Theory U: Leading From the Future as It Emerges

This is what "Theory U" advocates: a revolutionary new approach to learning and leading, to address the problems faced by our organizations and by society as a whole – an approach that goes deeper than some of us will be used to. This book argues that we need to break free from our past patterns, identify and work through our blind spots, tap into our highest potential, and open up to new possibilities. And it shows us how to do so.

It uses phrases you don't often see in business books, such as inner wisdom, higher self, and source of knowledge, to describe how we can fire up our imagination, dig deep for inspiration, and notice opportunities we couldn't see before. So if you want to get something from this book, you'll need to be open to its unusual, transcendental approach. It'll help if you're comfortable with mindfulness or other forms of meditation.

The book's unique, problem-solving approach can be applied across a range of situations, from the boardroom to the classroom, on the sports field or in the home, so it has a big potential audience. Bear in mind that "Theory U" is very long – more than 500 pages including the preface and forward – and some of Scharmer's ideas can be difficult to grasp. So you'll need time to stop, think, digest, and perhaps re-read as you go along.

Otto Scharmer is a senior lecturer at the Massachusetts Institute of Technology, a Thousand Talents Program Professor at China's Tsinghua University, and co-founder of the Presencing Institute, a community founded on the principles of this book.

He's the co-founder of the MITx U.Lab, a Massive Open Online Course, or MOOC, that blends online and offline learning and is again based on the ideas in "Theory U." U.Lab began in 2015 and had 75,000 registered participants from 185 countries in its first year. Scharmer is also the chair of the MIT IDEAS program for cross-innovation in China and Indonesia.

So keep listening to hear how to let go of old ways of thinking and connect to your intuition, how to move into practical action by clarifying your goals and prototyping, and to hear what resistance you'll likely face as you go on this journey.

This second edition of "Theory U" comes 10 years after the first. It's been revised and updated to reflect what Scharmer calls the beginnings of a "global awakening." Over the past decade, spirituality and meditative practices such as mindfulness have become more commonplace, as we've learned more about the benefits of sustained attention and awareness.

We've also seen an increase in disruption – new practices, business models, or global events that change the way we do things or how we view the world. Think Uber taxis, climate chaos, or Donald Trump's election as president of the United States, which defied opinion polls. At the same time, there's been a growth in what Scharmer calls "absencing" – a process of disconnecting from others and from society, becoming desensitized, and closing our minds.

This updated edition of "Theory U" is set against the backdrop of these and other societal shifts. It refers to businesses and individuals who've adopted the Theory U model, including Shell, Hewlett Packard, and Daimler, and includes new diagrams, exercises and examples.

"Theory U" describes a process of awakening. It's about creating the right environment so we can let go of rigid thinking, connect to our intuition, and allow a new future to emerge, rather than be attached to fixed outcomes or resistant to change.

The process has its roots in one of Scharmer's pivotal childhood experiences. As a teenager, he watched his family home burn down as he returned from school. In this moment, he had to let go of the past and surrender all his ideas about how the future would unfold. For Scharmer, good leadership and sound decision making happen when we're able to adopt this attitude of acceptance and be open to new possibilities. It's all about having the right inner condition.

Let's take a closer look at how Scharmer's U theory can help us achieve this mindset.

Picture a capital letter U and trace its outline in your mind or on a piece of paper, starting at the top left-hand side, moving down, across the bottom of the curve, then back up the right-hand side. This U shape is the framework for a seven-stage journey of growing awareness and deeper connection to our intuition, which may enable us to tap into our highest potential, be better leaders and decision makers, and find creative solutions to the problems of our age.

The first stage, at the top left of the U, is "downloading." This is where we simply react in the same way we've always reacted – a familiar stimulus triggers a familiar response. Nothing changes.

As we travel down the U, we move into "seeing," looking at something with fresh eyes. Here, we suspend judgment and begin to wonder. The next stage is "sensing," where our perception broadens, our heart opens, and we immerse ourselves fully in the problem or experience.

We've now arrived at the bottom of the U and at the vital stage of "presencing," which combines "sensing" and "presence." This is where we connect with our intuition, and where we start to see and open up to future possibilities. We are completely present, ready for whatever comes next, and able to receive new insights about the future.

To get here, we need to surrender to the unknown and listen deeply. What are we listening to? That depends on our belief system, our culture, or our religion. But irrespective of what we believe in, this is where we feel inspired and get truly creative.

Scharmer offers some useful tips for getting into a presencing state. He suggests we find a practice that helps, and then cultivate it. This could be morning meditation, contemplation or stillness, or any activity that helps us connect to that deeper space inside us. For some, it may involve being in nature or exercising. He also suggests finding a community of like-minded people who are on the same journey and can support one another.

This act of slowing down and connecting with ourselves to ignite our creativity isn't new, even if the term "presencing" is. Mindfulness, for example, is growing in popularity, and much has been written about accessing a state of creative "flow." But we like how Scharmer describes the journey from a fixed to an open mindset, and the U shape brings the process to life. We can imagine ourselves sliding down the left side of the U as we let go of old ideas and become aware, connected and ready to move forward.

Let's now look at how we take this new state of awareness and creativity and apply it in practical ways to our businesses or our lives.

Returning to the U, the right side is about taking action. We act first by "crystallizing." This is where we clarify our vision and intention, thinking through the options carefully so that we take the right action, rather than heading off in the wrong direction.

The next step is "prototyping." Here, we explore future possibilities by testing them out. Many readers will be familiar with the idea of failing, getting feedback, modifying, and trying again. But Scharmer's prototyping phase builds on the journey that's gone before, linking head, heart and hand.

Prototypes don't need to work, he says, but they're a vital stage in the production process. For example, at network equipment company Cisco Systems, project engineers are asked to present their first prototype within four months, regardless of how long-term their project is.

Finally, we arrive at "performing." This is where we learn from our prototypes, or our localized case studies, and create or transform something on a much bigger scale. The result? We're able to have a greater impact than before, because we're operating from a different mindset.

Of course, our impact will be even greater if we work together, and Scharmer offers tools to apply his theories to companies, organizations, groups, and communities. And he includes case studies that show the risks of old ways of thinking versus what can be achieved with this new approach.

For example, he tells the story of Digital Equipment Corporation, or DEC, which became the world's second-largest computer manufacturer in the 1980s, but went into decline and was eventually acquired by a competitor because of its leaders' shortsightedness. They were unable to see and respond to a changing technological landscape or evolve the culture of the business. In short, they got stuck in the "downloading" phase of Scharmer's U, hanging on to old structures and ways of working.

Nokia, on the other hand, was able to sense emerging opportunities in the early 1990s and focus on its telecommunications business, letting go of other business units that no longer fitted with its core mission. One of its leaders from that period told Scharmer his real job was to "facilitate the opening process," which contrasts with DEC's closed outlook. Unfortunately for Nokia, it failed to respond in the same forward-thinking way two decades later, when the smartphone arrived.

These case studies help put Scharmer's theories into a business context, making them easier for the average reader to understand.

Some of Scharmer's language and principles could easily fall into the New Age category and some readers may be resistant to going on a spiritual journey or doing the inner work the author speaks of. Scharmer knows this, and he identifies some common obstacles. Let's look at these now.

The author highlights three voices of resistance we may come across as we embark on the U journey, and these can be internal or external. The Voice of Judgment will try to dissuade us from taking this new path, he says. The Voice of Cynicism will try to prevent us from becoming vulnerable – an essential step on the road to "presencing." Finally, the Voice of Fear hates the idea of letting go of what we have, or what we know, to make space for the new and the uncertain, so it will try to get in our way. We may be afraid of being ridiculed, of losing money, status or even our jobs.

It's helpful to have this advance warning of the resistance we're likely to feel or encounter. Leaders in prominent positions may be especially susceptible to how a new, more spiritual approach will be received by the rest of the team. We can expect the voices of resistance to shout louder as we begin to do things differently. So if we're ready for them, we can step up the actions that help us connect to our intuition – like meditation, stillness or being among supportive people.

We also like the way Scharmer talks about our blind spots. We're standing on them, so we can only see what's under our feet if we start moving, he says.

"Theory U" is an ambitious book and there's much more to it than we have time to discuss here. Scharmer wants to help transform society and solve some of our biggest problems, and he covers a huge amount of ground, mixing case studies of companies and charities with the words of philosophers.

The author himself jokes that "Theory U" is an "almost unbearably thick book," and, unfortunately, its length and complexity weakens its argument. We believe Scharmer's message would have more impact if his writing were more focused. Ideas are repeated and some of the language he uses is dense and will require a mental leap for some readers.

That said, Scharmer writes with conviction and is entirely committed to his cause and his theories, which are now being developed further through the Presencing Institute and MIT's successful U.Lab. The stories of organizations and networks that have adopted his ideas with successful outcomes also add weight to his arguments.

So if you're willing to read this book with an open mind and do some inner work, we think "Theory U" may change your outlook and have a positive impact on how you do business, make decisions, and solve problems.

"Theory U," by Otto Scharmer, is published by Berrett-Koehler Publishers, Inc.

That's the end of this episode of Book Insights. Thanks for listening.