Strategy, leadership and organisational reinvention.

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There is a lot of talk these days about REINVENTING - the Organisation, or the Industry, or even just a process or a product. The concept is used superficially and indiscriminately, without the vaguest appreciation of what reinvention really entails. Suffice it to say that you cannot reinvent your Organisation, Industry, Community, Country, Profession, or Products, WITHOUT FIRST REINVENTING YOURSELF.
When people glibly talk about reinventing an organisation, the process, as far as they are concerned, typically involves improvement of some kind. There is a focus on DOING, on fixing, or improving this or that. This is a consequence of the sixteenth-century Newtonian mechanistic and deterministic view of the universe that still guides much thinking today, but which has become increasingly dysfunctional in these times of interdependence, rapid change and even chaos. Typically, re-engineering, incremental improvement, benchmarking, best practice and even Paradigm Shift, fall under the umbrella of the so-called Universal Human Paradigm, with its preoccupation on doing, fixing, or improving.
There is no denying that all these processes are useful, and at times necessary – but they cannot remotely be classified as reinvention. For example, in order to shift a paradigm, you have to have one, whereas to reinvent a paradigm, you have to CREATE one that doesn’t exist in your current reality. Therefore the executive who would master reinvention must journey into a largely unfamiliar, and at times, uncomfortable territory. In this territory a crucial dimension is hidden until we learn to distinguish
it. This is the territory or domain of BEING. Reinvention entails the creation of a new context. It embraces the art and craft of continuously engineering SHIFTS IN BEING, which in turn produce sustainable, unprecedented results, which could even be designated as IMPOSSIBILITIES. The capacity to discover and participate in our unfolding future has more to do with our BEING – our total orientation of character and consciousness – than with our DOING.

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Strategy, leadership and organisational reinvention.

  1. 1. <ul><li>BMI-CSLOR </li></ul>LR Strategy, leadership and Organisational reinvention High performance leadership in turbulent times Leaders make the impossible happen Dr. Llewellyn B. Lewis CENTRE FOR STRATEGY, LEADERSHIP AND ORGANISATIONAL REINVENTION www.leadershipreinvention.co.za
  2. 2. ENVIRONMENTAL CHANGE <ul><li>BMI-CSLOR </li></ul>LR WHAT RESPONSES RESULT ? DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME) <ul><li>RESTRUCTURING </li></ul><ul><li>B P RE-ENGINEERING </li></ul><ul><li>COST CUTTING </li></ul><ul><li>BENCHMARKING </li></ul><ul><li>TOTAL QUALITY MANAGEMENT </li></ul><ul><li>INTELLECTUAL CAPITAL FOCUS </li></ul><ul><li>REGENERATING STRATEGY </li></ul><ul><li>REINVENTING THE LEADERSHIP </li></ul><ul><li>REINVENTING THE ORGANISATION </li></ul><ul><li>REINVENTING THE INDUSTRY </li></ul>AS : * Competition hots up * Growth slows, stagnates * Margins decline * Market share falls * Substitution occurs (Based on Hamel and Prahalad : 1994)
  3. 3. ENVIRONMENTAL CHANGE <ul><li>BMI-CSLOR </li></ul>LR WHAT RESPONSES RESULT ? DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME) <ul><li>RESTRUCTURING </li></ul><ul><li>B P RE-ENGINEERING </li></ul><ul><li>COST CUTTING </li></ul><ul><li>BENCHMARKING </li></ul><ul><li>TOTAL QUALITY MANAGEMENT </li></ul><ul><li>INTELLECTUAL CAPITAL FOCUS </li></ul><ul><li>REGENERATING STRATEGY </li></ul><ul><li>REINVENTING THE LEADERSHIP </li></ul><ul><li>REINVENTING THE ORGANISATION </li></ul><ul><li>REINVENTING THE INDUSTRY </li></ul>AS : * Competition hots up * Growth slows, stagnates * Margins decline * Market share falls * Substitution occurs (Based on Hamel and Prahalad : 1994) It is not enough for a company to get SMALLER and BETTER and FASTER. A company must also be capable of fundamentally RECONCEIVING itself, of REGENERATING core strategies, and of REINVENTING ITS INDUSTRY
  4. 4. CREATING THE FUTURE THE QUEST FOR COMPETITIVENESS <ul><li>BMI-CSLOR </li></ul>LR RESTRUCTURING THE PORTFOLIO AND DOWNSIZING HEADCOUNT REENGINEERING PROCESSES AND CONTINUOUS IMPROVEMENT REGENERATING STRATEGIES SMALLER BETTER DIFFERENT REINVENTING THE LEADERSHIP, THE ORGANISATION, THE INDUSTRY TRANSFORMED POSSIBLE RESULTS IMPOSSIBLE RESULTS
  5. 5. <ul><li>BMI-CSLOR </li></ul>LR BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW Specific steps and timetables to implement the strategies Plans converted into financial projections and goals A sensible and appealing picture of the future A logic, and first level of detail, for how the vision can be achieved BUDGETS MANAGEMENT DOES VISIONARY LEADERSHIP DEVELOPS PLANS STRATEGIES VISION CONTEXT TRANS- FORMATIONAL LEADERSHIP CREATES WAY OF BEING. INVENTING AN IMPOSSIBLE GAME. REINVENTION, TRANSFORMATION
  6. 6. <ul><li>BMI-CSLOR </li></ul>LR CREATING THE FUTURE CREATIVE TENSION <ul><li>SEEKS RESOLUTION : RESULTS IN ACTION </li></ul><ul><li>STRATEGIC ACTION PLANS </li></ul><ul><li>PERFORMANCE GUIDELINES </li></ul><ul><li>BUDGETS </li></ul><ul><li>DONE BY MANAGEMENT </li></ul>A LOGIC AND FIRST LEVEL OF DETAIL, FOR HOW THE VISION CAN BE ACHIEVED DEVELOPED BY LEADERSHIP CONTEMPORARY ANALYST 2025 2011 CURRENT REALITY INFORMED BY MEMORIES OF THE PAST (HISTORY) HISTORIAN VISION INFORMED BY MEMORIES OF THE FUTURE (SCENARIOS) PROPHET CONTEXT : A COMPELLING AND APPEALING VISION OF THE FUTURE WE ARE CREATING. STRATEGIES CREATED BY LEADERSHIP
  7. 7. <ul><li>BMI-CSLOR </li></ul>LR STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS
  8. 8. <ul><li>BMI-CSLOR </li></ul>LR STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS
  9. 9. <ul><li>BMI-CSLOR </li></ul>LR STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS If you want to understand the World, commonly held ideas are absolutely blinding. The only way to spot threats and opportunities is to break out of a narrow way of thinking. . . . If you’re trying to reach enlightenment, you must develop, in this order, “right view, right intention, right action.” If you’re not seeing the world properly, you have no hope of any sort of breakthrough. (Ramo: 2009: 134)
  10. 10. <ul><li>BMI-CSLOR </li></ul>LR DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process STRATEGY AND PARADIGMS
  11. 11. <ul><li>BMI-CSLOR </li></ul>LR DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process . . . The environment is far more powerful than any individual. It is never stable and in its sudden changes from one state to another, more important than the desires of any of us . . . Context is everything . . . (Ramo: 2009: 160). More than anything, what you want to know is when change is going to begin. This sense is known as mastery of incipience, and the skill is often praised as the highest form of wisdom . (Ramo: 2009: 161). . . . truth emerges through debate, study, reflection, meditation, and, at long last, insight delivered like lightning. (paraphrase of Ramo, 2009: 212). STRATEGY AND PARADIGMS
  12. 12. <ul><li>BMI-CSLOR </li></ul>LR CONTEXT IN WHICH DECISIONS OCCURS FUTURE CONTENT OF DECISIONS PAST PROCESS OF DECISION MAKING PRESENT (Based on Pettigrew, 1988) WHAT? HAVING I HAVE HOW? DOING I DO THE REINVENTION PROCESS (Based on Pettigrew) WHY? BEING I AM
  13. 13. <ul><li>BMI-CSLOR </li></ul>LR Strategic analysis Strategic choice Strategy implementation Environmental analysis Identifying options Evaluating options Stakeholder expectations Selecting a strategy Resources and strategic capability Planning and allocating resources structure Managing strategic change and culture (Based on Johnson and Scholes) THE REINVENTION PROCESS (Derived from the Strategic Planning Process)
  14. 14. <ul><li>BMI-CSLOR </li></ul>LR Strategic analysis Strategic choice Strategy implementation Environmental analysis Identifying options Evaluating options Stakeholder expectations Selecting a strategy Resources and strategic capability Planning and allocating resources structure Managing strategic change and culture (Based on Johnson and Scholes) THE REINVENTION PROCESS (Derived from the Strategic Planning Process) Content Process Context
  15. 15. <ul><li>BMI-CSLOR </li></ul>LR STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Continuous Reinvention TRANSFORMATIONAL LEADERSHIP As a way of Life ENVIRONMENTAL FORCES POTENTIAL RESOURCES CAPABILITIES CURRENT REALITY TAKING A STAND, DECLARATIONS OF POSSIBILITY CONVERSATIONS, REQUESTS AND PROMISES CREATING THE FUTURE DEVELOPING PRESENCE ALERT TO POSSIBILITIES THE REINVENTION PROCESS (Derived from the Strategic Planning Process) SCENARIOS DEVELOPING A WORLDVIEW AWARENESS UNDERSTANDING THE SELF PARADIGMS OR MENTAL MODELS Beliefs and assumptions held in common and taken for granted (Based on Johnson and Scholes)
  16. 16. <ul><li>BMI-CSLOR </li></ul>LR STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Continuous Reinvention TRANSFORMATIONAL LEADERSHIP As a way of Life ENVIRONMENTAL FORCES POTENTIAL RESOURCES CAPABILITIES CURRENT REALITY TAKING A STAND, DECLARATIONS OF POSSIBILITY CONVERSATIONS, REQUESTS AND PROMISES CREATING THE FUTURE DEVELOPING PRESENCE ALERT TO POSSIBILITIES THE REINVENTION PROCESS (Derived from the Strategic Planning Process) SCENARIOS DEVELOPING A WORLDVIEW AWARENESS UNDERSTANDING THE SELF PARADIGMS OR MENTAL MODELS Beliefs and assumptions held in common and taken for granted (Based on Johnson and Scholes) Process Content Context
  17. 17. <ul><li>BMI-CSLOR </li></ul>LR PARADIGMS ARE ALL INVENTED The frames our minds create define – and confine – what we perceive to be possible. Every problem, every dilemma, every dead-end we find ourselves facing in life, only appears unsolvable inside a particular frame or point of view. Enlarge the box, or create another frame around the data, and problems vanish, while new opportunities appear. When you bring to mind it’s all invented, you remember that it’s all a story you tell – not just some of it, but all of it. Every story you tell is founded on a network of hidden assumptions. (Zander : 2000)
  18. 18. <ul><li>BMI-CSLOR </li></ul>LR PARADIGMS ARE ALL INVENTED If you learn to notice that and distinguish these stories, you will be able to break through the barriers of any ‘box’ that contains unwanted conditions and create other conditions or narratives that supports the life you envision for yourself and those around you. We don’t mean that you can just make up anything and have it magically appear. We mean that you can shift the framework to one whose underlying assumptions allow for the conditions you desire. Let your thoughts and actions spring from the new framework and see what happens. (Zander : 2000)
  19. 19. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSAL HUMAN PARADIGM (Goss : 1996) … in order to ... Listening for ... … so as to act by ... … CONTROL LIFE, have it turn out the way it “SHOULD” and AVOID having life turn out the way it “SHOULDN’T” Every human being … compensating for what is NOT POSSIBLE … or not possible at this time – with the paradigm I am currently practicing, I don’t know how to do it . . . “ What should or shouldn’t be? Who’s to BLAME? What’s right or wrong with me, them or it?” The name of the Game is . . . Making it through childhood alive …..
  20. 20. <ul><li>BMI-CSLOR </li></ul>LR The name of the Game is . . . Staying alive and making it through – surviving in a world of scarcity and peril ….. THE UNIVERSAL HUMAN PARADIGM (Goss : 1996; Zander: 2000) … in order to ... Listening for ... … so as to act by ... Overcome the odds and prevail; being acknowledged and included . . . Every human being … keeping our armour intact. Take possession of resources. Resisting any challenges to our viewpoint … Alertness to danger; a clever strategic mind, an eye for assessing friend and foe . . . DESIRED OUTCOME OF YOUR LIFE THE FILTER, OR FEASIBILITY SIEVE WAY OF ACTING IN ORDER TO SUCCEED + SOURCE OF POWER INHERITED FROM THE PAST CONTENT OF DECISIONS PAST PROCESS OF DECISION MAKING PAST CONTEXT IN WHICH DECISIONS OCCURS PAST
  21. 21. <ul><li>BMI-CSLOR </li></ul>LR LISTEN FOR SO AS TO ACT BY IN ORDER TO Potential c lients for development of ‘sustainable settlements’ in respect of geographical spread and quantum. Packaging and implementing appropriate sustainable settlement projects (Including Servcon and other Rightsizing) Satisfy our Rightsizing targets and meet our own commitments to the Board, and AVOID being extinct by 20011/12 The name of the game is - - - delivering our Rightsizing and related obligations to Government whilst phasing in our reinvented mandate in respect of sustainable settlements. THE UNIVERSAL WINNING STRATEGY WINNING STRATEGY: Housing Company LISTEN FOR SO AS TO ACT BY IN ORDER TO What should or shouldn’t be ? What’s right or wrong with me, them, or it ? Compensating for what’s not possible Control life, so it turns out the way it should, and avoid life turning out the way it shouldn’t
  22. 22. <ul><li>BMI-CSLOR </li></ul>LR (Zander: 2000) Downward spiral talk stands for a resigned way of talking that excludes possibility. It is based on the fear that we will be stopped in our tracks and fall short in the race, and it is wholly reactive to circumstances, circumstances that appear to be wrong, problematic and in need of fixing. Focusing on the abstraction of scarcity, downward spiral talk creates an unassailable story about the limits to what is possible, and tells us compellingly how things are going from bad to worse. CONVERSATIONS FOR NO POSSIBILITY
  23. 23. <ul><li>BMI-CSLOR </li></ul>LR (Zander: 2000) Ordinarily we equate accountability with blame and blamelessness, concepts from the world of measurement. When I blame you for something that goes wrong, I seek to establish that I am in the right – and we all know the delicious feeling of satisfaction there. However, inasmuch as I blame you – to that degree, in exactly that proportion, I lose my power. I lose my ability to steer the situation in another direction, to learn from it, or to put us in good relationship with each other. Indeed I lose any leverage I may have had, because there is nothing I can do about your mistakes – only about mine. CONVERSATIONS FOR NO POSSIBILITY
  24. 24. <ul><li>BMI-CSLOR </li></ul>LR (Zander: 2000) Downward Spiral Talk Am I speaking from here? THE UNIVERSAL HUMAN PARADIGM
  25. 25. <ul><li>BMI-CSLOR </li></ul>LR POWER IN THE UNIVERSAL HUMAN PARADIGM (Based on Goss : 1996) IS THE SPEED WITH WHICH YOU CAN IDENTIFY WHAT’S WRONG, OR COULD GO WRONG, OR IS NOT THE WAY IT SHOULD BE, AND REACT (FROM THE PAST), TO GET IT THE WAY IT SHOULD BE. SOMEBODY IS TO BLAME FOR IT BEING WRONG. AND YOU HAVE TO TAKE CONTROL TO BRING IT BACK INTO LINE. IN THE UNSAID, IT IS OUT OF CONTROL. NO POSSIBILITY OF IT BEING ANY OTHER WAY. HAS TO DO WITH DOING IMPROVEMENT OF ANY KIND. IMPROVING ANYTHING IS BETTER THAN NO RESULT.
  26. 26. <ul><li>BMI-CSLOR </li></ul>LR MOVING OUT OF THE COMFORT ZONE (Based on Malphurs : 1993) THE FUTURE UNKNOWN WORLD (“The Enemy”) CURRENT KNOWN WORLD (“The Womb”) KNOWLEDGE CONTROL LACK OF KNOWLEDGE LACK OF CONTROL VULNERABLE RISKY UNCERTAIN UNCOMFORTABLE SAFE NO RISK CONFIDENT COMFORTABLE SAFETY ZONE DANGER ZONE
  27. 27. <ul><li>BMI-CSLOR </li></ul>LR Current reality Designated impossible Future ! Designated impossible Future ! THE VALLEY OF DEATH PARADIGMS CHALLENGED PARADIGMS REINVENTED Current future Security in small steps - let’s just incrementally improve what we’re doing ? MOVING OUT OF THE COMFORT ZONE You don’t get to impossible through improvement ! Let’s work back from the future !
  28. 28. <ul><li>BMI-CSLOR </li></ul>LR Current reality Designated impossible Future ! Designated impossible Future ! THE VALLEY OF DEATH PARADIGMS CHALLENGED The Universal Human Paradigm is about the past, whereas inflection points are about the future. The leap from the Universal Human Paradigm to the Reinvention Master Paradigm at these inflection points is like going through THE VALLEY OF DEATH. PARADIGMS REINVENTED Current future Security in small steps - let’s just incrementally improve what we’re doing ? MOVING OUT OF THE COMFORT ZONE You don’t get to impossible through improvement ! Let’s work back from the future !
  29. 29. <ul><li>BMI-CSLOR </li></ul>LR If you want to make minor, incremental changes and improvements, work on practices, behaviour or attitude. But if you want to make significant, quantum improvement, work on paradigms. (Covey: 2005) MOVING OUT OF THE COMFORT ZONE
  30. 30. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) Language is the HOUSE OF BEING , and on a day to day basis you can alter the way you are being by altering the conversations in which you are engaged. Therefore how we speak and what we listen for, are extremely important in determining our view of the world, and our behaviour. LANGUAGE IN THE REINVENTION MASTER PARADIGM
  31. 31. <ul><li>BMI-CSLOR </li></ul>LR CONTEXT IN WHICH DECISIONS OCCURS FUTURE CONTENT OF DECISIONS PAST PROCESS OF DECISION MAKING PRESENT (Based on Pettigrew, 1988) WHAT? HAVING I HAVE HOW? DOING I DO UNTIL WITHOUT UNLESS MISSING? ESSENTIAL? NEXT? CONVERSATIONS REQUESTS PROMISES WHO? BEING I AM OUGHT SHOULD BLAME LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM IN ORDER TO . . . CONTROL SELF CONTROL
  32. 32. <ul><li>BMI-CSLOR </li></ul>LR CONTEXT IN WHICH DECISIONS OCCURS FUTURE CONTENT OF DECISIONS PAST PROCESS OF DECISION MAKING PRESENT (Based on Pettigrew, 1988) WHAT? HAVING I HAVE HOW? DOING I DO UNTIL WITHOUT UNLESS MISSING? ESSENTIAL? NEXT? CONVERSATIONS REQUESTS PROMISES WHO? BEING I AM OUGHT SHOULD BLAME LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM IN ORDER TO . . . CONTROL SELF CONTROL If you can’t change circumstances, change the way you respond to them. (Tim Hansel) We talk about “circumstances over which we have no control.” None of us have control over our circumstances, but we are responsible for the way we pilot ourselves in the midst of things as they are. (Oswald Chambers)
  33. 33. <ul><li>BMI-CSLOR </li></ul>LR THE PARADIGM Development of Strategy Implementation Corporate Performance IF UNSATISFACTORY Step 1 Tighter Control Step 2 Reconstruct or develop new strategy Step 3 Abandon paradigm adopt new one STRATEGIC LEADERSHIP THE (NEW) PARADIGM STRATEGIC LEADERSHIP TAKES PLACE BETWEEN PARADIGMS LEADERS ASSESS THE RISK AND DETERMINE THAT SHIFTING PARADIGMS IS THE CORRECT THING TO DO TRANSFORMATIONAL LEADERS HAVE THE ABILITY TO OPERATE SUCCESSFULLY IN MORE THAN ONE PARADIGM IF UNSATISFACTORY IF UNSATISFACTORY MANAGEMENT TAKES PLACE WITHIN (ONLY ONE) PARADIGM A GOOD MANAGER WILL OPTIMISE AN EXISTING SYSTEM BY TAKING THE RULES AND MAKING THEM BETTER THIS IS PARADIGM ENHANCEMENT BUSINESS AND LEADERS IN TRANSITION
  34. 34. <ul><li>BMI-CSLOR </li></ul>LR PARADIGM SHIFT AND REINVENTION INCREMENTAL CONTINUOUS STRETCH (IN REACH) QUANTUM LEAPS (STEPCHANGE) BREAKTHROUGH PARADIGM SHIFT BLUE BOX TOOLS FOR PRODUCING IMPOSSIBLE RESULTS CANNOT GET TO IMPOSSIBLE BY IMPROVEMENTS TRANSFORMATION ALTER WAY OF BEING PARADIGM REINVENTION CHANGE YOU DON’T HAVE TO ALTER YOUR WAY OF BEING TO PRODUCE A PARADIGM SHIFT RED BOX TOOLS FOR PRODUCING POSSIBLE RESULS (IMPROVEMENTS) ? (Based on Goss : 1996)
  35. 35. <ul><li>BMI-CSLOR </li></ul>LR BRIDGING THE GAP BETWEEN IMPOSSIBLE TO POSSIBILE TO REAL (Goss : 1996) SURVIVAL UNIVERSAL HUMAN PARADIGM TRANSFORMATION REINVENTION MASTER PARADIGM POSSIBLE REAL BRIDGE TO ACTION IMPOSSIBLE GETTING TO ZERO 1 5 6 7 8 9 2 3 4 CNP Conversation for No Possibility LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM
  36. 36. <ul><li>BMI-CSLOR </li></ul>LR When you’re coming from the future, you don’t know the way, how to do it ! BRIDGING THE GAP BETWEEN IMPOSSIBLE TO POSSIBILE TO REAL GET TO ZERO. NO UNTIL - - - NO UNLESS - - - NO WITHOUT - - - Based on Attachment to : “We know the way.” (from the past) In this mode you are “ reinventing” yourself as you know yourself to be !
  37. 37. <ul><li>BMI-CSLOR </li></ul>LR BRIDGING THE GAP BETWEEN IMPOSSIBLE TO POSSIBILE TO REAL (Goss : 1996) CONVERSATIONS FOR NO POSSIBILITY based on the past, on the way things OUGHT to be, SHOULD or shouldn’t be. Who’s wrong, to BLAME - - - you, them, or it - - - GET TO ZERO. NO OUGHT’S - - - NO SHOULD’S - - - NO BLAME - - - GET TO ZERO. The large contractor’s OUGHT to do it - - - The Minister SHOULD understand - - - The people SHOULDN’T expect housing - - - The Local Authorities are to BLAME - - - Apartheid is to BLAME - - -
  38. 38. <ul><li>BMI-CSLOR </li></ul>LR BRIDGING THE GAP BETWEEN IMPOSSIBLE TO POSSIBILE TO REAL (Goss : 1996) CONVERSATIONS FOR NO POSSIBILITY The main difference between UHP and RMP is that there is no element of CONTROL - no “in order to” in the RMP GET TO ZERO. NO IN ORDER TO - - - PARADOX By giving up CONTROL and decreasing PREDICTABILITY, the probability of attaining EXTRAORDINARY RESULTS is greatly increased
  39. 39. <ul><li>BMI-CSLOR </li></ul>LR BRIDGING THE GAP BETWEEN IMPOSSIBLE TO POSSIBILE TO REAL CREATE. THE ENTIRE NEW MASTER PARADIGM. MOVING FROM THE PAST TO THE FUTURE. THREE FOUNDATION DECLARATIONS. STANDING IN ZERO. What is possible is what I say is possible Who I am is the stand I take I take the stand that there are no essentials (until, unless, without); there is no way that things ought, or should or shouldn’t be, there is no right or wrong way, people have the right to say “no”, and no one is to blame for my success or otherwise – no one owes me a living; there is also no “in order to - - - “ (control the way life turns out) GIVING YOURSELF THE POWER TO CREATE EVERYTHING THAT DOES NOT EXIST, SPEAKING THE FUTURE INTO EXISTENCE. SPECIFIC CONVERSATIONS.
  40. 40. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) PAST You make a request or promise ; it is accepted, declined or countered You still ( being human) assign meaning interpretation explanation conclusion your “ invented game” PRESENT something happens You make a request or promise ; it is accepted, declined or countered You make a request or promise ; it is accepted, declined or countered FUTURE LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM What is Missing? What is Essential? What’s next? … etc … etc … etc until the possibility you are BEING occurs in the world as a reality THESE INTERPRETATIONS WHEN THEY OCCUR, OCCUR MERELY AS “SOMETHING YOU HAVE”
  41. 41. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) REALITY PAST HAVING “ Interpretation conclusion” CONTENT BEING “ your invented game” CONTEXT ACTION PRESENT DOING “ Something happens” PROCESS POSSIBILITY INVENTED FUTURE TAKING A STAND MAKING DECLARATIONS UNREASONABLE REQUESTS Accepted Declined/rejected counter offers BOLD PROMISES Kept Not kept Revoked ASSESSMENTS ASSERTIONS OPINIONS Nothing moves forward Pulls you into the Past Soon in arena of CONVERSATIONS FOR NO POSSIBILITY ALL THAT HAPPENS IN THIS MODE IS CONVERSATION LIBERATION LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM
  42. 42. <ul><li>BMI-CSLOR </li></ul>LR MOVING OUT OF THE COMFORT ZONE (Based on Treat : 1999) FUTURE UNKNOWN WORLD (“The Promised Land”) CURRENT KNOWN WORLD (“The Wilderness”) The Great Exchange <ul><li>Pull of the Past </li></ul><ul><li>Slavery </li></ul><ul><li>Day to Day issues </li></ul><ul><li>Satisfied with Mediocrity </li></ul><ul><li>Surviving </li></ul><ul><li>Conformity </li></ul><ul><li>Grasshopper Paradigm </li></ul><ul><li>Paradigm Paralysis </li></ul><ul><li>Challenge of the Future </li></ul><ul><li>Freedom </li></ul><ul><li>Dreams and Visions </li></ul><ul><li>Striving for Excellence </li></ul><ul><li>Thriving </li></ul><ul><li>Transformation </li></ul><ul><li>Eagle Paradigm </li></ul><ul><li>Paradigm Reinvention </li></ul>
  43. 43. <ul><li>BMI-CSLOR </li></ul>LR MOVING OUT OF THE COMFORT ZONE (Based on Treat : 1999) FUTURE UNKNOWN WORLD (“The Promised Land”) CURRENT KNOWN WORLD (“The Wilderness”) The Great Exchange <ul><li>Pull of the Past </li></ul><ul><li>Slavery </li></ul><ul><li>Day to Day issues </li></ul><ul><li>Satisfied with Mediocrity </li></ul><ul><li>Surviving </li></ul><ul><li>Conformity </li></ul><ul><li>Grasshopper Paradigm </li></ul><ul><li>Paradigm Paralysis </li></ul><ul><li>Challenge of the Future </li></ul><ul><li>Freedom </li></ul><ul><li>Dreams and Visions </li></ul><ul><li>Striving for Excellence </li></ul><ul><li>Thriving </li></ul><ul><li>Transformation </li></ul><ul><li>Eagle Paradigm </li></ul><ul><li>Paradigm Reinvention </li></ul>UNIVERSAL HUMAN PARADIGM FOCUS ON DOING REINVENTION MASTER PARADIGM FOCUS ON BEING
  44. 44. <ul><li>BMI-CSLOR </li></ul>LR MOVING OUT OF THE COMFORT ZONE (Based on Treat : 1999; Senge et al: 2005) FUTURE UNKNOWN WORLD (“The Promised Land”) CURRENT KNOWN WORLD (“The Desert”) The Great Exchange Thomas Kuhn found in his study of scientific revolutions that you can’t convince the protectors of the old paradigm with better arguments. The reality is that you have to wait until the establishment scholars finally retire from their positions and are replaced by a younger and more open generation of scientists. (Senge, Scharmer, Jaworski and Flowers: 2005)
  45. 45. <ul><li>BMI-CSLOR </li></ul>LR MOVING OUT OF THE COMFORT ZONE (Based on Treat : 1999; Senge et al: 2005) FUTURE UNKNOWN WORLD (“The Promised Land”) CURRENT KNOWN WORLD (“The Desert”) The Great Exchange No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of life. It is life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. (Steve Jobs, graduation address at Stanford University : 2005)
  46. 46. <ul><li>BMI-CSLOR </li></ul>LR THE SHIFT IS IN WHO YOU ARE BEING. CHANGE IN BEING Achieved through LANGUAGE CONVERSATION SAID OR UNSAID SHARED MEANING SPEAKING LISTENING CFNP CFP POWER : SPEED OF SHIFT : DECLARATION OF POSSIBILITY REQUESTS AND PROMISES LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM CHANGE IN BEING Achieved through LANGUAGE
  47. 47. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) Language is the only leverage for changing the context of the world around us. This is because people apprehend and construct reality through the way they speak and listen. LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM
  48. 48. <ul><li>BMI-CSLOR </li></ul>LR LANGUAGE IN THE REINVENTION MASTER PARADIGM We exist in language. It is by languaging and recurrent actions or human practices that we create meaning together. This is the enactive view of knowing the world; we lay it down as we walk on its path. (Jaworski : 1996)
  49. 49. <ul><li>BMI-CSLOR </li></ul>LR Considering the importance of language and how human beings interact with the world, it is evident that in many ways the development of language was like the discovery of fire - it was such an incredible primordial force. “ I had always thought that we used language to describe the world - now I was seeing that this is not the case.” (Jaworski : 1996) LANGUAGE IN THE REINVENTION MASTER PARADIGM
  50. 50. <ul><li>BMI-CSLOR </li></ul>LR LANGUAGE IN THE REINVENTION MASTER PARADIGM To the contrary, it is through language that we create the world, because it is nothing until we describe it. And when we describe it, we create distinctions that govern our actions. To put it another way, we do not describe the world we see, but we see the world we describe. (Jaworski : 1996)
  51. 51. <ul><li>BMI-CSLOR </li></ul>LR OPERATING MODEL BUSINESS MODEL MENTAL MODEL POLITICAL MODEL WHAT PEOPLE ACTUALLY DO ON A DAY TO DAY BASIS ALL THE CHOICES THE COMPANY HAS MADE ABOUT VARIOUS COMPONENTS OF ITS BUSINESS CONCEPT ALL THE BELIEFS THAT INDIVIDUALS HOLD ABOUT WHAT DRIVES SUCCESS IN THE INDUSTRY THE WAY POWER IS DISTRIBUTED THROUGHOUT THE ORGANISATION, IN PARTICULAR THE POWER TO ENFORCE MENTAL MODELS ALIGNMENT - WHICH IS GOOD IF THERE’S NO OR SLOW CHANGE ! (Based on Hamel : 2000) MENTAL MODELS
  52. 52. <ul><li>BMI-CSLOR </li></ul>LR OPERATING MODEL BUSINESS MODEL ULTIMATELY YOU NEED TO INVENT NEW BUSINESS CONCEPTS OR DRAMATICALLY REINVENT THOSE YOU ALREADY HAVE. YET THERE IS NO WAY OF INNOVATING AROUND THE BUSINESS CONCEPT UNLESS YOU CAN FIRST MOVE YOUR COMPANY’S MENTAL MODEL OFF DEAD CENTRE. MENTAL MODEL POLITICAL MODEL (Based on Hamel : 2000) POLITICAL MODEL SPACE TO CREATE NEW BUSINESS CONCEPTS MENTAL MODEL MENTAL MODELS
  53. 53. <ul><li>BMI-CSLOR </li></ul>LR WHEN MENTAL MODELS WERE HIJACKED The fateful day of 11 September 2001 MENTAL MODELS
  54. 54. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>The debate about US intelligence following 9/11 terrorist attacks illustrates the difficulty of making sense in today’s complex environment. </li></ul><ul><li>Congressional post-mortems focused on who knew what and when – on the information – but not on the more critical mental models that shaped how that information was processed. </li></ul><ul><li>What led to the tragedy was not primarily a shortage of data. </li></ul><ul><li>This was not a failure of intelligence per se. It was at least in part, much more a failure to make sense. </li></ul><ul><li>Information was filtered through existing mental models related to terrorism and hijackings. </li></ul><ul><li>They followed a certain well established pattern </li></ul>WHEN MENTAL MODELS ARE HIJACKED, IT IS IMPOSSIBLE TO MAKE SENSE MENTAL MODELS
  55. 55. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>The plane and its crew typically were taken hostage and flown to some remote location, where the hijackers made demands. </li></ul><ul><li>Pilots were instructed that the best course of action for passengers and crew was not to resist. </li></ul><ul><li>During the September 11 attacks, the information was filtered through a set of mental models that made it hard to see what was really happening until it was too late. </li></ul><ul><li>The events of September 11 also powerfully illustrate the power of shifting mental models. </li></ul><ul><li>When passengers on the third plane, United Flight 93, received reports by cell phone from friends and family about the attack on the World Trade Centre, several quickly realised that this was not a typical hijacking. </li></ul>SHIFTING MENTAL MODELS WHEN MENTAL MODELS ARE SHIFTED, SENSEMAKING BECOMES POSSIBLE
  56. 56. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>In a matter of minutes, they were able to transform their mental models and take heroic actions to stop the hijackers. </li></ul><ul><li>As a result, the last plane failed to reach its target, crashing in a field in western Pennsylvania, a tragedy that could have been much worse if some of its passengers hadn’t been able to make sense of what was going on and moved to stop it. </li></ul><ul><li>The passengers and crew of Flight 93 were presented with a picture that was similar to the hijackings earlier that day. </li></ul><ul><li>What they suddenly developed, however, was a different mental model. </li></ul><ul><li>They were able to quickly make sense of what was happening and act on this new understanding. </li></ul><ul><li>And that made all the difference. </li></ul>TRANSFORMING MENTAL MODELS (Source: Wind and Crook: 2005) WHEN MENTAL MODELS ARE TRANSFORMED, SENSEMAKING MAKES THE DIFFERENCE IN CREATING THE FUTURE.
  57. 57. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY
  58. 58. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY
  59. 59. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) In the realm of possibility, we gain our knowledge by invention. We speak with the awareness that language creates categories of meanings that open up new worlds to explore. Life appears as variety, pattern, and shimmering movement, inviting us in every moment to engage. The pie is enormous, and if you take a slice, it is whole again.
  60. 60. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) On the whole, resources are likely to come to you in greater abundance when you are generous and inclusive and engage people in your passion for life. When you are oriented to abundance, you care less about being in control, and you take more risks. You may give away short-term profits in pursuit of a bigger dream ; you may take a long view without being able to predict the outcome. In the measurement world, you set a goal and strive for it. In the universe of possibility, you set the context and let life unfold.
  61. 61. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) What is the practice that orients you to a universe of possibility? It is a practice for revealing the hidden framework or paradigm from which the world of measurement springs. When you see how thoroughly that framework rules your life, you will have located yourself in the realm of possibility beyond it.
  62. 62. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) So ask yourself: How are my thoughts and actions, in this moment, reflections of the measurement world? You look for thoughts and actions that reflect survival and scarcity, comparison and competition, attachment and anxiety. You keep asking the question until you finally appreciate how hopeless it is to escape being shaped by the assumptions that underlie all your life.
  63. 63. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) And then you may begin to laugh. And when someone asks, ‘How are you?’ it may appear to you utterly ridiculous to try to assess yourself, or to express life as a struggle and a burden, and before you know it, the word ‘perfect’ may just pop out. And you will be smiling. For you will have stepped into a universe of possibility.
  64. 64. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) Suppose that a universe of possibility stretches beyond the world of measurement to include all worlds: infinite, generative and abundant. Unimpeded on a daily basis by the concern for survival, free from the generalised assumption of scarcity, a person stands in the great space of possibility in a posture of openness, with an unfettered imagination for what could be.
  65. 65. <ul><li>BMI-CSLOR </li></ul>LR (Zander: 2000) The great space of Possibility? Am I speaking from here? THE UNIVERSE OF POSSIBILITY
  66. 66. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) The action in the universe of possibility may be characterised as generative, or giving, in all senses of the word – producing new life, creating new ideas , consciously endowing with meaning, contributing, yielding to the power of contexts. The relationship between people and environments is highlighted, not the people and things themselves. Emotions that are often relegated to the special category of spirituality are abundant here: joy, grace, awe, wholeness, passion and compassion.
  67. 67. <ul><li>BMI-CSLOR </li></ul>LR THE UNIVERSE OF POSSIBILITY (Zander: 2000) It is not a simple dichotomy between being successful and living a kind-hearted feel-good life. On the whole, you are more likely to extend your business and have a fulfilled life if you have the attitude that there are always new customers out there waiting to be enrolled rather than that money, customers, and ideas are in short supply. You are more likely to be successful , overall, if you participate joyfully with projects and goals and do not think your life depends on achieving the mark because then you will be able to connect to all people around you.
  68. 68. <ul><li>BMI-CSLOR </li></ul>LR The name of the Game is . . . being alert, deliberately waiting, in a world of possibility and abundance….. so that when the cubic centimetre of chance pops out, the necessary COURAGE, speed, and the prowess to pick it up, is available. THE REINVENTION MASTER PARADIGM (After Goss : 1996; Zander: 2000) Staying in conversation ... Being present for Taking a stand, making declarations . . . Making unreasonable requests, bold promises, with no “FEAR OF MAN” . . . Reinvented human being . . . there is no such thing as right or wrong, should or shouldn’t; what is possible is what I say is possible . . . Possibilities, opportunities, the cubic centimetre of chance . . .
  69. 69. <ul><li>BMI-CSLOR </li></ul>LR Staying in conversation ... Taking a stand, making declarations Being present for The name of the Game is . . . being alert, deliberately waiting, in a world of possibility and abundance….. so that when the cubic centimetre of chance pops out, the necessary speed, and the prowess to pick it up, is available. THE REINVENTION MASTER PARADIGM (After Goss : 1996; Jaworski: 1996; Zander: 2000 et al) . . . Making unreasonable requests, bold promises, with no “FEAR OF MAN” . . . Reinvented human being . . . rapidly declaring impossibilities possible and changing the reality of self and others . . . Possibilities, opportunities, the cubic centimetre of chance . . . THE CUBIC CENTIMETRE OF POSSIBILITY DECLARE THE IMPOSSIBLE POSSIBLE SPEAK THE FUTURE INTO EXISTENCE + SOURCE OF POWER A NEW WAY OF BEING To CREATE the future envisioned CONTENT OF DECISIONS FUTURE PROCESS OF DECISION MAKING FUTURE CONTEXT IN WHICH DECISIONS OCCURS FUTURE
  70. 70. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) There is great leverage in TRANSFORMING yourself simply by paying attention to what you LISTEN for and how you SPEAK THE REINVENTION MASTER PARADIGM
  71. 71. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) THE VELOCITY WITH WHICH YOU MOVE ANY DESIGNATED POSSIBILITY FORWARD TO REALITY DEPENDS ON THE NUMBER OF CONVERSATIONS FOR ACTION YOU ARE ENGAGED IN. THE REINVENTION MASTER PARADIGM
  72. 72. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) THE MORE REQUESTS AND PROMISES YOU ARE ENGAGED IN, THE FASTER THE POSSIBILITY BECOMES A REALITY. THE REINVENTION MASTER PARADIGM
  73. 73. <ul><li>BMI-CSLOR </li></ul>LR (Goss : 1996) During this game : You will always be in action You won’t take action on fulfilling the declaration of possibility itself The game is intentionally designed so that the realm of possibility you declared might not be fulfilled in your lifetime It is so large in scope, so sweeping , that it is handled by making a series of bold promises and taking action, again and again, to fulfil them and You continue to make new promises standing in the future you declared THE REINVENTION MASTER PARADIGM
  74. 74. <ul><li>BMI-CSLOR </li></ul>LR (Jaworski : 1996) LEADERSHIP REINVENTION A SHIFT IN NATURE OF OUR COMMITMENT A shift in the nature of our commitment beginning not with will, but with willingness. Based on trust in the playing out of our destiny. Knowing that whatever we need at the moment to meet our destiny will be available to us. At this point we alter our relationship with the future.
  75. 75. <ul><li>BMI-CSLOR </li></ul>LR (Jaworski : 1996) LEADERSHIP REINVENTION PEOPLE GATHER Out of this commitment, a certain flow of meaning begins. People gather around you, and a larger conversation begins to form. You exert an enormous attractiveness, not because you are special, but because people are attracted to authentic presence , and to the unfolding of a future that is full of possibilities.
  76. 76. <ul><li>BMI-CSLOR </li></ul>LR LEADERSHIP REINVENTION: SYNCHRONICITY The seemingly accidental meeting of two unrelated causal chains in a coincidental event which appears both highly improbable, and highly significant. The people who come to you, are the very people you need in relation to your commitment. Doors open, a sense of flow develops, and you find you are acting in a coherent field of people who may not even be aware of one another. (Jaworski : 1996)
  77. 77. <ul><li>BMI-CSLOR </li></ul>LR You are not acting individually any longer, but out of the unfolding generative order. This is the unbroken wholeness of the implicate order out of which seemingly discrete events take place. At this point your life becomes a series of predictable miracles. (Jaworski : 1996) LEADERSHIP REINVENTION: SYNCHRONICITY
  78. 78. <ul><li>BMI-CSLOR </li></ul>LR The leadership that can bring forth such predictable miracles is more about being than doing. It is about our orientation of character, our state of inner activity. When we stand in this fundamentally open and interconnected state of being, we are like the Sumarai warrior, waiting expectantly with acute awareness for the cubic centimetre of chance to present itself. (Jaworski : 1996) LEADERSHIP REINVENTION: SYNCHRONICITY
  79. 79. <ul><li>BMI-CSLOR </li></ul>LR When it does, we must act with lightning speed and almost without conscious reasoning. It is at this point that our freedom and destiny emerge, and we create the future into which we are living. (Jaworski : 1996) LEADERSHIP REINVENTION: SYNCHRONICITY
  80. 80. <ul><li>BMI-CSLOR </li></ul>LR POWER IN THE REINVENTION MASTER PARADIGM (Goss : 1996) IS THE SPEED WITH WHICH YOU CAN DECLARE something CURRENTLY IMPOSSIBLE, AS POSSIBLE, AND TURN THAT POSSIBILITY INTO A REALITY. TO DEAL WITH THE IMPOSSIBLE YOU MUST GET INTO THE TERRITORY OF CONTEXT : THE WAY YOU ARE BEING. (YOU CANNOT IMPROVE SOMETHING THAT DOES NOT EXIST)
  81. 81. <ul><li>BMI-CSLOR </li></ul>LR CHANGE ENVIRONMENTALY DIRECTED REACTIVE CHANGE : THE RECOVERY TROUGH SHOCK DENIAL BARGAINING ANGER SADNESS DEPRESSION ACCEPTABLE PERFORMANCE PREDICTING THE FUTURE POSSIBLE RESULTS FIRST CURVE SECOND CURVE CONTINUOUS IMPROVEMENT BENCHMARKING SURVIVAL RESISTANCE TO CHANGE (Based on Handy : 1994)
  82. 82. <ul><li>BMI-CSLOR </li></ul>LR CREATING THE FUTURE SELF-DIRECTED TRANSFORMATION CRITICAL MESS ENVIRONMENTAL CHANGE RISK RUDE AWAKENING CHAOS UNCERTAINTY FIRST CURVE SECOND CURVE CREATING THE FUTURE IMPOSSIBLE RESULTS EMERGING ORDER STRANGE ATTRACTORS (Based on Handy : 1994) THE BUTTERFLY EFFECT THE EDGE OF CHAOS ZONE OF CREATIVITY AND ADAPTABILITY
  83. 83. <ul><li>BMI-CSLOR </li></ul>LR INDUSTRY AND COMPLEXITY THE EDGE OF CHAOS (Source: Based on Johnson and Scholes: 2002) First curve Second curve Creativity Emergence Intuitive capacity Permeable boundaries Status Quo Future CHAOS Challenge the Mindsets. Paradigms, Blind Spots, Mind forged MANACLES!
  84. 84. <ul><li>BMI-CSLOR </li></ul>LR Present Past Future The Edge of Time Chaos Edge of Chaos Structure The Edge of Chaos (Source: Brown and Eisenhardt: 1998) COMPETING ON THE EDGE OF CHAOS
  85. 85. <ul><li>BMI-CSLOR </li></ul>LR Present Past Future The Edge of Time Chaos Edge of Chaos Structure The Edge of Chaos (Source: Brown and Eisenhardt: 1998) COMPETING ON THE EDGE OF CHAOS New order can emerge from chaos. Complexity theory argues that nothing innovative can emerge from systems with a high degree of order and stability (eg regulated industries); similarly, completely chaotic systems (eg riots) are incapable of functioning or creating anything. Somewhere on the boundary between order and disorder, control and chaos, sits creativity, innovation, self-renewal and growth. Pascale (1999) calls this point “the edge of chaos”. (OUBS, Strategy: Unit 8: 28)
  86. 86. <ul><li>BMI-CSLOR </li></ul>LR New Context Scope of change and transformation PARADIGM PIONEER PARADIGM PARALYSIS Standing still Out of the box Bench marking Impact of Change and transformation PARADIGM REINVENTION PARADIGM SHIFT MANAGEMENT PARADIGM FOCUS ON DOING PARADIGMS CHALLENGED THE ENVIRONMENT LEADERSHIP PARADIGM FOCUS ON BEING COMPETING ON THE EDGE OF CHAOS <ul><li>PARADIGMS REINVENTED </li></ul><ul><li>TRANSFORMATION </li></ul>QUANTUM CHANGE OR DEMISE Improving Resistance to Change THE EDGE OF CHAOS DISCOMFORT The current and known world The future, unknown
  87. 87. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>Competing on the edge rests on the assumption that the marketplace is in constant flux. </li></ul><ul><li>The assumption of static equilibrium no longer applies. </li></ul><ul><li>Rather the view is that competitors come and go. Markets emerge, close, shrink, split, collide and grow. </li></ul><ul><li>Today’s collaborators are tomorrow’s competitors . . . or both. </li></ul><ul><li>Technology is constantly shifting. Getting to the market early matters. </li></ul><ul><li>In complexity parlance, the marketplace is a continuously deforming landscape. </li></ul><ul><li>The image of this kind of landscape is of a terrain richly contoured by peaks and valleys . </li></ul><ul><li>And it is continuously reshaped by warp-speed change. </li></ul>COMPETING ON THE EDGE OF CHAOS
  88. 88. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>The second assumption is that firms are composed of numerous parts or agents, or businesses. </li></ul><ul><li>When these parts are linked together at the edge of chaos and time, they form complex adaptive systems. </li></ul><ul><li>These systems are complex not because they are complicated. They are actually fairly simple. </li></ul><ul><li>Rather, “complex” describes the complicated, innovative and self-organised behaviour that emerges from them. </li></ul><ul><li>They are adaptive because they can change effectively. </li></ul>COMPETING ON THE EDGE OF CHAOS
  89. 89. <ul><li>BMI-CSLOR </li></ul>LR <ul><li>The key assertion is that successful firms in fiercely competitive and unpredictably shifting industries pursue a competing on the edge strategy. </li></ul><ul><li>The goal of this strategy is not efficiency or optimality in the usual sense. </li></ul><ul><li>Rather, the goal is flexibility – that is adaptation to current change and evolution over time, resilience in the face of setbacks, and the ability to locate the constantly changing sources of advantage. </li></ul><ul><li>Ultimately it means engaging in continual reinvention. </li></ul>COMPETING ON THE EDGE OF CHAOS
  90. 90. <ul><li>BMI-CSLOR </li></ul>LR (Source: Brown and Eisenhardt: 1998) COMPETING ON THE EDGE OF CHAOS
  91. 91. <ul><li>BMI-CSLOR </li></ul>LR Roll out new branches, source and develop new products, develop new markets, discover new customers, diversify. LEADING CHANGE. (Source: Brown and Eisenhardt: 1998: 23) Building Blocks COMPETING ON THE EDGE OF CHAOS
  92. 92. <ul><li>BMI-CSLOR </li></ul>LR Navigating the Edge of Chaos: Improvisation Entrepreneurial and creative, visionary thinking, possibility and abundance, continuous learning, Emergent teams, self selected and self-organised, emergent strategy Simple rules, Influence rather than control, Flat structure, Strategic Conversations, COMMUNICATION (Source: After Brown and Eisenhardt: 1998: 47) COMPETING ON THE EDGE OF CHAOS
  93. 93. <ul><li>BMI-CSLOR </li></ul>LR Co-adaptation Networking, teamwork, alliances, joint ventures, partnerships Industry Knowledge, Local autonomy, decentralised, distributed power. Rapid response, Flexibility, Leveraging strategic capability, Unique resources, core competencies (Source: After Brown and Eisenhardt: 1998: 80) COMPETING ON THE EDGE OF CHAOS
  94. 94. <ul><li>BMI-CSLOR </li></ul>LR Regeneration Simultaneous first and second curve thinking; Leveraging core competencies across Business Units. Protect and build; Product enhancement; market penetration; Create services that exploit change. Respect experience; Win-win relationships; Redefine the boundaries, change the game rules, reconfigure the value chain. (Source: After Brown and Eisenhardt: 1998: 114) COMPETING ON THE EDGE OF CHAOS
  95. 95. <ul><li>BMI-CSLOR </li></ul>LR Experimentation Creativity and innovation; explore opportunities within context of strategic intent Strategise to intercept the future, Market development, product development, diversification. Exploring the future, emerging strategy, Reinvention and transformation (Source: After Brown and Eisenhardt: 1998: 149) COMPETING ON THE EDGE OF CHAOS
  96. 96. <ul><li>BMI-CSLOR </li></ul>LR ? Impossible Results UNIVERSAL HUMAN PARADIGM <ul><li>Incremental improvement </li></ul><ul><li>Benchmarking </li></ul><ul><li>Predicting the future </li></ul>Risk Tolerance Possible Results CONFIDENCE HIGH LOW Risk Taking Paradigm Reinvention Smaller, Better, Faster, Different Paradigm Shift Doing Being <ul><li>Current reality : How are we being right now? </li></ul><ul><li>Strategic conversations : </li></ul><ul><li>How are we being in relation to our context ? </li></ul><ul><li>Are we in enough strategic conversations ? </li></ul><ul><li>What’s missing, essential, what’s next ? </li></ul>CONTEXT : WAY OF BEING REINVENTION MASTER PARADIGM <ul><li>Declaring the future based on no evidence </li></ul><ul><li>Operating beyond the limits of Winning Strategy </li></ul>Risk Making Risk Avoidance Risk Aversion
  97. 97. <ul><li>BMI-CSLOR </li></ul>LR The ever renewing organisation (or society) is not one which is convinced that it enjoys eternal youth. It knows that it is forever growing old and must do something about it. It knows that it is forever producing deadwood and must, for that reason, attend to its seedbeds. The seedlings are new ideas, new ways of doing things, new approaches . (Gardner: 1981: 68) COMPETING ON THE EDGE OF CHAOS
  98. 98. <ul><li>BMI-CSLOR </li></ul>LR TO REINVENT THE LEADERSHIP FIRST THEN THE ORGANISATION THEN THE INDUSTRY Leaders make the impossible happen The challenge is

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