Key Takeaways
1. Deep Change Demands Challenging Normal Assumptions.
Few people want to hear that last sentence. It suggests that we need to do a kind of work that no one wants to do: the work of deep change.
Normal assumptions hinder progress. Many change efforts fail because leaders operate with a "checklist mentality," assuming change is a mechanical process controlled by experts. This approach, common in Western companies, often ignores the crucial role of culture and human learning. For instance, thousands of companies tried to implement Toyota's lean manufacturing with only 2% success, because they copied processes without changing underlying cultural assumptions.
Deep change requires adaptive learning. Unlike incremental change, which is based on past experiences and aims to restore equilibrium, deep change demands developing new expectations and assumptions. It's about "building the bridge as you walk on it," learning in real-time through experimentation and feedback. This process involves:
- Surrendering traditional control and joining others in relationships of trust.
- Being at the "edge of uncertainty," where true learning and growth occur.
- Co-creating outcomes rather than dictating them.
Adaptive confidence is key. Leaders of deep change, like Monty Roberts who "gentled" horses by understanding their natural communication, develop adaptive confidence. This is the belief that one can move into uncertain situations and learn what's needed. They challenge the "logic of task pursuit"—the tendency to stay busy with old routines, even when they're no longer effective, like the hermit who kept cutting wood with a dull saw instead of sharpening it.
2. Denial and Self-Interest Lead to Organizational Slow Death.
Denial is a normal reaction. We often resort to denial when we are presented with painful information about ourselves, especially when the information suggests that we need to make a deep change.
Slow death is a pervasive problem. Organizations, like individuals, often fall into a pattern of "slow death" by practicing denial when faced with the need for deep change. This leads to working on the wrong things, ignoring ineffective strategies, and ultimately, hopelessness. Symptoms include:
- Disengagement and quiet desperation among employees.
- Leaders blaming external factors rather than internal systemic issues.
- Putting personal good ahead of organizational good.
Characteristics of slow death. This process is marked by several destructive patterns.
- Goal inversion: Serving internal needs rather than customers.
- Conflict: Ignoring or covering up intergroup conflicts.
- Abdication: Blaming others instead of taking responsibility.
- Posturing: Calling for new outcomes without new behaviors.
- Excuses: Using "no time" to avoid adaptive work.
- Chaos: Last-ditch, uncoordinated efforts when the tipping point is reached.
Leadership as an antidote. Organizations are living systems that tend towards entropy unless "work is done to the contrary." This work is leadership, which involves transcending old assumptions and inspiring a shared vision. The NUMMI plant, a former GM facility plagued by conflict and low productivity, was transformed by Toyota managers who focused on continuous improvement and respect for people, proving that potential can be actualized even in seemingly hopeless situations.
3. Deep Change Begins with Personal Transformation.
The argument at the heart of my work is that self-change is crucial to leadership. For the organization to become a more adaptive system that is learning, the leader must become a more adaptive system who is learning.
The incongruity of external change. Many leaders expect others to change without committing to deep self-change, leading to failed initiatives. They believe change must be imposed, rather than recognizing that personal transformation is the catalyst for collective excellence. This "normal assumption" blocks true understanding of deep change.
Reinventing oneself. Andrea Jung, CEO of Avon, exemplifies this by advising leaders to "fire yourself on a Friday night and come in on Monday morning as if a search firm put you there to be a turnaround leader." This proactive stance forces new assumptions, allowing leaders to see possibilities others miss and avoid the personal process of slow death. It's about continually challenging one's own assumptions.
Levels of change. Otto Scharmer's framework highlights the depth required for true transformation:
- Re-acting: Solving immediate problems.
- Re-structuring: Creating new structures.
- Re-designing: Incorporating new perspectives into core activities.
- Re-framing: Engaging in dialogue to alter deep assumptions.
- Re-generating: Re-examining purpose and drawing strength from core commitment. This deepest level involves shedding preconceptions and co-creating the future in real-time.
4. Embrace "Ego-Death" to Discover Your True, Adaptive Self.
For me, the ego-death and subsequent “rebirth” was a wonderfully and powerfully transformative event. I experienced a sort of “awakening” in which I realized in a flash of insight that “I” was not my ego or the external trappings of my life.
Crisis as a catalyst for self-discovery. Moments of profound failure or crisis, described as "ego-death," can strip away external identities and force a reevaluation of core values. An entrepreneur who went bankrupt realized his self-worth wasn't tied to wealth or social standing, leading to a transformative "rebirth" where he discovered his true, essential self. This process cultivates adaptive confidence.
Turning points redefine identity. Research shows that significant emotional events, whether positive or negative, serve as turning points that lead to a new view of self, a change in identity, or new meaning in life. These are often:
- Memorable, out-of-the-ordinary events.
- Challenging, with stress increasing their likelihood.
- Opportunities for growth, even from setbacks, leading to higher self-esteem or stronger relationships.
Processing trauma for growth. Disclosing traumatic events, through writing or verbal sharing, helps integrate the experience into one's meaning system, restoring a sense of control and predictability. This process allows individuals to redefine the event's meaning, shift from negative focus to exploration, and regain connection to social networks, which are crucial for growth and experimentation.
5. Shift from a "Normal State" to the "Fundamental State of Leadership."
To be in the normal state is to be comfort-centered, externally directed, self-focused, and internally closed.
The normal state limits influence. Most people operate in a "normal state," characterized by:
- Comfort-centered: Sticking to known routines, avoiding the discomfort of change.
- Externally directed: Defining self by others' perceptions and external rewards.
- Self-focused: Prioritizing personal interests, leading to isolation and anger.
- Internally closed: Shutting out signals for change, becoming insecure and rigid.
This state leads to a vicious cycle of diminishing vitality and slow death.
The Fundamental State of Leadership (FSL) empowers. By contrast, the FSL is a dynamic condition of heightened influence, achieved by choosing to be:
- Purpose-centered: Clarifying desired results, pursuing meaningful tasks with commitment and energy.
- Internally directed: Confronting hypocrisy, aligning values with behavior, increasing integrity and confidence.
- Other-focused: Prioritizing the common good, fostering trust and caring relationships.
- Externally open: Embracing feedback, adapting, and reaching higher levels of awareness and competence.
FSL transforms individuals and organizations. Robert Yamamoto's journey from a manager facing termination to a true leader illustrates this shift. By confronting his own insecurity and selfishness, he moved into the FSL, which not only transformed him but also inspired his staff and board to engage in positive organizing. This change in self alters how others perceive and respond, creating a ripple effect that overcomes slow death and generates new collective capacities.
6. Moral Power Drives Revolutionary Change and Collective Virtue.
Action from principle, the perception and the performance of right, changes things and relations; it is essentially revolutionary, and does not consist wholly with anything that was.
Adaptive order through moral work. Organizations avoid slow death and achieve adaptive order when people pursue a vision that serves external needs and inspires internal sacrifice for the common good. This requires transcending self-interested conflicts through moral work, enacting ethical principles rather than political maneuvering. Leaders foster this by becoming adaptive people in the Fundamental State of Leadership.
The revolutionary act of integrity. Gail's story of leaving an abusive marriage demonstrates moral power. In a moment of profound awareness, she shifted from victim to agent, choosing to be internally directed and take responsibility for her well-being. This internal change immediately altered her husband's behavior, proving that "action from principle" is revolutionary. It destroys existing social arrangements and forces others to adapt to new expectations.
Authenticity as a catalyst. When individuals enter the FSL, they broadcast new, implicit messages of purposiveness, fearlessness, empathy, and humility. This authenticity fosters trust and invites others towards greater virtue. Gail's subsequent sharing of her story, initially seen as a weakness, transformed into a testament of courage, further enhancing her ability to help clients and enrich her personal relationships. This reciprocal relationship, where "they became what they beheld," highlights how changing one's internal vision can transform external reality.
7. Cultivate Positive Emotions to Fuel Openness and Growth.
Her research efforts demonstrate that positive emotions are necessary to openness and learning.
Self-interest corrupts collectives. The Greek economic crisis illustrates how pervasive self-interest, where individuals and politicians prioritize personal gain over the common good, can lead to collective slow death. Real leadership, however, inspires people to transcend self-interest and sacrifice for the collective. This requires an "organizing image" that captures collective imagination, like Nelson Mandela's "Congress of the People" in South Africa, which fostered purpose, integrity, connection, and learning.
The power of positivity. Psychologist Barbara Fredrickson's research shows that positive emotions (joy, gratitude, hope, awe, love) broaden our thoughts, increase flexibility, and improve our ability to cope with adversity. They facilitate planning, goal-setting, and the integration of new views into the self, making deep personal and organizational change possible.
- Positivity ratio: A ratio of at least three positive feelings for every negative one is a tipping point for upward spirals of openness and creativity. Below this, individuals and organizations spiral downward into rigidity and slow death.
Gratitude as a transformative practice. Consciously cultivating gratitude, through practices like a gratitude journal, can rewire the brain and significantly increase one's positivity ratio. Kathy, a "staff person," transformed her department by initiating "Thankful Thursdays," fostering a positive emotional climate. Schon, who maintained a gratitude journal for 18 months, achieved a continuous state of gratitude, transforming her critical mindset into one that celebrated gifts and strengths, leading to increased happiness and improved relationships.
8. Transformational Leaders Invite Others into Deep Change by Being It.
There is no way to “teach” what it means to be a leader except by being what we wish to invoke in others.
Leadership is episodic and challenging. The Fundamental State of Leadership (FSL) is not a permanent condition; it's episodic. Each entry into the FSL is a new challenge, requiring courage to confront fears and put collective interest ahead of personal survival. However, each experience builds learning and confidence, making future entries more accessible. Tom Glocer, CEO of Reuters, exemplified this by repeatedly "walking naked into the land of uncertainty" during corporate crises, driven by a deep love for his company and a fearless commitment to its transformation.
Great teaching is great leadership. Transformational teachers, unlike those who merely propound theories, create "crucibles of character development." They attract people into the FSL by embodying it themselves—being purpose-centered, internally directed, other-focused, and externally open.
- Creating sacred space: Professor Larry Peters transforms classrooms by inviting students to share personal deep change stories, fostering authentic conversations where trust grows, consciousness expands, and faith in potential increases.
- Personal experience as a guide: Doug Anderson, a former Harvard professor, found his teaching transformed after a painful divorce forced him to confront his own integrity gaps. This personal journey made him a more empathetic and effective guide for others on their paths of discovery and transformation.
Becoming a living attractor. We are all capable of both ordinary and magnificent acts. By choosing deep change and entering the FSL, we experience exponential growth and become "living attractors," inspiring those around us to join in creating sacred space and engaging in a social movement. This collective transformation allows us to continually adapt to emerging realities and "build the bridge as we walk on it."
Last updated:
