“Wishful thinking combined with hubris”

Last summer a group of economists at the London School of Economics felt impelled to write to the Queen in response to her question posed the year previously when she was on a visit to the university as to what had caused  the banking collapse.

The letter explains that there was a ‘psychology of denial’ affecting all those concerned, and in a touching note of humility drawing attention to the fact that many very intelligent people were caught up in this collective denial, the letter goes on to explain that “it is difficult to recall a greater example of wishful thinking combined with hubris”.

“Everyone seemed to be doing their own job properly on its own merit. And according to standard measures of success, they were often doing it well,” they say. “The failure was to see how collectively this added up to a series of interconnected imbalances over which no single authority had jurisdiction.” (my emphasis added) Continue reading

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Rethinking management from within the practice of management

This post will try to engage with some of the ideas that Ralph has set out as a way of keeping the discussion going and as a further invitation to anyone else to join in. Of course, the thoughts below are only what struck me from his post.

Without actually using the word in this piece, I think Ralph is pointing to the ideological nature of the dominant discourse. By claiming that a lot of management is practised according to taken-for-granted assumptions which are unreflectively taken up there is an implied ideological hold. The dominant managerial discourse becomes pervasive by being taught in a variety of different edcational contexts and is replicated every day  by managers who are graduates of business schools as well as by consultants who have been similarly educated.  It permeates daily practice.

In trying to understand how the dominant discourse comes to dominate, how it becomes ideological, I have found the philosopher Alasdair McIntyre’s definition of ideology helpful when he says that ‘ideology is the mask worn both by the dominant orders and by order itself.’ So this helps explain something about the taken-for-grantedness of many of the management concepts which are so pervasive. In order to join the management club, to play the game, it is a requirement to demonstrate a fluency with the concepts and language of the contemporary management discourse. More and more management graduates make the game more widespread and pervasive. This leads to a kind of isomorphism: organisations which carry out very different types of work, be it public, private or voluntary sectors, begin to look and sound alike. A facility with the concepts allows for the kind of mutual recognition which enables more and more people playing the game to locate themselves in it, to find a way of participating with each other and to be successful in the game. If one begins to talk about management differently it can appear as though one is not taking the game seriously, or even that one is calling the game into question. There follows the charge of somehow being  ‘anti-management’, an accusation that I have heard on more than one occasion levelled at the body of ideas we are calling complex responsive processes of relating. The moment one has a stake in the game it becomes much harder to call the game into question, as participants on the DMan course discover. Continue reading

Why we need to re-think leadership/management in the ongoing crisis of investment capitalism

The vast majority of textbooks, business school programs and research projects around the world, most professional management and leadership development programs in organizations, most management consultants and people in organization, including senior executives, all talk about how organizations should be governed, all making the same taken-for-granted assumptions. There is a dominant discourse in which it is assumed, without much questioning, that small groups of powerful executives are able to choose the ‘direction’ that their organization will move in, realize a ‘vision’ for it, create the conditions in which its members will be innovative and entrepreneurial, and select the ‘structures’ and ‘conditions’ which will enable them to be in control and so ensure success. The problem is that to be at all effective these activities rely to a significant extent upon the ability of powerful executives to know enough about what has been, is now and will be happening around them. Executives are supposed to know what is going on because they are supposed to be avoiding emotion and personal politicking so that they can make roughly rational decisions on the basis of the ‘facts’. If they cannot do this then, on the basis of dominant thinking, they must simply be pursuing only their own interests and gambling with society’s resources.

However, recent and current economic developments are making it clear that executives of large corporations and their management consultants, as well as politicians and their advisors, are far from sure of what has been happening and they simply do not know what is now happening, let alone what will happen in the future as a consequence of the actions they are taking. The contrast between the dominant thinking and our experience is striking. While people and their ongoing messy daily political interaction are absent in the dominant discourse, or feature simply as obstacles, they are the central aspect of our experience. In the dominant discourse uncertainty plays a very minor role and leaders know what is going on; in our experience, neither leaders nor anyone else really knows what is going on and few pay much attention to what they could know about, namely, what they are actually doing to live in uncertainty. In thinking in the dominant way, we are covering over the complexity and uncertainty we actually experience in our ordinary, everyday lives in organizations and we are positing capacities of foresight in leaders which they do not actually possess. Continue reading