Barry Johnson summarizes an article about how Singapore Airlines effectively manages the paradox of pursuing both cost effectiveness and service excellence. The article illustrates an interdependent pair model where each pole has upsides and downsides, and the organization aims to maximize both upsides while minimizing the downsides. Singapore Airlines creates a culture of "dual strategy" where both cost cutting and high service are pursued together, creating a virtuous cycle of benefits from both poles rather than choosing one approach over the other. The model provides a framework for understanding paradoxes and leveraging their potential through identifying actions and warnings.
Leading in Paradox: An introduction to polaritiesCheryl Doig
We live in increasingly complex times. Such times require leaders to be adaptive and flexible, to accept that there may not be a ‘right’, ‘wrong’, or ‘single’ answer, and to be comfortable with uncertainty. This slideshare introduces leaders to understanding the difference between problems and polarities. It aims to start the conversation rather than provide the tools and strategies for leading in paradox.
2022-10-25 Smidig Meetup - from Silos to System.pdfSmidigkonferansen
FROM SILOS TO SYSTEM: BUILDING AND MANAGING ORGANIZATIONS AS SYNCHRONISED NETWORKS FOR THE AGE OF COMPLEXITY
Dr. Domenico Lepore will talk about shifting organizations from silos to systems that are fit for the age of complexity.
Leading in Paradox: An introduction to polaritiesCheryl Doig
We live in increasingly complex times. Such times require leaders to be adaptive and flexible, to accept that there may not be a ‘right’, ‘wrong’, or ‘single’ answer, and to be comfortable with uncertainty. This slideshare introduces leaders to understanding the difference between problems and polarities. It aims to start the conversation rather than provide the tools and strategies for leading in paradox.
2022-10-25 Smidig Meetup - from Silos to System.pdfSmidigkonferansen
FROM SILOS TO SYSTEM: BUILDING AND MANAGING ORGANIZATIONS AS SYNCHRONISED NETWORKS FOR THE AGE OF COMPLEXITY
Dr. Domenico Lepore will talk about shifting organizations from silos to systems that are fit for the age of complexity.
Spring 2018 Lecture 2 ECO 526 Business Strategy .docxwhitneyleman54422
Spring 2018
Lecture 2
ECO 526: Business Strategy
Plan
Review of basic economics framework for
business strategy
Costs
Demand
Surpluses
Value creation and capture
Strategy preliminaries
Costs
Economic Costs = Accounting Costs +
Opportunity Costs
Opportunity Costs: Value of forgone
alternatives (explicit or hidden)
Why consider opportunity costs?
Examples
Opportunity Costs and Profits
Profits = Total Revenues – Total Costs
Economic Profits = Total Revenues –
(Accounting Costs + Opportunity Costs), or
(Total Revenues – Accounting Costs) – Opportunity Costs
Terminology
Positive Economic Profits = Profits in Excess of
Opportunity Costs
Zero Economic Profits = Opportunity Costs
Competition pushes profits toward…
Opportunity Costs and EVA
Empirical Study: “EVA. An Analysis of Market
Reaction,” by Deyá Tortella and Brusco (2003)
Sample of 65 firms from various sectors that introduced
the EVA technique
No significant short term abnormal returns
Significant performance improvement in the long run
Adoption provides incentives for increased and more
selective investment activity
Adoption has positive effect on cash flow measures
Methodology…
Deyá Tortella and Brusco Sample
Costs in the Short and Long Run
Short run
Long run
Average and Marginal Costs
Average Cost: Cost per unit
AC = TC/Q
Marginal Cost: Cost of an additional unit
MC = TC/Q
Marginal pulls average in the same direction
Focus on marginals
Typical Short Run AC and MC Curves
Typical Long Run AC and MC Curves
Empirical Long Run AC Curves
Estimated LRAC
Q
$
More Cost Terminology
Avoidable Costs: May be at least partially recovered
once they are incurred
Unavoidable (Sunk) Costs: Gone forever once incurred
Do sunk costs matter?
Strategic implications of manipulating sunk and
avoidable costs
Commitments
Avoidable vs. Unavoidable Costs
Fixed and variable vs. avoidable and sunk
Fixed Sunk?
Avoidable Variable?
Some fixed costs may be avoidable
Resale
Alternative use
Rental
Salvage
Some variable costs may be unavoidable
Severance pay/job security
Delivery/consulting contracts
Demand
Demand is a function
Q = f(P)
Quantity demanded is a value of the function
Inverse demand and interpretation
P = g(Q)
Demand Function
D
Price
Quantity
P1
P2
Q1 Q2
A
B
Shifts and Movements within and
along Demand Functions
A to B?
A to C?
D1
D2
Price
Quantity
P1
P2
Q1 Q2 Q2’
A
B
C
Demand Elasticity
Measures how sensitive quantity demanded is to
changes in price
ɛ = % Quantity/% Price
Elastic vs. Inelastic
Determinants
Substitutability
Item “size”
Necessity or “luxury”
Time length of demand definitio.
Normally, CSR is considered as a thing to be conducted with passion and warm heart. I would not say that it is not. However, in the business world, even CSR should be supported by cold-blooded reasoning and decision makings. Here is what I considered about successfully being socially responsible in a realistic business world.
*I re-used some slides from my former ppt decks.
NameDateCourse PSA Title _______________________.docxpauline234567
Name:
Date:
Course:
PSA Title: _________________________
Opening Statement:
Role of Physical Educators:
Role of Sport Leaders:
Role of Exercise Scientists:
Strategies and Steps Individuals can do:
Word count:
MGT 420 Case study #4 Presentation worksheet:
Class
Names
Overview of the Organization:
1. Provide an overview of the chosen organization.
2. Justify the choice of the organization.
·
Why this organization?
3. Identify the change needed and how the issue has impacted the organization (
why is this a significant problem).
Good place to have a citation on both the slides + note pages
Organizational Subsystems in Need of Change Within the Organization:
1. Identify three of the subsystems in the organization that relate to the needed change that was identified.
2. Of the three subsystems chosen, identify the main subsystem that failed and led to the problem.
3. Provide a justification or explanation for choosing the main subsystem for change.
Remember an individual is not a subsystem, a department would be an example of a subsystem.
What is this the main subsystem (subsystem 1) and why?
Good place to have a citation on both the slides + note pages
Sub system 2
Sub systems 3
Impact of the Proposed Change on Two Other Organizational Subsystems:
1. Discuss how the proposed change will affect the other two subsystems identified.
2. Discuss any system realignment that may result from the changes proposed.
Explain how the change in the main sub system (subsystem 1) affect the other 2 sub-systems?
How will subsystem 2 change
How will subsystem 3 change
Subsystem Comparison to Another Organization:
1. Compare the chosen subsystem for change to the same subsystem in a different organization. The subsystem chosen should be from an organization that is successful in the area of change being proposed. Provide justification.
Compare the main sub system (subsystem 1) in your chose organization to the same sub system in a comparison organization
Good place to have a citation on both the slides + note pages
Satisfaction of Three Stakeholders:
1. Identify any three stakeholders in the organization affected by the proposed change.
2. Explain how the proposed change will satisfy each of the three stakeholders identified.
Identify 3 Stakeholders and how the change will affect them
Stakeholder 1 (and how they will be affected)
Stakeholder 2 (and how they will be affected)
Stakeholder 3 (and how they will be affected)
Good place to have a citation both the slides + note pages
Ethical and Social Responsibility
What does the organization’s website state about their view on ethics? Does the organization's published view on ethical standards conform to or differ from their practice(s)? Use the “
Four views of Ethics” to compare the published versus practiced ethical behavio.
Required ResourcesTextPlease read the following chapters in M.docxaudeleypearl
Required Resources
Text
Please read the following chapters in: Managerial Economics:
· Chapter 1: Foundations of Managerial Economics
· Chapter 2: Decision Making Under Risk and Uncertain
Article
Field, A (2013). Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/
Scott, R. (2012). The bottom line of corporate good (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/causeintegration/2012/09/14/the-bottom-line-of-corporate-good/
Websites
Bloomberg (Links to an external site.) (http://www.bloomberg.com)
Cable News Network (Links to an external site.) (http://www.cnn.com)
The Economist (Links to an external site.) (http://www.economist.com)
Discussion 1 Firm Objectives
Read the articles Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.) and The bottom line of corporate good (Links to an external site.).
In reference to the articles, discuss how firms incorporate the triple bottom line concept into traditional business concerns over profitability. Respond to at least two of your classmates’ posts.
Guided Response: In 300 words or more, please, provide your response to the above discussion question. Comment on how customers can influence firms to pay more attention to the preservation of the natural environment. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Discussion 2 Decision Making Under Uncertainty
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out that traffic jams on the highway can lead to long delays making the trip 45 minutes. He preferred to travel along Shea Boulevard, which was longer (35 minutes), but rarely had traffic jams. Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative. Neither of them knows the state of the highway ahead of time. After driving to work on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times. Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work?
How would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?
How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month (where on this day, the ap ...
Spring 2018 Lecture 2 ECO 526 Business Strategy .docxwhitneyleman54422
Spring 2018
Lecture 2
ECO 526: Business Strategy
Plan
Review of basic economics framework for
business strategy
Costs
Demand
Surpluses
Value creation and capture
Strategy preliminaries
Costs
Economic Costs = Accounting Costs +
Opportunity Costs
Opportunity Costs: Value of forgone
alternatives (explicit or hidden)
Why consider opportunity costs?
Examples
Opportunity Costs and Profits
Profits = Total Revenues – Total Costs
Economic Profits = Total Revenues –
(Accounting Costs + Opportunity Costs), or
(Total Revenues – Accounting Costs) – Opportunity Costs
Terminology
Positive Economic Profits = Profits in Excess of
Opportunity Costs
Zero Economic Profits = Opportunity Costs
Competition pushes profits toward…
Opportunity Costs and EVA
Empirical Study: “EVA. An Analysis of Market
Reaction,” by Deyá Tortella and Brusco (2003)
Sample of 65 firms from various sectors that introduced
the EVA technique
No significant short term abnormal returns
Significant performance improvement in the long run
Adoption provides incentives for increased and more
selective investment activity
Adoption has positive effect on cash flow measures
Methodology…
Deyá Tortella and Brusco Sample
Costs in the Short and Long Run
Short run
Long run
Average and Marginal Costs
Average Cost: Cost per unit
AC = TC/Q
Marginal Cost: Cost of an additional unit
MC = TC/Q
Marginal pulls average in the same direction
Focus on marginals
Typical Short Run AC and MC Curves
Typical Long Run AC and MC Curves
Empirical Long Run AC Curves
Estimated LRAC
Q
$
More Cost Terminology
Avoidable Costs: May be at least partially recovered
once they are incurred
Unavoidable (Sunk) Costs: Gone forever once incurred
Do sunk costs matter?
Strategic implications of manipulating sunk and
avoidable costs
Commitments
Avoidable vs. Unavoidable Costs
Fixed and variable vs. avoidable and sunk
Fixed Sunk?
Avoidable Variable?
Some fixed costs may be avoidable
Resale
Alternative use
Rental
Salvage
Some variable costs may be unavoidable
Severance pay/job security
Delivery/consulting contracts
Demand
Demand is a function
Q = f(P)
Quantity demanded is a value of the function
Inverse demand and interpretation
P = g(Q)
Demand Function
D
Price
Quantity
P1
P2
Q1 Q2
A
B
Shifts and Movements within and
along Demand Functions
A to B?
A to C?
D1
D2
Price
Quantity
P1
P2
Q1 Q2 Q2’
A
B
C
Demand Elasticity
Measures how sensitive quantity demanded is to
changes in price
ɛ = % Quantity/% Price
Elastic vs. Inelastic
Determinants
Substitutability
Item “size”
Necessity or “luxury”
Time length of demand definitio.
Normally, CSR is considered as a thing to be conducted with passion and warm heart. I would not say that it is not. However, in the business world, even CSR should be supported by cold-blooded reasoning and decision makings. Here is what I considered about successfully being socially responsible in a realistic business world.
*I re-used some slides from my former ppt decks.
NameDateCourse PSA Title _______________________.docxpauline234567
Name:
Date:
Course:
PSA Title: _________________________
Opening Statement:
Role of Physical Educators:
Role of Sport Leaders:
Role of Exercise Scientists:
Strategies and Steps Individuals can do:
Word count:
MGT 420 Case study #4 Presentation worksheet:
Class
Names
Overview of the Organization:
1. Provide an overview of the chosen organization.
2. Justify the choice of the organization.
·
Why this organization?
3. Identify the change needed and how the issue has impacted the organization (
why is this a significant problem).
Good place to have a citation on both the slides + note pages
Organizational Subsystems in Need of Change Within the Organization:
1. Identify three of the subsystems in the organization that relate to the needed change that was identified.
2. Of the three subsystems chosen, identify the main subsystem that failed and led to the problem.
3. Provide a justification or explanation for choosing the main subsystem for change.
Remember an individual is not a subsystem, a department would be an example of a subsystem.
What is this the main subsystem (subsystem 1) and why?
Good place to have a citation on both the slides + note pages
Sub system 2
Sub systems 3
Impact of the Proposed Change on Two Other Organizational Subsystems:
1. Discuss how the proposed change will affect the other two subsystems identified.
2. Discuss any system realignment that may result from the changes proposed.
Explain how the change in the main sub system (subsystem 1) affect the other 2 sub-systems?
How will subsystem 2 change
How will subsystem 3 change
Subsystem Comparison to Another Organization:
1. Compare the chosen subsystem for change to the same subsystem in a different organization. The subsystem chosen should be from an organization that is successful in the area of change being proposed. Provide justification.
Compare the main sub system (subsystem 1) in your chose organization to the same sub system in a comparison organization
Good place to have a citation on both the slides + note pages
Satisfaction of Three Stakeholders:
1. Identify any three stakeholders in the organization affected by the proposed change.
2. Explain how the proposed change will satisfy each of the three stakeholders identified.
Identify 3 Stakeholders and how the change will affect them
Stakeholder 1 (and how they will be affected)
Stakeholder 2 (and how they will be affected)
Stakeholder 3 (and how they will be affected)
Good place to have a citation both the slides + note pages
Ethical and Social Responsibility
What does the organization’s website state about their view on ethics? Does the organization's published view on ethical standards conform to or differ from their practice(s)? Use the “
Four views of Ethics” to compare the published versus practiced ethical behavio.
Required ResourcesTextPlease read the following chapters in M.docxaudeleypearl
Required Resources
Text
Please read the following chapters in: Managerial Economics:
· Chapter 1: Foundations of Managerial Economics
· Chapter 2: Decision Making Under Risk and Uncertain
Article
Field, A (2013). Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/
Scott, R. (2012). The bottom line of corporate good (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/causeintegration/2012/09/14/the-bottom-line-of-corporate-good/
Websites
Bloomberg (Links to an external site.) (http://www.bloomberg.com)
Cable News Network (Links to an external site.) (http://www.cnn.com)
The Economist (Links to an external site.) (http://www.economist.com)
Discussion 1 Firm Objectives
Read the articles Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.) and The bottom line of corporate good (Links to an external site.).
In reference to the articles, discuss how firms incorporate the triple bottom line concept into traditional business concerns over profitability. Respond to at least two of your classmates’ posts.
Guided Response: In 300 words or more, please, provide your response to the above discussion question. Comment on how customers can influence firms to pay more attention to the preservation of the natural environment. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Discussion 2 Decision Making Under Uncertainty
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out that traffic jams on the highway can lead to long delays making the trip 45 minutes. He preferred to travel along Shea Boulevard, which was longer (35 minutes), but rarely had traffic jams. Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative. Neither of them knows the state of the highway ahead of time. After driving to work on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times. Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work?
How would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?
How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month (where on this day, the ap ...
Required ResourcesTextPlease read the following chapters in M.docx
Reflections
1. Reflections – A Perspective on Paradox and Its
Application to Modern Management
By Barry Johnson
Barry Johnson, author of Polarity Management: Identifying and Managing Unsolvable Problems
and founder of Polarity Partnerships LLC, shares his evolving model and set of principles that have been in
use for nearly 40 years (Johnson, 1992).
I appreciate the invitation to share my reflections in this special issue from the lens of a
practitioner who has for decades supported organizations and leadership to better manage paradox and
polarities. I will begin with a brief description of the model and set of principles I have been using with
organizations. Then, I will illustrate how this model and set of principles can be applied, using the case
study from one of the articles featured in this special issue as an example
The Underlying Phenomenon: The Interdependent Pair
Whether we call it Paradox, Dilemma, Polarity, Tensions, Dual Strategies, Positive Opposites,
The Genius of the “And,” Managing on the Edge, Yin and Yang, Interdependent Pairs, or some other
name, there is an underlying phenomenon that works in predictable ways.
The more we understand about the elements of this phenomenon and the dynamics by which it
functions, the more effective we can be at leveraging its energy. This leveraging can support us in
pursuing our most expansive dreams and addressing our most chronic issues – as individuals, families,
organizations, nations, and humanity.
The Polarity Map® and set of “realities” that we have been developing is one of many
incomplete efforts to describe and access this phenomenon. I would like to describe the structure and
dynamics that have evolved for us in the polarity thinking community. Rather than use either paradox or
polarity, I will use the term Interdependent Pairs because I think it is more descriptive of the central
phenomenon.
Interdependent Pairs Are Energy Systems in Which We Live and
Work
Interdependent pairs are a ubiquitous reality that has been with us since the beginning of time.
We are born into them with our first breath—Inhaling AND Exhaling is an interdependent pair.
Organizations and nations are born into them from their first day of existence—How do we Centralize
to coordinate our Parts into an integrated Whole AND Decentralize to allow our parts the freedom to
be responsive and take initiative?
Since they are a part of every person, organization, and nation’s reality, all these levels of
system have had to come to terms with them. Some have been better at lever- aging these energy pairs
than others and it has contributed to their effectiveness and sustainability.
Interdependent Pairs
Our most basic picture of the interdependent pair includes two poles and an energy system
that flows between and around them in the form of an infinity loop. I draw from the article featured
in this special issue that illustrates the case of Singapore Airlines (Heracleous & Wirtz, 2014). The
authors of this article highlight the interdependent pair of Cost Effective AND Service Excellence
(Figure 1.). I will attempt to show how the wisdom within this article would be viewed through our
lens.
2. Figure
1.
Central
focus
for
Singapore
Airlines.
As the energy crosses between the two poles (A), it separates them. This reflects the reality that
the two poles never collapse into one. They are always differentiated. As the energy wraps around each
of the poles (B), it holds them together as an interdependent pair. This reflects the reality that the two
poles come as a set and need each other over time. They are always connected.
When the energy crosses between the two poles, it is experienced in the system as “tension.”
With this tension, we often assume that we must choose one of the poles as a “solution” to the tension.
This is a false choice because the poles are inseparable. The tension is unsolvable in that one cannot
choose either pole as a sustainable “solution.” This interdependent pair is also unavoidable. All
organizations sit within this interdependent pair. The tension is there and they must address it. How
should any organization deal with the inherent tension between Cost AND Quality? Singapore
Airlines understands that not only can you do both, you must do both. Building a culture that is effective
at both gives any organization a competitive advantage.
Each
Pole
Brings
Something
Positive
to
the
Pair
and
Each
Pole
Becomes
a
Liability
Without
Its
Interdependent
Pole
Partner
As we expand our model to include two positive upsides (D and B) and two negative downsides
(A and C), we get a more complete picture of what is happening in this energy system (Figure 2).
Figure
2.
Polarity
Infinity
Loop
With
Upsides
and
Downsides.
Starting with (−A), we see the limits of focusing just on Cost to the neglect of Service. A loss of
customers and revenue generates energy to move toward (+B) to get the benefits of Service Excellence,
which includes customer attraction and a growing customer base. It is easy to see (−A) as a “problem”
and (+B) as a “solution.” This partial seeing of the energy system will set the organization up to
overfocus on Service to the neglect of Cost. When that happens, the Service focus will become a “fix
that fails” as the organization experiences (−C) the limits of focusing on Service alone: loss of customers
3. because of noncompetitive pricing and decreased profitability. When this is experienced, it gets identified
as a “problem” and the obvious solution is (+D) as the energy shifts naturally to get the benefits of the
Cost pole: customer attraction from competitive pricing and cost reductions leading to profitability.
Maximize
Both
Upsides
and
Minimize
Both
Downsides
Once you see yourself within this energy system, it makes no sense to look at either upside (+D
or +B) as the “solution” to a problem. The attention of the organization can shift from fighting over the
two poles to “Mastering the Paradox” by building a culture that pursues both upsides (Heracleous &
Wirtz, 2014). At Singapore Airlines, they call this a “Dual Strategy” as they go after the benefits of both
poles. Any organization that treats this interdependent pair as an either/or choice will pay three times for
the misperception: The first time they pay is when they invest time and energy into fighting over which
pole to choose (Cost or Service). The second time they pay is when those sup- porting one pole “win.”
When that happens the organization will get the downside of the “winner’s” preferred pole (if Cost
wins you get −A). The third time they pay is when the sustained focus on the winner’s preferred pole
(Cost) leads to getting the downside of the Service pole as well (−C). This is why it is such a
competitive advantage to understand these interdependent pairs in which our organization sits.
Virtuous
Cycles
and
Vicious
Cycles
Within
a
Polarity
Map®
When an organization, like Singapore Airlines, creates a culture that pursues both upsides of
Cost Effective AND Service Excellence (Figure 3), they create a positive reinforcing, virtuous cycle
(A) that lifts it toward peak performance and “Sustainable Competitive Advantage.” We call this the
Greater Purpose Statement or GPS (B). When an organization treats either pole of an interdependent
pair as a solution to a problem or fights over the false choice between them, it creates a negative
reinforcing, vicious cycle (C) that undermines the organization toward poor performance and
“Competitive Disadvantage.” We call this the Deeper Fear (D).
Figure
3.
Polarity
Map®.
4. Notice that the infinity loop goes high into each upside, which depicts maximizing the benefits of
each pole. The loop also goes only slightly into each downside, which depicts minimizing the limits of
each pole. The authors of the Singapore Airlines article (Heracleous & Wirtz, 2014) have captured a
very important point about the organization: It is not just leadership or a part of Singapore Airlines but
the whole culture that works in support of both poles. Those who might think that “Mastering Paradox”
or “Leveraging Polarities” is just a way of thinking or a tool for a leadership tool kit may miss the full
benefit we can all gain from paying attention to this article and Singapore Airlines (Heracleous &
Wirtz, 2014).
Leveraging
Interdependent
Pairs:
Our
Application
Experience
Leveraging the potential from the interdependent pairs requires the engagement of key
stakeholders in two processes. The first is the creation of Action Steps to maximize the upside of each
pole. The second is to identify Early Warnings that will let us know, as early as possible, when we are
getting into the downsides of a pole so that we can self- correct to minimize our time in either downside.
In Figure 4, below, you can see the Polarity Map including Action Steps alongside each upside
and Early Warnings by each downside. The Action Steps come from the Singapore Airlines article and
are stated in summary form (Heracleous & Wirtz, 2014).
Figure
4.
Polarity
Map
with
Action
Steps
and
Early
Warnings.
You will notice that some steps have an HL by them. We call it a High Leverage Action Step, which has
double value because it simultaneously supports both upsides. The same HL step appears in the action
steps for both upsides of the map. Having a “Dual Strategy” is essential for making the most of
interdependent pairs.
The Early Warnings are not listed in the article but are created by me based on con- tent in the
article. I believe having Early Warnings would be a value-add to the processes being used by
Singapore Airlines in getting the most from this interdependent pair and the other three identified in the
article.
The
Map
With
Action
Steps
and
Early
Warnings
Is
a
Wisdom
Organizer
Because the phenomenon of interdependent pairs is so ubiquitous, we all have an experiential base
5. in dealing with it. At the same time, we have been trained to solve problems. This leads to addressing the
tension within interdependent pairs by choosing the “right” or “best” answer as a “solution.” When we
make explicit the two poles and the fact that there is an upside and downside to each, any group within an
organization can readily identify what those upsides and downsides are. They can also identify, with a
“Dual Strategy” orientation, what Action Steps would help maximize both upsides and what Early
Warnings would let you know you are getting into the downsides.
What is special about the case presented in the article by Heracleous and Wirtz is the
intentionality of building a culture in which maximizing both poles of the paradox is a way of life in the
organization. I was inspired by this article because I believe that Singapore Airlines is a great example
not just for other organizations but also for nation states and our humanity. This need not be just about
competitive advantage for companies. This can also be about creating cultures in which we can reduce
the suffering from vicious cycles caused by not seeing the paradox. Every day we waste energy and
create pain from misdiagnosing a paradox and treating it as a problem to solve and then fighting over the
two poles.
Our clients regularly express relief and an increase in productivity when a fight over an
interdependent pair gets seen as something they can leverage rather than fight over. An application
example is with the Deputy Chief Information Officer of the U.S. Department of Defense. There was a
fight going on between those who were protecting the country by effective information sharing so the
right hand knew what the left hand was doing AND those who were protecting the country by effective
information security. Each was trying to protect the country from the other! It helped immensely to see
that it was an interdependent pair in which both were required to map it in terms of upsides and
downsides and to come up with action steps to maximize both upsides and early warnings to minimize
each downside. What was a fight became an affirmation of both as essential—to each other and to the
country.
Another important contribution in this article by Heracleous and Wirtz is the notion that I call
“stacking” interdependent pairs. In this case the authors point out how three additional paradoxes are at
play in supporting the primary paradox. The left pole of each of the additional paradoxes supports the
left pole of the primary paradox. The same is true for the right pole of the additional paradoxes
supporting the right pole of the primary paradox. Our clients often find it useful to stack interdependent
pairs.
In conclusion, I appreciate the opportunity to learn from the articles featured in this special issue,
to share our evolving model and set of principles at Polarity Partnerships, and to apply it to the special
issue article featuring Singapore Airlines.
References
Heracleous, L., & Wirtz, J. (2014). Singapore Airlines: Achieving Sustainable Advantage Through
Mastering Paradox. Journal of Applied Behavioral Science, 50, 150-170.
Johnson, B. (1992). Polarity management: Identifying and managing unsolvable problems.
Amherst, MA: HRD Press.