“Survival of the fittest” originates from Darwinian evolutionary theory and states that individuals who are best adapted to their environments are more likely to survive. It implies that environmental changes happen to us, not that we make those changes happen.

Plants and animals are not in the driver’s seat if there is a water shortage; they have no other choice than to adapt to that environmental change in order to survive. But humans are able to create the future they want to see. Like the driver of a car, we give directions and manage available resources such as tires, fuel, battery, and oil temperature. However, like in Formula 1 racing, faster is not always better. If you don’t manage your tires well, they can blow out. “To finish first, you must first finish,” says Juan Manuel Fangio, one of the greatest Formula 1 drivers of all time. Just as there are boundaries to speed, there are also limits to growth.

In 1972, an international team of researchers at the Massachusetts Institute of Technology, known as the Club of Rome, published the report “The Limits to Growth.” It states that human life on Earth can be indefinitely sustained only if our society establishes limits that “achieve a state of global equilibrium with population and production in carefully selected balance.” This might have been when the life-centered economy movement started.

At the time, our planet’s population was less than 50% of today’s. Now, visible climate change, resource depletion, and growing income inequality are just a few of the problems that require innovative solutions. Adopting a life-centered economy has become an urgent necessity. If we want to have a future at all, we must focus on more than addressing people’s short-term needs. This is an offer to us all to take a more holistic view when addressing the pressing environmental, social, and economic challenges facing humanity – an offer to rethink our environmental and ethical values and even how we define values in general. We need a plan B to keep Earth livable in the absence of a planet B.

The evolution of design approaches

Human-centered design (HCD) goes back to the 1920s and 1930s. Designers like Henry Dreyfuss and Raymond Loewy focused on creating products that were user-friendly, aesthetically pleasing, and functionally efficient.

In the 1990s, David Kelley, founder of IDEO, a global design and innovation company, played a significant role in popularizing HCD and bringing it to the forefront of design practice. He is considered the godfather of design thinking and introduced the three central components to balance when developing innovative solutions: desirability, feasibility, and viability. Later, organizations like the Stanford d.school and the Hasso Plattner Institute of Design played a significant role in advancing the principles of HCD through education and research.

The focus was on developing empathy for users’ needs and determining how to address them through questions such as: Do people want it (desirability)? Can we build it (feasibility)? Can we make money with it (viability)? As the name describes, the philosophy assumes humans as the main stakeholders, with little focus on environmental factors such as water, air, and plants. But when no more drinking water comes out of the tap, a person’s desire for something such as a 20% longer battery life in their new smartphone will vanish. This may seem a rather bleak and extreme scenario, but it’s much closer than we realize and requires attention – not only from individuals but from organizations across the globe.

Life-centered design (LCD) offers a more holistic method than HCD, since the latter alone cannot get us out of the crisis we created. It focuses on creating solutions that benefit both humans and the environment while minimizing negative effects. This method is not merely about addressing a single issue; it considers the entire ecosystem and its interconnected components. Like the equilibrium the Club of Rome referred to, we might learn from nature how to keep things in balance by adding responsibility to our mindset.

The additional responsibility bubble reflects environmental and ethical values in the diagram below:

Source: M. Borthwick et al., Journal of Responsible Technology Volume 10 (2022). The lens of life-centered design expands the human-centered model of innovation (as originally published by IDEO) by adding environmental and ethical considerations.

In short, the current paradigm shift is from “Me2We.” The application of LCD principles on a larger scale can be seen as a vehicle to support the transformation toward a life-centered economy. As an economy of nature, it protects the interests of as many stakeholders as possible rather than just a few. It aims to create a sustainable future that benefits both humans and the environment while simultaneously ensuring wealth in its original meaning: wealth comes from the Middle English word “wele,” which means well-being, welfare, or prosperity.

Sources: https://download.e-bookshelf.de/download/0007/7631/41/L-G-0007763141-0015793831.pdf *https://en.wikipedia.org/wiki/Business\_Model\_Canvas (Gabler-Springer 2017 J. Brocke, M. Fay, M. Böhm, V. Haltenhof) pages 197-218

The building blocks of the life-centered economy

In “Reframing and Transforming Economics Around Life,” Sandra Waddock describes the core requirements for economics supporting all life on the planet. Building on those core concepts, here is our take on the main building blocks of a life-centered economy. One category is composed of an ecological cluster (green blocks in the below figure); the other category is more geared toward a mindset and a way of working (blue blocks in the below figure).

1. Education and awareness promote education for sustainable development, raise awareness about the importance of a life-centered economy, and foster a culture of sustainability.

2. Well-being and equitable markets and trade ensure access to basic needs such as healthcare, education, clean water, and sanitation for all individuals while reducing inequalities and promoting social cohesion.

3. Ethical considerations should be integrated into economic decision-making. This concept acknowledges the intrinsic value of all life, promotes animal welfare, and respects the rights and well-being of indigenous communities and marginalized groups. It also considers intergenerational equity, ensuring that the needs of present and future generations are met.

4. Holistic metrics are necessary to move beyond traditional economic indicators such as gross domestic product. They measure well-being, social progress, and environmental effects. This includes metrics such as the genuine progress indicator, the Social Progress Index, and the ecological footprint.

5. Collaboration and stakeholder engagement includes governments, businesses, civil society organizations, and communities. It involves participatory decision-making processes that incorporate diverse perspectives and ensure accountability.

6. Regenerative practices involve shifting from a linear “take-make-dispose” model to a net-positive, circular economy. They recognize the interconnectedness of ecosystems and the finite nature of Earth's resources.

7. Localized and resilient systems reduce the dependency on long-distance transportation and promote self-sufficiency. They include supporting local food systems, community-based renewable energy projects, and decentralized economic structures that empower local communities.

8. Sustainable consumption and production involve promoting responsible consumption choices, reducing waste and overconsumption, and encouraging the development of sustainable technologies and industries.

Challenges and opportunities in adopting a life-centered economy economy

Adopting a life-centered economy poses some challenges when it comes to prioritizing ecological sustainability, social well-being, and economic resilience within a holistic framework. However, the challenges also come with opportunities.

To effectively implement a life-centered economy, businesses must develop a deep understanding of the interconnected nature of our global ecosystem. This requires a mental shift toward systems thinking, with decision-makers considering the broader effects of their actions on society and the environment. Traditional linear planning and decision-making may be insufficient in a world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA). The VUCA framework encourages individuals and organizations to develop the ability to accept change, think strategically and holistically, and be responsive to new challenges.

Another key challenge in creating a life-centered economy is balancing short-term profit goals with long-term sustainability objectives. A life-centered method can help businesses address today’s issues while creating new opportunities for growth and prosperity. By focusing on both the present and the future, companies can generate value for their stakeholders and contribute to a healthier planet. It doesn’t necessarily have to be profit vs. purpose and planet.

Change is often met with resistance, but business leaders must remain steadfast in their commitments to a life-centered economy. Emphasizing the long-term benefits and aligning organizational culture with sustainability values can help drive transformation. Developing the skills and expertise required to implement a life-centered economy can be challenging. On the other hand, it’s an opportunity for businesses to invest in workforce development and create new job opportunities in the green economy.

Revolution or evolution?

A life-centered economy constitutes both a revolution and an evolution, as it requires a fundamental shift in the way we understand economic systems and how we define value while building on existing concepts of sustainability and social responsibility. This transition is necessary to ensure a prosperous and sustainable future for all.

Business leaders and strategic thinkers with a focus on the well-being of people and the planet must take steps to understand and implement life-centered economy principles in their organizations. In the absence of a planet B, let’s continue the journey toward a life-centered economy.

As Edward Everett Hale states and John Lodenkamper et al. quote in Toward a Life-Centered Economy:

I am only one, but I am one.

I cannot do everything, but I can do something.

And I will not let what I cannot do interfere with what I can.

Perspectives:

• Interview | Part 1: Understanding the Concept of a Life Centered Economy with Prof. Sandra Waddock

In 60 Seconds:

• Envision Beyond in 60 Seconds: The Economy of Nature

Read more in this series