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30 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Five Frictions of Organizational Inertia
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- DISTORTED PERCEPTION
- DULLED MOTIVATION - FAILED CREATIVE RESPONSE - POLITICAL DEADLOCKS - ACTION DISCONNECTS |
DP, DM, FCR, PD, AD
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ETHICS IS WHAT "I.O.U."
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1. Ideals, virtues, character
2. Obligations, duties, rights 3. Utilitarian effects |
Id..., Ob..., & Ut...
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Global Management Roles
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The Global Business Manager
(Global scale & competitiveness) Strategist+Architect+Coordinator The Country Manager (Local responsiveness & flexibility) Sensor+Builder+Contributor The Global Functional Manager (Linking functions worldwide) Scanner+Cross-Pollinator+Champion The Global/Corporate Manager (Transnational mission) Leader+Talent Scout+Developer |
4 Total (BM, CM, FM, GCM)
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Philips vs Matsushita
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"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...
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Royal Dutch/Shell in Nigeria & Parable of the Sadhu
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"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...
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Bennis on Leadership
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"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...
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HERRELL'S FREE ADVICE
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“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...
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Overcoming market failures
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“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.)...
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Silvio Napoli & Schlinder India
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"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...
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Successful Global Mgt. Execution
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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...
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Global Organizational Structures:
(local responsiveness / global standardization & scale) |
- INTERNATIONAL FUNCTIONAL (low/low)
- DECENTRALIZED FOCUS (high/low) - CENTRAL GLOBAL BUS. UNITS (low/high) - GLOBAL NETWORKS (high/high) - EXPORTING (neither local nor global standardized) |
4 "circles": IF, DF, CGBU's, GN...
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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...
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•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...
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Executive Decision-Making Styles
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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...
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Diversity & Inclusion: Toyota Case Study
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"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...
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Three Skills of the General Manager:
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- SETTING THE AGENDA
- ENABLING OTHERS - NETWORKING |
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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 |
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Rising Star Characteristics (Corporate Advisory Board)
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- 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. |
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Strategy Formulation & Inertia:
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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 |
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•National & Organizational Cultures
–Hofstede Framework |
Individualism/Collectivism
Power Distance Uncertainty Avoidance Masculinity vs. Femininity Long-term vs. Short-term |
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•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 |
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Wolfgang Keller: Konigsbrau
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"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 |
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•Financial Leadership at Norvatis
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Managing from the Middle
(How to make a difference from a functional area) Generalizations: - 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 |
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Paul Levy & BIDMC
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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 |
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BRL Hardy (Integration with Global Strategy)
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THE GLOBAL WINE INDUSTRY
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 |
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ELC Simulation (Barnga Game)
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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) |
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Herrell on Governance & the CEO Role
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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 |
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The Tasks of the General Manager Framework:
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- STRATEGY (vision, business models, etc.)
- PEOPLE (hiring, coaching, etc.) - RESULTS (profit, growth, share, etc.) - PROCESSES & SYSTEMS (structure, IT, culture) |
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Strategy decisions cannot be made independently of organizational analysis
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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 |
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Five Steps to Success:
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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 |
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