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

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

3. Adaptive Cycle

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

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

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

7. 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

8. Effectiveness and efficiency

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

10. Superman

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

12. 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.

13. Adaptive cycle

14. 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

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

16. Managers and leaders

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

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

19. 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

20. Responsible leadership

21. 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.

22. Adaptive cycle

23. New combinations: introduction

24. 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.

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

26. 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

27. 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

28. 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

29. 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!

30. 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

31. Adaptive cycle

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

33. 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.

34. Lifting your standards

35. 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

36. 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.

37. 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

38. BREAK  Coffee (no Senseo)  Afterwards: discussion

39. Discussion

40. 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.

41. 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.

42. 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

43. 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.

44. Any further questions?  Thank you for your attention!