Demoday #26: Knowledge Session on the Business of Transition
At the final Knowledge and Demo Day of the year, DRIFT (Dutch Research Institute for Transitions) presented an engaging session on the "Business of Transition." How can businesses embrace the concept of "radical change"? And how do they balance collective interests with self-interest? Teun Strikkers and Floor van den Elzen guided the audience through the complex world of systemic change and the role businesses play in these processes.
Teun began with a personal story from his time living in Norway, where he witnessed glaciers retreating. This experience prompted a critical question: why is it so hard to solve major problems like climate change?
He proposed several answers:
• Difficulty in defining boundaries (issues are interconnected).
• Problems occur across different times and locations.
• Attempts to solve problems sometimes exacerbate them.
• Disagreements not only about solutions but also about the nature of the problem itself.
• Problems are persistent or "sticky."
Teun explained that many challenges stem from the lack of clear boundaries within complex adaptive systems. These systems, like economies or energy networks, are made up of interconnected parts that constantly adapt to changes, making it hard to set boundaries or implement change.
What Are Transitions?
Transitions are fundamental, transformative changes that affect culture, structures, and practices. Teun referred to the traditional S-curve model often used to describe the lifecycle of transitions but introduced a more modern alternative: the X-curve. This model better captures the dynamics of transitions, highlighting the interplay between innovation and the dismantling of old structures.
The dynamics of a transition include:
Reconfiguration: What needs adjustment, redesign, or recalibration?
Consolidation: Which new principles and values should be formalized into norms, laws, and regulations?
Scaling: What initiatives require more support, investment, or visibility?
Phasing out: What needs to be retired, and how can this process be facilitated?
Entrepreneurship and Transitions
Floor focused on the practical side of transitions and the role of entrepreneurship. She noted that businesses often struggle to connect their daily operations with broader systemic changes. However, she emphasized, “The business of business is transitions” — companies must take responsibility for their role in driving sustainable change.
One illustrative example was the OV-fiets (a shared bicycle service), which started as a small initiative and grew into a nationwide success that promoted sustainable mobility. This example demonstrated how local innovations can contribute to systemic change, even without addressing all problems at once.
Floor also addressed the tension between short- and long-term goals, highlighting the challenge for businesses to balance collective interests with profitability. She spoke about the importance of creating a “learning environment” where businesses continuously reflect on their impact and adapt their strategies to a changing world. Innovation is all about experimentation: “learning by doing, and doing by learning.”
Tensions and Opportunities in Transitions
The session invited active participation from the audience, sparking interesting debates. One participant remarked, “Isn’t the business of business still just business?” Unilever's decision to sell the Vegetarian Butcher due to low profits showed how financial priorities can clash with sustainability goals.
Another discussion focused on the meaning of sustainability. For example, is Tesla still driving change, or is it mainly succeeding by meeting consumer demands? These questions encouraged thinking about what truly makes a company sustainable and how fairness can be part of transition strategies.
Learning from Inspirational Examples
In smaller groups, participants discussed companies like Patagonia, Dopper, and Interface that are succeeding in transitions. They explored why these companies thrive where others struggle and how other players can support such success.
The discussions emphasized the value of collaboration. Social learning — reflecting and experimenting together — was seen as key to driving big changes. One participant noted, “Our individual choices often conflict with what we choose as a group,” highlighting the need for collective action.
The session showed that while transitions are challenging, they are possible if we’re ready to think and act differently. Businesses play a vital role, not just in implementing changes but in leading the way with new models and practices.
Do you want to learn more about DRIFT and this topic? Leave a comment below and we’ll connect you with them!
