Just like a butterfly, each organization started at birth, at small things.
ompelling Needs and Opportunities
The source of transformation in an organization or system is the set of compelling needs and opportunities, which confront it in its market environment. While change in the environment is continuous, and the ideal organization continually adapts, in reality, transformation, and as we address it here, is launched out of a sense of urgency. Effective transformation enhances the organization's capability for future adaptations to its changing environment.
Existing Mental Model(s)
In an organization the mental model(s) may represent the business model as to how the business differentiates itself, seeks to achieve competitive advantage and grows sustainably. Mental models guide our perceptions and also may represent ideas concerning effective culture, business processes and organization design.
Our existing mental models are frequently disconfirmed by emerging compelling needs and opportunities. This disconfirmation triggers the need for transformation.
Turning Point
The disconfirmation of existing mental models by the emerging compelling needs and opportunities creates a turning point. The system is poised either for a planned process of dialogue and ensuing virtuous circles of performance or for an unplanned process of resistance and denial and the vicious cycle of dysfunctional behavior.
Resistance and Denial
Not infrequently the challenge posed by the disconfirmation of existing mental models is met by resistance to enter into dialogue. This is coupled with denial and the associated frictions between perceived proponents and resistors of change. This dynamic creates a vicious cycle in the system of poor communications and dysfunctional relationships. Cultural pre-conditions can pre-dispose the organization to this pattern. Some individuals and cultures are more inflexible and sealed than others and these usually tend toward authoritarian values and behaviors. Other individuals and cultures are so geared toward and invested in certain goals (the proverbial "idée fixe") that when those goals are compromised, the threats are inadvertently ignored.
Crisis
As the need for transformation builds in the face of resistance and denial, the turning point evolves into a crisis. The choice, conscious or unconscious, becomes more urgent either finally to address the disconfirmation of existing mental models through a planned dialogue process and seek a new vision or to continue to resist and deny that the need exists.
Termination
In the crisis, when the need for transformation continues to build and resistance and denial persist, the inevitable outcome is the vicious cycle ends relationships-i.e., termination. Examples include firing, quitting, bankruptcy, divorce, etc.
Decide and commence a transformation process which is grounded in dialogue
Some leaders and systems are inherently open to seek and explore emerging compelling needs and opportunities and how they may disconfirm existing mental models. They have built in numerous feedback loops, formal and informal, personally and organizationally. These leaders and systems are the early adopters of transformation. They see the processes of disconfirmation earlier than their peers and competitors. Innovation leaders are prime examples. They invent new products, services, businesses or even industries. They see, before others do, the new needs and opportunities and how existing mental models are not suited to address them. They decide to engage the organization in a transformation process, which is grounded in dialogue.
