; Timing
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Timing

VIEWS: 12 PAGES: 12

  • pg 1
									 Timing- The Bedrock of Anticipatory
            Management
 Intro
      o Corporate success will be contingent on the ability to synchronize
        actions to the dynamics of an ever-shifting marketplace
      o The formula for business success has not changed over the years
             Companies have always needed to offer the right products and
               services at the right time in the right place at the right price
 Timing can make a real difference
      o Wayne Gretzky
             The key is to anticipate
      o Luck has been defined as what happens when preparation meets
        opportunity
      o While Grezky’s success may be attributed to his keen sense of timing,
        a closer look reveals that timing is really the result of four distinct
        capabilities
             ASAP
                    Anticipation
                    Speed
                    Agility
                    Perceptiveness
 Anticipation: Giving the Firm a Head Start
      o If you can’t have 20/20 foresight into what the future holds…
        want20/20 foresight into what the future may hold
      o Anticipatory management includes asking WHAT IF
      o Take a mental journey into the future by exploring various
        possibilities
      o By running scenarios executives may be able to identify emerging
        factors and forces
             Lessening the chance of being blindsided
o By seeing possible situations and events earlier, management has
  additional lead time to position the firm to capitalize on opportunities
  and prevent problems
o Scenarios have offensive and defensive dimensions
      Offensive scenarios
            They may indicate emerging market/product/service
               opportunities
      Defensive scenarios
            May reduce the likelihood that management will be
               blindsided by events that could be detrimental to firm
o Scenarios may not be able to offer certainty as to what may happen
      But they do encourage executives to explore possible futures
            The Quick Environmental Scanning Technique…
               QUEST
                   o It’s a systematic way to identify future events that
                      could affect their firms
o Scenarios play an integral role of the “3 I’s” of anticipatory
  management
      Inquires
            Into what the future may hold
            Once management identifies certain possibilities, it can
               direct its attention to estimating the probabilities that
               such events may occur and analyze the likelihood of
               certain combinations of events
      Insights
            May be gained from the inquiries
            Insights into what the future may hold can cause
               management to see the world differently
                   o Thereby serving as catalysts for new initiatives
            Newfound insights will likely produce more innovative
               strategies for firms that embrace strategic thinking
      Initiatives
            That are incorporated in the firm’s plans and strategies to
               position itself
                   They may help capitalize on emerging opportunities or
                     prevent potential problems
                   Anticipatory management gives executives the
                     opportunity to operate proactively
     o Firms that incorporate anticipatory management will be victims of
       change
     o Anticipatory management is one of the qualities that separates
       successful executives from mid-level managers
            Most managers spend their time trying to solve problems
                   In a sense most of that time is spent coming up with
                     answers to pressing questions
            The more successful managers spend more of their time
              preventing problems
                   Aim to identify questions that will be asked in the future,
                     which gives them time to come up with better answers
            The best executives to anticipate what the future may hold
                   Come up with answers before anyone else even knows
                     the questions
                        o Develop products and services before people even
                           realize they want them
     o “If you ask customers what they want, they’ll tell you what they need
       now…
            Companies need to anticipate what customers will want and
              have the products and services ready when they recognize those
              needs and desires”
                   These companies are the ones that are first to the market
                        o Create a temporary legal monopoly
 Speed: a decisive advantage in the race to win customers
     o Basic info
            We live in a time in which people are infatuated with speed
            Real time
                   The shortest possible lapse between idea and action
                        o Between initiation and result
            When change is the problem, speed is the solution
 The marketplace has always been characterized as survival of
  the fittest
       In a world of ever-accelerating change, the marketplace
          may now be characterized as survival of the swiftest
 In today’s economy, organizations compete in 4 races against
  the clock
       The races
              o 1. Developing innovations in technology, products,
                or processes
                     Has spawned the “close to the customer”
                       movement as well as the formation of
                       alliances between leading producers and
                       leading users
              o 2. Getting innovation off the drawing board and
                into the hands of consumers
                     Is benefiting from various technological
                       breakthroughs
                            Prototype development and rapid
                              manufacturing are noteworthy
                                 o The ability to develop a
                                    prototype and test it for
                                    consumer response has always
                                    been a crucial step in the
                                    introduction of new products
              o 3. Increasing the efficiency or quality of the
                innovation or developing new applications
              o 4. Using what has been learned in the previous
                steps to move to another innovation
       The 1st and 2nd are receiving considerable attention today
          from firms that want to operate from a vanguard position
 The desire to accelerate the introduction of new products has
  accentuated the need for reducing cycle time in the
  manufacturing process
             Flexible manufacturing allows companies to modify production
               processes between diverse products
                   Can respond rapidly and efficiently to customer needs
             The time it take to introduce a new product has been cut
               dramatically through the use of concurrent design and
               manufacturing
                   Technological innovations are now challenging the
                      proverbial “speed barrier”
                         o Have made rapid prototyping a reality
                                  Directly from computer aided design to the
                                     manufacture of actual products
                         o Rapid prototyping combined with rapid
                              manufacturing technology
    o Proceed with Caution: Unbridle speed can spell disaster
             Words of caution and clarification
                   Speed may appear to be a virtue; but raw unbridled speed
                      can derail a firm
                         o Handle the throttle with finesse
                         o Speed associated with new product introduction,
                              rapid growth , and massive corporate change can
                              lead to disaster
             Executives should try to extend the firm’s headlights to see
               things earlier
                   If this can’t be done, they need to enhance the firm’s
                      agility
             Speed is like a fast computer processer
                   Without the right software, no matter how fast it is, it
                      can’t do anything productive
                         o The software provides focus and agility
 Agility: Turning on a Dime
    o Basic
             In times of rapid change, agility is essential for corporate
               success
             Dancing with elephants proverb
            Firms that lack agility are destine to fall prey to the here
               today gone tomorrow syndrome
     There are 3 types of people in the world
            Those who make things happen, those who watch things
               happen, and those who wonder what happened
     Agility should not be viewed as a survival skill
            It should be seen as a means for thriving in the years
               ahead
     Companies that see changes coming and can move quickly will
        not only be able to prevent problems that could cause their
        demise
            They will be able to capitalize on the opportunities that
               come with those changes
     Agility is a multidimensional competency
            Applies to numerous dimensions of a firm’s operations
     Corporate success is contingent on the company’s ability to
        clear each hurdle in the lease amount of time
            Firms that can identify a need, design and develop a
               product, and produce, offer, and service that product in
               the least amount of time will win customers
                   o Firms that outsource key dimensions of the value
                      chain should choose their allies carefully
                           The ability to sense and seize opportunities
                             will be contingent on the extent that
                             suppliers and companies in the distribution
                             network are just as agile
                                 A firm can only be as fast as the
                                    slowest link in its overall value
                                    change
o Agility Requires the ability to focus on what really matters
     Just as it is clear that no firm can be all things to all peopoe, it is
        clear that no firm can pay attention to everything going on
        around it and within it
      For a firm to be agile, it must be able to focus on what really
        matters
      Companies with a clear sense of mission and a clearly
        articulated are far less apt to be distracted or seduced by short-
        lived opportunities
      Focus not only enables management to direct its attention to the
        truly important issues, it also enhances the ability to respond
        quickly when variances occur
             Focus can be enhance with several things
                   o Managing-by-objectives (MBO)
                           Forces a firm to indentify what it is striving
                             to accomplish
                   o Time-activity networks (PERT,CPM)
                           Help identify the most critical path(s)
                   o Sensitivity analysis (pareto 80/20)
                           Helps identify the few actions that will make
                             the greatest difference
             These techniques help identify in advance the factors that
               need to be monitored closely
      Real-time info tech enables people at all levels of the firm to
        monitor even the smallest variances, permitting management to
        focus its attention on exceptional variances
             The sooner a variance is recognized, the quicker the firm
               can respond
             Having crucial info on a real-time basis permits real-time
               adjustments
o Sensing “windows of opportunities”
      Companies that are able to see the world changing will have a
        head start over those that deal only in the here and now
      A premium on foresight and the ability to quickly modify a
        firm’s capabilities and corresponding market offerings
      “windows of opportunity” may be opening and closing more
        rapidly as well
      Entrepreneurship is usually associated with identifying an
        emerging opportunity
             Sustain growth for established enterprises is contingent
               on a firm’s ability to capitalize on additional market
               opportunities
             The need to identify the opportunities, however, tends to
               overshadow the importance of a keen sense of timing
o Lead time: four types of firms
      When it comes to agility, there can be laggard firms, reactive
        firms, proactive firms, and vanguard firms
      Agility can be offensive or defensive in nature
             It is on the offensive when the firm sees a change early
               enough to respond positively to it
             it is on the defensive when the firm is blindsided and
               management has to scramble just to survive
      the extent that the firm has lead time and the ability to adjust
        constructively to the situation is what separates the four types
        of firms
             lead time determines whether the firm will be an agile
               leader in the marketplace or a laggard that is destined to
               leave a precarious existence until it goes under
      The types
             laggard firms
                   o often miss or ignore the first signs that the
                      marketplace is changing or that their performance
                      is deteriorating
                   o instead of acknowledging the new reality, they
                      frequently rationalize or deny it
                   o it usually takes a major crisis for management to
                      see the need for change
                           often too little, too late
             reactive firms
                   o sense the change in the market or the firm’s
                      deteriorating situation earlier than a laggard firm
                    o may be able to save the day and keep the firm
                       afloat
                            but this comes at a high price
                                  constant state of “red alert”
                    o strains resources cuz it’s costly to fight a fire
             proactive
                    o the major difference btw reactive and proactive
                            perceptiveness
                    o look for “leading” indicators to identify changes
                       within and outside their firms
                    o have lead time so can respond to changes
                       positively
             vanguard
                    o operate with a longer time horizon
                    o sense changes early
                    o may still have to respond to changes in the
                       marketplace, but their ability to initiate the changes
                       themselves separates them from the pack
                    o perceptiveness allows them to spend more time
                       preparing for a different tomorrow
                    o their agility is directed toward creating and
                       capitalizing on opportunities and preventing
                       problems rather than solving them and putting out
                       fires
o triage management: no room for “paralysis by analysis”
       decisiveness plays an integral role in developing corporate
         agility
       decisiveness is paramount where the ability to:
             size up the situation
             determine what is truly critical and urgent
             take swift action can make the difference between life an
                 death
       in an every changing marketplace, there is little room for
         tentativeness and bureaucracy
            corporate triage situations are occurring with growing
              frequency
            decisiveness enhances a company’s ability to seize the moment
                   it is crucial in getting a product delivered in time when
                     the expected carrier fails to come through
            corporate agility flourishes in enviros where there is a sense of
              urgency and where people are able to keep their heads under
              fire
 Perceptiveness: the ability to time corporate initiatives
     o Basic
            Numerous ventures fail
                   Not because they lack good ideas, but because their
                     executives do not have a good sense of timeing
            5 types of offensive timing initiatives
                   When to start the venture
                   When to introduce a new product
                   When to introduce a new process
                   When to enter a new territory
                   When to initiate major expansions
            4 types of defensive initiates – entail reducing or phasing out
              certain corporate activities
                   When to drop a product
                   When to exit existing markets
                   When to consolidate ops
                   When to sell part or all of the venture
            Firms with perceptive timing are able to sense the window
              being formed, position themselves to serve the market when the
              opp opens, capitalize on the opp, then exit before the window
              closes on them
            Entrepreneurs of “first-to-market” firms are also at risk
                   Although they are perceptive and can recognize what the
                     market wants initially, many lack the resources and/or
                     managerial wherewithal to support their firm’s rapid
                     growh
      Firms that are too late are at risk
      Staying too late is risky
      They need for perceptiveness may never have been greater
             More and more firms are adopting a responsive rather
               than a proactive type of strategy
o Positioning the firm for a different future
      “futuring” in strategy development
             Futuring is far less rigid than traditional long-range
               planning techniques
             It recognizes the turbulence and discontinuity of the
               marketplace and of change itself
                   o Instead of developing formal detailed planes,
                      futuring focuses on identifying the position the
                      firm desires to occupy in the years ahead
      McKenna believes the best firms learn to gauge what they
         should do next by the smallest shift in the wind
      “the best way to predict the future is to invent it:
             The notion of being a leading firm is based on the idea of
               having a vision for what could be, being out in the front
               of the pack, introducing breakthrough change, and being
               the first to reap the benefits from breaking away from the
               status quo
      A valuable dimension to futuring
             There isn’t just one future
             There can be multiple futures
                   o A firm should determine which it wants
                           Then develop a strategy that gives it the
                              “high ground”
      Futuring ties anticipation, speed, agility, and perceptiveness
         together
             The insights, in turn, serve as the foundation for the
               development of innovative approaches for dealing with
               them
      Contingency plans increase a firms agility
                 They need to be developed when
                       o The probability of being derailed is too high
                       o The consequences of being derailed are too high
                       o (or) Both conditions exist
          Execs need to recognize that their plans are based on
            assumptions about future market conditions
                 They must know that no plan is flawless
 Summary
    o Two things should be clear about corporate timing
          The accelerating rate of change will increase the need for ASAP
            competencies in the years ahead
                 The ability to sense the need for change, learn what needs
                   to be done differently, develop innovative approaches for
                   providing value to the marketplace, and have the
                   resources available to initiate the changes
          There will be times when anticipation and speed will provide
            the opp to capitalize actively on emerging opps
          In other situations, particularly times of discontinuous change,
            the firm may need to improvise
                 In these instances, its perceptiveness and agility will
                   enable it to respond quickly
    o Every effort should be made to create an environment in which the
      firm can operate from an offensive stance
          “you wither make dust or you eat dust”

								
To top