shifting their perspective beyond the short‐termism imposed by a pure shareholder maximization focus. Such a first step of considering sustainability in business has been inspired by CSR developed in the 80s and 90s. Triple bottom line thinking has been inspired by a broader CR thinking and has resulted in a number of leading multinationals, such as Unilever, to engage in a further integration of sustainability in their business, creating triple bottom line value for multiple stakeholders. Yet, these “inside‐out” perspectives of how business operates in the world are no longer sufficient. Unless business shifts its perspective to an “outside‐in” view and takes the SDGs as the starting point for product development and value creation, it will not maximize its potential of being a force for good.

The three challenges of shifting from “inside‐out” to “outside‐in”

Adopting such an “outside‐in” perspective in order to become “truly sustainable” means that a company starts by understanding the burning issues in the region it operates (see Figure 2). The first challenge relates to lacking or confusing information about what these issues might indeed be. Initially, the SDGs seem focused more on issues that concern developing countries than developed countries, leaving organizations quite puzzled in the maze of information around global challenges. In a second step, a company identifies its core competencies and resources to find new innovative ways to apply these to solve the Grand Challenges, creating future services and products that both serve society and the world, and ensure its economic wellbeing. This second challenge relates to how a company identifies strategic opportunities beyond its current markets and clients. It also challenges the decision‐making process of a company, in particular regarding strategy development as a more continuous and emergent process, as compared to top‐down and periodically. Third, as the company discovers new applications of its core strengths, it will also identify new partners in new sectors and industries to work with in co‐creating solutions for the SDGs. This third challenge relates to additional leadership competencies required to being able to manage beyond traditional company boundaries and includes know-how in working with institutions that have other interests, priorities and definitions of success.

I – we – all of us
There are various tools available to deal with these important challenges separately. The real challenge here is the need for an integrated approach of the three key challenges that are need to be overcome when shifting from “inside‐out” to “outside‐in” perspective in order to truly solve the SDGs. It is helpful to consider these three challenges as three different dimensions of engagement as referred to when discussing global responsibility: the “I – we – all of us” (see Figure 2). There is the individual level that addresses the leadership dimension discussed as the third challenge (the “I”), the group level addresses the organizational dimension identified as the second challenge (the “WE”), and the Grand Challenges or issue‐related challenges reflects the larger societal dimension of the first challenge (the “ALL‐OF‐US”). These three dimensions are interconnected and interdependent. Wanting to change one dimensions often implies the necessity to change and amend the others. It is important to work with tools that are designed so that they address not only each challenge individually but enable a further three‐dimensional transformation across all three challenges.

Three levers of change to enable this transformation

The need to understand the true opportunity of the SDGs using an outside‐in perspective The SDGs are the opportunity for mankind to get back on track regarding how we live together, how well we live and how to live on this planet. It is also a golden business opportunity for organizations with the innovation power and appetite to build business solutions for these Grand Challenges. Concretely, we need co‐creative processes to develop such new social innovations for stakeholders to engage as equals. Second, we need a snapshot overview highlighting priority issues to be tackled country‐by‐country, as a starting base for such multi‐stakeholder conversations to ensure viable business solutions to solve our Grand
Challenges (see Figure 2).

The need of a practical strategy tool to translate SDGs into such business opportunities
For companies of any size to truly embrace these “outside‐in” long‐term opportunities, there are important challenges to be overcome to consider and apply strategy in such a new way. There are two levers of change for a company to engage outside of its organizational boundaries and introduce resulting opportunities within its structure. First, its executive team needs to acquire the competencies to embrace the “outsidein” view as a new strategic process. Second, the organizational structure needs to become adaptive to such outside‐in change and to enable such change. This can be achieved by distributing the power from few to many and by implementing the principles of self‐organization so that the internal structure can match the
speed of change of the external environment in which the company operates.

The need for responsible leadership competencies to cooperate outside business boundaries
The emergence of truly responsible leaders at any level of any organization is closely connected with the personal journey of people to become engaged citizens and their ability to hear and to express their inner purpose and values of who they are and what they do, both at home and at work. While the personal development journey belong to every individual and can hardly be generalized, let us focus on two levers in the context of work. First, the continuous friction of an individual daring to bring more of herself to work can create a powerful sensemaking journey for an individual. Second, the possibility to align what matters to an individual with her professional activity and the purpose of the organization will translate into an increasing appetite and capacity to help the company to align its purpose with its role in society and the world. Experience in social innovation has shown that spaces where these three dimensions can interact and build on each other, can generate multi‐level transformations. Such moments are created when an empowered individual (the I) is representing her
company (the we) in a multi‐stakeholder process geared to solve a problem she truly cares for (the all‐ofus). Nothing less than the miracles that occur as a result from such alignment of the “I – WE – ALL OF US” are what is needed to get us to a place where the SDGs become history and we are all living well on our one planet.

Footnotes:

1 Business and Sustainable Development Commission (2017): “Better Business Better World report”, London, accessed April 28, 201 on http://report.businesscommission.org/uploads/BetterBiz‐BetterWorld.pdf
2 Dyllick, Thomas and Muff, Katrin (2016) – see literature

Katrin Muff

Katrin Muff

Active in Thought Leadership, Program Lead & Prototype Consulting in the areas of Sustainability, Responsibility & Transformation, Business School Lausanne, Chavannes-près-Renens

Interrelated tools for the three challenges

The societal dimension:  The GapFrame.org online platform offers a tangible translation of the SDGs into a set of national priorities that offers a starting point for any institutions (government, non‐government or business) to adopt an “outside‐in” perspective and focus on a relevant issue in the region in which it is active. New, co‐creative processes for multiplestakeholders such as the Collaboratory are required to create a space for such innovations.

Organizational dimension: A company faces two parallel challenges in adopting an outside‐in perspective: first, a revision of its strategy process from a traditional top‐down approach to an ongoing fluid bottom‐up strategy adaptation process. A related SDG strategy tool is being prototyped by five Swiss businesses in 2017. Second, a review of how the company effectively organizes around a purpose. New options in the area of self‐organizations such as Holacracy offer new alternatives to existing hierarchies.

Individual dimension: Everybody can become a leader. The Competency Assessment of Responsible Leadership (CARL) offers a free online tool to assess these competencies both in educational processes, in companies and among social entrepreneurs.

Literature:

Dyllick, Thomas and Muff, Katrin (2016): “Clarifying the meaning of Business Sustainability – from business-as-
usual to true business sustainability”, Organization Environment, Vol 29-2, 2016, p. 156-174

Muff, Katrin (2017): “How the Circle Model can purpose-orient entrepreneurial universities and business
schools to truly serve society”. Journal of Management Development, Volume 36 no. 2, p. 146-162

Muff, Katrin, Kapalka, Agnieszka, Dyllick, Thomas (2017): The Gap Frame – Translating the SDGs into
relevant national grand challenges for strategic business opportunities. International Journal of Management
Education, Volume 1, no. 21, pp pending publication

Muff, Katrin, Liechti, Anna, Dyllick, Thomas: “The Competency Assessment for Responsible Leadership
(CARL): Consolidating the responsible leadership discourse into an operationalized definition and an online
tool for practice and education”, in review process – copy available upon request through
katrin.muff@gmail.com

Help spread the word.

Biodiversity


Sustainable Development Goal 14

Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
 .

Sustainable Development Goal 15

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
 .

Carbon Quotient


Sustainable Development Goal 13

Take urgent action to combat climate change and its impacts.
 .

Oceans


Sustainable Development Goal 14

Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Land & Forests


Sustainable Development Goal 2

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
 .

Sustainable Development Goal 15

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
 .

Clean Air


Sustainable Development Goal 13

Take urgent action to combat climate change and its impacts.
 .

Water


Sustainable Development Goal 6

Ensure availability and sustainable management of water and sanitation for all.
 .

Clean Energy


Sustainable Development Goal 7

Ensure access to affordable, reliable, sustainable and modern energy for all.
 .

Waste Treatment


Sustainable Development Goal 11

Make cities and human settlements inclusive, safe, resilient and sustainable.
 .

Health


Sustainable Development Goal 2

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
.

Sustainable Development Goal 3

Ensure healthy lives and promote well-being for all at all ages.
.

Equal Opportunity


Sustainable Development Goal 4

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Sustainable Development Goal 8

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Sustainable Development Goal 10

Reduce inequality within and among countries.
.

Education


Sustainable Development Goal 4

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
.

Sustainable Development Goal 5

Achieve gender equality and empower all women and girls.
.

Living Conditions


Sustainable Development Goal 6

Ensure availability and sustainable management of water and sanitation for all.
 .

Sustainable Development Goal 7

Ensure access to affordable, reliable, sustainable and modern energy for all.
 .

Sustainable Development Goal 11

Make cities and human settlements inclusive, safe, resilient and sustainable.
 .

Social Integration


Sustainable Development Goal 16

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
.

Quality of Life


Sustainable Development Goal 1

End poverty in all its forms everywhere.

Sustainable Development Goal 2

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
.

Employment


Sustainable Development Goal 8

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
.

Resource Use


Sustainable Development Goal 11

Make cities and human settlements inclusive, safe, resilient and sustainable.
 .

Sustainable Consumption


Sustainable Development Goal 12

Ensure sustainable consumption and production patterns.
 .

Sustainable Production


Sustainable Development Goal 12

Ensure sustainable consumption and production patterns.
 .

Innovation


Sustainable Development Goal 9

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
.

Public Finance


Additional issue.

Structural Resilience


Sustainable Development Goal 16

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
.

Peace & Cooperation


Sustainable Development Goal 10

Reduce inequality within and among countries.
.

Sustainable Development Goal 16

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
.

Sustainable Development Goal 17

Strengthen the means of implementation and revitalize the global partnership for sustainable development.

Business Integrity


Additional issue.

Transparency


Additional issue.

No Poverty


GAPFRAME Issue 14: Quality of Life

The Quality of Life issue frames a situation where nations provide the basis for sustainable human and economic development, lowering poverty and helping people afford a better quality of life. By ensuring the physical and emotional well-being, societies become resilient and supportive, able to cope with the demands and challenges of daily living.

Zero Hunger


GAPFRAME Issue 4: Land & Forests

The Land & Forests issue draws a picture of balanced and thriving terrestrial ecosystems such as forests, land and mountains that provide vital habitats for all kind of species. The responsibly managed land is fertile and free of hazardous chemicals, able to sustain high-quality agricultural plant growth in order to meet society’s demand for food.

GAPFRAME Issue 9: Health

The Health issue draws a picture of a universal and financially sustainable system that provides secure and affordable access to quality health care for all. The system helps people to stay healthy throughout their lives by promoting healthy lifestyles, incentivizing healthy and balanced nutrition, and developing an environment and infrastructure that facilitate population health.

GAPFRAME Issue 14: Quality of Life

The Quality of Life issue frames a situation where nations provide the basis for sustainable human and economic development, lowering poverty and helping people afford a better quality of life. By ensuring the physical and emotional well-being, societies become resilient and supportive, able to cope with the demands and challenges of daily living.

Good Health and Well-being


GAPFRAME Issue 9: Health

The Health issue draws a picture of a universal and financially sustainable system that provides secure and affordable access to quality health care for all. The system helps people to stay healthy throughout their lives by promoting healthy lifestyles, incentivizing healthy and balanced nutrition, and developing an environment and infrastructure that facilitate population health.

Quality Education


GAPFRAME Issue 10: Equal Opportunity

The Equal Opportunity issue frames a situation where nations empower and promote the social, economic, and political inclusion of all, irrespective of gender, age or socioeconomic status.  All people have equal access to opportunities, gaining education and skills that allow them to realize their potential and live a fulfilled life.

GAPFRAME Issue 11: Education

The Education issue describes a situation where nations invest in “human capital” by providing access to high-quality education to all citizens, irrespective of their gender or socioeconomic status. The educational institutions (with well-equipped infrastructure and competent teachers) encourage life-long learning and allow to acquire relevant knowledge and skills that are vital for sustainable development and general well-being of societies.

 

Gender Equality


GAPFRAME Issue 11: Education

The Education issue describes a situation where nations invest in “human capital” by providing access to high-quality education to all citizens, irrespective of their gender or socioeconomic status. The educational institutions (with well-equipped infrastructure and competent teachers) encourage life-long learning and allow to acquire relevant knowledge and skills that are vital for sustainable development and general well-being of societies.

Clean Water and Sanitation


GAPFRAME Issue 6: Water

The Water issue describes a situation where nations and communities achieve universal and secure access to high-quality drinking water. The water resources required to produce food are used responsibly and efficiently, maintaining the natural environment in a sustainable manner.

GAPFRAME Issue 12: Living Conditions

The Living Conditions issue draws a picture of nations that are committed to provide their residents with decent living conditions; the foundation for safety and well-being for all and at all ages. An adequate standard of living implies making the human settlements inclusive, safe, resilient and sustainable. Among other factors, citizens are provided with secure access to drinking water, hygiene & sanitation, clean energy, appropriate housing and safe transportation – all designed with respect for the environment.

Affordable and Clean Energy


GAPFRAME Issue 7Clean Energy

The Clean Energy issue envisions a situation where nations and communities gain universal access to affordable and reliable clean energy coming from renewable sources like wind, solar or geothermal power. The renewable energy generates electricity with little or no pollution, reducing the global warming effect.

GAPFRAME Issue 12: Living Conditions

The Living Conditions issue draws a picture of nations that are committed to provide their residents with decent living conditions; the foundation for safety and well-being for all and at all ages. An adequate standard of living implies making the human settlements inclusive, safe, resilient and sustainable. Among other factors, citizens are provided with secure access to drinking water, hygiene & sanitation, clean energy, appropriate housing and safe transportation – all designed with respect for the environment.

Decent Work and Economic Growth


GAPFRAME Issue 10: Equal Opportunity

The Equal Opportunity issue frames a situation where nations empower and promote the social, economic, and political inclusion of all, irrespective of gender, age or socioeconomic status.  All people have equal access to opportunities, gaining education and skills that allow them to realize their potential and live a fulfilled life.

GAPFRAME Issue 15: Employment

The Employment issue describes a world where nations attain sustained and robust employment situation that boost shared prosperity and social cohesion by providing decent and inclusive work for women and men across all working-age groups. Persons of any age, race or origin − including those from most vulnerable groups − are effectively protected from forced labour, human trafficking, or other slavery-like practices.

Industry, Innovation and Infrastructure


GAPFRAME Issue 19: Innovation

The Innovation issue illustrates a situation where the national economy promotes technological progress, investing in innovation and infrastructure to support sustainable development and human well-being. Societies have equal access to information and knowledge which rises the entrepreneurship as well as the technological and social innovation across the globe.

Reduced Inequalities


GAPFRAME Issue 10: Equal Opportunity

The Equal Opportunity issue frames a situation where nations empower and promote the social, economic, and political inclusion of all, irrespective of gender, age or socioeconomic status.  All people have equal access to opportunities, gaining education and skills that allow them to realize their potential and live a fulfilled life.

GAPFRAME Issue 22: Peace & Cooperation

The Peace & Cooperation issue describes a situation where nations and communities attain a sustained level of peace, security, and prosperity, including also interregional solidarity and cooperation.  Each nation and every citizen has a voice and is heard.

Sustainable Cities and Communities


GAPFRAME Issue 8: Waste Treatment

The Waste Treatment issue envisions a situation where nations and communities treat and eliminate the generation of harmful and persistent wastes by redesigning products & processes as well as by changing societal patterns. The society develops and shares best practices for minimalization of all kinds of waste, their recycling, reuse and their correct disposal, in order to protect environment while preserving natural resources.

GAPFRAME Issue 12: Living Conditions

The Living Conditions issue draws a picture of nations that are committed to provide their residents with decent living conditions; the foundation for safety and well-being for all and at all ages. An adequate standard of living implies making the human settlements inclusive, safe, resilient and sustainable. Among other factors, citizens are provided with secure access to drinking water, hygiene & sanitation, clean energy, appropriate housing and safe transportation – all designed with respect for the environment.

GAPFRAME Issue 16: Resource Use

The Resource Use issue delineates a situation where business and the economy consume resources (e.g., energy, water, land, materials) in a responsible, sustainable and efficient manner in order to keep pace with the needs of a continuously growing global population.

Responsible Consumption and Production


GAPFRAME Issue 17: Sustainable Consumption

The Sustainable Consumption issue seeks to describe a situation where people and communities consume materials, products and services in a way that have minimal impact on the environment – respecting the planetary boundaries. Conscious consumption results from sustainable lifestyle adopted by societies that purchase, consume, and reuse goods and commodities with respect to the environment.

GAPFRAME Issue 18: Sustainable Production

The Sustainable Production issue frames a situation where products and services are created with attention to potential environmental, social and economic costs and benefits. Produced goods and delivered services are safe for workers and healthful for consumers and communities. Economic players are sound, solid and responsible. Waste and ecologically incompatible by-products that present hazards to human health or environment are avoided across the entire supply chain.

Climate Action


GAPFRAME Issue 2: Carbon Quotient

The Carbon Quotient issue describes a situation where nations and communities live within the ecological limits of the planet, respecting the Earth’s regenerative capacity.

GAPFRAME Issue 5: Clean Air

The Clean Air issue seeks a situation where ambient air is of high quality − free of hazardous pollutants, smoke or dust. The air in cities and rural areas is clean & safe all year long, permitting for outdoor activities without a risk for health.

Life Below Water


GAPFRAME Issue 1: Biodiversity

The Biodiversity issue envisions a world where terrestrial and aquatic ecosystems are balanced, healthy, and thriving − ensuring natural sustainability for all life forms on the planet. The climatic conditions are stable and favourable for sustaining a wide variety of species living in their natural habitats.

GAPFRAME Issue 3: Oceans

The Oceans issue envisions a situation where oceans are alive at a stable temperature, with thriving species of all kinds including a strong diversity of fish as a sustainable source of nutrition; clean of chemical, plastic and other pollution.

Life on Land


GAPFRAME Issue 1: Biodiversity

The Biodiversity issue envisions a world where terrestrial and aquatic ecosystems are balanced, healthy, and thriving − ensuring natural sustainability for all life forms on the planet. The climatic conditions are stable and favourable for sustaining a wide variety of species living in their natural habitats.

GAPFRAME Issue 4: Land & Forests

The Land & Forests issue draws a picture of balanced and thriving terrestrial ecosystems such as forests, land and mountains that provide vital habitats for all kind of species. The responsibly managed land is fertile and free of hazardous chemicals, able to sustain high-quality agricultural plant growth in order to meet society’s demand for food.

Peace, Justice and Strong Institutions


GAPFRAME Issue 13: Social Integration

The Social Integration issue describes a situation where nations and communities attain foundation for a respectful, diverse and cross-cultural environment. It imagines societies that are tolerant, open and just, enhancing non-violent community interactions and collaborations across various social groups, including minorities.

GAPFRAME Issue 21: Structural Resilience

The Structural Resilience issue describes a situation whereby a nation is able to respond to rapid change and disasters of all kind, from natural, cyber to financial, and remain a place of safety and security for its inhabitants. It includes framework conditions for a robust economy with regulated financial markets, fair trading structures, and corruption and bribery in check.

GAPFRAME Issue 22: Peace & Cooperation

The Peace & Cooperation issue describes a situation where nations and communities attain a sustained level of peace, security, and prosperity, including also interregional solidarity and cooperation.  Each nation and every citizen has a voice and is heard.

Partnerships for the Goals


GAPFRAME Issue 22: Peace & Cooperation

The Peace & Cooperation issue describes a situation where nations and communities attain a sustained level of peace, security, and prosperity, including also interregional solidarity and cooperation.  Each nation and every citizen has a voice and is heard.