This paper develops a model of adaptive leadership, which is leadership that helps organizations adapt to new or existing realities. A manager provides adaptive leadership by exposing the organization toa novel experience that demonstrates that the firm’s beliefs do not match reality. Exposure to the novel experience creates distress, which decreases utility for managers and lowers productivity.The prospects for increasing profits by improving beliefs, the desire to decrease distress by engaging in adaptive learning, and the possibility of improving productivity by lowering distress and stimulating controlled cognitive processes motivate managers to engage in adaptive work, which requires effort and consumes resources.
Editor’s Note: the introductory part of this paper is interesting and then it gets bogged down in mathematical formulas…
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