The Real Story Behind Australia’s 1983 America’s Cup Win

by Don McKenzie

The Adizes Institute is dedicated to helping executives and leaders gain a better understanding of what leads to success and what leads to failure. There is a complicated

The Australia II

The Australia II

web of different causes, symptoms and manifestations related to both outcomes.

I think the largest piece of the puzzle is making good decisions, and then moving those decisions into successful implementation. The best frameworks for decision-making and implementation, I have come across, are the frameworks of U.S. based, internationally acclaimed, management guru, Dr. Ichak Adizes.

I recently had the opportunity to spend time with Dr Adizes, learning the Adizes concepts and methodologies in greater detail.

My passion for the Adizes Methodology comes from my own personal journey with ups and downs, and with the roller-coaster of successes and failures along the way.

Dr. Adizes’s theories not only explain why “what happened, happened,” but they also provide a set of tools that business owners, executives and managers can use to predict success and failure ahead of time. The Adizes Institute uses this experience coupled with a range of tools to help business owners, executives and managers.

I also enjoy reading books and watching shows that are “the story behind the story.” Real life situations where you know the front end of the situation, and then you’re able to find out more about what was going on behind the scene.

This article blends ideas around effective decision-making and my love of “the story behind the story.”

And so the story begins…

During one brief discussion, Dr. Adizes asked me if I knew of Alan Bond. I responded “of course” as ‘Bondy’ is burnt into most Australians’ memories and our culture itself. He was the former sign writer, turned billionaire who won the America’s Cup, only to end up in jail for fraud.

For those who don’t know, the 1983 America’s Cup was the occasion of the first winning challenge to the New York Yacht Club, which had successfully defended the cup over a period of 132 years.

An Australian syndicate representing the Royal Perth Yacht Club fielded the Australia II, skippered by John Bertrand, against defender Liberty, skippered by Dennis Conner. Australia II won the match races to win the America’s Cup, ending the longest winning streak in sporting history and ending U.S. domination of the racing series.

Most Australians have some recollection of the euphoric scenes after Australia won the America’s Cup. As noted above, it was the first time the USA had lost the Cup in its 132 year history, and it was our humble Aussies that snatched the victory.

In one of the bathrooms of the Adizes Institute, Dr. Adizes pointed me to a large silver plate with an embossed sailboat and the words “Friendship, Sharing & Caring”. This was a gift from none other than Alan Bond himself, who allegedly (I only say that because Alan died in 2015, and so I can’t have a chat with him myself) credits Dr. Adizes and his ideas as a significant factor in the win.

Having this Australian artefact hanging in the toilet was a bit of a ‘shitty’ spot to me. The late Kerry Packer kept a copy of the $1.05 billion cheque Bond gave him for the 9 Network TV stations in his private toilet as well, so maybe it’s the thing to do with Bondy’s gifts.

I know why Australia won. It was just the winged keel… wasn’t it?

If you asked most people what the secret to the win was, they would quote the special winged keel designed by Ben Lexcen. By all accounts this was the main contributor, but I’ve sometimes wondered if there was something else.

This was the first time ever that the America’s Cup needed a 6th, let alone a 7th , race to decide it. If it was just down to the boat and its special keel, should Australia not have been more dominant? America was the greatest technological country in the world and certainly had a few tricks of their own.

Whilst the winged keel has its benefits, it also has its drawbacks. It works best when sailing upwind where stability and the ability to produce side force creates a speed advantage and greater efficiency. However, downwind there is additional drag and it’s not good in choppy seas, so it isn’t all beer and skittles.

To me, this means there was more to the story than just the keel.

So, what is the connection between Dr. Adizes and the fact that Australia won America’s Cup? The relevance really starts with Dr. Adizes’s philosophy and teachings on the role of management.

The loop of change, problems and opportunities, and the need to manage effectively.

Bond had attended lectures from Dr. Adizes in the U.S. where it was taught that the need to manage starts with change. Change in the market, change in the company, change in anything.  This change then creates problems and opportunities. Problems and opportunities are interlinked. A problem handled well creates an opportunity, and an opportunity managed poorly creates a problem.

Managing is about making decisions in response to problems and opportunities, and then implementing those decisions. This creates more change, which in turn creates more problems and opportunities. It’s a continual loop. Change only stops when you’re dead.

For companies, and even in families and relationships, where there’s not a lot of change, there aren’t too many problems.  You generally see a calmness and things just going on their merry way. In high change environments, however, there are lots of problems and opportunities, and therefore a lot of decisions and management.

In high change environments, you often see a lot of conflict too. This conflict is inevitable because people have different styles, interests, and experiences that lead to differences in approaching and dealing with the problem or opportunity.  These differences drive conflict between people and the conflict escalates relative to the size of the problem or opportunity.

However, if you can harness the conflict and make it positive, a complementary team of differences will lead to superior decisions. This is because the same decision is being looked at from different angles and perspectives based on people’s styles, interests and experiences. These differences bring enhanced thinking and create a 1+1=3 situation, when compared to someone just on their own.

I find that people often prefer to hire people they like, or people like them. Often subconsciously rather than consciously. Why? I think most people have a genuine dislike of conflict, and similarities ensure low levels of conflict. But then you end up with similar styles, approach and perspectives which is not optimal.

As has been said: “When two people think alike, one is unnecessary.”

Complementary team decision-making also leads to faster implementation, as more of the potential future problems come to the surface there and then, before a decision is finalized. Potential issues are discussed, resolved and built into the decision itself, rather than being stumbled upon during implementation.

As wonderful and easy as this sounds, the differences themselves create real conflict, which can be incredibly destructive. I’m not going to go into how you properly harness conflict to create amazing results in this article. Suffice to say, it can be done by following a few steps which I’ll leave for another day.

Ok, so a complementary team makes better decisions, which can be implemented faster if conflict is harnessed. So what?

Bond explained to Dr. Adizes that in yacht racing, if you can make a correct decision and implement it just one second quicker than your competitor, then you can create an advantage of over a boat length.

If you do this repeatedly, you’ll be very hard to beat.

If you can make better decisions and implement those decisions faster than anyone else AND have superior technology, wow, you’re on to becoming a winner! Achieving superior technology doesn’t just happen. It starts with getting the right people, and those people then make good decisions, solve problems and exploit opportunities.

Once they hit the water, the seas and wind were always changing, which created new problems and opportunities for the crew. They could not control any of the problems created by Mother Nature’s changes. They could only react with decisions in light of these changes. The better and faster their reactions, the more successful they would be.

Bond understood that while he was the leader of the team, he couldn’t be on the boat with them giving directions, nor could he be there every second during design and construction. All he could do was create the environment for his team to be successful, whilst harnessing any conflict to ensure they made the best decisions possible.

To me, this is an important insight. 

Leaders should stop trying to control the things they can’t. They should become really good at creating the environment to empower their people, allowing them to react to change and execute great decisions.

This is what the Adizes Institute seeks to help its clients achieve. Spend less time giving direction, and more time building the organizational capability to deal with the change. Develop a broad, decentralized capability to make and implement decisions faster than your competition. If you do that, then you have the secret to long-term success.

In a documentary to mark the 30 year anniversary of the America’s Cup win, Bond gave a few hints on his ideals around differences and complementary qualities. When asked about the winged keel’s mastermind, Ben Lexcen, he said; “Ben was one of those people you meet, that was different and made a real impression.” He went on to say, “We needed Ben to complement our overall team”.

John Bertrand, their skipper, further complimented Bond and Lexcen’s partnership, harnessing their collective styles and experience of the crew. In the same documentary mentioned above, Bertrand and members of the crew give interesting interviews, which align with the broad concept of complementary styles, interests and experiences.

And so, after 132 years, a team from a humble little country known for beer drinking and kangaroo wrestling, took the America’s Cup home. Bond was able to build a complementary team that solved problems and exploited opportunities better and faster than their competitors.

Dr Adizes lamented that in the years after the win he warned Bond that he was on a destructive path with the self-driven, debt fuelled acquisition spree of highly unrelated businesses. But, the boost from being the guy that won the Cup catapulted his ego to such stratospheric heights that he was now invincible on his own. History shows this never ends well.

It’s highly likely that few, if any of the Australia II crew knew the name Adizes or how Bond had adopted his approach. They may, but in any case Dr. Adizes has the memory, Bond’s friendship, the silver plate and the pictures to prove it, and that’s enough for me.

Adizes Success Stories

A Client Case History

Prepared by Clark Wigley, Certified Adizes Symbergetic Consultant

A $600 million 3,000-person engineering services company was a prematurely aged 043edd8c-c96d-43ed-b148-62f09864c1fdAristocracy. Financial performance was excellent, but senior leadership was concerned with long-term declines in growth, and long-term customer complaints about too much red tape, higher prices, and declining quality.

Adizes was engaged to work with senior leadership to reorganize the company.  Four key objectives were set for the assignment;

  • Improve the quality of work and value delivered to customers.
  • Improve workforce productivity, reduce redundancies, and reduce unproductive conflict.
  • Increase both the quality and speed of decision-making.
  • Rejuvenate growth.

The assignment was a challenge because the organization was unionized and highly resistant to change.  An internal effort to reorganize the company 2 years prior had failed due to strong resistance from the workforce and key customers.   A $5M 3-year investment in Lean Six Sigma had also failed to produce any material impact on organizational behavior.

This two-year engagement involved work in seven main areas:

1. Governance.  The first step was to establish a POC (a Participative Organizational Council) to direct the transformation program at the enterprise level.   This team was carefully composed to include key union leaders plus experts who deeply understood the needs and wants of key customers.  Similar POCs were started in each of the major business units.  The POCs were responsible for executing the organizational transformation projects, which included successfully implementing the new structure.

2. Strategic Planning.  The next step was to get the top 30 leaders reconnected with the reality of their marketplaces and the six key customers that generated 80% of their revenues.   This step created a strong sense of urgency to reverse customer discontent and begin the process of changing to a customer-drive culture.

3. Syndag Workshops. To create widespread energy for change and dissatisfaction with the status quo, 15 Syndag workshops (two to three day workshops where all top management and those it needs to implement change, like trade unions, collaboratively diagnose the company) were held.  These engaged a critical mass of over 400 key movers and shakers from all areas and levels in the enterprise transformation effort.  This step established widespread understanding and acceptance of the need to reorganize.

4. Reorganization.  The reorganization project began with the top-level design, which was systematically cascaded down to lower levels.  Rather than mandating a one-size-fits-all structure, the POC in each business unit was allowed to design the structure best suited to its mission.  In addition to architecture, each design team spent a significant amount of time discussing responsibilities, accountabilities, delegation of authority, and the business rules that would define how the new organization would work.  With this “wind tunnel testing” approach, most of the bugs were addressed prior to implementation.  The new organization went live at the beginning of the fiscal year; the customers loved it.  The expected push-back from the two unions never materialized and the transition to the new structure was successfully completed relatively painlessly over a 9-month period.

5. Metrics.  The organization had extensive financial metrics, but very little visibility on non-financial key performance measures.  A small set of common leading and lagging KPIs were designed and implemented to provide a more balanced view of enterprise performance.

6. Incentives.  The existing bureaucratic annual review process was replaced with a new process wherein each employee was measured and incented based on 3 to 5 stretch goals that were set and evaluated quarterly.

7. Culture. All work was conducted in a way that deliberately and systematically drove the organization to be to become more customer-driven and more innovative, and to build a strong and robust culture of mutual trust and respect.

Collectively, this work produced what one senior executive described as “the most important changes we have made in the last 35 years.”  The senior executive who guided the transformation effort was subsequently promoted to lead a $6B 18,000-person organization.  Several other senior and mid-level managers who took a leadership position in the transformation were also rapidly promoted.

Welcome Our New Employees!

Introducing Jefte Lozano as the Adizes Institute’s Executive Business Development Manager for Adizes USA.

Please join us in welcoming him! jefte

As the business development manager, Jefte is responsible for both client acquisition and brand development for the USA market. Jefte works closely with Pavel Golenchenko, Managing Director for Adizes USA, to develop new strategies for growth.

Jefte studied at the University of Central Oklahoma with a focus on sales, marketing forensic accounting, and forensic science. Jefte has also attended many top sales and leadership trainings, such as those hosted by Marshall Goldsmith, Brad Sugars, Miller Heiman, ActionCoach, Tony Robbins, and John Maxwell. He believes continuous education is essential for personal growth.

Prior to joining the Adizes Institute , Jefte worked with companies such as DuPont, Microsoft, and ActionCoach, offering Business development and marketing expertise. 

Introducing Holly Brandon, the Adizes Institute Headquarters’ new Office Manager.

Please join us in welcoming her!

hollyHolly monitors and ensures that all procedures and operations are efficient and effective on a day-to-day basis. She also maintains the appearance and functionality of the Adizes office in Santa Barbara.

She is involved on an international level with the other Adizes locations, helping to facilitate the fulfillment of their office personnel’s needs. Her enthusiasm for her role has grown with learning the Adizes Methodology and applying its principles daily.

Holly Brandon has a great love of continuous learning and strongly feels that knowledge is power. Prior to working at the Adizes Institute, she studied at Santa Barbara City College, earning an Associates in Liberal Arts: Emphasis in Biomedical Science, an Associates in Liberal Arts & Sciences: Arts & Humanities Emphasis, an Associates in Liberal Arts & Sciences: Science & Mathematics Emphasis, and an Associates in Liberal Arts & Sciences: Social & Behavioral Sciences Emphasis.

Introducing Gabriela Castellanos, Marketing and Administration Coordinator for the Adizes Monterrey Office

Please join us in welcoming her! gabriela

Gabriela joined the Adizes family on September 19, 2016.

Prior to joining Adizes she worked for publicity and marketing agencies in Monterrey, Mexico for three years as a key account executive, and as a product and strategic relations manager.

Gabriela earned a degree in marketing at Tec de Monterrey (ITESM), and completed her masters degree while living in Seville, Spain. She worked afterward at the San Francisco de Paula Institute as part of the Social Sciences department. She now brings a wealth of experience to Adizes Monterrey.

Adizes Introduces 6 Smart New Concepts

Literally the Biggest Thing to Happen since Teams were Invented!

You’re in a position to lose.

Well, in a position to miss out, anyway. You see, the Adizes Institute is holding two separate, phenomenal, 7-day, intensive seminars designed to help you improve your ability to lead highly effective teams.

Picture1“This workshop is especially valuable for key executives, corporate leaders, and individuals seeking insight into how to successfully manage change in the public, private, and governmental sectors.” – Shoham Adizes

Fact: Just so you know, spots are already filling up, and space is limited. You may discover, as you read through the benefits of attending one of these exciting seminars, that you’ll want to call or E-mail to sign up as soon as possible to reserve your seat.

Each seven-day, in-depth seminar provides detailed skills and techniques on how the Adizes Symbergetic™ Methodology can be applied to the decision making process. As organizations succeed, work grows in scope and complexity.

This calls for leaders who understand how individual problems interrelate with other problems and opportunities within an organization, and how to solve them holistically. This workshop is specifically designed to address the process of managing collaborative teams where mutual trust, respect, and the ability to constructively harness conflict are the norm.

Many of the concepts can also be applied to individual decision-making and communication.

If you can close your eyes and imagine yourself as a change leader, who seeks unifying constructs that can positively influence your organization, your community, and individual lives along the way … one of these transformational seminars is for you.

2

“This is a ‘how to’ seminar that you will not want to miss if you are looking for effective ways to apply the Adizes methodology.” – Barry Bowater, Advisor to the President, Trinity Western University

Concepts to be examined include:

1. How to differentiate between the causes, symptoms and manifestations of a problem and develop the correct strategy for addressing them in order to solve the problem holistically.

2. How to identify which decisions should be made by an individual and which decisions should be made by a team.

3. How to identify who needs to be involved in a problem solving team in order to assure effective implementation.

4. How to identify different sources of conflict in a problem solving team as they come up, and how to make the sources of conflict constructive.

5. How to integrate a team through the decision making process, so that all members are excited about and support the solution.

6. How to allow for participative management without undermining management’s authority.

Leading Highly Effective Teams Symbergetically

What do you think will happen, when you attend a seminar that screams “value,” that utilizes informative lectures combined with cutting-edge resources and teaching methods such as videos, group discussions, and team decision making? How much do you think it’s worth to be able to bring a list of real-life problems and opportunities from your business or organization, and then have real-life tools, skills, and techniques applied to those situations?

That would be worth a lot. Right?

Because you’ll get an incredible illustration of how to resolve problems and how to make the most of opportunities in a way that is directly meaningful to you and to your organization’s specific situation.

These seminars are very intense and provide an enormous amount of useful and insightful information that is readily applicable upon completion of the workshop.

Because of how intensive these workshops are, it’s important that when you decide to participate, that you commit yourself fully. You have to be fully present and available for the entire duration. You’ll be given homework and you’ll be expected to study beyond the time limits of the seminar you choose to attend.

Now Pay Attention: In order to attend this training, you must demonstrate your knowledge of basic Adizes management theory by passing exams on “The Roles and Styles of Management” and “Mastering Change.”

So, these Integrator Training seminars are not for everyone.

By now, however, if you’ve ever attended a seminar on Adizes Theory, you should be saying to yourself that attending one of these incredibly powerful seminars on team leadership makes sense. That’s because they literally hand over to you the next set of highly effective tools in your management toolbox.

If that’s you, call +1.805 565.2901 or E-mail us at info@adizes.com. You’ll talk with someone great who will ask you if you want to attend the Leading Highly Effective Teams Seminar from October 19-26, 2016 in Santa Barbara, CA?

Or, really, do you prefer to attend from January 25 – February 1, 2017? (Also in Santa Barbara, CA.)

Of course, you’ll tell the person on the phone which dates you prefer. But listen closely, space is limited and it’s first come, first serve.

Or, in this case, first call, first E-mail, first reserve.

So, when you think about how much value you’re going to get out of it, you’ll want to call or E-mail as soon as possible to ensure you don’t literally hand your seat over to someone else!

Remember, there are literally thousands of other people reading this right at this very moment. So rise above the competition, take action, and get on the phone or E-mail us right now to reserve your seat.

Call +1.805 565.2901. E-mail: info@adizes.com

You’ll be glad you did.

“This seminar gave me a very detailed road map for running problem solving teams. After going through this program I understand why the Adizes Methodology is lauded as one of the top in the world.” 

– Greg Mathers, Riga Business School, Accel Performance Consulting

Are you following the Adizes Institute on Twitter? If not, why not?

It’s super easy. Find @adizesinstitute and click on “follow.”

It’s that easy!

Upcoming Adizes Events

1. It’s not upcoming, it’s already passed, but it should be mentioned.

Dr. Adizes recently gave a lecture to ROLF, the largest car dealership in Russia on July 27, 2016.

2. On August 13, 2016 Dr. Adizes will be speaking on Zen Philosophy and Management in Kiev, Ukraine via Skype.

Start Time:

             8:00 PM EEST (Asia/Beirut)

 End Time:

             9:00 PM EEST (Asia/Beirut)

Event Location:

Ukraine

3. On October 13-14, 2016 Adizes will hold its Breakthrough to Prime Workshop in Houston, Tx. Pricing is $1,395 per person. There is an early bird discount of 5% if you register by September 2016.

 Also Multiple Team Member Discounts:

10% discount for 2 participants

15% discount for 3 participants

20% discount for 4 participants

Register Here Now

4. From February 9-11, 2017 there will be Adizes Training Lectures.

Instructed by Dr. Ichak Adizes and Shoham Adizes.

The last day to register is December 5, 2016 (if seven people do not register the course will be cancelled). The cost is $2,500 per person and is 3 days.

  Start Time:

   7:00 PM EEST (Asia/Beirut)

 End Time:

   3:30 AM EEST (Asia/Beirut)

   Event Location:

 Carpinteria

Are you following us on Linkedin.com? We post relevant content as well as exciting updates you won’t want to miss. If you’ve got a linkedin account (and you should), then head over to our company page at:  https://www.linkedin.com/company/66597 and click “Follow” in the right-hand corner.

Avoid the Founder’s Trap in Your Organization

By Mark Rittmanic

Founder and CEO, ForteONE

3This article first appeared on Entrepreneur.com on July 20, 2016.

Can corporate organizations and life-forms be similar enough in nature that they both undergo a natural lifecycle with predictable stages and similar patterns of growth and behavior? Dr. Ichak Adizes, author of Corporate Lifecycles, believes so.

Both are created, grow, live, decay and die. We’re familiar with this process in life-forms, so it is their counterparts-the corporations-that truly grab our interest. The successive stages of a corporation include:

  • Infancy,
  • Go-Go,
  • Adolescence,
  • Prime,
  • Fall,
  • Aristocracy,
  • Recrimination,
  • Bureaucracy and
  • Death.

For the purpose of this post, we’ll focus on the Go-Go stage because it is during this stage that the Founder’s Trap manifests.

The Founder’s Trap is a disease.

According to Dr. Adizes, every era in human history has specific diseases that organizations suffer from.

“When I say organizations, I have in mind empires, movements, schools of thought, for-profit-organizations. Many organizations were born, grew to some point, got into a trap where there was no way out and disappeared. The cause for this is a disease called Founder’s Trap,” Dr. Adizes says.

What is this disease?

Following a company’s infancy, an organization enters the Go-Go stage. A Go-Go organization is a company that has a successful product or service that has rapidly growing sales and strong cash flow. The company is not only surviving, it’s thriving. Key customers are raving about the products and ordering more. Even the investors are starting to get excited.

With this success, everyone quickly forgets about the trials and tribulations of infancy.

Go-Gos feel they can succeed at everything. It is often considered a time when the founder’s vision is readily unfolding.

The Founder’s Trap begins when the Go-Go organization cannot separate itself from dependency on the founder. Symptoms include the founder refusing to delegate effectively or hire the talent needed to grow. (He wants to but at the same time is threatened by it. Editors note)

The needs of an organization change once the Go-Go stage ends and the Adolescent stage begins. Things may slow down in the organization compared to the height of the Go-Go stage. The decisive decision-making is no longer emergency caliber.

In this stage, the organization matures and looks to grow successfully with shared authority and shared responsibility. If the founder refuses to relinquish these aspects of control, the organization is mired in the Founder’s Trap.

Avoid the Founder’s Trap.

Is your organization at risk of the Founder’s Trap? It’s easy to determine if you ask the following questions.

  • Does the founder fear losing control?
  • Will the founder maintain commitment?
  • Can the founder let others lead, and inspire the team in their own way?
  • Will the founder release equity to management?
  • Is the founder committed to a succession plan?
  • Can the founder get out from the camera’s spotlight?
  • What will the company require from the founder at a later stage?

Are you capable of avoiding the trap?

Ed Fernandez, venture capitalist and former BlackBerry executive, has identified three capabilities leaders need to have to avoid the trap.

Can you become a storyteller? Empathy and credibility, combined with your ability to articulate a narrative around the necessary changes are part of a continuous process of rebuilding expectations and generating hope.

You can change fortunes by channeling your inner fortune teller. Can you anticipate the moment when the organization will outgrow you? If so, plan accordingly, and prepare to release control for the greater good of the organization.

Can you transition from selfish to self-aware? Self-awareness is essential. What are your limitations and your true motivations? It is imperative for you to detach yourself from your company, embracing it as an independent entity that has its own needs to grow and prosper.

Set your organization free.

So what does Dr. Adizes believe is the best way to get out of the trap?

According to Dr. Adizes, founders should bring someone in from outside during the transition between Go-Go and Adolescence, not before and not after that. This is the most difficult transition in the corporate lifecycle because the changes are so fundamental, and the founder often appears to be an obstacle.

To get out of the Founder’s Trap, the founder must restructure the company with outside help (first). This process is best done by implementation consultants with an expansive range of skills and prior executive and ownership experiences.

What’s next?

To avoid the Founder’s Trap, an organization needs to clearly communicate responsibilities and authorities that further its strategies. Or, in other words, it must distribute the founder’s responsibilities.

In addition to building a more valuable company, the leader’s job is to build a strong management team to address issues and distribute accountability. A quality management team is required to succeed into the Adolescent stage. The founder must ensure the right people are in place to take the company to the next lifecycle.

The day will come when your Go-Go strengths are no longer a priority. If you want a legacy, treat your company like you would your own growing child – with the understanding that your goal is to make the little one self-sufficient long after your guidance diminishes.

Note: You may wish to read more on this topic by picking up a copy of Managing Corporate LifecyclesHERE

Look for Well-Defined Outcomes

“The reason most people never reach their goals is that they don’t

define them, or ever seriously consider them as believable or

achievable. Winners can tell you where they are going,

what they plan to do along the way,

and who will be sharing the adventure with them.”

– Denis Watley

 Integration vs. Disintegration

Dr. Adizes wrote in his book Managing Corporate Lifecycles that “if the cause for all problems is disintegration, the antidote for all problems is, by definition, integration.” (1)

What do you do when you find your respective organizations with many and varied problems? What do you do when you find your leadership teams in various stages of disintegration, with a lack of mutual trust and respect?

These were questions faced some forty years ago in Israel, before Dr. Adize’s methodology became relatively well-known in this Middle Eastern democracy. These were questions many CEOs and executives faced before they were asked to imagine what would happen if they integrated an exciting, new, and very effective methodology in their management practices.

What would happen if you were able to help a company or organization integrate the Adizes Methodology into its management practices? Just imagine how great it would feel to truly help change a corporate culture for the better, or to help a group of new managers learn concepts that can better themselves, their organizations, and their communities.

What do you want? You must have a clearly defined goal!

Today, although the Adizes Methodology is widely recognized in Israel, only a few individuals in Israel are actually certified Adizes Associates. Dr. Guy Kashi is one of them. He is a senior lecturer at various colleges and universities in Israel.

Dr. Kashi’s goal over the past few years was the integration of the Adizes Methodology into Israel’s academic and business worlds.

Through his efforts, he was recently appointed head of the Engineering-Management consulting specialization for Organizational Excellence in which students will be able to receive an M.A. This specialization is under the Organization Development and Consulting M.A program in the Israel College of Management Academic Studies. The new specialization integrates management skills and engineering qualitative methodologies. It will enable great opportunities for teaching Adizes methodologies and will promote other opportunities for cooperation between the Adizes Graduate School (AGS) and the College of Management Academic Studies (COLMAN).

A major goal of the courses in Engineering-Management consulting specialization is to provide students with a “toolbox” filled with a broad range of tools … from strategy to tactics … that will enable graduates to affect change management for the better.

Just a sampling of course titles include:

  • Organizational Sociology
  • Organizational Psychology
  • Organizational Integrative Diagnosis and Organizational intervention
  • From Strategy to Operational Excellence
  • Engineering Management Integration
  • Engineering methodologies for organization excellence
  • And more.

Starting in October, 2016 students who take the Engineering-Management Consulting Specialization for Organizational Excellence will find themselves with a master’s degree after taking courses that include Adizes concepts.

 “I am proud to be associated with Dr. Kashi who brings first class teaching of Adizes to Israel. I congratulate him on his well-deserved appointment.” – Dr. Ichak Adizes

“Dr. Adizes and I worked together in the academia many years ago, and I am very happy and excited to start a new cooperation between our academic institutions via the new Engineering-Management consulting specialization at the College of Management”-Professor Tishler, President of the College of Management Academic Studies

What are you doing to Bring Adizes to Your Community?

Note: Dr. Kashi, Adizes Certified Associate, is the head of the Engineering-Management consulting specialization in the Organization Development and consulting M.A program in Israel College of Management Academic Studies.

References:

(1)  Adizes, Ichak. Managing Corporate Lifecycles. Paramus, NJ: Prentice Hall, 1999. Print.

Have you read How to Solve the Mismanagement Crisis by Dr. Adizes? If not, you’ll get a glimpse into this work below. You can always grab a copy. Just Click Here!

How to Solve the Mismanagement Crisis

There are many companies that have never experienced a crisis. But there is only one crisis that is impossible to survive.

How to Solve the Mismanagement Crisis is a management bestseller, published in over 20 languages, with a fresh analysis of how to manage for profits and growth.

In this book, Dr. Adizes presents his approach to management by recognizing that the process is too complicated for any one individual to simultaneously perform all of the necessary roles. Readers may be reassured to discover that the so-called “perfect manager” exists only in textbooks.

The material presented in this book will enable business owners, CEOs, and executives to diagnose mismanagement, and offers strategies for treating it in its various manifestations.

Management – it’s harder than it seems. The fact that difficulties in management exist, why they arise and how to cope with them, is all explained in How to Solve the Mismanagement Crisis by Dr. Ichak Adizes. Dr. Adizes is one of the world’s most recognized thought leaders in business and management theory.

His book is a real bible on business and organizational management. It presents a method of management, which Dr. Adizes helped implement successfully in more than two thousand companies in over fifty countries around the world.

Companies that now follow the Adizes Method note that communication has become easier, problems are solved more easily and in a faster time frame, staff turnover decreased to a minimum, while productivity increased, as did profitability and market share. Additionally, the morale of staff increased with individuals actively working to collaborate and help one another.

Contrary to the popular belief that the success of the organization is dependent on a single individual who should be the “perfect textbook manager,” Dr. Adizes claims that there is no such person in existence. Ignoring this fact leads to a loss in both productivity and profits.

You see, management is too complex a process for anyone to hope that one person can perform all management functions equally well. Each function, each role, requires a special style – and definition of behavior in various situations. The problem is that these styles contradict each other. Therefore, a person may be able to play each role, implementing a different style, at different moments. However, he or she will never be able to embody all of the management styles and roles all at once.

Management Problems in Others

An organization’s management problems are always rooted in the people who are managing – or rather, in their inability to fulfill their roles. Dr. Adizes developed the idea that the fundamental role of management for any team, department, company, family, or even country, can be defined by just four basic functions. If an organization can develop these four roles, then it will be successful over the short as well as the long term. The understanding of these functions and how to develop them in an organization is therefore essential knowledge for management. These four management functions can be described in the following manner:

* P –  Producing results. Managers who are driven to produce results. What results? Satisfying customer needs. This manager is better able to focus on the basic reason for the existence of the organization, and to direct employees’ activities regardless of subject area (whether that’s marketing, engineering, or sales).

* A – While the Producing role focuses on what to do, the Administering role focuses on how to do things. This is the manager who plans, coordinates, monitors and controls the execution of tasks. In other words, the administering role is developed by those activities and functions that are directed at getting things organized, planned, scheduled, systematized, and generally under control by capturing the learning curve about how to do things right in processes, procedures, and systems.

* E – Entrepreneur. The manager-entrepreneur is the manager the initiates the process, is creative with events, and is a main drive behind the development of the company. This manager helps drive the organization to successfully adapt to change. This manager is one with foresight, vision, and is the one who sees things that others cannot see. This manager is willing to take more risks than others.

* I – Integrator. The manager-integrator focuses on the development of a cohesive team that makes the organization efficient over the long term. Organizations that are well integrated have a pervasive and persistent culture of mutual trust and mutual respect.

Management is a team game. Each player has his or her own set of skills and abilities. Together they form a balanced leadership team.

Improper Management Styles

When a manager does not fulfill any of the four managerial tasks/roles listed above (PAEI) he or she is actually mismanaging.

With that said, there are five styles of wrong management. Here’s how to recognize them.

The Lone Ranger

Recognizing the lone ranger is very easy: He is always swamped with work, which he does not delegate. He does not develop his subordinates and believes – in fact, he is absolutely sure – that only he can get results! Sooner or later, “The inner engine” of the lone ranger blows up, and he crashes. When this happens, he leaves behind confused and untrained personnel.  Even if he doesn’t crash and burn, the lone ranger prevents further development of valuable personnel.

The Bureaucrat

For the bureaucrat, rules are everything. If you call a company and they respond sadly that they just cannot do anything about your problem … they’re just following the rules … you can be sure that the company is a controlled bureaucracy. A major problem is that the bureaucracy is not focused on achieving company goals, but rather on maintaining set rules. Maintaining stability and certainty, suppressing initiatives and ideas is typical of these types of managers … and because of his or her actions, staff turns into passive cogs in a machine.  The worst thing for these types of managers is change.

Arsonist

The Arsonist-manager is an entrepreneur running amok. Under his manic style, the company is torn apart as he seeks to follow and implement mass trends and ideas that he believes should have been put into practice … yesterday. He must see that every employee is busy doing something. SOMETHING! Yet most of the employees are not occupied by anything because they don’t understand what to do to make their boss happy. This type of manager needs “yes” men, a cheer leading team, people who will cheer on and support his ideas. The company blazes ahead, but serious problems get ignored as staff focus on each of the boss’s new ideas. This inevitably comes back to bite the boss, and the company in the end.

The Super Follower

The most important thing for the Super Follower is that there are no conflicts in the company. These manager types have no ideas or goals of their own. Most of the time Super Followers spend time on meetings and discussions, always afraid to take the initiative and make a decision. Maintain the status quo is his motto. With him in charge, the Company may somehow move forward as long as the majority of staff maneuver and arrange everything. However, because there is no effective leadership from the Super Follower manager, as soon as the majority happens to be against something or does not achieve a desired result, the collapse of the company is inevitable!

Deadwood

The manager who is basically a pseudo-manager, who has not developed himself and can be compared to deadwood. They do not fulfill the management role. They often become managers through nepotism, or through some other connection. “He knew somebody, who knew somebody.” These types of managers are like a slow poison that can actually lead to the death of the company.

A Good Manager

A good manager has 9 important qualities. They are:

1. He can perform all four managerial roles, although he will not be able to perform all of them equally well. However, the good manager should be able to perform at least one of the four roles supremely well, and the others he should be able to at least satisfactorily perform.

2. He knows his own strengths and weaknesses. To successfully manage, he should be well aware of himself. He should know in which of the standard PAEI roles he is strong, and which ones he is relatively weak in. To know himself, the manager must establish contact with the outside world. He must truly hear and listen. To be a successful manager, one must be “in touch” with others.

3. He keeps in touch with others. He listens to criticism in order to better understand himself and what he does.

4. He has a balanced view of himself.

5.  He is strong and confident in his abilities. He does not shapeshift into someone else, at least in the short term.

6. He can effectively evaluate and recognize the excellent work of others.

7. He accepts thoughts and opinions on subjects when those thoughts may be wiser or more profound than his own.

8. He is able to resolve conflicts that inevitably arise when people with different needs are in the same management team.

9. He creates an environment conducive to learning. A good manager works to create a learning environment where perceived conflict is not a threat but is an opportunity to develop.

By now you should be saying to yourself that How to Solve the Mismanagement Crisis by Dr. Adizes looks like a book you’d like to read. Go grab a copy today. Just Click Here!

Q & A

At any given moment, during any particular day of the week, Adizes Associates are faced with questions coming from potential clients. Most of the time, these are the same questions that hundreds or even thousands of other clients have asked in the past. We have a ready and truthful answer for them. Sometimes, though a question gets asked that gives you a moment of pause. Here, we’re going to cover two in-depth questions and the compelling answers we believe are best for the described situations.

Without further ado then:

1. Jennifer Garcia, partner and CEO at Red Bamboo Marketing notes in an article published on Business News Daily that “Hiring and retaining employees and staff without giving away all of your profit (is a problem). The demands of this workforce seem bloated. The perks add up and affect the bottom line. There is a sense of entitlement that is driven by the lead of some large companies’ benefit packages. Most SME businesses cannot afford such perks.”

What advice would the Adizes Institute give to a CEO who has concerns like this?

Remember that money is only one of many possible ways to reward employees.  If you only focus on money you will end up overpaying your employees.  What are the other forms of reward?

There is the job itself.

When people are given the tools they need to do their jobs and they are able to take pride in their work, the work itself can be its own reward. So ask yourself, is the job I am asking my people to do enjoyable or is it frustrating?  How can I make it more enjoyable and less frustrating?

Another form of reward is power.

For example, in the Toyota production system any line employee can hold up the production line if they see a defect.  This type of power is a type of reward.  It shows people are trusted and provides the workers with a sense of the importance of their work within the greater system.

Another form of reward is association.

Working within a community where people work together towards a common purpose can be a significant form of reward.  Take for example gangs.  Low level gang members do not get paid well.  Their job is terrible but people join gangs for the association.  They want to feel like they are part of a family. The US Marines receive much of their reward from association.  This association is crafted through traditions, stories and activities designed to make the individuals into a single operation entity.  Ask yourself, what are we doing to create this sense of family within our organization?  Would a new employee immediately feel a sense of community when joining our organization?

Another form of rewards is mission.

This can be one of the most powerful forms of reward. Think of missionaries.  They do not get paid anything. There is no association. The job is not “fun” and they have no power, yet people regularly sign up to do missionary work.  Why?  Because the mission itself is the reward.  Ask yourself, are we indoctrinating our employees regarding the mission of our organization?  Are we making a compelling argument as to why what is are doing is so important to our customers or too the world at large?

A last form of reward, other than money, is status.

This can come in the form of a corner office, a special parking spot, a new title or even recognition amongst one’s peers. Many organizations invest in “non-monetary reward systems.”  These gold star, employee of the month systems are a type of reward.

The bottom line is that if you only focus on money as a reward you will have to over pay your employees and it will harder for you to gain profits.  If you develop all of the above reward systems you will find that you will have happier and more committed employees without having to break the bank.

2. Some say that speed is becoming the biggest challenge for CEOs in 2016 – whether it’s execution of ideas, changes in the market and consumer behavior, or the 24-hour cycle of news and social media. They suggest that the only answer to this change is for the business to increase the speed with which it responds to challenges.

From the perspective of the Adizes Institute, how can CEOs increase communication and the speed of workflow within the organization in light of these challenges?

The world is changing faster and faster and organizations must increase the speed at which they are able to react to those change.  But, changes causes disintegration and if organizations are not careful in how they change, they may end up falling apart.

It is no mystery that countries with higher rates of change have higher rates of divorce.  This is because change causes things to fall apart.  Changing fast is therefore only part of the answer.

We thus need to change together. In other words, a system, a methodology must be in place that encourages integration during change and that discourages destructive conflict that can sometimes naturally occur as a side effect of that change.

Has your company outgrown its management practices and systems? Is your company too reliant on you to make operational and strategic decisions? Do you feel that your organization is losing the innovative spirit it used to have?

If any of these issues are what you are experiencing in your company, you need to attend the Adizes Breakthrough to Prime Workshop.

Get more information right now.  Just Click Here!

New Employee Introductions

4Introducing Will Blesch as the Adizes Institute’s new Marketing Director!

Please join us in welcoming Will Blesch, who joined the Adizes Institute on June 1st, 2016 as the new marketing director. In the past, he has helped clients to brand and market their businesses, increasing recognition and reputation through online digital media, radio and television commercials, and through industrial presentations. He has also consulted and written for numerous companies and organizations in the United States, in the U.K. and in Israel as a top copywriter and branding professional. He is also the author of the children’s book, “Understanding Iraq Today: A Kid’s Guide to the Middle East.” He currently resides in Israel.

Introducing Amanda Williams as Dr. Adizes’s new Executive Assistant!5

We are very pleased to introduce Amanda Williams, who joined our organization on June 16th, 2016 and will be Dr. Adizes’ Executive Assistant at our global headquarters. Amanda is a graduate from the University of California at Santa Barbara where she earned her Bachelor of Arts in Philosophy with an emphasis in Law and Ethics, in addition to a minor in Black Studies. She has worked extensively in social services as an administrator for programs for the developmentally disabled as well as cognitively deficient individuals. Amanda enjoys reading and swimming in her spare time, and volunteers for her local Girl Scout Troop and Special Olympics in Santa Barbara.

Please feel free to reach out to Will and Amanda and introduce yourselves by E-mailing them at:

will@adizes.com and  amanda@adizes.com.

Have You Missed Dr. Adizes’s Latest Huffington Post Blogs? Here’s a few to whet your appetite! Just click on the blog title.

1. Old Age Over Time

2. The Benefits of Frustrations

3. Falling in Love and Staying in Love

4. Why Politicians Lie

5. The Rules Governing Growing and Aging

6. Businessmen vs. Artists

7. Where are Your Children?

Things are always going on at the Adizes Institute. We invite you to stay up-to-date with us by connecting on Linkedin, Facebook, or Twitter. Until next time, practice mutual trust and respect in your organizations, and in your lives!