Four roles of management and lawyers (Ichak Kalderon Adizes "Leading the Leaders")
The first role that management must perform in any organization is to (P)roduce the desired results, making the organization effective in the short run. What are those results? It is to satisfy the needs of the clients for which the organization exists. Why are people coming to you? Why do they need you? What is the service they want? The (P)roducer's job is to satisfy this need. One way of measuring client satisfaction is by how many people come back to buy your competitive products or services.
The second role, to (A)dminister, means to see to it that the organizational processes are systematized: that there are procedures and that events happen in the right sequence with the right intensity. It is the role of (A)dministration to ensure efficiency in the short run.
If you satisfy your clients' needs at a price that is higher than the cost of satisfying them (P>A), the organization will be profitable in the short run.
What about the long run?
For the long run, management must perform a visionary role, ensuring that the organization takes the direction it needs to take. This role requires the organization to proact to constant change and thus renders the company effective over the long run. This is the (E)ntrepreneur's role, which combines creativity with the willingness to take risks. If the organization performs this role well, it will have the future services and/or products that its future clients will want and seek.
Finally, management must (I)ntegrate, which means to build a climate and a system of values that motivates the individuals in organization to work together so that no one is indispensable, rendering the company efficient in the long run.
In any organization of any size, in any technology, in any culture, these four roles are necessary for good management. Any time one or more of these roles is not being performed, there will be mismanagement. If the (P) role is not performed well, clients will not be satisfied and sales will decline. If the (A) role is not performed well, the organization will have unnecessary waste. If the (E) role is not performed well, the organization will be late to market with its products or have new products that fail; and if the organization is badly (I)ntegrated, then when a leader leaves the company, it will experience a seizure.
And the pattern of mismanagement that will appear is a predictable, repetitive pattern all over the world, regardless of culture, regardless of technology, regardless of the size of the organization.
It is as if for organizational health, in the short and long run, we need four «vitamins»: (P), (A), (E), and (I). Any time one of them is missing, a predictable and identifiable organizational «disease» will become evident. However, if one knows how to «inject» the missing «vitamin,» the organization's performance can be improved and brought back to short- and long-term health.
As you freeze new ideas for the sake of efficiency, your ability to be proactive and effective in the long run will become limited. Policies,rules, and institutionalized behavior inhibit change. Thus (A) endangers (E). And vice versa: too much change hinders systematization, routinization, and order.
Let's look at (A)dministration/(I)ntegration incompatibility.
Which country has the fewest lawyers per capita? Japan. Their need for (A)dministration, with its strict rules and policies, is low, and that is because their (I)ntegration is high. In Japan there is a great deal of loyalty and interdependence in business. Corporations offer lifetime employment and a family environment. They take care of each other; they are guided more by their culture than by their legal institutions.
Now, which country has the most lawyers per capita? The United States. (A) is very high and growing; our court system is overloaded. We rely on external intervention to solve our interdependency problems. Our (I) is low.