From Ego-system to Eco-system – Leading from the Emerging Future!


The problem with capitalism originates between our ears!
– by Otto Scharmer of Theory-U and Presencing Institute brings the best-ever overview of requirements of the Transition Narrative (ecoNVERGE / @ Econologics) for humanity to evolve to a new Paradigm Shift.

Otto Schramer

The root cause of today’s global crises originates between our ears

 

Profound personal, societal and global renewal is not only possible; it is crucial for our planetary future. What is needed are change makers willing to lead from the emerging future; leaders who are willing to learn about and practice the journey from ego-system to eco-system economies. We have the places, living examples, frameworks and tools in hand. Now what we need is the co-creative vision and the common will to bringing it into reality.

10 insights from our new book Leading From the Emerging Future: From Ego-system to Eco-system Economies

We live in an age of profound disruption. Global crises, such as finance, food, fuel, water, resource scarcity and poverty challenge just about every aspect of society. Yet, this disruption also brings the possibility of profound personal, societal and global renewal. We need to stop and ask: Why do we collectively create results nobody wants? What keeps us locked into the old ways of operating? And what can we do to transform these root issues that keep us trapped in the patterns of the past?

1) The root cause of today’s global crises originates between our ears — in our outdated paradigms of economic thought

A structural disconnect between:

  • the infinite growth imperative and the finite resources of planet earth;
  • between the Haves and the Have Nots;
  • between the financial and the real economy;
  • between technology and real societal needs;
  • between institutional leadership and people;
  • between gross domestic product (GDP) and actual well-being;
  • between governance mechanisms and the voiceless in our systems; and
  • between actual ownership forms and best societal use of property.

 

Three Levels Symptoms Systemic Disconnects Paradigms of Economic Thought

Three Levels: Symptoms; Systemic Disconnects; Paradigms of Economic Thought

2) The blind spot of modern economic thought can be summarized with a single word: consciousness
3) The evolution of the economy and of modern economic thought mirrors the footprints of an evolving human consciousness

The stages of economic development that come with them:

  • 1.0 Organizing around centralized coordination
  • 2.0 Organizing around decentralized coordination
  • 3.0 Organizing around special interest group driven coordination
  • 4.0 Organizing around commons

4) To paraphrase Einstein, the problem with today’s capitalism is that we are trying “to solve problems with the same consciousness that created them”
5) Helping stakeholder systems shift their way of operating from ego-system to eco-system awareness is the central leadership challenge of our time
6) The shift from ego-system to eco-system awareness requires a journey that involves walking in the shoes of other stakeholders and attending to the three instruments of inner knowing: open mind, open heart, and open will

 

Theory U: One Process, Three Instruments (Open Mind, Open Heart, Open Will)

Theory U: One Process, Three Instruments (Open Mind, Open Heart, Open Will)

 

The effectiveness of accessing these three instruments depends on the ability to deal with the sources of resistance (“three enemies”):

  • VoJ (Voice of Judgment): The VoJ shuts down the Open Mind by habitually judging self and others. All creativity techniques start with somehow suspending the VoJ.
  • VoC (Voice of Cynicism): The VoC shuts down the Open Heart by offering an easy alternative to making oneself vulnerable. The problem with that easy exit is that it does the same thing as the VoJ: it blocks one’s opening process for accessing the deeper sources of creativity.
  • VoF (Voice of Fear): The VoF tends to shut down the Open Will by not letting go but holding on to old identities, ideologies, and Us vs. Them belief structures.

7) Addressing the current global crisis at its root calls for a 4.0 update of the economic operating system through reframing eight “acupuncture points” of the global economic system

They are:

  1. Nature: Close the feedback loop of production, consumption, reuse, and recycling through “earth-to-earth” or closed-loop design.
  2. Labor: Close the feedback loop from work (jobs) to Work (passion) by building infrastructures that foster and ignite inspired entrepreneurship.
  3. Capital: Close the feedback loop of capital by redirecting speculative investment into ecological, social, and cultural-creative renewal.
  4. Technology: Close the feedback loop from technology creation to societal needs in underserved communities through needs assessment and participatory planning.
  5. Leadership: Close the feedback loop from leadership to the emerging future of the whole through practices of co-sensing, co-inspiring, and co-creating.
  6. Consumption: Close the feedback loop from economic output to the well-being of all through conscious, collaborative consuming and through new well-being indicators such as GNH (Gross National Happiness).
  7. Coordination: Close the feedback loop in the economy from the parts to the whole through ABC (awareness-based collective action).
  8. Ownership: Close the feedback loop from ownership rights to the best societal use of assets through shared ownership and commons-based property rights that safeguard the interests of future generations.
Eight Acupuncture Points of Transforming Capitalism to 4.0

Eight Acupuncture Points of Transforming Capitalism to 4.0

 

8) Shifting the system to 4.0 requires a threefold revolution

Inversion means turning inside-out and outside-in:

  • Individual inversion means to open up thinking (open mind), feeling (open heart), and will (open will) in order to learn to act as an instrument for the future that is wanting to emerge.
  • Relational inversion means to open up communicative relationships from downloading (conforming) and debate (defending) to dialogue (reflective inquiry) and collective creativity (flow) in order to tune as groups into the field of the future.
  • Institutional inversion means to open traditional institutional geometries of power from 1.0 and 2.0 forms of coordinating and organizing — centralized hierarchy and decentralized competition — to 3.0 and 4.0 forms of coordinating around co-creative stakeholder relationships in eco-systems that generate well-being for all.
The Matrix of Social Evolution (all system levels, all structures of attention)

The Matrix of Social Evolution (all system levels, all structures of attention)

the three transformations for the individual (column 1), the relational (column 2) and the institutional inversion (column 3 and 4) in the form of a Matrix of Social Evolution that integrates all system levels (micro-meso-maco-mundo) and all structures of awareness (1.0 to 4.0).
9) We need new types of innovation infrastructures in order to build collective leadership capacities on a massive scale

These infrastructures will include:

  • Co-initiating: Creating spaces for convening stakeholders around a shared eco-system
  • Co-sensing: Going to the places of most potential and observing with one’s mind and heart wide open
  • Co-inspiring: Creating spaces for connecting to the sources of creativity and self
  • Co-creating: Creating spaces for exploring the future by doing (prototyping)
  • Co-shaping: Creating spaces for embodying and scaling the new through practices

10) The shift from an ego-system to an eco-system economy requires a global movement that needs to be supported by a new leadership school. That school should create collaborative platforms across sectors, systems, and generations and work through integrating science, art, and the practice of profound, awareness-based change

Such a new leadership school would be a home base for the emerging global movement of 4.0-related transformation journeys. At the same time, it would prototype a 21st century action university that integrates three forms of knowledge:

  • technical knowledge (know-what),
  • practical knowledge (know-how) and
  • transformation knowledge (know-who: self knowledge).

 

An Ego-2-Eco Transformation Leadership School—A Set of Global Acupuncture Points

An Ego-2-Eco Transformation Leadership School—A Set of Global Acupuncture Points

 

Set of principles that are essential for this type of school and which are designed for global-local replication:

  1. Engage systems at all levels and states: Engage systems by using the entire Matrix of Social Evolution.
  2. Engage all levels of intelligence: Integrate open mind (IQ: intellectual knowledge), open heart (EQ: emotional and relational knowledge), and open will (SQ: self knowledge).
  3. Systems Thinking: Integrate methods and tools derived from 30 years of organizational learning research and practice. 
  4. MOOCs: Use massive open online courses that combine course delivery with interactive personal, small-group dialogue and the presence of a global community of change makers that effects transformative change.
  5. Deep immersion: Use deep dive learning journeys and generative listening practices in order to connect communities and places of most potential.
  6. Science 2.0: Use scientific methods that let the “data talk to you.” The challenges of this century involve extending the concept of science beyond looking exclusively at exterior data (third-person view). We need to bend the beam of scientific observation back upon the observer in order to investigate the more subtle levels of experience of the second- and first-person view.
  7. Presencing: Use practices that allow leaders to sense and actualize the emerging future and to clarify the two root questions of creativity: Who is my Self? What is my Work?
  8. Power of Intention: Focus on the capacity to connect with the deeper intention of one’s journey, connecting us more deeply with one another, the world and ourselves.
  9. Prototyping: Link head, heart, and hand in order to create living examples and prototypes that allow us to explore the future by doing.
  10. Power of Place: Complement the massive expansion of online learning with an equally massive global network of vibrant entrepreneurial hubs that focus on activating co-sensing and co-creating as a gateway for unleashing entrepreneurial potential. Great innovations happen in places. Learning how to design and hold spaces for reflection, generative conversation, and system-wide transformation is a mission critical capacity today.
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Standing on the shoulders of the OD founders!


– by John Scherer

We learn from the giants who laid out the path for us, more than 3000 years ago.

 

The founders of Organization Development have rooted the tree of OD that grew over centuries. We are on the branches which continue to grow in practicing OD.

 

OD family tree

 

Sigmund Freud – We live life inside 3 interacting domains: self, other people and life!

 

Carl Young – Besides the unconsciousness driving us, there is also a collective unconsciousness. We also have a shadow which is projected on other people close to us!

 

From here John Scherer leads into performance management, conflict resolution, empowerment, leadership, personal development across life stages, motivation, human psychologist, whole personality/character, self esteem and personal growth, transactional counselling, self-help.

 

From here Sherer takes it to the giants of OD:

Frederick Taylor: skill management and coordination, matrix management and quality of life – how to make organizations better

Kurt Lewin: applied behavioural science, seeing what is happening – action research, ownership participation, sensitivity training in group dynamics,

Wilfred Bion: leaderless/self-managing groups, cross functional team learning and shared responsibility, recognizing leadership abilities, focusing on process driven approach

– Douglas mcGregor: X and Y Theory management – motivation and responsibility approach, application oriented OD

 

standing on the shoulders of the OD founders

 

What we learned from the OD founders:

1. No research without action, no action without research

2. Everything is connected, especially technology and people

3. Change is the only constant

4. Small groups are key

5. The people who give you data own it

6. Break existing patterns with people, by involving them

7. Leaders must be authentic (emotional intelligence) and human as well as technically sharp

 

 

A working definition by Billie Alban, John Scherer

OD is the application of action research and systems theory, using participative processes with human systems to increase the internal and external effectiveness of that system and its stakeholders – especially in working with change.

 

– Essential is to engage the entire organization in the process

– People participation in the process of change

– eliminate silo-building and engage with all stakeholders

– It is all about adapting to change

 

To conclude:

Practicing Organization Development – by William J. Rothwell and Roland Sullivan

 

 

Breakdown, Change-as-usual, Breakthrough! @BreakthroughCap


Breakthrough Capitalism: Business Leaders, Market Revolutions!

 – by John Elkington and Susie Braun – Volans

 

biz of biz is more then biz

 

 

“There’s not one business school with a total grip on this.”

 – Gabi Zedlmayer, Vice President, Sustainability and Social Innovation, HP

Business is increasingly critical in tackling the world’s great environmental, social and governance challenges. And at the heart of business sits the C-Suite, the grouping of senior executives who direct the enterprise. Breakthrough is addressed to them – and to those who advise them.

This report reveals both real frustration in business about government failures, and a growing appetite at the leading edge to drive systems-level transformations.

Breakthrough draws on over 100 interviews with key people in the field to sketch a Manifesto and linked agenda to help us move towards that change.

from denial to breakthrough

Three scenarios of how the future could unfold

  1. Breakdown: the almost unremittingly bleak scenario where early experiments fade in the face of wider incomprehension and resistance to change.
  2. As Usual: where earnest efforts are made but overall the outcome is little more than a set of patches of the existing, dysfunctional system.
  3. Breakthrough: Here innovators, entrepreneurs, intrapreneurs, investors and policy makers dare to create ventures with ambitious targets and then, over time, drive them to change the market and political systems within which they operate.

To push towards Breakthrough outcomes, initiatives need to be:

  • Future ready: Able to work well in a world of 7-going-on-9 billion people, providing affordable access to key products or services, while respecting planetary boundaries
  • Ambitious: Aims to transform key aspects of capitalism, and drive radically better outcomes across the triple bottom line
  • Fair: Helps tackle equity issues, including the transfer of intergenerational debt created by public borrowing, natural resource extraction and environmental destabilization
  • Disruptive: Has potential to constructively disrupt the current economic and/or governance orders, moving the needle from incrementalism to system change.

5-stage model Pathways To Scale

Running from the ‘Eureka!’ moment through to the point where a new way of doing things is endemic across the entire ‘Economy

Pathways to scale

Disruptive change is needed

Some problems can be treated with sticking plasters or acupuncture; others require radical surgery. Too many twentieth century institutions—and even models of activism — are now increasingly unfit for purpose. Among challenges that top the current agenda are new forms of accounting, integrated reporting, and incentives to drive longer-term investment, but disruption will involve many other vectors of change.

Global C-Suite in the three Scenarios:

  • Breakdown: Retrospective or short-term focus: Past priorities; how things were done; preservation
  • Change-as-Usual: Short- to medium term focus: Pragmatic accommodation to current realities; incremental change
  • Breakthrough: Focus on past, present and future: Long-term framing; ‘unreasonable people’; how things will be done; disruption

How to convert the CXO?

It is clear, however, that most CSOs start off in a difficult position. Even where they enjoy direct backing from the CEO, they must cajole different members of the C-Suite to implement relevant ventures within their own functions.

  • Breakdown: CSOs absent — or used as camouflage
  • Change-as-Usual: CSOs pursue incremental targets
  • Breakthrough: CSO stretch agenda, standard for all CXOs

Domains of system change

  1. Changing the numbers: subsidies, taxes and standards: Counter-intuitively, the least effective approach to system change can be trying to change the numbers. Numbers do matter. We must change the financial incentives, across markets and across businesses.
  2. Changing buffers, stocks, flows, delays and feedback loops: Meadows warned us that if you dramatically cut the information and money-transfer delays in the financial system, as IT and dark liquidity pools have done, you would be asking for exactly the sort of wild gyrations we ended up with.
  3. Changing information flows: In many markets, a key problem is that information flows via price signals. By contrast, information flows can help where they feed back into system dynamics in ways that help conserve stocks or maintain flows.
  4. Changing the rules: The rules of a system define its scope, boundaries, and resilience. Rules are often high leverage points, which is why constitutions (which set the rules for writing the rules) are so powerful — and why so much effort is put into lobbying politicians and legislators.
  5. Changing the system’s genetic code: The purpose of a system is crucial in determining its behaviour: if profit maximization is the sole purpose, the results will be very different than if there is a balanced scorecard, shared value or triple bottom line orientation. Leaders who can redefine the purpose of a society or a corporation potentially have a very powerful lever at their disposal. We must now pay much more attention to the genetic code that dictates how organizations and cultures operate. And a key part of that coding is the discipline of economics. Meadows again: “Any system, biological, economic, or social, that gets so encrusted that it cannot self-evolve, a system that systematically scorns experimentation and wipes out the raw material of innovation is doomed over the long term on this highly variable planet” — and, we would add, in fast-changing markets.
  6. Changing paradigms: Ultimately, this is the level at which the potential leverage is greatest, but where the resistance to change is often most intense. From our shared social agreements come our system goals, information flows, stocks, flows and feedback loops. Paradigms can be slow to change, because all those “infected” with an earlier paradigm must retire or die, but they can also flip almost overnight when incontrovertible new evidence crashes in. Ultimate power, however, flows from the ability to stand outside current systems and paradigms. And the ultimate characteristic of system mastery, Meadows concluded, is the capacity to “dance with the system.”

System Change 101

1. Science Breakthrough = new knowledge — and new routes to knowledge

  • Change Breakdown: 6 planets – endless resources assumed
  • Change-as-Usual: 2–3 planets – limits understood, but exceeded
  • Breakthrough: 1 planet – paradigm shift, anthropocene

2.   Activism Breakthrough = taking stands — lobbying for change

  • Change Breakdown: Intergenerational debt – Decreasing returns, debt cascaded
  • Change-as-Usual: Intergenerational equity – Intra- and intergenerational rights
  • Breakthrough: Intergenerational wealth – Creation of increasing, sustainable returns

3.   Institutions Breakthrough = old institutions changing, new ones evolving

  • Change Breakdown: Outsiders – activists shut out, ignored
  • Change-as-Usual: Outliers – activists engaged as lead indicators of change
  • Breakthrough: Insiders – global C-suite calls for market revolutions

4.   Access Breakthrough = an end to systemic inequities

  • Breakdown: Producers – Building a world for the super-rich 1%
  • Change-as-Usual: Consumers – Building a global middle class
  • Breakthrough: Prosumers/Makers – Building better futures for ourselves

5.   Finance Breakthrough = a shift to new types of impact investment

  • Breakdown: Negative externalities – Financial capitalism kills other capitals
  • Change-as-Usual: Reported externalities – Accounting goes multi-capital
  • Breakthrough: Positive externalities – Multi-capital, impact investors

6.   Economics Breakthrough = that economists must recalculate

  • Breakdown: Physics as model – Mechanical view of value creation
  • Change-as-Usual: Internet as model – Growing focus on network effects
  • Breakthrough: Ecology as model – Economies seen as living systems

7.   Culture Breakthrough = experimentation and a willingness to fail

  • Breakdown: Obsessed with past – Works for wealthy 1% of 1-2 billion people
  • Change-as-Usual: Driven by present – Works for 30–40% of 7 billion people
  • Breakthrough: Future focused – Works for growing majority of 9-10 billion people

Breakthrough - a revolution of Capitalism

The question now is whether CEOs and other business leaders will be content to remain part of the problem—or whether they have the will and the audacity to ride the rising Breakthrough wave. It must be our business to ensure they have little choice in the matter.

Breakthrough: Business leaders, market revolutions is available for download.

www.breakthroughcapitalism.com/breakthrough-video.html

Breakthrough Capitalism

Current models of capitalism are failing economically, socially and environmentally. As global governance structures weaken, can business be an effective force for change in ensuring a healthy, fair and affordable world for 9 billion people? The Breakthrough Capitalism program explores how business leaders can change the rules, and aims to catalyze the conversations that will make it happen.

More on Breakthrough Capitalism

Breakthrough Capitalism

www.volans.com

 

[Economics & Society]: Former World Bank economist expects total collapse civilization! #Econologics #ecoNable #ecoViVaCity


“Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.” – Albert Einstein

A group of experts warns inevitable and simultaneous implosion of energy, food, water and money systems!
Former World Bank economist expects total collapse civilization!
This article has been adapted and translated from the original publication by a Dutch paper – Xander News (the Other News)
http://xandernieuws.punt.nl/?id=662683&r=1&tbl_archief=&
According to a group of experts, the main causes of the inevitable collapse in the coming years are the politicians, who for years have borrowed too much money and spent. The ceiling has been reached!

It is no longer the single conspiracy and doomsayers who say that the current crisis will never be resolved and that entire Western civilization will collapse.

Richard Duncan, former financial specialist at the World Bank Chief Economist ar Blackhorse Asset Management, told CNBC to see a “death spiral” which will result in a very severe depression which our civilization cannot survive.
Other financial, economic and political experts draw the same apocalyptic conclusions. Duncan spoke in particular about the United States, but the collapse in Europe will be at least of the same magnitude and misery. The official U.S. national debt at $16 trillion has become untenable.

According to Laurence Koktlikoff, once a member of President Reagan’s economic advisory council, mentioned that the actual debt and all financial obligations to the health and social security add another staggering $211 billion.
Simultaneous implosion of money, food, water and energy

A group of scientists, economists and geopolitical analysts see not only a financial and economic collapse coming, but also a social, technological and social. One of them, Chris Martenson, former vice president of a Fortune-300 company, explains that “we have a similar pattern in our debt, total credit and money supply which ensures that they will collapse. This pattern is almost the same as in any pyramid scheme, one that quickly escalates exponentially before it collapses. The main perpetrators are the governments of this world.”

“The fact that this pattern is not limited to the economy is really worrying. We found namely catastrophic same pattern in our energy, food and water. These systems can all simultaneously implode: food, water, energy and money. Everything. ”
Pyramid Game in every critical system

Another member of the team, Keith Fitz-Gerald, head of the eponymous group, notes: “a dangerous countdown that quickly runs towards the zero. And if that happens, the ensuing chaos will crush the Americans.”

Dr. Kent Moors, energy adviser to 16 different governments of the world and a member of two task forces of the Ministry of Foreign Affairs, agrees with his colleagues: “The most frightening is that in virtually every critical system of our society and way of life exactly the same pattern can be seen.”

“This pattern is hard to recognize, unless you understand how a catastrophe as this one gets going. First, it is virtually impossible to detect. Everything seems to be going well, as in every pyramid scheme. The virus grows treacherous quickly and doubles again and again, with ever shorter intervals, until it reached an unsustainable level. And then the system collapses.”

The first doubling took place according to Martenson between the 40s and the 70s. The second doubling took much less time, which is only 7 years (the period 1970-1977). This was also true for the third doubling. The fourth took only 5 years to complete, and then it happened two more times. “In the early 40s, the total credit was about 158% of our GNP, in 2011 it was 357%.”
Savings, pensions wiped

Fitz-Gerald highlights that risky derivatives in the financial system are 20 times higher than the total GNP of the world.

“That is unsustainable and impossible to resolve in an orderly manner. The people can better forget about the guarantees by the government for their (savings) accounts. They give a false sense of security. This also applies to pensions, which may at any time be suspended. A collapse will wipe out all pensions. Social security and health insurance are still kept alive but are already bankrupt. ”

In two years the U.S. government will have no more money for the in many places already crumbling infrastructure. Some cities, such as Trenton, New Jersey had to lay off a third of their police because of budgetary reasons.
Colorado Springs had to turn off a third of the streetlights, slash garbage collection with a third and same for deleting bus routes … all for same reasons.
Skyrocketing inflation

After a period of deflation we will end up with massive inflation in the short term. An average American household will soon need $ 150,000 annually to pay for the basic necessities only, while 52% of Americans now can barely make ends meet.

“Before the economy will become dangerously unstable, people will have to start making preparations for their investments, savings and personal finance” warns Fitz-Gerald.
Europe collapsed even faster

According to opinion polls, 61% of Americans feel that there is indeed a catastrophe in the make. Only 15% say to be prepared for this. Considering that the collapse in Greece, Spain, Italy, Portugal, France and most other European countries runs even faster than in the United States, it is high time that we face the reality that our “way of life” over the next years will drastically and permanently change, and … certainly not for the better.

Note by ecoNVERGE:

One can wonder who is blaming who! Apparently the ones responsible for the current chaos are the ones that lift up their arms to say ‘it wasn’t me!’ A lot of blame is put on the governments, but we believe the same can be said about the ‘leaders’ of the giant multinationals who are continuing to strike money without conscious and have and continue to throw people on the street with the ten thousands. Where is the value for humanity! Have we really gone insane! – Albert Einstein was right and he didn’t know how human society would degrade itself to ZERO!

Thanks for sharing your comments, thoughts, arguments and anything which can help us to avoid and/or recover from – regenerate life after – the unavoidable collapse of our economic and social society as we have known it.
You may deny the facts but make it justified! More essentially, how can we contribute to a better and more humane society, as individuals, families, communities and wider national, regional or global groups and movements.

You can follow the discussion at:

@ ECONOLOGICS – Incisive Knowledge Converged (FB Group)
Interactive CoP/Think-Tank around humane economics (germane progressive economics), human values and ecologically explored resources, maintaining balance between earth, people and progress – Sustainable Balance in Our Social & Economic Circle of Life!
Inspire one – 1x = X1 – motivate many! WE are Unlimited!
www.facebook.com/groups/econologics/
Direct link to post: www.facebook.com/groups/econologics/permalink/485406588165853/

@ ecoNVERGE – Econological SUSTAINABLE ValueChain SOLUTIONS (LI Group)
Interactive CoP/Think-Tank around Public & Corporate Sustainability, Incisive Knowledge Converged© – Ecologically Inspired, Sustainable Disseminated
Sustainable Balance in Our Social & Economic Circle of Life! WE are Unlimited!
ENGAGE DYNAMIC CAPACITY – “Inspire Innovation! Embrace Change!”
http://t.co/ieIiVusH
Direct link to post: http://lnkd.in/FxPtXX

Thanks for sharing your part of the CHANGE! WE are Unlimited!