Adizes driving changes pdf. Change Management: How to make better decisions and ensure they are implemented. Organization life cycle

01.11.2019

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1 Itzhak K. Adizes Managing change I. Azides. Leading change: Peter; St. Petersburg; 2012 ISBN Original: IchakAdizes, Mastering Change The Power of Mutual Trust and Respect in Personal Life, Family Life, Business and Society Abstract Mastering Change is about the processes of acceptance management decisions. The problems that arise as a result of ongoing changes are quite predictable and solvable I. Adizes clearly shows how to effectively resolve situations related to the creation of a workable team, a clash of interests, the receipt of constructive proposals, disrespect for other people's opinions, mutual distrust of the participants in the ongoing change. The author examines the processes of management and decision-making through the prism national characteristics in one country or another. In this, his theory compares favorably with most modern management theories based on American business experience. I. Adizes analyzes the cause-and-effect relationships, specifics and mentality of various national groups through a serious study of the business cultures of various peoples. Another important feature of this book is that it is written in the form of a dialogue between a "guru" and his imaginary follower. Brilliant and aphoristic explanations by I. Adizes, based on a thorough knowledge of the subject and mass real examples from life, allow the reader to easily master the essence of his methodology. The book will be of interest not only to teachers and students, but, first of all, to practicing businessmen and consultants. In it you will find many valuable recommendations and generalizations, unexpected approaches to well-known problems, as well as tools for analyzing current business problems. The CD is included with the printed edition only.

2 Contents Registered Trademark Terms 5 Adizes Institute Science Editor's Foreword 6 Feedback on Adizes Methodology 8 About the Author 10 Acknowledgments 11 Conversation One 13 Traditional Management Theory 14 Functional Perspective 17 Conversation Two 22 The Four Roles of Decision Making 24 Short-term and Long-Term Effectiveness 26 Conversation third 36 Long-term efficiency 40 Long-term productivity 43 Mechanistic or organic consciousness? 46 Summary 50 Conversation Four 52 Conversation Five 66 (P): Lonely Cowboy 67 (-A): Bureaucrat 71 (E-): Pyro 74 (I): Superfollower 78 Conversation Six 80 (): Dead Wood 81 Conversation Seven 93 Conversation Eight 109 Problem 115 Pre-Problem 118 Preliminary Pre-Problem 122 Conversation Nine 127 Conversation Ten 136 Common Denominator of Success 140 Conversation Eleven 152 Conversation Twelfth 159 Conversation Thirteen 171 Conversation Fourteen 179 Summary

4 Terms that are registered trademarks Adizes Institute Adizes Capi (EI) Structure Founder s Trap Go-Go Insultant Opporthreat PAEI POC Symbergist Syndag Synerteam See the text of this and other books by I. Adizes for the interpretation of these terms. 5

5 Foreword by the scientific editor Dear reader! The book you are holding in your hands is written by Dr. Yitzhak Adizes, the famous "guru" of management theory. A few years ago, this name in Russia was known only in narrow scientific circles; it was referred to in dissertations and scientific articles. But in most cases, these were links to a link, since the books of I. Adizes were practically inaccessible in the original, and Russian translations did not exist. But over the past two years, the situation has changed dramatically: several of his books have already been published in Russian; his articles and interviews often appear on the pages of domestic business and scientific periodicals; from time to time Dr. Adizes gives lectures in Russia. In many ways, these positive changes have occurred due to the efforts of the Institute of Business and Business Administration of the Academy of National Economy under the Government of the Russian Federation, where he is a scientific consultant, and his applied management theory, known throughout the world as the "Adizes methodology", is the basis of our training programs. In all his monographs (and there are already more than twenty of them), Dr. Adizes considers the development of organizations and their behavior within the life cycle, leadership problems, change management, management styles. Thanks to the unique methodology of Adizes, all these elements of management theory not only received a new scientific sound, but also began to be used in practice to solve the most complex management problems. What is the essence of this methodology? If we try to define it briefly, then two concepts of analysis and synthesis are quite sufficient for this. Any community, be it a company, a family or a country as a whole, is a living organism that has its own life cycle. They are born, grow, reach their peak, eventually enter the stage of decline and die. This is a classic life cycle curve where only the first and last stages are the same. The set of all other stages and their sequence is idiosyncrasy each organization, its management system. Therefore, the ability to effectively solve problems that constantly arise in the organization comes to the fore. To do this, it is necessary to constantly analyze the situation in which the company is located, revealing what is “normal” and what is “abnormal” at this stage of the life cycle. The effectiveness of the decisions made depends entirely on how fully the features of managing the organization at various phases of the life cycle are taken into account. A detailed analysis of all stages of the life cycle is devoted to the fundamental monograph by Yitzhak Adizes "Corporate Life Cycle Management" (Peter, 2007). At the same time, any management process is a relationship between people. Three remarks must be made here. First, everyone is different. Second: ideal people (including leaders) do not exist; everyone has their own strengths and weaknesses. Third, change is a constant factor in any activity. These three conceptual remarks form the foundational part of the Adizes methodology. The book "Managing Change" is devoted to the consideration of managerial decision-making processes. The problems that arise as a result of ongoing changes are quite predictable. To make quality decisions, you need to create a balanced and efficient complementary team of managers. However, any team is a clash of different interests, styles of thinking and behavior. Therefore, conflict is inevitable, but it is very important that it be constructive so that the parties hear each other and take advantage of their differences. And such a situation is possible only if

6 tea when people trust, when they respect each other. It would seem that these are absolutely abstract concepts that are difficult to apply in a real decision-making process. But it's not. The essence of trust is that, while diverging in particulars, the team is united in their strategic interests. And respect for someone else's opinion, even if it is different from yours, allows you to take into account all the nuances and make a quality management decision. Therefore, an effective manager gathers around him people with different styles of behavior, whom he respects and trusts, as they are united by common strategic interests. I would like to note an important feature of the Adizes methodology, which is most clearly manifested in this book. The vast majority of modern management theories are based on the American experience of doing business and rely on the Anglo-Saxon model of behavior. But the modern world is diverse, and standard methods and techniques are by no means always applicable and effective in different regions. That is why the theory of Adizes compares favorably with all the others, since the author considers the processes of management and decision-making through the prism of national characteristics in a particular country. He is always trying to understand the cause-and-effect relationships, specifics and mentality of various national groups through a serious study of the business cultures of various peoples. It should be noted that this book is written in the form of a dialogue between a "guru" and his imaginary follower. Brilliant and aphoristic explanations of Adizes, based on a thorough knowledge of the subject and a lot of real life examples, allow the reader to better understand the essence of his methodology. I am sure that this book will be of interest not only to teachers and students, but primarily to practicing businessmen and consultants. In it you will find many valuable recommendations and generalizations, unexpected approaches to well-known problems, as well as a tool methodology for analyzing current business problems. Good luck, dear reader! Ashot Seferyan, PhD in Sociology, Director of the Executive MBA Program at the Institute of Business and Business Administration of the Academy of National Economy under the Government of the Russian Federation 7

7 Feedback on the Adizes Methodology When we first heard about Yitzhak Adizes from the presidents of the most different companies people we knew and respected, these people simply said that he was part of a new tribe of management consultants, someone who really understood how the business worked and what needed to be done to make it even better. In fact, Adizes is more than just a consultant. He is a pioneer in the field of management, a serious, insightful and skilled observer of organizational behavior, which he has been studying for over 25 years. Magazine «The Editors of Inc.» Last year, we increased sales by 70%, reduced operating costs, increased profitability and significantly improved the climate in our organization. In many ways, these results were achieved through the use of the Adizes methodology. Donald Boroyan, president of Francorp, Inc. Mutual respect and enthusiasm have reached unprecedented levels in our company. Adizes has given us the means and the impetus to involve all employees in the management of the company. There is no doubt that the changes in the internal climate turned out to be incredible ... his method allows you to get from everyone the contribution that he is able to make to the success of the common cause. Frank Chamberlain, President of Porter Paint Company Corporation, like people, exhibit different qualities at different periods of life. Dr. Adizes describes these steps in a way that no one has done before; it provides you with opportunities to better understand your corporation, which allows you to become immeasurably wiser. William Farley, Chairman of the Board of Farley Industries With Yitzhak Adizes, we explored our management structure in order to find ways to give it more focus and definition, and as a result, charted our organizational structure... It was a real success! At first we were skeptical, but at the end of the work we were indescribably delighted. We have been able to achieve a high degree of focus and significantly increase individual and collective responsibility. Ernest Fleishman, Vice President and CEO of the Los Angeles Philharmonic The Adizes methodology has helped us solve many structural and functional problems. I am sure that today it is the most advanced management methodology in the world. P. N. Gerolimatos, President P. N. Gerilymatos S. A., Greece Adizes helped us start thinking as a single corporation. Previously, each of us acted only as a representative of his unit. Fernando Hilsenbeck, Vice President of Villares Industries, Brazil Adizes simplified management theory. His message is clear and concise. As with the books of Peter Drucker, the more 8

The 8 hours you invest in reading Managing Change, the higher the return on your investment. George Landgrebe, President and CEO of American Banker/Bond Buyer Itzhak Adizes is a true management guru, and his ideas are applicable both in his personal life and in the management of companies. In his book you will get acquainted, as I did, with the advantages of a complete balanced theory that can be successfully applied in Everyday life. Harvey McKay, best-selling author of How to Swim with the Sharks and Not Get Eaten Adizes is one of the few management consultants who has managed to turn a set of theoretical concepts into extremely actionable practical guidance for managers. Even more impressive is that he integrated these principles into a comprehensive management system. In addition, this tremendous work was carried out using the concept of the life cycle, which is aimed at a common source of difficulties that many managers face. William Newman, Columbia University Graduate School of Business Professor Emeritus Not only does Dr. Adizes' methodology provide an exceptionally powerful tool for building a functionally effective organizational structure, his approach enables functional change in an environment of improved morale in your organization. Lauren Rothschild, president of American Protection Industries, Inc. The Adizes Leadership Development Program helped me learn new effective ways making difficult managerial decisions. Lee Ruwich, Publisher, Miami Review The experience has been overwhelmingly positive. People attending different stages of the program are convinced that the methodology is very useful and that the time spent on mastering it will pay off handsomely. Program participants become more confident in the future of their companies. In the process of training, we develop inner self-confidence and inner trust. People are becoming calmer and better prepared for the future. Paulo Villares, President and CEO of Villares Industries, Brazil Reading and re-reading Adizes stimulates not only my innovative thinking, but also my effective actions. How unusual is his common-sense approach to considering difficult situations! Kirby Warren Professor at Columbia University School of Business 9

9 About the Author Dr. Itzhak Calderon Adizes is the founder and director of the Adizes Institute in Los Angeles, California, and the head of Adizes Graduate School for the Study of Change and Leadership, affiliated to the institute. Since 1975, he has been developing a diagnostic and therapeutic methodology for the implementation organizational change, now known worldwide as the "Adizes methodology". Yitzhak Adizes applies his methodology in a wide variety of organizations with between 30,000 and 150,000 employees. His organizational therapy methods have helped commercial and non-profit organizations in the USA, Canada, Sweden, Denmark, Iceland, Norway, Finland, France, Germany, Switzerland, Russia, Yugoslavia, Holland, Belgium, Austria, India, China, Israel more than 40 countries to achieve high results and take a leading position in industries ranging from banking to food supplies. This methodology is described in many textbooks and recorded by the author on audio and video cassettes. Today, more than 1,000 companies around the world use the Adizes methodology and more than 200 Adizes Institute graduates serve organizations around the world. Yitzhak Adizes lectures in four languages: English, Serbo-Croatian, Hebrew and Spanish. Being an excellent speaker, he has repeatedly been the keynote speaker at numerous professional conferences and congresses and has spoken to corporate leaders in more than 35 countries around the world, including Russia. Personally advised the presidents and prime ministers of Ghana, Macedonia, Greece, Sweden, Israel, Mexico, Brazil. Dr. Adizes' articles are published in such well-known publications as Fortune, Business Week, New York Times, London Financial Times, and his speeches are broadcast by many television and radio stations. Dr. Adizes, whose work has been translated into 30 languages, is the author of over a dozen books, including Industrial Democracy, How to Solve the Mismanagement Crisis, Corporate Lifecycles, Mastering Change, Pursuit of Prime, and more, as well as many articles in newspapers and magazines. He teaches at the Anderson Graduate School of Management at the University of California (UCLA) and is also a visiting professor at Stanford University, Tel Aviv University, and Hebrew University in Jerusalem. Lives in Santa Barbara, California and Kaesaria, Israel with his wife Nurit and six children. ten

10 Acknowledgments The list of contributors to this book will be quite long. I lectured on the material presented in the book for twenty-five years. I started with a small, simple model, and then gradually developed it as people got to know it and made their comments. 1 Someone disagreed with her and enriched me with their critical arguments. Someone helped visualize my ideas and offered me their real stories , jokes, anecdotes and even cartoons. Over time, I realized that what I talked about in my lectures on organizations applies to my personal life as well. When I was invited to speak to heads of state and ministers, the applicability of these ideas to socio-political problems also became apparent. So who should I thank? Who should start with? Some people stand out here. First of all, these are my parents, who, thanks to their Sephardic wisdom, managed to teach me a lot. In addition to my parents, I must name Mr. Vukadinovic, my first teacher in Belgrade, who taught me a lesson that I will never forget. I was an eight-year-old child at the time, miraculously surviving the fires of the Holocaust, in which half of my family perished. I was timid and shy. Another child in our class constantly publicly insulted me with his anti-Semitic remarks. Mr. Vukadinovic put us both in front of the class and told us about the brotherhood of people, that we all look the same, but at the same time we can enjoy our uniqueness. He talked about trust and respect. He put us in the same school until the end of the year, and my enemy became one of my best friends, with whom I still have excellent relations. Next, I want to thank Yehuda Erel, one of the leaders of the Israeli youth movement Noar La Noar. I came to Israel after the end of the Second World War, wanting to find my home there, but at the same time I was afraid of being rejected. He helped me find my roots and a sense of belonging to a new society, teaching me how to help those who were less fortunate than me. Then came the years of study in the United States. Professor William Newman of Columbia University taught me the theory of management, but more importantly, he did so using his open worldview and practical vision of the management process, which I also try to emulate in my intellectual life. Finally, over the course of three years, I gained valuable insights from my friend Amrit Desai (also known as Gurudev), spiritual leader and founder of the Kripalu Center in Lenox, Massachusetts. From him I learned a lot about love, about harmony, about integration with the world around us. I can't help but mention Rosemary Sostaric, Adrienne Denny, Elspeth McHattie, Charles Mark, Bill Chickering, Michael Leim and Denise Rice. Each of you has contributed to the preparation of this book for publication. Thank you from the bottom of my heart. To each of my teachers, colleagues and students, I express my most sincere appreciation and gratitude. Itzhak Calderon Adizes, Ph. D. Santa Monica, CA, 1 Ichak Adizes, "Beyond The Peter Principle", manuscript, UCLA Graduate School of Management. Later published as "Mismanagement Styles", California Management Review 19: 5 20 (Winter 1976); later expanded and published as How To Solve The Mismanagement Crisis (Dow Jones/Irwin, 1979, Santa Monica: Adizes Institute, 1980); later formed the basis for Corporate Lifestyles: How And Why Corporations Grow And Die and What To Do About It (Englewood Cliffs: Prentice Hall, 1988). eleven

12 Conversation One The Meaning of Management One day I was talking to one of my students. He was an intelligent and inquisitive young man. He wanted to find out what my special knowledge of management gave me the opportunity to teach and lecture around the world. So he asked if I would have time to talk to him about this subject. I liked his curiosity and agreed to answer his questions. As we walked through the park with him, exchanging questions and answers, the concept of this book gradually formed in my head. I know that you have been studying management processes for over twenty years. What is it? First of all, we need to define what the word "manage" means. thirteen

13 Traditional Management Theory I have found that in some languages, such as Swedish, French, and Serbo-Croatian, the verb to manage does not have a literal translation. In these languages, verbs such as "direct", "lead" or "order" are more commonly used instead. When people who speak these languages want to say what Americans mean by using the verb to manage, they usually also use that English word. For example, in Spanish the verb manejar, the literal translation to manage, is closer in meaning to the verb to handle (“handle something, manage something”) and is used only in relation to horses or cars. When the Spaniards want to use a word that is close to the word to manage in the American sense, they say "manage" or "do business." But isn't the management process universal? No. In some countries, the process of management, as it is carried out in the United States and taught in American business schools, is prohibited by law. In the system of "self-government" in the former Yugoslavia, the head of an enterprise who made a business decision unilaterally could end up in court. Such an action would be interpreted as a violation of democracy. Instead, the director of the enterprise had to "propose" a solution, and the workers could accept or reject it. In Israel, the head of the kibbutz, who actually holds the position of manager, is regularly re-elected so that no one person can claim permanent leadership of other people. Are you saying that the head of the kibbutz leads the people for a while, and then returns to the farm to milk the cows? Or cooking, or washing dishes. In this organization, not a single leader is elected forever, just as the government is not elected forever in democratic countries. Otherwise it would violate the principles of democracy. The head of a kibbutz is not a profession. What should be understood by the word “to manage” if in some languages it does not have a direct translation, and in some socio-political systems the activity it denotes is considered unnecessary or even banned? What synonyms would you suggest? Decide, act, plan, control, organize, dominate, achieve goals, lead, motivate, complete ... Some dictionaries offer the same synonyms for the word "manage" as you do. But there are also other intriguing synonyms, such as dominate or rule, which are given in the American Collegiate Dictionary. The Oxford Dictionary adds the verbs "manipulate" and "indulge" to this list. It is interesting to note that none of the dictionaries I looked at listed the verbs “lead” or “motivate” as synonyms. I don't like the synonyms of "indulge" or "manipulate". And there is a good reason for this. To understand what it is, let's define the "common denominator" of all the synonyms mentioned above, with the exception of "lead" and "manipulate". Imagine the process described by each of these words. Animate their meaning. Can you now determine the common denominator? Act... plan... control... organize... achieve... complete. fourteen

14 They all describe a one-way process. The one who leads tells those whom he leads what they should do. The manager determines what needs to be done, and his subordinates become the instruments to achieve the goal. That's why we call the manager the "head" of the department, and his most capable subordinate his "right hand." The right hand does exactly what the head tells it to do, while the left hand behaves as if it could act on its own. Her behavior is not completely controlled. But managers are also called supervisors. Because the supervisor is supposed to have "superior vision" (literally superior vision). Look at the insignia of American officers. The way these signs change as they rise military rank, can be compared to climbing a tree and then taking off into the sky. Lieutenants have "sticks" that are associated with tree branches. The captain already has two wands, located on the tree of the military hierarchy above the wands of the lieutenants. The major has a leaf as its insignia, which represents the top of the tree. The colonel soars in the sky like an eagle, and the general has stars as insignia. The higher a person rises in the organizational hierarchy, the better his vision should be. The disadvantage of such a philosophy is that it diminishes the role of subordinates. The lower they are in the tree, the less they can see and the less they are allowed to know. Understand the meaning of the word "subordinate". It refers to people who are under someone's control. If the manager belongs to the highest category, then does this mean that ordinary personnel should be attributed to a lower category? The Hebrew word for “subordinates” literally means “bending under force,” as if these people always acted in accordance with the instructions of their leader. Not much fun. This is true because the process of management, as it is taught as an academic discipline or practiced, is not free from value judgments. It is not only a science and art, but also an expression of social and political values. This is a political process that carries a certain value load. But we put aside the consideration of the verbs "to force" and "motivate". Don't these synonyms free the management process from what it associates with hierarchy and one-way traffic? What is the meaning of the words "force" and "motivate" in this context? Don't they imply that, as a manager or leader, I need to know what I want my subordinates to do? The problem is finding a way to get and motivate people to do what I want them to do. If I can't control them, then maybe I can motivate them. What does this remind you of? Manipulation. Quite right! A New Yorker cartoon comes to mind. A woman, a psychologist by profession, is trying to persuade her son to take out the trash. Tired of her speeches, the boy says, “Oh, ok. I'll take out the trash, but please don't take me 15

15 motivate!” Even a child sees signs of manipulation in motivation. What he must do has already been decided. The only question is how to make him do it. Is it any wonder that unions often oppose expansion and diversification programs that management uses to motivate workers? The unions see these programs as nothing more than a cunning ploy aimed at increasing productivity and profitability of production in the interests of the administration. The only benefit to workers is that by participating in these programs they can keep their jobs. The same hidden effect of manipulation is present in the verb "force". If you delve deeper into the essence of some leadership theories, it becomes clear that they see leadership as a process of making decisions not about what needs to be done and why, but about how to get followers to follow the leaders. Should the leader direct the actions of his followers or discuss with them the decisions to be made? This may look like manipulation, since the leader is not required to care about what his followers really need. In some industries, the word "management" has become almost a dirty word. In the United States, the humanities often use it as a synonym for exploitation. What do you propose? sixteen

16 Functional point of view We need to understand the role of management in terms of the function it performs: why do we need it? And this function should be free from value judgments, from any socio-political or cultural prejudices. It should be the same whether we manage ourselves, our family, our business, non-profit organization or country. Regardless of whether it is about business management, parenting or government, conceptually it should be the same process. The only difference will be in the size and nature of the unit being managed. This sounds promising. In what direction are we going? Do you agree that change is permanent? The process has been going on since the beginning of time on Earth and will continue forever. The world is undergoing physical, social and economic changes. Even you have changed in the last minute. Change is happening all the time. Indeed? And change creates problems. Undoubtedly. And problems need solutions. I agree. And decisions cause even more change. We can represent this sequence with the following diagram: So, if changes remain, what else should remain? Problems. And the greater the scale and speed of change, the more numerous and complex will be the problems we will face. People should not think that they constantly have to solve all possible problems. When the complex of some problems is solved, it will be replaced by a new one. We will stop having problems only when there is no change at all, and this will happen only when we... We die. Right! To live means to solve problems, and to develop means to acquire the skills to solve increasingly complex problems. 17

17 The purpose of management, leadership, education or government is: to solve today's problems and to prepare for the problems that will arise tomorrow. This is necessary because the world is constantly changing. No management is required where there are no problems, and we will have no problems only when we are dead. To manage is to be alive, and to be alive is to face change and the problems it creates. How do we manage change? I believe that change management consists of two processes. First you decide what to do, and then... You must implement your decisions. Exactly. Both processes are necessary for successful management, and their joint use is a sufficient condition for obtaining the desired result. Therefore, our scheme of the management process will look like this: And these processes are free from value judgments. You can use them to control anything from the underworld to the society of saints. Whenever there is a change, you must make decisions and then put them into practice. But are both factors really necessary? Some people hate making decisions. This process is too painful for them. Do they have to decide something? Refusing or dodging a decision is also a decision. Such people must understand that whenever there is a change, they must make a decision, otherwise the change itself will de facto make the decision for them. But although decision-making is necessary, it is not sufficient. The decision made must be put into practice. Successful management requires both making the right decisions and effectively implementing them. You cannot provide good governance if you are good at bad decisions and bad at good ones. Wait a minute! Why is the implementation considered in isolation? Shouldn't she naturally follow a good decision? In fact, a decision is not good if it does not contain a plan for its implementation. Thus, all that is needed for management is to make excellent decisions. Dot. But it's not that easy. Take a look at your own life. How many decisions you made have remained unfulfilled? Even if you sat down at the table and were 18

18 an exact list of everything to do, you still did not provide the implementation of the solution with this. Do you smoke? Or are you overeating? Since both are unhealthy, you may have already made the decision to give up these habits. However, it is possible that you continue to behave as before, despite the presence detailed plan making changes. Are you saying that I have no control over my lifestyle? Isn't that right? Have you really implemented all of your decisions to bring about change? No, not all. I'm still trying to lose a few extra pounds. I made the decision to change my diet many times, but never went through with it. This makes me sad. The same can be said for almost any organization. Management may decide to change course, markets, product line, or company culture. However, such changes are very difficult to implement. A similar picture is observed in the governance of states. Many leaders of countries, even dictators, complain that their decisions to bring about change are not being implemented in practice. For example, Hitler was unable to enforce his decision to burn all German cities that lay in the path of the advancing Allied forces. This decision remained on paper, although Hitler could execute anyone who openly dared to disobey any of his orders. Both decision making and decision implementation are necessary in order to cope with change, and both factors are sufficient. If I want to solve problems and ensure successful management of my personal life, career development, family relationships, organization or country, then I must make the right decisions, and then achieve their productive implementation. To be sure, and your experience with changing the power system shows that the quality of a solution can neither predict nor guarantee the likelihood of its successful implementation. Some of the most outstanding change decisions went unrealized, and some bad decisions, such as continuing to smoke or eating unhealthy foods, came to fruition very quickly. If you follow instructions on how to make good decisions, those instructions will weaken your efforts to implement decisions productively. And if you follow instructions for productive implementation, they will weaken your ability to make good decisions. It seems to me that this should be explained with an example. Take a look at existing political systems. What system is designed to increase the likelihood of making good decisions? What system encourages open discussion and zealously defends freedom of information, freedom of debate, and freedom of the press to ensure that good decisions can be made? Democracy. Correctly. But have you noticed how difficult it is in a democracy to implement political decisions that require change? The system can make good decisions, but the legitimate political polyvoice required for this becomes an obstacle to the implementation of the decision. Most democratic leaders complain that they are not able to carry out their policies as quickly as they would like. nineteen

19 Now tell me, what kind of political system ensures the rapid implementation of decisions, but does not allow discussions, doubts and questions? totalitarian state. Right. At the same time, totalitarian regimes usually make bad decisions. But why? Because quick implementation comes at the cost of restricting freedom of the press, assembly and debate. The principle here is: “Do or...” This makes it difficult to share the information necessary to make informed judgments. Instead of being objective, such regimes often make biased decisions with dire consequences. So, you want to say that good governance is democracy in decision-making and dictatorship in their implementation? Correctly! In your personal life, this means that in order to make good decisions, you must be an open-minded person. You must be a democrat in your own mind and in your dealings with others. But once the decision is made, you need to become a dictator, which in relation to your personal life implies a strong commitment to the choice made and a relentless desire to put it into practice. This is easier said than done. Undoubtedly. I call the combination of democracy in decision-making and dictatorship in their implementation the word "democracy". This is a difficult process. Many people use it completely wrong: they try to be dictators in making decisions and democrats in implementing them. I guess this applies to me too. When I made the decision to lose weight, I acted like a dictator. "All is decided. There can be no more discussion here. Period, I told myself. And I was determined until the moment when the sandwiches arrived. After that, I turned into a democrat in the usual way and began to listen to the inner voices of protest. You get the main idea, my friend. You need to use the principles of democracy and dictatorship in the correct order. You have to be first a democrat and then a dictator, and the difficulty here lies in the word "then." When do you stop being a democrat and become a dictator? When do you start to suppress manifestations of internal disagreement? Some people turn out to be democrats when making decisions and continue to be democrats in the process of implementing them. They are unproductive because they keep changing the decisions they have made. At the same time, decisive people are good at implementation, but the narrowness of their views negatively affects the decision-making process. It is difficult for them to prove something, because they do not know how to listen to others. As a result, they make decisions based on inadequate or distorted information. Unlike the democratic style, which is efficient but unproductive, the totalitarian style is productive but inefficient. Are you saying that the democratic system is unproductive? Quite right. If you try to organize a productive political process with it, then it will lose its effectiveness. Similarly, you will argue that totalitarian regimes cannot be effective? If you look at them carefully, the meaning of your statement will become clear. 20

20 After all, the economy of the USSR, with its central planning system, experienced difficulties in meeting planned production targets, which even led to food shortages in the country. Totalitarian regimes are ineffective. The more democratic they become, the more efficient they can work. But at the same time, they will have to partially lose their political productivity. Yes, and it's not easy. People usually want to get something else without losing what they already have. They prefer to have "more" rather than "instead". To govern, to order, to educate or rule means to make decisions and enforce them, to be a democrat and then to become a dictator. This is very difficult, not only when managing a business, but also when managing family and personal affairs. This is one of the reasons why the management process is so difficult. You must make a decision and ensure its implementation, demonstrate open-mindedness and steadfastness at different times. With this definition, the management process will be comprehensive, universal and free from value judgments. I think I got your idea. Both factors are necessary, and the presence of both of them is a sufficient condition for success. The better our solution and the more productive its implementation, the better we will be able to manage. But how can we make a good decision and put it into practice productively? How can we measure the quality of decisions? I could analyze the decision after the fact and recognize it as correct. But wouldn't such an analysis come too late? This is a great topic for our next conversation. So, see you tomorrow. At the same place at the same time. Till tomorrow. Thank you very much. 21

21 Conversation Two Predicting the Quality of Decisions So, where did we stop? You said that the quality of management, leadership, education or leadership depends on the quality of decisions made and on the productivity of their implementation. Today we were going to talk about how to make good decisions. Then let's start. To make a good decision, we need to know how to predict its quality. We don't want to analyze a solution after it's been implemented and then judge it based on our successes or failures. But how can such a prediction be made? Let's consider a simple example. Suppose we have made a description of a problem situation containing all the information needed to diagnose and solve the problem. Next, we give this description to a group of four people. These people do not know anything about the real situation other than what is presented in the description. They don't have any additional information. We ask them to jointly study the problem and work out a solution. The group should then prepare a written statement of the problem and its solution on paper and submit it to us in a sealed envelope. Now let's turn to another group of four and give them the same task. She will also not be given any additional information, in addition to the one contained in the original task. The second group will have to give their description of the same situation and offer their solution. After both groups have completed their work, we will have two sealed envelopes. But will these envelopes contain descriptions of the same problem and the same solutions? No. Most likely, they will describe different problems and offer different solutions. Right, but why? The original problem situation is the same. Both groups have the same information. Why are problems and solutions different? Because everyone is different! You just named a key factor in the management or leadership process! In order to manage successfully, you must lead the people who write the problem description in the envelope, instead of dealing with the problem itself, the description of which is in this envelope. There are managers who say, “I love being in charge. But I can't stand my subordinates!" But if the leader does not like to work with people, then this means that he has chosen the wrong profession. Too many managers, leaders, or parents of growing children say, "Gimme an envelope!" They then open the envelope and state, “Wrong problem! Wrong decision! The right problem and the right solution is…” They think they are leading, commanding, or educating, when in reality they are just trying their best to do something. Even if they approve of what is written in the envelope, how can they know that they have found the right problem and the right solution? 22

22 But if they are managers, then they should know the situation better than their subordinates. That's what they get paid for, right? Isn't that why they become our leaders? They should know the situation better, but is it really so? Is it more high salary guarantees a broader and deeper knowledge? Do our leaders necessarily know more than we do? Then why are managers paid more? What do we reward our leaders for? In any case, not because they know more about the problem or about its solution. They are paid more for knowing how to find the right, "informed" people and for managing these people in such a way as to get the right decisions from them. If a leader claims to know everything himself, then his organization is in danger. If managers want to have the right problem description and the right solution, they must have the right people on hand for the situation. They must create an environment that will give these people the opportunity to get the right idea about the problem and help them find the right solution. But how will I, as a leader or manager, recognize the real problem and the real solution? How can I tell the right problem and the right solution from the wrong ones? If I don't know more than the people I lead, how can I evaluate their decision? After all, I can be wrong, right? To find out if your people are offering a good solution or a bad one, you need to ask two questions. If the answer to both questions is yes, then you have the right problem and the right solution. If you get a "no" answer to any one or both questions, then you have the wrong problem description and the wrong solution. What are these questions? To understand what these two questions are, we will have a few discussions. At first, these discussions may seem complicated and overly academic. But later on, the usefulness and applicability of the concepts discussed in them, as well as their ability to lead us to answers to these two questions, will become apparent. I'm ready. Let's continue! 23

23 The Four Roles of Decision Making No decision is made in a vacuum. It is taken to achieve something. A solution is considered good if it provides the desired results. The quality of a decision should be judged by its impact on the system for which it was made. Thus, if a solution can make an organization both efficient and productive in the short and long term, then it is a good one. Now let's look at the characteristics of a good solution that can keep an organization productive and efficient in the short and long term. To do this, we can use the following table: I have studied management practices in many countries and observed what happens in different conditions. I was like that doctor who, being long time on a British warship, could observe how people who are deficient in vitamin C develop scurvy. I have studied management in countries where some managerial functions were prohibited by law, and observed and analyzed the managerial "diseases" developing at the same time. 2 At the same time, I identified the necessary characteristics, those four "vitamins", which I called "decision roles", which ensure the creation of a healthy organization, that is, effective and productive in the short and long term. When any of these roles cease to be fulfilled, a corresponding pattern of mismanagement results. 3 I can analyze and predict the outcome of a decision by analyzing the roles being played and not being played. What you mean to say is that whenever one of the roles is not fulfilled, a corresponding type of mismanagement occurs. And by knowing which role is missing, you can predict whether an organization will be mismanaged and inefficient and/or unproductive in the short and long term. Correctly. Then you can look at management problems the same way you look at illnesses, find out which lost roles caused them, add the missing role or roles to the system, and return the organization to a healthy state. Yes! I look at the organization as a whole system and consider everything that makes it "healthy" or "sick". I solve specific problems by treating the entire system. I call this approach the Adizes methodology. 2 Ichak Adizes, Industrial Democracy: Yugoslav Style (New York: Free Press, 1971); reprinted Santa Monica: Adizes Institute, 1977). 3 Ichak Adizes, How to Solve the Mismanagement Crisis. 24

24 provides a holistic theory of management, both therapeutic and preventive. For example, one company, using this methodology and other factors, managed to increase its sales from $12 million to $750 million in ten years without diluting capital through additional share issues. 4 Another company, also without issuing additional shares, increased its profit from $150 million to $2.5 billion in ten years. 5 But will the benefit be permanent? It can be such if the company constantly receives support in the form of regular use of the methodology. Otherwise, in the long run, the effectiveness of the methodology will decrease, and eventually the organization will lose the benefits. We get a similar result after the cessation of regular exercise or the rejection of a proper nutrition system. But will anyone be able to properly use this methodology? It can if you teach it properly. How different is this from what traditional consultants do? We do not prescribe in the sense that we do not write consulting reports. We develop the organization's ability to release and use its internal energy so that it can take care of itself. We train the organization to produce the necessary “vitamins” so that it can continue to be healthy without our intervention. Traditional counselors do not teach how to stay healthy. You usually need to contact them periodically for help. Our methodology is different. It not only helps the organization to change, but also develops its ability to cope with future problems and therefore does not develop dependence on outside interventions. It teaches the organization how to properly manage itself on an ongoing basis. I'm interested in learning more about all this. What are these four roles? 4 According to Peter Resnick, Chairman and President of The Franklin Mint. See quote at reverse side dust jackets. 5 Tom Monagham and Robert Anderson, Pizza Tiger (New York: Random House, 1986). 25

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“It is not the strongest or smartest species that survive, but those that are the best at adapting to change,” said Charles Darwin. Yitzhak Adizes continues this thought: "We will stop having problems only when there is no change at all, and this will happen only when we ... die."

The book is devoted to the processes of making managerial decisions in the conditions of constant changes occurring both inside and outside the organization. The problems that arise as a result of change, according to Adizes, are not only predictable, but also solvable. The author clearly shows how you can create and maintain the integrity of the organization if you know the art of high-quality adoption and implementation of management decisions.

From this book you will learn: why conflicts are inevitable and even necessary; how to make conflict constructive; how to communicate with other people whose management styles are different from yours; how to recognize bad management; how to make quality decisions; how to predict whether a solution will be implemented; how to organize team work; how to create an atmosphere of mutual trust and respect; CAPI: the key to change management.

First conversation
The meaning of management

One day I was talking to one of my students. He was an intelligent and inquisitive young man. He wanted to find out what my special knowledge of management gave me the opportunity to teach and lecture around the world. So he asked if I would have time to talk to him about the subject. I liked his curiosity and agreed to answer his questions. As we walked through the park with him, exchanging questions and answers, the concept of this book gradually formed in my head.
I know that you have been studying management processes for over twenty years. What is it?
First of all, we need to define what the word manage means.

Traditional management theory

I have found that in some languages, such as Swedish, French, and Serbo-Croatian, the verb to manage does not have a literal translation. In these languages, verbs such as direct, guide, or command are more commonly used instead. When people who speak these languages want to say what Americans mean by using the verb to manage, they usually also use that English word. For example, in Spanish, the verb manejar - a literal translation of to manage - is closer in meaning to the verb to handle ("handle something, manage something") and is used only in relation to horses or cars. When the Spaniards want to use a word that is close to the word to manage in the American sense, they say "manage" or "do business."
But isn't the management process universal?
No. In some countries, the process of management, as it is carried out in the United States and taught in American business schools, is prohibited by law. In the system of "self-government" in the former Yugoslavia, the head of an enterprise who made a business decision unilaterally could end up in court. Such an action would be interpreted as a violation of democracy. Instead, the director of the enterprise had to "propose" a solution, and the workers could accept or reject it. In Israel, the head of the kibbutz, who actually holds the position of manager, is regularly re-elected so that no one person can claim permanent leadership of other people.
Are you saying that the head of the kibbutz leads the people for a while, and then returns to the farm to milk the cows?
Or cooking, or washing dishes. In this organization, not a single leader is elected forever, just as the government is not elected forever in democratic countries. Otherwise it would violate the principles of democracy. The head of a kibbutz is not a profession.
What should be understood by the word to manage if in some languages it does not have a direct translation, and in some socio-political systems the activity it denotes is considered unnecessary or even banned?
What synonyms would you suggest?
Decide, act, plan, control, organize, dominate, achieve goals, lead, motivate, complete…
Some dictionaries offer the same synonyms for the word "manage" as you do. But there are also other intriguing synonyms, such as dominate or rule, which are given in the American Collegiate Dictionary. The Oxford Dictionary adds the verbs to manipulate and indulge to this list. It is interesting to note that none of the dictionaries I looked at listed the verbs lead or motivate as synonyms.
I don't like synonyms to pander or manipulate.
And there is a good reason for this. To understand what it is, let's define the "common denominator" of all the synonyms mentioned above, with the exception of lead and manipulate. Imagine the process described by each of these words. Animate their meaning. Can you now determine the common denominator? Act… plan… control… organize… achieve… complete.
All of them describe a one-way process. The one who leads tells those whom he leads what they should do. The leader determines what needs to be done, and his subordinates become the tools to achieve the goal.
That's why we call the manager the "head" of the department and his most capable subordinate the "right hand". The right hand does exactly what the head tells it to do, while the left hand behaves as if it could act on its own. Her behavior is not completely controlled.

Itzhak Adizes

Managing change. How to effectively manage change in society, business and personal life

Foreword from the publishing partner

First you decide what to do and then you effectively implement your decision

If you don't want to make changes, I guarantee that there will be someone who will do it for you.

Jack Welch

The Stins Coman group of companies traditionally supports the publication of new books by Professor Yitzhak Calderon Adizes in Russia. The approaches that the author talks about are necessary and in great demand in the Russian business environment. This is evidenced by the fact that Adizes books are constantly reprinted and new ones appear.

According to Professor Yitzhak Adizes, to live means to solve problems, and to develop means to acquire the skills to solve more complex problems. The book by I. Adizes "Managing Change" is devoted to the processes of making managerial decisions. The purpose of management, nurture, government - in a word, any form of organizational leadership - is to solve today's problems and prepare for tomorrow. This is change management.

The problems that arise as a result of ongoing changes are quite predictable. Professor I. Adizes clearly reveals the nature of problems and, in his characteristic thorough manner, explains how to effectively resolve situations related to the creation of a workable team, be prepared for a clash of interests, how to increase the number of constructive proposals from employees, how to eradicate disrespect for other people's opinions and mutual distrust of the participants of the ongoing change.

Yitzhak Adizes is an unsurpassed author of paradoxical managerial decisions. In one of his books, published four decades ago, he stated that ideal managers And there are no managers at all. In this book, he says that the concept of a “good solution” also does not exist. There is a “good decision for the moment”, and it must be taken into account that the period of their life is quite short, so decisions should be evaluated by their impact on the effectiveness and efficiency of the organization in the short and long term. “The right actions must be done at the right time, in the right order, with the right intensity, and in the right sequence.” The task of the manager, according to the author, is to learn how to do the right things correctly.

The recommendations of I. Adizes are addressed to those who are ready to work on themselves in order to achieve their goals, while showing a sufficient level of reflection and the ability to move away from stereotypes. First of all, I would advise managers to read this book, career which turned out to be fast. I. Adizes not only lays out the nuances of management "in theory", but also explains how to use this knowledge in practice.

The methodology of I. Adizes is a kind of matrix that can be applied in any system - be it an organization, a family or a team of like-minded people. The roles in the system should be distributed so that there is integration (I), entrepreneurship (E), administration (A), and production of the desired result (P). Only when all these roles are performed can the management team make the right decisions and subsequently implement them effectively.

The book is written in the form of a conversation and is easy to read. Methods and approaches are not only understandable, but also well structured. In addition, the main ideas to which the author leads are presented in the form of brief conclusions.

After reading this book, one cannot hope to receive the only and completely necessary knowledge. But taking it as a basis and building up your own experience and knowledge, you can count on success.

Irina Slesareva,

Vice President for Marketing and HR, Stins Coman Group

Foreword

Dear reader!

The book you are holding in your hands is written by Dr. Yitzhak Calderon Adizes, the famous "guru" of management theory. About ten years ago, this name in Russia was known only in narrow scientific circles - it was referred to in dissertations and scientific articles. But in most cases, these were links to a link, since the books of I. Adizes were practically inaccessible in the original, and Russian translations did not exist. But over the years the situation has changed dramatically: almost all of his books have already been published in Russian; his articles and interviews regularly appear on the pages of domestic newspapers and magazines; as a consultant he works with the largest Russian companies; Dr. Adizes regularly delivers his lectures in Russia, not only to students and professors, but also to government officials, including governors of all subjects of the Federation. All these positive changes have occurred to a large extent thanks to the efforts of the Institute of Business and Business Administration of the RANEPA under the President of the Russian Federation, where he is a scientific consultant for the Executive MBA and MBA programs. His applied management theory, known throughout the world as the "Adizes methodology", is the basis of our training programs. And on the Executive MBA program, which is focused on training owners and top managers, this methodology is a mandatory part of the program and has been implemented for many years in collaboration with the Adizes Graduate School (Adizes Institute Postgraduate School).

In all his monographs (and there are already about thirty of them), Dr. Adizes considers the development of organizations and their behavior within the life cycle, the problems of leadership, change management, and management styles. Thanks to the unique methodology of Adizes, all these elements of management theory not only received a new scientific sound, but also began to be used in practice to solve the most complex management problems.

What is the essence of this methodology? If we try to define it briefly, then two concepts are quite enough for this - analysis and synthesis. Any community, be it a company, a family or a country as a whole, is a living organism that has its own life cycle. They are born, grow, reach their peak, eventually enter the stage of decline and die. This is a classic life cycle curve where only the first and last stages are the same. The set of all other stages and their sequence is an individual feature of each organization, its management system. Therefore, the ability to effectively solve problems that periodically arise in the organization comes to the fore. To do this, it is necessary to constantly analyze the situation in which the company is located, revealing what is “normal” and what is “abnormal” at this stage of the life cycle. The effectiveness of the decisions made depends entirely on how fully the features of managing the organization at various phases of the life cycle are taken into account. The fundamental monograph by Yitzhak Adizes “Corporate Life Cycle Management” is devoted to a detailed analysis of all stages of the life cycle.

At the same time, any management process is a relationship between people. Three remarks must be made here. First, everyone is different.

Second: there are no ideal people (including leaders) - everyone has their own strengths and weaknesses. Third, change is a constant factor in any activity. These three conceptual remarks form the foundational part of the Adizes methodology.

The book "Managing Change" is devoted to the consideration of managerial decision-making processes. The problems that arise as a result of ongoing changes are quite predictable. To make quality decisions, you need to create a balanced and efficient complementary team of managers. However, any team is a clash of different interests, styles of thinking and behavior. Therefore, conflict is inevitable, but it is very important that it be constructive so that the parties hear each other and take advantage of their differences. And such a situation is possible only when people trust and respect each other. It would seem that these are absolutely abstract concepts that are difficult to apply in a real decision-making process. But it's not. The essence of trust is that, while diverging in particulars, the team is united in their strategic interests. And respect for someone else's opinion, even if it is different from yours, allows you to take into account all the nuances and make a quality management decision. Therefore, an effective manager gathers around him people with different styles of behavior, whom he respects and trusts, as they are united by common strategic interests.

I would like to note an important feature of the Adizes methodology, which is most clearly manifested in this book. The vast majority of modern management theories are based on the American experience of doing business and rely on the Anglo-Saxon model of behavior. But the modern world is diverse, and standard methods and techniques are by no means always applicable and effective in different regions. That is why the theory of Adizes compares favorably with all the others, since the author considers the processes of management and decision-making through the prism of national characteristics in a particular country. He is always trying to understand the cause-and-effect relationships, specifics and mentality of various national groups through a serious study of the business cultures of various peoples.