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© Innovation Associates Organizational Learning, 14 Church Street, Hopkinton, MA 01748 Phone: 508 435-7999 DRIVING COMMUNITY CHANGE: DEEPER DIVE Michael Goodman January 14, 2015

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Page 1: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

© Innovation Associates Organizational Learning, 14 Church Street, Hopkinton, MA 01748 Phone: 508 435-7999

DRIVING COMMUNITY CHANGE: DEEPER DIVE Michael Goodman January 14, 2015

Page 2: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Objectives

• Review/apply basic systems thinking framework, principles and tools • Introduce/apply systems archetypes to our challenges

• Incorporate mental models into the archetypes • Consider the implications of systems thinking on our policies/strategies

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Page 3: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Topic Agenda

• Review key ideas in systems thinking • Iceberg review • Iceberg application

– Apply iceberg to your initiative – Share learnings

• Review basic systems language • Introduction to systems archetypes

– Apply archetypes to your initiative – Share learnings

• Going deeper/leverage points – Identifying mental models impeding success – Explore implications on our actions – Share learnings

• Making connections

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Page 4: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Systems Thinking is…

• A language to help us understand more deeply how organizations and complex systems really operate.

• The tools, processes, and principles enabling us to focus on the relationships among the parts, not just the parts.

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Page 5: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Systems Thinking… why?

• Helps us to recognize hidden & unintended consequences

• Enables us to think deeper and wider about effective strategies in complex systems

• Can be helpful when thinking about strategy & change - the short term as well as the long term

• Expands the choices available to us & enables us to focus on higher leverage strategic interventions

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Page 6: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Observations about Systems

• Many of today’s problems were yesterday’s solutions.

• The Law of Unintended Consequences - Systems are seductive… what looks obvious to do often generates non obvious consequences… but NOT right away.

• The Law of Worse Before Better - What works in the short

term typically makes things worse in the long term and what works in the long term often makes things worse in the short term.

• The Law of Compensating Feedback – The harder you push

on the system the harder the system pushes back. • We are prisoners of systemic forces to the extent we are

unaware of their existence and don’t appreciate their power.

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Page 7: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Current Reality (What you have)

Results/Outcomes (What you want)

CREATIVE TENSION

Basics of Strategy & Change: Establishing Creative Tension

Page 8: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Current Reality (What you have)

Results/Outcomes (What you want)

Systems Thinking: •Establish a shared picture of current reality that both honors different perspectives and explains their limitations •Develop clarity about not only what is happening, but also why •Identify root causes of complex, chronic problems •Anticipate unintended consequences of proposed solutions •Clarify leverage points for sustainable improvement in system-wide performance •Anticipate and prevent difficulties from becoming major problems

Basics of Strategy & Change: Establishing Creative Tension

Page 9: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Using Systems Thinking to Understand Current Reality

1. Why do we have the current reality we have? (Diagnosis)

Why do we have this gap (between desired results & current reality)? Why has it persisted? What will prevent or impede change? What are the barriers to improvement?

2. What would be our strategic recommendations for making the most progress on closing the gap based on a systemic view of the current system. (Treatment)

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Page 10: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Deepening Our Understanding of Problems: The Iceberg

TRENDS & PATTERNS

Anticipate Forecast

Why?

What happened?

What’s been happening?

FOCUS ACTION OR RESPONSE

React Firefight EVENTS

Lear

ning

Lev

erag

e

Change Create

STRUCTURE (Forces and Pressures)

QUESTIONS

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External Structures

Organizational Structures

Individual Structures (Mental Models)

Interpersonal Structures

• Regulatory/legal • Socio-economic • Technology • Political climate • Community norms/standards • Public awareness/pressure

• Organizational • Structure/Hierarchy • Organizational Processes • Client Interface • Reward System • Information System/Flow • Cultural Norms • Written & Unwritten Rules • Policies/procedures/processes

• How I Think • How I View Myself and My Role • My Beliefs and Assumptions • Style/behavioral preferences

• Roles and Role Flexibility • Relational Skills • Ability to Recognize & Capitalize on Diversity • Problem Solving/Decision Making

Sources of Pressures or Forces

STRUCTURE

Events

Trends/Patterns

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Page 12: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Sample Elements of Structure that Generate Forces & Pressures

• State/local regulations & laws • General economy • Local economy • Financial resources/capital (e.g. access to funding) • Technology (e.g. access & availability) • Political climate • Human capital (e.g. skill level, education) • Demographics (including migration patterns) • Availability & access to services (health, education, etc) • Level of collaboration among service providers & agencies

• State/local leadership (private/public) • Housing availability & quality • Built (infrastructure) capital • Quality of life factors • Natural capital • Social capital (e.g. connections within community, among businesses and to resources outside the community) • Cultural capital (mindsets, attitudes, level of public trust) (Mental models)

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Page 13: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Using Systems Thinking to Understand

Current Reality Team Application Exercise Deliverables

Focusing Question: Why… 1. Statement of desired result Given your issue or challenge, what are the results you’d like to see created?

What would it look like if the issue or challenge was fully resolved?

2. Key events/symptoms & key trends (Draw Graphs) What is the current reality now? What is the history? Where does it look like we

are heading?

3. List of key factors/drivers at the structural level Why do we have the current reality we have? (Start with factors on next pages)

E.g. Why do we have this gap? What is perpetuating or exacerbating it?

What are the barriers to improvement?

NOT WHAT TO DO ABOUT IT OR HOW TO FIX IT YET!

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Build on the work done yesterday… What are key themes? What’s still missing?

Page 14: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

What happened? What are some key events or crises? Why is this a problem for us? Share stories & info Listen for key variables & trends

1. Tell the Story Example

An Iceberg Exercise

Calhoun County, MI: estimated 250-500 people homelessness among population of 100,000

Homeless Coalition meetings again fail to deal with the problem: disagreements, competition, and lack of knowledge cited

Opportunity to receive funding to develop ten-year plan to end homelessness

14

Focusing Question Why, despite our best efforts, have

we been unable to end homelessness in Calhoun County?

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Historically what has been happening over time? What are the trends & patterns we see? Where is this headed (hopes & fears)? Draw 3-5 key historic trends of the key variables important to the issue

2. Draw the Graphs

Example

An Iceberg Exercise

Fear

Hope

Today

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3. Identify the Structure Why did this happen? What are the forces &

pressures at work? What is perpetuating or

exacerbating the problem?

Example An Iceberg Exercise

• Develop a list of important drivers or factors contributing to or perpetuating the problem (Suggestion: Use sources of pressures or forces list on earlier slide) • Use Brainstorming • Avoid solutions or fixes

• Factors That Create Risk – Individual and family risk factors, e.g.

poverty, discrimination, and lack of education; substance abuse, mental illness, DV; lack of support for minors; absence of life management skills, underlying self-esteem

– Limited permanent, accessible, living wage jobs

– Financial problems stemming from above, e.g. difficulty paying for medical emergencies and child support – not just rent and food

– Limited permanent, safe, affordable, supportive housing

– Social risk factors, e.g. aging, meth lab immigration

• Dynamics That Increase Risk – Renting to people who are at risk reduces

housing affordability for landlords, which increases vacant housing or gentrification and decreases quality of the remaining stock

– Vulnerability to scams, e.g. slum lords, quick cash

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Temporary Success

Systems Structure – Why we struggle to end homelessness in Calhoun County?

Page 18: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

What makes for good systems thinking issues?

The problem/issue is chronic

– There is a known history – we have data and are knowledgeable about the issue

– Prior attempts to solve the problem have failed – Multiple perspectives exist on why we have the problem

& what should be done – We believe there is more to be learned about the issue – We have some control or influence over the situation

including access to the key stakeholders

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Page 19: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Issues

Try formulating your issue as a focusing question that starts with the words Why or How Come but not How To. Examples: Why despite our best efforts have we been unable to end homelessness in Calhoun County? How come despite all the past initiatives have we been unable to create a vibrant, attractive and safe downtown in Trenton?

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Page 20: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Using Systems Thinking to Understand

Current Reality Team Application Exercise Deliverables

Focusing Question: Why… 1. Statement of desired result Given your issue or challenge, what are the results you’d like to see created?

What would it look like if the issue or challenge was fully resolved?

2. Key events/symptoms & key trends (Draw Graphs) What is the current reality now? What is the history? Where does it look like we

are heading?

3. List of key factors/drivers at the structural level Why do we have the current reality we have? (Start with factors on next pages)

E.g. Why do we have this gap? What is perpetuating or exacerbating it?

What are the barriers to improvement?

NOT WHAT TO DO ABOUT IT OR HOW TO FIX IT YET!

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Build on the work done yesterday… What are key themes? What’s still missing?

Page 21: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

External Structures

Organizational Structures

Individual Structures (Mental Models)

Interpersonal Structures

• Regulatory/legal • Socio-economic • Technology • Political climate • Community norms/standards • Public awareness/pressure

• Organizational • Structure/Hierarchy • Organizational Processes • Client Interface • Reward System • Information System/Flow • Cultural Norms • Written & Unwritten Rules • Policies/procedures/processes

• How I Think • How I View Myself and My Role • My Beliefs and Assumptions • Style/behavioral preferences

• Roles and Role Flexibility • Relational Skills • Ability to Recognize & Capitalize on Diversity • Problem Solving/Decision Making

Sources of Pressures or Forces

STRUCTURE

Events

Trends/Patterns

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Page 22: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Sample Elements of Structure that Generate Forces & Pressures

• State/local regulations & laws • General economy • Local economy • Financial resources/capital (e.g. access to funding) • Technology (e.g. access & availability) • Political climate • Human capital (e.g. skill level, education) • Demographics (including migration patterns) • Availability & access to services (health, education, etc) • Level of collaboration among service providers & agencies

• State/local leadership (private/public) • Housing availability & quality • Built (infrastructure) capital • Quality of life factors • Natural capital • Social capital (e.g. connections within community, among businesses and to resources outside the community) • Cultural capital (mindsets, attitudes, level of public trust) (Mental models)

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Page 23: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Deepening Our Understanding of Problems: The Iceberg

TRENDS & PATTERNS

Anticipate Forecast

Why?

What happened?

What’s been happening?

www.bridgewaypartners.com ©2013

FOCUS ACTION OR RESPONSE

React Firefight EVENTS

Lear

ning

Lev

erag

e

Change Create

STRUCTURE (Forces and Pressures)

QUESTIONS

Page 24: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Steps in Systems Thinking

EVENTS

PATTERNS

STRUCTURE

Tell Story

Draw Graphs

Draft Focusing Question

Identify the Structures

Apply the Going Deeper™ Questions

Plan an Intervention

LEVERAGE

LEARN

ING

What happened?

What’s been happening?

Why has this been happening?

How can we improve the performance of the

system?

Assess the Results

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Page 25: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

The world is circular– not linear

From:

To:

Problems or Crises

Actions or Interventions

Actions or Interventions

Problems or Crises

Unintended and Delayed Consequences

The Language of Systems Thinking

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Two Kinds of Loops

B

C

A

R= Reinforcing

B= Balancing

R

B

C

A

B

The Language of Systems Thinking

Systems are complex webs of interconnected Reinforcing and Balancing processes.

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Page 27: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

• Reinforcing process – Virtuous cycles that generate growth – Vicious treadmills that create disaster

Systems Language

Time

Rev

enue

s

Virtuous

Time

Qua

lity

of S

ervi

ce

Vicious

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Reinforcing Process: Growing our Organization

Client Base

Virtuous Cycle

Reinforcing R

Service Offerings

Funding

Reinforcing R

Page 29: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Systems Language

• Balancing processes – The corrective mechanisms that sustain us – The primary source of resistance to change

Time

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Page 30: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Balancing Process

Facing financial pressure, we cut back on costs (e.g. travel, training, etc.) Cost cutting efforts lower costs. Reductions in cost reduce

financial pressure.

B

Cutting Costs To Help Finances

Financial Pressure

Cost Cutting Efforts

Costs

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Page 31: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

The Power of Systems Archetypes

• Make systems thinking visible • Well understood--recur frequently • Easily transferable • Naturally promote systems thinking and acting in a team • Shift focus from blaming to inquiry

Systems archetypes are recurring structures that appear in many different types of situations. They often serve as initial guides to making sense of a complex system.

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Virtuous/Vicious Cycles Amplification and Reinforcement: a reinforcing process producing success or disaster.

Balancing Process Corrections: we try to reduce the gap.

Fixes that Backfire Unintended Consequences: the long-term negative consequences of a quick fix.

Shifting the Burden Unintended Dependency: the quick fix that we become addicted to.

Limits to Success Unanticipated Constraints: the limiting mechanism on spiraling growth.

Accidental Adversaries Partners Who Become Enemies: two parties want to cooperate, but each sees the other undermining their success.

Escalation Unintended Proliferation: the harder you push, the harder the competitor pushes back.

Drifting Goals Inadvertent Poor Performance: actual and desired performance levels gradually falling.

Success to the Successful Winner Takes All: your success produces my failure.

Tragedy of the Commons Optimizing Each Part Destroys the Whole: everyone takes advantage of a resource that doesn’t belong to anybody.

Multiple Goals Conflicting or Competing Commitments: trying to do too much or satisfy conflicting goals can lead to accomplishing none.

System Archetypes

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Delay Delay Unintended (Reinforces)

Unintended consequences

that make the original problem even worse

Fixes that Backfire Template

(Balances) Fix

Problem Symptom or Pressure Fix - solution

that works in short run

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B

R

The Perils of Downsizing

Staffing

???

Budget Pressure

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Page 35: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Delay

Unintended Consequence Visits by people

needing frequent care/monitoring

QUICK FIX

Employee Health Insurance

Costs Raise co-payment

Emergency visits &

hospitalizations

Treatment Costs

Quick Fix

Health Insurance

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Page 36: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Food Aid

Starvation Food Aid

Infant Mortality

Population

B

R

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Delay

Delay

Unintended Consequence

Fear

Fixing Safety

QUICK FIX

Safety Incidents (E.g. major injuries)

Blaming & Punishment

Reporting of near

misses & unsafe acts

Preventative actions

Quick Fix

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Dealing with Meth Labs

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Page 39: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Purpose: To practice applying the “Fixes That Backfire” template. Time: 5 minutes Instructions: • Identify a story from your own experience that fits this

template (related to your issue or organization) • Share your story with a partner

Fixes that Backfire Exercise

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Page 40: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Fixes that Backfire Template

Short-term Fix (B)

Unintended Consequence (R) Delay

Unintended consequences that make the original problem even worse

Finish here

Fix-Solutions that Work in Short Run

Do this next

Delay

Problem Symptom or Pressure Start here

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Page 41: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

• The fix addresses the symptom, not the problem. • The reinforcing loop is longer term, usually not obvious,

and dominates behavior.

What you can do:

-- Increase awareness of the unintended consequences

-- Identify and address the root problem

-- Implement a different fix

-- Implement the same fix without the negative consequences

Fixes that Backfire: Summary

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Shifting the Burden Template

Longer Term Fix (Balances)

Short-Term Fix (Balances)

May

Onl

y Ad

dres

s Sy

mpt

oms

May

Be

Mor

e Fu

ndam

enta

l

Unintended (Reinforces)

Side Effect: Makes it even

harder to do the long-term solution

Long-term Solution: Harder to do and/or

takes longer but would be effective in long run

Problem Symptom or

Pressure

Quick Fix: Works in the short run and is quicker and/or easier to do than the long-term solution

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Page 43: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

B

B

Depression

Seek counseling & long-term

treatment

B

Coping with Depression as Shifting the Burden

Use of alcohol, drugs or other

negative coping behaviors

Loss of employment, insurance &

family support

Access to services

R

Page 44: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

B

B

Dependency on “cheap” &

“fast” food

Food insecurity

Focus on healthy food choices

B

Low Income Food Insecurity as Shifting the Burden

Perceived need to change

eating & cooking habits

Page 45: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Enforcement Is Not Enough

B

B

Willingness of Employers &

Citizens to Cooperate

B

B

R

Enforcement

Partnering for

Prevention

Public Health

Problems

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Temporary Success

Another Way to See the Issue: Use of Temporary Shelters & Supports

Page 47: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Temporary Success

Another Way to See the Issue: Short-term Vs. Focus on Long-term Solution

Page 48: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

What Keeps People From Moving Into Permanent Housing?

Ironically, temporary success in getting people off the streets has

unintended consequences that make it more difficult to implement

fundamental solutions

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Page 49: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Unintended consequences of shelters & temporary placements?

Visibility of the problem of homelessness decreases

– Natural reluctance to see the problem in the first

place – Reluctance on the part of homeless people to be

seen – Lack of visibility further reduces pressure on the

community to solve the problem – Lack of data also reinforces the invisibility of problem

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Page 50: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Temporary Success

What Keeps People From Moving Into Permanent Housing?

Page 51: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

But there is more…

Temporary success and pressure by funders for short-term success reinforce funding to individual organizations for their current work.

This decreases their willingness, time, and funding

to innovate and collaborate, which in turn leads to:

– Fragmentation of services – Competition for existing funds – Lack of broader knowledge of best practices – Reluctance to overcome government restrictions that make it

difficult to innovate – Shelter mentality

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Temporary Success

What Keeps People From Moving Into Permanent Housing?

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Addiction to Firefighting

Performance or Delivery Problems

Improvements in Systems

and Processes

Firefighting

Rewards for Firefighting

B

B

R Time/Resources to Improve Systems

and Processes R

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Dealing with Meth Labs

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Dealing with Meth Labs

Page 56: DRIVING COMMUNITY CHANGE: DEEPER DIVE · The Law of Compensating Feedback – The harder you push on the system the harder the system pushes back. • We are prisoners of systemic

Purpose: To practice applying the “Shifting the Burden” template. Time: 10 minutes Instructions: • Apply Shifting the Burden to your issue or challenge • Be prepared to share your case with the whole group

Shifting the Burden Exercise

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Shifting the Burden Template

R

B

B

Quick fix: Works in the short run and is easier

or quicker than the long-term solution

Side Effects: Makes it harder to do the long-term solution

Problem Symptom or Pressure

Long-term solution: Harder to do and/or

takes longer but would be more

effective

Delay

Step

Step

Step

Step

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• Short-term is easy. Long-term is hard. • If overall vision or goals are missing, short-term focus takes over. • Short-term solutions can erode long-term capability.

What you can do: • Focus on the long-term solution in support of a compelling vision. • Sometimes the best approach is to support only the long-term solution, to “go cold turkey.” • Pay attention to dependency on the short-term fix as you strengthen long-term capability. • Look for mental models that tend to perpetuate dependence on the quick fix & mental models that impede serious consideration of the fundamental solution.

Shifting the Burden: Summary

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© Innovation Associates Organizational Learning, 14 Church Street, Hopkinton, MA 01748 Phone: 508 435-7999

Limits to Success/Growth

Time

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Limits to Success/Growth

Time

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Limits to Success/Growth

Time

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Growing Action

Condition or Performance

Constraining Action

Balancing B

Virtuous Cycle Limiting Process

Delay

Limits or Constraint

on Performance

Time

Reinforcing R

Limits to Growth/Success

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• External limits (market size, population, natural resources,

regulations, etc.) • Limits within the organization (financial, human, or

technological resources available, skills of workforce) • Limits within ourselves (our skills, assumptions (mental

models), attitudes, willingness to change, capacity to learn) Other slowing forces may involve actions by others that are

caused or stimulated by our growth

Typical Kinds of Limits

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Client Base

Virtuous Cycle

Reinforcing R

Limits to Growth/Success

Service Offerings

Funding

Reinforcing R

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Client Base

Service Quality (E.g. Responsiveness)

Balancing B

Virtuous Cycle

Limiting Process

Delay Service Capacity Reinforcing

R

Limits to Growth/Success

Service Offerings

Funding

Service Demands

Reinforcing R

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Client Base

Ability to Increase Funding

Balancing B

Virtuous Cycle

Limiting Process

Delay Available Outside Funding

Reinforcing R

Limits to Growth/Success

Service Offerings

Funding

Funding Needs

Balancing B

Reinforcing R

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Multiple Resource Limits

Volume Growing Force

R B

Demand for Resource #1

Demand for Resource #2

Demand for Resource #3 Other

slowing forces

Pinch Pt. #3

Pinch Pt. #2

Pinch Pt. #1

Limit on

Res.#3

Limit on

Res.#2

Limit on

Res.#1

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1. For your own situation, what are the engines (sources) of change or growth (R loops) that are in play or that you want to establish or strengthen? What is it you are trying to grow or change? How are you trying to grow it?

2. What are the some of the challenges/constraints (B loops) that you are observing or anticipating?

Limits to Growth Exercise

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Limits to Success Template

Growing Action

Condition or Performance

Constraining Action

R B

Virtuous Cycle Limiting Process

Delay

Limits or Constraint

on Performance

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Accidental Adversaries Partners Who Become Enemies

• Two parties work together to receive mutual benefit from the relationship

• Problem arises when one or both parties need to correct a local performance gap. They take action to improve performance and accidentally undermine their partner's success.

• The impact of these harmful activities may create a sense of frustration and resentment between the parties, who remain partners, or may reach the point of turning them into hostile adversaries.

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Accidental Adversaries – Stage 1

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Accidental Adversaries – Stage 2

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Accidental Adversaries – Stage 3

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EPH: Optimal Environmental Public Health

Outcomes

EPH: Maintaining

Relationships which assure Public Health

Tribal Preservation of Sovereign

Status

Tribal Willingness to Invest in Positive

Public Health Outcomes

Challenges in the Relationship Between EPH Regulators and Tribal Casinos

R1

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Infringement on Sovereign

Status Implementation of

Public Health Code(s)

Possibility of Poor Public Health

Outcomes

Resistance to Intervention in

Tribal Business Operations

Challenges in the Relationship Between EPH Regulators and Tribal Casinos

B1

B2

R2

R1

EPH: Optimal Environmental Public Health

Outcomes

EPH: Maintaining

Relationships which assure Public Health

Tribal Preservation of Sovereign

Status

Tribal Willingness to

Invest in Positive

Public Health Outcomes

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Size of Business Pipeline

R4 B2

Ambiguity of Direction

New Products

B3

R1

Focus on Breakthrough (Long-term) Technologies

Focus on Quick, Easy Sales

Research Responsiveness to

Short-term Business Needs

Research Budget

Size & Quality of Research Pipeline

Accidental Adversaries Worksheet

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Accidental Adversaries – Stage 1 Step 1: What is the engine of growth (R loop) for our partnership? How will we each contribute to the other’s success?

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Accidental Adversaries – Stage 2

Step 2: What do we each need to do to achieve our own organizational/business needs? What the actions required to meet our own targets/goals? (B loop)

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Accidental Adversaries – Stage 3 Step 3: How do our local actions to meet our own needs impact our partner? Are there unintended consequences on our partners?

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Accidental Adversaries

What you can do: • Get together and understand the whole picture. • Remove or weaken the constraints in your partner’s system that make

your own solution harmful. • Reaffirm the intent of the partnership and acknowledge the damage

that was done was unintentional. • Strengthen your mutual understanding of each other’s needs and the

criteria by which each of you defines success.

• Two groups have chosen to work together because they can mutually support each other's success.

• If the alliance works, both groups will gain increasing success. • The problem arises when one or both parties are not satisfied with its

current performance and take corrective measure that unintentionally obstructs their partners success.

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Mental Models What are our Mental Models? The beliefs, assumptions, and models we have are about every aspect of ourselves, others, our organizations, and how the world works.

• They are critical to our effectiveness. • They affect how we think and how we act. • They may be conscious, or unconscious; they can get us

into trouble. • It’s easier to see others’ mental models and harder to see

our own. • They are always incomplete and often flawed. • They are high leverage.

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Shifting the Burden Template

R

B

B

Quick fix: Works in the short run and is easier

or quicker than the long-term solution

Side Effects: Makes it harder to do the long-term solution

Problem Symptom or Pressure

Long-term solution: Harder to do and/or

takes longer but would be more

effective

Delay

82

Why do this?

Why not do this?

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Mental Models Example: Firefighting Breeds Arsonists

Performance Problems

Implementation of New Systems and

Processes

Firefighting

Time to Spend on New Systems and Processes

We’ll do whatever it takes. This is what

gets rewarded

I don’t have time to be on a design committee

This will take too much time. We have to help the customer now

B

B

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They are:

– Long-lasting and self-sustaining

– Capable of qualitatively changing (shifting) the long-term pattern of performance. (trends & patterns)

– Are at the structural level (bottom of iceberg)

– Often involve addressing entrenched mental models to start with

– May require stopping or doing less of something

– May require starting or doing more of something 85

Leverage points have certain characteristics.

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Effective Interventions

Time

From Stagnation to Growth

Sales

Desirable

Undesirable

From Unstable to Stable Performance

Time

Inventory Desirable

Undesirable

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Types of Intervention

A structure can be affected by interventions in different ways: • Break or weaken a link or loop (Stop doing) • Add a link or loop (Start doing) • Alter the delays • Combination of the above • Address mental models

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• The fix addresses the symptom, not the problem. • The reinforcing loop is longer term, usually not obvious,

and dominates behavior.

What you can do:

-- Increase awareness of the unintended consequences

-- Identify and address the root problem

-- Implement a different fix

-- Implement the same fix without the negative consequences

Fixes that Backfire: Summary

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A. Increase awareness of the unintended consequences B. Test and update mental models C. Identify and address the root problem D. Implement a different fix E. Implement the same fix without the negative consequences

Fixes that Backfire: What You Can Do

Problem Symptom

Root Cause of Problem

Quick Fix

Unintended Consequences

A

C

X D

X E

??? B

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• Short-term is easy. Long-term is hard. • If overall vision or goals are missing, short-term focus takes over. • Short-term solutions can erode long-term capability.

What you can do: • Focus on the long-term solution in support of a compelling vision. • Sometimes the best approach is to support only the long-term solution, to “go cold turkey.” • Pay attention to dependency on the short-term fix as you strengthen long-term capability. • Look for mental models that tend to perpetuate dependence on the quick fix & mental models that impede serious consideration of the fundamental solution.

Shifting the Burden: Summary

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Side Effect — that makes it EASIER to do the

long term solution

B

R

B

Quick Fix - Works in the

short-run and is quicker and/or

easier to do than the long term

solution

Problem Symptom or

Pressure

Long Term Solution -- Harder to do

and/or takes longer, but would be effective in long-run

B

Shifting the Burden: What You Can Do

X

X

Desired Vision (Result)

#1

#2

#2

#3

1. Challenge assumptions underlying the need for the quick fix. Show negative effects and reduce its use.

2. Establish vision that makes the long-term solution desirable and natural. Do not justify the long-term solution on the basis of the problem symptom.

3. Determine if you can implement the quick fix in such a way as to build towards vs. undermine the long-term solution.

???

HARDER

#1

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Accidental Adversaries

What you can do: • Get together and understand the whole picture. • Remove or weaken the constraints in your partner’s system that make

your own solution harmful. • Reaffirm the intent of the partnership and acknowledge the damage

that was done was unintentional. • Strengthen your mutual understanding of each other’s needs and the

criteria by which each of you defines success.

• Two groups have chosen to work together because they can mutually support each other's success.

• If the alliance works, both groups will gain increasing success. • The problem arises when one or both parties are not satisfied with its

current performance and take corrective measure that unintentionally obstructs their partners success.

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Limits to Success Template

Growing Action

Condition or Performance

Constraining Action

R B

Virtuous Cycle Limiting Process

Delay

Limits or Constraint

on Performance

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How does our work these past two days

inform our actions/policies going forward? Team Application Exercise Deliverables

1. What are our key learnings from applying these

archetypes? a) What have we seen that wasn’t as evident before? b) What do we start doing or reinforce (do more of)? c) What do we stop doing or reduce (do less of)? d) What do we need to understand better?

2. What are the most critical mental models that we need to

address or shift? How could we shift them?

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Making Connections

• How is our initiative connected with other initiatives in the room?

• And if we were wildly successful in addressing our issue what might be the intended as well as unintended impacts on the other initiatives?

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Resource List

Books • Peter Senge, The Fifth Discipline • Peter Senge et al, The Fifth Discipline Fieldbook

Websites • Applied Systems Thinking: www.appliedsystemsthinking.com • Society for Organizational Learning: www.solonline.org

Online Systems Thinking Course • www.iseesystems.com

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Additional Material

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EVENTS What’s getting our

attention or concern?

Case Example

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Case Example of a Wicked Problem: Ending Homelessness in Calhoun County (Battle Creek, MI) Events

Calhoun County, MI: estimated 250-500 people homelessness among population of 100,000

Homeless Coalition* meetings again fail to deal with the problem: disagreements, competition, and lack of knowledge cited

Opportunity to receive funding to develop ten-year plan to end homelessness

Systems thinking integrated with community building process – involving political and business leaders, service providers, and homeless people – to produce the ten-year plan

*A collaborative workgroup of the Coordinating Council of Calhoun County involving 40 providers of services, consumers of those services, funders & city/county reps.

Focusing Question Why, despite our best efforts, have we been

unable to end homelessness in Calhoun

County?

75% “episodically” homeless 25% “chronically” homeless 32% women 68% men 33% mental illness 48% drug and/or alcohol addictions

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TRENDS & PATTERNS

What’s been happening historically?

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Time

Estimated # Homeless

Efforts to Reduce Homelessness

Visibility of the Problem

Trend or Pattern Perspective: Calhoun County

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STRUCTURE (Forces and Pressures)

Why has this been happening? What’s generating it?

What’s perpetuating it?

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Case Example of a Wicked Problem: Ending Homelessness in Calhoun County Some of the pieces: Structural elements & drivers

Focusing Question Why, despite our best efforts, have we been

unable to end homelessness in Calhoun County?

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Overview Homeless System

Stocks & Flows Flow

Stock

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Overview Homeless System

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Overview Homeless System

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Overview Homeless System

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Social Risk Factors

Availability of Permanent

Housing

Availability & Accessibility of

Living Wage Jobs

Financial Problems

Individual & Family Risk Factors

Strength of Risk factors

Info About Available

Resources

Speed & Quality Of Emergency

Response

Housing Subsidies

Community Support

Transitional Support by VA

Temporary Supports

More Desirable Shelters

Less Desirable Shelters

Personal Determination

Limits of Support

Recycling Thru Shelters

Movement Back into Calhoun County

Critical Services

Housing Jobs

Overview Of Calhoun County Homelessness Main Focus

What drives the flows?

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Temporary Success

Another Way to See the Issue: Use of Temporary Shelters & Supports

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Temporary Success

Another Way to See the Issue: Short-term Vs. Focus on Long-term Solution

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What Keeps People From Moving Into Permanent Housing?

Ironically, temporary success in getting people off the streets has

unintended consequences that make it more difficult to implement

fundamental solutions

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Unintended consequences of shelters & temporary placements?

Visibility of the problem of homelessness decreases

– Natural reluctance to see the problem in the first

place – Reluctance on the part of homeless people to be

seen – Lack of visibility further reduces pressure on the

community to solve the problem – Lack of data also reinforces the invisibility of problem

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Temporary Success

What Keeps People From Moving Into Permanent Housing?

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But there is more…

Temporary success and pressure by funders for short-term success reinforce funding to individual organizations for their current work.

This decreases their willingness, time, and funding

to innovate and collaborate, which in turn leads to:

– Fragmentation of services – Competition for existing funds – Lack of broader knowledge of best practices – Reluctance to overcome government restrictions that make it

difficult to innovate – Shelter mentality

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Temporary Success

What Keeps People From Moving Into Permanent Housing?

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Leverage for Ending Homelessness

• Increase visibility of the problem (without endangering homeless people)

• Establish permanent solutions mindset • Increase collaboration/alignment among funders • Increase collaboration/alignment among

providers and community • Improve access to housing, employment, and

critical services

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Temporary Success

Where is there critical LEVERAGE?

Community Visibility

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Temporary Success

Permanent Solutions Mindset

Where is there critical LEVERAGE?

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Temporary Success

Collaboration, Alignment Among Funders

Where is there critical LEVERAGE?

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Temporary Success

Where is there critical LEVERAGE? Collaboration, Alignment

Among Providers & the Community

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Temporary Success

Where is there critical LEVERAGE? Access to Housing,

Employment & Services

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How Increasing the Outflow Also Works on Reducing the Inflow

Social Risk Factors

Availability of Permanent

Housing

Availability & Accessibility of

Living Wage Jobs

Financial Problems

Individual & Family Risk

Factors

Strength of Risk factors

Access to Housing, Employment &

Services

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Ending Homelessness: Making a Choice

• Focusing on temporary shelters has appeared to be the right thing to do

• Although shelters help people cope with homelessness, they actually make it more difficult to end it

• The community, especially service providers, has to make a choice between coping with homelessness and ending it

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Ending Homelessness: Learnings

Jennifer Schrand, Chair of the Calhoun County Ten-Year Plan to End Homelessness, observed:

I learned so much, especially the difference between changing a

particular system and leading systemic change. You (systems thinking) helped involve our consumer – homeless people – in developing the community’s ten-year plan to end homelessness. You expanded the view of service providers so that they are now committed to helping the consumer overall instead of just “doing their own thing” as individual organizations. Agencies took a hard look together at their individual and collective responsibilities for failing to end homelessness, and recognized that their emergency work hides the problem and reduces community pressure to solve it. The goals of our new plan to end homelessness derive directly from your analysis of the whole system and identification of leverage points to achieve a sustainable solution.

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Ending Homelessness: Results Plan funded: Leverage points identified by a shared understanding of why homelessness persisted became the basis for state approved plan

Collaborative breakthrough: Homeless Coalition voted unanimously to reallocate HUD funding from one service provider’s transitional housing program to permanent supportive housing program run by another provider

Quantitative results: In 2012, six years into the ten year plan, the county reported that homelessness decreased by 14% despite the 2008 economic collapse & a 34% increase in unemployment in the county