So-called 3rd order changes go beyond a concrete change occasion. They aim at a change in the way we deal with change, because:
“You can never solve problems with the same mindset that created them,” Einstein already said.
In the context of a 3rd order change, change occasions are used to critically reflect on the previous solution patterns from a meta-position and, if necessary, to establish new solution patterns. The organization is fundamentally realigned, while profound changes take place in parallel at several levels of the organization.
Genotypic Transformation
Organizational transformation involves deep intervention in the architecture of the organization, which is why it is also referred to as genotypical transformation. Not only do the internal structures and processes undergo a radical transformation, but the resource endowment and the tasks and functions of many employees are also critically examined and, if necessary, restructured.
In order to enable such a radical change, which deeply affects the historically grown identity and the underlying structures and processes of the organization, a real pressure that threatens the existence of the organization on all levels is absolutely necessary. Only in this way can a corresponding transformation be justified, as it demands a great deal of strength from the organization and its workforce – especially if it happens while the “engine is running”. A shared view throughout the company that continuing on the current path and sticking to the existing alignment, as well as the existing structures and processes, will sooner or later lead the company into a situation that threatens its very existence is essential if the company is to take on this feat of strength together. So is an attractive image of the future that is worth fighting for.
The goal of a genotypical transformation is, in addition to positioning the organization for the future, to evaluate the organization’s handling of changes and challenges on the basis of observations and experiences in such a way that the organization learns from them in the long term and is well positioned for future change requirements.
For organizational change to succeed, a change in leadership is a prerequisite – change starts with the self-image of the responsible decision-makers: The change project can only be successful if they see themselves as a success-critical part of the process and act accordingly.
Foresighted Self-renewal
Foresighted self-renewal enables an organization to pick up even weak signals and random impulses from its relevant environments and to use them specifically for the further development of its own performance potential. It thus aims to systematically increase its own learning capacity as an organization. The ability to skillfully balance learning and non-learning usually makes it possible to avoid emergency operations and the need to deal with self-induced crises.
Foresighted self-renewal means recognizing the need for change in good time and initiating the appropriate measures so that sufficient time is available for their successful implementation. The forward-looking moment and future orientation thus provide the organization with a time budget that makes the need for radical transformation less likely.
In addition to appropriate structures, communication and decision-making routines as well as increasing the sources of irritation for impulses, a leadership system capable of making decisions also plays a key role here. The leadership system is responsible for picking up on the impulses for change from the environment and the workforce, examining them, and not only initiating the necessary renewals but significantly driving them forward.
The increasing development of the capacity for foresighted self-renewal is also accompanied by a cultural change that motivates employees to contribute their own ideas and observations. Contradictions to the usual are seen as welcome learning impulses and evaluated accordingly.
Strengthening the organization’s capacity for change ensures that crucial resilience which enables organizations to perform successfully even under very unfavorable environmental conditions.