Managing change in an organization. Methodology of Isaac Adizes. Key concepts of adizes methodology

Yitzhak Calderon Adizes is a Macedonian and Israeli writer, an expert in the field of improving business efficiency. His fame was brought to him by his organization life cycle theory And typology of managers. Below you will find the main points of his theories.

1. Typology of managers according to Adizis

Isaac Adizes argues that for the prosperity of any organization and its effective work, a combination of four main functions is important.

These four functions form a model PAEI:

• Producing results– production of results, in fact, for the sake of which the organization exists;
• Administering– administration necessary to ensure effectiveness;
• Entrepreneuring– entrepreneurship serving to manage change;
• Integrating– integration necessary to ensure the viability of an organization in the long term by combining its elements.

Depending on the dominant function, I. Adizes identifies four types of leaders:

1. Producer- is focused, first of all, on the result, which is the satisfaction of the needs of its customers, of which there will be more and more, subject to the creation of sufficiently high-quality goods or the provision of services to the fullest extent.
2. Administrator– aims to optimize and minimize the use of available resources. He must also systematize the entire process of managing the organization, streamline it, establish the so-called bureaucratic order, specifying all functional responsibilities, defining the rights and responsibilities of managers at different levels, and ensuring standardized document flow.
3. Entrepreneur- is able to invent and successfully implement new things, he always has a lot of plans and ideas. Such a leader is often not only loved, but also feared, since he can completely rethink everything and offer something very creative. The presence of such ideas allows any organization not to stop there, but to move on and develop.
4. Integrator– this is not just a manager, he is a leader capable of creating common traditions, values, and corporate culture of the organization. It defines a common strategic goal for everyone and encourages everyone to work together, thereby maintaining unity in the organization.

Each type of leader is focused either on result(product produced by the organization) or on efficiency(smooth business processes, production efficiency, cost, etc.) and operates in short term or long term perspective.

Manufacturer And Administrator can already ensure the successful functioning of the organization, but they will not be able to develop it, adapt to changing circumstances, the business environment, for this we need managers with the type Entrepreneur And Integrator.

According to the Role of the manager, you can create his code, where capital letters (P, A, E, I) in the code indicate that the function is performed brilliantly, lowercase letters (p, a, e, i) indicate that the function is performed satisfactorily by the leader. Poor performance or failure to perform functions is indicated by a dash (Producer – Paei, Administrator – pAei, Entrepreneur – paEi, Integrator – paeI). There are a lot of variants of the PAEI code - there are as many of them as there are all the people on earth. By replacing letters with numbers from 1 to 9, you can get more accurate codes. So, for example, a manager with code 1935 will perform the A-function best, the situation will be worse with the I and E-functions, and the P-function will be performed worst of all.

An ideal leader who can simultaneously perform all four functions, according to I. Adizes, does not exist. To be a truly good leader, it is enough to at least minimally be able to perform each of the functions and have a style that matches both the stage of the organization’s life cycle and the task facing it.

2. Life cycle of an organization

According to I. Adizes, any organization has a life cycle that includes predictable stages. Each stage contains its own problems and tasks. Adizes identifies 9 stages:

1. "Courtship"
   • The role of the Entrepreneur is clearly expressed.
   • At this stage, the organization does not yet exist, but there is an idea about its creation. The founder collects opinions and necessary information, laying the theoretical foundation for the future organization.
   • The founder of the organization must have answers to the questions: “What will the organization do? How and when can this be done? Who is going to do this and why?”
2. "Infancy"
   • The role of the Manufacturer is clearly expressed
   • At this stage, the organization does not have a clear structure and system of distribution of powers, responsibilities, or hiring system. It is very personalized and has a small budget.
   • The main focus of the organization's activities is on meeting the needs of its customers and on the results of its work. Decisions at this stage are usually made quickly, but due to the lack of sufficient experience, they may not always be successful.
   • The development of the organization will continue if a constant flow of funds is ensured. And if its founder is completely confident in the success of his own idea, he is devoted to it.
3. "Forward" (Go-go)
   • Development requires the roles of Entrepreneur and Producer
   • The organization's activities and cash flows become stable. The organization is developing successfully and experiencing rapid growth. The organization still has neither a clear management structure nor established functional responsibilities. The organization is not centered around tasks, but around people.
   • The organization will develop further if the leader begins to delegate his powers and responsibilities in a timely manner.
4. "Youth" (Adolescence)
   • The roles of Administrator and Entrepreneur come first
   • At this stage, the organization changes a lot. Its further development will be possible only if discipline, system and order are established. The structure of the organization is changing, professional managers are hired.
   • A large number of conflicts and contradictions appear between old and new employees of the organization, and contradictions in its goals may begin. To continue development, it is necessary to systematize administrative activities.
5. "Heyday" (Prime)
   • The roles of Producer, Administrator and Entrepreneur are active
   • This stage occurs if the systematization of administrative activities has been carried out successfully.
   • At this stage, the organization is both flexible and manageable, has defined functions and a clear structure. She plans her activities and subsequently follows her plans, is focused on results and meeting the needs of her clients, and works efficiently. Its employees are good team players. Often at this stage, subsidiary infant organizations are created.
6. "Stabilization"
   • The role of the Entrepreneur is being replaced by the role of the Integrator
   • This is the first stage of aging of an organization. The organization's flexibility decreases, innovation decreases, and it does not strive for change. Increasing importance is being paid to interpersonal relationships between employees rather than capturing new markets or expanding the coverage areas of existing ones. All of this may negatively impact the organization's customer satisfaction in the future.
7. "Aristocracy"
   • The roles of Administrator and Integrator are still active
   • At this stage, the organization owns significant financial resources, which it spends on strengthening the existing control system, arrangement, and insurance. The main thing in its activities is not what is produced and why, but how. For the purpose of development, small innovations may be introduced into the organization, and other organizations may be acquired. But the organization’s focus on long-term results is significantly lower than at previous stages. To maintain the existing level of profit, prices for its products or services are increased, but this process is not endless.
8. "Early bureaucracy"
   • The roles of Manufacturer and Entrepreneur are degenerating
   • This stage is characterized by a large number of conflicts and problems, and a distance from customer satisfaction. The focus of the organization is now on who is to blame for problems rather than on what needs to be done to solve them.
9. "Bureaucracy and death"
   • The role of the Integrator is degenerating
   • The organization does not strive to improve the efficiency of its activities, to make changes, and is not focused on results or consumer needs. It has strict control over activities, compliance with all accepted rules, regulations and procedures.
   • If the activities of an organization directly depend on clients, then the moment they completely refuse its services, the death of the organization may occur. The onset of the stage of death for it can be delayed for some time if the organization produces some kind of monopoly product or has government support.

A well-structured strategy and tactics for the development of an organization will help not only reach the stage of prosperity, but also remain in it for a long time.

“It is not the strongest or the most intelligent species that survive, but those that best adapt to change,” said Charles Darwin. Dr. Isaac Adizes continues this thought: “We will stop facing problems only if there is no change at all, and this will happen only when we... die.”

Adizes' methodology is based on the basic principle: any organization, like any living organism, is constantly changing and faces problems. At each stage of organizational development, a company expects a specific set of changes.

“Managing Change” is not a miracle cure that will cure all management problems. This book will teach you how to effectively diagnose an organization's "diseases" and "cure" them. You will learn how, using the internal energy of the company, you can independently produce the four necessary “vitamins” to maintain the health of the company for a long time.

Who is this book for?

For those who want to make change manageable

From the author

I have studied management practices in many countries and observed what happens in different settings. I was like that doctor who, while on a British warship for a long time, could see how people who were deficient in vitamin C developed scurvy. I studied management in countries where some managerial functions were prohibited by law, and observed and analyzed the management “diseases” that developed. In the course of this work, I identified the necessary characteristics - those four "vitamins" I called "decision-making roles" - that ensure the creation of a healthy organization, that is, effective and efficient in the short and long term. When any of these roles are no longer fulfilled, the result is a corresponding pattern of mismanagement. I can infer and predict the quality of a solution by knowing which roles were and were absent during the decision process.

I call this approach the Adizes Methodology. Adizes' methodology offers a holistic theory of management, both therapeutic and preventive. For example, one company, thanks to the use of this methodology and other factors, was able to increase its turnover over ten years from $12 million to $750 million without diluting its capital through an additional issue of shares. Another company, also without issuing additional shares, increased its profits from $150 million to $2.5 billion over ten years.

And government activities by making fundamental changes that do not create confusion and destructive conflicts that impede change.

Over the past 35 years, Dr. Isaac Calderon Adizes has worked with many commercial organizations around the world, and has been a consultant on political issues to the governments of many heads of state [ which ones?] . Adizes is the founder and CEO of the Adizes Institute, a change management organization with affiliates in the United States and 14 other countries. He was a tenured faculty member at the UCLA Anderson School of Management for thirty years and has served as a visiting faculty member at Stanford and Columbia Universities, as well as at the Hebrew University of Jerusalem and Tel Aviv University. Dr. Adizes holds a Ph.D and MBA from Columbia University and a BA from the Hebrew University of Jerusalem.

He currently holds the post of Director of the Adizes Institute. He is also a featured author and lectures in more than 40 countries. Adizes' work has been featured in magazines such as Fortune, London Financial Times, and maintains close relationships with investors in Daily Nation's Business and World Digest.

He is the author of seven books, translated into 22 languages. His book "Corporate Processes: How Organizations Grow and Die and What to Do About It?" It is considered a classic textbook in management theory, and was selected as one of the 10 best business books in the Library Journal. According to the results of the rating of “100 best consultants in the field of leadership” by the publication “Executive Excellence” (2008-2009), Adizes takes 28th place.

Adizes is known for his theory of company life cycles, as well as his approach to the typology of managers. In his opinion, the ideal leader - a super-boss who can do everything - simply does not exist. This is impossible because such an “ideal” person must combine qualities that, according to Adizes, are incompatible. These qualities are necessary and sufficient to fulfill the purpose of the business. Here is what Adizes himself writes in the book “The Ideal Leader”:

…the ultimate goal of the management process is to make the organization effective and efficient in the short and long term - nothing more and nothing less. If we ensure efficiency and effectiveness in the short and long term, this is enough for the well-being and success of any organizational structure, be it a couple, a government, a multinational corporation or a confectionery shop.

Adizes lists four such qualities that are needed to achieve short-term and long-term effectiveness and efficiency: producer of results (P, producer), administrator (A, administrator), entrepreneur (E, entrepreneur) and integrator (I, Integrator). Based on the initial letters of these four English words, the leadership type model forms the acronym PAEI. These qualities contradict each other, since, for example, a good producer of results will be intolerant of excessive order, which an administrator is prone to, and an entrepreneur will always come up with something new, which can interfere with both the producer of results and the integrator aimed at harmonizing relationships in the team. Thus, the company should not be headed by a super-boss, but by a group of super-bosses, each of whom perfectly performs one of the four roles and has a normal understanding of the others.

The Adizes method is used all over the world in companies with sales from $2 million to $2 billion (Coca-Cola, Bank of America, Volvo, Visa Group, etc.)

Bibliography

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