Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

30 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
Five Frictions of Organizational Inertia
1. Ideals, virtues, character
2. Obligations, duties, rights
3. Utilitarian effects
Id..., Ob..., & Ut...
Global Management Roles
The Global Business Manager
(Global scale & competitiveness)

The Country Manager
(Local responsiveness & flexibility)

The Global Functional Manager
(Linking functions worldwide)

The Global/Corporate Manager
(Transnational mission)
Leader+Talent Scout+Developer
4 Total (BM, CM, FM, GCM)
Philips vs Matsushita
"Managing & Changing Global Organizations
Structure follows strategy, but once implemented constrains future strategic choices

Philips and Matsushita envy each other because their historical context/growth trajectories have given them deep competencies:
- Philips in local market responsiveness (Multidomestic Strategy)
- Matsushita in global efficiency and coordination (Global Strategy)
- Philips & Matsushita have implemented very different global organizational structures
- Philips follows a decentralized area structure
- Matsushita follows a centralized global business structure
- Both firms however, need to change to become transnational organizations with both local responsiveness and global efficiency
- While both firms had the will to change, deeply engrained routines, capabilities, and decision-making and management styles inhibited their abilities to change
- Strategy decisions cannot be made independently of organizational context
- Efforts to change require an insight understanding of sources of organizational inertia, and creative ways to “unfreeze” them
Historical Competencies (one local, one global) matched with a Common Need for Organizational Change...
Royal Dutch/Shell in Nigeria & Parable of the Sadhu
"Corporate responsibility issues and ethical decisions involve ambiguous outcomes and conflicting goals
- It is usually difficult to determine with clarity the “return on effort”
- No clarity on the extent of “corporate responsibility”
- These are tough, complex, irreducible problems because they involve clashes among multiple mutually valid obligations, rights, and principles
- Corporate responsibility issues typically involve actions which require collective action
- Most players have substantially different self-interests
- No obvious leader, with “authority” exists. The “government” is often ineffectual because it is “captured by special interests” or must impose consensus decisions
- Shrinking, or minimal action, usually characterize these decisions
- We look to ethical frameworks for a “solution” to get us out of the ethical dilemma
- However, like strategy decisions, there is no clear “right answer” that is knowable ahead of time
- Responsibility and Accountability must be engaged at three levels: strategic, organizational, personal
Corporate Responsibility & collective action...
Bennis on Leadership
"What do we want from our leaders?

Things about leadership I know for sure
1. It makes a huge difference
2. It’s all about relationships

“All great leaders… have followers”

What do we want from our leaders?
1. Competence
2. Character
- Be. Know. Do.
- Authenticity
- Character
3. Engage others in shared meaning
4. Culture of Growth and Learning
- Trust. Openness. Transparency
- Acknowledging and developing others
- Hope
What we want & learn from leaders, and what every leader needs...
“Control” the agenda
Hire the best
Get small wins, early
Ensure your team (of thoroughbreds) doesn’t fight with each

Conceptualize the vision
Communicate the vision to: employees, board, factories, customers
Anticipate the impact of all the decision you make
Achieve results, get wins on the board
Be hands on and know the details (be the most informed)
Enable managers to manage (start with a short leash/ check back discreetly, often)
Be prepared to handle a lot of stress, acknowledge it, and handle it.

Be prepared to make decisions, tough decisions
Don’t use the manager’s title to “force decisions”
Allocate “the” time needed to succeed
Agenda setting in a change environment...
Overcoming market failures
“Economic” Market Failures
- Insufficient competition
- Information deficiencies
- Externalities
- Public goods

“Social” Market Failures
- Morally objectionable exchanges
- Socially important goods
- Procedural fairness
- Distributive justice
Economic (4 - I.I.E.P.) & Social Market Failures (4 M.S.P.D.)...
Silvio Napoli & Schlinder India
"Organizational logic is more often difficult than strategic logic

- Tension between Headquarters and Subsidiaries
- Obtaining and keeping HQ support is critical
- Continuously networking up
- Tension between global business managers perspective and country general managers perspective
- Global strategy and country competitive strategy must align
- Importance of selecting nationals whose values and styles align with corporate culture
- Three important levels of culture: national, corporate and professional
- Recognize that country cultures can clash with corporate cultures but do not accept it passively
- Understand the “self-interest” of all parties with who you must do business, and manage it"
Elevators: HQ (BM) vs Local (CM) & 3 levels of culture...
Successful Global Mgt. Execution
Important but not sufficient – Formal Control Mechanisms
Incentives, compensation, monitoring systems, rewards & punishments

Due Process in Global Strategic Decision-making
- Head office is familiar with subsidiaries local situation
- Two-way communication exists in the global strategy-making process
- Head office is relatively consistent in making decisions across subsidiaries
- Subsidiary units can legitimately challenge HQ views and decisions
- Subsidiary units receive an explanation for final strategic decisions
Incentives, subsidiaries, strategy, & communication...
Global Organizational Structures:

(local responsiveness / global standardization & scale)
- GLOBAL NETWORKS (high/high)

- EXPORTING (neither local nor global standardized)
4 "circles": IF, DF, CGBU's, GN...
Organizational Change Framework
(Source: Kotter)
- Establish a sense of Urgency
- Form a powerful guiding Coalition
- Create a Vision
- Communicate the Vision
- Empower others to act on the Vision
- Plan for and create Short-term Wins
- Consolidate improvements and produce more change
- Institutionalize new Approaches
Urgency, Teams, Vision, & Wins...
•Governance & Boards
(How well-run boards make decisions)
- Drawing the right decision-making lines
- Annual calendars – ensure boards participate in key decisions
- Committee charters – defines the decisions for which board committees are responsible
- Decision protocols – explicitly identifying which decisions should be made by the board, and which should be made by the executives
Decisions, Calendars, & Charters...
Executive Decision-Making Styles
Executive decision styles vary by:
- Organizational Responsibility
- Type of Organization

Executive decision styles vary by culture:
Compare Western vs. Asian
Compare Western vs. Latin
Organization and Culture...
Diversity & Inclusion: Toyota Case Study
"Toyota’s challenge:

Managers’ question: How does it help me sell cars?

Bill Press: CSR needs to become an inherent part of Toyota’s DNA. When it does, it will be the source of a nonimitable competitive advantage that can be leverage for global gain

Toyota’s reasons:

Socially responsible “right” thing to do
Ensure diversity of associates – need to recruit the best/diverse talent
Business imperative

Evidence suggests (based on mid-1990s data) that organizations with greater diversity outperform those without

Average ROI from S&P: Bottom 100: 7.9%, Top 100 18.3%"
Competitive Advantage, Recruiting, and ROI...
Three Skills of the General Manager:
Leading in Times of Change:
(Bunker & Wakefield)
Balance #1: Catalyze change/Cope with transition
Balance #2: Show a sense of urgency/ Demonstrate realistic patience
Balance #3: Be tough/Be empathetic
Balance #4: Show optimism/Be realistic and open
Balance #5: Be self-reliant/Trust Others
Balance #6: Capitalize on strengths/ Go against the grain
Rising Star Characteristics (Corporate Advisory Board)
- Intelligence
- Are highly motivated with a strong work ethic
- Results oriented decision makers ready to take responsibility for actions
- Operate in a value driven, ethical context
- Think in terms of the total strategic direction of the company with all its technological challenges.
- Team players, respected by peers, with strong communication and listening skills.
- Have demonstrable leadership skills, with the ability to choose and motivate top performers.
- Are flexible and capable of dealing with change and ambiguity.
- Are mobile and willing to follow career opportunities.
Strategy Formulation & Inertia:
Cognitive Inertia
- Framing lock-ins
- Dangerous analogies
- Emotional traps
Fix: Sheer awareness, systematic analysis, critical questioning

Action Inertia
- Sticky routines
- Ingrained culture
- Leadership failures
Fix: Rank action inertia in comparative terms and compare to strategic alternatives
•National & Organizational Cultures
–Hofstede Framework
Power Distance
Uncertainty Avoidance
Masculinity vs. Femininity
Long-term vs. Short-term
•Managing Multicultural Teams
(Brett, Behar and Kern)
The core challenges:

Direct vs indirect communication

Trouble with accents and fluency

Differing attitudes toward hierarchy and authority

Conflicting norms for decision-making
Wolfgang Keller: Konigsbrau
"The three skills of a manager
- Managing boundaries
- Enabling others
Effective team management
HQ – Subsidiary relationship
- Corporate executive vs. local manager relationships
Matching executive decision-making style with role
Building a self-sustaining team/organization
Why managers derail
•Financial Leadership at Norvatis
Managing from the Middle
(How to make a difference from a functional area)


- Focus on the big picture, interpret all functional decisions in their strategic context
- Be flexible and integrative
- Develop a deep understanding of the business models
- Good business judgment/business sense
- Know where and how to intervene/where to add value
- Use influence extensively
- Network and partner
- Be a resource not a roadblock
- Listening effectively/learning new “functional” languages
- Creating value for other functions
- Helping create better decision-making
- What gets measured get done
Paul Levy & BIDMC
Style, passion, commitment, transparency consistency, persistence all matter, a lot, in change situations

Change Management
- Creating a sense of URGENCY
- Changing the BATNA
- Creating a guiding coalition
- Celebrating wins and success
Overcoming Organizational Inertia
- Identifying the key sources, isolating the inertia, and changing it
Creatively Unfreezing Organizational Inertia
Taking charge and setting direction
Effective communication
- Balancing urgency and grim prospects with hope and success
Managing the external boundaries of the organization
BRL Hardy (Integration with Global Strategy)
An global organization with multiple tensions:

HQ vs Subsidiary
Global Manager vs Country Manager
pressures for local responsiveness vs drivers for global efficiency

- BRL Hardy is moving toward a global business strategy in wine but has previously had a multi-domestic strategy and structure

- Transitioning from one strategy to another places extreme stress on organizational structures and systems, and will be resisted

- Tension between need for structures and systems which promote global scale and coordination and competitive demands in local market for local responsiveness

- Example of allowing talented managers to work out “turf wars” themselves

- The process of global decision-making is as important as coming up with the “right” strategic answers
ELC Simulation (Barnga Game)
Three important Cultural Levels

1. National (and/or Pan-National) Cultures

2. Corporate Cultures
e.g. IBM, Toyota, HP, etc.

3. Professional/Career Cultures
e.g. Accounting, finance, engineering, marketing professions

The “Silent Language” of Culture

The language of time
The language of space
The language of material goods
The language of friendship
The language of agreement (Context)
Herrell on Governance & the CEO Role
Don’t just set the agenda, CONTROL it. (Understand that vision is Critical)

Global managers must:

- Understand the culture and differences of the markets in which their products (services) are being sold
- Maintain the integrity of the brand
- Go see their management team & build relationships

CEO Accountability & Responsibility
- Eight (8) groups in addition to the board: shareholders, employees, customers, partners, SEC/Govt, Brand, Auditors, Press

Manage YOUR Board
- Don’t let them “just” focus on the numbers
- Educate them about your product line & your brand
The Tasks of the General Manager Framework:
- STRATEGY (vision, business models, etc.)
- PEOPLE (hiring, coaching, etc.)
- RESULTS (profit, growth, share, etc.)
- PROCESSES & SYSTEMS (structure, IT, culture)
Strategy decisions cannot be made independently of organizational analysis
Global organizational management structures & decision-making processes must match and align with, and support, global strategies
- Strategy formulation, domestic or global, cannot be done in a vacuum.
- Existing organizational arrangements, culture, core competencies (incompetencies), etc., constrain future strategic decisions
- Managers should carefully identify potential sources of organizational inertia
- Five potential sources
Five Steps to Success:
1. Senior management commitment
2. Increase workforce diversity
3. Diversity & Inclusion are part of all business plans
4. Management accountability for CSR results
5. North American diversity advisory board

The Results (Actual & Intended)

1. Better problem solving
2. More reflective and responsive
3. More creative