Tackling Complex Change
At Living Systems, we have spent over 20 years helping clients tackle complex transformation. One key lesson stands out: successful change demands an ambidextrous approach—balancing both the Formal and Informal Organisation.
The Formal vs. Informal Organisation
Most change efforts focus on the Formal Organisation—structures, roles, policies, and processes. Leadership takes a top-down, directive approach, designing change in isolation before cascading it down.
But the Informal Organisation—the networks of relationships, trust, and knowledge-sharing—plays an equally critical role. It’s self-organising, adaptive, and drives innovation. While the Formal Organisation dictates how work should happen, the Informal Organisation reflects how work actually happens.
Why This Matters More Than Ever
The challenges organisations face today are no longer just complicated (solvable with rules and processes); they are complex—unpredictable, multi-dimensional, and requiring constant adaptation. Traditional top-down change approaches fail in this reality. Why?
- Planning Phase: Leaders attempt to predefine solutions without tapping into diverse perspectives across the organisation. This weakens strategy quality and slows buy-in.
- Mobilisation Phase: By the time formal plans are announced, informal networks are already sceptical, spreading resistance through hidden conversations.
- Implementation Phase: The focus remains on structures and processes, neglecting the informal collaboration networks where real work happens—leading to fragmentation and failure.
Whole Ecosystem Transformation: A New Approach
At Living Systems, we integrate the Formal and Informal aspects of change through Whole Ecosystem Transformation. This means:
- Mapping Informal Networks with Organisational Network Analysis (ONA): Understanding how collaboration truly happens, identifying key influencers, and targeting efforts where they will have the greatest impact.
- Engaging Key Influencers Early: Involving a diverse microcosm of the organisation upfront to build “whole system sight” and secure genuine buy-in from informal leaders.
- Transforming Informal Networks, Not Just Formal Systems: Strengthening key collaboration networks to support sustainable change.
The Missing Piece: Collective Intelligence
If we are together less often, we must go deeper in surfacing and resolving key challenges when we are together. This demands greater conversational effectiveness, better group dynamics, and the ability to work through complexity together.
At Living Systems, we enable organisations to develop this capability—creating the conditions for collective intelligence to emerge.
The future of transformation isn’t just about better structures—it’s about better conversations, deeper connections, and smarter adaptation. Are you ready to lead in this new reality?
At Living Systems we develop the capacity for Connected Intelligence – enabling whole system change, fostering collective intelligence in groups and developing leadership agility. Start the conversation to move your business forward by contacting us today.