THE WORLD CAFÉ: LIVING KNOWLEDGE THROUGH CONVERSATIONS THAT MATTERB Y J U A N I T A B R O W N , W I T H D A V I D I S A A C S A N D T H E

W O R L D C A F É C O M M U N I T Y

SYSTEMS T H I N K E RB U I L D I N G S H A R E D U N D E R S T A N D I N G

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“We learn, adapt, and bring forth our worldsthrough the networks of conversation inwhich we participate.”

—Humberto Maturana

onsider all the learning thatoccurs as people move from

place to place inside and outside anorganization, carrying insights andideas from one conversation toanother.The invisible connectionsamong these conversations and theactions that emerge from them help tobuild the organization’s collective

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TOOLBOX 6

Fine-Tuning Your Causal Loop Diagrams—Part I

FROM THE RESOURCE 8SHELF Building Relationships with Respectat the Center

VIEWPOINT/FEEDBACK 9

The Imperfect Storm

SYSTEMS THINKING 11WORKOUTReader’s Response to “Moving Beyond the E-Vent Level”

FROM THE FIELD 12

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C O N V E R S A T I O N A S T O L A R G E - S C A L E C

Reaching out in ever-widening circles, members of smtheir insights to larger constituencies, carrying the seconversations, creative possibilities, and collective ac

CopyriAll rights reserved. For permission to d

knowledge and shape its future. Butthe process of co-creating the futurethrough conversation is so natural weusually overlook it.

Since our early ancestors gatheredin circles around the warmth of a fire,conversation has been a primaryprocess for making sense of our world,discovering what we value, sharingknowledge, and imagining our future.Small groups exploring importantquestions—and connecting with othergroups that are doing the same—have

always played amajor role in socialand institutionalrenewal. Considerthe sewing circlesand “committees ofcorrespondence”that helped birththe AmericanRepublic; the con-versations in cafésand salons thatspawned theFrench Revolution;and the Scandina-vian “study circles”that stimulated aneconomic andsocial renaissance inNorthern Europe.Reaching out inever-widening circles, members ofsmall groups spreadtheir insights tolarger constituen-

A P A T HH A N G E

all groups spreaded ideas for new

tion.

Source: Susan Kelly

ght © 2001 Pegasus Communications, Inc. (www.pegasuscom.coistribute copies of this newsletter in any form, please contact u

cies, carrying the seed ideas for newconversations, creative possibilities, andcollective action (see “Conversation asa Path to Large-Scale Change”).

Today, especially with the adventof the Internet, we are becomingincreasingly aware of the power andpotential of these dynamic networksof conversation and their systemicimportance for large-scale collabora-tion, learning, and change.The cross-pollination of ideas from group togroup can lead to the emergence ofsurprising creativity and focus as wediscover innovative ways to support a“system thinking together.”

What if we could create an inten-tional, simple, and effective approach

m).s at permissions@pegasuscom.com.

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for fostering greater collaborativelearning and coherent thought than isoften available in large group settings?Our research reveals that what we havecome to call “The World Café” has aunique contribution to make whenthe goal is the focused use of dialogicinquiry to foster collective insightaround real-life challenges and keystrategic questions at increasing levelsof scale.

What is The World Café? It is aninnovative methodology that enhancesthe capacity for collaborative thinkingabout critical issues by linking small-group and large-group conversations.In the process, knowledge grows, asense of the whole becomes real, andnew possibilities become visible.TheWorld Café utilizes the principles ofdynamic networks and living systemsto access a source of deeper creativityand shared knowledge that might notbe available through more traditionalapproaches to collaborative work.

The World Café is also an evoca-tive metaphor that enables us to payattention to aspects of organizationallife that are often invisible, hidden byformal structures and policies. It high-lights the naturally occurring net-works of conversation and sociallearning through which we accesscollective intelligence, create newknowledge, and bring forth desiredfutures. Using The World Café as anorganizing image allows leaders tointentionally design processes thattake advantage of the natural dynam-ics that are already at play in order to

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C A F É H O S T

While Café hosting is limited only by your iming elements as you experiment with Café co

• Set up Café-style tables or another relaxed

• Provide food, beverages, music, art, natural l

• Encourage informal conversation focused o

• Allow time for silence and reflection.

• Encourage members to “cross-pollinate” ide

• Have materials available for visually represe

• Weave and connect emerging themes and i

• Honor the social nature of learning and com

• Help members notice that individual converlarger field of collective knowledge and wis

create sustainable business and socialvalue.

How The World Café WasBorn Several years ago, we serendipitouslydiscovered the unique power of Café-style conversations. One rainy morning,we wanted to provide a comfortablesetting for participants in a global dia-logue on intellectual capital to enjoytheir coffee while waiting for the ses-sion to begin.We set up small tables inour living room and covered themwith paper tablecloths.We added flow-ers and set out colored crayons, like inmany neighborhood cafés.

People were delighted andamused.They got their coffee andgathered in small, informal groupsaround the tables. Soon, everyone wasdeeply engaged in conversation.Asthey talked, people scribbled ideas onthe tablecloths.After a while, some-one expressed curiosity about whatwas happening in other conversations.One person agreed to stay at eachtable as a host while others traveled toother tables to discover what interest-ing ideas were pollinating there.

People buzzed with excitement.At a certain point, they decided toleave a new host at each table.Theother members traveled to new tables,connecting ideas, testing assumptions,and adding to each other’s diagramsand pictures on the tablecloths.

As lunchtime drew near, we tooka “tour” of all the tablecloths, seeingwhat new connections and questionshad emerged. Our interactive graphics

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I N G T I P S

agination, consider including the follow-nversations:

setting.

ight, and greenery.

n key questions.

as and insights across groups.

nting key ideas—markers and paper.

nsights.

munity building.

sations are part of and contribute to adom.

specialist captured collective insightsfrom the morning on a large piece ofnewsprint in the middle of the room.We suddenly realized that we hadtapped into something very simplebut potentially very powerful.Through the Café conversations, ashared knowledge base, larger thanany individual or group in the room,had become accessible to us. Ourunique contributions had combinedand recombined into rich new pat-terns of living knowledge and innova-tive thought that had not been visiblewhen we started.

The World Café As Methodology What makes such a seemingly simplepractice—that of talking togetherabout things we care about and inten-tionally linking the essence of ourconversations with others in ever-widening circles—so useful? We thinkit’s because Café conversations offerus the opportunity to notice the pos-sibilities for mutual insight, innova-tion, and action that are alreadypresent in any group, if we only knewhow to access them.We are discover-ing that this process offers a uniquemixture of freedom and focus, ofcoherence without control. Depend-ing on an organization’s needs, Caféevents can be designed around partic-ular themes or topics.The Café for-mat is flexible and adapts to differentcircumstances, based on a few simplepractices and principles (see “CaféHosting Tips”).

Groups as small as 12 and as largeas 1,200 from around the world haveengaged in Café learning conversationsin a wide range of settings. In a globalconsumer products company, execu-tives from over 30 nations used Caféprinciples to integrate a new world-wide marketing strategy. In NewZealand, Maori leaders combined TheWorld Café with indigenous meetingformats during regional treaty negotia-tions. Mexican government and cor-porate leaders applied The World Caféto scenario planning.A Fortune 100company is using “Creative Cafés” toexplore corporate responsibility withstakeholders.And faculty members inthe U.S. and Europe are creating

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Knowledge emerges in

response to compelling

questions that “travel well”

as they attract collective

engagement and exploration

throughout a system.

virtual online “Knowledge Cafés” toconduct distance-learning programs.

After participating in Café con-versations, members share commentssuch as,“I developed productive rela-tionships and learned more from oth-ers than I ever expected.You canactually see the knowledge growing.”Participants often develop anincreased sense of responsibility formaking use of the practical insightsthey gain and for staying connected asthey expand the conversation tolarger constituencies.

The practice of The World Caféis based on a set of working assump-tions that we continue to explore:• The future is born in webs of

human conversation.• Compelling questions encourage

collective learning.• Networks are the underlying

pattern of living systems.• Human systems—organizations,

families, communities—are livingsystems.

• Intelligence emerges as the systemconnects to itself in diverse and creative ways.

• We collectively have all the wisdomand resources we need.

Five Key Operating PrinciplesWe are discovering that the uniquecontribution of Café learning seems tocome from translating these workingassumptions into the following fiveoperating principles that, when used incombination, increase the likelihood ofgenerating breakthrough thinking.

Create Hospitable Space. Caféhosts around the world emphasize thepower and importance of creating awelcoming environment to enlivencollaborative conversation.We thriveand are better able to confront diffi-cult questions, explore underlyingassumptions, and create what we careabout in surroundings that evokewarmth, friendliness, and authenticitythan in those that are less hospitableto the human spirit. Most meetingplaces are sterile, cold, and imper-sonal. Consider choosing environ-ments with natural light. Createcomfortable seating. Honor our tradi-tions of human hospitality by offering

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refreshments. Play soft music as peopleenter. Decorate the walls with art.Hospitable space means “safe” space—where everyone feels free to offertheir best thinking.

Hosts can create hospitable spaceeven in large, impersonal venues. Forinstance, at a conference for 1,000people, we asked the hotel staff to setup small, round cocktail tables insteadof rows of chairs in the cavernousballroom.We then decked out eachtable with a red-checked tableclothand a vase of red and white carna-tions.Volunteers placed sheets ofwhite paper over the tablecloths andleft small containers of colored mark-ers for doodling.We also brought inpalm trees and other greenery.Whenpeople entered the room, they weregreeted by soft jazz music.The buzzof conversation almost instantly filledthe space.

Explore Questions That Matter.One of our most important learningsin working with The World Café isthat discovering and exploring “ques-tions that matter” opens the door tocatalytic conversation, insight, andinnovation. Knowledge emerges inresponse to compelling questions that“travel well” as they attract collectiveengagement and exploration through-out a system. Powerful questions pro-vide focus and coherence to networksof conversation that might otherwisespin off in random directions.Well-crafted strategic questions defineintention, focus energy, and direct atten-tion toward what really counts.

Hone the skill of shaping open-ended questions that are relevant tothe group’s real-life concerns.Thesequestions need not imply immediateaction steps or problem solving.Allowthe questions to invite inquiry and

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exploration.At one Café in Denmarkfocused on improving a school sys-tem, the hosts framed the centralquestion as “What could a goodschool also be?” rather than as “Howcan we fix the problems in thisschool?” In doing so, they opened upthe conversation to appreciating whatmight be possible in the future, ratherthan limiting the focus to what iswrong in the present.

Connect Diverse People and Per-spectives. “Intelligence emerges as thesystem connects to itself in diverse andcreative ways,” according to MargaretWheatley, author of Leadership and theNew Science (Berrett-Koehler, 1992).By cross-pollinating ideas amongtables in several rounds of conversa-tion, we intentionally invite a moreaccelerated and richer network of dia-logic interactions on a larger scale thanis common in most dialogue circles.

One technique for enriching theways in which the system connects toitself is to vary the different rounds ofconversation. Hosts stay at each tableto welcome guests while the othermembers travel to new tables to shareas well as gather insights.Travelersmight then return to their homeCafés or continue to move from tableto table for several iterations. Some-times the hosts change, with the firsthost becoming a traveler during thesecond cycle. Or several membersmight stay at the table while the oth-ers go out for brief visits as “ambassa-dors” to other tables, collecting newseed ideas that bring diverse perspec-tives to the home table.

Additionally, all living systems—including human systems—benefitfrom diversity. In her book The Quan-tum Society: Human Nature and Con-sciousness Defined by the New Physics(William Morrow and Company,1994), Danah Zohar states:“Socialevolution requires that different pointsof view, different ideas, different waysof life, and different traditions recom-bine into larger, more complex emer-gent wholes.” Breakthrough thinkingis more likely to emerge when diverseviewpoints and perspectives contributeto the exploration. For example,“Strategy Cafés” that engage multiple

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Na

stakeholders, including employees fromall levels as well as customers and sup-pliers, can offer richer opportunities forinnovation than traditional strategicplanning activities among senior executives alone.

Listen Together for Patterns,Insights, and Deeper Questions.Through Café conversations, partici-pants often discover coherent patternsof meaning in what may appear, at firstglance, to be a chaotic and messy self-organizing exchange of ideas and per-spectives.The emphasis is on sharedlistening—listening for the wisdom orinsight that no individual member ofthe group might have access to bythemselves.To that end, invite mem-bers to offer their unique perspectivesand listen for new connectionsin the “space in-between.”Allow for silence andreflection.Ask membersto notice what’s evolv-ing in the middle of thetable. By focusing onthese special qualities ofcollective attention, wehave a greater opportunityto experience what ourDanish colleague Finn Voldtoftecalls “the magic in the middle.”

For example, in Sweden, hosts of amulti-stakeholder forum used Caféconversations to clarify areas of inquirythat could influence the future of boththe information/communicationsindustry and the environment.Theybegan the first round of conversationby giving each table of participants a“talking stone.” Each member took thetalking stone in turn and presented hisor her key insights, thoughts, or deeperquestions about the query “How caninformation technology contribute toa sustainable future?”

The three other participants ateach table were to listen carefully anddraw any connections they noticedbetween ideas in the middle of thetablecloth. In the second and thirdrounds, the Café hosts asked everyoneto begin listening as a group for thedeeper assumptions underlying theirperspectives and to write them on thetablecloth as well.When the finalround was over, the group pooled the

Source:

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collective insights and “ahas” that hademerged from linking the small-groupdialogues from Café tables and creatinga “conversation of the whole.”Through this intentional process ofdiscovering and connecting underlyingassumptions and insights, participantswho might have opposed each otherin a different setting came to a mutualappreciation of the deeper questionsthey faced together in contributing toa sustainable future.

Make Collective Knowledge Visibleto the Group. We’ve come to realizethat the simple act of scribbling ideasand pictures on a paper napkin ortablecloth so that the others at the Cafétable can literally “see what you mean”is integral to knowledge creation andinnovation.As Michael Schrage says in

Shared Minds:The New Tech-nologies of Collaboration

(Random House,1990),“The

images, maps, andperceptions

bouncing aroundin people’s brainsmust be given aform that other peo-

ple’s images, maps, orperceptions can shape,

alter, or otherwise add value to. . . . Ittakes shared space to create shared under-standing.” By providing paper andmarkers, we encourage the use of“shared space” where people can buildon each other’s ideas, weave togethertheir thoughts, and engage in deepercollective listening.

Many Café events include aninteractive graphics specialist, who cre-ates large visual maps that synthesizekey insights and ideas. CommentedNancy Margulies, who has hostedmany Cafés,“It’s like having a big‘tablecloth’ in the middle of the wholegroup. Participants can quite literallysee that they are creating somethingnew together.” Other possibilities formaking collective knowledge visibleinclude having a “gallery walk,” withparticipants taking a tour of the table-cloths created by the different groups;publishing a Café newspaper on thespot; and creating theater presentationsthat reflect group discoveries. Each ofthese techniques allows participants to

ncy Margulies

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capture and build on the momentumand ideas that emerge. In addition,creating “storybooks” from the sessionallows participants to take the results of their work to larger audiences afterthe event.

The five operating principles seemquite simple, but embodying them asan integrated practice demands creativ-ity, thoughtfulness, artistry, and care.The creativity of the host can makethe difference between an interestingconversation and the magic of experi-encing what our colleague Tom Atleecalls co-intelligence in action.

Conversation As ActionBut is all of this talk just that, talk?What about the urgent need for actionin our organizations today? We havefound that, by its nature,The WorldCafé challenges the ways most of usthink about creating desired results inorganizational and community life.Many leaders still preach that weshould “stop talking and get to work”—as if talk and work were two sepa-rate things. Humberto Maturana, apioneering evolutionary biologist, hashelped us see that human beings thinktogether and coordinate action in andthrough language. Conversation is “realwork.”Through conversation peoplediscover who cares about what andwho will be accountable for next steps.We are finding that when people cometo a new level of shared understandingaround real-life issues, they want tomake a difference.When participantsreturn from Café conversations, theyoften see additional action choices thatthey didn’t know existed before.

Café As Metaphor As reported by members of Caféevents,The World Café is a powerfulmethodology for collaborative learningand knowledge evolution.We are alsofinding that it is a provocativemetaphor that can help us see organi-zational and societal change in a newlight. How might the metaphor of“The World as Café” invite us to thinkdifferently about ways to catalyze system-wide innovation and action?

We are learning that Café con-versations are based on a larger natu-ral process of mutual inquiry and

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If key knowledge sharing, learning, and strategic innovation happen in networks ofconversation through personal relationships, then . . .

• What is the unique contribution of leadership?

• What learning tools/methods/approaches have the most leverage?

• What are the implications for strategy evolution?

• How might you design physical space differently to support knowledge sharing?

• How would you approach the process of organizational change and renewal?

• What is the most strategic use of information technology?

• What are the indicators of success?

W H A T W E V I E WD E T E R M I N E S W H A T W E D O

discovery that does not depend onsmall, round tables and red-checkedtablecloths. By experiencing thepower of focused networks of conver-sation on a small scale, members seehow they might utilize this strategicinsight in the larger systems they arepart of.What if conversation were asmuch a core business process as mar-keting, distribution, or product devel-opment? What if it were already thecore process—the source of organiza-tional intelligence that allows all ofthe others to generate positive results?

For example, imagine yourorganization as a series of Café tables,with employees moving betweenfunctions inside the organization aswell as connecting with multiple“tables” of customers, suppliers, dis-tributors, and other conversation part-ners.What difference would it maketo your own action choices if youviewed your workplace as a dynamic,living network of conversations andknowledge creation rather than as atraditional hierarchy (see “What WeView Determines What We Do”)?

Based on an understanding ofThe World Café, leaders can takegreater responsibility for designinginfrastructures that bring coherenceand focus to organizational conversa-tions. For example, they come to rec-ognize the key role they play indiscovering “the big questions” andhosting strategic conversations withmultiple stakeholders.This shift of lensalso has practical implications for howleaders work with strategy formation,organizational learning, informationtechnology, the design of physicalspace, and leadership development.

In one Café session, senior leadersfrom major corporations were mappingthe implications of taking this view.The director of global operations for acompany with more than 50,000employees suddenly jumped up fromhis seat and exclaimed,“Do you knowwhat I’ve gone and done? I’ve justreorganized my entire global operation.I’ve broken up the informal knowledgenetworks and relationships that havedeveloped over the years. If I hadlooked at my reorganization throughthese glasses, I would have done it a lotdifferently. It’s going to take us a long

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time to recover!” His heartfelt com-ments stimulated a lively conversationabout the role of leaders in developingorganizational strategies that honorthese less visible but critical conversa-tional and learning processes.

We’re seeing many practical exam-ples of how people are intentionallyusing the metaphor of The World Caféto guide strategic work in larger sys-tems. Executives in a high-tech corpo-ration helped to decrease the injuryrate dramatically by using Café princi-ples to engage existing networks ofconversation and introduce questionsabout safety risks.The World Café hasled intellectual capital expert LeifEdvinsson of Sweden to observe thatthe office design of the past is inade-quate to support effective knowledgework. In response, he has engagedleading-edge architects in alternativespace design.

World Café principles are alsobeing used to redesign a Museum ofScience and Industry in Florida tohighlight not only formal exhibits butalso learning conversations as doorwaysto discovery.And the initiative Fromthe Four Directions: People Every-where Leading the Way is intentionallyweaving a global network of conversa-tions among leaders of all ages on sev-eral continents. Using the Internet andother information technologies, localconversation circles feed insights backinto the network, catalyzing theseworldwide leadership dialogues into agrowing force for societal innovation.

Creating Sustainable ValueThe World Café is one path for stimu-lating courageous conversation aboutquestions that matter to our lives and

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work—especially in large group set-tings.We are now seeing the systemicways in which focused networks ofconversation, especially with the sup-port of collaborative technologies, canhelp organizations and communitiesevolve. Using The World Café as amethodology and as a metaphor offersa practical yet innovative way to culti-vate both the knowledge required tothrive today and the wisdom neededto create the futures we want, ratherthan being forced to live with thefutures we get.

Juanita Brown and David Isaacs serve as strate-gists and thinking partners with senior leaders,applying living systems principles to the evolution ofknowledge-based organizations and large-scalechange initiatives.They have hosted Café conversa-tions and strategic dialogues internationally in awide variety of business and community settings.(Contact info@theworldcafe.com or call 415-381-3368). The World Café Community iscomprised of a growing global group of leaders andothers committed to courageous conversations andpositive futures.We thank Anne Dosher, KenHomer, Susan Kelly, Janice Molloy, Nancy Margulies,Karen Speerstra, and Sue Wetzler for their specialcontributions to this article.

•

• Notice the generative power ofconversation and shared listening.

• Explore what you would do differ-ently if you viewed your organiza-tion or community as a network ofconversations and social learningthrough which we co-evolve thefuture.

• Consider how you might “seed”your own networks of conversa-tion with questions that matter.

• Convene a Café conversation in your organization or community(for ideas, go to www.theworldcafe.com).

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T O O L B O X

FINE-TUNING YOUR CAUSAL LOOP DIAGRAMS—PART IB Y J O H N D . S T E R M A N

In system dynamics modeling, thepolarity of causal links is indicated by“+” or “–”. In recent years, some peo-ple (including THE SYSTEMS THINKER)began to use “s” and “o”. Pros andcons of each have been debated eversince. Following standard systemdynamics practice, I recommend the“+” and “–” notation, because it appliesequally correctly to ordinary causallinks and to the flow-to-stock linkspresent in all systems, while “s” and“o” do not. For further information,see George Richardson,“Problems inCausal Loop Diagrams Revisited,” Sys-tem Dynamics Review 13(3), 247-252(1997), and Richardson and ColleenLannon,“Problems with Causal-LoopDiagrams,” TST V7N10.

“ + ” A N D “ – ” V S .“ S ” A N D “ O ”

A R T I C L E 1 O F 2

In this two-part series, John D. Sterman,author of Business Dynamics: Systems Thinkingand Modeling for a Complex World (McGraw-Hill, 2000), shares some important tips formaking your causal loop diagrams (CLDs) asaccurate, understandable, and useful as possi-ble.This article, excerpted from BusinessDynamics, reviews helpful guidelines for theprocess of formulating CLDs; the secondarticle (to appear in the August 2001 issue)will explore more advanced tips. For basicguidelines about how to create CLDs and awide range of examples, refer to Sterman’sbook or go to www.mhhe.com/sterman orwww.pegasuscom.com.

ausal loop diagrams are animportant tool for representing

the feedback structure of systems.They are excellent for• Quickly capturing your hypothesesabout the causes of dynamics;• Eliciting and capturing the mentalmodels of individuals and teams;• Communicating the importantfeedback processes you believe are

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T H E S Y S T E M S T H I N K E R ® V O L . 1 26

Incorrect

? (+ or –)

RevenuePrice

Sales–+

+

RevenuePrice

Correct

A M B I G U I T Y O FL I N K S

To be effective, your CLD should not includeany ambiguous causal links.Ambiguous polari-ties usually mean there are multiple causalpathways that you should show separately.

responsible for a problem.The conventions for drawing

CLDs are simple but should be fol-lowed faithfully.Think of CLDs asmusical scores:At first, you may find itdifficult to construct and interpretthese diagrams, but with practice, youwill soon be sight-reading. In this arti-cle, I present some important guide-lines that can help you make sure yourCLDs are accurate and effective incapturing and communicating thefeedback structure of complex systems.

Avoid Ambiguity in LabelingCausal LinksPeople sometimes argue that a specificlink in a CLD can be either positive ornegative, depending on other parame-ters or on where the system is operat-ing. For example, we might draw adiagram that relates a firm’s revenue tothe price of its product and then arguethat the link between price and com-pany revenue can be either positive ornegative, depending on the elasticity ofdemand (see “Ambiguity of Links”).Ahigher price means less revenue if a 1percent increase in price causesdemand to fall more than 1 percent.This link would be labeled with a neg-ative sign. But less elastic demandmight mean a 1 percent increase inprice causes demand to fall less than 1percent, so revenues would then rise,resulting in a positive link polarity.

When you have trouble assigninga clear and unambiguous sign to alink, it usually means there is morethan one causal pathway connectingthe two variables.You should makethese different pathways explicit inyour diagram.The correct diagram forthe impact of price on revenue wouldshow that price has at least two effectson revenue: (1) it determines howmuch revenue is generated per unit

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sold (a positive link), and (2) it affectsthe number of units sold (usually anegative link).

Is It Reinforcing or Balancing?There are two methods for determin-ing whether a loop is reinforcing orbalancing: the fast way and the rightway.The fast way, which you mayhave learned when you first startedworking with CLDs, is to count thenumber of negative links—representedby “–” or “o”—in the loop (see “‘+’and ‘–’Vs. ‘s’ and ‘o’”). If the numberis even, the loop is reinforcing; if thenumber is odd, the loop is balancing.However, this method can sometimesfail, because it is all too easy to mis-label a link’s polarity or miscount thenumber of negative links.

The right way is to trace theeffect of a small change in one of thevariables around the loop. Pick anyvariable in the loop. Now imaginethat it has changed (increased or

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ProductQuality

– +

+

QualityImprovement

Programs

Incorrect

– +

QualityShortfall

ProductQuality

Correct

QualityImprovement

Programs

DesiredProductQuality

B B

+

Incorrect

+

MurderRate

Ice-CreamSales

++

MurderRate

Ice-CreamSales

Correct

AverageTemperature

E X P L I C I T G O A L S

Making goals explicit in balancing loops encourages people to ask questions about how the goals areformed. For example, what drives a company’s desired level of quality?

I C E - C R E A M S A L E SA N D M U R D E R S

Causal loop diagrams must include only whatyou believe to be genuine causal relationships,never correlations, no matter how strong.

decreased), and trace the effect of thischange around the loop. If the changefeeds back to reinforce the originalchange, it is a reinforcing loop. If itopposes the original change, it is abalancing loop.This method works nomatter how many variables are in aloop and no matter where you start.

Make the Goals of BalancingLoops ExplicitAll balancing loops have goals, whichare the system’s desired state. Balancingloops function by comparing theactual state to the goal, then initiatinga corrective action in response to thediscrepancy between the two. It isoften helpful to make the goals of yourbalancing loops explicit, usually byadding a new variable, such as “desiredproduct quality” (see Desired ProductQuality in “Explicit Goals”).The dia-gram shows a balancing loop thataffects the quality of a company’sproduct:The lower the quality, themore quality improvement programsthe company initiates, which, if suc-cessful, correct the quality shortfall.

Making goals explicit encouragespeople to ask how the goals areformed; for instance, who determinesdesired product quality and what cri-teria do they use to make that deter-mination? Hypotheses about theanswers to these questions can thenbe incorporated in the diagram. Goalscan vary over time and respond topressures in the environment, such ascustomer input or the quality ofcompeting products.

Making the goals of balancingloops explicit is especially importantwhen the loops capture humanbehavior—showing the goals promptsreflection and conversation about theaspirations and motives of the actors.But often it is important to representgoals explicitly even when the loopdoesn’t involve people at all.

Represent Causation RatherThan CorrelationEvery link in your diagram must repre-sent what you and your colleaguesbelieve to be causal relationships betweenthe variables. In a causal relationship,one variable has a direct effect onanother; for instance, a change in the

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birth rate alters the total population.You must be careful not to include cor-relations between variables in your dia-grams. Correlations between variablesreflect a system’s past behavior, not itsunderlying structure. If circumstanceschange, if previously dormant feedbackloops become dominant, or if youexperiment with new decisions andpolicies, previously reliable correlationsamong variables may break down.

For example, though sales of icecream are positively correlated withthe murder rate, you may not includea link from ice-cream sales to murderin your CLD. Such a causal link sug-gests that cutting ice-cream consump-tion would slash the murder rate andallow society to cut the budget forpolice and prisons. Obviously, this isnot the case: Both ice-cream con-sumption and violent crime tend torise in hot weather. But the exampleillustrates how confusing correlationswith causality can lead to terrible mis-judgments and policy errors (see “Ice-Cream Sales and Murders”).

While few people are likely toattribute murders to the occasionaldouble-dip cone, many correlations aremore subtle, and it is often difficult todetermine the underlying causal struc-ture.A great deal of scientific researchseeks the causal needles in a hugehaystack of correlations: Can eating oatbran reduce cholesterol, and if it does,will your risk of a heart attack drop?Does economic growth lead to lowerbirth rates, or is the lower rate attribut-able to literacy, education for women,and increasing costs of child-rearing?Do companies with serious qualityimprovement programs earn superior

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returns for stockholders? Scientists have learned from

experience that reliable answers tosuch questions are hard to come byand require dedication to the scien-tific method—controlled experi-ments; randomized, double-blindtrials; large samples; long-term follow-up studies; replication; statistical infer-ence; and so on. In social and humansystems, such experiments are diffi-cult, rare, and often impossible.Youmust take extra care to determine thatthe relationships in your CLDs arecausal, no matter how strong a corre-lation may be.

John D. Sterman is the J. Spencer Standish Professorof Management at the Sloan School of Managementof the Massachusetts Institute of Technology anddirector of MIT’s System Dynamics Group.

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F R O M T H E R E S O U R C E S H E L F

BUILDING RELATIONSHIPS WITH RESPECT ATTHE CENTERB Y J A N I C E M O L L O Y

Respect: An Exploration

by Sara Lawrence-

Lightfoot

n the introduction to her book,Respect:An Exploration (Perseus

Books, 1999), sociologist SaraLawrence-Lightfoot observes that“We pay more attention to [respect]when it is not expressed.”And, in fact,when searching for the causes ofdestructive social trends ranging fromschool violence to the culture ofrudeness that surrounds us, we tendto focus on what we perceive to be agrowing lack of respect for peoplewithin our society.

To shift our discourse from whathappens when respect is absent towhat happens when it is present,Lawrence-Lightfoot deftly weavestogether individual profiles, personalreflection, and philosophical analysis.Through the powerful stories she tells,she helps us to understand respect notas a rigid set of rituals based on statusand hierarchy but rather as a dynamicprocess of relationship-building.

Six Facets of RespectTraditional notions of respect empha-size “some sort of debt due peoplebecause of their attained or inherentposition” and require “expressions ofesteem, approbation, or submission.”In contrast, Lawrence-Lightfootdescribes respectful relationships basedin symmetry, empathy, and connec-tion, even among those considered tobe unequal. She documents how suchbonds grow and develop over time, aswell as the challenging work thatnurturing them entails.

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To illustrate the different ways inwhich people commit to buildingrelationships with respect “at the cen-ter,” the forms that these relationshipstake, and their impact on the partici-pants and others, Lawrence-Lightfootpaints a vivid portrait of the lives andwork of six individuals.The story ofeach of these people embodies a dif-ferent facet of respect: empowerment,healing, dialogue, curiosity, self-respect, and attention.

For instance, to bring to life theconcept of empowerment, the authorintroduces us to nurse-midwife Jen-nifer Dohrn, who founded a birthingclinic to serve poor women in SouthBronx, NY.After witnessing Dohrn’sinteractions with patients, includingduring the birth of several babies,Lawrence-Lightfoot reports that themidwife “provides an oasis of respectand safety that allows women to be intouch with their bodies, take controlof their care, and realize their ownpower to give birth and build a fam-ily.”Whereas in the Western medicalsystem, patients are traditionallyexpected to defer to the expertise andhigher status of the care provider, inthe Childbearing Center, they areencouraged to review their owncharts, read relevant literature, and par-ticipate in classes, groups, and mentor-ing so they can make informeddecisions about their medical care.

Likewise, to illustrate self-respect,Lawrence-Lightfoot follows HarvardUniversity law professor David Wilkinsas he strives to treat the people in hisclasses with a sense of dignity generallydenied to first-year students.To learnmore about each of his 150 Civil Pro-cedures students, he invites them tojoin him for lunch in groups of 12. Inthis intimate setting,Wilkins is able tosee his students as individuals and learn

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more about their unique histories.Back in the classroom, by creating anenvironment that feels safe and gener-ously offering these budding lawyers“his time, his wisdom, his humor, andhis legal expertise, he hopes that theywill feel his respect for who they areand will become.”

One theme that emerges from themosaic that Lawrence-Lightfoot cre-ates through these stories is how rolesoften reverse in respectful relationships:The so-called expert—teacher, health-care provider, minister—becomes thelearner, as the student, patient, orparishioner feels increasingly comfort-able conveying to the “expert” whathe or she knows, needs, and values.This growing interdependence trans-forms the relationship between theparticipants and the participants them-selves, dismantling traditional hierar-chies and leading to a greater sense ofmutuality and reciprocity.

The Promise of TransformationLawrence-Lightfoot’s dynamic viewof respect jibes with much of thework currently being done in organi-zations with disciplines such as ser-vant-leadership and dialogue. Each ofthese areas of research and practiceemphasizes the need to truly see andhear individuals and to honor theirunique contributions and perspec-tives. Each offers the promise of aradical transformation of our institu-tions, businesses, communities, andfamilies.And each gives us the hopeof wholeness—as individuals and inconcert with others—as we look tothe future together.

Janice Molloy is content director at Pegasus Com-munications and managing editor of THE SYSTEMSTHINKER.

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V I E W P O I N T

THE IMPERFECT STORMB Y P A T R I C K J . O ’ B R I E N

C o n t i n u e d o n n e x t p a g e ➣

hen the “great blizzard of2001” in the northeastern

United States failed to be in the rightplace at the right time, with the rightdegree of punch, lots of people gotfrustrated—even angry.Why theupset? Is shoveling snow so satisfying?

Actually, few people really lookedforward to the predicted snow, ice,slush, and power outages. But inanticipation of thestorm, families rushedto the food markets,companies closeddown, 18-wheelerspacked into rest areason the interstate high-ways, and airlines can-celled flights.When theanticipated storm didnot come as forecasted,many felt angry and frustrated.Thestorm eventually did come, but thetimetable, path, and intensity weredifferent than had been reported.

What went wrong? Nothing,really.We all made decisions based onprofessionally developed computermodels, and we followed the voice ofprudence that said,“It’s better to besafe than sorry.” But the storm did notact according to the model—and wewere sorry that we played it so safe!

The lesson to be learned is aboutmodels and how we use them. Modelsare constructed to represent some-thing—a car, an inventory system,global climate change, and so on.Amodel airplane is real—but it is notthe airplane itself. Likewise, a modelstorm is real, but it is not the stormitself—it is a representation of a storm,given a particular set of assumptionsabout multiple, interdependent vari-ables acting in a particular way in adynamic weather environment.

We cannot judge models on how“good” or “bad” they are—but on

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how “useful” we find them.To whatdegree does a model help build aware-ness of what the future may bring andhelp us prepare for it? Should we bringour raingear? Buy extra bottled waterand canned soup? To what degree doesa model help us understand the com-plexity of our present reality? Can wecount on a model of seasonal con-sumer demand to help us make deci-

sions about productionschedules and ware-house capacity?

A model’s useful-ness is enhanced if wecan dig inside of itand understand theinterplay of variables,and if we can distin-guish between thequality of the model’s

structure and the data that is put intoit. Even embarrassing uses of modelscan help us learn more about reality.Despite the confusion about calling thewinner of the U.S. presidential race inFlorida on election night, we did learna lot about the models that the poll-sters and TV stations use when predict-ing outcomes.

Models All Around UsWe are surrounded by models, evenwhen we don’t think of them as such.For instance, visit a new apartmentcomplex or suburban housing devel-opment and go through a model unit.Walk through the oversized closet;spin the built-in spice carousel; envi-sion the workshop in the extra-widegarage; smell the afternoon coffee.Maybe someday . . .

Or spend the morning at thelocal super hardware store. Play withthe computer models in the remodel-ing section. See how you could reno-vate your tiny, 18-year-old kitchen.Gleaming cabinets could hang here;

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the dishwasher could move there.Choose a refrigerator that opens onthe left, then one that opens on theright.Try lime walls with white trim,or white walls with lime trim. Maybesomeday . . .

The models look stylish in thenew summer fashions. How about anew dress, or perhaps that lavendersuit.The yellow, green, and red scarfcould go with just about anything.But I can’t picture myself in thatskimpy bathing suit any time soon.Maybe someday . . .

Models help us play around inpossible future worlds without therisk involved in making a majorfinancial investment or the risk offailure.They allow us to add or sub-tract variables and to change the rela-tionship between variables.They helpus plan how to react if some futureshould emerge and also to proactivelyshape that future. We might not be ableto change tomorrow’s weather, but wecan change the scheduling of productlaunches to take advantage of presentproduction capacity. Our models areuseful if they help us experience areality that we cannot otherwise takepart in within the limits of our pres-ent time/space boundaries.They canhelp us take the “Maybe” out of“Maybe Someday” by supporting theplanning process.

Different Responses to Different ScenariosPeople from all walks of life createtheir own models every day. Forexample, NFL coaches conduct modeldrafts to create the best possible team,given certain variables.What if theRaiders go for the defensive player inthe second round—should we tradedown or up? Go offense or specialteams? Who might be left on the

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board in the third round? Should weworry about the salary cap this year,or restructure contracts and worryabout it next year?

Or a production manager mightdraw out the dimensions of a prob-lem on the back of her lunch bag.She pencils in the variables, identifiesthe linkages, and asks questions suchas:“What is causing what? Where arethe delays? Are we creating our ownmess? What can we change? Whatwill happen if we do? Where is theleverage?”

We can even play corporateleader by using a computer simulationsuch as Balancing the Corporate ScoreCard (Harvard Business School Pub-lishing/High Performance Systems,Inc.). Make the tough decisions andsee what happens. Not satisfied? Goback and try something else.

The easy access to computers anduser-friendly simulation software hasgiven us the capacity to stretch ourthinking into the future. Instead ofbuilding sandcastles on the beach, wecan build—even remodel—organiza-

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F E E D B A

tional structures and see what mighthappen when the imperfect storms ofreality come across the terrain.We canplay with multiple scenarios and testthe robustness of our strategies againsteach possible future.

For example, what would happenif we wanted to challenge our thinkingabout the impact of economic devel-opment on the structure of our cityand county resources? What if we suc-cessfully recruit new industries intoour region, or if existing employerssignificantly expand? How will thepopulation expand? Will we be able tocreate a sustainable environment? Willthe school system be able to grow tomeet the needs of the increasing num-ber of students? What about space forrecreation? Will there be enoughwater, enough energy? Where will thetalent come from? How will theworkforce get to the workplace—bycars, by public transportation? Are wewilling to change our tax structure tobuild the infrastructure to support eco-nomic expansion? Where will thedelays be? We can create a variety ofscenarios to help us better understand

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these futures and then challenge ourown beliefs about how much we reallywant to expand.

The value of any model, includ-ing the mental models that we havein our heads about how the worldworks, lies in our own willingness tochallenge the assumptions used tocreate the model—and to live in thealternative futures that models allowus to think about. So that storm lastwinter didn’t happen in precisely theway we thought it would, based onthe models we followed. But it didhappen.And we were prepared.Thestorm model was certainly useful,even if somewhat inaccurate on thisoccasion. It is up to us to make ourown best decisions based on modelsthat we trust—and then continuallywork to refine those models if theydon’t always produce results we canrely on.

Patrick J. O’Brien is an executive consultant withPerformance Consulting, Inc., a firm dedicated tohelping organizations learn how to create thecapacity to achieve sustainable outcomes.

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Delving Deeper into the California Energy CrisisI read the article “A California DreamBecomes a Nightmare” (V12N2) onthe California energy crisis with someinterest. However, I felt there weresome key areas left out of the assump-tions and causal loop diagram.

The article addresses California’snot building power plants. However,this did not occur due to the 1996deregulation. Having worked in theenergy industry for quite a while, ithas been a known fact since the mid-to late-1980s that California did nothave enough capacity to meet futuredemand. Needless to say, any time autility tried to bring in a new plant, itwas shut down. For years this was

driven by public protest more so thanstatutory reasons.As a result, the real“cause and effect” began at least adozen years before the deregulation.This really demonstrates the funda-mental rule that cause and effect arenot closely related in time or space(generally speaking).

The diagram in the article doesnot appear to address the dynamics ofnot building any new power plants. Icould indirectly read that into a cou-ple of areas, but it is not clear to me.

—Steve Abernathy

Editor’s Response: Thank you, Steve, for enriching the discus-sion of the dynamics surrounding the Cali-fornia energy crisis. Because our “From the

Headlines” articles are limited to one page,our writers only have enough space toscratch the surface of complex issues such asthis one.Although these brief articles aren’tmeant to be comprehensive or definitive, wehope they provoke readers to explore thestructures presented in greater detail and tochallenge the assumptions that went intothe diagrams that we publish.We hope thearticle and Steve’s thoughtful feedbackmight serve as the basis of an interestingdialogue; to participate, please go tohttp://www.pegasuscom.com, click on“Pegasus Forums,” go to the “SystemsThinking” Bulletin Board, and look forthe topic “California Energy Crisis.”

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S Y S T E M S T H I N K I N G W O R K O U T

READER’S RESPONSE TO “MOVING BEYOND THE E-VENT LEVEL”

becomingUnaddressed

Issues addressing

building

Frustration

releasing

generating

Defensiveness

alleviating buildingmodel II

skills

Commitmentto Model II

Model II Skills

buildingcommitment

conversationsabout issue

B3

B1

B5 B7

B2R6

R4

The Leverage in Building Communication Skills

In the March issue of THE SYSTEMSTHINKER, we reported about a web sitedesigned to encourage anonymous com-plaints by employees from throughout thecorporate world. Chris Soderquist, founderof Pontifex Consulting, offered his perspec-tive on why blowing off steam can be coun-terproductive rather than therapeutic.

The Problem: UnintendedConsequences of VentingWhile reading the Workout regardingVault.com, I couldn’t help but picturePeter Finch’s famous scene from themovie Network, as he leans out thewindow and screams “I’m mad as __,and I’m not going to take it any-more!” Such a cathartic release seemsreally therapeutic: however, it is oftenmore harmful than helpful.

Anonymous “venting” seems like agreat idea. But succumbing to thisimpulse will likely decrease the proba-bility that any effective change willhappen in an organization. Here’s why.

As frustrations build, the naturalreaction is to vent, releasing that frus-tration (B1).This is just a quickrelease; since the cause of buildingfrustration—unaddressed issues—stillremain, the level of frustration rebuilds.Eventually, people will engage in con-versations to address the issues, whichwill lower frustration (B2)—and fewerunaddressed issues reduce the buildingof frustration (B3).

This would be effective if theprevious venting had not generateddefensiveness, which hinders stake-holders’ ability to address the issues. Itsets in motion an insidious viciouscycle: the higher the frustration, themore venting, and the less likely con-versations will result in addressing theissues—and the more frustration (R4)!

The Solution: Model II SkillsThe leverage point is building theorganization’s capacity to facilitate

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productive conversations—ones thatreduce defensiveness in order to moreeffectively address issues. Chris Argyrisrefers to such skills as Model II skills;they are described in very practicalterms in Roger Schwarz’s The SkilledFacilitator (Jossey-Bass, 1994).

Comments like “The CTO is acomplete idiot” are unactionable; theymight be true, they might not—yetthere’s no data for anyone in the sys-tem to decide what’s true nor howimprovements can be made! Suchcomments only increase defensive-ness. Plus, venting anonymouslyallows the venter to ignore their ownresponsibility with respect to theissue. Model II skills help people whowant change to present their issues inways that reduce potential defensive-ness by doing so in a “mental model-testing” way. Mental model-testingfacilitates collaboration with all stake-holders on resolving issues—and bydoing so, the venters may even havetheir mental models revised.

Organizations embarking on thisjourney set in motion beneficial feed-

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back loops. First, because defensivenessis alleviated, conversations about issueseventually lead to addressing them,which lowers frustration (B5). Second,a virtuous cycle results because suc-cessfully addressing issues will increasean organization’s commitment tobuilding Model II skills (R6).

Learning these skills requiresapplying them to conversations aboutdifficult issues, which, if successful,reduces the need to have such con-versations (B7). Such a loop wouldimpede further building of these skillsif not for the fact that more issuesenter the unaddressed stock (thatnasty inflow will make sure of it).Thegood news is that future issues willlikely be “higher quality” issues.Organizations that learn to addresssome of the issues described in the E-vent article will—like moving upMaslow’s hierarchy—be able to focuson issues of more strategic impor-tance.And that’s an issue not to com-plain about!

—Chris Soderquist•

I N K E R ® J U N E / J U LY 2 0 0 1 1 1

http://www.berkana.orgThe Berkana Institute is an educational andresearch foundation, founded by MargaretWheatley and Myron Kellner-Rogers, thatseeks to explore new thinking and practiceabout the organizing of human endeavor.The Institute sponsors research into theconditions that support the liberation ofour collective capacity in organizationsworthy of our humanity.The web siteincludes a calendar, a history of the organi-zation, and information on new initiatives.

http://www.chaordic.orgThe Chaordic Alliance is committed tocreating the conditions for the formationof practical, innovative organizations thatblend competition and cooperation toaddress critical societal issues.The website offers definitions of and resourcesabout chaordic principles, news andevents, and information about partnersand projects.

F R O M T H E F I E L D

Profit Beyond Measure Receives Shingo PrizeProfit Beyond Measure: Extraordinary Results Through Attention to Work and People byH.Thomas Johnson and Anders Bröms (Free Press, 2000) has been awarded the2001 Shingo Prize for Excellence in Manufacturing. Johnson was a presenter at the2000 Systems Thinking in Action® Conference and will publish an article based onthat presentation in an upcoming issue of THE SYSTEMS THINKER.The 13th AnnualShingo Conference and Award Banquet will be held June 4–8 in Dearborn, MI.For information, go to http://www.shingoprize.org/shingo/index.html.We congratu-late the authors on this well-deserved acknowledgement of their achievement andcontribution.

Three New Pocket Guides Available These handy reference guides—the latest in our Pocket Guide series—offer prac-tical tips for accelerating organizational change and managing complex challenges.

A Guide to Practicing Dialogue by Glenna Gerard and Linda Ellinor

This guide differentiates dialogue from discussion/debate, offers tips for practicingdialogue skills, and suggests ways to use dialogue in problem-solving and decision-making.

A Guide to Servant-Leadership by Ann McGee-Cooper and Gary Looper

This guide compares servant-leadership with traditional leadership models, givesinitial steps for practicing servant-leadership, and outlines how TDIndustries built ashared vision using this methodology.

Managing the Archetypes:Accidental Adversaries by Philip Ramsey andRachel Wells

The first in a new series on managing the systems archetypes, this guide offersinsights into the dynamics of relationship breakdowns and provides leverage pointsfor strengthening healthy relationship loops while weakening dysfunctional ones.

To order, call 800-272-0945 or go to http://www.pegasuscom.com. $5.00 each;volume discounts are available.

John Leggate Added to Conference ProgramPegasus is pleased to announce the addition of John Leggate as a keynote speakerat the 2001 Systems Thinking in Action Conference. Leggate is group vice president,Digital Business, for BP, one of the world’s largest oil companies. In his presenta-tion, titled “Learning in the Digital Era—The Strategic Imperative,” he will talkabout how BP is changing the way that teams work together and communicate;these changes are in turn challenging how traditional managers think about collab-oration and the boundaries of their own creativity. For more information aboutthe conference or to register, go to http://www.pegasuscom.com/stapage.html.

T H E S Y S T E M S T H I N K E R ® V O L . 1 2 , N O. 5 w w w. p e g a s u s c o m . c o m © 2 0 0 1 P E G A S U S C O M M U N I C AT I O N S1 2

P E G A S U S N O T E S

L E A R N I N G L I N K S

Managing Editor: Janice Molloy (janicem@pegasuscom.com)Founding Publisher: Daniel H. KimPublisher: Ginny WileyEditors: Kali SaposnickProduction: Nancy DaughertyCirculation: Glenn Ceurvels (glennc@pegasuscom.com)

Editorial Advisory Council: Pål Davidsen, Universityof Bergen; Bob Eberlein, Ventana Systems, Inc.; Sharon A. Els,Pugh-Roberts Associates; Michael Goodman, Innovation Associates; Janet Gould Wilkinson; Gregory Hennessy,McKinsey; Jenny Kemeny; David Kreutzer, Successful Systems;Victor Leo; Dennis Meadows, University of New Hampshire;John Morecroft, London Business School; David W. Packer, TheSystems Thinking Collaborative; James Pennell, Morgan Stanley;Nick Pudar, General Motors Corporation; Michael J. Radzicki,Worcester Polytechnic Institute; Thomas J. Ryan, Shell Oil Company; Peter Senge, MIT Sloan School of Management;Dan Simpson, The Clorox Company; John Sterman, MIT SloanSchool of Management; Pat Walls, FedEx

THE SYSTEMS THINKER® explores both the theory andpractice of systems thinking and related organizationaldevelopment disciplines.Articles by leading thinkers andpractitioners articulate the challenges and issues involved increating organizations on the leading edge of innovation.Weencourage dialogue about systemic issues and strive to pro-vide a forum for debating such issues. Unsolicited articles, stories, and letters to the editor are welcome.

THE SYSTEMS THINKER® (ISSN 1050-2726) is published 10times a year by Pegasus Communications, Inc. Signed arti-cles represent the opinions of the authors and not neces-sarily those of the editors.The list price is $189.00 for oneyear. Site licenses, volume discounts, and back issues arealso available.

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