The Ecology of Complex Change. Based on As nature intended: the ecology of complex change, by Annika Ratcliffe, TJ, March 2007, p.

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1 The Ecology of Complex Change Based on As nature intended: the ecology of complex change, by Annika Ratcliffe, TJ, March 2007, p.47-49

2 The best way to predict the future is to create it. Peter Drucker

3 Creating the future sounds as problematic as changing the present

4 Change Theory Just theory A lot of practical advice impractical

5 Management Ecology Based on the insight that organizations are living systems Draws on evolutionary studies, systems and chaos theory and cybernetics Organizations develop like any natural systems All systems in nature follow identical patterns of growth and change. Gives rich insights into organizational and human changeability Fundamental to this approach is a simple shape, the S Curve

6 The S Curve

7 S Curve Describes the growth, change and ultimate collapse of natural systems Applications seem endless population growth, decline in share performance, growth of bacteria in a Petri dish

8 Management Ecology Changes emerges whether you like it or not Population establish themselves, grow to an optimum level and die off In organizational terms, managers can affect each stage of an S curve but not the fact that change will happen and will follow this shape

9 The S Curve Provides a predictable core in a seemingly chaotic situation Most managers know intuitively where their organizations sit on the S curve Once the knowledge is made explicit that can create conditions for natural growth

10 4-Stage S Curve Success/ Fulfillment completion consolidation growth invention time

11 Invention Start of an organization or a phase in its life Needs creative, imaginative people Formal controls light No track record to draw on Organizational structures and job roles invented as necessary Recruitment opportunistic Progress jerky Big success and fallow periods alternate

12 Growth Organization grows ahead of norms Patterns emerge Internal systems begin to grow

13 Consolidation Mature organization Highly structured A culture and past record used as a basis for future planning Costs controlled Staff takes on defined roles Organization become conservative and risk-averse

14 Completion More effort is needed to get any growth Return on investment plummets Tried-and tested methods fail External conditions, attitudes and needs change Organization find itself irrelevant

15 Reinventing Itself An organization can do it Once leaders understand where they are on the S curve, they can prepare to jump to the next one Successful organizations accomplish this

16 Consolidation and Completion Involve more than implied in the above At precisely their moment of greatest success, organizations should prepare for change Should harvest their core activities Invest in people who can create the next stage of their organization Completion becomes the point where the organization jumps on to another S curve (See following slide)

17 Shifting from one S curve to the next 1. Design the future 2. Upscale the organization 3. Operate the organization 4. Stretch the current cycle 5. Close down current organization model 6. Jump and transform 7. Anticipate and plan for the next curve 8. Save and nurture the core values Oriented Towards The future Norms Rules Procedures Structures Operations Strategy Mission Vision Dream Ideas Values Oriented Towards t he past 1

18 Organizational Change People issues most intractable Changing mindsets getting people to think in new ways key to transformation Call for most effort and cause most heartbreak Management ecology makes the most practical contribution in the area of people organization, management and development

19 Diversity You need different sorts of people in an organization in terms of gender, age, religious belief, sexual preference, ethnicity, etc. Deals with a far wider issue different thinking styles, skills, values, personalities and preference Leveraging these differences Some differences are hard-wired into people and difficult to alter Three of these drivers specifically affect how well people respond to change and insecurity

20 Attachment, Exploration and Maturity (AEM) Cube An instrument to measure the drives

21 Attachment Most fundament drive in human beings Either tend to people or to content People-attached people more able to contribute to change when they have close bonds with people important to them Matter-attached people contribute to change when they have a strong emotional bond with the content of their task, the activity itself, and their technical competence Having the right secure attachments means people will accept change Insecure attachment means they will use their energy to find security

22 Exploration People either naturally exploration or stability oriented Exploratory people gather information from their environment and use to create the future without knowing whether the outcome positive or negative Stability-oriented people make ideas concrete and implement them using feedback that tells them how well things are going

23 Maturity How well an individual assimilate life experiences and develop the capability to tackle complex, unsafe or unpredictable circumstances Measures how key people are positioned on these drives Have a picture of where on the S curve they will make their most important contribution

24 Planning for change

25 Feedback The basis for how living systems keep in balance Information on the past used to keep processes efficient A key management tool

26 Management Ecology Drawing on cybernetics introduces a different kind of information-gathering process Feedforward our ability to imagine the future and work towards it reaching a goal, a vision or creativity

27 Too much feedforward Creative anarchy Dot-com boom As pace of change accelerated over the last 40 years

28 Management Ecology Need both feedback and feedforward At different states need to emphasize one rather than the other Need to ensure that one does not crowd out the other

29 Leadership

30 Good Leadership Creating continuity when change really bites Consistency the extent to which people perceive that there is a consistent set of values and management behaviours that create a foundation of trust, from which the challenges of a changing world can be tackled with confidence in mutually supportive environment Called to be change agents and must marshal forces to set the change going But must also ensure that there are certain unchanging elements in the organization

31 Genuine Values Not a side issue but central to successful changing organizations How leaders communicate them creates an environment where people feel comfortable and contribute most Change only possible where there is consistency and people develop secure attachments

32 Summary

33 Change Not a special project but a fact of nature You need people who create and welcome change and those who are averse to it but need to be in the right roles

34 Change Leadership Providing the right conditions within which change occurs naturally Consistency upholds the organizations personality and help staff develop secure attachments so they won t resist change Prepare for change as soon as your are successful The past helps you plan a mature organization but will blind you to warning signs of failure

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