Insights7 is honored that we have been invited to share our experience in the operationalization of integrated thinking at the IFRS Integrated Thinking and Reporting Conference in Frankfurt. Integrated thinking is an approach to management of organizations with a longer-term, more holistic focus than has been common practice in recent decades. The movement has been built by diverse experts and organizations from the fields of sustainability, accounting, strategy, intellectual capital and governance.
In an effort to advance the conversations at the conference and beyond, we are releasing a brief describing an exercise Insights7 undertook using the ground-breaking work in the IFRS Integrated Thinking Principles. The Principles outline three levels of maturity. In our exercise, we specifically focused on the highest maturity (Level 3) questions to identify the kind of tools that support integrated thinking. Our goal is to advance the conversation around the hard work of operationalizing this holistic approach to sustainable value management.
The brief provides background on the movement and the moment, the Integrated Thinking Principles and frames the challenges of Level 3 operationalization of the processes and activities that support holistic decision making. Our exercise takes the logical next step and asks what kind of system is needed to facilitate the operationalization of integrated thinking into day-to-day management decisions?
Our analysis identifies seven distinct applications that are needed to operationalize Level 3 including:
- Value Mapping
- KPI Management
- Integrated Data Management
- Multi-Capital Toolset
- Work-to-Value Mapping
- Steady-State Health Management
- Value Growth Management
We suggest that these apps should be provided via an enterprise capability, a center of excellence we’re calling “sustainable value management” (SVM). This service provides the system (structure, tools and capabilities) needed for an organization to think and act holistically at all levels.
We’ve started a regular conversation for our clients and consulting partners around SVM best practices. We’d welcome consultants and companies that want to be part of this conversation. And we will support any groups that might form under the integrated thinking umbrella to turbocharge our collective integrated thinking journey.
Please download the brief and let us know what you think!
