Cranfield School of Management Smart Management: Using Politics in Organisations David Butcher and Martin Clarke Palgrave, 2001 ISBN: 033394903X, 157 pages Theme of the Book Politics play a central role in all organizations but to this point they have largely been seen as a negative force. Butcher and Clarke expose this as a misunderstanding and show how political behaviour is entirely endemic to managerial activity and how ‘Smart Management’ is a practical guide for understanding and managing managers on how to work with both the it can have extremely rationality that is expected of them, and the powerful positive effects. inevitable self-interest they see in themselves and others, which it makes little sense to They provide an approach to deny. It is a book about how to use all that is managing politics by good about politics, and to do so with skill balancing personal and and a clear conscience.” organizational interests and show how the centrality of politics to organizational life make it the ideal place from which to change existing patterns of power and influence. So three key themes are addressed in the book are : 1. Organisational politics is central in managing productively. Lobbying and “There is no opting out. positioning and alliance building are Like it or not… politics core managerial tasks. People play a central role in all produce more in corporate life when organisations.” they see personal relevance in what they do: this is a motivational tool for change and achievement. Cranfield School of Management Smart Management: Using Politics in Organisations 2. A principled use of power balances self-interest and interest in others. Constructive organisational politics justifies one’s own agenda and the business’ agenda. Political managers learn reflectively from their own motives and reality tests others’ motives. 3. When you combine Nos. 1 and No. 2 above, you redefine managerial work. The rational mindset no longer suffices. To it is added a positive, constructive political mindset, deliberately learnt so both are used side-byside. Knowledge Interchange Book Summaries Page 2 Cranfield School of Management Smart Management: Using Politics in Organisations Key Learning Points In the 21st century organisation, it is more necessary than ever before: • To reframe different agendas in organisational life: to acknowledge that corporate life gains through mutual and competing interests. • To accept the logic of constructive organisational politics: to recognise political skill is legitimate and needed as much as rational competence is • To find out what power in an organisation really is, where it is situated, what it can do: to know sources of power are diverse and motives behind its use crucial • To distinguish between constructive and destructive politics: to be able to read the difference between selfless and selfish motives and between ethical and unethical means of achieving political goals “Being a politician is part of the job for management. Our key objective now is to help . . . appreciate the logic of constructive organisational politics, since without that starting point, no manager is likely to be motivated to enhance his or her own political skill.” Knowledge Interchange Book Summaries Page 3 Cranfield School of Management Smart Management: Using Politics in Organisations Organisational Politics and its Relevance to Managers Each business trend below makes organisational life more complex, and “Organisational politics: the process of dynamic tension through which competing agendas are resolved.” legitimate political action more important, so that managers make the most of: • Tacit knowledge contributing to business innovation and improvement • Employee empowerment raising customer satisfaction • Key talent motivated to contribute value-added voices to organisational decision-making • Competitive advantage by reducing organisational boundaries so external stakeholders influence more of what goes on inside businesses • Legislation imposing management obligations to its employees Each reality above potentially increases employee autonomy and diminishes formal authority. Each trend respects or elevates difference. More difference means less unanimity. The politically smart manager deals not just with greater diversity and less commonality, but designs them into the organisation. The mindset and skills of the politically aware manager welcomes and searches out competing voices and dissenting views. Acquiring that mindset and honing those skills are formidable tasks. The Pervasive Culture of Rationality Overshadowing the political imperative is a pervasive business culture of the rational manager. It dominates organisational life through control, consistency Knowledge Interchange Book Summaries Page 4 Cranfield School of Management Smart Management: Using Politics in Organisations and consensus. It views organisational politics as negative and wrong. It has long forgotten organisational life is social. The rational mindset ignores that social organisation which contains difference and distinction. “Organisations appear to be constantly changing yet something is clearly staying the same. Something is distorting or at least filtering the But people do not think alike. When momentum of continual change on they are pressured to, organisations contemporary organisations. That are diminished. Dissension and something is what we have come to minority views add value to the describe as the rational mindset.” collective – commercially, ethically, psychologically. Aware managers know this: politically active people do position their interests, they do engage with differences, they do negotiate and reconcile competing viewpoints. Power in Organisations Why is power so problematic in organisations? One reason is the difficulty of defining it, its sources and implications; another is the challenge in applying it morally. 1. Power: Sources and Implications Power is complex and contradictory. It has two sources, situational and personal: • Situational Sources: 1. Formal authority: derives from one’s managerial position, based in the rational economic organisation. 2. Control of information: power is information as is proximity to information sources: ‘people in the know.’ Knowledge Interchange Book Summaries Page 5 Cranfield School of Management Smart Management: Using Politics in Organisations 3. Reduction of uncertainty for others: if their work depends upon your function (eg, finance), you have power over them (controlling budgets or headcounts). 4. Control over rewards: tangible benefits valued by others decide their fortune, like career progression and remuneration. • Personal Sources: 1. Referent power: role modelling (integrity, resilience); while psychological in nature (like confidence), the power lies in it observed as a behaviour. 2. Expertise: exercise of superior knowledge / specialist training gives you credibility by making what you do inaccessible to others. 3. Social competence: using high order, often difficult to learn skills, often in short supply, eg, reading another person’s motives or giving praise genuinely. 4. Success: success breeds success and people back winners, identifying them with achievement and effort. These two lists open up appreciation of diverse power sources. It is not helpful as a manager to view power as if it only has one source (usually that of situational position power). Also, keep in mind how others evaluate power sources: their perceptions and its social acceptability will vary over time and place. What is valuable, then, is awareness of and sensitivity to the range of power sources. This is a necessary starting point in shifting a manager’s mindset. Knowledge Interchange Book Summaries Page 6 Cranfield School of Management Smart Management: Using Politics in Organisations 2. Applying Power The politically smart manager is not only sensitive to what power is but what it can do. That manager will know the importance of motives. The worthiness of their own and others’ motives distinguish legitimate use of politics from misuse “ . . . motives are everything, the basis for all of power. This distinction thriving political alliances, and they are the final continues to judge where criterion for judging your stance in relation to each of your stakeholders. . . . Every action of capable politicians needs to be underpinned by means do not justify ends – in both their own and others’ motives. sound reading of the motives of others.” So making that distinction starts clarifying whether managerial politics are serving organisational or self interest. Clarity of whether means justify ends never comes easily. What codes of conduct help guide you at such difficult times? Which trusted friends can you talk quietly with when faced with the dilemma of whether means are acceptable? Another resource for the manager mobilising a political mindset is appreciating parallels in politics between organisation and government. Competing interests, power sharing and lobbying are taken for granted every day in good governance. Formal principles of democracy only work through these informal processes of governance. This is particularly relevant as corporate life becomes increasingly democratised. “Democratisation is based partly on the acceptance that organisations function far more effectively when their internal dynamics are treated as In democracy, we trust motives markets, rather than centrally planned behind publicly pursued agreeable economies, and partly on the aims: such means justify the ends recognition that organisations are not (even when the means are not sovereign entities that can operate wholly transparent). So what independently of their environment.” prevents the manager from applying this parallel from democratic politics to organisational politics? Knowledge Interchange Book Summaries Page 7 Cranfield School of Management Smart Management: Using Politics in Organisations Perhaps the scale of societal transformation is exceeding many managers’ ability to see it. Or is fear that others who don’t see organisational politics as legitimate won’t approve of the new mindset needed by the politically smart manager? The politically smart manager requires an enhanced job specification, requiring greater sensitivity to business agendas and relationships which drive political processes; explicit legitimacy for exercising power towards vested interests; sharper interpersonal skills for approaching people and information from a political rather than rational perspective. “A shift of mindset only occurs when there is sufficient dissatisfaction with the prevailing one. It is the same with any significant personal transformation. Negative feelings have to exist in order to overcome the pull of familiar, tried and tested ways of thinking, or skills and knowledge you have learned over many years. There is a lot to lose . . .” 3. Acting Smart By now we are seeing some of the reasons why it takes time and thought to act as a politically smart manager. Part of it is re-learning an old managerial role acquired through time-tested experience but based on the ‘official’ (rationally run) organisation. Harder this time round to unlearn a rational model and acquire and implement new skills – the majority of which are still seen as not acceptable in corporate life. Continuous updating of your political relationships, of your organisation’s decision making paths, of your priorities among stakeholders and your scanning of the business environment are all required. As is new self understanding, specifically about Knowledge Interchange Book Summaries Page 8 Cranfield School of Management Smart Management: Using Politics in Organisations • Balanced motives: being clear about how ambitious and responsible and selfless you are “Putting to positive use the inherently political prepared to be in nature of organisations turns on the idea that pursuing a political managers are sometimes motivated by worthy agenda – and reading causes, that these sometimes conflict, and that how motivated others just as with the politics of government, this is are in these same fundamentally good, not bad.” areas. • Managerial irreverence: an attitude of healthy scepticism and impiety “When it comes to changing your own towards excessive attitudes, remember that orthodox management reliance on rationality in training “is anything but value-free . . . it the organisation. reinforces the dominant mindset. . . . too entangled in the rational model.” Finally, new interpersonal skills are needed: • Presenting persuasively: marshalling joint positions through face-to-face suggestion, selective introduction of information and logical connections, emboldened by commitment and timely disclosure of own motives. • Challenging productively: outright disagreeing is not the way forward (causes resistance by provoking others), so try progressive questioning: causes others to analyse their positions by educating them. • Reading others’ motives: continuous – direct and indirect – unobtrusive reading of motivations in political alliances is the bottom line in your trust of stakeholders. All these understandings and skills imply significant personal and professional development, little of which, readers are reminded at the end of this useful book, will be on offer through conventional management training or business school education. Knowledge Interchange Book Summaries Page 9 Cranfield School of Management Smart Management: Using Politics in Organisations Managers need to seek out development specialists and unconventional, challenging approaches in executive development which are offered beyond the scope of the rational model of management education. Smart Management – The Challenge The challenge for managers and organisations is for organisational politics to position itself centrally in management. Today’s business imperatives – new technology, relentless innovation, globalisation impacts, business ethics – demand organisations become more democratic, more individually orientated and more capable of managing greater, not fewer, differences. Knowledge Interchange Book Summaries Page 10 Cranfield School of Management Smart Management: Using Politics in Organisations Authors DAVID BUTCHER has been in management education for twenty years, and has held positions in several major business schools. David is a leading member of Cranfield`s faculty, Director of Open Executive Programmes and Director of the flagship Business Leaders Programme, acts as a consultant in a wide range of contexts on an international basis, including investment banking, telecommunications and FMCG multinationals, airlines, manufacturing and aerospace organisations. His focus is on developing business strategy, leadership capability at senior and top executive level, and the constructive use of managerial politics. David has published widely on the subjects of business transformation and is a frequent speaker at both international conferences and company seminars in many different countries. MARTIN CLARKE is a Lecturer in Management Development at Cranfield School of Management. Martin works as a management development consultant to a broad range of international companies and is currently Programme Director of the Cranfield General Management Programme. His experience lies chiefly in the area of leadership and organisational development, and his main interests and writing are in the role of management development and organisational politics in personal and organisational change. Knowledge Interchange Book Summaries Page 11 Produced by the Learning Services Team Cranfield School of Management © Cranfield University 2007