Creating an investment methodology for systems change: the Good Investors experiment

An experiment is an organised learning experience to accelerate multi-system transformations based on Deep Transitions research, tools and frameworks. We explore goal setting, investment strategies, and processes. We aim to generate new knowledge and foster learning that transforms beliefs and behaviours, as well as gearing investment practices towards the long-term and creating a resilient portfolio. The Good Investors (TGI) is an investment collective of family offices, as well as a fund. Operating internationally, they focus on investing in and managing investments that catalyse systems change. Together, we aimed to assess the transformative potential of a portion of the systemic fund focused on the food system. Using the DT framework, we built practical skills, knowledge, and experience in implementing transformative investment contributing to desirable future worlds. We also focused on strengthening TGI methodologies to catalyse, accelerate, and consolidate systems change.

In the next few paragraphs, we provide a taster of the experiment. Read the full case study here.

“Our first experiment has been such an enriching experience – developing our knowledge and strengthening our methodologies.”

– Maria Kloosterman, Business Development & Community Relations, The Good Investors

Experiment results

• After the experiment, the TGI team made multiple changes in their investment methodology to ensure investments were contributing to system change.

• The TGI team integrated DT tools into their methods, such as regime mapping, visualisation of desirable worlds and transformation pathways. (You’ll learn more about these tools as you read further.) 

• The team developed a Transformative Theory of Change that provides short and medium-term action pathways and a way to create a robust monitoring, evaluation and learning plan.

• There was a high degree of second-order learning within the team (rethinking underlying assumptions that shape investment decisions).

Changing the TGI investment methodology

This image shows how and where TGI’s methodology changed after the experiment. The DT team helped to strengthen the methodology in all of the four stages.

How we did it

Across five workshops, over the course of six months, we first took the group through DT foundational thinking and then used this knowledge to look at a specific portfolio. Online interactions and further refinement of strategies between workshops also took place, maintaining a flowing communication to catalyse efforts and align interests.

The experiment followed a portfolio experiment workflow:

Workshop 1

We introduced core concepts, dynamics, and insights of DT theory, building a shared language and putting the concepts into practice.

Workshop 2

We developed a comprehensive understanding and mapping of the existing food system, viewing it through the investment lens. We then explored the visions of future food systems that align with systemic change and sustainability, and discussed investments required to contribute to this future.

Workshop 3

We co-created transition pathways and a Theory of Change, understanding where to intervene through investments and how to measure change.

Workshop 4

We assessed the fund using the latest draft of the Systemic Fund TToC. We reflected on the existing investments and methodologies to identify strategies for aligning them with the Systemic Fund TToC.

Workshop 5

We discussed the main outcomes resulting from the experiment and reflected on the journey from a second-order learning perspective.

“A very interactive and fluid process with the DT team that was sensitive to our constraints and needs or quickly adapted to them.”

– The Good Investors team

Our methodology

There are three main stages to the DT methodology:

Rules and mapping

To begin an experiment, we need to understand the system or systems in which the portfolio is intervening. To move towards systems change, we must understand what is broken in the system first. For this, we need to map rules. A rule is a humanly devised constraint and enabler that structures

human action leading to a regular pattern of practice. For example: Food system rule: Develop technologies mainly for large-scale, industrial, intensive and standardised farming practices.

Niches and futures

New rules begin life as niches (alternative practice), which can be nurtured. To do this, we look for niches within a system and develop a desirable future we want the investments to contribute towards.

Transformative pathways

Finally, we need to understand how to reach the desirable future. To do this, we need to map transformative pathways.

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Read the full case for a deeper dive into how our methodology helped to strengthen the TGI investment methodology (you can find this on page 8 of the download). You can also learn more about the Deep Transitions framework to implement systems change over on our learning hub.