Cranfield School of Management Interview: David Butcher Smart Management: Using Politics in Organisations SM So, David Butcher, I want to look at Smart Management and what prompted you to write the book with Martin Clarke. DB Well, I suppose the most important reason Steve, is that we kept bumping up again, and again and again for years on end against managers with the experience that what formal organisation was all about and how it should work, was not what they experienced every day and there were a range of reactions to that – one of which was of course, that it was all wrong and inappropriate that it didn’t work in the way it should work and another was the opposite extreme, well, that is the name of the game and so therefore we have to work with that. But an awful lot of confusion in the middle. And so we started to think about that and to ask ourselves why is this, because it does seem so terribly important and of course you must recognise it in the context of executive development. Understandably people coming through executive education want something beyond prescriptive answers, they don’t want simply to know what it is that they ought to do when they already know what they ought to do, and so we began to look for something that would be more useable for them that they could take and somehow integrate in a meaningful way into their managerial lives. So that is how we got started on that book. SM Looking at the forces which are driving the political approach to management, what would you see that they are? DB Above all I would say that it is to do with the fact we probably have for the last thirty, even forty years, had to recognise that organisations are multipurpose, and what I mean by that is not simply that they have more than one product line, or more than one service offer, or even that they serve more recently a range of stakeholders inside and outside the organisation. It’s more fundamental than that. Knowledge Interchange Podcasts Page 1 Cranfield School of Management David Butcher It's something to do with when people become responsible for what they do in an organisation, and of course that is associated with career moves upward through a hierarchy, they have their own view about what the organisation should do and of course the interesting thing about that is that we want them to do that, we pay them to do that, that is why they do, and they get well remunerated for that amongst other reasons, but the moment you say that, the moment you say we want individuals particularly senior, responsible individuals to have their own view of the organisation, not simply to fall in line with what everybody else thinks, then you have a political environment in which you operate. It was always thus, but the fact that organisations are the complex, decentralised entities that they are, all the things that we have known about for a long time now, means that it is more likely, more obvious that those political agendas – in other words people with their own views about the way the organisation should move - come to the fore and somehow or other it has become a little more legitimate. But the interesting problem is, it isn’t yet legitimate and that is where the confusion arises. SM That legitimacy seems to me to evolve around this idea of rational management which you describe in the book and you said that that rational management and reconciling diverse interests need to be put together – can you elaborate a bit on that? DB It's really difficult, but I will try. That is what we set out to do of course, in the book. Rational management, the rational values of economic efficiency and effectiveness, and order, formal order, are deep. They exist as long as we have had the modern era in the world of work, so since the industrial revolution you could say that rational values predominate. It’s the fundamentals behind the concept of bureaucracy, whether we like bureaucracy or we don’t. And so when you have a way of working that is so fundamentally apparently opposed to it, then of course you have the conflict that I was trying to refer to a few minutes ago. How do you bring those things together? Because of course, nobody is going to, nor would they want to, dispense with the values of rationality. They are deeply important and of course we can relate very fundamentally to them. There is no reason to somehow or other, in some sense, discard them. But they are not fit for purpose in the sense that organisations are the complex entities that they are and ever more so. How do you bring them together? But, on the one hand, of course, preserving all that is good about the rational approach, but on the other hand recognising and being prepared to accept that it is entirely legitimate that there are diversity of views. There is a pluralism of views that must and should prevail in any organisation. Nobody wants an executive full of yes people. We don’t want Knowledge Interchange Podcasts Page 2 Cranfield School of Management David Butcher that – we don’t management teams and boards who simply say yes all the time. How to bring all that together? Well, in the end of course, it is that rationality, the structure, the formal structure, the hierarchy of an organisation which will always be there and always needs to be there, is a guide rather than a straitjacket. And that is of course the difficulty, because it can very easily become more of the straitjacket than the guide, particularly if people don’t understand the importance of diversity of views and if they of course, are in some way threatened because they only know one way to use power. So therein lies the problem. Ultimately the way forward is to educate better people in positions of responsibility, who will move into positions of responsibility, to make this very difficult synthesis. It’s a complex process. SM I would like to pick up one word you have used there – and that is power. In your book you refer to people not really often fully understanding the nature of power and where it comes from – I wonder if you could talk a bit about the implications of power and managers? DB Well, I suppose depending on your point of view, power is the age old problem in society of any kind. In the world of organisations, business organisations, public organisations, if one were to look simply at power, one would simply associate it with of course, hierarchy, in other words the position of power, if you are the boss you can exercise power over the people who work for you. It's always there, it will always be there, but it is but one form of power and there has been much, much thought has gone into what power is all about in organisations over many years. It is beyond question that it is a very diverse and complex phenomenon. So, for example, it's quite possible, the opposite of formal power, the authority of being the boss for people who have no formal authority whatsoever to hold power over those who do by simply saying, no I can’t do that, no it's not my job, no it's against the rules – whatever they might say in order to actually exercise, at least temporarily at a moment in time, power. And there is a huge amount in between. Now given that is the case, given that power comes from many, many different sources, you can use it many, many different ways, it is much more complicated than just being able to map it onto the formal structure of an organisation, the hierarchy in other words. Then to use it well is to understand that complexity, on the one hand, and to use it well is to when you have understood the complexity, to exercise power in a principled way. And of course that ties us very much into the world of politics – if we think about politics in the formal sense, politicians – in the parliamentary situation, we worry about them if we start to think that they are not using their Knowledge Interchange Podcasts Page 3 Cranfield School of Management David Butcher power in a principled way. In other words, not towards some just cause, some good cause that they espouse, but instead have some other way of working – another reason, another agenda that is not so clear to us. And so the problem of using power in the principled way is at the heart of being a good constructive politician in a business context. SM If I move on to look at how you help people to move from what can be quite often be a very negative view of politics – I mean we mentioned governmental politics, but I mean people would see people as lying, as self serving, as kind of say anything to get where you want to get to, now that is a very stereotypical way, but people bring some of that to the workplace and say, I am a manager, so if you are developing people and you have got a lot of experience of doing that to be much more aware and skilful in politics, how do you go about that? DB Well I think it is no different to being a politician in a formal governmental societal parliamentary sense. The same problem essentially exists in businesses. But you are quite right, Steve, that many people would stereotype politics and politicians and somehow see a negative view and they would be inclined to mistrust. It's an easy way to think about politics. Some of which is justified, of course. But the problem underlying all of this, where we are talking about politics with a big P, as in parliament or a little P as in organisations, it's how the politician – the person with the agenda – does what he or she needs to do in order to realise that agenda in a principled way, in an honourable way if you so wish. Now if you think about parliament, in theory, you might say, the theory of democracy says what we need to do is debate totally openly. Well we don’t do that, that is why we have parliamentary representatives, they represent other people and not everything happens in the debating chamber – it happens in the corridors, it happens on aeroplanes, on trains, in taxis, over dinner, just like it does in business. So, you can say that an executive director will sit with another executive director on a flight to New York, if they have got business there, and coming back again and they will concoct all kinds of solutions together with regard to the business at large and then they will sit on the board and of course, because they have already had those conversations, not heard by anybody else except perhaps passengers on the same flight – hopefully not, but it happens – well, then of course you could say there is not going to be an open debate. Have they debated reasonably, fairly and tried to take account of the views of others, well, it’s the means ends problem. That’s the essence of using power and therefore being a good politician as opposed to a bad politician. It is how you exercise that power and how you convince other people that you Knowledge Interchange Podcasts Page 4 Cranfield School of Management David Butcher are doing something in a way which you can’t be open all the time, it will sometimes exclude other people, but you are doing it with the interests of the business at heart and enough people can buy into that. Now that is exactly the same problem as we were talking about when we were talking about parliamentary politicians and it’s a very, very difficult balance to strike. SM So, if we move on to saying how do we get people in a development context to move away from any misconceptions they might have? At one level you can say well, I will explain that to them and they will understand, but I suspect is deeper than that. DB It is indeed. In executive development, as a part of the education, the adult education process, at its best, when it really is at its best, it's something to do with liberating people – managers – from beliefs that don’t help them, from attitudes that don’t help them. It is far beyond simply teaching them certain kinds of skills so that they can do one part or another part of their job that much better – important as those things are – because if you can help people to see that rational organisation, the formal way of doing things, the logical way of doing things, and they would say of course, the most orderly way of doing things, is only over layered upon something else altogether which is just as valuable – the diversity of opinion – and help them to actually see that through talking about it at some length and helping them to think about why those beliefs and those attitudes that they have, understandable as they are, are not terribly helpful sometimes, then of course the light dawns and all kinds of possibilities open up for them. I would go so far as to say that once they start to understand that it substantially changes the way they spend their days, their weeks and their years in managerial roles because they understand that they have to spend a lot of time convincing other people about why you might do one thing rather than another when those other people have got just as good as reasons for doing something other than what they would want. And that is time well spent, it is not an inconvenience, it is not a distortion of what they should be doing, it is fundamental that kind of debate which takes place, not in a formal way much of the time, but in myriad different ways across every organisation, every day, if you work at it, if you try to think that through you work through who you should be talking to and in what way, and it is going to take quite a lot of time, then you are contributing something hugely important to the leadership of the organisation. Another way of putting all of that is to say that no one person leads an organisation, certainly not just somebody who happens to be in the most senior role, but that leadership is a distributed task, it is for many of us, and it is a negotiation and that of course is in the end what politics is all about. And I don’t want to Knowledge Interchange Podcasts Page 5 Cranfield School of Management David Butcher suggest that politics in organisations and politics in government are one and the same thing – of course, they are not. There are all kinds of ways in which they differ, but some of the parallels from government politics are very, very important for us to understand in the realm of business. SM In future editions of your book, what would you like to add or to clarify or to put in there that wasn’t in the first edition? DB I think we are actually revising it at the moment, as you probably know Steve. I think if there is one thing in particular, it would be to try and draw out how adult education more generally, and I really mean that in the business school and related consultancy training sector, would try to make part of their educational agenda this difficult area of reconciling alternative agendas, particularly amongst senior managers, and help people to develop a different understanding about it. We didn’t really put enough emphasis in the original book. But, I think it would be fair to say that more and more we have noticed both that the level of practicing managers and also, of course, what people write about, there is a deepening understanding of the role of politics in a positive sense in business, so I think what we need to do is to emphasise that it really is important that adult educators take this as part of their agenda. SM OK, thank you. Transcript prepared by Learning Services for the Knowledge Interchange www.cranfield.ac.uk/som Knowledge Interchange Podcasts Page 6 Cranfield School of Management Produced by the Learning Services Team Cranfield School of Management © Cranfield University 2007