The Circular Economy Show Podcast Why do circular business models fail to scale? Going it alone
Nov 4, 2025
Maddy Oliver and Ella Hedley are the lead researchers behind the Ellen MacArthur Foundation's groundbreaking report on circular business models. They dive into the crucial role collaboration plays in scaling these models, emphasizing that success depends on strong internal and external alignment. Maddy shares a cautionary tale of a profitable rental pilot that failed due to lack of early buy-in. They also discuss the importance of shared KPIs and the need for adaptive partnerships to generate long-term value. Both stress that failures can provide valuable lessons for future endeavors.
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Scale Depends On People And Alignment
- Circular business models need coordination across internal and external partners to scale.
- Success depends less on the idea and more on who is empowered and how well they align.
Bring Leaders And Functions In Early
- Involve leadership and cross-functional teams early so they understand and champion the model.
- Map the model to each function's language and KPIs so teams can see how it supports their goals.
High-Margin Pilot Lost Due To Poor Internal Buy-In
- A global retailer ran a rental pilot with eight times the margin of its linear model but used an external partner.
- The pilot was folded because internal teams hadn't been on the journey and couldn't translate benefits to their KPIs.