Managing Organizational Changes

UN Secretariat Human Resources Network Meeting

Dr. C. Otto Scharmer MIT Sloan School of Management scharmer@MIT.EDU www.ottoscharmer.com April 28, 2009, New York

Two Sources of Learning, Two Learning Cycles

A. Learning by reflecting on the experiences of the past act - observe - reflect - plan - act B. Learning from the future as it emerges (presencing)

Four Levels of Responding to Change

Manifest action

1. Reacting: quick fixes

Process, structure

2. Redesigning: policies

Thinking Source of energy, inspiration and will

3. Reframing: values, beliefs

4. Regenerating: sources of commitment and energy

The Blind Spot of Leadership

Results: What

Process: How

Source: Who
Blind Spot: Inner place from where we operate

The success of an intervention depends on the interior condition of the intervenor.

William OBrien,
former CEO of the Hanover Insurance Company

Levels of Listening
LISTENING 1: Downloading from habits habits of judgment LISTENING 2: Factual from outside listening
noticing differences

reconfirming old opinions & judgments

Open Mind

disconfirming [new] data seeing through another persons eyes emotional connection

LISTENING 3: Empathic from within listening

Open Heart Open Will

LISTENING 4: Generative from Source listening

(from the future wanting to emerge)

connecting to an emerging future whole; shift in identity and self

On the Core Process of Profound Innovation

Brian Arthur, Santa Fe Institute

3 Movements of the U
Downloading

Observe, observe, observe

Act in an instant

Retreat and reflect: Allow the inner knowing to emerge

U-Process: 1 Process, 5 Stages

1. Co-initiating: uncover common intent
stop and listen to others and to what life calls you to do

5. Institutionalizing: embody the new in larger systems that facilitate acting from the whole

2. Co-sensing:

4. Co-creating:

observe, observe, observe

connect with people and places to sense the system from the whole

prototype the new

in living examples to explore the future by doing

3. Presencing: connect to the source of inspiration and will

go to the place of silence and allow the inner knowing to emerge

Selecting Prototyping Ideas for Large Systems Change

Right: Have you got the right dimensions? Does the microcosm mirror the whole?

Rapid: Can you do it quickly?

Rough: Can you do it small scale? Relevant: Does it matter to the key stakeholders involved? Revolutionary: Can it change the system? Do you address the systemic root issues? Relationally effective: Are you leveraging the existing networks and competencies? Replicable: Can you scale it?

ELIAS, 2006-07, 28 participants, all sectors

Theory U
Downloading
past patterns

Performing by
operating from the whole

suspending

embodying

VoJ

Seeing
with fresh eyes

Open Mind

Prototyping the new by

linking head, heart, hand

redirecting

VoC

Sensing
from the field

Open Heart
Open Will
Presencing
connecting to Source

enacting
Crystallizing
vision and intention

VoF

letting go

letting come

Who is my Self? What is my Work?

Field: Structure of Attention

Micro:
THINKING (individual)

Meso:
CONVERSATION (group)

Macro:
STRUCTURING (institutions)

Mundo:
ECOSYSTEM (global systems)

Listening 1:
Downloading habits of thought

Downloading:
Talking nice, politeness, rule-reenacting

Centralized:
Machine bureaucracy

Hierarchy:
Central plan, regulation

I-in-me Listening 2:
Factual, object-focused

Debate:
Talking tough, rule-revealing

Decentralized:
Divisionalized

Market:
Competition

I-in-it

Listening 3:
Empathic listening

Dialogue:
Inquiry, rule-reflecting

Networked:
Relational

Dialogue:
(Mutual adjustment)

I-in-you Listening 4:
Generative listening

Presencing:
Collective creativity, flow rule-generating

Ecosystem:
Ba

Common Will: Operating from the emerging Whole

I-in-now

Stop downloading: habitual routines

clear calendar be visible hold the space

Performing: infrastructures for high performing organizations

cross-functional: division cross-company: supply chain cross-sector: innovation ecosystems

Observing: connect and listen in real time

listen to frontline share big picture awareness on impact

Open Mind

Prototyping the new by linking head, heart, hand

speed: act now, iterate fail early to learn quickly dialogue with the universe

Sensing: connect to driving forces of change

sensing journeys suspend VoJ, VoC, clarify the essential core VoF

Open Heart
Open Will

Inspiring: communicate vision and intention

the story of us the story of self the story of now

Presencing: connect to the sources of your authentic Self

Personal practices: places of stillness: Who is my Self? What is my Work? peer coaching practices: deep listening leadership offsites: our collective journey 2007 C.O. Scharmer

Field: Structure Of Attention

Field
1 Downloading: Talking nice Speaking from what they want to hear Polite routines, empty phrases Autistic system (not saying what you think) Speaking from what I think Divergent views: I am my point of view Adaptive system (say what you think) Speaking from seeing myself as part of the whole From defending to inquiry into viewpoints Self-reflective system (reflect on your part) Speaking from what is moving through Stilness, collective creativity, flow Generative system (identity shift: authentic self)

I-in-me 2 Debate: Talking tough I-in-it 3 Dialogue: Reflective inquiry I-in-you 4 Presencing: Generative flow I-in-now

Patients

Event

Physicians

I. Repair

Defect

Mechanic

II. Therapy
III. Reflection

Behavior
Thought

Instructor
Coach

IV. Self-Transformation

Self

Midwife for bringing forth the New

Current Reality Desired Future Patients Event Physicians

I. Repair

Defect

Mechanic

II. Therapy

Behavior
Thought

Instructor
Coach

III. Reflection
IV. Self-Transformation

Self

Midwife for bringing forth the New

Resources and Literature

Scharmer, C. Otto (2007). Theory U: Leading from the Emerging Future As It Emerges. The Social Technology of Presencing), Cambridge, MA: SoL Press.
Senge, P., C. O. Scharmer, J. Jaworski, and B. S. Flowers. (2004). Presence: Human Purpose and the Field of the Future, Cambridge, MA: SoL Press. Scharmer, C.O. (2001). Self-transcending knowledge: Sensing and Organizing Around Emerging Opportunities. In: Journal of Knowledge Management, Vol. 5, no. 2: 137150.

www.presencing.com www.ottoscharmer.com