The Process of Management

1. The Process of Management Transformational Leadership

2. Focus of Lecture Example of a Practical Argument

3. A Process View of Leadership Prior Events Contemporaneous Events Later Events Onset of Adaptive Challenge Episode Living Normally Intervening Adapting Related Events

4. Significant Ideas • Technical problems and adaptive challenges are behaviorally very different situations • Meeting adaptive challenges is a process • Authority relations are resources and constraints on the exercise of leadership • Skilful use of these resources is necessary to meet adaptive challenges, but authority figures will still run the risk of receiving blame for failing to set things right – right away

5. Normative Claims • Theory of value (“the good”) • Participants better off, fair distribution of gains and losses, sustained mutually beneficial relationships • Resilience (a general capacity – of individuals and groups to respond well to future adaptive challenges) • Theory of agency • Individuals are moral agents and authority figures bear some of the responsibility for leading the process of adaptive work • Reason and intelligence are required - choices should proceed from value clarification and reality testing

6. One Source of Descriptive Claims Dominant animals dominate the attention of the band – serve as reference points by which others orient themselves Societies of chimpanzees and gorillas suggest that dominant members perform at least five social functions: Choosing the direction of group movement, (2) protecting the group from predators, (3) orienting members to their status and place, (4) controlling conflict, and (5) maintaining norms, including norms of mating and resource allocation. (A) Authority figure Authority relationships resemble the dominance and deference relationships of our primate ancestors (B) Followers

7. Outline of the Argument • It is a (complex) fact that individuals and collectivities sometimes face “crisis” situations, defined as ones where following routine procedures, enacting familiar patterns of social relations, and maintaining the same attitudes and values would be futile or counterproductive • Presumably, collectivities want to respond effectively to crises and, so, the issue is how to accomplish this goal • Responding effectively to a crisis situation requires intellectual, emotional, and political work – let’s call the process involved “adaptive work” • So, as a preliminary inference, the issue is how to conduct the process of adaptive work

8. Outline of the Argument (2) • The responsibility for conducting this process should not rest exclusively on the shoulders of authority figures • Therefore, the 1st order practical question about crisis situations is, “How should people (including but not limited to authorities) meet an adaptive challenge?” • A 2nd order practical question is, What should authority figures do in the face of a crisis? Given the earlier discussion, this question should be formulated as, “What contribution should authorities make to the process of adaptive work?” Better yet, “How should authorities intervene in a crisis situation, as it unfolds over time, so that the ultimate outcome of the process of adaptive work is an effective response to the crisis?”

9. Outline of the Argument (3) • To answer this 2nd order practical question, we need to inquire into how the process of adaptive work operates and then think about how authorities should take such knowledge into account • The process of adaptive work is influenced by more elementary social and psychological processes, such as • How people come to believe that they face a serious (urgent) problem • How people search for acceptable adaptations to such a problem • How people come to feel distress • How people process information when they are under stress • What people expect of authorities in crisis situations • How people respond when authorities are not meeting such expectations

10. Outline of the Argument (4) • These elementary social and psychological processes, and others, foster causal connections between authority figures’ actions (messages) and others’ thoughts, feelings, and actions as a crisis situation (episode) unfolds • Authority figures’ messages tend to receive a high level of attention because people look to authorities for answers and reassurance in crisis situations • When authority figures’ messages do not fully match expectations for answers and prompt authoritative responses, stress levels increase • Such stress can mobilize people to do adaptive work • At the same time, people whose expectations have been disappointed may shift blame for the situation toward the authorities (scapegoating) • Authorities will naturally “feel the heat”, and their natural inclination may be to meet the expectations (by, e.g., providing easy answers or pursuing diversions)

11. Outline of the Argument (5) • Given what we know about the variety of elementary social and psychological processes that are normally activated in a crisis situation, it is reasonable for authority figures to act as moral agents bearing in mind that • Authority gives them “resources” to be applied in a calculating way to influence the course of episodes of adaptive work • In calculating how to apply these resources, authorities should work with a “model” of the process of adaptive work and draw information about the specifics of the situation as it unfolds (e.g., perceptions of problems, stress levels, etc.) • Authority figures, if they are leading the process of adaptive work, will expectably feel substantial psychological pressure to relieve people’s distress • Provided that distress has not reached unproductive levels, authority figures should summon their courage and poise to hold steady – for a while

12. Unproductive scenario (1) Easy answer chosen Distress levels Work avoidance t

13. Unproductive scenario (2) Severe failure in fulfilling authority functions Disabled from doing adaptive work Distress levels Provocation t

14. Productive scenario Resolution Adaptive work underway Distress levels Provocation t

15. Flow of a Practical Argument Descriptive Claims Analysis of elementary social processes that are typically activated in a crisis situation A group recognizes the presence of a problem when the level of stress in the group goes up. Stress arises from disorientation in the face of a complex task. We expect the office holder to provide decisive direction, protection, orientation, control of conflict, and the restoration of norms. (not a complete list)

16. Outline of the Argument (6) • Given what we know about the social and psychological processes normally activated in a crisis situation, and given presumptions about moral agency, it is reasonable to suggest that authority figures approach their task of designing (and improvising) an intervention by applying five principles of leadership to the situation at hand

17. 5 Strategic Principles of Leadership addressed to Authority Figures • Identify the adaptive challenge Diagnose the situation in light of the values at stake • Regulate distress High, persistent enough to motivate adaptive work Low enough to be tolerable • Direct disciplined attention to ripening issues • Give the (adaptive) work back to the people - Place and develop responsibility by putting pressure on the people with the problem • Protect voices of leadership without authority - Give cover to those who raise hard questions and generate distress; make clear limits of cover

18. Outline of the Argument (7) • The intellectual ability to apply such principles to situations (increasing prospects for effective exercise of leadership) would be enhanced by examination of actual cases of crisis episodes, examining the interplay of authority figures and others in the situation

19. Learning from Experience (Recent) History Management theorizing and researching Experiences Codification Traditions of Thought about Value and Agency practical Elaboration Analysis of Practices Conducting a Leadership Intervention Impact

20. A Practical Example Consider the following value propositions:

21. Who are we and why do we exist? • Our business is to create value and opportunity for your business. We do this by combining our financial resources, access to physical commodities, and knowledge to create innovative solutions to challenging industrial problems. • Everything we do is about change. Together we are creating the leading company in the world. Together, we are defining the company of the future.

22. What we believe 1 • We begin with a fundamental belief in the inherent wisdom of open markets. We are convinced that consumer choice and competition lead to lower prices and innovation.

23. What we believe 2 • We are a laboratory for innovation. That is why we employ the best and the brightest people. And we believe that every employee can make a difference here. We encourage people to make a difference by creating an environment where everyone is allowed to achieve their full potential and where everyone has a stake in the outcome. We think this entrepreneurial approach stimulates creativity.

24. What we believe 3 • We value diversity. We are committed to removing all barriers to employment and advancement based on sex, sexual orientation, race, religion, age, ethnic background, national origin or physical limitation.

25. What we believe 4 • Our success is measured by the success of our customers. We are committed to meeting their needs with solutions that offer them a competitive advantage. And we work with them in ways that reinforce the benefits of a long-term partnership.

26. What we believe 5 • In everything we do, we operate safely and with concern for the environment. This is a responsibility we take seriously in all the different places around the world where we do business.

27. Our core values of integrity, respect, excellence and communication 1 • We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, we will not do it.

28. Our core values of integrity, respect, excellence and communication 2 • We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthless, callousness, and arrogance do not belong here.

29. Our core values of integrity, respect, excellence and communication 3 • We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.

30. Our core values of integrity, respect, excellence and communication 4 • We have an obligation to communicate. Here, we take time to talk with one another and to listen. We believe that information is meant to move and that information moves people.