2 Introduction The Power of Reframing Virtues and Drawbacks of Organized ActivityThe Curse of CluelessnessStrategies for Improving Organizations: The Track RecordFramingMultiframe Thinking
3 Are top managers clueless? Home Depot CEO Bob Nardelli somehow didn’t anticipate that a rushed shareholders’ meeting where no one but him got to say anything would produce bad press and a major rebellion by shareholders and analysts.
4 Are top managers clueless? CEO Jeff Skilling thought Enron was “in excellent shape” when he quit a few months before it collapsed
5 Are top managers clueless? Joseph Berardino, CEO of Enron’s auditor, Andersen Worldwide, said no one told him some of his partners thought the firm was at risk in approving Enron’s aggressive accounting practices.
6 Are top manager clueless? As New Orleans recovered from Hurricane Katrina, the Secretary of Homeland Security told reporters he had no reports of things that viewers had already seen on television news.
7 Virtues and drawbacks of organization Prevalence of large, complex organizations is historically recentMuch of society’s important work is done in or by organizations, but…They often produce poor service, defective or dangerous products and…Too often they exploit people and communities, and damage the environment
8 Signs of CluelessnessManagement error produces bankruptcies of public companies every yearMost mergers fail, but companies keep on mergingOne study estimates 50 to 75% of American managers are incompetentMost change initiatives produce little change; some makes things worse
9 Strategies to improve organizations Better managementConsultantsGovernment policy and regulation
10 What is a frame? Mental map to read and negotiate a “territory” The better the map, the easier it is to know where you are and get around (a map of New York won’t help in San Francisco)Frame as window: enables you to see some things, but not othersFrame as tool: effectiveness depends on choosing the right tool and knowing how to use it
11 Framing and “Blink” process Well-learned and practiced frames facilitate “rapid cognition” – the capacity to quickly and accurately size up situationsQualities of rapid cognition:Nonconscious (you can do it without thinking about it)FastHolisticResults in “affective judgments”
12 Structural Frame Roots: sociology, management science Key concepts: goals, roles (division of labor), formal relationshipsCentral focus: alignment of structure with goals and environment
13 Human Resource Frame Roots: personality and social psychology Key concepts: needs (motives), capacities (skills), feelingsCentral focus: fit between individual and organization
14 Political Frame Roots: political science Key concepts: interests, conflict, power, scarce resourcesCentral focus: getting and using power, managing conflict to get things done
15 Symbolic Frame Roots: social and cultural anthropology Key concepts: culture, myth, ritual, story,Central focus: building culture, staging organizational drama
18 Expanding managerial thinking Traditional management thinkingArtistic thinkingSee only one or two framesHolistic, multi-frame perspectiveTry to solve all problems with logic, structureRich palette of optionsSeek certainty, control, avoid ambiguity, paradoxDevelop creativity, playfulnessOne right answer, one best wayPrincipled flexibility
19 Conclusion Narrow thinking clueless managers Multiple frames improve understanding, promote versatilityMultiple frames enable reframing: viewing the same thing from multiple perspectives