How Change Happens Webinar 08 June

David OsborneJill HinsonChangeFusion, LLC

“ , ’ In the world of unknown unknowns we can t hope to precisely predict the behaviorof critical

, ' systems and we shouldn t presume that we can . manage behaviorwith precision either ”

-Thomas Homer Dixon

How Change Happens

Rapid Escalation of Complexity

CEO’ s are telling us that the complexity of operating in an increasingly volatile and

uncertain world is their primary challenge.”IBM CEO study 2010

“ We know disruptive competitors can open or close an opportunity overnight.

This drives our need for constant innovation.”

“ We are seeing changes in the world’ s infrastructure and there are huge one of a kind business opportunities emerging.”“ Change is happening so fast it is hard to

know who your competitor is. Assumptions that seemed iron clad 12

months ago are obsolete today.”

“ The business environment is becoming less predictable.”

“ The pace of change is extraordinary.”

ChangeFusion NVTC study 2010

Years it took to reach a market audience of 50 million

From HBS/XPlane Imagine Leadership Video

The landscape… …

Organized

Complex

Chaotic

From R. Stacy, adapted by B Zimmerman

How change happens

Complexity Science

Interconnected, diverse,

multiple agents

Individual freedom to act Unpredictable

High degree of adaptive capacity

Collectively create system-wide patterns

v

What are complex adaptive systems? [ ]

“ - Se lf organization provide s a powerful

new mode l for guiding organizational change

that s urpas s e s the hie rarchically contro lled

- . and re s is tance bus ting s trateg ie s of the pas t ”

( , 1994) Golds te in

How Change Happens: Pattern Shift

COLLABORATION

• What is a change your organization/community would like to make?

• How can you frame it as a pattern shift? -

Pattern Shift = Change[ ]

Elements that enable change

Patte rns are c reated by the inte rac tion of the s e thre ee lements

, Glenda Eoyang HSD Ins titute . CDE From G Eoyang

Container Differences Exchanges

Container

Defines Boundaries

Holds Elements Together

Types of Containers

Physical

-Building- Room- Virtual

Time

- Meeting- Conference- Event

Conceptual

- Concept- Idea- Focus Area

Relational

- Team- Department- Organization- Market

Change Leverage Point: Tighten or Loosen the Container

Container Example

– By expanding the container change emerge s

Container

MagazineMarket

Expand the Container

Change Emerges

ProductionConsumptionAdvertisingRevenue Streams

Change Leverage Point: Increasing or Decreasing Differences

Differences

What’ s the “ difference that makes a difference?”

KnowledgeInformationExpertise

ResourcesAccessPower

Values BeliefsNorms

Expectations

LocationCompanyGender

Language

Change Leverage Point: Increase or Decrease Differences

Infinite number of potential differences

Change Leverage Point: Strengthen or Reduce Exchanges

What- Connections between

agents, employees, stakeholders etc

- Enable resources to be exchanged

Exchange

Exchange Dimensions Exchange

Length Long Short

Width Wide Narrow

Dynamic Amplifying Dampening

DirectionOne-Way

Top - DownTwo-Way

Open

C-D-E Example: Open Sourcing : – New Pattern Fas te r New Produc t Marke t Cyc leTime

Internal R&DTo

GlobalConnect & Develop

# of ExpertsTransparency

Short, Focused2-way

IncreasedExponentially

Container ExchangeDifferences

“ We have learned that

neuroplas tic ity is not only pos s ible but cons tantly in. ac tion That is the way we adapt to

, new s ituations le arn new fac ts

and deve lop new.s kills ”

, Mark Halle tt NIH

How change happens

Hardwiring & Mental MapsError Detection SignalsNeuroplasticityWhat this all means… …

Neuroscience [ ]

Neuroscience: “ hard-wiring”

Neuroscience: cognitive dissonance & “ error detection signal”

Dissonance produces anxiety that motivates us

to change

Brain sends signals when it detects changes in the

environment

Neuroplasticity….the

good news[ ]The very structure of our brain – the relative

size of different regions, the strength of connections – reflect the lives we have led.”

Sharon Begley

NEW CONNECTIONS &

GROW NEW NEURONS

RE-ZONE

• Our actions and thoughts expand or contract different regions of the brain

• The brain devotes more “real-estate” to the areas we use more often

• Our brain prunes unused connections

• Through conscious effort, we can dampen signals from one part of the brain or amplify others

• New connections release a short burst of positive energy

Neuroscience: What it means for how change happens..

EXPERIENCE & EXPECTATION

REPETITION

ATTENTION

Based on what your organization/community

focuses on, attends to, re-enforces, and repeats

what behaviors are “hard-wired”?

: Change Re framing How Change Happens in Organizations

Program elements include

Tools from Human Systems Dynamics• Adaptive Action• CDE • Human Systems Dynamics Simulation

Principles of complexity science to inform how change happens• Emergence• Self-Organizing Criticality

Neuroscience’s contribution to individual change and “ah-ha” moments

Principles of social networks applied to enable innovation and adaptation

Boutique organizational developmentfirm that combines business experiencewith human systems change expertise.

Thinking Partner &

Coach

Training &

Facilitation

Change Strategy & Execution