Leadership Initiative

Session 6: Strategy, Decision-Making

and Polarity Management

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

 

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.

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

Polarity Management

Exhale Inhale

Positive Results Positive Results

Negative Results Negative Results

InhaleExhale

Get Oxygen

Too Much

Carbon Dioxide

Clean Out

Carbon Dioxide

Lack of

Oxygen

Positive Results Positive Results

Negative Results Negative Results

InhaleExhale

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

InhaleExhale

Get Oxygen

Too Much

Carbon Dioxide

Clean Out Carbon Dioxide

Lack of

Oxygen

Positive Results Positive Results

Negative Results Negative Results

INHALEEXHALE

EXHALE INHALE

EXHALE INHALE

Polarity Management™ ComplementsThe Systems Theory notion of Virtuous Circles

Healthy

Unhealthy

INHALEEXHALE

TOO MUCH

CARBON

DIOXIDE

LACK OF

OXYGEN

GET

OXYGEN

CLEAN OUT

CARBON

DIOXIDE

andEXHALE

Competitive Advantage

Can’t Compete

andStability

Greater Purpose

Deeper Fear

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.”

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

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?

The Polarity Management™ Process – 6 Steps

2 - IncludeKey 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

Dilemma1-2-3-4-5-6-7-8

1-2-3-4-5-6-7-8

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

*

ChangeStability

**

*

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 WarningsMeasurable 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 StepsHow will we gain or maintain the positive results from focusing on this left pole? What? Who? By When? Measures?

Action StepsHow 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

GPS = Greater Purpose StatementEffective 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 WarningsMeasurable indicators (things you can count)

that will let you know that you are getting into the downside of this right pole.

1.

Action StepsHow will we gain or maintain the positive

results from focusing on this right pole? What? Who? By When? Measures?

1.

Action StepsHow will we gain or maintain the positive

results from focusing on this left pole? What? Who? By When? Measures?

1.

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; ResponsibleCompassionate; Concerned AND Assertive; Bold

Mindful; Reflective AND Active; EnergeticPrincipled; Integrated AND Engaged; Involved

Realistic; Questioning AND Optimistic; ConstructiveGrounded; Factual AND Visionary; HopefulConfident; Secure AND Adaptive; FlexibleIndependent; Strong AND Humble; Open

12 Leadership Polarities From Polarity Management Associates

Conditional Respect AND Unconditional RespectTask AND Relationship Candor AND Diplomacy

Responsibility AND FreedomConfidence AND Humility

Analysis AND EncouragementControl AND Empowerment

Grounded AND VisionaryStructure AND Flexibility

Logic AND CreativityIndividual 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 UnityCandor AND Diplomacy

Reality AND FaithDeep Understanding AND Simplicity

Discipline AND Entrepreneurship Technology Fads AND PioneeringEvolutionary AND Revolutionary

Preserve Core AND Stimulate Change 

“I believe that the central leadership attribute is the ability to manage polarity.” Peter Koestenbaum

8 Leadership PolaritiesFrom Lost in Transition by Richard Elsner and Bridget Farrands

To shake things up AND To preserveTo be open to events AND To be intentional about results

To develop bonds AND To keep distanceTo seek help to learn about the org. AND To give value by showing

how to succeed or avoid failureTo impose AND To facilitate

To go fast to perform AND To go slow to prepareTo clean out AND To develop

To support the team AND To serve the hierarchy and/or the wider organization

11 Important Organizational PolaritiesFrom Polarity Management Associates

Centralized Coordination AND Decentralized InitiativesRecognize the Individual AND Recognize the Team

Reduce Cost AND Improve QualityCompeting with Others AND Collaborating with Others

Stability AND ChangeCelebrating Our Differences AND Celebrating Our Commonalities

Care for My Part of the Organization AND Care for the Whole OrganizationShowing Respect for Every Person AND Showing Respect Based on Performance

Getting the Job Done (task) AND Building RelationshipsTaking Care of the Organization AND Taking Care of the Customer

Work AND Home

10 Strategic Management PolaritiesFrom Strategy Synthesis by Bob de Wit and Ron Meyer

Logic AND CreativityDeliberateness AND Emergentness

Revolution AND EvolutionMarkets AND Resources

Responsiveness AND SynergyCompetition AND Collaboration

Compliance AND ChoiceControl AND Chaos

Globalization AND LocalizationProfitability 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 GrowthToday AND Tomorrow

The Whole AND The Parts

1 Organizational Polarity From Built to Last by Collins and Porras

Preserve the Core AND Stimulate Progress

6 Cross-Cultural PolaritiesFrom Building Cross-Cultural Competence by Charles Hampden-Turner and Fons Trompenaars

Universalism AND ParticularismIndividualism AND Communitarianism

Specificity AND DiffusenessAchieved AND Ascribed Status

Inner Direction AND Outer DirectionSequential AND Synchronous

5 Cross-Cultural PolaritiesFrom Cultures Consequences by Geert Hofstede

High Power Distance AND Low Power DistanceHigh Uncertainty Avoidance AND Low Uncertainty Avoidance

Individualism AND CollectivismMasculinity AND FemininityLong Term AND Short Term

POLARITY PRACTICEChoose a polarity pair from the lists or

create your own.

As a table, complete the polarity map.

**

*

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 WarningsMeasurable 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 StepsHow will we gain or maintain the positive results from focusing on this left pole? What? Who? By When? Measures?

Action StepsHow 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

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 StepsAction 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 StepsAction 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 WarningsMeasurable 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

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

STRATEGYDenise Walker

CORLearning