IS SYSTEMS THINKING A HOLLOW RITUAL? The Leader’s New Work: Building Learning Organizations Peter Senge • Current Management System – Let the leadership do the thinking – Leadership by control – Leadership by force of rewards or will • What is needed is a System which: – Depends on superior learning – Can think at all levels not just the highest LEARNING CATEGORIES • ADAPTIVE – Coping by responding to the environment • GENERATIVE – Expanding our capability, it is about creating not just coping. GENERATIVE LEARNING • Different ways of looking at known problems • Grasping systemic source of problems not just symptoms • Leaders responsible for everyone’s learning • Leader creates tension between where you are and where you need to be. NEW ROLES FOR LEADERS • DESIGNER – Clarify visions, values and purpose – design policies, strategies and structures – Create learning processes • TEACHER – Help people gain insight into current reality • STEWARD – Serve first • Create opportunities for people to contribute to organizational purpose NEW SKILLS • • BUILDING SHARED VISIONS SURFACING AND TESTING MENTAL MODELS – Leaps of abstraction – balancing inquiry and advocacy – Distinguishing theory from application – Recognizing defensive routines • SYSTEMS THINKING – Seeing Relationships, moving beyond blame, distinguishing types of complexity, focus on right areas, and avoiding symptomatic solutions The Many Faces of the Corporate Code Lisa H. Newton • A code must meet three specifications – Creation through participation – Must be consistent with general ethical principles and dictates of conscience (respect for individual, commitment to justice, sensitive to rights of all affected) validity – Must reflect the actions of senior managers and leaders. authentic CODES FAIL WHEN • They are created in a vacuum • Do not seem valid to those asked follow them • Do not seem authentic Managing for Organizational Integrity Lynn Sharp Paine • CLEAR AND PRESENT NEED FOR CORPORATE CODE OF ETHICS – Business is perceived as incapable of ethical conduct – Market requires efficiency not ethics – Board of Directors and top management responsible for balancing conflicting demands WHY CODES ARE VIEWED AS VIABLE • • • • Academic skepticism View as created by a power elite Subject to bias of senior officers Rules to not apply to those at the top CREATION OF CODES THAT WORK • PRINCIPLE OF PARTICIPATION – Developed through maximum involvement • PRINCIPLE OF VALIDITY – Must be consistent with accepted dictates of conscience • PRINCIPLE OF AUTHENTICITY – Code must be followed by senior management MANAGING FOR ORGANIZATIONAL INTEGRITY Lynn Sharp Paine • COMPLIANCE BASED CODES OF ETHICS – Use legal compliance as the standard. This mark is to low – Compliance overemphasizes the threat of detection and punishment but does not foster moral discipline Hallmarks of an Effective Integrity Strategy • Guiding values make sense • Senior leaders are committed, credible and willing to take action • Values are integrated into culture • Company systems and structures reinforce values • Managers have the skills and ability to make ethical daily decisions • Note Page 538 for difference in compliance and integrity