Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 Cambridge University ◦ UK

Knowledge, Culture, Service, and “The Next” An excursion forward into neo-organizational structure J. Louis Spencer, Ph.D.

The Case for Neo-Organizational Structures— a review of present realities and literature

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

1. The industrial age is giving way to the knowledge era The era of knowledge-production and knowledge management is emerging with unparalleled significance in organizations. Facilitating learning, creative, and adaptive capacity becomes a central leader task that reflects the “dynamic relationship between the bureaucratic, administrative functions of the organization and the emergent, informal dynamics of complex adaptive systems (CAS).” (Uhl-Bien, Marion, & McKelvey, 2007, p. 298)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

2. Traditional hierarchical models do not express all there is to structure A more effective use of understanding hierarchy is to view it as supporting organizational members instead of merely commanding them. Instead of reflecting the hierarchical needs of the leader to maintain power and control, long-term viability of organizations is related to a collectively led dynamic system “where bottom-up structuration emerges.” (Osborn & Hunt, 2007, p. 319)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

3. Globally diverse organizations and cultures require a global mindset in organizational structures Antecedents of cultural diversity are a significant consideration when talking about global leadership and change (Hofstede, 2001; House et al, 2004). Leaders with a global mindset will develop forward-thinking organizational structures reflective of the ability “to influence individuals, groups, organizations, and systems that are unlike the leader’s.” (Javidan, 2007, 2008)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

4. Complex adaptive processes are emergent and interactive Organizational processes involve complex adaptive relational responses that can be depicted as interactions between interdependent people. (Stacey et al, 2000, Stacey, 2001, 2003)

Leadership in organizations considers valuable the “complex adaptive process that emerges in the interactive ‘spaces between’ people and ideas.” (Lichtenstein et al, 2006, p. 2)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

5. Flatter, more team-based structures are becoming normative Flatter, more team-based structures are replacing traditional hierarchies in organizations. (Shalley & Gilson, 2004)

“As traditional management hierarchies give way to the flatter organisational structures of the modern lean and agile companies, a new generation of leaders and new models of effective leadership have emerged to manage these organisations.” (Found & Harvey, 2007, p. 40)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

6. The current trend toward decentralization and neural networking of organizations is gaining momentum Technological advancements allow unparalleled abilities to create organizations that appear to have structure and even headship, but in reality are a neural network of individuals capable of functioning in a leadership role at any given time. (According to Brafman and Beckstrom (2006) ,“the absence of structure, leadership, and formal organization, once considered a weakness, has become a major asset” (p.7).

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

7. The role of the follower in organizations has increasing emphasis The role of followers in organizations is emerging more than ever as a singularly-valued topic in organizational leadership and coincides with the advancement and use of innovative—and flatter—organizational hierarchies. (Baker, 2007; Bennis, 2008; Lichtenstein et al, 2006)

The leader and the led are intimate allies whose structures are “built of energy and ideas, led by people who find their joy in the task at hand, while embracing each other.” (Bennis, 1999, p. 79)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

The Case for Neo-Organizational Structures—summary

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

Neo-organizational structures support: 1.  Technological capabilities for knowledge sharing 2.  More accurate representation for the way leaders and

followers actually relate within an organization 3.  The value of diverse cultures within the global

community 4.  A leadership paradigm that promotes

learning, creativity, and adaptation 5.  An enhanced interplay between

individuals, groups, and teams 6.  Greater access to power by all members of

an organization 7.  The significance of followers

Each of the summary possibilities is worthy of further discussion, since each point is the topic of continuing research, assessment and practice in organizations today. However, two complimentary considerations provide particular interest as well as impetus for this theoretical excursion into neo-organizational structure: First, organizations reflect what could be termed “Negative Hierarchy” as we consider what is “the next.” Second, a negative hierarchical structure facilitates follower empowerment and greater productivity

Several theoretical streams reflect a kind of thinking about leadership that facilitates organizational effectiveness by seeing this “negative hierarchy” as an advantage. Among those theories that reflect innovative intentionality toward followers is servant leadership (SL). SL stands out as an example of how leaders lead given the realities of a present future where organizational change and adaptation are the norm and followers are vital organizational agents. (Greenleaf, 1977, 2004; Lichtenstein et al, 2006; Osborn & Hunt, 2007)

Agapao P1 Humility P2 Altruism P3 Vision S7, B6, RS1, P4 Trust S8, B7, RS4, P5 Hope P6 Service (Servanthood) S10, B10, RS5, PW2, P8, LW9 Empowerment RS9, PW6, P7, LW4 Voluntary Subordination/Relating SJ6, LW8 Authentic Self RS2, SJ5 Covenantal Relationship SJ1 Responsible Morality SJ4 Transcendental Spirituality SJ3 Transforming Influence S5, B3, RS6, SJ2 Leading B8, RS7, PW1 Visioning PW3 Team-building PW5 Empowering others PW6 Shared decision-making PW7 Integrity RS3, PW8 Emotional Healing S3, B2, LW1 Creating Value for the Community LW2 Conceptual Skills S6, B4, LW3 Helping Employees/subordinates Grow/ Succeed S9, B5, RS8, PW4, LW5 Putting Employees/subordinates First LW6 Behaving Ethically LW7 Altruistic Calling BW11 Wisdom Persuasive Mapping S5, B3 Organizational Stewardship S8

B: Bennett BW: Barbuto & Wheeler LW: Liden et al P: Patterson PW: Page & Wong RS: Russell & Stone S: Spears SJ: Sendjaya

As promised, this is only an excursion. And now it is time to come toward home . . .

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

Requirements for the Use of Neo-Organizational Structures

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

1.  Structures should be made to serve the organization and its members, not the other way around (yes, neo-organizational structures can be based on traditional hierarchical models)

2.  More effective communication within the organization facilitates greater learning, innovation, and adaptability.

3.  You must have the right people to make it work •  Greater collaborative will and skill. •  Integration of leadership roles that embrace adaptability,

enabling, and learning •  Leaders who are intentionally follower-friendly, follower-

empowering, and follower-serving.

4.  Look to where other areas of leadership theory—even drawing from either diverse or traditional models—are justifiably applicable.

Considerations when Transitioning to Neo-Organizational Structures (Winston, 2007)

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

! The organization has to know who it is and whether or why it wants to remain who it is. ! The organization has to confirm that it lives what it says it is (alignment of espoused versus practiced values). ! The organization then has to seek people who have the same values (values alignment).

! The organization has to indoctrinate members into the methods by which they live out the values.

! The organization then has to help members see how the individual's vision fits in the overall organizational vision (should not be difficult if the values alignment is there). ! Then, the chosen model of leadership sets the stage for the how, what, when, where.

Some concluding words about neo-organizational structures

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

•  Effective/productive organizations will press into “the next” by utilizing ever-increasing technological capability and connectivity to knowledge and people along with an embracing, non-judgmental world mindset toward extremely diversified cultures.

Som

e c

onc

lud

ing

wor

ds:

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

•  Effective leaders will reemphasize the truth that people were not made for organizations, but that organizations were made to facilitate service for the fulfilling of the destiny of the people.

Som

e c

onc

lud

ing

wor

ds:

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

•  Servant leaders—those who empower through intentional and creative sacrifice for the people who comprise the organization—will navigate “the next” with by inspiring a sprawling team of emergent leader-followers whose sense of commitment and dedication to the vision of the organization is experienced as a by-product of living meaningfully.

Som

e c

onc

lud

ing

wor

ds:

This excursion forward with life and work, as unpredictable as “the next” can be, will find servant leaders filled with an emergent living reality that is not only being experienced personally, but is also being productively replicated through fellow servant-leaders.

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 Cambridge University ◦ UK

Effective and Productive Organizations Beware: The cases of In-N-Out and Benny Goodman

Effective and Productive Organizations Beware: The cases of In-N-Out and Benny Goodman

Existing profitable organizations beware about changing organizational philosophies and paradigms if what you presently do—albeit appearing as old theory and highly hierarchical—still produces the best at what it does. By changing your structure merely for the sake of wanting to become current could destroy your ability to be effective at what you do. Embracing SL characteristics as a leader may enhance the sense of empowerment and support of followers in an organization, but it may not mean that changing the organizational structure to a negative hierarchy is appropriate.

-istics as a leader may enhance the sense of empowerment and support of followers in an organization, but it may not mean that changing the organizational structure to a negative hierarchy is appropriate.

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

Once you are what you are, you can enhance skills and even do some makeovers, but changing your DNA can be hazardous. In the case of In-N-Out Burger, they are world-renown for their product. They also have a centralized hierarchy. This, admittedly, sounds controlling—and it is—but the product is consistently the best in town and the service is always excellent. What In-N-Out did to maintain a controlling hierarchy, yet remain extremely desirable to food service employees is by extending bonuses, providing the best pay in the industry (numerous In-N-Out managers make 6 figures), and providing upward mobility opportunities. Given these factors, do not expect them to find a need to change. Whether franchise or company owned, excellence can be achieved with the right combination of organizational theory coupled with getting the right people on the bus (Collins, 2001). C

ase

: In-

N-O

ut B

urg

er:

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 ◦ Cambridge University ◦ UK

An example where a change in “operational DNA” contributed to decline instead of advancement involves famous popular clarinetist Benny Goodman. A contemporary of Goodman’s was the famous British classical clarinetist Reginald Kell, whose outstanding tone and use of vibrato were world renown during a great part of the mid-twentieth century. Goodman came to Reginald Kell after Goodman was already famous and asked for help with his tone quality. Kell introduced Goodman to the double-lipped method of playing the clarinet, thus—according to Kell (personal communication, Fall 1969)—contributed to the ruination of Goodman’s career because of the new sweetness of tone. The old adage sometimes applies: “If it ain’t broke, don’t fix it.”

Cas

e: B

enn

y G

ood

man

Identifying what could be termed as “improved or theoretically innovative” organizational structures does not mean that all is for all, but rather allows greater enablement to make informed decisions about what is most appropriate for the organizations we lead (and serve).

Eighth International Conference on Knowledge, Culture and Change in Organizations 5-8 August 2008 Cambridge University ◦ UK

Knowledge, Culture, Service, and “The Next” An excursion forward into neo-organizational structure J. Louis Spencer, Ph.D.