MANAGERS & THE ADAPTIVE CYCLE Group 5 Information Management & Organizational Change Alfred Baars Valeria Pogadajeva Roelof Reinders Tobias van Oerle

Agenda  Introduction  The four phases of the Adaptive Cycle  Equilibrium  Crisis  New combinations  Business  Conclusions  Discussion

Adaptive Cycle

Equilibrium  Desired state  Upon reaching, this state must be maintained  Managers:  Mintzberg’s basic roles  Traditional management skills

Equilibrium (2)  Basic roles:  Informational Monitor, disseminator, spokesperson  Interpersonal Figurehead, leader, liaison  Decisional Entrepreneur, disturbance handler, resource allocator, negotiator

Equilibrium (3)  Management skills:  Political  Conceptual  Interpersonal  Diagnostic

Equilibrium (4)  What makes a good manager?  Positive environment  Succession and long term sense of reward  Willing to fight, but knows which battles to pick  Effectiveness and efficiency

Effectiveness and efficiency

Equilibrium (5)  But.. what makes a bad manager?  Insecurity  Personal dissatisfaction  Superman

Superman

Equilibrium (6)  But.. what makes a bad manager?

Equilibrium statements 1. A good manager can prevent an organization from going from equilibrium into crisis. 2. A manager can only really prove himself by performing well in a crisis situation/out of the ordinary-situation. 3. When the company is transitioning into a crisis, managers should back off in order not to make it worse.

Adaptive cycle

Crisis and Reorganization “The old and familiar no longer applies and the future is uncertain and precarious.” A.W. Abcouwer, B.G. Parson Desired state: Understanding the current situation Number of alternatives for future

Crisis and Reorganization (2) Who is needed to reach “new combinations”?

Managers and leaders

Crisis and Reorganization (3) Crisis leadership: 1. Emergency phase Stabilize situation Buy time 2. Adaptive phase Understand the causes/trends Build capacity to thrive

Crisis and Reorganization (4) Risk: Hunker down or press “Reset”  Short-term fixes  Tighten controls  Restructure plans  Etc.

Crisis and Reorganization (5) Leader’s tasks: 1. Foster adaptation Excel existing and develop new 2. Embrace disequilibrium Orchestrate conflict 3. Generate leadership Distribute leadership responsibly

Responsible leadership

Crisis and Reorganization statements 4. In the crisis situation it is safer for an organization to stabilize the existing business rather than work on new combinations. 5. The success of the company transitioning from crisis to new combinations is more dependent on employees than on a manager. 6. Inviting external personnel in the reorganization process is the most effective way of looking for new combinations.

Adaptive cycle

New combinations: introduction

Innovation: a magical process?  Don’t believe this commercial!!  Creativity is weird and cannot be forced  But it can be encouraged  How can management help?  … also, their coffee is terrible.

New combinations  Climbing out of a crisis situation  “Don’t think in problems, think in oppurtunities”  Start of a creative process

New combinations (2)  Part 1: coming up with ideas  Starting point:  The market  Also take into account:  The current product  Competitor’s products  Role of the manager:  Remove protocol, create a free environment, include people from different areas

New combinations (3)  Part 2: enhancing ideas  Determine which ideas are promising  Make sure all stakeholders are involved  If necessary, do research  Encourage good ideas  Cut off bad ones  Role of the manager:  Guide the creative process, plan resources, increase effectiveness

New combinations (4)  Part 3: finalizing the process  Form small team  Evaluate ideas up to this point  Select one for extensive prototyping/development  Hopefully climb into business phase  Role of the manager:  Make decisions, allocate resources

New combinations: summary  The ideal innovative manager would look something like this: Not afraid to skip protocol if needed Can start up multiple ideas Allocates resources by cutting off unpromising ideas, thus granting room for promising ones Not afraid to make tough decisions Note: the manager does not have to be creative, but just able to guide the process!

New combinations statements 7. Looking for innovation should be part of the daily business process, even in an equilibrium 8. It is best to focus on producing one new thoroughly developed product, rather than creating multiple less-developed prototypes 9. A ‘standard’ day-to-day manager is uncapable of guiding a creative process

Adaptive cycle

Business  Focus on the desired improvement/new development.  Priority is reaching the goal  Development is slowed by anything outside the focus  Strong management required

Business (2)  Dynamic and fast growth, requires a stable strategy in order to be successful  Start Standardisation  Optimise and maintain efficiency  To grow: Focus on the future not on the past.

Lifting your standards

Business (3)  Goal is to return to the equilibrium quadrant  Not the same as the old equilibrium  Maintain standards and efficiency once equilibrium is reached

Business Statements 10. For companies in very dynamic environments it is interesting to stay in the business part of the cycle. Because being in an equilibrium phase (which is standardized and bound by a lot of rules) does not benefit them. 11. Though looking forward is important, past practices should be a focus of the business part of the cycle. 12. Traditional management skills should not be the focus when looking for a new manager that has to guide your company back in to the equilibrium.

Conclusions Mintzberg’s basic roles Traditional management skills Be a leader Foster adaptation Embrace disequilibrium Generate leadership No protocols Encourage divergent thinking Cut off bad ideas quickly Focus on promising ones Standardize Maintain efficiency Focus on the future

BREAK  Coffee (no Senseo)  Afterwards: discussion

Discussion

Equilibrium statements 1. A good manager can prevent an organization from going from equilibrium into crisis. 2. A manager can only really prove himself by performing well in a crisis situation/out of the ordinary-situation. 3. When the company is transitioning into a crisis, managers should back off in order not to make it worse.

Crisis and Reorganization statements 4. In the crisis situation it is safer for an organization to stabilize the existing business rather than work on new combinations. 5. The success of the company transitioning from crisis to new combinations is more dependent on employees than on a manager. 6. Inviting external personnel in the reorganization process is the most effective way of looking for new combinations.

New combinations statements 7. Looking for innovation should be part of the daily business process, even in an equilibrium 8. It is best to focus on producing one new thoroughly developed product, rather than creating multiple less-developed prototypes 9. A ‘standard’ day-to-day manager is uncapable of guiding a creative process

Business Statements 10. For companies in very dynamic environments it is interesting to stay in the business part of the cycle. Because being in an equilibrium phase (which is standardized and bound by a lot of rules) does not benefit them. 11. Though looking forward is important, past practices should be a focus of the business part of the cycle. 12. Traditional management skills should not be the focus when looking for a new manager that has to guide your company back in to the equilibrium.

Any further questions?  Thank you for your attention!