Organisations are human, non linear and self organising

BBC Radio Special - The Business Doctor

by Dr Paul Thomas 10. January 2008
Have Your Say;

In the BBC Radio Wales programme Wales@work - The Business Doctor, Paul sets out to prove to the manufacturing company, Excel Assemblies in Port Talbot how the theory of complexity works.

Listen here for the programme in full and have your say;
http://www.bbc.co.uk/radio/aod/networks/wales/aod.shtml?wales/tue_1830

However, Mr Chris Ward of the Wales Management Council thought it was wrong stating "My difficulty with Dr Thomas' argument is that he seems to believe that Welsh industry generally is populated by the wrong sort of management and therefore the right solution is to get rid of managers."

He added: "Increasingly we have seen the emergence of a new generation of leader-managers and servant-leaders whose job function is to achieve precisely what Dr Thomas is seeking - to unlock the potential and innovative capacity of all workers by supporting, encouraging and leading."

(Read the full article: http://icwales.icnetwork.co.uk/business-in-wales/business-features/2008/01/09/changing-face-of-management-91466-20326945/)

I s he correct?
Is Servant Leaders the answer?

Does he understand the meaning of Complexity and DNA?

Let us know what you think!


Related posts


Comments

Jean Matthews

January 11. 2008 13:13

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Hi Paul.

Excellent broadcast which seemed to gain a lot of support, but do you think confusion lies around what you mean by "getting rid of managers"....and maybe this did not come over clearly in such a short programme. I have always taken the view that organisations will still require people with 'business orientated skills' and the information that this provides to others in the system, so they can add value to the organisation. The difference is that they should simply be part of the system and not sit above the system in some elitist, all seeing, all knowing role. If the organisation is truely democratic then collectively they will decide how much that person is worth, how valuable (s)he is to the organisation.....does this sound a bit Habermasian maybe? ...although as you say there are organisations out there working in this way

As for servant leadership, and I apologise if I've misinterpreted it, but whilst it sounds empowering I'm not sure that this model truely does anything to allow the 'servants' (what an awful way to think about the workforce, shows their mindset) to think and evolve things for themsleves- ie self organise- it implies that they could not achieve it on their own without some objective leadership role. Its truely a biblical concept in the selfless image of leadership it tries to portray and of course it depends on who one really considers are your 'servants'....I work in the NHS

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Dr Paul Thomas

January 13. 2008 22:58

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It is expected during my work with companies bring forth a new way of thinking and doing that the majority of people respond with fear, trepidation and anxiety, all normal when they do not full understand the concept of change or the vast theory behind it. It is however disappointing that the ‘Head’ of Wales Management Council should respond with the same and demonstrate a clear lack of understanding to the process, thinking and challenge not to place Wales as an ‘also-ran’ but as world leaders as DNA seeks. The Welsh DNA academics and industrialists are committed to supporting organisations in Wales, to drive forward a new kind of business thinking and sustainable development for the 21st Century and beyond. There is a strong recognition in all others except Wales Management Council it seems, that in Wales 20th Century thinking about management, leadership will not allow the desired success for the future in Wales.

We only have to consider the Manufacturing sector in Wales provides jobs to around one in seven of all employees to fully understand our problem. 14% of the Welsh workforce is employed in manufacturing compared to 11% in England. These figures indicate the important contribution manufacturing brings to the wider economy, with 63% employed in ‘public services’. If we look at the concentration of manufacturing for South Wales the figures show a marked decrease with a fall of around 6% from 1998 to the present date. When Mr Ward makes the statement that everything must be better in Wales because management is one of the top 3 growing occupations in Wales is a ‘good thing’, is a shameful claim. Shameful especially in light that 80% of management time is spent in meetings and not adding value. A huge extravagance one we cannot afford in Wales, when manufacturing is in decline, Business bankruptcies are increasing and Wales poor shamefully the highest in the UK! Can you imagine the amount of money reinvested back into companies and organisations if the 200,000 managers quoted by Mr Ward were put back in to good use at the frontlines or to create new products?

What do we do that Mr Ward find so unpalatable it seem to me is that DNA aims to question and challenge traditional and current management practice and thinking, to improve organisational performance by, not managing. Simply at the start of changing an organisation in removing the title manager and its role in the organisations the people will see and understand how natural, human systems such as people and organisations operate while accepting an element of uncertainty. ‘Managers’ need then to contribute to the organisation and how their interactions influence the design and direction of the whole organisation from a customer perspective by adding direct value.

We only have to look at the NHS to see the waste in such a view it has on the patient care in Wales. Target setting, managers salaries and increasing bureaucracy created by ‘managers’ has doctor’s and clinicians morale at an all time low and police absenteeism levels are at an all time high, despite vast sums of money placed in for managers and management consultants. Managerial medalling is bringing industry and public services to their knees by a desire to control and treat staff as robots or cogs in a clock and worst still like children, is limiting staff and our economic growth.

My view of Welsh management is not that we have the wrong sort, indeed the ‘wrong sort’ is seen throughout the world simply by managers trying to be managers in the traditional sense. My view is that by removing managers in welsh companies we will replace them by having more managers throughout the organisation. That is everyone will be a manager. The ‘managers’ role will be taken by those voted into the position by the staff who respect the person they want to listen to, and who won’t interfere with their job.

Some managers and CEO’s are prepared to look at things differently and ensure Wales becomes number one in the world market place. By empowering and trusting staff became more creative in developing new business, indeed one company increase monthly turnover by 150%. Adopting a democratic approach is initially difficult but pays back dividends in the long-term with motivated, engaged, passionate, employees who enjoy and look forward to going into work. Plant earnings in one rose by 300% in 7 months, productivity by 45% in one company. In another accident rates fell by 95% and absenteeism went from 11% to 1% in 3 months and has remained like this for the past 18 months. Impressive, especially when you realise that this was done in companies without ‘managers’ in the Mr Wards traditional sense. We have to question the conventional ‘command and control’ management style, and consider alternative approaches if we are to move forward in Wales. I like to draw the analogy with a flock of birds; companies need to interact like they do in a complex, adaptive system in which, there is not just one pair of eyes (the manager) but a thousand pairs of eyes (all employees) focused on the prey and competition, i.e. customers and rivals.

We have to generate insight from new forms of measurement, critical support, bespoke input from qualified people and informed resources, using education and learning from training and personal development opportunities we are able to understand this ‘new’ way of thinking. We need to develop new qualifications, which encourage critical thinking, networking, humility and diversity and rid ourselves of the traditionalist who insist on doing the only way they know and except. We cannot afford to fund bodies who don’t critically review their practice and thinking yet expect the rest of the world to allow them to move forward at their pace. It won’t happen I’m afraid and larger parts of Wales will become ‘Objective 1’ status, thanks in part to people who fail to read, research and understand current practice.

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Christopher Ward

January 24. 2008 15:39

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I am surprised that Paul Thomas has responded in such a negative way to my recent article in the Western Mail. The Wales Management Council has always promoted the idea of active debate on issues relating to leadership and management in Wales, because we have a passionate belief that the leaders and managers in our businesses and organisation are the key drivers for economic growth in Wales. As such we want to see organisations in Wales embracing the most progressive and innovative approaches to management.

Whilst I would dispute Dr Thomas' premise that the way to empower the workforce is to get rid of the managers, I am in complete agreement with him that our aim should be to create businesses that make the best possible use of the talents of all staff. My article makes this very clear, and Dr Thomas' suggestion that our thinking at the Wales Management Council is both retrograde and unhelpful is a serious misinterpretation of the points I was making. In fact we argue that the increase in the number of managers reflects new thinking and structures which are entirely consistent with Paul Thomas' view that "by removing managers in Welsh companies we will replace them by having more managers throughout the organisation.

Just as his comments, as originally expressed in the media, sought to make his case by portraying all Welsh management as ‘medieval’, I fear he is trying to reinforce his case by seeking to cast Wales Management Council as champions of the old ways. The reverse is true. We are avid proponents of change. However my position is that I do not believe that getting rid of managers is a sensible way to achieve such change. Rather I believe in the retraining of managers to espouse the new thinking that Paul Thomas and many others recommend.

I am mindful of Peter Drucker's famous statement that "So much of what we call management consists of making it difficult for people to work.” I believe in removing the habits and attitudes that make life difficult, not in removing the managers. The quality of our management is vital to the future of Wales so let’s have a broadsheet rather than a tabloid debate on it.

As an aside I would also suggest that Jean Matthews has misunderstood the concept of servant-leadership. One of the leading exponents of the meaning and value of servant-leadership is Stephen Prosser, Professor of Leadership in Paul Thomas' own university . Stephen Prosser last year published (in the USA) an important book on the subject, To Be A Servant Leader (Paulist Press), which is a valuable reference point.


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Dr Paul Thomas

January 24. 2008 18:43

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Hello Mr Ward, Great to see you are now a member of DNA Wales and contributing to the serious debate of ‘management’ in Wales. Welcome.

I’m afraid the surprise has been for all it seems, but your article is directly quoted, so there is no misrepresentation. Indeed, as a matter of fairness, I place a direct link to the full article. Nevertheless, please note that its not a direct debate about you or the WMC who I am sure have influenced many leaders and managers here in Wales.

I am also pleased you quote Drucker who as I am sure you will have read stated that the biggest regret he had a year before his death, was that he didn't convince managers that they were fairly useless in the 'control' of the organisation. Please also note that ‘Complexity Theory’ and ‘Human Systems Thinking’, which is the architecture behind the DNA process, has been around for hundreds of years. There are also in fact many managers already operating in the DNA way, who don’t even know it and we take great pleasure in writing these managers up in our case studies and using their way to help in our networks! Please come along, they are mostly free and we would welcome your expertise.

DNA Wales was set-up seven years ago, as an antidote to outdated management styles, as a directly result of my contact with the LSE and Ricardo Semler, and management which is more than well known for slowing down decision-making, innovation, creativity and production. Almost everyone now realise how misguided we are in our traditional styles and thinking and to treat people in a mechanistic and traditional perspective is quite wrong. I’m glad you agree and I look forward to a new direction in the WMC and documents which support this ethos. What we do at DNA as stated above, which many find so unpalatable is to question and challenge traditional and current management practice and thinking, to improve organisational performance by not managing. In simple terms, at the start of changing an organisation, we begin the process of removing the title ‘manager’ and its role within the company. The people quickly see and understand how natural, human systems such as people and organisations operate, while also accepting there will always be an element of uncertainty in business, as in life. By removing the ‘manager’ label, role and position you instantly remove ‘power’, status and control. Replacing this with leadership, influence and democracy. ‘Managers’ role and direction need to directly contribute to the organisation and understand how their interactions influence the design and direction of the whole organisation, from a customer’s perspective, and by adding direct value. This can only be done by the removal of the traditional mindset.

In my view and many others, and a vast academy of research, removing ‘traditional role’ managers from organisations will in fact allow us all to manage the wealth and health of a company, from within, and by all staff. Managers, sorry to say Mr Ward do not lead economic development in Wales, they are simply part of the process. This process would be far more efficient if the people were also the economic drivers, something that Complexity Theory initiates.

Mr Ward you quote and continue to miss-quote, my words and use your words that management in Wales are “medieval” to describe how I see them. I do not, nor have I used this expression. All I see in the mindset not the person in management as in appropriate for today’s environment. Again we have known in Complexity academy and DNA for decades, and is the key argument against hierarchy, management structures and the growth of corporate layers is the lack of another ‘mindset’ which is organic, free and human. We have lots of 'managers' who do not think 'medieval' or act in any way other than 'organic' and democratic.

Questioning how we manage and how we are managed is a difficult process. It causes fear, uncertainty, and worry for many staff and managers alike, as they begin to realise they’re not adding value to the customer experience. Instead most managers create bureaucracy, rules and procedures that are costly and counter-productive to the success of the business. What I would encourage from you Mr Ward and the WMC is support to develop this research, thinking, even if it were to prove otherwise here in Wales. The evidence so far in the UK and world-wide is that organisations which adopt the perspective of Complexity become, quicker, more innovative and creative. By truly empowering and trusting staff in a non-mechanistic and command way, they become more creative and more involved in developing new business i.e. the take ‘ownership’.


The figures, as stated above, which I repeat as you seem to miss these, speak for themselves, one company we have worked with increased its monthly turnover by 150%. Plant earnings in one of our supported companies rose by 300% in 7 months, productivity by 45%. In another, accident rates fell by 95% and absenteeism went from 11% to 1% in 3 months and has remained like this for the past 18 months. Impressive, especially when you realise that this was done in companies without ‘managers’ in the traditional sense.

We have to question the conventional ‘command and control’ management style, and consider alternative approaches if we are to move forward in Wales. Which the WMC seem to do on the surface, as stated above but by still holding on to the ‘traditional’ notion of the manager. It will take years to change if we do this and lag even further behind, making it almost impossible to survive let alone catch-up. And why should we play the game of ‘catch-up’ when its simply a matter of unlearning the traditional and moving into the new ‘enabling structures’ of complexity. This is not blatant publicity seeking, but the realisation and passion of DNA members that Wales will be great again, and will produce world leaders in business.


Just an aside Mr Ward, as I’m sure Jean will respond to your comment about Servant leadership which is 'an' approach to leadership coined and defined by Robert Greenleaf. However I'm not sure what you point is here or what Jean has misunderstood! However, the concept is thousands of years older than this or Prof Prossors work! Chanakya or Kautilya, the famous thinker from India, wrote about servant leadership in his 4th century book Arthashastra, the role of leaders as servants to the needs of others. Prof. Prossors book is excellent, and yes he is at Glamorgan. We have many debates on this matter but this is the nature of academia and intellectual debate. A core part of the DNA Wales process, but always from a research view, not just opinion.


However, welcome to DNA, Critical Management thinking and more informed debate....you never know...A "Wales Complexity Leadership Council"...

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Jean Matthews

January 24. 2008 21:52

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Hello Chris, Paul is quite right, the notion of servant leadership has been around a long time and in its original context I am sure its selfless and self-sacrificing ideals were to be celebrated. However in a business context, as I suggested the problem is whose priorities the leader will serve and thus makes an assumption that there is some consensus about priorities. In an organisation one can't help be cynical and think it may be the organisation's priorities....which to me reflects the notion of ideology

Anyhow....a core principle of servant leadership is the empowerment of staff and what I cannot grasp is why people were disempowered in the first place! It is nice to think that managers now recognise our worth in an organisation but after 25 years at the sharp end of the NHS I don't know why I suddenly need a separate leader at all....unless it's to drum home someone else's priorities

Perhaps an alternative to consider.....'emergent leadership' is both participative and democratic, where 'leaders' naturally emerge in a group by virtue of the skills, experience, group membership not because of a badge. In one context someone may take the lead and in another context they may not. Its not a formal process and membership will shift from one to another depending on circumstances. Perhaps we can discuss further at the next DNA meeting.....







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Dr Paul Thomas

January 25. 2008 09:59

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Thank you Kelly for your contribution, but defining common lanuage is not that easy as you already know.

One solution to this dilemma may well reside in how we actually understand agency, and the individual’s capacity for exercising power, notably as resistance. Which is seen for by an opposing perspective of view in the same word as ‘manager’.

To act, to be an actor, to exercise intentionality, and choose, all of which are characteristics of agency, there must be power. That is, the power to differentiate, to select. Management Identity and work is more than the overwhelming attachment of the subject to ideological language and practice, it is simultaneously the exclusion of competing possibilities, e.g. I am a man, what I am not is a woman. I am gay, what I am not is straight, I am a Christian, what I am not is a Jew. The constitution of this identity is always and inevitably invested with the power to distinguish, simply because every identity signals what it is not as much as what it is. In which case, the very ‘constitution of social identity is an act of power’ (Laclau, 1990:33), whereby the subject (individual) succeeds in affirming what they do not wish to be seen as, as well as what they purport to be. By being a manager you are not an employee. Here lies the key importance to my stance and that of Christopher.

This does not mean, however, that the individual is exercising such power from an all-knowing position. Nor that the individual has recourse to some foundational knowledge and innate understanding beyond the social. What it does mean is that the individual possesses some capacity to ‘know’ beyond the ideology, but within the limits offered them by their immediate cultural and social placing. By allowing the notion of ‘manager’ to continue, traditional or not, reinforces the notion of them and us, regardless of any good intension by WMC. Moreover, the subject is also likely to be aware that some aspects of this identity they perform, certainly the public presentations, are ultimately representative, though in the moment of their enaction it may well feel much more concrete than that. So the man that I present as me is framed and expressed, to some extent, within the social conditions which surround me and which signal how a man is; likewise to be a woman, to be a young girl, a young Black male, etc.. My performance of this representation has agentic dimensions, in so much as I have the capacity to avoid those performances which do not reinforce the validation of my identity as a manager, and express those that I consider most appropriate and representative of ‘me’. But it is not totally agentic, for there appear to reside in this process, structural properties and these have the power effect of circumscribing whom I might become.

So we are now immersed in a fine web of identification as process, wherein we attempt to understand the constitutive properties of ideological apparatus, while recognising that, in the final analysis, no two people are exactly alike. No two managers act the same nor two employee’s, but the important aspect here is not the use of the word manager, but its preserved identify and social framework which produces the ‘known’ dimension of the traditional, mechanistic, rational and reductionist. This is one of the core differences and is problematic regardless of words used.

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Dr Kelly Page

January 28. 2008 12:47

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Chris and Jean,

You probably did not see my post, as I removed it not wishing to engage in a contest of knowledge and dialogue … however let me clarify my point so it is not misrepresented …

Upon reading the previous posts, I responded curious as to our use and context of language … management, manager, to manage, to empower, employee, ‘use’ of staff and their talents etc …. but not to see ‘a’ definition or meaning each ascribes, or its removal, … for in my view this is a superfluous exercise … as is seeking a definition of servant leadership and complexity given social constructions within which meaning is embedded and the fluidity of meaning (thus why change 'Wales Management Council')... Nor do I wish on a blog to engage in a debate about the evolution of meaning we/I ascribe or the positions from which we/I reside in the development in self-identity (this is best for another time perhaps) …

I just thought to raise the question as personal reflection … that perhaps we should all … DNA, WMC, manager, academic or perhaps just individuals … agents in a system … reflect and constructively look inward with some scrutiny at our own use, context and perhaps the meaning we ascribe to certain words, the language used, symbols, behaviour etc pertaining to organisations … as these form part of the process of the evolution of discourses within which we are interconnected, of which we reflect and yes of which influences our self-identity ….

Senge (an eminent professor from MIT's Sloan School of Management) talks of ‘mental models’ in organisational learning of ‘deeply ingrained assumptions, generalizations, or even pictures and images that influence how we understand the world and how we take action’ (Senge 1990: 8). He reinforces that … mental models starts with turning the mirror inward; learning to unearth our internal pictures of the world, to bring them to the surface and hold them rigorously to scrutiny. It also includes the ability to carry on ‘learningful’ conversations that balance inquiry and advocacy, where people expose their own thinking effectively and make that thinking open to the influence of others. (Senge 1990: 9) … however this requires an environment of openness, trust and support …

For me … I feel that to embrace a discourse of which elements of that discourse – language, words, context – in which referred to or ‘of’ an employee as different to a manager, or an object to be ‘used’ or whose talents can be ‘used’ or needs ‘empowering’ or ‘trusting’ or to even differentiate and focus on and promote ‘managers’ as constraints in system evolution and sustainability (which may influence further psychological segregation) … is to perhaps risk embracing and disrespecting agents and their interconnectedness and coexistence in human social systems … and as such may perpetuate a thinking/behaviour founded in mechanistic and hierarchial ideaology …

With reference to the use of language, and metaphor and value of context … perhaps if we (agents) reflect more on our language, words, symbols, behaviours etc (as elements of social discourse), we can evolve our way of thinking … and in this evolution may transcend different behaviour … otherwise we might risk perpetuating an over attachment to the past, a competitive as opposed to cooperative dialogue and reluctance and fear to adapt and evolve …

As such I raised the question as a personal reflection … My flight is now being called and as such I will sign off and continue to ponder the work of Senge and other eminent scholars who have written of organisational learning, cognitive Systems and deep ecology ...

But I hope I have provided a little food for thought to a cooperative stance for DNA and WMC moving forward ...

Kelly

“People don't resist change. They resist being changed!” (Peter Senge)

Dr Paul Thomas

January 28. 2008 21:10

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Hello Kelly,

No I think a few of saw the comment, including myself, hence my reply above confirmation to no miss-understanding or representation.

If I could just return to the original theme of my post which is still very 'live', however before I do so, let me add that this is not a contest or personal engagement with Christopher, only the WMC and DNA for which we both represent and which can be seen in our statements, both passionate about Leadership here in Wales. Albeit from differing positions.

I agree with the comment of Senge, "deeply ingrained assumptions, generalizations", if not his work, which bytheway was ground breaking in the early 1990's and like Complexity in 2008 was dismissed but those who thought better! Its the assumption that we need managers in their traditional 'mindset' is what I am arguing against here in Wales. It is easier to remove the word manager and the "images that influence how we understand the world and how we take action" here in Wales and our companies than it is to get managers to 'unlearn' what they have done for 5, 10, 15 or more years...simple in theory, difficult in practice. Hence the work of DNA!

By opening this debate with the WMC, we are increasing our chance of co-evolving and changing Wales to a state in which humans are treated like adults, people want to go to work, where potential is maximised and passions for innovation released.

There are several error in the WMC argument against the stance of DNA, this is not personal, but expected given the lack of knowledge and understanding of CES but many, including some in the DNA network itself. All I wish is that we have an open and honest debate about this issue so that each side of the argument is seen, heard and developed. This will allow others to convince themselves that change is needed...urgently for Wales to succeed. I, nor do others in DNA wish to convince anyone. Its not our role, perhaps unlike WMC. Our role is to provide evidence that there is another way, to change the 'organisation' to a better way...whatever this is and to ensure the success of Wales in a Global market.

I will present further point to Christophers argument, but under various themes so that the themes here are not lost in the vast academic principles of each school of thought.

Hope this helps
Paul

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Dr Kelly Page

January 28. 2008 22:58

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Recently I was fortunate to engage in conversation with a really insightful individual who espoused that a message is only as profund in its ability to communicate and resonate with its audience ... be it an informed audience or not ... here lies the diffidene between communicating and languaging ...

Hence perhaps my posting above... In short ...

Is then this debate about getting rid of managers? About espousing the right type' of manager or leadership .... is there such a thing? As recently promoted in the popular press ...

OR

Is it about debating how we perceive an organisation, networks, processes and the role/labels within/where we work ... evolving to a deep ecological perspective ... and in such ... getting rid of the 'view' of manager/s as is inherent amongst many today?












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