Sensemaking is the process of interpreting experiences, signals and information to create understanding and guide action.
It is how people answer the question: What is going on here?
In organisations, sensemaking is crucial when circumstances are uncertain, ambiguous, or evolving. Facts may be partial, and individuals might interpret the same event differently. Existing explanations might no longer apply, and subtle signals are often overlooked. In ‘Adapt, Survive and Flourish,’ sensemaking is vital because organisations do not react directly to reality; instead, they respond to the meaning they assign to it. This interpretation influences behaviour, decisions, and outcomes.
Why Sensemaking Matters
Organisations frequently believe that having better information will directly result in improved decisions. However, this is not always the case. People still have to interpret the information—understanding its significance, the reasons behind it, the changes involved, who is impacted, what assumptions are involved, and what actions to take.
When sensemaking is weak:
- Signals are missed.
- Assumptions remain hidden.
- Data is misread.
- Disagreement becomes confusion or conflict.
- Leaders act too quickly on old explanations.
- The organisation mistakes familiarity for understanding.
When sensemaking is effective, individuals are better equipped to recognise patterns, navigate uncertainty, examine interpretations, reveal assumptions, and develop shared understanding prior to acting.
Sensemaking and Action
Sensemaking is not passive reflection.
It guides action.
Every decision is based on an interpretation of what is happening. If the interpretation is flawed, action may be confident but misdirected.
This is why sensemaking must remain connected to Gemba, feedback and consequences. The organisation needs to evaluate whether its interpretation still fits reality.
Sensemaking and Shared Understanding
Sensemaking is both individual and collective.
Individuals make sense of their experiences, but organisations need shared sensemaking to coordinate action. This requires dialogue, trust, psychological safety, useful models, good questions, and a willingness to revise assumptions.
Without shared sensemaking, people may act from different versions of reality while believing they are aligned.
In Plain Terms
Sensemaking is how people turn experience into meaning.
It helps an organisation move from:
What happened?
to:
What does this mean, and what should we do next?
Related Concepts
- Line of Sight
- Gemba
- Feedback
- Dialogue, Dialectic and Debate
- Shared Mental Models
- Psychological Safety
- Mindsets
- Weak Signals
- Adaptive Capacity
- Organisational Learning Ecosystem
For more information see: