Friday Shift: A brief introduction to the Two Loops model of change, presented by AHS Design Lab.

1. Two Loops: theory of change
March 4, 2022
#ThisFridayShift
@Design4AHS

2. #ThisFridayShift
@Design4AHS
https://www.youtube.com/watch?v=LQWKmtx8L2s&ab_chann
el=SystemsInnovation

6. Explore
Exploit
Transformative
Transformative innovation is about:
• Exploring opportunities outside of the
traditional playing field
• Radical change or expansion of the
business model
• Opportunities that create new growth, help
company expand into new markets
• Positioning the company for the long term
• High risk and uncertainty; rarely quick
returns
• Offers protection from disruption
Efficiency
Efficiency innovation is about:
• Improving operational aspects of the
existing business model
• Doesn’t influence business model in
substantial way
• Low risk and uncertainty, immediate
impact, predictability
• Doesn’t protect against disruption
• Doesn’t help position organization for the
future
Sustaining
Sustaining innovation is about:
• Amplifying opportunities that strengthen the
business model
• New products and services, new channels,
geographic expansion
• Low risk and uncertainty, predictability,
immediate impact
• Doesn’t protect against disruption
• Doesn’t help position organization for the future
Source: The Invincible Company (Osterwalder, Pigneur, Etiemble, Smith)

7. Innovation is not just about new
technology, faster apps, and
instant delivery of goods and
services. It’s about the people
in the system truly thriving.
https://www.themoment.is/how-change-happens/

9. Rigidity trap
What activities need to be
destroyed or otherwise sunset?
Poverty trap
What requires investment or
expansion to propel forward?
Transition
What activities do we need
to hospice or “palliate”?

10. Source: systemsinnovation.io

11. The transformation process is
where change is engineered.

12. Risks What are the risks of continuing with business-as-usual? Maintaining status quo?

13. Every system is
perfectly designed to
get the results it gets.
W. Edwards Deming

14. Organizations as living organisms:
Suddenly, we find that the old ways don’t
work on the new structures. To accomplish
change, we can’t just reprogram the
machine. We need to persuade and
engage empowered, thoughtful humans to
move in a new direction, at scale.
Therefore, we need to rethink how we
organize, manage, and lead them.
https://xplane.com/changing-change-management-the-shift-from-process-
centered-to-people-centered/

15. All truth passes through three stages.
First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.
Arthur Schopenhauer

16. References & resources
• Video: Two Loops Model
• Systems Innovation: Two Loops Model
• Changing Change Management: The Shift from Process-Centered to People-Centered
• Systems Innovation: Two Loops Canvas
• Strategic design toolkit: Two Loops
• Rigidity or Poverty Traps

17. Get in touch
Let's chat: Design.Lab@AHS.ca
@Design4AHS
@Design4AHS
D4AHS.com
@ erin_rohl
@ JRMnurse
@ mkrsmrk