Collaborating for Systemic Change

By Peter M. Senge, Benyamin B. Lichtenstein, Katrin Kaeufer, Hilary Bradbury and John S. Carroll

January 1, 2007

Meeting the sustainability challenge will require the kind of cross-sector collaboration for which there is still no real precedent. It must be co-created by various stakeholders by interweaving work in three realms: the conceptual, the relational and the action-driven.

For more than a century and a half, industrial growth has been weaving an ever-thickening web of interdependence around the world. Today, consumer choices on one side of the planet affect living conditions for people on the other side. Complex supply chains span the globe; for example, the average pound of food travels between 1,500 and 2,500 miles before it reaches an American consumer.1 But these developments do not alter biological or social realities that have taken shape over thousands and millions of years. Consequently, businesses operating within this growing web are facing a host of “sustainability” problems: social and ecological imbalances created by this globalization, such as a widening social divide between haves and have-nots, global climate change, exponentially growing chemical and material waste and loss of habitat and species.

Traditionally, businesses have thought such problems to be the result of economic externalities that require governments’ attention. But while governments are a crucial part of lasting change, relying on governmental leadership to effectively deal with sustainability is questionable for many reasons. The first limitation is geography. Even the largest governmental institutions are limited by their borders and can’t attack sustainability problems that are global in nature. The second limitation is time. Elected officials are limited by their election cycles and struggle to deal with problems that develop over decades.

Today, as consumer choices on one side of the planet affect living conditions for people on the other side and complex supply chains span the globe, businesses are facing a host of "sustainability" problems--social and ecological imbalances created by that globalization. Beginning in the late 1990s, organizational members of the Society for Organizational Learning (SOL--including Shell, Harley-Davidson, HP, Xerox, and Nike, among others) began a series of initiatives focusing on collaborative solutions to a variety of sustainability issues. The group's goals have included the application of systems thinking, working with mental models, and fostering personal and shared vision to face these complex sustainability issues. Through its work, SOL (of which two of the authors are founding members) has learned that successful collaborative efforts embrace three interconnected types of work--conceptual, relational, and action-driven--which together build a healthy "learning ecology" for systemic change. In this article, the authors offer examples from particular projects in which learning ecology provided an important foundation for substantive progress, and they draw lessons for companies and managers regarding each of the three types of work. Ultimately, the authors conclude that conceptual, relational, and action-driven work must be systemically interwoven and that there is little real precedent for that. They offer several guidelines for how it can be accomplished, emphasizing leadership and transactional networks. Finally, they pose three questions that must be answered if systemic solutions are to be successful: (1) How can we get beyond benchmarking to building learning communities? (2) What is the right balance between specifying goals and creating space for reflection and innovation? and (3) What is the right balance between private interest and public knowledge?

Today, as consumer choices on one side of the planet affect living conditions for people on the other side and complex supply chains span the globe, businesses are facing a host of “sustainability” problems — social and ecological imbalances created by this globalization.

Beginning in the late 1990s, organizational members of the Society for Organizational Learning (including Shell, Harley-Davidson, HP, Xerox and Nike, among others) began a variety of initiatives focusing on collaborative solutions to a variety of sustainability issues. The group’s goals have included the application of systems thinking, working with mental models, and fostering personal and shared vision to face these complex sustainability issues.

Through its work, SoL (of which two of the authors are founding members) has learned that successful collaborative efforts embrace three interconnected types of work — conceptual, relational and action-driven — which together build a healthy “learning ecology” for systemic change. In this article, the authors offer examples from particular projects in which this learning ecology provided an important foundation for substantive progress, and they draw lessons for companies and managers regarding each of the three types of work.

Ultimately, the authors conclude that conceptual, relational and action-driven work must be systemically interwoven and that there is little real precedent for that. They offer several guidelines for how it can be accomplished, emphasizing leadership and transactional networks. Finally, they pose three questions that must be answered if systemic solutions are to be successful: (1) How can we get beyond benchmarking to building learning communities? (2) What is the right balance between specifying goals and creating space for reflection and innovation? (3) What is the right balance between private interest and public knowledge?

Peter M. Senge is the founding chairperson of the Society for Organizational Learning and a senior lecturer at the MIT Sloan School of Management. Benyamin B. Lichtenstein is assistant professor of management and entrepreneurship at the College of Management, University of Massachusetts, Boston. Katrin Kaeufer is research director of the Presencing Institute and founding research member of SoL. Hilary Bradbury is the director of Sustainable Business Programs at the Marshall School of Business, University of Southern California. John S. Carroll is a professor of behavioral and policy sciences, MIT Sloan School of Management.