Refining integrated thinking

Purpose Integrated thinking involves a holistic, multi-capital approach to decision-making and operations to promote value creation and sustainability. This paper aims to outline a schematic which can be used to gauge the levels of integrated thinking by organisations. Design/methodology/approach The researchers partnered with an independent consulting firm (Sustain-X) which has developed a tool for evaluating integrated thinking. A two-stage mixed-method design is used to evaluate the tool. Firstly, in keeping with the exploratory nature of the paper, the tool's integrated thinking principles and indicators are contrasted with findings from an extensive review of the integrated thinking research and interviews with experts on how integrated thinking is understood and operationalised. Secondly, the tool was applied to a sample of South African listed firms' integrated reports and used to generate integrated thinking scores. These scores are evaluated by testing the strength of their association with other generally accepted proxies for integrated thinking. Findings The principles of the schematic include integrated awareness and understanding; integrated leadership commitment and capability; integrated structures; integrated organisational performance management; and integrated external communication. Empirical results show that the integrated thinking measures generated using the Sustain-X schematic are aligned with integrated report quality scores and ratings of the sophistication of organisations' accounting, management and governance structures. Research limitations/implications A combination of earlier research findings, detailed interviews (conducted independently of Sustain-X) and a battery of quantitative tests have been used to evaluate the schematic, but more refined testing using additional case studies or ethnographies has been deferred. Practical implications The tool offers a practical means for stakeholders to evaluate integrated thinking. It is flexible enough to be used with data collected during private engagements with companies or only publicly available information. Social implications The schematic is one of the first to outline the dimensions of integrated thinking and should be useful for academics and practitioners concerned with the development and application of integrated thinking. Originality/value This paper adds to the literature on integrated thinking and answers the call for further research to evaluate integrated thinking practices.

Automated summary

This paper aims to outline a framework for evaluating the level of integrated thinking in organizations, and validates the framework by scoring integrated reports of South African listed firms. The results show that the integrated thinking measures generated using the framework are aligned with integrated report quality scores and ratings of the sophistication of organizations' accounting, management and governance structures.