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-
Strategies can be manifested as
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
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
• 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.
• 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.
• 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
• 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
Mintzberg’s Integrated Global
Executive MBA Program
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]
values, experience, inside issues
competencies, knowledge, and players
The Manager’s Roles:
an integrated job
Leader Disseminator Disturbance
Liaison Spokesperson handler
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,
“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
“Give a technocrat ultimate authority and
he/she will drive out everything else.”
“Technocrats suck the lifeblood out of the
“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”?
“In Praise of Middle Managers”
Middle manager bashing vs.
recognition of their value and key roles-
• “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
• a relatively enduring yet basic description
of an organization’s domain
• ideally expresses the “essence” or unique
personality of an organization in a
• includes 3 essential components: product;
target market, differentiating feature
Basic advice for creating useful
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.
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
We value stimulating, expert information;
adventure; and the spirit of camaraderie.
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
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 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.
We envision a vibrant university
that will be globally identified
as a contemporary metropolitan
Peter Drucker . . .
“Establishing a mission should never be
made on plausibility alone, should never be
made fast, and should never be made
“The mission decision is far too important to
be made by acclamation.”
Mission Development Process
Who to involve?