Sustainability through self-management and shared leadership in organisations

In the 21st century, the pursuit of sustainability has emerged as one of the most urgent and complex challenges facing societies worldwide. From accelerating climate change and environmental degradation to rising social inequality and economic volatility, today’s global problems are deeply interconnected and systemic in nature (Meadows 2008). Sustainability is no longer confined to environmental guardianship alone — it has become a comprehensive framework that encompasses the balance of ecological integrity, economic resilience, and social justice to ensure the well-being of both current and future generations (WCED 1987; Sachs 2015).

However, addressing these multifaceted challenges requires a paradigm shift in how organisations and communities operate. Traditional leadership models — typically hierarchical and command-driven — often prove inadequate in complex environments characterized by rapid change, uncertainty, and stakeholder diversity (Uhl-Bien & Arena 2018). Such structures tend to centralise authority, slow down decision-making, and stifle innovation, thereby limiting the capacity to respond to sustainability challenges that demand agility, inclusivity, and collaborative problem-solving.

Emerging leadership paradigms, particularly self-management and shared leadership, offer promising alternatives to organisations in various sizes and spheres. These approaches are rooted in decentralised governance, distributed responsibility, and participatory engagement—attributes that are essential in responding to dynamic and interdependent sustainability issues (Laloux 2014).

This article explores how these two leadership approaches intersect and complement each other in supporting sustainability. It examines theoretical foundations, practical applications, and real-world examples, offering insight into how organisations and communities can navigate complexity while fostering meaningful, lasting change.

Self-management: autonomy and accountability

Self-management refers to organisational structures where individuals or teams operate with a high degree of autonomy. It shifts authority and responsibility from a centralised leadership structure to individuals and teams. This approach relies on principles of autonomy, trust, and accountability, enabling organisations to respond more effectively to dynamic environments. In such systems, decisions are made at the point of greatest knowledge, reducing bottlenecks and fostering innovation. This approach aligns well with sustainability because it empowers individuals to take ownership of their actions and become more resilient. (Druskat & Wheeler 2004; Muller 2014.)

Druskat and Wheeler (2004), for example, have conducted longitudinal research on the self-managing teams (SMTs) of a Fortune 500 company and found that members of such teams take the ownership of their work and go extra mile when and if needed without being told to do so. They also observed that these teams moved their teams further along the continuum of increased autonomy and independence.

Rolfsen and Strand Johansen (2014), on the other hand, conducted their study to explain why SMTs survive and develop over a long period of time. The case company they studied had been utilising SMTs over a period of 30 years. Their findings showed that cooperation and high-level autonomy help teams mature and institutionalise through creating strong normative values, in line with the Team Development Stages theory of Tuckman and Jensen (1997).

Self-management benefits sustainability through providing localised solutions by teams closest to the problem. It enhances sustainability enhancing innovation by allowing experiments and creative approaches without bureaucratic constraints and fostering long-term thinking by empowering individuals with decision-making authority, encouraging accountability and consideration of long-term impacts. The long-term thinking aligns with the intergenerational sustainability ethos of balancing present needs with future generations’ well-being. The autonomy and local decision-making, enable individuals and teams to act with greater contextual awareness and responsiveness (Robertson 2015; Muller 2014).

Organisations like Vincit, Buurtzorg, and Zappos use decentralised structures and autonomous teams to empower employees to make decisions. Buurtzorg in healthcare in Netherlands, Zappos as an online shoe retailer, and Vincit from Finland in digital services have demonstrated how this model can enhance performance and social impact through trust, accountability, and distributed control in different industries and geographies (Monsen & Deblok 2013).

Shared leadership: collaboration across boundaries

While self-management focuses on decentralisation, shared leadership emphasises collaboration, inclusivity, and collective responsibility (Fausing et al. 2015; Klein et al. 2006; Pearce 2004). In shared leadership models, authority and decision-making are distributed among members of a group, allowing diverse voices to contribute and enabling agile responses to challenges (Carson, Tesluk & Marrone 2007; Contractor et al. 2012).

Shared leadership fosters collaboration by distributing decision-making among diverse stakeholders, enhancing adaptability to complex sustainability challenges. This approach leverages diverse expertise, promoting innovative solutions to environmental and social issues. By aligning stakeholders’ interests, it reduces resistance and ensures collective accountability for sustainable practices. Shared leadership also enhances resilience, as sharing power and responsibility mitigates the risks of over-reliance on a single leader. Research highlights improved adaptability and innovation in shared leadership teams, making it vital for addressing sustainability’s multifaceted demands (Hoch & Dulebohn 2013).

Bayer has introduced shared ownership in 2024 to decentralize decision-making by empowering employees to make decisions closer to the customers, increasing responsiveness and innovation. This transformation involved flat hierarchies and reduction in management positions, and has accelerated the pace of product innovation, particularly in the pharmaceuticals divisions. By enabling cross-functional teams to self-manage their projects, the company has shortened development cycles for key products, resulting in operational efficiencies. Teams that previously functioned within rigid hierarchical structures now demonstrate heightened levels of collaboration, creativity, and ownership, which contribute to increased engagement and organizational innovation. (de Morre 2024)

Broader implications for sustainability

The integration of self-management and shared leadership into complex sustainability practices has implications that stretch far beyond internal organisational structures and dynamics. At a societal level, these models foster civic empowerment and participatory democracy. When individuals are trusted to lead within their organisations, they often bring that sense of agency into their communities — fuelling grassroots sustainability movements and fostering systems change (Senge et al. 2008).

These two leadership approaches also model systems thinking at scale. In place of siloed, hierarchical systems that fragment responsibility, shared leadership encourages participation, interconnection, collaboration, and a holistic view of challenges. This is especially critical for cross-sector partnerships where shared goals and collective intelligence are essential.

Economically, organisations embracing these models are more agile in adopting regenerative and circular business practices. As stakeholder capitalism gains momentum, these organisations lead by example, showing that participatory leadership and sustainability are not only compatible but mutually reinforcing (Raworth 2017).

Culturally, these models reshape narratives around sustainability. Rather than focusing on scarcity and sacrifice, self-management and shared leadership emphasise empowerment, creativity, and collaboration. They redefine sustainability not as a burden but as a collective opportunity to design better systems — from the inside out.

Finally, these models enhance resilience. In times of crisis — whether environmental, political, or economic — collective leadership structures enable faster response, local adaptation, and community cohesion. Organisations and societies rooted in participation and shared purpose are better equipped for complexities and grow from disruption.

Implementation challenges and strategies for organisations

While self-management and shared leadership are distinct concepts, they are deeply complementary. Together, they create a dynamic organisational ecosystem that balances autonomy with collaboration, innovation with alignment, and flexibility with accountability.

However, they are not problem-free and require a strategic approach and guidance. Shared leadership and self-management, while offering numerous benefits, also present distinct challenges that organisations must navigate carefully. One common issue is decision-making gridlock, which can occur when roles and processes are not clearly defined, leading to delays and confusion. To address this, organisations should establish clear guidelines for decision-making and conflict resolution.

Another challenge is uneven participation, where existing power dynamics or individual hesitations can result in imbalanced contributions. Structured facilitation and targeted training can help create a more inclusive environment where all voices are heard.

Additionally, balancing autonomy with organisational alignment is crucial; while self-managed teams operate with a high degree of independence, their actions must still reflect the broader mission and strategic goals of the organisation. Regular check-ins, shared values, and transparent communication channels are essential tools for maintaining this alignment while preserving the benefits of decentralised leadership.

Organisations seeking to adopt self-management, and shared leadership can consider the following strategies (Daspit et al. 2013; Ger 2023; Hoch et al. 2010):

• Foster a culture of trust and transparency: Trust is the foundation of decentralised decision-making. Organisations must create environments where individuals feel psychologically safe to take initiative, challenge ideas, and admit mistakes without fear of retribution. Clear communication and transparent processes help build confidence among team members and stakeholders.
• Invest in capacity building and learning: Training in skills such as conflict resolution, providing feedback, team building, systems thinking, and collaborative decision-making equips individuals to thrive in self-managed and shared leadership environments.
• Adopt enabling technology: Digital tools can enhance transparency, facilitate distributed work, and enable real-time monitoring of sustainability initiatives. Platforms such as Trello, Asana, Loomio, and Slack allow for collaborative planning and open documentation. Sustainability-specific tools — like dashboards that track energy use, emissions, or diversity metrics — can help individuals see the impact of their efforts.
• Align incentives with long-term and collective goals: Performance metrics and rewards should reflect the organisation’s commitment to sustainability, encouraging teams to prioritise long-term outcomes.
• Encourage feedback and continuous learning: Complex environments require continuous adaptation. Regular feedback—both qualitative and data-driven—allows teams to iterate and improve. Regular feedback loops help teams to learn from their experiences and refine their approaches. This is particularly important in complex systems, where outcomes are often uncertain.

Empowerment and autonomy: required sustainability competencies of future professionals

Achieving sustainability in a complex environment requires innovative approaches that transcend traditional organisational structures. Self-management and shared leadership provide complementary frameworks for navigating complexity, fostering resilience, and driving systemic change. By empowering individuals and promoting collaboration, these models not only enhance organisational effectiveness but also align with the ethical imperative to balance environmental, social, and economic priorities.

Organisations and communities that embrace these principles can become pioneers in the global movement toward sustainability, demonstrating that adaptive, inclusive, and forward-thinking leadership is not just desirable but essential for a sustainable future.

The challenges of sustainability demand approaches rooted in systems thinking, participatory processes, and long-term orientation. Self-management and shared leadership provide synergistic frameworks for building the adaptability, inclusivity, and innovation necessary to meet these challenges (Metcalf & Benn 2013). By embedding empowerment and autonomy within our HR strategies and pedagogical practices, Haaga-Helia not only advances these concepts institutionally but also equips future professionals with the competencies required to thrive in an increasingly complex world.

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