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Dr. C. Otto Scharmer MIT Sloan School of Management [email protected] , www.ottoscharmer.com Theory U: Leading in Times of Crisis LGO/SDM Alumni Web Seminar February 20, 2009

Dr. C. Otto Scharmer MIT Sloan School of Management [email protected]@MIT.EDU, Theory U: Leading in Times of Crisis LGO/SDM

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Dr. C. Otto ScharmerMIT Sloan School of Management

[email protected], www.ottoscharmer.com

Theory U: Leading in Times of Crisis

LGO/SDM Alumni Web Seminar

February 20, 2009

© 2009 C.O. Scharmer

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

© 2009 C.O. Scharmer

Four Levels of Responding to Change

1. Reacting: quick fixes

3. Reframing: values, beliefs

2. Redesigning: policies

4. Regenerating: sources of commitment and creativity

Source of energy, inspiration and will

Manifest action

Thinking

Process, structure

© 2009 C.O. Scharmer

Source: Who

Blind Spot: Inner place from that we operate

Process: How

Results: What

The Blind Spot of Leadership

© 2007 C.O. Scharmer

© 2009 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

© 2009 C.O. Scharmer

Levels of Listening

disconfirming [new] data

LISTENING 2: from outside

Factual listening noticing differences

seeing through another person‘s eyesemotional connection

LISTENING 3:

from within

Empathic listening

reconfirming old opinions & judgments

Downloadinghabits of judgment

LISTENING 1:

from habits

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

LISTENING 4: from Source

Generative listening(from the future wanting to emerge)

Open Will

Open Heart

Open Mind

© 2009 C.O. Scharmer

Brian Arthur, Santa Fe Institute

On the Core Process of Profound Innovation

© 2009 C.O. Scharmer

Downloading

Observe,observe,observe

Retreat and reflect:Allow the inner

knowing to emerge

Act in an instant

suspending

redirecting

letting go

Open

Will

Open Heart

Open Mind

Seeingwith fresh eyes

Sensing from the field

Prototyping the new by linking head, heart, hand

Crystallizing vision and intention

embodying

enacting

letting come

Presencing connecting to Source

Performing by operating from the whole

Downloadingpast patterns

Who is my Self? What is my Work? © 2007 C.O. Scharmer

VoJ

VoC

VoF

1. Co-initiating: uncover common intent

stop and listen to others and to what life calls you to do

2. Co-sensing: observe, observe, observe connect with people and places

to sense the system from the whole

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

U-PROCESS: 1 PROCESS, 5 STAGES

© 2007 C.O. Scharmer

I-in-me

I-in-it

I-in-you

I-in-now

Field-StructureOf Attention

1Downloading:

Talking nice

2Debate:

Talking tough

3Dialogue:

Reflective inquiry

4Presencing:

Generative flow

Field

Speaking from what I thinkDivergent views: I am my point of viewAdaptive system (say what you think)

Speaking from seeing myself as part of the wholeFrom defending to inquiry into viewpointsSelf-reflective system (reflect on your part)

Speaking from what they want to hearPolite routines, empty phrasesAutistic system (not saying what you think)

Speaking from what is moving throughStilness, collective creativity, flowGenerative system (identity shift: authentic self)

© 2007 C.O. Scharmer

I. Repair

II. Therapy

III. Reflection

IV. Self-Transformation

Event

Defect

Behavior

Thought

Self

Mechanic

Instructor

Coach

Midwife for bringing forth

the New

Patients

Physicians

© 1999 C.O. Scharmer

I. Repair

II. Therapy

III. Reflection

IV. Self-Transformation

Event

Defect

Behavior

Thought

Self

Mechanic

Instructor

Coach

Patients

Physicians

Current RealityDesired Future

© 1999 C.O. Scharmer

Midwife for bringing forth

the New

© 2009 C.O. ScharmerELIAS, 2006-07, 28 participants, all sectors

© 2009 C.O. Scharmer

Open

Will

Open Heart

Open Mind

Stop downloading: habitual routines

Observing: connect and listen in real time

Sensing: connect to

driving forces of change

Prototyping the new by linking head, heart, hand

Inspiring: communicate vision and intention

Presencing: connect to the sources of your authentic Self

Performing: infrastructures for high performing organizations

© 2007 C.O. Scharmer

clear calendarbe visiblehold the space

listen to frontlineshare big pictureawareness on impact

sensing journeyssuspend VoJ, VoC, VoFclarify the essential core

Personal practices: places of stillness: Who is my Self? What is my Work?peer coaching practices: deep listeningleadership offsites: our collective journey

the story of usthe story of selfthe story of now

speed: act now, iteratefail early to learn quickly

dialogue with the universe

cross-functional: divisioncross-company: supply chain

cross-sector: innovation ecosystems

© 2009 C.O. Scharmer

I-in-me

I-in-it

I-in-you

I-in-now

Field:Structure

Of Attention

Attentional action

Listening 1:Downloading habits of thought

Listening 2:Factual, object-focused

Listening 4:Generative listening

Listening 3:Empathic listening

© 2009 C.O. Scharmer

Field:Structure

Of Attention

Attentional action

Conversational action

I-in-me

I-in-it

I-in-you

I-in-now

Listening 1:Downloading habits of thought

Downloading:Talking nice, politeness,rule-reenacting

Listening 2:Factual, object-focused

Debate:Talking tough,rule-revealing

Listening 4:Generative listening

Presencing:Collective creativity, flowrule-generating

Listening 3:Empathic listening

Dialogue:Inquiry,rule-reflecting

© 2009 C.O. Scharmer

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

Listening 2:Factual, object-focused

Debate:Talking tough,rule-revealing

Decentralized:Divisionalized

Market:Competition

Listening 4:Generative listening

Presencing:Collective creativity, flowrule-generating

Ecosystem:Ba

Presence:Operating from the emerging Whole

Listening 3:Empathic listening

Dialogue:Inquiry,rule-reflecting

Networked:Relational

Dialogue:(Mutual adjustment)

I-in-me

I-in-it

I-in-you

I-in-now

© 2009 C.O. Scharmer

Selecting Prototyping Ideas for Large Systems Change

1. Rapid: Can you do it quickly?

2. Rough: Can you do it small scale?

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

4. Relevant: Does it matter to the key stakeholders involved?

5. Revolutionary: Can it change the system? Do you address the systemic root issues?

6. Relationally effective: Are you leveraging the existing networks and competencies?

7. Replicable: Can you scale it?

© 2009 C.O. Scharmer

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