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  1. Managing Organizational ChangesUN 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

  2. 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)

  3. Four Levels of Responding to Change Manifest action 1. Reacting: quick fixes Process, structure 2. Redesigning: policies Thinking 3. Reframing: values, beliefs Source of energy, inspiration and will 4. Regenerating: sources of commitment and energy

  4. The Blind Spot of Leadership Results: What Process: How Source: Who Blind Spot: Inner place from where we operate

  5. “The success of an intervention depends on the interior condition of the intervenor.” William O’Brien, former CEO of the Hanover Insurance Company

  6. Levels of Listening LISTENING 1:from habits Downloadinghabits of judgment reconfirming old opinions & judgments Open Mind LISTENING 2:from outside Factual listening noticing differences disconfirming [new] data seeing through another person‘s eyesemotional connection Open Heart LISTENING 3:from within Empathic listening Open Will LISTENING 4:from Source Generative listening(from the future wanting to emerge) connecting to an emerging future whole; shift in identity and self

  7. On the Core Process of Profound Innovation Brian Arthur, Santa Fe Institute

  8. 3 Movements of the U Downloading Observe, observe, observe Act in an instant Retreat and reflect: Allow the inner knowing to emerge

  9. U-Process: 1 Process, 5 Stages 1. Co-initiating: uncover common intentstop and listen to others and to what life calls you to do 5. Institutionalizing:embody the new in larger systemsthat facilitate acting from the whole 2. Co-sensing: observe, observe, observeconnect with people and places to sense the system from the whole 4. Co-creating: 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

  10. 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?

  11. ELIAS, 2006-07, 28 participants, all sectors

  12. Theory U Downloadingpast patterns Performing by operating from the whole suspending embodying Open Mind VoJ Seeingwith fresh eyes Prototyping the new bylinking head, heart, hand redirecting enacting Open Heart VoC Sensing from the field Crystallizing vision and intention Open Will letting go letting come VoF Presencing connecting to Source Who is my Self? What is my Work?

  13. Micro: THINKING (individual) Meso: CONVERSATION (group) Macro: STRUCTURING (institutions) Mundo: ECOSYSTEM COORDINATING (global systems) Field:Structure of Attention 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

  14. Stop downloading: habitual routines Performing: infrastructures for high performing organizations clear calendar cross-functional: division be visible cross-company: supply chain hold the space cross-sector: innovation ecosystems Open Mind Observing: connect and listen in real time Prototyping the new by linking head, heart, hand listen to frontline speed: act now, iterate share big picture fail early to learn quickly Open Heart awareness on impact dialogue with the universe Sensing: connect to driving forces of change Inspiring: communicate vision and intention Open Will sensing journeys the story of us suspend VoJ, VoC, VoF the story of self clarify the essential core 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

  15. 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) I-in-me Speaking from what I think Divergent views: I am my point of view Adaptive system (say what you think) 2 Debate: Talking tough I-in-it Speaking from seeing myself as part of the whole From defending to inquiry into viewpointsSelf-reflective system (reflect on your part) 3 Dialogue: Reflective inquiry I-in-you • Speaking from what is moving through • Stilness, collective creativity, flow • Generative system(identity shift: authentic self) 4 Presencing: Generative flow I-in-now

  16. Patients Event Physicians I. Repair Defect Mechanic II. Therapy Behavior Instructor III. Reflection Thought Coach IV. Self-Transformation Midwife for bringing forth the New Self

  17. Current Reality Desired Future Patients Event Physicians I. Repair Defect Mechanic II. Therapy Behavior Instructor III. Reflection Thought Coach IV. Self-Transformation Midwife for bringing forth the New Self

  18. 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: 137–150. www.presencing.com www.ottoscharmer.com