MIT Sloan School of Management Theory U: Leading in Times of Crisis LGO/SDM Alumni Web Seminar February 20, 2009 Dr. C. Otto Scharmer MIT Sloan School of Management scharmer@MIT.EDU, www.ottoscharmer.com What I would like to do is to share some work in progress. Three streams of experience

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) © 2005 C.O. Scharmer

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 creativity

The Blind Spot of Leadership Results: What Process: How Source: Who Blind Spot: Inner place from that we operate © 2007 C.O. Scharmer

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

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

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

Allow the inner knowing to emerge Downloading Observe, observe, observe Act in an instant Retreat and reflect: Allow the inner knowing to emerge

Downloading past patterns Performing by operating from the whole suspending embodying Open Mind Seeing with fresh eyes Prototyping the new by linking head, heart, hand VoJ redirecting Open Heart enacting 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? © 2007 C.O. Scharmer

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: observe, observe, observe connect 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 © 2007 C.O. Scharmer

Dialogue: Reflective inquiry Field- Structure Of Attention Field Speaking from what they want to hear Polite routines, empty phrases Autistic system (not saying what you think) 1 Downloading: Talking nice 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 3 Dialogue: Reflective inquiry Speaking from seeing myself as part of the whole From defending to inquiry into viewpoints Self-reflective system (reflect on your part) 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 © 2007 C.O. Scharmer

Midwife for bringing forth the New Patients Physicians Event I. Repair Defect Mechanic II. Therapy Behavior Instructor III. Reflection Thought Coach IV. Self-Transformation Self Midwife for bringing forth the New © 1999 C.O. Scharmer

Midwife for bringing forth the New Current Reality Desired Future Patients Physicians Event I. Repair Defect Mechanic II. Therapy Behavior Instructor III. Reflection Thought Coach IV. Self-Transformation Self Midwife for bringing forth the New © 1999 C.O. Scharmer

ELIAS, 2006-07, 28 participants, all sectors

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

Attentional action Listening 1: I-in-me Listening 2: I-in-it Field: Structure Of Attention Attentional action Listening 1: Downloading habits of thought I-in-me I-in-it I-in-you I-in-now Listening 2: Factual, object-focused Listening 3: Empathic listening Listening 4: Generative listening

Conversational action Field: Structure Of Attention Attentional action Conversational action Listening 1: Downloading habits of thought Downloading: Talking nice, politeness, rule-reenacting I-in-me I-in-it I-in-you I-in-now Listening 2: Factual, object-focused Debate: Talking tough, rule-revealing Listening 3: Empathic listening Dialogue: Inquiry, rule-reflecting Listening 4: Generative listening Presencing: Collective creativity, flow rule-generating

Conversational action Organizational action Global action Field: Structure Of Attention Attentional action Conversational action Organizational action Global action Listening 1: Downloading habits of thought Downloading: Talking nice, politeness, rule-reenacting Centralized: Machine bureaucracy Hierarchy: Central plan I-in-me I-in-it I-in-you I-in-now Listening 2: Factual, object-focused Debate: Talking tough, rule-revealing Decentralized: Divisionalized Market: Competition Listening 3: Empathic listening Dialogue: Inquiry, rule-reflecting Networked: Relational Dialogue: (Mutual adjustment) Listening 4: Generative listening Presencing: Collective creativity, flow rule-generating Ecosystem: Ba Presence: Operating from the emerging Whole

Selecting Prototyping Ideas for Large Systems Change Rapid: Can you do it quickly? Rough: Can you do it small scale? Right: Have you got the right dimensions? Does the microcosm mirror the whole? 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?

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. Kahane, A. (2004). Solving Tough Problems: An Open Way of Talking, Listening, and Creating New Realities (San Francisco: Berrett-Koehler). 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