GB500.PolarityManagement.portfolio

BUSINESS PERSPECTIVES

Polarities and Polarity Management Examining the dynamics in managing polarities

Prepared by Try L. Muller

June 2009

A. The Role of Polarities To understand polarity management, we must understand what polarities signify in the business world. In its simplest form, the term polarity denotes “interdependent opposites” (Stevenson, 1999). So, in business, a polarity presents us with a problem involving two opposing factors that depend on each other to achieve optimal output. In these situations, “polarities become more complex and more unsolvable with each attempt at a resolution” (Rittel, 1972, p. 392). This is attributed to the inability to focus on addressing one factor without risking the adequacy of its opposing, dependent counterpart. In his book, Polarity Management: Identifying and Managing Unsolvable Problems, Barry Johnson puts the complexity of these situations into context when he compares polarities to “paradoxical dilemmas that present us with answers that may be right today and wrong tomorrow” (Johnson, 1992, p. 229). Hence, polarity management addresses the dilemma of finding balance and correlation between two interdependent, opposing factors which are both necessary to a company’s performance.

B. Understanding Polarity Management In polarity management, one does not choose between options “A” or “B”. By focusing on either “A” or “B”, one risks the effectiveness of its opposing counterpart. In their book, Built to Last, James C. Collins and Jerry I. Porras call this dilemma, “the tyranny of the OR” (Collins and Porras, 2004, p. 43). This is the belief that one cannot live with two contradictory ideas at the same time (Collins and Porras, 2004). Collins and Porras (2004) refute this notion when they observe many “highly visionary companies and leaders liberating themselves with the genius of the AND” (Collins and Porras, 2004, p.

45). In putting this to practice, business leaders use strategic planning to manipulate and 2

balance both “A” AND “B” instead of choosing between “A” OR “B”. This is the essential function and practice of polarity management. The ability to manage and balance opposing issues that are dependent on one another— avoiding functional inefficiency— is a keystone quality of companies achieving optimal performance.

Polarity Map Cooperative Progress Leader exercises circumspect decision-making

Team exercises circumspect decision-making

• Accountability rests on the leader’s shoulders • Leader is responsible for all outcomes (good and bad) • Very quick decision-making • Leader is at the forefront to resolve emergency situations

• Multiple perspectives and more knowledgeable input wit decision making • Group awareness of negative outcomes (no surprises) • More accurate understanding of situations

Autocratic Decision-Making

Participatory Decision-Making

&

No team input in decision-making

Lack of team leadership

• Lack of circumspect decisions due to one input • A weakening of group morale/effort due to lack of responsibilities • Lack of leader credibility in decision-making due to non-positive outcomes • Lack of consultation when negative outcomes effect group members

• Slow, time-consuming decisions • Inability to efficiently come to solutions • Insecurity due to members’ uncertainties • Responsibilities and tasks not assigned to appropriate members

Dysfunctional Business

A. Autocratic Decision-Making: The polarity map illustrates the dynamics of balancing autocratic (a leader possesses all power) and participatory (all members make 3

contributions) decision-making. The map shows the strengths and weaknesses of each method. We see that both autocratic and participatory management are necessary for the functionality of team production. However, focusing solely on one method would completely cripple the dynamics of the entire team. If one was to be completely autocratic, he may take the burden of decision-making off the members. Consequently, team members would begin to feel insignificant and performance would suffer. Even worse, the leader may lose credibility should results not be what the group expects.

Autocracy involves minor communication and is most effective in a less pro-active environment or in the face of emergency.

B. Participatory Decision-Making: The polarity map favors participatory decisionmaking because it is all-inclusive and its downfalls are more manageable. Multiple perspectives and more accurate assessments are the strongest contributions of participatory management to this polarity. Yet, there is the risk of uncertainty and inefficient use of time in making decisions. A more significant risk is the inability to match group members with appropriate tasks. Thus, we can now see how autocracy blends these two things together to makes the process amenable for a management team.

Applying Polarity Management to Your Top Management Team A. Defining the difficulty: Polarities are in abundance and cause long and short-term problems. First we must identify the problem and the factors that are causing it. Ask these questions: 1. Is it a problem that needs to be managed or solved?

2. Are there two opposing factors?

2. Do these two factors act interdependently?

3. Does choosing one over the other present advantages and disadvantages or 4

potential long or short-term repercussions?

If one can answer “yes� to these questions then it is time to move forward to putting the problem and its issues into a logical breakdown of how to manage the situation.

B. Managing the polarity: Put the polarity into a Polarity Map. One must be able to map the polarities and predict their movement in order to understand how accentuate the positives and reduce the negatives. The point of the polarity map is to visualize problems ahead of time and strategically plan to make adequate adjustments. Once these factors are put on paper, make note of the action items that need to be fulfilled in order to stay on the positive end of both poles. Also, you need to make note of how to recognize when the management of the polarity is starting to move down to the negative end of the pole.

C. Implementation: Polarity management involves integrity to pursue the action items pertinent to positive outcomes of the managing the problem. Always look for new ways to catalyze positive change in the strategic process. Begin to take a new perspective on strategic planning. In implementing strategies, always ask whether the problem can be solved? Or does it need to be managed?

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References Collins, J. Porras, J. (2004). Built To Last. New York: Random House Johnson, Barry. (1992). Polarity Management: Identifying and Managing Unsolvable Problems. Amherst, MA: HRD Press Rittel, H. (1972). On the Planning Crisis: Systems Analysis of the ‘First and Second Generations’ In Bedriftsokonoman. No. 8 pp. 390-396.

Stevenson, H. (1999). Polarity. Retrieved June 4, 2009, from Cleveland Consulting Group, Inc. Http://www.cleveland consultinggroup/articles/polarity.htm.

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