THE WORK OF LEADERSHIP
day to day, moment to moment, on the many waysin which an organization's habits can sabotageadaptive work, a leader easily and unwittingly be-comes a prisoner of the system. The dynamics ofadaptive change are far too complex to keep trackof, let alone influence, if leaders stay only on thefield of play.We have encountered several leaders, some ofwhom we discuss in this article, who manage tospend mueh of their precious time on the baleonyas they guide their organizations through change.Without that perspective, they probably wouldhave been unable to mobilize people to do adaptivework. Getting on the balcony is thus
a
prerequisitefor following the next five principles.
Identify the Adaptive Challenge
when
a
leopard threatens
a
band of chimpanzees,the leopard rarely succeeds in picking off a stray.Chimps know how to respond to this kind of threat.But when a man with an automatic rifle eomesnear, the routine responses fail. Chimps risk ex-tinction in a world of poachers unless they figureout how to disarm the new threat. Similarly, whenbusinesses cannot learn quickly to adapt to newchallenges, they are likely to face their own form
of
extinction.Consider the well-known case of British Air-
ways.
Having observed the revolutionary changesin the airline industry during the 1980s, then chiefexecutive Colin Marshall clearly recognized theneed to transform an airline nicknamed BloodyAwful by its own passengers into an exemplar of
to adaptive challengesreside not in the executive suitebut in the collective intelligenceof employees at all levels.
customer service. He also understood that thisambition would require more than anything elsechanges in values, practices, and relationshipsthroughout the eompany. An organization whosepeople clung to funetional silos and valued pleasingtheir bosses more than pleasing customers eouldnot beeome The World's Favourite Airline. Mar-shall needed an organization dedicated to servingpeople, acting on trust, respecting the individual,and making teamwork happen across boundaries.Values had to change throughout British Airways.People had to learn to collaborate and to develop acollective sense of responsibility for the directionand performanee of the airline. Marshall identifiedthe essential adaptive challenge: creating trustthroughout the organization. He is one of the firstexecutives we have known to make "creatingtrust" apriority.To lead British Airways, Marshall had to get hisexecutive team to understand the nature of thethreat created by dissatisfied customers: Did it rep-resent a technical challenge or an adaptive chal-lenge? Would expert adviee and technical adjust-ments within basic routines suffice, or wouldpeople throughout the company have to learn newways of doing business, develop new competeneies,and begin to work collectively?Marshall and his team set out to diagnose inmore detail the organization's challenges. Theylooked in three places. First, they listened to theideas and concerns of people inside and outsidethe organization - meeting with crews on flights,showing up in the 350-person reservation center inNew York, wandering around the baggage-handlingarea in Tokyo, or visiting the passenger lounge inwhatever airport they happened to be in. Their pri-mary questions were. Whose values, beliefs, atti-tudes, or behaviors would have to change in orderfor progress to take place? What shifts in priorities,resources, and power were neeessary? What sacri-fiees would have to he made and by whom?Seeond, Marshall and his team saw conflicts asclues-symptoms of adaptive challenges. The wayconflicts across functions were being expressedwere mere surface phenomena: theunderlying confliets had to be diag-nosed. Disputes over seeminglytechnical issues such as procedures,schedules, and lines of authoritywere in faet proxies for underlyingeonflicts about values and norms.Third, Marshall and his team helda mirror up to themselves, reeogniz-ing that they emhodied the adaptivechallenges facing the organization.Early in the transformation of British Airways,competing values and norms were played out onthe exeeutive team in dysfunctional ways that im-paired the capacity of the rest of the company toeollaborate across functions and units and makethe necessary trade-offs. No executive ean hidefrom the fact that his or her team refleets the bestand the worst of the company's values and norms,and therefore provides a ease in point for insightinto the nature of the adaptive work ahead.
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HARVARD BUSINESS REVIEW January-February 1997
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