How can the benefits of a Circular Economy be captured? Assessing the potential for impact and uptake of circular practices is challenging without considering why certain problems occur, and how potential interventions will affect other parts of the industrial system. Therefore, we propose a novel method to circular oriented innovation that facilitates understanding the problem space - the current situation and the problem(s) that need to be addressed, as well as the solution space -how circular strategies can best be leveraged to address them. This method, titled Circularity Thinking, combines a systemic outlook with visual tools that can be used as a common conceptual 'red thread' to enable dialogues between different disciplines and diverse perspectives within organisations. Moreover, it can serve as the 'glue' between a range of tools and approaches that focus on specific elements of circular innovation such as product design, business modelling and impact assessment.