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LEADERSHIP AND THE PSYCHOLOGY OF TURNAROUNDS

LEADERSHIP AND THE PSYCHOLOGY OF TURNAROUNDS. Rosabeth Moss Kanter. THE DYNAMICS OF DECLINE. Decline causes managers to dislike and avoid another, hide information, and deny responsibility

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LEADERSHIP AND THE PSYCHOLOGY OF TURNAROUNDS

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  1. LEADERSHIP AND THE PSYCHOLOGY OF TURNAROUNDS Rosabeth Moss Kanter

  2. THE DYNAMICS OF DECLINE • Decline causes managers to dislike and avoid another, hide information, and deny responsibility • Organizational pathologies arise and reinforce one another in such a way that the company enters a kind of death spiral • Secrecy and Denial; Blame and scorn; Avoidance and turf protection; Passivity and helplessness

  3. THE CYCLE OF DECLINE • Corporate decline does not stem from a single factor. It results from an accumulation of decisions, actions, and commitments that become entangles in self-perpetuating workplace dynamics. • Secrecy, blame, isolation, avoidance, lack of respect, and feelings of helplessness create a culture that makes an already bad situation worse • Once in spiral>>hard to stop • But there are interventions that can shift momentum in the company’s favor

  4. REVERSING THE CYCLE • Not a one-size-fits-all process. What is best depends on the company • 1. PROMOTING DIALOGUE • Between employees, management, and the public • Remove perceived distance between management and employees

  5. REVERSING THE CYCLE (2) • 2. ENGENDERING RESPECT • Build relationships between colleagues, groups, employees,,etc. • 3. SPARKING COLLABORATION • Across departments • Across divisions • Collective commitment • 4. INSPIRING INITIATIVE • To initiate actions that will improve the company’s financial or strategic position

  6. THE ENERGY FOR CHANGE • Leaders bring their own preferred approaches • They restore confidence through empowerment • They do a series of balancing acts • As aspirations and performance improve and people gain hope, they get energized

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