Learning from Positive Impact Organizations: A Framework for Strategic Innovation

• Main Author: Katrin Muff
• Format: Article
• Language: English
• Published: MDPI AG 2021-08-01
• Series: Sustainability
• Subjects: SDGs; sustainability; strategy; stakeholders; sustainability leadership; transformation
• Online Access: https://www.mdpi.com/2071-1050/13/16/8891

In view of the significant global challenges, this article analyzes and suggests pragmatic solutions for organizations to transform from sustainability risk management to creating a positive impact. Positive impact is defined by products and services that are created with the purpose of solving societal problems. It reflects the shift from reducing an organization’s negative footprint to achieving a significant net positive impact on society and the planet. This article shows that such a mindset shift is observed on the level of the leadership and the organization. This explorative, case-based research validates the Dyllick–Muff BST typology and identifies strategic differentiators of Positive Impact Organizations, including their governance, culture, external validation, and a higher purpose reflected in their products and services. This research is translated into two tools for practitioners: the Strategic Innovation Canvas (SIC) and the Positive Impact Framework (PIF). The SIC serves as a quick assessment for organizations to get started. It consists of eight action dimensions: (1) sustainability in the organization, (2) transparency and board support, (3) leadership perspective, (4) targets and incentives, (5) societal stakeholders, (6) triple value reporting, (7) market framing, and (8) products and services. The PIF offers step-by-step guidance during the organizational transformation. The article sketches a new field of research for both scholars and practitioners in organizational transformation towards positive impacts. It bridges business sustainability and strategy through an innovation approach. By recognizing the importance of the underlying mindset shifts, it connects the fields of organizational and personal development.