Activities for Today

1. Activities for Today • Attendance Goals for Today • Simulation Presentation Guidelines • Chapter 9 (self-study) • Case: How do grow a premium brand? • Break • CEP • Good Managers Don't Make Policy Decisions • Fast-Cycle Capability for Competitive Power • Homework • Round # 6 (before 11.59 p.m.) • Auto Advance will take place on Apr 18 @ 8.00 a.m. MQM485/Sp08/Class13

2. Notion of Fit or Consistency • The strategy selected must be consistent with the external environment and firm capabilities (referred to as Strategy Formulation). • Once a strategy is selected there must be fit within the various elements of the firm and the chosen strategy (referred to as Strategy Implementation). • SF-SI need to be Tightly Linked Together for Strategy to be Successful. • High performing organizations have a good fit both externally and internally • The Notion of Fit brings in the need for a holistic view of the organization – i.e. to view the organization as a integrated whole and that everything is connected to one another

3. Organizational Structure • Organizational structure specifies the firm’s formal reporting relationships, procedures, controls, and authority and decision-making processes • It is critical to match organizational structure to the firm’s strategy

4. Examples • Size and Structure • Rules in a Large/Small Firm • Rate of Change in Environment and Structure • DMV versus R&D Operations • Technology (complexity) and Structure • Restaurant versus Chemical Plant • Information • Military Command Structure (Then and Now) • Speed • Age & Structure (evolutionary view – a constant search for FIT) Not a question of GOOD or BAD structure but whether it is the Right or Wrong Structure?

5. Strategy Vs Structure DISUCUSSION QUESTION • Does Strategy Follow Structure or Does Structure Follow Strategy in “real” Organizations? • Which is True and Which Should be True?

6. CASE STUDY:How Do You Grow A Premium Brand? • Should Transition’s Expand? • Why? Or Why not? • If Yes -- What suggestions would you offer to Transition? • If No – What do you propose Gordon should do?

7. Good Manager’s Don’t Make Policy Decisions – H. Edward Wrapp • According to Wrapp, what are the common characteristics that successful executives exhibit?

8. Good Manager’s Don’t Make Policy Decisions – H. Edward Wrapp • According to Wrapp, what are the common characteristics that successful executives exhibit? • Keeping well informed: Keep open many pipelines of information • Focusing time and energy: Concentrate a few significant Issues • Playing the power game: Cultivate sensitivity to power structure of the company • A sense of timing • Cautious pressure • Appearing imprecise: Give the organization a sense of direction with open-ended objectives • Maintain Visibility • Avoid policy straight jackets • Muddling with a purpose: Spot opportunities and relationships in the stream of operating problems and decisions • Exploitation of change • Contrasting pictures

9. Fast Cycle Capability for Competitive Power – Bower & Hout • Discussion Questions How can speed be used to gain competitive advantage? How do fast cycle companies differ from traditional organizations? What suggestions the authors offer in “getting the clock started”? • Active Learning Exercise How can we apply this concept to the simulation?

10. Fast Cycle Capability for Competitive Power – Bower & Hout • Discussion Question How can speed be used to gain competitive advantage? • Quality • Cost • Innovation • Reduced Wastage • An Organization Geared for Performance

11. Fast Cycle Capability for Competitive Power – Bower & Hout • Discussion Question How do fast cycle companies differ from traditional organizations? • Company in multifunctional units • Track cycle times throughout the organization • Building learning loops into the organization • Understand that every company is a system

12. Fast Cycle Capability for Competitive Power – Bower & Hout • Discussion Question What suggestions the authors offer in “getting the clock started”? • Examine Cycle Times and Raise Standards • Set up unusual organization mechanisms to focus on cycle time • Develop information system to track value adding activities • Make time count in managing employees • Accelerate Learning • Key – BALANCE OTHERWISE CONFUSION AND DISRUPTION WILL BE THE RESULT