
Margaret Elliott
Tracy Collegiate
Professor in
Business
Administration
Professor of
Management and Organizations
University of
Michigan
requinn@umich.edu

I am concerned about
individuals and
organizations
learning to function
at ever higher
levels of complexity
and performance. I
am interested in
understanding the
process of positive
organizing and what
can be done to bring
it about. My intent
is to develop an
inductive and
applied theory of
leadership. Here I
will give a brief
overview of my most
recent work.
A Case of
Positive OrganizingA colleague and I
made a visit to a
company that was
part of a major
pharmaceutical
corporation. I was
there only a few
minutes when I knew
I was in a
productive community
that was engaged in
positive organizing,
I could feel it. As
we started a session
together, my
colleague asked the
top management team
to make a list of
the strengths of the
company. They did.
As the list grew,
and despite my
initially positive
feeling, I began to
suspect that they
were posturing. The
list was too good to
be true. The
characteristics were
outside the
normalized realm of
organization.
Consider their
claims:
- We are proactive:
when a product is
still climbing in
the market, we move
on.
- We shape practices
in the market.
- We love responding
to a challenge.
- We think big and
seek success at all
costs.
- We are the place you
go in the larger
corporation if you
want to become a
leader.
- We cannot stand to
be anything less
than #1.
- We take strength
from having done the
impossible in past
crises.
- We are highly
galvanized and rally
in times of crisis.
- We appear to have
very few formal
systems, but when a
problem arises, a
team spontaneously
emerges, solves it,
and then disappears.
- We have quality
people with a "can
do" spirit.
- We have
people-friendly
policies; it is a
place of high trust.
As this list was
being articulated,
my attention was
drawn to a
particular
conversation. The
third to the last
entry on the list
came from the
statement, "Whenever
there is an
important problem, a
team of appropriate
people spontaneously
emerges, solves the
problem, and then
voluntarily
disbands." I thought
it the most extreme
claim of all. At
that moment it was
made, a woman on the
management team
responded:
That is right. I
have been here three
months, and it is
driving me crazy. I
have worked in a
number of
corporations, and I
pride myself in
being able to
rapidly comprehend
the culture of any
organization. This
place baffles me. I
watch those teams
form and
disintegrate. It is
like magic. I cannot
understand or
explain it.
To this statement,
there was a
rejoinder by another
member of the
organization: I
have been here more
than a year. I am in
charge of systems
and processes. I
cannot understand it
either. It is an
extraordinary
phenomenon.
As the day unfolded,
I became convinced
that the list was
for real. These were
people with a
powerful culture. It
was a hard-driving
organization making
lots of money. There
are, however, many
hard- driving
organizations that
make money. This one
was more. It was an
organization in
which people were as
committed to each
other's success as
they were to their
own. Because there
was trust, people
could communicate
their problems and
get help. Because
there was trust,
there was
cooperation. The
self-interest, which
is the bedrock of
most corporate
cultures, was also
operating here, but
the collective
interest and
individual interests
really were one.
Here everyone was a
servant to the
collective good and
to each other. This
was a focused,
money-making company
that was also a
productive
community. They were
engaged in positive
organizing.
The Problem of
Split Logic
When I share
examples like the
one above, people
often get excited by
the vision of
productive community
and positive
organizing. They
claim they want to
create such an
organization and
they tend to espouse
the need for
characteristics like
openness and trust.
They also tend to
condemn hierarchy.
In doing so they set
out on a path of
split logic that
will never take them
to where they want
to go. Normal logic
does not give rise
to positive
organizing.
The reason that our
normal
organizational
experiences are less
than energized is
because human beings
lack the virtues
necessary to keep
the hierarchical
structure aligned
with the emerging
demands and
possibilities in the
external world. In
looking to improve
logical analysis we
can only fail. The
challenge is to
improve something
more basic than
logic.
When High
Performance Happens
Naturally
A productive
community is a
relationship or
collectivity that is
both structured and
spontaneous. It is
both highly
differentiated and
integrated. Members
are clear about both
their accountability
and their freedom.
When positive
organizing occurs
great outcomes
follow. They derive
from extreme human
commitment but
afterwards seem to
happen without
effort. Consider the
following statement.
I have a critical
mass of individuals
from both the staff
and board that are
willing to look at
our challenges in a
new way and work on
solutions together.
At our meetings new
energy is present.
What previously
seemed unimaginable
now seems to happen
with ease. I
sometimes wonder why
it seems so easy,
why we now have such
a positive culture.
The statement comes
from a man who is
one of the subjects
of my new book, Building the Bridge
as You Walk on It.
For four years he
worked at the head
of his organization.
He thought of
himself as a leader.
Then he experienced
a crisis that led
him to make a deep
personal change.
Afterwards he wrote
of the impact on his
organization and
provides the above
description. What
did he do to bring
about the process of
positive organizing? He answers his own
question. The answer
defies what is
written in almost
all the textbooks on
management and
leadership. It
defies common
understanding and
practice. It is a
promising answer in
that it suggests
that every one of us
has the capacity to
transform our
organizations into
more positive,
productive
communities, like
his. Yet it is a
painful answer that
almost no one wants
to hear. The man
states:
I know it all
happened because I
confronted my own
insecurity,
selfishness, and
lack of courage.
In that seemingly
illogical and
impossible sentence
is the essence of
what gives rise to
positive organizing.
The Normal State
My most recent work
is an applied theory
of leadership that
is derived from the
reports of people
like the above
person. The central
argument is that
most people, no
matter how high or
low their position,
spend most of their
time in the normal
life state. In the
normal life state
people tend to be
comfort centered,
externally driven,
self focused and
internally closed.
Conversely, it is
possible for anyone,
no matter how high
or low their
position to enter
the extraordinary
state which I call
the fundamental
state of leadership.
In this state we
become results
centered, internally
directed, other
focused and
externally open.
The Fundamental
State of Leadership
When we enter the
fundamental state of
leadership we become
a distortion to the
social system in
which we reside. We
are a new signal to
which others must
respond. In this
sense we become
creators of a new
order. We become a
stimulant of
positive organizing
or the emergence of
a more productive
community. The above
description captures
the phenomenon. The
man who thought he
was a leader,
entered the
fundamental state of
leadership and his
organization
changed, at that
point he became a
leader indeed.
His personal
transformation gave
rise to positive
organizing, to a
more productive
community. He
suddenly had a
critical mass of
people who saw
things in a new way.
They were more
willing to join
together and produce
innovative
initiatives. They
were more energized.
Seemingly impossible
accomplishments
began to happen in
an effortless way.
Leading suddenly
became easy. That
effortless
accomplishment was
born of agonizing
change.
A New Theory of
Leadership
Building the Bridge
as You Walk on It
presents a radical,
inductive and
applied theory of
leadership. Radical
means returning to
the root or
foundations of a
thing. The
foundation of
leadership is not
thinking, behavior,
competencies,
techniques or
position. The
foundation of
leadership is who we
are, our identity or
foundational state.
When people alter
their interior world
they also alter
their exterior
world. As we come to
understand this
fundamental
framework, our
understanding of
leadership is
radically altered.
The book is designed
to help us to alter
ourselves and thus
create more frequent
episodes of positive
organizing.
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