LEADING CHANGE IN A COMPLEX WORLD 10 Leading Change in a Complex World: Transdisciplinary Perspectives

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  • LEADING CHANGE IN A COMPLEX

    WORLD Transdisciplinary

    Perspectives

    EDITED BY ANNI KANGAS, JOHANNA KUJALA, ANNA HEIKKINEN,

    ANTTI LÖNNQVIST, HARRI LAIHONEN & JULIA BETHWAITE

  • LEADING CHANGE IN A COMPLEX

    WORLD Transdisciplinary

    Perspectives

    EDITED BY ANNI KANGAS, JOHANNA KUJALA, ANNA HEIKKINEN,

    ANTTI LÖNNQVIST, HARRI LAIHONEN & JULIA BETHWAITE

  • Leading Change in a Complex World: Transdisciplinary Perspectives

    Copyright © 2019 Tampere University Press and the authors Edited by Anni Kangas, Johanna Kujala, Anna Heikkinen, Antti Lönnqvist, Harri Laihonen and Julia Bethwaite

    Layout: Villivisio, Lauramaria Laine

    ISBN 978-952-03-0844-5 (print) ISBN 978-952-03-0845-2 (pdf)

    Tampere: Tampere University Press Printed in Tampere, Finland by Kirjapaino Öhrling

    This work is licensed under a Creative Commons Attribution- NonCommercial-NoDerivatives 4.0 International License

  • 3 Leading Change in a Complex World: Transdisciplinary Perspectives

    Contents

    Contents CHAPTER 1

    Introduction: Leadership for Dealing with Complex Changes � � � � � � � � � �7 ANNI KANGAS, JOHANNA KUJALA, ANTTI LÖNNQVIST, ANNA HEIKKINEN & HARRI LAIHONEN

    Part I Complex World 25

    CHAPTER 2

    Stakeholder Engagement in the Generation of Urban Ecosystem Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29

    ANNA HEIKKINEN, JERE NIEMINEN, JOHANNA KUJALA, HANNELE MÄKELÄ, ARI JOKINEN & OUTI LEHTONEN

    CHAPTER 3

    Organising Complexity: Creating Boundary Objects for Sustainable Urban Development � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �  45

    ILARI KARPPI & JARMO VAKKURI

    CHAPTER 4

    Security Dynamics: Multilayered Security Governance in an Age of Complexity, Uncertainty, and Resilience � � � � � � � � � � � � � � � � 67

    TAPIO JUNTUNEN & SIRPA VIRTA

    CHAPTER 5

    Supporting Longer Working Careers in Organisations: Challenges and Complexities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 87

    HANNA SALMINEN

    CHAPTER 6

    International Taxation and the Complex Case of Digitalisation � � � � � 103 MARTTI NIEMINEN

  • 4 Leading Change in a Complex World: Transdisciplinary Perspectives Contents

    Part II Relational Leadership 119

    CHAPTER 7

    A Stakeholder Approach to Value Creation and Leadership � � � � � � � � 123 JOHANNA KUJALA, HANNA LEHTIMÄKI & R. EDWARD FREEMAN

    CHAPTER 8

    Leading Change: A Customer Value Framework � � � � � � � � � � � � � � � � � � � � 145 MIKA YRJÖLÄ, HANNU KUUSELA, ELINA NÄRVÄNEN, TIMO RINTAMÄKI & HANNU SAARIJÄRVI

    CHAPTER 9

    Conflicts in Leading and Managing Change: Towards a Reflexive Practice � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 165

    PAULA ROSSI

    CHAPTER 10

    Evaluation as a Tool for Leading Change � � � � � � � � � � � � � � � � � � � � � � � � � � � 183 PASI-HEIKKI RANNISTO & ANNA SALORANTA

    CHAPTER 11

    Leadership That Drives Social Change With Performance Measures � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 201

    TOMI RAJALA

    CHAPTER 12

    Presidents, Institutions, and the Quest for Coherent Leadership � � � � 223 TAPIO RAUNIO

    CHAPTER 13

    Company Directors’ Key Duties and Business Judgment Rule � � � � � � � 245 JANNE RUOHONEN

  • 5 Leading Change in a Complex World: Transdisciplinary Perspectives

    Contents

    Part III Dynamic Change 259

    CHAPTER 14

    Consumer-Citizens as Leaders of Change: The Case of Food Waste � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 263

    ELINA NÄRVÄNEN, MALLA MATTILA & NINA MESIRANTA

    CHAPTER 15

    Can Abstract Ideas Generate Change? The Case of the Circular Economy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 281

    ERKKI-JUSSI NYLÉN

    CHAPTER 16

    Leadership for a Pluralistic Order? Assessing BRICS and Development Finance � � � � � � � � � � � � � � � � � � � � � � � � 301

    MARKO JUUTINEN

    CHAPTER 17

    Megatrends in the Insurance and Financial Sector � � � � � � � � � � � � � � � � � � 321 RAIMO VOUTILAINEN & LASSE KOSKINEN

    Afterword 341

    CHAPTER 18

    Leadership for Change: How Did We Get There and Where Do We Go From Here? � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 343

    ARJA ROPO

    Contributors � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 357

  • 7 Leading Change in a Complex World: Transdisciplinary Perspectives

    Introduction: Leadership for Dealing with Complex Changes

    CHAPTER 1

    Introduction: Leadership for Dealing with Complex Changes ANNI KANGAS, JOHANNA KUJALA, ANTTI LÖNNQVIST, ANNA HEIKKINEN & HARRI LAIHONEN

    The world is changing rapidly. Many contemporary change processes are increasingly complex. The effects of climate change, urbanisation, ageing societies, the dynamics of global security, or creation of sustainable conditions for business development are all phenomena that cannot be made to fit any simple model. They have a number of boundary-spanning components and are dynamic and open to their environments. This means that leaders must possess new kinds of knowledge and skills to understand and deal with such complex phenomena.

    To respond to the needs of various kinds of leaders operating in these complex environments, this book develops a framework for leading change. This approach is here called the Leadership for Change (LFC) framework and it builds on the following three ideas: 1. Many contemporary change processes are complex and systemic. J This highlights the capacity to think across traditional institutional boundaries and the ability to see patterns and structures beyond specific elements and events. 2. Issues and problems crossing traditional institutional boundaries cannot be resolved by a single actor or sector. Governments, businesses, civil society actors, citizens and consumers must work together, negotiate, and agree on novel ways of doing things. J This stresses the need to understand how different societal sectors and actors function and make sense of the world, and how they can work together. 3. Complex environments are marked by ambiguity and uncertainty. J This emphasises the capacity to embrace uncertainty and use various sources of information and knowledge to create a shared understanding of the situation at hand.

  • 8 Leading Change in a Complex World: Transdisciplinary Perspectives Introduction: Leadership for Dealing with Complex Changes

    With the growing complexity and ambiguity of leadership contexts, leadership functions have become dispersed. Leading change in a complex world is often a collective effort taking place both with and without formal leaders. This book is aimed at leaders as well as analysts of leadership examining contemporary change processes from various positions. The book is not confined to what is known as leadership studies. It instead examines leadership from a transdisciplinary perspective. Transdisciplinarity means taking a holistic approach to leadership; it not only uses knowledge from different disciplines but displaces disciplinary thinking in its examination of leadership and change (e.g., Aalto, 2012, 16–19). The transdisciplinary approach is developed here by examining and analysing various phenomena crossing the traditional fields of business and management, public administration, and politics. Instead of taking disciplinary discussions as the point of departure, the chapters presented in this book are united by a set of concepts which provide a framework for enacting and analysing leadership: complex world, relational leadership, and dynamic change (see Figure 1).

    Complex world refers to the idea that the issues and systems comprising society can be placed along a continuum from simple to complex. Relational leadership points to the idea that leadership cannot be confined to simple leader-follower relationships. It is not restricted to a single formal leader or small group of leaders. Relationality also appreciates the wider social and environmental context in which leadership is enacted. In contrast to planned change, which is linear, organised, and efficient, dynamic change appreciates the non-linear, trans-scalar, and less