1. Steve Waddell - PhD, MBA Principal - NetworkingAction swaddell@networkingaction.net Creating Large Change Systems …an approach for big challenges Tom Bigda-Peyton - PhD Managing Partner – Secondcurve Systems tom@secondcurvesystems.com

2. The Situation  Examples of large system change challenges  Health issues: The Affordable Care Act  Energy: Sustainable energy  Worker safety: BC forestry sector  Sustainable production: Fisheries  Social issues: Poverty, access to care swaddell@networkingaction.net2 Steve Waddell ©

3. Framework: Complex Challenges Highly Abstract Unknown (Learning) Complex Challenges (Issue development networks) Eg: Addressing poverty Complicated Challenges (Production networks) Eg: Putting a person on the moon. Known (Teaching) Chaotic Challenges (Chaos/unseen networks) Eg: People experiencing a disaster Simple Challenges (Simple networks) Eg: Filling potholes Very Specific 3 Adapted from: Snowden, D. (2005). "Strategy in the context of uncertainty." Handbook of Business Strategy 6(1): 47-54.

4. What’s Different about “Complex” Challenges  A large number of actors  Non-linear dynamics  Highly emergent…unpredictable  Unclear endpoints …complicated-based planning, implementation and measurement doesn’t work and is inappropriate swaddell@networkingaction.net4 Steve Waddell ©

5. Creating a Large Change System (eg: electricity, health)  Many organizations  Many emerging solutions  Multiple options for focus  Goal is transformation – redefining what we can achieve together…a flourishing future QUESTION: How can the change system be greatly strengthened for electricity, health, other issues? swaddell@networkingaction.net5 Steve Waddell ©

6. The Story  Project of the Energy Ecosystems Lab  Lab Question: How can the operating/enabling environment for the energy sector be enhanced to support integration of the sustainability imperative?  Project Question: What are implications of the concept of “change system” for enhancing effectiveness of energy change initiatives?  Five team members  Part 1: Understanding the global energy change system  Part 2: Action research swaddell@networkingaction.net6 Steve Waddell ©

7. Core Analysis: Need to Develop Coherence and Convergence 7

8. Core Analysis: There are Two Systems: The Production and Change Systems 8

9. 9 Definitions: The Energy Production System

10. Definitions: Electricity Change System Initiatives which aim to integrate concerns of access, efficiency and renewable energy into the electricity production system Examples:  Utility programs  RE Enterprises  Government programs  Research efforts  Non-profits  Environmentalists  Industry associations  Investors  Consumers 10

11. 11 Webcrawl View Of the Global Change System for Electricity

12. 12 Enviros Efficients Governors Renewables Advocates Marketers IQs

13. Electricity Change Subsystems 13 Connective tissue of vision and goals Technology Subsystem Service Provider Subsystem Policy Subsystem Consumption Subsystem Finance Subsystem Why do we need so many change initiatives? What are they doing? Change Subsystems identified by distinct: Goals Stakeholder roles

14. 14 Seven Functions What must a change system do well, to be effective? FunctionGoal VisioningCreating events and interactions that generate shared understanding and vision System OrganizingBringing together an emerging global system of diverse stakeholders to generate coherence in strategies Learning, Research, Capacity Development Developing and disseminating new knowledge and tools with research, piloting new approaches, and training Measuring/certifyingDeveloping indices, assessments, and/or certification processes Resources mobilizationProviding resources for the functions to be performed. AdvocatingMobilizing voice and increasing pressure upon specific stakeholders who are blocking (actively or inactively) change PrototypingDeveloping examples of the future

15. World Bank Change Profile 15

16. World Bank Change Profile 16

17. The System Change Matrix PolicyTechnologyFinanceService Provision Consumption Visioning Organizing Learning Measuring Financing Advocating Prototyping 17

18. How to Use the Matrix  Preparatory change/content expert analysis  2-day Action Planning Meeting  Participative analysis  Identification of potential coherence  Action plans to realize coherence  May (not necessarily) create on-going forum swaddell@networkingaction.net18 Steve Waddell ©