BITS Pilani

Pilani Campus

Leadership and Management of Change

Sidharth Mishra
Lecture –6, 17.08.2019
Critical Systems Thinking Key Assumptions

• System thinking is necessary to deal with change.

• Change usually does not come in piecemeal fashion. It affects the whole
system.
• The organization is a living organism.
• By understanding system dynamics we look for behaviours within the
organization that reinforce or resist change initiatives.
• Limitation of human faculty to comprehend change.
A shift is underway

• 20th Century
• Quick fix solutions
• Pop a pill culture
• Restructuring and Reorganization
• 21st Century
• Age of adaptation
• Backlash against quickfix
• Return to values and conservatism
• Focus on inter-connectedness
• Social Media
• E commerce
The New Wave

• A shift in consumers (informed consumer, consumer activism)

• Disenchantment with scientism (over-rationalism)
• Focus on inner sources of authority and leadership
• Respiritualization of society
• Decline of materialism
• Political and Economic Democratization
• A move from nationalism to globalism ?
Think Systems

• Think possibilities, not solutions

• Encourage bottom-up thinking
• Focus on new different questions, ones that generally no one asks.
• Challenge existing assumptions
• Look for patterns and relationships
• New ways and altered descriptions
System theory System

• System is a regularly interacting and interdependent group of people, items, parts

that form a unified whole with the purpose of establishing a goal.
• A system exists within a system of which is a part. A system is a “holon” as it is
whole in one context while being embedded inside another. Example: Family
• The interdependence of different parts of a system is described as a “holarchy”
• A system imports many things from the large system it is a part of. For example if
a mood of anxiety prevails in the large system, the smaller system would also
reflect the same.
Systems Theory Postulates

• All systems are alive.

• All systems are interdependent with other systems.
• Systems strive for survival.
• Systems exist within a hierarchy.
•Systems need to be open systems to survive.
• Systems have irreducible characteristics that belong to the
system as a whole.
• Sub-systems contribute to the survival of the larger system.
• System behavior depends on the system structure.
• Systems thrive on self-organization.
• Understanding systems means understanding patterns,
relationships and roles.
• Systems live in dynamic tension between order and chaos.
• Systems strive to attain dynamic equilibrium.
• The greatest system learning and adaptation occurs at points
of disequilibrium.
• There is an optimum size for all systems determined by their
inherent nature.
A system thinking mind set

• Reality is seen as an inter-related network of systemic relationships.

• The network of relationships is infinite and always inviting new possibilities.
• Reality is apprehended through system narratives.
• Narratives place emphasis on values, roles and patterns of changing
relationships.
• Reality is explored from multiple competing perspectives.
• Reality is appreciated as comprising multiple competing perspectives.
• Reality is in flux, ambiguous, uncertain and moving toward new possibilities.
• Change occurs simultaneously and not in linear sequence of cause and effect.
• System components assume roles to advance the survival and health of the
greater system.
• Understanding systems requires an interpretation of values, roles and
relationships.
• System roles reflect its values, emotions and mindset (beliefs and
assumptions).
• Systems can never be totally understood – an element of mystery
The systemic nature of change

The source of new realities is the environment new realities arrive, i.e. New realities a they have from the larger system.
• They always systemic they have an effect across systems
• They are arrive in patterns and waves, i.e. not they are isolated, unrelated incidents or events
• They are not necessarily linear in apparent cause–effect impact
• They always impact several relationships or stakeholders
• They have a ripple affect across systems – a new reality for one part of the network creates a new reality for another
• They simultaneously create new realities across networks
• They are often first recognized intuitively
• They impact values and roles represented by parts of the system
•They often change relationships between networks and sub-systems .
 Open system process analysis

1. Define a conceptual boundary for the system you are going to analyze. Is it the global arena, the nation, a
particular industry, or. ...? In the globalizing world of today your boundary is most likely to be wide, as nations
and industries are no longer geographically defined. Be sure not to define the boundary too broadly as the
analysis will become too complex to handle. If you define it too narrowly you will of course miss critical
issues.
2. Identify key trends and new realities manifest in the macro environment. Here you will need broad
horizons since everything is related to everything else. On the other hand, clearly you cannot embrace
everything, so thoughtful screening will be necessary.
3. Identify the key systems and sub-systems that make up the larger system you have defined in (1)
4. Establish the systemic properties (values and role) of the larger system. Establish similar properties of the
sub-systems of the larger system.
6. Define the organization as a system and establish its values and role in the larger system. Do the same
for its sub-systems.
7. Identify key stakeholders in the macro environment; in the organization in the organization sub-systems.
Identify their most important values and their inter-relationships.
8. Consider how new realities are challenging system and sub-system bound.
Benefits of system thinking

• Helps managers look at organizations from a broader, big picture perspective,

something many people avoid or ignore.

• Focuses on the inter-relation of parts and systems and how they work together
rather than on isolated events and individuals.

• Leads to a more insightful understanding of the environment in which the

organization is operating

• Allows for a better understanding of what it means to be in relationship

• Places emphasis on analyzing narratives rather than linear cause and effect events
• Helps uncover the driving forces behind relationships and how relationships play
themselves out in reality
• Helps understand the meaning making between the parties of a relationship;
System Dynamics

• System Dynamics concerns the interplay of feedback.

• Positive Feedback – Reinforces Change
• Negative Feedback – negates change.
Feedback and Learning

• Single Loop Learning

• Reactive Learning
• Double Loop Learning
• Insightful learning
• Changes decision framework
• Triple Loop learning
• The third dimension
Limitation to effective thinking

• Complexity of changes
• Selective Perception
• Inaccuracy of Information
• Time Delay of cause and effect
• Mental models that need updating.
Decision making complexity

• Understanding the dynamic complexity of the world

• What to take into account and what to ignore
• Knowing what is concurrent and what is sequential
• Combinatorial complexity of infinite possibilities
• Feedback and Learning
Open System Approach

• Define a conceptual boundary for the system.

• Identify key trends and new realities manifest in the environment.
• Identify the key systems and sub-systems within the larger system.
• Establish the systemic properties, the values and roles of the larger system.
• Establish the systemic properties of the sub-systems.
• Identify all stakeholders within the system and the macro-environment.
• Impact of new realities on the system and subsystems
 Hot and moist climate
High refrigeration cost Bangladesh

Money Lender Factory

Village
Family Grameen Bank

Success of microcredit
Cultural Values- empowered women
Philosophy of Leadership

• Why is a leader required?

• A leader is required to handle change.
• A manager is sufficient to deal with periods of stasis.
Abilities of a leader

• Change management needs the following

• Openness, attentiveness and Curiosity
• System Thinking
• Ability to see patterns and relationships
• Good reasoning skills
Abilities of a leader

• A system leader can do without charisma. He can be either an introvert or an

extrovert and could be domineering or non-domineering.
• What he needs is a prescient mindfulness about what is transpiring in the system.
• Forward looking attention
Abilities of a leader

• Intellectual and Emotional Alertness

• Cognition
• Emotional Intelligence
Leadership Theories

• The Allure of Leadership

• Transformational Leadership
• Servant leadership
• Emotional Intelligence
• Ability to reframe problems
Theories of Leadership

• Personality characteristics of a leader

• Skills and capabilities of a leader
• Leader’s actions and styles of engagement

• Leader as visionary
• Leader as communicator
Leader and the self

• Our values of leadership is influenced by our personal value systems, the social
consciousness of the day.
• War time – heroes and warriors.
• Peacetime – philosophers and caretakers.
• Cultural Values
• Authoritarian and Patriarchial heroes
• Coaches and Facilitators
A personal exercise

• What do you think is an essential quality of a leader?

• Why is it important?
• And effective leader who did not have this value?
• What value did he exhibit?
• What you learn from this?
A personal exercise

• What do you think is an essential quality of a leader?

• Decisiveness
• Why is it important?
• To give direction to one’s followers
• And effective leader who did not have this value?
• P. V. Narasimha Rao
• What value did he exhibit?
• He had shrewd political understanding of his situation. He was “inactive” in a masterful way.
• What you learn from this?
• A leader should have the ability to read the political complexity of his situation.
• A leader should combine the qualities of a lion and a fox. He should have a lion’s strength and
a fox’s resourcefulness which enables it to avoid traps. - Chanakya
Defining Leadership

• Leadership is a relational activity where an individual(s) guide(s) or direct(s) others (followers) to attain an objective or a goal.
• Questions
• How does an activity qualify to be one that concerns leadership?
• Is there a style of behaviour associated with a leader?
• Is leadership an event or a process?
• What makes a follower?
• Is the leader alone responsible for setting the goal and direction of the group?
• What about the ethical aspects of the goal and the means adopted to achieve it?
Leadership Theories

• Psychodynamic approach
• The leader has insight into his/her personal psychological make up.
• The leader has self-awareness, he is aware of the way he would respond to a
situation
• The leader understands the mental make up of his followers and has the ability
to communicate his thought process to his followers and earn their support.
Organic Leadership Theory

• The leader sees his responsibility as a living organism.

• Leadership is based on processed that make sense to all concerned. (mutual
sense making)
• Leadership is shared.
• Followers are trained to be self leading and self-organizing and are empowered.
• Organizational power is shared.
Transformational leadership

• Transformational Leaders
• Inspire others to achieve extraordinary outcomes
• Align he genuine needs of followers with the objectives and goals of the group.
• They satisfy the higher needs of followers. (Esteem, Self-actualisation)
• They engage with the full personality of their follower and help them achieve
their potential.
Transactional Leadership

• Action and consequence driven.

• Reward and Punishment
• Safety and security to followers.
• It may be noted that transactional leadership is useful in many circumstances.
• Situations of emergency
• Huge band of followers with many constituencies
• Connection with the followers is short term.
The Transformational Leader

• Idealized Influence
• They are admired and respected by their followers who want to emulate them. This has an inherent danger if the leader follows in incorrect path like Hitler.
• Inspiration and Motivation
• They provide meaning and challenge to their follower’s work. They inspire them with their vision. Vision should be co-created.
• Intellectual stimulation
• They stimulate their followers by questioning their assumptions, reframing problems and finding new approaches to their solution.
• Individualized consideration
• They address each followers needs for achievement and growth.
• Leadership should be a distributed process and not stay in the hands of a select group of individual.
• Leadership should enhance the overall adaptive capacity of the system.
The Servant Leader

• Exhibits emotional and moral concern for followers. Focused primarily on the
welfare of others.
• Humble, Value driven and ethical
• Contribute to their followers who in turn become wiser and autonomous.
• The ability of prescience – to have an intuitive feel of the future.
Emotional Intelligence

• Self Knowledge
• Knowledge of one’s strengths and weaknesses
• Self awareness
• Awareness of one’s emotional tendencies. A controlled display of emotions.
• Self motivation
• Empathy
• Ability to step into another person’s shoes and understand his thoughts and
feelings.
Defining Leadership

• Leadership is a relational activity where an individual(s) guide(s) or direct(s) others (followers) to attain an objective or a goal.
• Questions
• How does an activity qualify to be one that concerns leadership?
• Are there some required traits to be a leader?
• Is there a style of behaviour associated with a leader?
• Is leadership an event or a process?
• What makes a follower?
• Is the leader alone responsible for setting the goal and direction of the group?
• What about the ethical aspects of the goal and the means adopted to achieve it?
Necessity of Leadership

• How does an activity qualify to be one that concerns leadership?

• Openness
• Attentiveness
• Curiosity
• System Thinking
• Ability to see patterns and relationships
• Reasoning Skills
Traits of a leader?

• Prescient mindfulness
• Alertness
• Cognitive Abilities
• Emotional Intelligencde
Style of a leader?

• Empathy
• Forthrightness
• “Seva” leadership
• Critical Thinking Skills
• Conflict Management Skills
Leadership as process

• Leadership involves a process.

• Abilities Required
• High cognitive skills
• Process orientation
• Emotional Maturity
• Endurance
Leadership a process

• A house with a family inside has caught fire. The family is ultimately evacuated safely.
• Cognitive Complexity
• Understanding the scale of the problem
• Part of house on fire.
• Intensity and spread of fire
• Present of explosive items
• Presence of Exits
• Opening smoke vents.
• Emotional Complexity
• Self Awareness
• Personal strengths and weaknesses
• Empathy
• Old/ infirm persons in the house
• Fire man
Qualities of a follower

• Avoid people of the following types.

• Blind Followers
• Agree for the short term
• Reluctantly agree
• Adaptive Leaders provide a holding environment that enables the group/system to
internalize and integrate the need for change. Subsequently the leader creates the
urgency and energy within the system for change.
• Abilities Required
• Persuasion
Leaders and Goals

• Is the leader alone responsible for setting the goals?

• No.
• Reality-Testing
• Share the perception of the new reality with constituents.
• Ability required
• Confidence
• Patience
• Humility
Leadership and ethics

• Does the goals to which followers are directed have to be worthwhile or ethical to
make it an act of leadership?
• YES
• Ethics is about dealing with changed reality in an honest and courageous manner.
• Ability required on part of a leader
• Courage
Ability to Reframe

• Structural Frame
• System as a machine
• Human Resource Frame
• System as a family.
• Political Frame
• As an ecosystem.
• Symbolic Frame
• As a carnival.
A case of harassment

• Four female employees of the accounting department of a firm made a complaint to the Employee Grievance Cell about the head of the department indulging in in appropriate behaviour which amounted to
harassment. The complaints stated by the them in the relevant form were as given below. The company had a Vishakha committee to look into such cases and a meeting was convened with all four members of the
committee which was equal represents of senior ranking male and female employees. The ladies produced two male employees of the same department as witnesses in support of their charges. The employees
concerned happened to be related and came from the same place. Under the company norms, if the charges were proven the offending employees was to be removed from service.
• A childless lady employee complained that the HOD would call her “barren” and mock at the start of her marriage.
• A divorcee in the group complained that the HOD made snide remarks about her character which he claimed was the reason behind her divorce.
• A third lady claimed that the HOD lavished undue attention on a new joinee. On questioning she revealed that previously she used to be the object of the HOD’s attention who would “trouble” her by “dropping her at
her place” in his care. These days he had shifted his attention to the new joinee.
contents

• Talent of a leader
• Fascination with leaders
• Aspects of system leadership
• Goals of a leader
• Assumptions of system leadership
The talents of a leader

• Anyone can exercise leadership for as long as certain tasks get accomplished.
• Favourable Disposition/Talents
• Self Awareness
• Attentiveness, mindfulness
• Curiosity an desire to find new levels of thinking
• Perseverance
• Steady support and push through times of difficulty
• Self Confidence
• Genuine Care for people
Talents and Skills

• To see the big picture

• Intellectual thoughtfulness and rigor
• Patience
• Strong People skills
• Conflict Management Skills
• Capability for risk taking
• Ability to stay the course
The Seduction of leadership

• Strong and ambivalent feelings

• Cede power to use over us.
• See leaders as mirror images of us- magnified in strength, valor, warmth and
integrity (alter egos)
• Ambivalence
• Too much power
• Wrong person
• Vilify, Demean and Disgrace if the mirror betrays us
• Saint Joan
System Leadership

• Leadership and authority

• How to mobilize others
• What is followership?
• Difference between adaptive and technical work
• Tasks of leadership and purpose
System Leaders

• Read new reality signals

• Open system organisation
• Change initiative that responds to real and not illusory problems
• Monitors patterns and relationships within the organisation.
• Raise awareness to the arrival of new realities
• Sensitive to levels of distress within the organization
Key Leadership concept

• The system leader’s key task is to appreciate the existence of new realities and
handle them in a manner that ensures healthy survival of the organisation.
Systemic Leadership

• Plurality of stakeholders
• Value Tension
Leadership approach

• System thinking to appreciate the effect of new realities on stakeholders

• Holistic Understanding
• Pays attention to the narratives of systems and observes the changing networks
and relationships within the system.
• Multi-perspective approach to problem solving while recognizing the dynamism
and the interconnectedness of the system
• Enhance the adaptive capacity of the organisation
• Comprehend the nature of value tension and resistance to learning.
Leadership Approach

• Complex Problems need group support

• Leadership and followership are two sides of the same coin.
• There will always be some failed expectations.
• Appreciate differences between adaptive and technical work.
• Provides constructive feedback.
• Provides a supporting environment during times of distress.
• A network of formal and informal authorities to help balance the roles of authority
and leadership.
Goal of the Leader

• To mobilize people to make progress on challenging problems.

• Enhance the adaptive capacity of the organization in the process.
• Combat “denial”. Work at solving real problems.
Assumptions of System Leadership

• Leadership is defined by the tasks accomplished, not the skill or traits of an

individual.
• Leadership can be exercised by anybody. Formal or informal authority has nothing
to do with leadership.
• The role of the leader is distinct from authority.
Mobilizing others

• This implies making them see why they needed to act.

• Provoking them to a state of self motivation.
• Channel their energy.
• To take responsibility for the challenge of change.
Critical Systems Thinking

• System thinking is necessary to deal with change.

• Change usually does not come in piecemeal fashion. It affects the whole
system.
• The organization is a living organism.
• By understanding system dynamics we look for behaviours within the
organization that reinforce or resist change initiatives.
• Limitation of human faculty to comprehend change.
A shift is underway

• 20th Century
• Quick fix solutions
• Pop a pill culture
• Restructuring and Reorganization
• 21st Century
• Age of adaptation
• Backlash against quickfix
• Return to values and conservatism
• Focus on inter-connectedness
• Social Media
• E commerce
The Fourth Wave

• A shift in consumers
• Disenchantment with scientism
• Focus on inner sources of authority and leadership
• Respiritualization of society
• Decline of materialism
• Political and Economic Democratization
• A move from nationalism to globalism ?
Think Systems

• Think possibilities, not solutions

• Encourage bottom-up thinking
• Focus on new different questions, ones that generally no one asks.
• Challenge existing assumptions
• Look for patterns and relationships
• New ways and metaphors
System theory System

• System is a regularly interacting and interdependent group of people, items, parts that form a
unified whole with the purpose of establishing a goal.
• A system exists within a system of which is a part. A system is a “holon” as it is whole in one
contest while being embedded inside another. Example: Family
• The interdependence of different parts of a system is described as a “holarchy”
• A system imports many things from the large system it is a part of. For example if a mood of
anxiety prevails in the large system, the smaller system would also reflect the same.
Systems Theory Postulates
• All systems are alive.
• All systems are interdependent with other systems.
• Systems strive for survival.
• Systems exist within a hierarchy.
•Systems need to be open systems to survive.
• Systems have irreducible characteristics that belong to
the system as a whole.
• Sub-systems contribute to the survival of the larger
system.
• System behavior depends on the system structure.
• Systems thrive on self-organization.
• Understanding systems means understanding patterns,
relationships and roles.
• Systems live in dynamic tension between order and
chaos.
• Systems strive to attain dynamic equilibrium.
• The greatest system learning and adaptation occurs at
points of disequilibrium.
• There is an optimum size for all systems determined by
their inherent nature.