January 28, 2009 - Agenda • Chapter 1/Case 1 reprise - Strategy • Chapter 2 - Strategists • Project team discussions • Mission statements • Next week – Strategic management process; Andrews article handout “Strategic Management” involves . . . • LT direction/planning/vision, w/ significant org’l impacts • CHOICES of position implemented through commitments within an interwoven system of operations that become difficult to reverse • Adapting to the dynamic external environment while leveraging internal core competencies • Seeking sustainable competitive advantage and above- average returns Strategies can be manifested as • Plan • Position • Ploy • Pattern • Perspective • Deliberate • Emergent Costco 1. EXTERNAL issues should be viewed BEYOND the perspective of one particular firm; beware of bleeding internal attributes into external issues 2. (+1) Clear strategy/“insightful” discussion, considering insights provided from our readings 3. Financial analysis – main concern = profitability; revenue growth rate, liquidity, LT debt OK 4. Lower the membership fee? Broaden target? Broaden product selection? Broaden payment modes? Imitate Sam’s Club? Cut employee benefits? Expand furniture business? Hire a consultant? Mintzberg:“The Manager’s Job: Folklore and Fact” Type of manager focused on = Source of data for the paper = Main point of the paper = Some contributions of this article: • management folklore vs. fact • managerial context • 10 managerial roles • the “well-rounded” view of managers Managerial “folklore” • The manager is a systematic planner. • The manager has no regular duties. • Formal MIS provides the best information. • Management is a science and a profession. Managerial “facts” • Managers work at an unrelenting pace characterized by brevity, variety, and discontinuity; prefer action to reflection. • Regular duties = ceremony, negotiations, gathering and processing soft information. • Immediate verbal media is preferred. computer • Management = craft, (doing and thinking simultaneously, adapting to conditions, not thinking then doing), vs. science or art. Management is NOT . . . • • • • Quotes -- vintage Mintzberg . . . • MBA programs are socially and economically irresponsible. • My problem with MBA programs is that they train the wrong people in the wrong ways for the wrong reasons. • Society is unmanageable as a result of management. Mintzberg’s Integrated Global Executive MBA Program (“My Way”) 5 “mind-set” modules 1. Reflective (UK) 2. Organization, analytical (McGill) 3. World context (India) 4. Collaborative (Japan) 5. Catalytic (INSEAD) The manager in context: [OUTSIDE ISSUES AND AND PLAYERS] Superiors Manager: Peers: values, experience, inside issues competencies, knowledge, and players mental models Subordinates The Manager’s Roles: an integrated job Formal authority & status Informational Decisional Interpersonal Roles Roles Roles Monitor Entrepreneur Figurehead Leader Disseminator Disturbance Liaison Spokesperson handler Resource allocator Negotiator Mintzberg’s article – take away . . . • • • self-study questions for managers • value of being aware of your own work • cerebral knowledge + experience + skill • control time by turning obligations into advantages and preferences into obligations • feel and breathe the living organization • interest in strategic vision, org’l culture P. Pitcher’s “Artists, Craftsmen, and Technocrats” “Artists” = bold, daring, exciting, volatile, intuitive, entrepreneurial, inspiring, imaginative, unpredictable, funny “Craftsmen” = responsible, wise, humane, straightforward, open-minded, realistic, trustworthy, reasonable, honest, amiable, steeped in the organization and field “Technocrats” = conservative, methodical, no-nonsense, controlled, analytical, determined, meticulous, intense, serious Pitcher: !!!? “Give a technocrat ultimate authority and he/she will drive out everything else.” “Technocrats suck the lifeblood out of the organization.” “Losing artists, a company loses vision; losing craftsmen, it loses its humanity.” Huy – “In Praise of Middle Managers” Main point = Assumptions about middle and top managers (vs. Mintzberg’s assumptions)? Consistency with Porter’s “What is Strategy”? Huy: “In Praise of Middle Managers” Middle manager bashing vs. recognition of their value and key roles- • entrepreneurial • communication • “therapist” • “tightrope artist” C.Montgomery – “Putting Leadership Back into Strategy” Main point = Consistent with Porter, “What is Strategy?” ? Favors which “P” of Mintzberg? C Montgomery, continued • Important link between the strategist and the strategy; key role for CEO • LEADERSHIP – to steer the course; change course as needed, vs. “what hot dish is this company bringing to the table” • Lead consistent with the organization’s purpose (articulate it, implement it) • Shared valued purpose is more powerful than mere choice of product/market/niche • An ongoing adaptive endeavor – navigate! “Mission Statement” = • typically the starting point for strategic planning/thinking/decision making • a relatively enduring yet basic description of an organization’s domain • ideally expresses the “essence” or unique personality of an organization in a compelling way • includes 3 essential components: product; target market, differentiating feature Basic advice for creating useful mission statements: 1. The articulation of PRODUCT should be balanced between broad and narrow. 2. TARGET MARKET should be expressed as precisely as possible. 3. DIFFERENTIATING FEATURE should be specific, realistic, and truly differentiating. 4. CONCISE versions (T-shirt size?) are valued; more often used and remembered. Rape and Abuse Crisis Center provides crisis intervention, advocacy, and counseling services - free of charge - to all persons in the region who have been victims of domestic violence or sexual assault. Elderhostel: We are the nation’s first and the world’s largest education and travel organization for adults 55 and over, dedicated to providing exceptional learning opportunities at remarkable value. We value stimulating, expert information; adventure; and the spirit of camaraderie. Mission Statements: SO WHAT? WHO CARES? WHY BOTHER? Why is it so difficult to develop a concise, compelling, and agreed- upon mission statement? Optional supplementary pieces to accompany the mission statement • Vision statement - future aspirations/stretch • Values statement - shared values and beliefs underlying organizational activities • Goals statement - specific objectives, often quantified, for important activity areas and Values Yahoo’s Mission most essential Our mission is to be the global Internet service for consumers and businesses. Core values = Excellence, innovation, customer fixation, teamwork, community, and fun. Yahoo doesn’t value bureaucracy, losing, arrogance, being “good enough”, the status quo, quick fixes, passing the buck, missing the boat, following, punching the clock . . . Mission: To establish Starbuck’s as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. 6 guiding principles: 1. Great work environment; respect/dignity 2. Embrace diversity as an essential component in how we do business 3. Highest standards of excellence in purchasing, roasting, and delivery of our coffee 4. Enthusiastically satisfied customers always 5. Positive contribution to communities 6. Profitability is essential for future success Cetero Research- Vision Statement Cetero Research will be the premier global provider of early clinical and bioanalytical research services to the biotechnology, generic, and pharma industries. We will achieve this with personal attention to detail, consistently applying leadership, management, scientific and ethical rigor to everything we do, and by creating a culture that fosters change such that we establish the benchmark for customer service, timeliness and quality in the CRO industry. Mission Statement for NDSU MBA Program Being careful to appropriately include each of the three needed components, and compelling “spin” to reflect desirable aspects of the organizational personality YOUR FIRM’S MISSION STATEMENT? Statement of values? Formal stance regarding social responsibility? (Email) examples welcome for next time. NDSU’s Mission Statement With energy and momentum, North Dakota State University addresses the needs and aspirations of people in a changing world by building on our land-grant foundation. ????? We aspire to distinctively serve customers – those linked to the land – through a great business, a business as great as our products. To achieve this aspiration, our strategy is: • Exceptional operating performance; • Disciplined SVA growth, • Aligned high-performance teamwork. NDSU VISION We envision a vibrant university that will be globally identified as a contemporary metropolitan land-grant institution. Peter Drucker . . . “Establishing a mission should never be made on plausibility alone, should never be made fast, and should never be made painlessly.” “The mission decision is far too important to be made by acclamation.” Mission Development Process Who to involve? How? Why?
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