Professional Documents
Culture Documents
PETRA KUENKEL
NAVIGATING
COMPLEX CHANGE.
HOW WE CAN MASTER THE CHALLENGES
OF STAKEHOLDER COLLABORATION
IMPRINT
TABLE OF CONTENTS
Executive summary 5
10. Literature 24
12. Ackowledgements 25
NAVIGATING
COMPLEX CHANGE.
HOW WE CAN MASTER THE CHALLENGES OF STAKEHOLDER
COLLABORATION
EXECUTIVE SUMMARY
This Volume 2 of our Collective Leadership Studies In Section 3 we reiterate the methodology – COL-
explores the conceptual background and application LECTIVE LEADERSHIP – a practice-oriented approach
of our core methodological approach, the Collective to leading complex change in multi-actor settings
Leadership Compass, that empowers individuals and the Collective Leadership Compass, its tool for
and groups of leaders to navigate complex change practical use. Each dimension of the Compass has
in multi-stakeholder collaboration. It can be used its own dynamic and can be fostered and developed
to drive integrated water management, manage in many ways, for with attention to their joint pres-
initiatives to enhance climate change adaptation, ence, they mutually reinforce each other’s strength.
create responsible value chain solutions, or any
Section 4 dives into the conceptual background of
other sustainability challenge that requires actors
the Compass and explains the research that has
across institutions, sectors or nations to work to-
preceded its development.
gether to address complex change. Many existing
multi-stakeholder collaborations are not delivering Section 5 explains how to use the Compass as a
navigation tool – for planning and evaluating col-
questions: How can we move from the conceptual laboration initiatives.
insight that we need to collaborate across nations,
Section 6 illustrates the application of the Compass
institutions, and cultures towards mastering the art
with two brief case examples – the establishment
of collaboration in a complex world? This Volume
of a sustainable textile alliance in Germany and
takes a backstage view by looking at underlying
the grooming of Rwanda’s economic development
patterns for successful collaboration in complex
through Public-Private Dialogue.
change environments.
The Collective Leadership Compass is a tool for action
In Section 1 we remind ourselves of the global
agenda for sustainability and the transformative
of Stakeholder Collaboration settings, its application
shifts that will require collaboration and partnering
helps to structure processes in a successful way, it
on a large scale.
functions as quality check for stakeholder events,
In Section 2 we explore the characteristics of suc- and it strengthens an appreciative and more holis-
cessful multi-actor collaborations for sustainability tic leadership style. This volume suggests that we
and how the creative potential in sustainability need to scale-up both research and practice around
inspires people to join in and commit. capacitating groups of leaders to more consciously
co-create a future aligned with sustainability across
sectors and stakeholder interests.
5
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
In July 2012, invited by Secretary-General Ban Ki-
3.
moon, a 27 member High-level Panel composed How can we move from the conceptual insight that
of eminent persons from around the world began we need to collaborate across nations, institutions,
to work on their consultative advice for a global and cultures towards mastering the art of collabo-
development framework beyond 2015. The report1 ration in a complex world?
emphasised “the central importance of a new spirit
In our previous volume titled “Shifting the Way
to guide a global partnership for a people-centred
We Co-Create”4, we suggested that most sustain-
and planet-sensitive agenda, based on the princi-
ability challenges are characterised by complexity,
<
=>@
interdependence, and urgency. All three challenges
transformative shifts:
require a change in the way we approach the future.
• Ensuring that no person – regardless of ethnic- In this volume we will focus on the challenge of
ity, gender, geography, disability, race or other complexity. In his recent article, Dave Snowden5
status – is denied universal human rights and suggests a decision-making framework for leaders
basic economic opportunities that distinguishes between simple, complicated,
• Putting sustainable development at the core of complex, and chaotic change. Most sustainability
all development activities challenges fall into the category of complex, for
addressing the challenges requires that we test,
• Transforming economies in the way that they
probe, and prototype ourselves into the future. We
provide jobs and inclusive growth
need to open up to a global learning process. Multi-
• Recognising peace and good governance as a stakeholder collaboration is as a response to the
core of human well-being. complexity of the challenges ahead (Lozano, 2007;
@
<< Kuenkel & Schaefer, 2013). It is also an emerging
to reach the desired transformation: Forging a @<
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new global partnership in a “spirit of solidarity, • $<
cooperation, and mutual accountability”, coupled that need to align around a joint improvement
with the common understanding of our shared approach.
humanity2 (United Nations Publications, 2013).
• %
<-
The panel knew, whether it was about managing
ent on engaging actors into a joint approach who
scarce water resources, adapting to climate change,
would normally not work together.
securing access to adequate nutrition, or creating
responsible value chains, that the challenges of • The fact that problems that require solutions
sustainability required new forms of collaborative are complicated – they need expert knowledge
inventiveness. This is a heavy demand to place. and innovation; complex – they require a testing
OQ and learning approach, emerging solutions and
- innovation for scalability; and chaotic – they are
standing of partnering, high transaction costs, or Z
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-
has the tendency to want to reinvent the wheel. ences (see also Snowden, 2007).
Many existing multi-stakeholder collaborations are
6
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
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HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
Forging global partnerships in a multi-actor setting in the Collective Leadership Compass, thus making
requires leadership by various individuals towards a it – a guiding tool to gauge the quality of human
similar goal on a collective scale. It is the emotional interactions in collaboration processes.
|<
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counts. We cannot expect people to drop their
scepticism, criticism, and doubt. We have, how- “You have to have an image of the future that goes
ever, mastered the entry to fruitful multi-Stakeholder far beyond the operational goals you would normally
Collaboration when people are prepared to join a set yourself. You need to inspire people to think in
collective learning journey, to which everybody will possibilities rather than limitations. And you need to
ask people for their point of view. I never expected
that we would have such a long-term impact when
In many organisations, both in the corporate world
I took over the Ministry of Environment – suddenly
and the public sector, dialogue and attention to
people started to co-operate across ministries. We
high quality collaboration relationships are still
created round tables and joint initiatives, and people
{@Q_$
who had been dormant woke up and contributed.
employee performance indicators do not measure
It was the feeling of a movement that pushed us
the quality of collective human interaction. Yet, this
forward.”
is what counts most in order to get better results
Driving the future of energy: Monika Griefahn7,
in Stakeholder Collaboration. The leader-centric
Co-founder of Greenpeace Germany and Minister of
paradigm, however, is shifting as global challenges
can only be addressed when the joint capacity of
leaders to become catalysts for change is realised.
This capacity building will be the cornerstone of
our response to global and local sustainability
challenges.
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COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
9
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
Table 1
FUTURE POSSIBILITIES Our competence to take responsibility and consciously shape reality towards a sustainable future
ENGAGEMENT
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INNOVATION
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WHOLENESS Our competence to see a larger picture and stay connected to the common good
FUTURE ORIENTATION
CONTRIBUTION
EMPOWERMENT
VITALITY
FUTURE
POSSIBILITIES DECISIVENESS
WHOLENESS
CONTEXTUALITY
PROCESS QUALITY
ITERATIVE LEARNING
ENGAGEMENT CONNECTIVITY
DIVERSITY COLLECTIVE
INTELLIGENCE
COLLECTIVE ACTION
DIALOGIC QUALITY
CREATIVITY
INNOVATION
HUMANITY
EMPATHY
EXCELLENCE
BALANCE
ADAPTABILITY
MINDFULNESS
© Petra Künkel, Collective Leadership Institute
© Petra Kuenkel!"#$%&
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COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
Table 2
ENGAGEMENT Our competence to Process Quality The way we build step-by-step and structured
FUTURE
POSSIBILITIES
create step-by-step engagement.
PROCESS QUALITY
engagement towards
Connectivity The way we foster cohesion and build networks.
ENGAGEMENT CONNECTIVITY collaboration systems
Collective Action The way we drive joint implementation and the
delivery of results.
COLLECTIVE ACTION
INNOVATION Our competence to Creativity The way we nourish sources of creative energy and
ENGAGEMENT
@ the collective generation of ideas.
intelligent solutions
Excellence The way we pursue mastery and grow our
knowledge.
ANITY
CREATIVITY
INNOVATION
Agility The way we move through crises, stay open to
EXCELLENCE
© Petra Künkel, Collective Leadership Institute
change, and cultivate risk-taking.
AGILITY
HUMANITY Our competence to Mindfulness The way we deepen our awareness of reality in all
COLLECTIVE
INTELLIGENCE reach into each other’s aspects.
humanness
Balance The way we integrate personal and professional
INNOVATI aspirations.
HUMANITY
EMPATHY
Empathy The way we embrace the perspective of others and
BALANCE
open gateways for reconciliation.
MINDFULNESS
COLLECTIVE INTELLIGENCE Our competence to Dialogic Quality The way we attend to the quality of conversations.
WHOLENESS
ITERATIVE LEARNING
progress Diversity The way we foster diversity in thought, viewpoints,
background, and experiences.
DIVERSITY COLLECTIVE
INTELLIGENCE
Iterative Learning
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DIALOGIC QUALITY
HUMANITY
WHOLENESS Our competence to see Contextuality The way we connect with ourselves, each other, and
CONTRIBUTION
a larger picture and a larger context.
MUTUAL SUPPORT
stay connected to the
common good Mutual support/ The way we enhance each other’s strengths.
WHOLENESS FUTURE
CONTEXTUALITY POSSIBILITIES
Vitality
11
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
Using the Collective Leadership Compass is like learn- The Collective Leadership Compass can help us stay
ing to design and implement a pattern by keeping on track when we have to weather storms and un-
the six dimensions in an appropriately balanced certainties. The Compass is, however, not a recipe
composition and ensuring that none gets lost. This for all challenges that humankind faces, it is a tool
enhances the likelihood of better co-creation since that, if used wisely, can help navigate complexity
in collaboration and in leading change for sustain-
at learning quickly, more adaptive, and above all, ability. It does not reduce the complexity of today’s
oriented towards a future that future generations world, but it helps structure our approach of how to
also want to live in. As a collective, we become more deal with this complexity. A collaboratively delivered
resilient – resilience being a capacity that we need contribution to a joint purpose in multi-stakeholder
in a complex, interdependent and quickly changing
world. With climate change, resource scarcity, social
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we accept that the future is constantly created as a
now realise that our future depends on action that result of encounters between people, we become
is based on the human capacity to become more more aware of the pattern of human competences
resilient, to adapt, to learn, to re-create, to invent, in interaction that can take us into a better future.
to innovate, and to co-create better.
12
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
COLLECTIVE LEADERSHIP
The approach of COLLECTIVE LEADERSHIP and the Multi-stakeholder collaboration is a way of forming
Collective Leadership Compass as a navigating tool temporary goal-oriented systems of human interac-
stem from an evaluation of twenty years of practical
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COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
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Fostering trust building through respecting dif- ENGAGEMENT and $
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16
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
Table 3
17
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
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COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
#
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DRIVING COLLABORATION FOR SUSTAINABLE TEXTILES
If the sustainability challenge feels too complex, learning journey with unclear outcomes: Although
one can either give up or take a bold step towards
involving a wide range of stakeholders in the actual exist, none of these approaches address the entire
innovative co-design of a change process. When supply chain. To look at all sustainability issues at
the newly appointed Minister of Development the same time and to bring all actors on board was
Cooperation in Germany announced in the spring entirely new. Experts from industry, trade, business
of 2014 that his desire was to be sure that the new associations, NGOs, and standards organisations
suit he was wearing was produced in a sustainable participated in co-design working groups to tackle
way, most people tended to ignore the message. these kind of issues with a holistic supply chain
Even though the challenges of sustainable supply
@
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chain management in Asia were well recognised @
and most companies felt that they were on a good criteria for a membership in the alliance. Six months
path to improving their supplier relationships to
_<
include sustainability aspects, the Minister had set launch of a German sustainable textile alliance with
the bar higher. He started by inviting 34 high-level an ambitious action plan to create an impact on
stakeholders to a round table and made clear that the entire textile sector. What made all the experts
he expected them to do much more to change the and professionals put in the extra time that this
status quo and, above all, to do it jointly. Else, he innovative co-design process required?
would think about legal ways to ensure supply chain
1. Despite the fact that the Minister was criticised
responsibilities. The outcry among companies was
for his forceful approach and perceived lack of
widespread. Not only did they think he had made
knowledge about the complexity of the sustain-
demands that are impossible to implement, but
ability issues, it was his decisiveness that pushed
they also felt that their current activities to improve
the process forward. Besides his pressure, the
the situation were largely ignored. Emotions ran
issue itself tapped into already existing ambi-
<
@
tions. Most stakeholders had been working on
and the industry associations grew nervous as their
similar sustainability issues for years, albeit with
|<
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Q
considerable frustration about the absence of a
It took another large gathering of all stakeholders joint approach. Here was a window of opportu-
to get people into a more constructive dialogue, nity that was opening up for people to see the
which became the starting point for an unexpected <
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process: The co-design of a textile alliance com- Q
|
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mitted to economic, environmental, and social POSSIBILITIES – (
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)
).
sustainability along the entire textile value chain. 2. It was clear that each of the stakeholders pos-
Even though the task seemed overwhelming, people, sessed a part of the knowledge that was required
who were already very busy, committed to join the for a holistic approach. It was the diversity of
alliance development process to create a sector- knowledge and expertise that became important.
wide approach to sustainable textiles. Why was this Bringing together this diversity was more than a
an innovative process? All stakeholders knew they cumulative process (COLLECTIVE INTELLIGENCE –
were venturing into the unknown, embarking on a dialogic quality, diversity).
19
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
3. As the working groups looked into the mapping 4. Even though getting all stakeholders into a
of the entire textile supply chain, the spirit of structured co-design process was initially seen
co-design took root because everybody began as chaotic, a committed project secretariat11
to see the entire picture of challenges and pos- streamlined the process and built trust between
sibilities more thoroughly. It became even clearer stakeholders with a transparent and reliable se-
that solutions could only be found in a collective quence of workshops, regular information, and
Q 'WHOLENESS – the establishment of a stakeholder-composed
(
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)
)
)''
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). steering structure that would oversee the entire
process until the launch (ENGAGEMENT – process
quality).
20
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
%
$
FOSTERING DIALOGUE FOR ECONOMIC DEVELOPMENT
In 2014 Rwanda celebrated 20 years of post-geno- judiciary and private sector national leaders). The
cide recovery and reconstruction under a stabilised process created a sense of urgency as performance
political, social, and economic environment. The targets for all relevant government agencies were
country has ambitions to transform itself into a based on such high-level resolutions and progress
private sector-led middle-income country with a was measured annually.
healthy, educated, and prosperous population
The practical implementation of the dialogue mecha-
by 2020 (Government of Rwanda, 2014). This
nism presented challenges because it was public
required extraordinary commitment to reform
sector-led. Dialogue leaders expected that the
and the result has been high rates of economic
business community would welcome and embrace
growth in recent years. The World Bank’s Doing
the initiative. David Rugamba Muhizi, the Head
Business Report 2014 mentions Rwanda as one of
of Strategy and Competitiveness Division at the
the countries with considerable improvements and
Rwanda Development Board, highlights the big-
ranks Rwanda 32nd in its international comparison
gest challenge, namely engagement of the private
of business environments (World Bank, 2014). But
sector into the future possibilities that would emerge
challenges remain. The Rwandan economy has
from the dialogue: “It is very important to forge a
been dominated by a public sector run business
common understanding around the objective of
environment and it has not yet been possible
such (a dialogue) mechanism. Building a collective
to take full advantage of the improved business
vision and purpose and of course at the same time
environment, particularly for small and medium-
creating a win-win situation.”12 In the beginning the
sized enterprises.
private sector, particularly smaller businesses, did
Productivity of the private sector is a cornerstone not quite understand the purpose of the dialogue.
for creating employment opportunities and improv- They saw that it means getting things from the
ing the employability of the overwhelmingly young government without doing their own adjustment in
population. One of the challenges has been barriers ways of operating, accountability, and transparency.
> David remembers that implementing the dialogue
October 2012 the Rwandan government launched mechanisms at the provincial level required iterative
a new national Public Private Dialogue mecha- learning. “It is part of the (growing) collective action.
nism – a structured stakeholder dialogue platform You need to understand both parties. Government
established to address issues impeding small and and private sector need to have a collective future that
mediums sized businesses. The dialogue has been is designed, commonly understood, (with a) shared
implemented across sectors and on thematic issues vision and shared action.” Building understanding
at both the district and national level. The aim is to of the other stakeholder’s constraints and roles
engage the public and private sectors in dialogue to became the cornerstone of success. HUMANITY and
identify and resolve business related issues at the empathy were essential to stepping into the shoes
local and national levels. The decision to establish of the other in order to jointly solve the problem
the dialogue mechanism was made at the highest @
level with impetus from the National Leadership <<
<
Retreat (a gathering of 300 top executive, legislative, in the Rwandan economy. What led to a successful
21
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
outcome despite the original challenge of a low a genuine openness to contributions. Not only
sense of process ownership in the private sector? did the private sector need to get engaged, but
It was a combination of conscious approaches to a the provincial authorities needed to more deeply
clear and transparent process, genuine stakeholder understand the potential of a dialogic approach
engagement, and iterative learning. as well and begin to see themselves as partners
of the private sector (INNOVATION – agility).
1. Because a government-initiated public-private
dialogue required clear administrative proce- It was the perseverance and the focus on continuous
dures, the secretariat set up a process plan that engagement that yielded results. The secretariat
showed how the dialogue mechanism would be knew that both the private and public sectors would
enacted in the provinces. The immediate learning stay engaged when they saw results. It required
was that the envisaged public-private collective strong and committed leadership at national and
action required slowing down the process and provincial level to ensure that the results would
{
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Forcefully pushing the private sector into dialogue the public-private dialogue mechanism established,
did not work (ENGAGEMENT – '(
)
? Rwanda can now move to the next stage, namely
2. The investment in relationship building with addressing issues that lie below the surface of an
<
<% improved business environment such as integrat-
conversations with selected entrepreneurs, listen- ing more vulnerable groups into the local economy
ing to the situation from the other point of view and promoting women’s economic empowerment.
changed the impression that the private sector
was not interested in dialogue. Gradually, the
secretariat of the public-private dialogue mecha-
to the country’s future economic performance
(HUMANITY – mindfulness, empathy).
3. The secretariat learned quickly that keeping the
big picture alive was as important as building
the trust that the view of the private sector was
increasingly important to shaping policies and
laws. Convincing the private sector to become
part of a larger vision was essential to success
(WHOLENESS – contribution).
4. David recalls: “In fact we were trying to shape
that vision of collective action [… and] a future
that was full of possibilities, trying to show them
that it is very important for this country’s poli-
cies and laws to […] take the private sector into
consideration.” (FUTURE POSSIBILITIES – future
orientation)
5. Yet the next challenge arose when the secretariat
discovered that not all public representatives in
the provinces would approach the dialogue with
22
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
&
Multi-stakeholder initiatives require conscious functions as quality check for stakeholder events,
<- and strengthens an appreciative and more holistic
ent stakeholder groups, become a joint driver for leadership style. This volume suggests that we need
23
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
'
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YOOO#~
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24
COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
Petra Kuenkel, Founder and Executive Director of the Collective Leadership Institute, a
_<@
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for high quality dialogue and cooperation. Petra is a leading strategic advisor to pioneer-
ing international multi-stakeholder initiatives that tackle sustainability issues. Based on
her practical work in successful change processes, she developed the Collective Leader-
ship Institute’s Dialogic Change methodology and the Collective Leadership Compass, a
guiding tool for navigating change in complex multi-actor settings. She promotes the scaling-up of col-
laboration skills for change agents from the private sector, the public sector, and civil society and pioneers
approaches that re-invent leadership as a collective competence.
Many people have contributed to this second volume of the Collective Leadership Studies and the develop-
ment of the Collective Leadership Compass. First and foremost I would like to thank our interview partners
25
HUMANITY • FUTURE POSSIBILITIES • ENGAGEMENT • COLLECTIVE INTELLIGENCE • INNOVATION • WHOLENESS
The Collective Leadership Institute’s work is based Residential: 52/54 Francis Street, Woodstock
on the principle of cooperation and collectively cre- 7915 Cape Town, South Africa
ated solutions – across sectors, institutions, nations, Postal : P.O Box 36250
and cultures. With Executive Education, Integrated Glosderry, 7702 Cape Town, South Africa
Capacity Development, Community Building, and Tel: +27 21 780 1082
Research, the Collective Leadership Institute builds Fax: +27 86 219 2265
competence for sustainability – for responsible southafrica@collectiveleadership.com
business, people-oriented public service, and a
strong civil society. WWW.COLLECTIVELEADERSHIP.COM
WWW.STAKEHOLDERDIALOGUES.NET
WWW.YOUNGLEADERSFORSUSTAINABILITY.COM
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COLLECTIVE LEADERSHIP STUDIES - VOLUME 2 Navigating complex change
Young Leaders
for Sustainability
www.stakeholderdialogues.net www.youngleadersforsustainability.de
WWW.COLLECTIVELEADERSHIP.COM