1.3 Individual Transformation and Organizational Transformation

The third step in creating conditions conducive to learning is to focus on individual transformation. While clear boundary conditions and an empowered environment are extremely important, individual transformation is the key to organizational transformation. This means cultivating the context for individual creativity, therefore allowing innovation to occur.

The more firmly we establish the first two steps, the more possibilities emerge in this third step. The more people know and value the structure, the more they expand to fill it. The more nurturing and empowering the culture is, the more people want to go beyond it. This going beyond, breaking the mold does not occur collectively at first. It begins with an individual transformation.

We already know that creativity has something to do with breaking the mold, stretching the limits, challenging the conventional wisdom; it's something we call 'thinking outside of the box'. This involves the stages of 'unlearning' and 'openness' described earlier. For most of us this is a courageous act. It involves the risk of 'bridging the gap' between uncertainty and untested creation. In order for us to more easily take risks as individuals we need the support from our environment.
This involves both the group's leader and the group itself. In order to get in touch with their inner genius, leaders sometimes require personalized coaching and to have their ways of thinking and nurturing stretched. This can be done through forcing them to expand their cognitive maps and by appreciating and acknowledging who they are to us. Leaders generally think of themselves in a rigid, limited, and mostly distorted way. It is not until we, the other group members, have bridged the gap between who the individual leaders think they are and who they are to us that they can reach their full potential. The more genuine and authentic we are in noticing them and identifying their unique contributions and characteristics, the better they will lead and teach us.

A key principle and practice for creating an environment conducive to bridging the gap between the individual and the group is that of acknowledgment and appreciation. In each Boeing 777 project review meeting, not only are current team members present, but guests, old team members, and customers are there as well. Mullaly greets each and every one of them by their first name, acknowledges their contribution to the project, and makes it obvious that he appreciates their visit. He asks them individually for their feedback on the meeting and the project. Many individual letters get read aloud by him as well as put on the overhead-projector and read by the whole team. It was fun for me to watch the faces of people who were personally acknowledged. It was as if they grew an inch instantly. Such instances of euphoria are the time for transformation. Once people see how they are perceived and appreciated by others, they begin to make changes to themselves accordingly. They attempt to bridge that gap between who they think they are and who others think they are. Their inner genius begins to emerge.

Authenticity is extraordinarily important in acknowledgment and appreciation. If the person thinks that we are faking such things, there could be a significant loss of trust and respect not only for us, but also for any other person attempting to acknowledge or appreciate. Faking is dangerous. Angeles Arrien, a cross cultural anthropologist, once said that each person is a leader, and effective leaders are the ones who know how to acknowledge others and what she says is:

People in the world over consistently acknowledge each other in four ways: We acknowledge each other’s skills; each other’s character qualities; each other’s appearance; and the impact we make on each other. Wherever we receive the least acknowledgment is where we may carry a belief of inadequacy or low self-esteem (Arrien, 1993*)

The power of acknowledgment is such that it can cause a change to occur in the other person. If that person is over acknowledged in one area or merely desperate for any acknowledgment at all in order to create a positive self-image, upon hearing such comments they can start believing them in a fundamental way. They can realign their self perception. Because of this, they start to develop in that area; it becomes self-fulfilling.

In today's lean and mean organizations, every employee needs to be an agent of change. This mastery of change, which brings forth brilliant customer service, new product development, and innovation comes through this personal transformation step more than it does through mere ground rules or a supportive environment. But the first two steps are the foundation upon which this third step is built. Without them, personal transformation is not sustainable.

1.4 Designing a New Game

The fourth step in preparing a learning environment is not just to play a game but to design a new game, a game that is much bigger than that with which we started. If we have done well with the first three steps, we should have a large number of leaders who are good in setting clear boundary conditions, and know how to establish a powerful learning environment. In addition, these leaders are themselves personally transformed and are constantly coaching others to transform themselves.

It is like building a community of leaders, truly liberating leadership. This is the place where generative learning and new innovations of a high order take place as people are constantly engaged with creating new knowledge. This is not about competing with an external customer or being perfect. It is about truly pushing the boundaries of human thinking and creativity. It is about co-creativity, teamwork and collective generative learning. It is also about contribution and integration of leadership, empowerment, and creativity in one and the same person and every person in the group. It is about synergy and generation of new knowledge.

This fourth step is about learning to learn and is what brings the focus back onto the first step. Once we experience paradigm shifts and breakthroughs that lie hidden in the fourth step, setting new ground rules is a natural consequence for the bigger and new game that we design!
In essence, the fourth step is about integration. It is about action--not just any kind of action, but action without attachment to results. It is not about getting something for you; it's about giving something to the larger community. That is the context in which '1' and '1' could combine to produce '11.' As you notice, '11' does not come from any addition, subtraction, division, or multiplication from either '1.' This is what happens within an organization that learns.

Communication and learning at all levels--(head (cognitive), heart (emotional), gut (physical)--arises under such circumstances. In such a place there is choice and freedom for individuals and organizations to create, lead, and empower each other while doing something larger than the sum of their individual capabilities and capacities. That is the meaning of an organization that learns.

Fig. 4. Organizations learn just like human beings––in cycles. They have to have a body which happens to be the organizational framework (skeleton) and the culture is the blood that flows through the body. Individual transformation ignites the creativity and innovation and generation of new knowledge gives birth to new organizations (organisms). Then the cycles begins all over again!

*Arrien, Angeles. 1993. The Four-Fold Way: Walking the Paths of the Warrior, Teacher, Healer and Visionary, San Francisco: HarperSanFrancisco.

Author’s Bio: Prasad Kaipa, Ph. D. is the CEO Coach and the CEO of SelfCorp, Inc, a web-assisted executive development company. Prasad has developed algorithms that allow executives to map the genetic code of the companies, so that they can re-wire their companies for competitive performance. He is well known for his original contributions in the areas of learning, knowledge creation, executive development and innovation.

He has developed executive and strategy development programs for Fortune 100 companies including Cisco, HP, Xerox, Sun Microsystems, BAE Systems, Quaker Oats, Boeing, Ford, Pacbell, and Bristol-Myers-Squibb for past 10 years. He worked in Apple International Marketing and was a research fellow in Apple University. He worked on designing a learning processor that augments human intelligence when he left Apple in 1990. Athena Interactive released three award winning CD-ROMs for leaders based on his learning interface concepts and his tetrad methodology.

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