1. Leadership Initiative Session 6: Strategy, Decision-Making and Polarity Management

2. 5 Levels of Decision-making Vroom Yelton Authoritarian Decision Maker A-I Makes decision alone A-II Gathers information without telling others that they are “participating” in the decision Consultative Decision Maker C-I Consults with people individually for their input C-II Gathers information from the group-- has genuine interest in feedback C-III Consensus--shares decision making power with group

3. Group must understand the level of decision- making desired before deliberation. Time for decision making is greater the further down the list you go. Can’t flip back and go from C-II to A-I. Group should feel the magnitude of the question is sufficient to spend the time in order to reach consensus. Group must decide if they have enough time to make the decision by consensus. The group must be willing to reformat the question and alternatives if consensus seems unachievable. Members must abide by and support the decision once they give their consensus.

4. Purpose To enhance your leadership performance by differentiating between a problem to solve and a polarity to manage. Objectives ► To identify the value of either/or thinking ► To identify the value of both/and thinking ► To distinguish between problems to solve and polarities to manage ► To understand how all polarities look and work ► To learn the action steps for managing polarities well over time

5. Polarity Management ExhaleInhale

6. Positive Results Negative Results

7. InhaleExhale Get Oxygen Too Much Carbon Dioxide Clean Out Carbon Dioxide Lack of Oxygen

8. Positive Results Negative Results InhaleExhale

9. INHALEEXHALE C. Get Oxygen Too much Carbon Dioxide D. A. Clean out Carbon Dioxide Lack of Oxygen B. Polarity Management™ The Infinity Loop Energy System

10. InhaleExhale Get Oxygen Too Much Carbon Dioxide Clean Out Carbon Dioxide Lack of Oxygen Positive Results Negative Results

11. INHALEEXHALE INHALE EXHALEINHALE Polarity Management™ Complements The Systems Theory notion of Virtuous Circles

12. Healthy Unhealthy INHALEEXHALE TOO MUCH CARBON DIOXIDE LACK OF OXYGEN GET OXYGEN CLEAN OUT CARBON DIOXIDE and EXHALE

13. Competitive Advantage Can’t Compete and Stability Greater Purpose Deeper Fear

14. PROBLEM OR POLARITY? Problems to solve have: ► One right answer = “If I’m right, my opposition is wrong.” ► Two or more right answers that are independent = “There is more than one way to skin a cat.”

15. Polarities to manage have: Two or more right answers that are interdependent – like breathing “I and my opposition are not only both right, we are each dependent on the other’s truth over time.” POLARITIES ARE: Unavoidable, Unsolvable, Indestructible

16. POLARITIES Criteria for Polarities: (Yes = Polarity) (No = Problem to Solve) ► Are there 2 or more necessary upsides? ► Will over-focusing on one pole undermine the higher purpose? ► Is the difficulty ongoing, like breathing? ► Are the alternatives interdependent = do they need each other over time?

17. The Polarity Management™ Process – 6 Steps 2 - Include Key Stakeholders 1 -Define the Issue 6 – Action Steps and Early Warnings 4 - Understand How Polarities Work 3 - Build the Polarity Map 5 – Assess Realities With This Polarity Polarity Paradox Dilemma 1-2-3-4-5-6-7-8

18. Competitive Advantage Can’t Compete 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4. Negative Results of Over-focusing on Stability to the Neglect of Change Neutral Name of Left Pole Positive Results of Focusing on Stability Why? Guide to Polarity Map Content Negative Results of Over-focusing on Change to the Neglect of Stability Neutral Name of Right Pole Positive Results of Focusing on Change GPS = Greater Purpose Statement Deeper Fear * * Thanks to John Scherer, Center for Work and the Human Spirit ChangeStability

19. ** * Fears = Negative results from over-focusing on the right pole to the neglect of the left pole Values = Positive results from focusing on the right pole Fears = Negative results from over-focusing on the left pole to the neglect of the right pole Values = Positive results from focusing on the left pole Greater Purpose - why balance this polarity? Deeper Fear from lack of balance Early Warnings Measurable indicators (things you can count) that will let you know that you are getting into the downside of this right pole. Early Warnings *** Measurable indicators (things you can count) that will let you know that you are getting into the downside of this left pole. Action Steps How will we gain or maintain the positive results from focusing on this left pole? What? Who? By When? Measures? Action Steps How will we gain or maintain the positive results from focusing on this right pole? What? Who? By When? Measures? & & Basic Steps to Managing a Polarity Well Over Time

20. GPS = Greater Purpose Statement Effective Leader Deeper Fear from Lack of Balance? Ineffective Leader Basic Action Steps to Manage a Polarity Well Over Time ** Positive results from focusing on this left pole: What I Value too much of which can lead to the quadrant below: Positive results from focusing on this right pole: At those times I would like to be more… Negative results of over-focusing on this left pole to the neglect of the right pole: Sometimes I think I am too… Negative results of over-focusing on this right pole to the neglect of the left pole: What I fear if I do too much of the quadrant above to the neglect of the upper left quadrant: Early Warnings *** Measurable indicators (things you can count) that will let you know that you are getting into the downside of this left pole. 1. Early Warnings Measurable indicators (things you can count) that will let you know that you are getting into the downside of this right pole. 1. Action Steps How will we gain or maintain the positive results from focusing on this right pole? What? Who? By When? Measures? 1. Action Steps How will we gain or maintain the positive results from focusing on this left pole? What? Who? By When? Measures? 1.

21. 8 Polarities in “The Fundamental State of Leadership” From Building The Bridge As You Walk On It by Robert E. Quinn Spontaneous; Expressive AND Self-disciplined; Responsible Compassionate; Concerned AND Assertive; Bold Mindful; Reflective AND Active; Energetic Principled; Integrated AND Engaged; Involved Realistic; Questioning AND Optimistic; Constructive Grounded; Factual AND Visionary; Hopeful Confident; Secure AND Adaptive; Flexible Independent; Strong AND Humble; Open 12 Leadership Polarities From Polarity Management Associates Conditional Respect AND Unconditional Respect Task AND Relationship Candor AND Diplomacy Responsibility AND Freedom Confidence AND Humility Analysis AND Encouragement Control AND Empowerment Grounded AND Visionary Structure AND Flexibility Logic AND Creativity Individual AND Work Group Planning AND Implementation 10 Polarities in “Level 5 Leadership” From Good To Great by Jim Collins Self AND Organization Willfulness AND Humility Debate AND Unity Candor AND Diplomacy Reality AND Faith Deep Understanding AND Simplicity Discipline AND Entrepreneurship Technology Fads AND Pioneering Evolutionary AND Revolutionary Preserve Core AND Stimulate Change “I believe that the central leadership attribute is the ability to manage polarity.” Peter Koestenbaum 8 Leadership Polarities From Lost in Transition by Richard Elsner and Bridget Farrands To shake things up AND To preserve To be open to events AND To be intentional about results To develop bonds AND To keep distance To seek help to learn about the org. AND To give value by showing how to succeed or avoid failure To impose AND To facilitate To go fast to perform AND To go slow to prepare To clean out AND To develop To support the team AND To serve the hierarchy and/or the wider organization

22. 11 Important Organizational Polarities From Polarity Management Associates Centralized Coordination AND Decentralized Initiatives Recognize the Individual AND Recognize the Team Reduce Cost AND Improve Quality Competing with Others AND Collaborating with Others Stability AND Change Celebrating Our Differences AND Celebrating Our Commonalities Care for My Part of the Organization AND Care for the Whole Organization Showing Respect for Every Person AND Showing Respect Based on Performance Getting the Job Done (task) AND Building Relationships Taking Care of the Organization AND Taking Care of the Customer Work AND Home 10 Strategic Management Polarities From Strategy Synthesis by Bob de Wit and Ron Meyer Logic AND Creativity Deliberateness AND Emergentness Revolution AND Evolution Markets AND Resources Responsiveness AND Synergy Competition AND Collaboration Compliance AND Choice Control AND Chaos Globalization AND Localization Profitability AND Responsibility 7 Organizational Polarities From Managing on the Edge by Richard Tanner Pascale (Left column = the 7 areas of “Excellence” from In Search of Excellence) Strategy ……...Planned AND Opportunistic Structure…..….Elitist AND Pluralistic Systems..……..Mandatory AND Discretionary Style…………..Managerial AND Transformational Staff…………..Collegiality AND Individuality Shared Values…Hard Minds AND Soft Hearts Skills…………..Maximize AND Meta-mize 3 Organizational Polarities From The Three Tensions by Dominic Dodd and Ken Favaro Profitability AND Growth Today AND Tomorrow The Whole AND The Parts 1 Organizational Polarity From Built to Last by Collins and Porras Preserve the Core AND Stimulate Progress

23. 6 Cross-Cultural Polarities From Building Cross-Cultural Competence by Charles Hampden-Turner and Fons Trompenaars Universalism AND Particularism Individualism AND Communitarianism Specificity AND Diffuseness Achieved AND Ascribed Status Inner Direction AND Outer Direction Sequential AND Synchronous 5 Cross-Cultural Polarities From Cultures Consequences by Geert Hofstede High Power Distance AND Low Power Distance High Uncertainty Avoidance AND Low Uncertainty Avoidance Individualism AND Collectivism Masculinity AND Femininity Long Term AND Short Term

24. POLARITY PRACTICE Choose a polarity pair from the lists or create your own. As a table, complete the polarity map.

25. ** * Fears = Negative results from over-focusing on the right pole to the neglect of the left pole Values = Positive results from focusing on the right pole Fears = Negative results from over-focusing on the left pole to the neglect of the right pole Values = Positive results from focusing on the left pole Greater Purpose - why balance this polarity ? Deeper Fear from lack of balance Early Warnings Measurable indicators (things you can count) that will let you know that you are getting into the downside of this right pole. Early Warnings *** Measurable indicators (things you can count) that will let you know that you are getting into the downside of this left pole. Action Steps How will we gain or maintain the positive results from focusing on this left pole? What? Who? By When? Measures? Action Steps How will we gain or maintain the positive results from focusing on this right pole? What? Who? By When? Measures? & & Basic Steps to Managing a Polarity Well Over Time

26. Higher Purpose = Why Balance This Polarity? Synergistic value – achieve the company vision. Greater value to company Deeper Fear from Lack of Balance? Some of the existing BU’s will not exist Fortune 100 Company - USA * Thanks to John Scherer, Center for Work and the Human Spirit ** Thanks to The Strategy Academy, Rotterdam, The Netherlands *** Thanks to Todd Johnson, Rivertown Consultants * ** Positive results from focusing on this left pole: 1.Reason to believe – further along on the life cycle – operational 2.More clear goals/focus 3.Brings in cash 4.Speed/nimble 5.Easier for employees & customers to be connected (more traditional) 6.High level of control within the BU 7.BU initiative and creativity 8.Products/services better defined 9.Aligning ee interest/skill sets w/BU Positive results from focusing on this Right pole: 1.Synergy/coordination 2.Strategic advantage (distinctive) 3.Greater leverage of capabilities and broader skill set 4.Integrator 5.New revenue streams 6.Insulation of ingredient sales 7.Different customer relations 8.More emphasis on intangibles (IP) 9.Less capital intensive 10.Knowledge generation/sharing Negative results of over-focusing on this left pole to the neglect of the Right pole: 1.Higher costs/duplication of effort 2.Focus is too narrow/siloed/myopic 3.Loss of biz opps 4.Less sustainability of value 5.Lessened ability to integrate techs 6.Less leverage of capabilities 7.Less competitive advantage 8.More intense external competition 9.Less knowledge sharing 10.Less employee networking/career opps Negative results of over-focusing on this Right pole to the neglect of the Left pole: 1.More overhead 2.Bureaucratic and slow 3.Lack of clarity (internally & externally) 4.Lack of focus on ingredient sales 5.Narrower customer base 6.Slower to market/slower dev of new ingredients 7.Loss of cash flow 8.Loss of some specific capabilities or individuals (specialty ingred skills) Action Steps Action steps to gain or maintain the positive results from focusing on the Right pole. 1.Merging common functions and assets (quantifying and creating synergy value) – see budget mtg action list (end of April) 2.Specifically plan projects that grow ingredient sales – Sal by June 1, 2003 3.Target key BU customers and take an integrated/systems approach to unseat the incumbent 4.BUs forwarding project ideas and/or customers for solutions approach for the company (Corp. Steering Team) 5.Within BUs, develop ingredients or derivative systems that achieve company goals (i.e. achieve consumer needs) – Bob and Bruce initial discussion by May 14, 2003 6.Share/assign xxx contacts between BUs and CST, identify ee within BU to lead sales effort with specific customer – Bob to get xxx list compiled by June 15, 2003 – Mary and Sam to assign appropriate sales contact for target customers by May 14, 2003 Action Steps Action steps to gain or maintain the positive results from focusing on this left pole. 1.Higher capital authority level (increase amount for BU) and processing speed – Bob and Dave will make recommendation – May 14, 2003 2.Take a common customer approach with 3- 5 selected customers (where we have them between BUs and/or w/company, work together synergistically) – Sam – May 14, 2003 3.Mary & Ed meet to share customers and have a common sales approach 4.Joint sales training (more sophisticated) – have initial design discussions 5.Joint development of ingredient systems (look harder when we go to a customer about other systems we have access to in the company – work together with the company to figure out how we are going to develop ingredient systems) – SEE COMPANY UPSIDE 4 and 5 GREEN FLAGS Early Warnings *** Measurable indicators (things you can count) that will let you know that you are getting into the downside of the left pole. 1.We don’t address the duplication of effort (trend line on SG&A as a percentage of gross profit) 2.Platform “the approach” revenue goals are not met 3.Less knowledge sharing (how measure? Call reports?) Early Warnings Measurable indicators (things you can count) that will let you know that you are getting into the downside of the Right pole. 1.Meeting audit (measure of value, speed of decision making) 2.BU revenue goals are not met 3.Shrinking BU customer base 4.Engagement survey q’s that relate to lack of clarity CompanyBU

27. Using the Six Steps of Polarity Management Step 1 - Define the difficulty Step 2 - Include key stakeholders Step 3 - Map one key polarity Step 4 - How does this polarity work? Step 5 - Do you want to suggest or offer an ongoing assessment? Step 6 – Taking Action What might be some Action Steps? What might be some Early Warnings? Step 2 - revisited – Include Key Stakeholders

28. STRATEGY Denise Walker CORLearning