During our Managerial Excellence Masterclass, we had the honor of welcoming François-Michel Lambert, an expert in the circular economy and co-author of reference works with Walter Stahel. With him, we explored the transition from a linear economy to a performance economy—where the point of sale and the checkout are no longer just the end of the line but the starting point of the circular process. Here are the key points from this session.
Linear economy vs. circular economy
François-Michel Lambert pointed out that the linear economy (extract, produce, consume, discard) is reaching its limits: resource scarcity, waste accumulation, climate impact, and pressure on ecosystems. The circular economy aims to reduce (at the source), reuse, recycle, and design products and services to extend their life and regenerate ecosystems. The conceptual shift is major: the point of sale and the cash register are no longer just the end of the chain—they become the starting point for a performance logic based on usage, repair, reuse, and the recovery of end-of-life products. This reversal requires rethinking the entire value chain.
Performance and new business models
Performance is no longer measured solely by sales volume but by the value created throughout the life cycle—design, production, usage, and end-of-life. Business models are evolving: leasing instead of selling, service-based models (performance, availability), deposits, repairs, and reconditioning.
Leaders and managers must rethink indicators (reuse rates, product lifespan, waste reduction) and get their teams on board with this transition.
Resistance is often cultural (“we’ve always sold new products”); the role of leadership is to show that circularity creates sustainable value and differentiation while meeting regulatory and societal expectations.
The manager’s role: translate, train, and promote
The manager plays a key role in translating circular strategy into concrete daily actions (processes, objectives, decision criteria), training teams on new challenges (eco-design, sorting, repair, reverse logistics), and promoting initiatives that reduce waste and create sustainable value. It is also about breaking down silos: circularity involves marketing, R&D, production, logistics, and sales—everyone must understand their role in the life cycle. Feedback from the field (staff, customers, partners) is invaluable for adjusting models and indicators.
Regulatory challenges and opportunities
François-Michel Lambert discussed regulatory challenges (European directives, EPR, reuse obligations, etc.) that are accelerating the transition and creating a clearer competitive framework. Companies that anticipate and integrate circularity into their strategy gain resilience (less dependence on raw materials, new sources of value) and legitimacy with stakeholders. The manager is on the front line to bridge the gap between strategy, law, and operations.
In a nutshell…
- Linear → circular: the point of sale as the starting point for a logic of performance and reuse; reduce, reuse, recycle, regenerate.
- Performance: measuring value across the entire life cycle; new models (leasing, service, deposits, repair); rethinking indicators.
- Manager: translating strategy into action, training on circular issues, promoting initiatives, breaking down silos; regulatory challenges and opportunities.
Don’t miss the next Masterclass!