Global Leadership: A Special Discernment Challenge

André L. Delbecq J. Thomas and Kathleen L. McCarthy University Professor

Santa Clara UniversitySanta Clara, CA 95053-0390

adelbecq@scu.eduTel/Fax 510 769 8730

© 4 10 09

Henri J.M.Nouwen

It is not easy to distinguish between what we are call to do versus dong what we want to do or think we should do.

When we listen collectively in silence to God’s voice and speak with our colleagues in trust we will know what we are called to do, and will do it with grateful heart

Each Period Has Particular Discernment Challenges

• Agrarian Age– Familial Businesses (Virtue Ethics)

• Industrial Age– Command and Control Bureaucracies (Avoidance of Hubris and Power Distortions)

• Technology Age– Flat, Organic, Decentralized, Loosely-Coupled (Subsidiarity - Communitarian Ethics)

Organizational Discernment Associated With Global Age

• Still Emerging• Requires Continuing Shared Exploration

Nano, Biological, Knowledge Age Plus Global Overlay

But What IS Clear Is That Decision-Making Complexity Is Changing

One Recent Exploration

• Global Change Symposium (March, 2009)– Institute for Global Innovation Management

• Northeastern University

– The Global Leadership Advancement Center• San Jose State University

– Center for Organizational Spirituality• Santa Clara University

Partial List of Participants

• Harry Lane and Bert Spector, Northeastern Univ.• Jean Neumann Tavistock Institute, London• Barry Morris, Left Lane Consulting, Ltd.• Naoe Imura, Kyoto University• Allan Bird, Univ. of St. Louis, MO• Joyce Osland, SJSU• Julia Gluesing Wayne State University• Andre Delbecq, Santa Clara University• Sully Taylor, Portland State University (Caveat: My Personal Perspective)

Premises Emerging From Literature and Dialog

After Sifting and Winnowing Theory and Cases• Focus on Mission and Strategy

– Independent Variable

• Treat Trans-national and Cultural Differences as Moderating Variables– Avoid Undue Reification of National Differences

• E.g. Chinese vs. European vs. Latin

Acknowledges Success of Private Sector As An Effective instrument of multinational integration

Key Discernment Questions Become:

• What Does Organization Wish to Achieve?

• What Would Be An Appropriate Strategic Process?

• How Can Global Complexities Be Effectively Addressed

• Not: How To Do Business In ____

Theoretical and Professional Implications

• Global Leadership can be analyzed as a genre of complex, strategic change

• Discernment challenges can be focused on discrete steps

Urgency of Discernment For Global Leadership

• BUSINESS URGENCY

• Market Imperative: Largest Potential For Growth Is International– Billion New Customers– Youth vs. Aging Demographic Differences

Average Technology Start-up Operates in Twelve Countries Within Seven Years

BUSINESS URGENCY-cont.

• Supply Chain Imperative: Interlinked Partnerships An Economic Necessity– Global suppliers for parts, process and service support– Global integration of the labor market

• Knowledge Workers• Unskilled and Skilled Workforces

• Differentiated Economic Roles in “Flat World”

BUSINESS URGENCY-cont.

Knowledge Imperative: Rapid Change an Economic Requirement– Freely available, open sourced information flows

– Formal, informal and “unformal” (heuristic) knowledge emerges spontaneously

– Instantaneous communication• Capacity of Continuous Change Becomes

A Required Organizational Capability

BUSINESS URGENCY-cont

• Therefore,Global Leadership Is a Precondition for Firm Survival

• Discernment Is Required To Enable Product/Service, Process Innovation, and International Market Penetration

Pope John XXIII: Avoiding False Dualism

Business as Pivotal Institution

• 80+% People of God– Serve neighbor

• Needed product or service

– Experience community• Primary group as central

– Talents embraced or diminished• Gifts of Mystical Body Enabled

– Wealth is Generated• Supports family, society, arts, education, religion etc.

God In All Things “Not a Second Rate Path of Holiness”

Additional Societal Urgency

• Business Must Share in Finding Solutions to Meta-Societal Concerns– Transformation of global markets following the

meltdown of economic and financial systems• Stepping away from greed and fraud

– Redistribution of access to wealth creation capacity to avoid world-wide anger

• Avoiding the pitfalls of long term reliance on aid

Societal Urgency-cont.

• Assist in Finding Solutions to Looming Environmental Tragedy– Impacting on species, water shortages, climate change

and energy resources - ultimately on human survival.

• Each Business Must Be Part of Solution

Societal Urgency-cont.

• Dealing With Challenges of Demographic Instability and Migration– Movement of peoples toward zones of economic

viability• Family disruption, education and social support shortfalls

– Absence of social supports and environmental sustainability in newly developed economic zones

When you come into your land, do not oppress the stranger.

Remember you were strangers in the land of Egypt.

Societal Urgency

• Therefore Global Leadership Based on Sound Discernment Is Also Required To Partner in Planetary and Human Survival

Echoes Ignatian Criteria for Discernment of Mission

• Where people can be reached who can cause good to spread

• Where there is impact on many people• Where results can be durable• Where there is impact on the poor

Ignatius of Loyola - Constitutions

A New Generation’s Challenge

• Characteristics of the Next Generation That Are Hopeful– More concern for the common good

• Immersion experiences and service learning

– Greater capacity for collaborative effort• Team based education and recreation

– Sense the weakness of prior societal patterns• See alienation of parents generation

– Stronger values orientation• Spirituality as a mega-trend

Elements of Global Complexity-Multiplicity

• Multiplicity: Differences In-– Culture, values, expectations– Norms of transparency and information sharing– Language and familiar managerial argot– Law, governance structures, control systems and

regulation– Employee relationships– Economic, political, environmental frameworks

Additional Elements of Global Complexity

Geographic Dispersion• Multiple locations, time zones

• Virtual communication difficulties– Unreliability

– Distortions due to limitations of communication technology

– Difficulties in interpreting cues and signals

Meets Criteria for Complex Change

• Means and Ends Uncertain– A Discovery (Discernment) Process,– Not Simply a Rational-Technical Expert

Process

Resolution Requires A Paradox

• Increased Boundary Spanning Efforts– Multiple Stakeholders

– Capacity for deep listening and interpretation

– Patience in conducting dialog throughout the decision process

While At the Same Time--

Paradox-Cont.

While At the Same Time--

• Introducing Degree of Simplicity through– Clarity of decision sequences through a commonly

understood process– Clear Loci of decision authority– Timely implementation

Ultimately Discernment Must Be Based On

• Noble Purpose• Good Processes• Good People• Leading to Innovative Outcomes

Familiar Step Process Model for Complex Change

• 1) Visioning• 2) Problem Exploration• 3) Solution Search• 4) Pilot Testing• 5) Implementation• 6) Double-Loop Assessment

1) Visioning

• Incorporating Noble Purpose– Meta Societal Goals

• Triple Bottom Line

– Addressing Real Human Needs Across Differentiated Populations (including bottom of pyramid)

– Accepting Discipline of Efficiency and Effectiveness

• Shared Vision Must Evolve Across Stakeholders– Interpretable in multiple cultures Creating “Organizational Readiness” Failures: Forcing Behavior

Requires Discernment - Not Simply Rational Analysis

• Overlaying Emotional/Spiritual Intelligence– Holistic Reflection

• Current Neurological Evidence

– Inclusive of “In-Spiration”

• Avoiding Often-documented Distortions– Hubris and Greed

• Creating a Shared Sense of Noble Purpose Failures: Focusing Only On Numbers

Without Prayer-In Spiration- There is No Discernment

• Parallels Across Traditions– Reformed Christian Tradition - Veni Creator Spiritus

(Lutheran, Anglican, Pentecostal etc.– Jewish Tradition - Creator God who Shares Wisdom

and Acts in History– Taoist - Chi Permeating the 10,000 things– Hindu - Non-dualism

• Etc.

Taking Time for Silence, Reflection and Sharing Out of Silence In Each Step of the Process

Frank Houdek, SJ

• Everyone who seeks meaning in life’s efforts must learn to listen with all their capacity in order to recognize the single voice that bears a thousand names. It is the voice spoken to us from the center of our personal being.

The Upanishads

He is God, hidden in all beings, their inmost soul who is in all.

He watches the works of creation, lives in all things, watches all things.

Tao Te Ching

Look it cannot be seen --- it is beyond form.

Listen, it cannot be heard --- it is beyond sound.

Grasp, it cannot be held --- it is intangible.

2) Problem Exploration

• Being Present to Voices of Those Impacted– clients/users/customers/patients etc.

• Deep Listening• Experiential, not simply numeric

60 % success rate in innovation Failure: Technology Push By Technical Elites vs. Market Pull

3) Solution Search

• Contact With Gatekeepers Across Knowledge Sources– Scientific/Technnical/Prior Experience– External to Sponsoring Organization

• Utilizing Capabilities of Information Age

50% Solution Elements From External SourcesSearch Behavior More Important than Brilliance

Failures: Intellectual “Incest”

4) Pilot Testing

• Alpha Test With Early Innovators– Refining Design Through Action Learning

• Beta Test With Average Adopters– Understand Support, Learning Curve, Demand

Action Learning Failure: Moving from Design to Implementation

5) Implementation Resourcing

Clear Organizational Mandate Based on Shared Review of Beta Evidence

• Robust Implementation Design With Support to Each Adopting Segment

Support During Roll-Out More Important Than Technical Design Attributes Failure: Expecting Later Adopters To Learn Without Assistance

6) Double-Loop Assessment

• At end of each step• At end of total effort

Creating Organization Learning Regarding Way of Proceeding

Failure: Each Project Must Create A Process From Scratch

Leadership Requirements

Elements of Complexity in Visioning, Problem Identification, Solution Search, Pilot Testing and Implementation Together With Multiple Boundaries and Cultural Complexities Exceed Capacity of Single Person Leadership

Decision Team Headed By Committed Champion No Known Success Story Associated Superior Single Leader

An Intermediate Sized Group With Decision Authority

• “Adhocracy” With Authority To– Manage Step Process– Manage Communications With Stakeholders– Proceed Through Beta Testing (unless unexpected

findings emerge)– Hand-back Strategy to Authority Matrix For

ImplementationStrategic Change Team

Failure: Associated With Bureaucratic Locus of Change

Rule of Three-Justice Requirement

• Principle of No Surprises– Mandate Following Visioning But Requiring Continued

Communication• (Modifications That Improve, Not Veto’s)

• Rule of Three - Intensive Communication• When Problem Adumbrations Emerge• When Solution Adumbrations Emerge• When Final Design Recommendations Emerge

• Minority Accommodations• For a Time• Evaluation Against Concerns

Key Roles, Strategic Team

Technical Champion: Scientific, Technical, Engineering Knowledge Leader - Formal Leader

• Statesperson: Sponsor of Effort in Corridors of Vertical Power - Political Interface

• Coordinator: Communication and Relations Leader Horizontally Across Impacted Units

• Multi-Nationalist: Experienced and Linked Through Prior Relationships Across Cultures

• Internet Monitor: Linked Into Cyber Communication Networks

• May Require Multiple Players For Each Role

Boundary Spanning As Critical

• Majority of Failures In Strategic Change Efforts Related to Boundary Spanning Failures Not

Technical Inadequacy

• More than 60 % Success Depends On Communication

No Known Success Story AssociatedWith Individual Leadership

The Technical Team

• Selected for Expertise Relative to the Challenges of Each Stage of Step Process Model

– Adhocracy Not Composed of Fixed Team Composition

• Must Include Interpenetration Across Multi-national Knowledge Base

“Marketing” is Not Multi-cultural Interpenetration

Required Overarching Global Leadership Skills

• Political Savvy and Cultural Sensitivity• Capacity for Relationship Building• Excel at Systems Thinking• Conceptual Flexibility• Authenticity, Transparency, Integrity• Courage In Face of Difficulties

Beyond Expert Power Professional, Psychological, Spiritual Maturity

God Works In Our Imperfections

Solo Celebrity Leader a Superstitious Attribution of CausalityNew Understanding of the Distribution of Gifts in the

Mystical BodyError Correction Through Shared Discernment Accomplished Through In-Spiraton Within Our Human Condition

Dealing With New Virtual World

• Spontaneous “uncontrolled” Communications

• Example– 4 member team, 2300 individuals, 45000

messages (Gluesing, NSF Study)

• Requiring Network Leader as New Role

Virtual World-cont.“The Buzz”

• Who is talking?• Who are emergent sub-topic champions?• Who are network gatekeepers for summative

perspectives?• Who is not included but important?• What is technical, emotional, value content?

– Etc .– Critical Role of Network Leader

– Hopeful New Software

Concl: Discernment in Context of Global Leadership Must-

• Move Beyond “Success” to “Significance” – Include Meta Goals With Business Goals

• Impose a Degree of Order Through Step-Process Sequence– “Controlled Chaos”

• Demands Pooled Leadership Within a Diverse Team– “Exceed Capacities of Single Individuals”

• Requires High Level Psychological and Spiritual Development

Global Corporation Has a Critical Capacity and Role

Conclusion: A Warning

• More than Half the Time Strategic Decision-Making Fails– Assume from past practices– Under-attend stakeholder voices– Truncate Search Behavior– Do Not Bring to Bear Values

Difficulties Manifest in Best Organizations• Paul Nutt, Ohio State, 1999

The Foundation

I will say one more thing and please don’t forget it.Pray. Pray much.

Problems such as these are not solved by human efforts.

Pedro Arrupe, S.J.• “Final Address to Jesuits in Thailand”

• Essential Writings• p. 109

Abraham Joshua Heschel

We are God’s stake in human history.We are the dawn and the dusk;the challenge and the test.

How strange to be a (Chosen Child of God)and to go astray on God’s perilous errands.

We have been offered as a pattern of worshipand as prey for scorn,but there is still more in our destiny.

We carry the gold of God in our souls to forge the gates of heaven.