Distributing Decision Rights, Management and Leadership

A life science of management and leadership exposes the obsolete industrial age Taylor paradigm that still to this day is limiting so much individual and organizational performance. The Taylor model is based on Descartes’ 400 year old clockwork universe and does not  integrate new science discoveries of the last 100 years, especially quantum mechanics and complexity science. By recasting organizations as  living, complex-adaptive systems, an organization’s full capacity for Superperformance can finally be unleashed.

The traditional view of organization—woven together through a systematic framework of production, decision support,  knowledge, and information systems— is based on the model of a well-oiled machine engineered to deliver maximum performance derived from pre-defined parameters and specifications. This industrial age model considers performance a derivative of external controls defined by the designers of organizational systems. They have given only marginal importance to the self-adaptive and emergent nature of organizational systems and the dynamic environments they inhabit. In other words, they are still far from operating with an immune system of distributed decision rights and with management and leadership capacity distributed everywhere, to the very edge of organizations. These bottom-up, agile characteristics of living, complex adaptive systems are precisely what is needed during times of rapid changing operating and knowledge environments, such as those that exist today.

Nested Hierarchies are Natural

From Organism View the self-referencing fractal pattern of system inside of system is apparent. The parts and their environments are continually co-evolving. From this view there is perfect parallel between organization and organism, which present as a set of nested structures, each inside of the next, like Russian dolls.

Organization                                 Organism

Economy                                             Ecosystem
↓
Industry                                              Species
↓
Organization                                       Organism
↓
Function                                              Organ
↓
Department                                         Tissue
↓
Work Team                                        Cell
↓
Individual                                           Organelle

From Organism View the entire global economy can be seen as a gigantic ecology of interdependent and continually interacting (work) cells, organs, and organizations engaged in the production, buying and selling of goods and services. And like any ecology it is self-organizing, not centrally controlled or coordinated.

Regardless of scale or level of complexity, there is a corresponding compartment at every tier of the organization/organism hierarchy. This is not just a novel coincidence—it is the natural expression of order that pervades all of life, from ecosystem to economy. It is simply the most efficient way to organize.

In fact, throughout the entire text of  Darwin’s Origin of Species, the only illustration called for was the picture of a nested hierarchy.

Nested Hierarchy from Darwin's Origin of Species

At the launch of The Superperforming CEO Book Tour & Seminar in Houston last week, Superperforming CEO George Martinez,  in “An Uncommon View” and Complexity Guru Chris Welsh in “Escape from Flatland” both shared brilliant illustrations about the experience of a paradigm shift.  Both referred to Superperformance as the discovery of a true advance in contemporary business thinking and optimization practice.

Coincidentally stumbled upon this article which furthers the story of Galileo’s invention of the telescope and its groundbreaking implications.

http://bit.ly/3pZ2mK

In the same way, the view of organization as organism (not machine) supplants the century-old Taylor model and points to the incontrovertible need for a new guiding science for organizations – we need a life science not a machine science – it must be a science of management and leadership together.  The new biophysics of optimization – Superperformance science – weds biology and physics (nonequilibrium thermodynamics) to inform the transformation of flow and the emergence of culture.

The article includes a wonderful quote by physics pioneer Max Plank, “”A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die.”

The new optimization science of management & leadership – of complementarity – control  & liberation, will surely become implicit knowledge one day.

Dave Guerra’s post in response to Chinese Scholar Sheng Zhao query on the Leadership Scholars Network, from the Academy of Management Listserve.

Sheng Zhao: “I am curious about emergence of leadership studies in the US. Looking back on the history, managers and management are the focal topics, but about two decades ago (as far as I know), leaders and leadership began to come into the front stage. What is the reason for the trend? Is it that management studies reach its end of the rope?  Or the social, technological and economical changes bewilder us and we need more direction (which way to go) than management?”

Dave Guerra: “In my opinion it all has to do with the growing revelation that what we losing our mechanistic tethering and moving toward an organic one. Organizations are alive, and as I shared with a young Chinese doctoral student, all of management and even mechanistically-based leadership theory are headed back to the future – to Bohr’s complementarity principle – to Yin and Yang. Our newtonian models have failed us – on the whole management science, much less practice, has been slow to adopt the major scientific discoveries of the last century, especially the last forty or so years. If quantum mechanics and nonequilibrium thermodynamics are true, then we should be able to appreciate them in a most ordinary and self-evident way.

After a life’s work of practical inquiry in the field, it has been my shocking discovery that there is indeed a pattern of harnessing opposites, tangible and intangible, that is the sweet spot of optimization. This is why servant leadership is the only leadership that works – because of the emergence of intrinsic motivation that it provokes – but it is also true that the control of outcomes – through statistical predictability, to quote Deming, is the only management that works – process management, that is. To my mind, if this is true, then there must be some underlying first order principle, some natural law, that is at work here. There is. It is the principle of complementarity, and it tells me we need a life science not a machine science to guide the next generation of organizational theory and practice.

Hence the current rage in leadership studies makes perfect sense, given the actual coming of age of Drucker’s knowledge economy, but my prediction is that ultimately we will find the truth is in the middle. Management and leadership must be treated as equivalent and complementary hemispheres, not separate and distinct provinces. They need eachother for completion. As Deming put it, “To manage, one must lead.”

So hence my message to my young Chinese inquisitor about “management and leadership” in the west, look backwards, from whence you came, to the harmony of yin and yang, because that is where we are headed. That’s my opinion and why ‘complexity leadership’ and ‘biology management’ are the best lens to inform us.

This is very exciting and in my experience at the front, very new.”

Dave Guerra

Sheng Zhao: “I admire greatly that a westerner can understand Yin Yan, and connect it with complexity. In fact many Chinese do not understand the deep meaning of Yin Yan. I find complexity, Yin Yan, and Budhism devle into a  similar worldview in the deep. I raised the question why the leadership studies rise in the US is out of my curiosity that the management studies in China are moving from leadership focus to manager focus, countering US’ trend.  I want to find out why they evolve differently.

Thank you for your insightful comments, and others for their contribution. All the questions, ideas, and opinions on the list help a little brain on the other side of the earth to vibrate more reasonably.”

Sheng Zhao

Yes the evidence is that Superperformance  is available to all. But today’s lingering, strictly mechanistic models of management and leadership only take things further in the wrong direction. New knowledge and methods are needed to transcend these caveman paradigms.

Superperformance is a next-generation performance optimization approach that turns conventional wisdom on its ear.

It introduces a new category. As a group, organizational Superperformers outperform the S&P 500 by a margin of almost 5 to 1. They dominate their industries, produce a steady stream of breakthrough operating results, reach coveted levels of customer delight, and are able to continually accelerate and make responsive every aspect of their operations–over exceedingly long periods.

These organizations share the same remarkable traits.

• They all prove the Superperformance Formula (PxC=SP) and harness the same natural laws.
• They all outperform their industry peers over exceedingly long periods.
• They all are led by Superperforming CEOs, who are true servant leaders.

This exciting new approach can be applied to transform performance on any scale in any organization. Superperformance directly challenges prevailing leadership and management paradigms–and rewires many traditional assumptions about organizations and how they operate.

We urgently need to transcend obsolete management practices and operating models and recast organizations as living, complex-adaptive systems–and performance as their emergent fruit. There are numerous real life examples of Superperformance- that when examined as a group -reveal an entirely new understanding of organizations and their hidden potential.

The evidence pulls back the skin of a new life science and  introduces a new biophysics of optimization.

1 Simple Formula, 8 Simple Rules, One Billion Great Results

In this groundbreaking new book, Dave Guerra proposes a stunningly simple way through today’s complex world of work, introducing us to a new management science, showing how Superperformance springs from the intersection of an organization’s process and its passion. Guerra proposes a simple formula:

Process x Culture = Superperformance.

This book is about the phenomenal year-after-year success of companies who consistently apply this formula. It is about the simple rules that have enabled companies like Toyota, Southwest Airlines, Microsoft, Harley Davidson and others to achieve and sustain super results year after year.