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Week 1: Managing Contemporary Enterprise: The Importance of Knowledge Meeting the Challenge of a Knowledge Economy • Humans have lived in a knowledge economy since the beginning of time (fire, development of tools, wheel etc) • Knowledge is growing at an exponential rate. Each discovery leads to another development • More now than ever, we live in a economy where key factors of production reside in the capacities and ingenuity of the human mind. Increasing emphasis must be placed on continuous innovation, collaborative learning, competitive advantage. • Continuous innovation: In an economy where the only certainty is uncertainty, innovation is key. Markets shift, technologies become outdated, competitors multiply. We must be able to change and adapt to these changing conditions • Collaborative learning: People share and expand knowledge, and thus productivity • Competitive advantage: Competitive advantage no longer goes to those with most resources; it belongs to those with the most knowledge. Nations that excel in creating knowledge excel Ex. Sweden • Learn To Learn • Nike, Nokia or Netscape= small companies in terms of employees, generating hundreds of millions of dollars in sales by levering their knowledge advantage • What’s the “Knowledge Economy” mean to you? 1. A new way of thinking about business 2. An underground network that exchanges knowledge for a price 3. A trillion-dollar market space 4. The engine driving innovation and change 5. A shift from “bricks” to “clicks” 6. The reason continuous learning and skill-development is so important today The Rational for Developing Learning Organizations • “the ability to learn faster than your competition may be the only sustainable advantage” – Arie de Geus • “learning disabilities are tragic in children, but they are fatal in organizations because few corporations live even half as long as a person” – Peter Senge • In order to deal with new problems, we cannot suppress creativity in organizations. We must promote it to deal with overcome organizational challenges.
Strive to be a “learning organization” so you can: create a sustainable advantage, grow and develop, create new niches, change with the economy, create knowledge, generate renewable resources “teach a man to fish” The New Knowledge Landscape • The future lies in knowledge exchange and sharing. • Economy is fired by brainpower Emerging Trends of Global Leaders 1. Thinking Globally: - Leaders will need to understand the economic, cultural, legal and social ramifications - Must be able to understand and lead across global regions due to globalization - Learn how to manage global marketing, production and sales teams • 2. Appreciating Cultural Diversity: - They will have to understand the social and motivational differences or cultures - Understand behaviors (religion, greetings, manners etc.) - Ability to motivate different cultural properly. Pride in one culture could be source of embarrassment in another. Motivational strategies in one may be offensive in another. 3. Technological Savvy: - Leaders must be aware of the technological component and use it strategically to gain a competitive advantage 4. Building Partnerships and Alliances: - The ability to form important relationships and handle complicated networks will be important as inter-dependence will increase 5. Sharing Leadership: - Successful leaders of the future will integrate not control - One person cannot do everything, so it is important to share it - Create an environment where other leaders subscribe to a common vision and goal and work as an integral unit - Develop a social architecture that encourages bright, confident people to work together successfully
Week 2: Managing Contemporary Enterprise: The Importance of Stakeholders • A stakeholder is anyone who has a vested interest in the status of an organization • Takes a “win-win” approach to conflict resolution where everyone gains • A key stakeholder is an individual or group that can materially affect or be affected by a company’s actions, decision, goals, policies, or practices. (P.45) Contd details. Stakeholder: What are their Level of How does the What action stakes? Importance stakeholder should the influence the enterprise take to enterprise? deal with the stakeholder? Who can be a stakeholder? REFER TO PAGE 36 • Owners / Shareholders • Employees • Customers • Suppliers • Creditors – lend money or capital to finance operation • Competitors • Government- affect operation of business through regulations, • Society at large • The environment Advantages • • Allows organizations to determine who to partner with Powerful mgmt technique to see who to partner with in international relations Considers both competitors and complementers Allows business to look at social, ethical and economic aspects in one HELPS FIRMS TO COMPETE AND CO-OPERATE
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reputation. • Social Entrepreneurship: The act of doing business for the betterment of society or with a socially-inclined mindset. • SOCIAL RETURN ON INVESTMENT Developing a Triple Bottom Line Mindset Triple Bottom Line Accounting: company’s performance based on financial profit. It can be defined as a professional. while paying strict attention to the TBL in order to ensure the company’s existence at a certain level. innovative. environmental and social success • The Triple Bottom Line (TBL) broadens the definition of a company’s performance from a financial profit figure to include social and environmental measures of success. • Meets the needs of the present without compromising the needs of future generations • Improving the quality of human life whilst living within the carrying capacity of the ecosystems. . It ensures that a business will be sustainable by meeting the needs of its socio-corporate environment. and sustainable approach to systemic change that resolves social market failures and grasps opportunities. John Elkington – Financial performance indicators include: – Profits – Shareholder value – Social performance indicators include: – Safety – Human rights – Environmental performance indicators include: – Pollutant releases – Energy consumption Intangible assets: Company values. and goodwill.Disadvantages • • • Can be difficult to forecast and predict High degree of subjectivity in analysis Attitudes are always changing so it must often be monitored Week 3: Managing Contemporary Enterprise: The Importance of Sustainability Sustainability and Social Entrepreneurship • Sustainability: A means of running an organization efficiently.
communication & dialogue • Design their mission and strategy to maximize competitive advantage in a changing environment Using SWOT Analysis • Essential for venturing into a new market. • • • • Strengths: attributes of the organization that are helpful to achieving the objective. Intangible Assets • Intangible assets can increase when a business focuses on achieving triple bottom line results. stakeholder inclusion.Intangible assets can increase when a business focuses on achieving triple bottom line results. Creating Sustainable Value • Striving towards financial. intangible assets can make up to 80% or 90% of a company’s market value! • Some examples of intangible assets: – Brand value … Think Pepsi or Coca Cola! – Reputational value … how does society react to human rights violations or oil spills.e. • In some companies. • Value is not always defined in quantitative terms (i. What principles. socially. and economically that could impact the business?) • Build these internal capabilities: leadership. standards. social and environmental performance excellence will mean shifting traditional mindsets. (i. environmentally.e. . through charity or helping create a friendly and safe environment). What is happening politically. Characteristics of sustainable enterprises: • Stay connected to stakeholders & changes in the external environment (i. • Value can be qualitative judgments as well. It also applies to the decisions and impact thereof that businesses make on a daily basis. Opportunities: external conditions that are helpful to achieving the objective.e. How much money one tonne of gold is worth?). technologically. or harmful product recalls? Think Johnson & Johnson and the recall of contaminated Tylenol). or qualities are considered worthwhile?) Understanding Tangible vs.e. • Some examples of intangible assets: – Brand value … Think Pepsi or Coca Cola! – Reputation value Corporate Social Responsibility: When a business interacts with its community in a positive way (i. Weaknesses: attributes of the organization that are harmful to achieving the objective. because it allows us to evaluate all the variables beforehand.
Lack of product advertising and support . and competition.Strong Competitors fight back even aggressively. by investing into research and development.LPK Market trends Economic conditions Expectations of stakeholders Technology All other activities or inactivities by competitors Criticisms by outsiders Changes in markets All other environmental condition Week 4: Engaging Customers: Product Development & Life Cycle • Firm need to develop a steady stream of new products and services give the rapid changes in consumer tastes. Firms can obtain new products by: .New product development: develop new original products and new brands.Acquisition: buying a whole company..High cost of R&D than expected profit return .Price too high because of the high quality . Eg PS3 and Nintendo WII and XB0X 360 major example of competition in the gaming entertainment market. technology. intellectual.• • • • • • • • • • • • • • • • Threats: external conditions that are harmful to achieving the objective.. Strengths and weaknesses Resources: financial. or license to produce someone else’s product . location Cost advantages from proprietary know-how and/or location Creativity (ability to develop new products) Valuable intangible assets: intellectual capital Competitive capabilities Effective recruitment of talented individuals Opportunities and threats Expansion or down-sizing of competitors. patent.product not designed well or below expectations . Evaluate opportunities and select the best product idea . Reasons why some products fail in the market: (P.. can be used as a strong backup example The Product Development Process • Series of activities by which a product idea is transformed into a final product Steps: 1.63) .wrongly targeted market ...
social and cultural) Week 5: Engaging Customers: The Importance of Quality Promote Quality and Continuous Learning as Core Values • A commitment to quality and continuous improvement can reduce costs. 2. and help to create corporate cultures where continuous learning is a way of life. suggests that when you focus on increasing the quality of a good or service. Product has achieved acceptance with most potential buyers. economic. Growth: Rapid market acceptance and increasing profits. not just a collection of programs and techniques. 4. you can actually reduce the costs of production because poor quality is expensive. technological. • Many organizations disregard this web of interconnection. fragmenting work processes. . Build and test prototypes 6. increase profits. 1. To earn these benefits. Decline: Sales drop off and profits decline. • Theorists like Edwards Deming and Joseph Juran. and creating methods of control that actually undermine the ability to produce quality work. corporate culture.2. Introduction: A period of slow growth in sales. Product classes have the longest life cycles. Maturity: A period of sales slowdown. Launch the product Protect Your Idea: get a patent Product Life-cycle: Product development: company finds and develops a new idea. Get feedback to refine the product concept 3. • • • Product class (automobiles) Product form (SUV) Brand (Volkswagen Jetta) Different products have different lifetimes. Ramp up production and run market tests 7. Make sure the product performs and appeals to consumers 4. Design with manufacturing 5. competitive. the commitment to quality and improvement has to become part of the mindset shaping how people approach their work. No profits. the nature of labor management relations. appropriate knowledge and technology and a host of other forces influencing the workplace and business environment. 3. • Quality is shaped by corporate policies. access to resources. Kraft Dinner is age-defying because it has 75% market share (page 79) The Marketing Environment • The External Marketing Environment: Factors external to the firm that present threats and opportunities and require shifts in marketing plans (regulatory.
14 Steps MGMT Must Take • Diseases and Obstacles: -Overemphasis on short-term profits -Human resource practices that encourage both managers and employees to be mobile and not organizationally loyal -Merit ratings and review systems that are based on fear of one’s supervisor -Absence of single driving purpose -Management that is based on visible figures alone • The Concept of Variability -Variation is a part of any process -Management can change the system to increase productivity • 14 Steps MGMT Must Take To Transform An Organization • Total Quality Management: Comprehensive.Changing with the customer .Understanding the competition Deming’s Theory of Management • A managerial theory about productivity and quality control. not just a program or technique.It's a vicious loop.Raising the bar . practices. The Concept of Variability 3.Customer input . WHY CANT WE????? • Deming’s Key Ideas: 1. Dr. • Quality assurance: System of policies. professional and technical boundaries. Dissatisfied customers spread "the word" which in turn deters new customers.Keeping commitments (just like politicians and electors) . • The pursuit of quality has to break bureaucratic. Faulty under-performing products annoy customers. It cannot be pursued in isolated pockets. Diseases and Obstacles 2. • . Deming said if JAPAN CAN. defects and waste materials. Poor quality production systems lead to low productivity. strategic management approach that builds quickly into every organizational process as a way of improving customer satisfaction. Small Changes Create Large Effects Ensuring Customer Satisfaction • Customers are the fluid of an organization • Happy employees= improved customer satisfaction= business profit • WAYS TO ENSURE SATISFACTION: . and procedures implemented throughout a company to produce quality goods and services. It is important to recognize two key principles: • The pursuit of quality and continuous improvement has to be a core value and mindset.
Mental models: Allow us to make sense of the world rapidly and efficiently. individuals and organizations can learn to challenge and change them when necessary. • Customer satisfaction can be ensured by obtaining feedback from the customer and having their input incorporated so that the company is able to keep the customer happy and will retain the customer. • As companies for all know that it’s more costly to gain new customers than to retain them. because they hamper you from developing creative ways to expand conventional approaches to marketing to increase value. Leadership Component of Quality: • Leaders will do what it takes to help employees serve customers better • They will try to make employees as happy as possible so that they will ensure the well serving of customers. • Times change. They relate to every individual’s set state of mind. • Global leader will try to find out the consumers preference not only on global scale the leader of the rapidly changing society will also have to adapt to changes and preference of individual customers from different cultures and even regions. they are a set of preconceived beliefs that shape how we view the world. • They can limit options. thoughts. this is a source of problem The Marketing Mix . • Week 6: Engaging Customers: The Importance of Marketing Learning To Challenge Mental Models • Mental models are frames that we carry "in our heads. and if customers are happy than the entire organization benefits as a whole. models do not. By being aware of their influence. • Quality of both product and services will provide the company with a huge opportunity to distinguish it self from the competition." They embody deeply held images and assumptions that can shape our perceptions and actions. At times they also prevent us from taking action. etc…In essence. • Most important factor behind quality mindset of the corporations would be Commitment to its customers as this is most single sound factor of success for any company. concerns.
Using multibranding approach. price. letter sound or symbol that would differentiate their product from similar products on the market • Trademark: registering the name with the patent and trademark office • Strategies: o Private branding – company makes a product and sells it to a retailer who in turn resells it under its own name o Generic branding – the maker attaches no branding information to a product expect a description of its contents. focus groups) Branding • Some word. Customers are often given a choice between a brand name prescription drug or a cheaper generic drug with a similar chemical makeup. the company will assign different brand names to different products • Brand equity o Any added value generated by favourable consumer experiences o Brand loyalty: you may prefer or insist upon buying a certain brand only Packaging and labelling • Packaging: the container that holds your product . o Manufacturer branding – a company sells one or more products under its own brand name. distribution) – Promotion Combination of product. place and promotion o Developing a product Product ideas come from people within the company who understand customers needs Internal engineers are challenged to design the product Conducting marketing research • Who are potential customers? • How much are they willing to pay? • Process of collecting and analyzing the data that’s relevant to a specific marketing situation • Secondary data: information already collected by the company or other means (stats Canada) • Primary data: newly located information that address specific questions (survey. personal interviews.• Four P’s of Marketing – Price – Product – Place / Placement (location.
) o Setting a price for the product Involves trial and error because there are so many factors to consider Strategies • Skimming pricing – start off with the highest price that keenly interested customers would pay. trains. make it easier for people (eg: keeping track of calories etc.bases the price of a product on how much people are willing to pay for it • Target costing – practice strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit • Prestige pricing – setting a price artificially high to foster the impression that the product is of high quality • Odd-even pricing.99$) o Placing a product Distribution – entails all activities involved in getting the right quantity of your product to your customers at the right time and at a reasonable cost Distribution channels: • Selling directly to customers • Selling through retailers • Selling through wholesalers Physical distribution • Warehousing/distribution center • Materials handling (physically carrying goods during production.) • Just in time production (reducing inventory costs by delivering materials just in time to go into the production prices • Transportation (trucks. planes. both to discourage competition and to grab a sizeable share of the market. you can push up prices • Cost-based pricing – figure out how much it costs to make a product and then set a price by adding a profit to the cost (30% mark up) • Demand based pricing. as soon as competition falls.Labelling: what you say about the product on your packaging Purpose: attract consumer attention.) The Supply Chain • Flow that begins with the purchase of raw materials and ends in the sale of finished product to an end user • • . pipelines etc. warehousing and distribution) • Automation (automating the process inventory etc. ships. and then from here you can lower it once competitors appear • Penetration pricing – charge a low price.pricing products a few cents under an even number (9.
where you are located. including advertising. Week 7: Meeting Financial Stakeholder Expectations & Corporate Social Responsibilities Corporate Social Responsibility . • Important keynotes: • Projected Image –is the impression your firm is giving by everything you do: what your employees wear. non personal communication designed to create an awareness of a product or company o Personal selling: one on one communication with customers or potential costumers o Sales promotions: approach in which a company provides an incentive for potential customers to buy something o Publicity: focus on getting a company or product mentioned in the newspaper. Eg: sponsoring a fundraising event. sales promotion and publicity Need to imprint a clear image of it in the minds of your target audience Tools: o Advertising: paid. • Companies need to offer the options for both off the shelf solutions and customization • Positioning cannot be based only on features and benefits alone but also needs an emotional link.Supply chain management – process of integrating all the activities in the supply chain The value chain o Supply chain management helps companies to produce better products at lower costs and to distribute them more effectively Customer value triad o Most customers buy products that gives them the highest value. television or other forms of media o Public relations: communication activities undertaken by companies to garner favourable publicity for themselves and their products. service and price o Promoting the product Various ways to communicate with customers. • Expected Image – this is the perception of your firm that people carry around in their heads before they even encounter you company or firm. a press release to promote the event. how you decorate. and they usually determine value by considering the value triad: quality. how you advertise and ETC.
A strategic approach. • Income statement: A financial statement of a company’s revenues. 2. in one or more ways. Premier Oil’s decision to operate in Myanmar and the to sell its interests • Why is CSR such an issue? 1.firms will recognize the changing environment and engage with CSR as part of deliberate emergent strategy 4. • Fixed Assets: Assets retained for long-term use with constant prices (i. • In this environment. • Cash-flow statement: A statement showing when cash flows in and out of a business. • Liabilities: Claims against a firm’s assets by creditors. firms need to think of themselves as being part of a network in which value is created and where co-operation is more important.an active engagement with CSR will provide new opportunities to understand the market place and will enhance organizational learning and those provide a competitive advantage. Consumers/Stakeholders: Becoming more demanding 2. and profits over a given period of time. and machinery) • Liquidity: The level of ease with which an asset can be converted into cash. • Balance sheet: Statement of a firm’s financial position on a particular date. The Changing Role of Business • CSR hot topic for multinational corporations • Ex: Shell’s attempt to dump the Brent Spar oil rig in the North Sea. SROI Four ways in which firms respond to CSR pressures: 1.e. Financial Literacy: Understanding the Numbers • Assets: Any things of value owned or leased by a business. Nike’s reported use of child labor. Nestle’s marketing of infant milk formula in developing countries. Visibility: greater visibility of businesses via the Internet or NGO and lobby groups such as Amnesty International or Greenpeace. • Competitive advantage: The ability to perform. expenses.An innovations and learning approach.A defensive approach – to alleviate pain. things that competitors cannot match.A traditional cost-benefit approach – thus firms will undertake activities they can identify as beneficial 3. buildings. Internet has lead to greater scrutiny and globalization are brining pressures on supply chain • . Firms will do what they have to do to avoid pressure that makes them incur costs.CSR movement argues that organizations of all kinds can become good citizens by combining their economic interests with broader philanthropic activities • CSR takes many forms • CSR results in social and economic gains. land. • Bankruptcy: When a business does not have sufficient assets or earning power to repay its debts and legal action is taken to dissolve the company and compensate its creditors as much as possible.
Investors: They are taking a growing interest. Defensive Approach (Do what they have to do to avoid pressure/costs) 2. Traditional Cost: Actions that directly benefit. Economic/Financial) by John Elkington • Four ways that firms respond to CSR pressure: 1. • Businesses must pay more attention to its relationships with society/s-holders (Volkswagen and Johnson and Johnson) • Triple Bottom Line (Environment. Social. so CSR is important Week 8: The Employee as a Stakeholder . 3.3. Strategic Approach: Use CSR strategy as a deliberate emergent strategy • New Economy: Innovation. CSR provides opportunities to understand the marketplace and will enhance organizational learning and thus provide competitive advantage • Get away from competitive mindset and move towards “case for business for CSR”----------business and society impact each other. learning.
I'll make this right. chances are that people are "reading" the significance of your words and actions all the time. Be generous with credit: Don’t take credit for others work. or just to get some fresh gossip for the corporate grapevine. Walk the Talk: Do what you say you are gonna do! Understanding Ripple Effects of Words and Actions • If you are a leader of any stature. Try to provide complete explanations on important issues. In crisis situations you often have to be decisive and be seen as being in control of the situation even though you would like more information Treat People Right • Virtuous Spirals: Organizations that reward their employees for work perform better and organizations achieve more. But it depends on the circumstances. for indications on which way the political wind is blowing. Honor Commitments: honest and take responsibility if you stumble: "It was my mistake. Be honest and open. For difficult communications test your planned statements on them 5. Find reliable sounding boards: Identify people you can trust and be fairly objective. Be Fair: Don’t have favorites. Buy Time in Difficult or sensitive situations: The full dimensions of a situation may not be immediately obvious. Think about likely impacts and try to anticipate negative consequences 4. share information: Don’t be manipulating or with holding. and in your leadership abilities. Everything that you say and do as a leader may be scrutinized and is likely to get amplified 2. Credit = work 5. 4. to assess their personal worth or standing in your eyes. Don’t Hedge if the going gets rough. 1.Cultivating Trust •You can't buy trust. Deferring reaction often allows a clearer picture to emerge. It is something that has to be earned over time as people gain confidence in you as a person. 1. I should have honored that commitment. Virtuous Spirals are win-win relationships ." Maybe more important to be committed. to make sure you're not missing something or someone. Demonstrate Empathy and Caring: Adjust weekend meeting to compensate for employee’s family crisis 3. Honor small commitments (renovating lunch room vs increasing sales) 2. especially unintended side effects. • It is important to recognize this and be acutely aware of potential consequences. Accidentally omitting a team member's name from a list of acknowledgements could be interpreted as deliberate. 3. treat everyone equally 6. • They may be doing this to get advance warning of what’s to come. Omissions and Silences can be powerful: Prepare public statements carefully. Take this opportunity to learn about six things that you can do to create a high trust environment.
Fads or fashions • Virtuous spirals can flourish in organizations that perform well and treat people right. “Leadership’: Hire and develop leaders who can create commitment. Despite the numerous threats to an organization. Components of an effective organization 1. core competencies and strategic goals” 3. To obtain this “Develop a wide array of human capital mgmt practices that motivate people to excel and then follow through by rewarding them. Core Competencies: Combination of technology and production skills that help define and create organizations products/services (miniaturize products) 4. Mission. Adelphia (deceitful activities) To avoid this implement above. Strategy: Master plans for accomplishing goals. . and autonomy 5. trust.that are hard to duplicate sources of positive momentum Begins with strategy organizational design. Environment: Context in which the organization operates (state of the economy. • Threats to a Virtuous Spiral: Avoid by adding “Strategy change” in order to adapt to new gov’t or environmental regulations. products/services 2. success. industry failure. goals. responsibility. Attraction and Retention: Organizations must create propositions (plans) to attract and retain the right people 2. Reward Systems: Implement reward systems that reinforce their design. purpose. mistakes. Work Design: Design work that is meaningful for people and provides them with feedback. Organizational Capabilities: Allow organizations to coordinate and focus on its behavior to carry through with strategy (ability to manage and develop new knowledge 3. and Goals: create an organizational mission w/ strategies. political and physical environment. Hiring Practices: Hire people who fit with their values. and a motivating work environment • Avoid False Spirals: wrong belief that you are in a virtuous spiral (dot-com enterprises in the 1990s thought they were doing well but their value was inflated so high they collapsed hard) • Avoid Fraudulent Spirals: Enron. Training and Development: Train employees to do their jobs and offer room for professional development” 4. support and believe in 6. staffing rewards. core values and strategy 7. Seven Key Principles for Treating People Right 1. virtuous spirals can be rekindled. WorldCom. and values that employees can understand. economic downturn. Strategies.
During this time an organization will see both individual and organizational performance decline • False Spiral: Occur when an organization thinks a virtuous spiral has been initiated. when in the fact the thought is simply an illusion. and are easily mistake as virtuous although they are created by deceitful activities. • Fraudulent Spiral: Is which cause destruction. Threats to virtuous Spirals: • Environmental Changes • Economic downturn with a country • Industry specific economic downturn • Mistakes or self-inflicted threats • Fads or Fashions • . They are the win-win relationships that are hard to duplicate sources of positive momentum • Death Spirals: When organizations mishandle their human capital is susceptible to inverting this process.Virtuous Spirals: When individual and organizations archive more and more of their goals.
be guided by these principles: • Think about empowerment as giving space to grow and develop. they often end up accomplishing more and more • Empowerment doesn't grow in situations where people don't want to be empowered • Empowerment always starts with oneself! The Basics: Leadership in Action • Build on your natural leadership inclinations (review core values. and Execution (treating people. . be flexbile. positive attitude towards them. rather than in terms of "empowering people" • Create space by removing barriers and providing support • Remember the importance of boundaries: without a sense of shared vision. 136 example). weaknesses of org. Vision. expect results! • Empowerment grows: when people feel that they are able to accomplish things that are worthwhile.) • Remember the importance of focus Good to Great Darwin Smith (pg. insights and intelligence to make full and effective contributions To create contexts where people feel able to contribute and want to make a difference. having a vision. empowerment in an organizational context means anarchy • Remember the importance of accountability: give space. executing) • Align style with needs of organization (needs. Build on growth of confidenc or success of others and move onto other things) • Excel the Leadership Triangle: People. determine good motivators) • Recognize and build on the contributions of others (learn from others success. strengths.Week 9: Managing Employees: The Importance of Leadership Empowering People to Make a Difference • Organizations have to create contexts where people are encouraged to step forward and use their skills. was a Level 5 Leader Level 5 means highest level in a hierarchy of executive capabilities that we identified during our research.
Even when he lost his thumb. Darwin Smith blossomed into a Level 5 Leader after his near death experience with Cancer There are many ways to be bred into a Level 5 Leader! The Different Types of Leaders? Leadership style: Whether you are task emphasis or relationship emphasis Leadership Style Adaptability: Ability to adapt to organizations needs. despite the fact he lost a thumb. High relationship and low task: Less direction from leader. High task and high responsibility: Input in a persuasive. Rewards: Increase follower motivation by clarifying how followers can receive rewards for task accomplishment. Humility + Will = Level 5. Eg: Colman Mockler. because Level 5 Leaders blends extreme personal humility and intense professional will. Trust. fortune. creating. Task Characterisitcs: degree of clarity and structure in task. and contributing. Task Oriented Behavior: Careful supervision of group members to obtain consistent work methods and explain what activities are needed to accomplish this. Relationship Behaviors: Aim at satisfying the social and emotional needs of group members.142-143!! USE MOCKLER EXAMPLE Display professional Will (PG. while getting an MBA at Harvard. strengths. had throat and nose cancer. Time: Sometimes leaders don’t have time to seek opinions and suggestions and vice versa. respect. he went to work next day. mutual trust. and warmth in the relationship between leader and follower. great! PG. 2. • -THE four styles of leadership (1. PG. Low relationship and low task: Delegates leadership/responsibility but is informed on progress) PG. power and adulation Bred: These are people that evolve into leaders. converted to Christianity and according to “Cutting Edge” became a prime mover in a group of Boston business executives that met frequently over breakfast to discuss the carry over of religious values to corporate life. . more collaboration between leader and group members. Instead of fame. weaknesses. 4. Objectives Appropriate Leaderships style. 139 OUTLINES LEVELS Darwin Smith said “I never stopped trying to become qualified for the job” at Kimberly Clark. High task and low responsibility: Lots of input little relationship behavior. These leaders are about building. supportive and guiding manner. 153 SITUATIONAL LEADERSHIP MODEL Situational variables. 3. This makes good companies. Showing consideration for friendship. Leaders in the other levels cannot produce as great of success. Maintaining relationships. 144-145) Born: Provides that you are a Level 5 Leader by nature and you are because of the fact you are not egotistical.
2.Week 10: Understanding the Issues & Importance of External Stakeholders Dialogue and Collective Learning Greening the Corporation Greening the Corporation: Consider environmental and social issues in their business practices Ecological Modernization: Society (including corporations) can modernize itself out of ecological crises. and other factors to provide both economic and environmental growth. Corporate view on env issues 3. and control mechanisms exercised by the founder. Power Culture: few rules. 1. bureaucracy. and product life cycle assessment by fighting the use of animals for product testing world-wide. Preventatiev Environmental Mgmt: Goes beyond complying with legislation and litigation. Acts to comply with legislation or litigation. natural sciences. waste mgmt. through economics. Three parts: 1. 2. Environmental Compliace Mgmt: least progressive. corporate mgmt. Role Culture: Role of job description is more important the person who fills it. Sustainable Development Mgmt: Strive to take a leadership role in their industries in response to env issues. Ex: The Body Shop has a power culture because it actively addresses environmental issues such as energy conservation. Intuitional Learning 2. Corporate Environment Mgmt Styles: 1. Cultural Politics (environmental challenges viewed as opportunities for growth) Corporate Culture: The set of norms found in organizations. regulators. Thinking Globally . but is involved with pollution prevention and reduced waste of resources • Strategic Environmental Mgmt: Incorporates environmental goals into the overall economic strategy often anticipating and pursuing green markets.4. Heaving env research and responsive to env resources. politics.
A financial understanding of the world economy (EU) 2. prior to the IPO CEO Joe Forehand spent over six months visiting each parnetship to understand its frame and of reference • A global village: You can’t be an independent global leader. you need an organization behind you. Transportation). Changing Price A global leader must have: 1. • Think Globally. and he Association of SouthEast Asian Nations dismantle barriers. • Aware of laws around the world and even time zones • Be flexible and ability to refrain from right or wrong because business is done is so many different ways across the world. Market products differently from region to region as culture changes 2. Understanding of global and regional markets to understand how markets play off each other. the NAFTA. Commerce Intra-Industry: Mergers and Acquisitions (Financial services. The Above three converge to form a Global Cross-Industry • Goal of Global Integration: to take advantage of the economies of scale around the world while responding to local needs. partner supplier. Goal is becoming more realistic. Customers want “one-stop shopping. industries and companies The European Union (Euro breaks barrier of currency exchange). Travel. Companies are forming cross industry alliances such as utilities and telecommunication firms. software and hardware. Act Locally : Have a worldwide perspective when making local or national decisions • 95% of US companies that go to China fail because they do not understand their views and biases • Before Accenture went public in 2001.” They will no longer accept the complexity of having to deal with many different suppliers and billing systems providing the same product but in different locations . and customer are becoming interchangeable in order to companies to create alliances and provide a special product to consumers. Business today is characterized by alliances between governments. banks and insurances through merger and acquisition or alliances The labels of competitors. This has created a global marketplace. where convergence assumes greater significance Inter-industry: Alliance across industries. System: EU. Global Leaders will need to understand globalization means 1. Understand different cultures 3. • Ex: Westerners going to Middle East do not understand the Koran • Ex: A company is Brazil maybe profit drive and a company in China may be employee drive thus changing the operations.
and was made to ensure economic stability by being a lender of last resort introducing liquidity in the form of loans to those facing an economic downturn and pressuring countries to do their faire share to maintain AD. • When projects initiated by the West but funded by private capital fail. • Ex: SEE page 184! • Managerial Decisions pg. the World Bank. • IMF based on idea markets did not work well. but those regions suffered when inflows of speculative hot money that had poured into countries suddenly reversed. education projects have brought literacy to the rural areas • Globalization hurt those to people who are not part of the decisions about globalization • Ex: The Third World is in dire poverty and the number of people in poverty increased by 100 million at a time when the total world income increased by 2. the poor people in developing countries still must repay the loans. Have a thorough understanding of cultures before getting on the plane Globalization and its discontents • Benefits of Globalization: Has Given many developing countries access to knowledge well beyond the reach of even the wealthiest in any country a century ago. • Ex: Guerillas in the Philippines were provided jobs by a World Bank financed project as they laid down their arms. and as a result developing countries were prevented from exporting their agricultural products and deprived them of needed export income! • Ex: Western Banks benefited from the loosening of capital market controls in Latin America and Asia. and the WTO.• • Global leaders will help educate people and prepare them to do business with different cultures. 185 . • Institutions that Govern Globalization: International Monetary Fund. irrigation projects have more than doubled the incomes of farmers.5% annually • Western countries which encouraged poor countries to break down barriers while keeping up their own.
spotting how .Week 11: The Future: Emerging Opportunities & Challenges for Contemporary Enterprise Dealing With Corporate Earthquakes • Andy Grove. Watch for emerging "fracture lines" Instead of waiting for reality to hit you. 1. Be wary of minor disturbances: sales drop. passing them by. outsourcing and outside hiring. do your best to anticipate corporate earthquakes before they happen. • The individuals or businesses that fail to detect the emerging "fracture lines" that signal major change will find their world being disrupted or demolished. or. Most good entrepreneurs do this. 2. "corporate earthquakes" are inevitable. former CEO of Intel said “Sooner or later something fundamental in your business will change” • Businesses that do not predict their “fracture lines” will be demolished or barely get by • In a richly connected world. The challenge is to spot the warning signs and find ways of positioning for what is to come. at best.
and visits outside the business • Be sensitive to interesting stories. the global leader must adapt and succeed. Benefits of Globalization: • Opening up of international trader has helped many countries grow far more quickly than they would otherwise have done.they can link ideas. technologies. be able to anticipate new strategies and possibilities long and short term 3. and more flexibility. Investigating future trends: Research and project future trends in customer and client relations. expected to integrate several hundred million transistors 2. Looking to the future: Inspiring people to focus on future opportunities (not just the present). They must empower people. • Has given access to knowledge for growing and developing nations • Has allowed for foreign aid to many needy countries Harms of Globalization (P. unusual facts. It is up to the global leader to ensure that each individual in the company understands how they help the company move towards their goals. events and occurrences • Share what they learn so that intelligence spreads Use Problems as Opportunities: • Problems can seed new learning and change • Creative destruction can provide the basis for continued renewal • A search for flaws and potential criticism can speed the ability to change Anticipating Opportunities (global leaders must) • The global leader of the future will create a clear and compelling vision for his or her organization and a great capacity for communicating the vision in such a way as to inspire and stretch people beyond expectations. 4. Ex: Sun Microsystems. Developing ideas to meet the needs of the new environment: the world changes. and better products. • Keep your ear to the ground: Encourage people to Develop sensitive and broadbased "antennae" that encourage them to tune into interesting conversations at conferences. products. employees(esp knowledge workers) demand more responsibility. services or products to create and satisfy new needs. better services. Anticipating future opportunities: must have vision. trade shows. more freedom.215 – 216) allot of explanation is available in the book Managing the Unexpected: Assuring High Performance in Age of Complexity . and services and employee retention while balancing speed to value in order to stay competitive because consumers demand better value.” And they do that by: (PAGE 196) 1. • Leaders are initiators • “The unique role of leaders is to take us to places we’ve never been before.
They do this through: 1. • Ex: The Union Pacific Culture: Hubris and the disconnect the UP growth strategy and its operational capabilities prevented the company from recongnizing warning signs and taking early preventative measures. HROs are not disabled by their errors. experience. Non HROs see close calls as evidence of skill and success where HROs see close calls as failures from which leanings can be extracted. 5. process. 2. Sensitivity to Operations: HROs have high situational awareness and relational understandings that allow for continuous adjustments. expertise and training. While they may strive to be perfect.• High performance companies deal effectively with unexpected challenges. they are not. Deference to Expertise: In HROs those with the most expertise make decisions at the front line. 3. Encourage reporting of errors and near misses and extract lessons. It occurs when a system scans and monitors . This requires a deep understanding of people. Reluctance to Simplify Interpretations: HROs manage their complex worlds through developing a deep and detailed view of an operation that allows for a nuanced understanding. • Week 12: Integration & Review Learning to Learn • Organization theorists Chris Argyris and Donald Schon have found it useful to distinguish between two main categories of learning • "Single-loop" learning is a process through which systems are able to regulate their behavior and maintain a steady state. Commitment to Resilience: HROs are not “zero defects” organizations. Common language and shared goals across the organization 4. and raw materials. Preoccupation with Failure: HRO (Highly Reliable Organization) aware that small lapses could occur at the same time. technology. The Homogeneity of mangers allowed executives to misinterpret or be blind to early warning signs. Decisions made based on expertise not rank.
have the freedom to do anything in support of the business and decisions made by the most knowledgeable not by the highest rank. motivate and guide the change while staying focused on vision • The key idea of e-culture is community . have conflict seen as a creative instead of disruptive force. If they do. Effective systems find a good balance between single and double-loop learning. The challenge is to find a good balance between the two types of learning. • "Double-loop" learning rests in an ability to question the appropriateness of a system's rules and to change them when necessary. which is a group of individuals with shared experiences. Opening up to a network of partners: “big everywhere fast” requires maximizing every possible connection 3. Moving from cell-like entities to integrated communities: Significantly more likely than unsuccessful businesses to have departments that collaborate with each other. values and goals who voluntarily feel a sense of group identity and work together for the good of all. teams and organizations always need systems that are capable of "doublelooping. organizing. what to change and how best to effect this change in leading. • High performing systems use "single-loop" learning to produce operational efficiencies and "double-loop" learning to make sure that the strategic direction of the system is sound. Creating a culture to attract and hold world class talent • No quick ways to riches on the web. and to build learning into everything it does. 4. Evolve! Succeeding In the Digital Culture of Tomorrow • In the age of internet business. Treating strategy as improvational theater. working. nothing gets done. This allows it to learn about learning. • Learning to learn is a feedback system that single and double loop learns about the context in which learning occurs. and initiates corrective action whenever undesirable deviations are spotted. compares the information against a set of operating norms." But they have to be careful that they don't end up creating an endless form of "double-looping" where everything is questioned and challenged all the time. • An individual or organization that masters the art of creating contexts will promote deep learning and change • The Key Message: Whenever circumstances are changing or unpredictable. . individuals. it is important for managers to understand why they need to change. 2. and thinking about their organizations • IN E-CULTURE: Leaders must inspire. Need for change. Change needs to be a way of life and must be seen as a creative force within the organizations. Key Elements of e-culture: 1.information in it's environment.
Providing appropriate recognition Training and Development. Building a coalition 5. Continuous Env Monitoring 2. Symbols/Signals 3.225): Continuous Environmental monitoring . 1.221) Leading change: Skills for change masters (P. procedure.they are well up to date with and aware of the environment around them and are able to identify needs in the marketplace and even the needs to change within the organization Breakthrough thinking –ability to use information to generate exciting new ideas. Breakthrough thinking 3. They are unknown to create they puzzle pieces not just put the pieces together. system alignment 9. The importance of Community (P. Guidance structure and process 4. Communications and best practice exchange: multidirectional flow of change. 8.New Approaches for Changing Needs E-business model has altered the way business is and can be done and conducted in this internet-enabled world. Quick wins and local innovations: innovations and demonstrations at the local level that change is possible. milestones. Inspiring a vision 4. shared vision 2. feedback. Skills for Change masters: 1. Champions and Sponsors: people executing change. 7. • • • • • . Policy. 6. Having Persistence and perseverance 7. Common theme. traning action tools 5. Nurturing the Team 6. Education. this is what makes them innovators and not imitators. Measures.Getting Change Rolling: An organization must operate in a way that allows for rapid and continuous change.
Tutorials: Pre and Week 1: Tech Savvy. . • Speak up whenever you see an opportunity for improving team performance • Encourage active participation • Be friendly • Remember that if you’re not working for the team. • Liabilities: Claims against a firm’s assets by creditors. Self-Awareness and Personal Effectiveness Week 2: Creative Problem Solving. you’re probably working against it • Every action you take either strengthens a group or weakens it • Ensure clarity • Know when to step into situation and when not to • Know when you are needed • Always be ready to pitch-in • Motivate others • Leading by action can at times be more effective • When people see you working hard. and machinery) • Liquidity: The level of ease with which an asset can be converted into cash. land. they get motivated to do so as well • Understand you teammates • Help others whenever possible • Be aware of other’s personalities and feelings • Resist group-think • Two models of team development Week 4: Financial Literacy Financial Literacy: Understanding the Numbers • Assets: Any things of value owned or leased by a business. • Income statement: A financial statement of a company’s revenues. expenses. buildings. Stress/ Time Management Week 3: Teamwork • Ground rules • Being an effective team member There are hundreds of things one can do to develop teamwork. • Cash-flow statement: A statement showing when cash flows in and out of a business. and profits over a given period of time.e. • Balance sheet: Statement of a firm’s financial position on a particular date. • Fixed Assets: Assets retained for long-term use with constant prices (i.
People should me managing themselves! - . Green pages) • Current ratio • Acid-test ratio • Inventory turnover • Account receivable turnover • Days sales in receivables • Debt ratio • Times-interest earned ratio • Rate of return on net sales • Rate of return on total assets • Rate of return on common • Earnings per share of common stock • Price/ earnings ratio • Dividend yield • Book value per share of common stock • Gross margin percentage • Earnings per share • Times-interest-earned ratio • Rate of return on shareholder’s equity Week 6: Mid-Term Week 7: Evaluating Performance & Giving Feedback • Giving feedback well Apply the EOJC Model: • What’s the situation where feedback is needed? • What were the performance expectations in this situation? • What are your observations on behaviors and performance? • What are your judgments or evaluations on performance? • What are the consequences? • Receiving feedback well • Evaluating performance The One Minute Manager Managing should not take a lot of time because of two main reasons 1. in one or more ways.• • • Competitive advantage: The ability to perform. Quality of Mgmt 2. things that competitors cannot match. Bankruptcy: When a business does not have sufficient assets or earning power to repay its debts and legal action is taken to dissolve the company and compensate its creditors as much as possible Break Even Volume= fixed cost/ (price – variable cost) Week 5: Financial Analysis (page 283.
(Agreement between the manager and subordinate regarding what needs to be done. and manage teams PAGE 322 The effective power builder: 1) indentifies where the power is in the organization 2) applies formal authority sparingly 3) Strives to develop personal power bases 4) Frames desires in terms of organizational benefits 5) Considers the cost-benefit equation before selecting an influence strategy or power (weighing potential costs vs. motivate others. make sure than when the reprimand episode is over it is over!) Week 8: Valuing Diversity & Power Orientation Think win-win Appreciate diversity (page 308) Globalization results in people from different cultures. praising positive performance ASAP. races. continuous review) . ages. evaluate performance. Unless people are listening. Week 9: Planning & Goal Setting • Use strategic planning to generate new thinking and develop capacities that will position the enterprise for new challenges and unexpected events • Self-management: clarify goals. create strategy. solve problems. communication is a waste of time. and socioeconomic and religious backgrounds Global leader must understand that there are many different styles methods and positions in which people can accomplish goals Building a power base Do not misuse or abuse power. setting goals. can result I negative outcomes in the workplace The use of power can be good or bad Power is the capacity or potential to influence the behavior of others It is a means to facilitate goal attainment.One Minute Praising: (Letting others know that you are going to let them know how they are doing. reprimand more performance.. allowing the message that you felt good about their performance. benefits of using power). reaffirm how valuable you feel the employees are.One Minute Reprimands: (Letting people know u will communicate how they are doing. Recording of each goal on a single page in no more than 250 words. it is vital to learn how to listen. . and planning Week 10: Presentation Skills • Two way listening is a process.One Minute Goals: Clarify responsibilities and nature of the performance standard. To communicate effectively. . handshakes or touch when appropriate.
Read body language.Understand non-verbal communication: to be an effective communicator it is vital to understand the power of non-verbal communication.04 Balancing Influence and Control Important for empathy and motivation. relationships are eroded. It is important to build relationships. Week 11: BPTP • Week 12: BPTP 1. It may seem that telling people exactly what to do is the best way to go accomplish goals. You are more likely to build relationship capital when you: Collaborate Consult Discuss Persuade Empathize Understand Acknowledge personal needs Are humble Give credit Develop and coach subordinates Trust Share information Are honest Follow the lead of others when it can achieve the greater good Deplete relationship capital when you: Make excessive use of command and control style management Rely on positional power Dictate Are impersonal Take credit for other's work Are arrogant Manipulate Use information as power Show little trust "Push" to get decisions and actions you want rather than persuade and influence Leadership . and adapt your message according to what you see. but every time you use raw authority.
execution Create a vision Relate well to people Create a positive environment Ensure that people are enjoying working together Do not treat people like idiots Explain situations Encourage active participation Create ambition Create a “do it” attitude where goals are accomplished It helps to create goals and dates on which they are to be done Work well in a team Share responsibility 5) Align your style with organizational needs Play with your strengths If you have visible weaknesses. but through example.To lead others effectively for a period of time. others and what works to accomplish tasks. vision. encourage others to take on more responsibility so your weaknesses are minimized on objectives 6) Remember the importance of focus Focus time and attention on issues and priorities that really count Ensure everyone understand and acts on strategic priorities . you to know yourself. Lead not only by task delegation. in what ways can you moderate your natural leadership tendencies? 2) Learn what will motivate followers Connect with your followers Think of what motivates people What can you do to motivate others Keep constant motivation Use this motivation to create a success cycle 3) Recognize and build on the contributions of others Learn from the people around you What skills do colleagues have? How can you build on them? How can this create opportunity for success? 4) Excel on the Leadership triangle: people. 1) Build on natural leadership inclinations Effective leadership is an extension of who you are What are your core values? Demonstrate flexibility.
Main Topics on the Exam: • • • • • • Leadership Financial understanding Management what if scenario – real life situations and application Application of Quality Continuous Learning Stake Holders Leadership Topics include Stakeholder/SWOT Quality mindset Engaging customers Financial Understanding Topics included Financial literacy Financial analysis Emerging opportunities Triple bottom line Sustainability The importance of Management what if scenario .
Topics include The employee as a stakeholder Globalization Corporate earthquakes E-culture Mental model/double looping learning Planning and goal setting .
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