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L9%3A World Food Program%3A Complexity Leadership Theory.md

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  • Back
  • Case - [[World Food Program]]
    • [pdf (mac)](/Users/twenythree/Library/CloudStorage/[email protected]/My Drive/CBS/KLCM/Cases/The World Food Programme during the Global.pdf)
    • [B case (mac)](/Users/twenythree/Library/CloudStorage/[email protected]/My Drive/CBS/KLCM/Abridged Version WFP B.docx)
    • Intro
      • Is the organisation fit for the challenges and risks ahead?
    • Assets
      • Memorized collapsed:: true
        • Ethanol [[subsidies]]
          • in US
        • coping mechanisms id:: 66223782-aef3-4288-8f0c-afe70d70968d collapsed:: true
          • 1
            • increase work activites
            • sell non-productive assets
          • 2
            • sell productive assets (livestock, harvest rights)
      • Trivia collapsed:: true
        • [[Credit crunch on 2007]]
        • Activities of commodity speculators
        • [[Protests]]
        • Famine
      • Rising demand for meat collapsed:: true
        • in fast-growing economies of India and China
      • Debate which factors were most responsible
      • Causes of [[Global Hunger]] collapsed:: true
        • Humanitarian emergencies
        • Reduction of an individual’s ability to acquire food
        • Other explanation
          • Most hunger were in rural areas
          • In developing societies, the yield per hectare was 40% - 80% lower.
          • Changes in taste for non traditional crops in urban areas
      • [[Food and Agricultural Organization]] collapsed:: true
        • (FAO, WFP’s sister agency)
      • Food for Peace id:: 66223e5c-0589-452e-a026-448299330bd4
        • , which distributed surplus U.S. agriculture around the world.
        • saved [[democracy]] in some countries
      • Multilateral food aid program
      • Immediate Response Account
      • ERM program
        • “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
    • Long run problem
      • she recognized that the cost of grains could increase sharply, just as oil had done.
        • costs were rising, and it was happening in new patterns, across markets where prices typically had been uncorrelated.
    • WFP Response to disaster collapsed:: true
      • Undertanding who was affected
      • Who the affected were
      • What their immediate food needs were
      • How to best meet such needs
      • Methods
        • “vulnerability analysis and mapping” exercise
    • WFP org structure
      • inter-givernmental structure
        • Executive Director and her staff answered to a 36-member Executive Board
          • representing 36 different countries
      • “We are a vastly better organization when there’s a tsunami than when there’s not. That’s when people perform at their best,” id:: 662258a5-78d2-45cf-8b40-8dd71512db1b
        • Country directors ran their offices like “entrepreneurial CEOs”. id:: 662258e3-1eb6-4864-95a8-a60147a3d84d
    • WFP financing id:: 66225635-2c13-4ce1-b04f-9e9d70db35aa collapsed:: true
      • replied on entirely voluntary base of donations
      • WFP could use 7% of the operational cost to fund indirect support to field operations and administrative costs.
      • ❗️ Of the funds available for operations, more than 90% had been “directed”, or earmarked for particular crises, while less than 10% were “multilateral” and could be spent at WFP’s discretion id:: 6622572e-4eeb-4ced-ae14-422afdf0893a
        • This lack of freedom constrained WFP’s ability to operate where they saw that the need was greatest unless it could raise additional funds from donor countries.
      • Country directors could borrow up to $500,000 from the internal Immediate Response Account
      • Fundraising
        • Central in Rome
        • (maybe) country directors also applying through local embassies for funds and food aid
    • WEP and RIsk management collapsed:: true
      • Very risk-aware. collapsed:: true
        • To great success.
      • {{embed ((662258a5-78d2-45cf-8b40-8dd71512db1b))}}
      • He recruited corporate risk officer Kate Newton to coordinate enterprise-wide risk management activities.
      • October 2007 WFP Risk Profile collapsed:: true
        • (1) potentially insufficient surge capacity, should the number and severity of natural and man-made disasters increase;
        • (2) potential reductions in WFP’s ability to raise funds, should donor and recipient governments’ perceptions of WFP’s relevance in the humanitarian assistance space change unfavorably;
        • (3) competition from other players, as high costs of procurement could drive donors to use non-WFP channels of delivering aid;
        • (4) failure to demonstrate adequate corporate governance and accountability to donors.
      • 2008 Risk Profile collapsed:: true
        • “changes in the external environment,”
          • included the impact on poor households of higher food and fuel prices.
    • Paths collapsed:: true
      • 1st - Be an aid organization id:: 66225a88-9602-4973-8822-13643aea51bb
        • core operation: bringing food to hungry populations in crisis situations.
        • saw WFP as a relief organization operating in the world’s danger zones and poor countries
      • 3rd - Be a hunger organization id:: 66226d08-15ec-4e93-81f4-2e88321e0988
        • {{g "The actual choice"}}
        • address root problems, instead of putting band aid
        • Focusing on the long-run factors
      • 2nd - Do both
        • Both: ((66225a88-9602-4973-8822-13643aea51bb)), ((66226d08-15ec-4e93-81f4-2e88321e0988))
        • combined short-term emergency response operations with longer-term developmental objectives
        • But did WFP have a comparative advantage in non-relief situations? And did it always make sense to bring food into situations of entrenched poverty?
    • Class notes
      • Hunger as a complex problem id:: 66226d98-aaa4-48bc-8295-5253ccba2b4e collapsed:: true
        • food redistribution
        • local food providers
        • subsidies for ethanol
          • side effects from other economic instruments
        • Misuse of hunger help instruments (food stamps)
        • Disincentive effect
        • incentives for donations
        • changes in tastes
        • game theory
      • What is hunger? collapsed:: true
        • Its a ((66227202-49f7-4591-813d-29a7e54b63d6))
          • Two responses
            • {{embed ((66223782-aef3-4288-8f0c-afe70d70968d))}}
            • Both are a vicious cycles.
              • Work more, use up more calories
              • Sell productive assets, make less money
        • Its not only a supply problem, its a demand problem.
          • tHe supply problem is in pockets
            • but solving the supply problems in the pockets, create new problems
              • {{embed ((66226d98-aaa4-48bc-8295-5253ccba2b4e))}}
          • demand problem is when people don't have money afford food
            • so it can happen in rural areas too
      • WEP is a complex organization collapsed:: true
        • The genesis was
          • {{embed ((66223e5c-0589-452e-a026-448299330bd4))}}
          • but its also for their political incentives
        • But now there is no more surplus
        • Most of the funding from governments are earmarked.
          • ((6622572e-4eeb-4ced-ae14-422afdf0893a))
          • They don't have money to develop themselves
          • {{embed ((66225635-2c13-4ce1-b04f-9e9d70db35aa))}}
        • They are really good at getting in places, where its super hard to get to.
          • People in the field a really good.
            • So the problem is centralized planning is that then its harder to include these experts in the field
        • In their DNA (and their [[competitive advantage]]) is to deliver the food to places in need fast.
      • What they do?
        • They select the option - ((66226d08-15ec-4e93-81f4-2e88321e0988))
        • Then they frame it as a critical issue - something they are used to solve
        • But then the [[2008 Financial Crisis]] happens
        • Enabling leadership
          • Adaptive Space
            • They allow people in org to take 20% of their time to pursue their own projects.
              • They are given time and funds to do it.
    • Recap next class
      • Revision
        • Global Hunger
          • Why is it a complex problems?
            • Interconictivity
            • Reacting to it
            • vs
            • Solving it
          • It not only about supply of food id:: 662b935a-8d86-45bb-a6ee-fc568021b32c
            • But also about entitlement, the ability to aquire food
        • Complicated vs Complex
          • You can construct a space ship with lego - its complicated, not complex
            • because the parts dont irreversibly change it other
        • WHO
          • The organization is really good at reacting. They are experts at it - best in the world.
            • Maybe not so much at solving it in the long-run.
          • The cup - it was really against the root hunger problem cause
            • {{embed ((662b935a-8d86-45bb-a6ee-fc568021b32c))}}
          • The power balance was not right to change
            • smth about the people in the field vs in the head
        • Hunger organization
          • They tried to switch to it
            • But they got hit by the crisis.
          • UNDP is doing smth like that
  • [[Relational Leadership Theory]] collapsed:: true
    • Leadership is relationships
      • Its not only being good at relationhips
  • [[Complexity Leadership Theory]]
    • [Paper.pdf (mac)](/Users/twenythree/Library/CloudStorage/[email protected]/My Drive/CBS/KLCM/Uhl-Bien & Arena (2017) Org Dynamics Complexity Leadership paper.pdf)
    • Concepts
      • Order response id:: 66226a5e-eb8c-4fb2-84dc-7ea853239feb
      • Pressure id:: 66226a74-2451-4384-9e07-1f601ee98a38
      • System id:: 66226b5b-4fcd-407c-9930-a82b7c5153fe
      • Complex problem id:: 66227202-49f7-4591-813d-29a7e54b63d6

      • Adaptive Space id:: 66227749-7be1-49d7-ad75-919007e2082f

    • From class
      • Think of leadership as a complex adaptive system collapsed:: true
        • Parts
          • complex
          • adaptive
          • system
        • Its an idea of a network of agent or nodes
          • that is organically self reproducing
          • the elements can interact with each other
          • builds and grows
            • which in turn changes the whole system
      • Complexity does not mean complicated.
        • Its means rich interconnectivity
          • Nodes interact with each other in way that unreversably change each other.
        • Example:
          • A fighter jet is is not complex, but its complicated
          • Mayonaise is simple, but its complex
            • You can unmake mayonaise from oil and (smth)
        • Argument: All organizations are complex. Becaue all human interactions change each other and may be irreversible.
        • Other theories
          • Monty Cole thought the system is complicated, but not complex.
          • [[Operational leadership]] vs [[Enabling leadership]] id:: 662b9558-e065-48a0-aa27-29d27e4aba7b
            • Operational
              • someone is in charge and tell you waht to do (managerial)
              • tension and conflict is bad
              • bureaucracy
                • but its always bad
                • its predictible, reliable
                  • ((662b9862-e4cf-4795-b53a-700e9ab55672))
            • Enabling
              • ...'
              • It embraces tension
              • Adaptive spaces is a wicked problem
              • Usualy u have a wicked problems
            • Maximizing effiiences vs Maximazing opportunities
            • Variations ([[Entrepreneurship]]) vs Reliability ([[Operational Leadership]]) id:: 662b9862-e4cf-4795-b53a-700e9ab55672
      • ((66226a74-2451-4384-9e07-1f601ee98a38)) collapsed:: true
        • Loosens the system up so adaptive change can occur.
          • Usually, one would prohibit the pressure. ((66226a5e-eb8c-4fb2-84dc-7ea853239feb))
        • In practice
          • Allow the conflict to be.
            • don't manage conflict.
            • It may be a bit discomforting at first
      • The best response to complexity is more complexity
      • Leadership is a ((66226b5b-4fcd-407c-9930-a82b7c5153fe))
      • Relation to [[L8: US Airforce]] collapsed:: true
        • He would have to create an adaptive space, where all of them could collaborate.
      • ((66227749-7be1-49d7-ad75-919007e2082f)) Can be fragile
        • Arena says that
    • In exam
      • Don't say "things are different and more complex now, than it used to be"
    • From ex notes
      • Basically it is... collapsed:: true
        • What is being discovered in complexity leadership theory is that despite widespread belief that the role of the leader is to “reduce conflict” , the conflict experienced in the dynamic tension between the two systems is actually the key to innovation and adaptability in organizations #.v-self-border
      • Organizations as comprised of two primary systems collapsed:: true
        • collapsed:: true
          1. Operational system
          • When faced with complexity, Many organizations pull back to equilibrium. They operate as complex systems, but not complex adaptive systems.
          • Most common
            • Managers are trained to use rules and standard operating procedures to make decisions in the face of conflicting or challenging perspectives, eliminating or reducing adaptive tension in the system
            • Employees are trained to push decision-making responsibility up
          1. Entrepreneurial system
          • def. pg 4
    • Graph collapsed:: true