MANAGERS & THE ADAPTIVE CYCLE

Group 5Information Management & Organizational Change

Alfred BaarsValeria PogadajevaRoelof 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 statements1. 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 statements7. 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 Statements10. 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 rolesTraditional management skills

Be a leaderFoster adaptation

Embrace disequilibrium

Generate leadership

No protocolsEncourage divergent

thinkingCut off bad ideas quicklyFocus on promising ones

StandardizeMaintain efficiencyFocus on the future

BREAK Coffee (no Senseo) Afterwards: discussion

Discussion

Equilibrium statements1. 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 statements7. 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 Statements10. 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!