1. 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
What I would like to do is to share some work in progress.
Three streams of experience

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)
© 2005 C.O. Scharmer

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 creativity

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

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. 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

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

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

9. 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

10. 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

11. 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

12. 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
© C.O. Scharmer

13. 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
© C.O. Scharmer

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

15. 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

16. 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

17. 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

18. 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

19. 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?

20. 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.