David OsborneJill HinsonChangeFusion, LLC

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

behavior of critical systems, and we shouldn't presume that we can manage

behavior with 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?

[ ]

“Self-organization provides a powerful

new model for guiding organizational change

that surpasses the hierarchically controlled

and resistance-busting strategies of the past.”

(Goldstein, 1994)

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

Patterns are created by the interaction of these three elements

Glenda Eoyang,HSD InstituteCDE 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 emerges

Container

MagazineMarket

Expand the

Container

Change Emerges

ProductionConsumptionAdvertising

Revenue Streams

Change Leverage Point: Increasing or Decreasing Differences

Differences

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

Knowledge

Information

Expertise

Resources

AccessPower

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

Direction

One-WayTop - Down

Two-WayOpen

C-D-E Example: Open Sourcing New Pattern: Faster New Product – Market Cycle Time

Internal R&DTo

GlobalConnect & Develop

# of Experts

Transparency

Short, Focused2-way

IncreasedExponentially

Container

ExchangeDifferences

“We have learned that

neuroplasticity is not only

possible but constantly in

action. That is the way we

adapt to new situations,

learn new facts and develop new skills.”

Mark Hallett, NIH

How change happens

Hardwiring & Mental Maps

Error 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: Reframing 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