Theory U
Introduction
In a world characterized by volatility, uncertainty, complexity and ambiguity (VUCA), managers face major challenges in times of profound change. Otto Scharmer's Theory U offers an innovative leadership and transformation approach to mastering these challenges with the help of a leadership method. In his books, Otto Scharmer describes in detail how Theory U can be applied to processes in various organizations in order to address the current state of management.
What does a U-shaped process have to do with sustainable change? The theory makes it possible to anticipate and actively shape future opportunities. In this article, we take a look at the core concepts of Theory U, the U-process with its five phases and the requirements of the seven key leadership competencies. We also discuss the importance of mindfulness and give an outlook on the future of leadership.
The basics of theory U
2.1 Development by Otto Scharmer at MIT
Otto Scharmer, professor at the Massachusetts Institute of Technology (MIT), developed Theory U based on his research into leadership, innovation and change processes (building on the theories of Peter Senge). The theory aims to open up a deeper level of learning and action - away from reflecting on past experiences and towards learning from the emerging future.
2.2 Core concepts and principles of the creative method
At its core, Theory U is based on the assumption that the future is already in the making and that these changes can be sensed and shaped by managers (Peter Senge). The U-shaped curve, the central element of the theory, consists of five phases: Co-Initiating, Co-Sensing, Presencing, Co-Creating and Co-Evolving. Each of these phases requires specific skills and methods in order to achieve the desired results.
2.3 The meaning of "open mind, open heart, open will"
A key prerequisite for the successful application of Otto Scharmer's creative method is the development of an attitude that is characterized by the principles of "Open Mind", "Open Heart" and "Open Will". These concepts require managers to consciously question their preconceived ideas (Open Mind), their emotions (Open Heart) and their personal will (Open Will) and to be open to new insights, changes and opportunities.
Why theory "U"?
The U-shaped process of Theory U refers to the three sides of the "U" - according to Scharmer, each part stands for one of the phases:
Descent on the left side of the U: This section is often referred to as "co-sensing". This is about letting go of habitual thought patterns of issues and assumptions, listening deeply and grasping reality as it is. It is a work of letting go and intense perception.
Low point of the U (presencing): At the lowest point of the U, "presencing" takes place, a combination of "presence" and "sensing". At this point, the aim is to sense the innermost core of the emerging possibilities in a state of stillness and reflection. This is where the connection to future potential is established.
Ascent on the right side of the U: This phase is referred to as "co-creating" and "co-evolving". After letting go deeply and finding new insights, it is now a matter of translating these into concrete, innovative actions and prototypes and gradually integrating the knowledge into practice.
The U-process can be divided into three levels: the individual level, the group level and the institutional level. At each level, the participants go through the five phases of the U-process, whereby the specific solutions and methods may differ.
Individual level: focus on the personal development and awareness of the manager. It is about questioning one's own mental models, practicing mindfulness and cultivating an authentic presence.
Group level: the focus is on collective intelligence. Teams learn to reflect, envision and shape together. Dialogue, active listening and appreciative exploration are central here.
Institutional level: Transformation of organizations and systems. The aim is to create overarching structures and change processes as solutions that establish an eco-system for innovation and change.
According to Otto Scharmer (Presencing Institute), Theory U is a form of action research in which insight and change go hand in hand. By repeatedly going through the U-shaped curve, the participants continuously deepen their understanding and their ability to develop solutions.
Theory and practice cross-fertilize each other, resulting in a lively learning and development process. By applying Theory U as a structure, teams can learn to develop creative solutions that are based on a deep openness to new perspectives and lead from the future (presencing as a social technique).
The U-process in detail
Theory U - the phases of the U-shaped process
3.1 Co-initiating: Finding a common intention
In the first phase, all relevant people or teams come together to formulate a common intention. Managers provide orientation and at the same time leave room for stakeholder input. The decisive factor is the attitude and therefore a conscious pause and openness to new perspectives.
3.2 Co-sensing: perceiving together
An action team embarks on an exploration, leaves the familiar and immerses itself in new contexts. Stakeholder interviews and attentive listening provide valuable insights and a new perspective on the projects.
3.3 Presencing: going inwards
The focus is directed inwards in order to reflect on experiences, let go of the old and open up to the new. Meditative techniques and mindfulness exercises support this process of pausing and self-exploration.
3.4 Co-creating: testing together
In the fourth phase, the insights gained are translated into practice using experimental prototypes. Ideas are tested iteratively and further developed through feedback. Stakeholders discover future possibilities together in this state.
3.5 Co-evolving: developing together
In the last of the five phases, the experiences are evaluated and prototypes with the greatest potential are identified. Promising ideas are further developed and professionalized in an innovative ecosystem.
The list of seven leadership competencies
In order to successfully shape the U-process and offer solutions, managers need basic knowledge of these specific competencies:
Listening on different levels
Openness and inquisitive perception
Allow empathy and intuition
Being present and exploring yourself
Communicating visions clearly
Showing the courage to experiment
Networking and motivating stakeholders
Leadership skills of Theory U
The future of leadership with theory U
5.1 Mindfulness as a key competence
Mindfulness helps individuals to be present, to feel more deeply and to break through ingrained patterns in the organization - essential for the application of Otto Scharmer's Theory U.
5.2 Potential for further development
Theory U is continuously refined through research and practical experience in companies. The focus of change is on promoting collective creativity and a shared awareness.
In practical application, Theory U has proven to be extremely effective, especially in complex change processes where traditional approaches often fail. Lena Marbacher, a well-known consultant in the field of change management, emphasizes the effectiveness of Theory U in practice and recommends it in particular for companies seeking far-reaching changes.
Through the phases of co-sensing and presencing, a deeper understanding of the underlying challenges is developed, while co-creating enables innovative solutions to be tested and turned into reality. Companies and organizations that apply Theory U often report an increased ability to harness collective intelligence, overcome resistance and create sustainable innovation. This makes Theory U a valuable tool for leaders operating in dynamic and uncertain environments
5.3 Conclusion
Theory U is particularly valuable for organizations that find themselves in a state of great uncertainty and are looking for new ways to assume their responsibilities in society. Theory U offers a holistic and forward-looking approach and potential for leadership tools in a complex world. It meets the questions in organizations and companies that deal with change with a creative technique. Change management thus unfolds its effectiveness. It combines inner development with social change and creates a framework for profound change processes on an individual, collective and institutional level. Managers who adopt the principles and skills of Theory U can become pioneers for a mindful, dialogical and creative leadership culture. The responsibility they have in companies is at the heart of the sustainability of change processes. They not only shape the present, but also pave the way for a future worth living - for their organizations and for society as a whole.
