Management Theories: Leadership, Teams, and Strategy

Introduction to Management Theories and Principles

The Fifth Discipline forces managers to look at the way in which learning disabilities — common to organizations — can actually stunt their growth and progress. The author targets several common learning disabilities that can riddle even powerful organizations: identifying with only one position, blaming external enemies, the illusion of taking charge, fixation on events, the parable of the boiled frog, the delusion of learning from experience, and others (Pierce & Newstrom, 2010). These examples demonstrate how common misconceptions can act as shackles on the growth of even a promising company or firm. This chapter also highlights the laws of the fifth discipline, illustrating important lessons such as how the cure can sometimes be worse than the disease and other enduring truths of organizational life (Pierce & Newstrom, 2010).

The section on competitive advantage asks directly how a firm can create and sustain a genuine competitive advantage over its rivals. "The answer lies in an understanding of industries, the five forces that drive competition in an industry, and three generic strategies that a firm can use to protect itself against these forces" (Pierce & Newstrom, 2010). To fully grasp this, one must first understand the five forces that directly impact competition in any industry: fighting for position among existing competitors; the threat of new competitors entering the market; the danger of substitute products or services; the economic control held by suppliers of raw materials; and the bargaining power buyers have over producers (Pierce & Newstrom, 2010). A full and nuanced understanding of how these forces work, combined with the ability to aptly navigate them, can only assist a firm in gaining a competitive advantage.

When it comes to determining what truly shapes great managing and great leading, the answer is not as intricate as one might expect. Research conducted to identify the best explanation for each has focused on examining greatness in both areas. "Greatness is not accomplished by avoiding what causes failure, or by doing the opposite of what causes failure, but by following a distinct set of behaviors that specifically define greatness" (Pierce & Newstrom, 2010). To many people working in leadership or management, this comes as a complete surprise and seems almost counter-intuitive. Failure, as many leaders know intimately, is a part of success. Rather, this chapter looks at the defining and preeminent aspects of success and seeks to determine how one can summarize successful leadership or management. Experts found that "a key theme running through all three controlling insights is intentional imbalance. Great managers do not try to 'do it all,' but instead focus on their employees and what makes them unique contributors to the company." Likewise, a great leader is able to convey the clarity that is needed while allowing individuals to focus on the task at hand (Pierce & Newstrom, 2010).

Competitive Advantage, Leadership, and Organizational Effectiveness

The chapter "Big Winners and Big Losers" seeks to achieve greater clarity on how these distinctions exist in markets and what can be learned from them. One of the most valuable contributions of this chapter is its identification of the three defining traits of winners: agility, discipline, and focus — factors that help winners achieve and maintain success (Pierce & Newstrom, 2010).

The reading on managing teams examines the phenomenon of collaborative work systems and explains their clear benefits to organizations. Collaborative work systems, or teams, offer a distinct dynamic to firms, allowing them to work beyond barriers and obstacles and often producing more innovative solutions. "Collaborative work systems are a key strategy for achieving superior business results. While employees create value through collaborative practices, their ability to perform and to be highly productive is often limited by the barriers the organization creates" (Pierce & Newstrom, 2010). The best-run teams possess the following qualities: focus on success and shared goals, promotion of ownership, clear articulation of rules, the capacity for both divergence and convergence, and thoughtful trade-offs, among others.

The following reading addresses what is known as the strategy paradox. The idea behind it is "that the commitments required to achieve breakthrough success make it difficult to adapt when the future turns out differently than expected. Resolving the strategy paradox requires a new approach to strategy, and to the uncertainty that shrouds the future. The two tools for implementing that approach are requisite uncertainty and strategic flexibility" (Pierce & Newstrom, 2010). These are elements that can only be addressed by confronting them directly.

Collaborative Work Systems and the Strategy Paradox

The reading on responsible restructuring acknowledges that restructuring in general often carries a negative connotation, as people tend to think of unfair downsizing and other damaging organizational actions. Ideally, successful restructuring should avoid budget slashing as a reflexive response to competitive challenges, and instead pursue long-term solutions. Done well, restructuring can increase customer satisfaction, improve an organization's ability to respond to future challenges, and help attract and retain quality staff (Pierce & Newstrom, 2010). Effective communication is a central component of this approach.

The application of these principles to my organization is a relatively straightforward process. The bulk of these principles revolve around commonsense: the idea that people want to be treated well, that people need clear and established boundaries and expectations, and that commonly held beliefs can shackle and stunt organizational growth if left unexamined.