Program for Senior Management 3 PSM-3

1. Program for SeniorManagement 3 (PSM-3)

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3. STRUCTURE OF PSM

5. Global structure of geo-politics/-economics is determined by ideology/security competition and economic competition Thailand is small open economy. Key factors: macro-economics stability, investment, equality, de-merit, law enforcement Policy Analysis � Policy type � Policy simulation � Policy objectives � Policy trade off � Policy instruments � Policy implementation � Policy channels � Policy evaluation/alteration

7. Strategy is a decision to allocate resources to achieve certain objective Strategic management involves strategic planning process (inside-out/outside-in/look foreword) and implementation process (structure, system, operation, control, and evaluation) flexibility, adaptability, and efficiency Using hardware and software as levers to create value

8. INTERDEPENDENCY WITHIN THE ORGANIZATION

9. All strategies are perfect until you implement people and continuing change A model of planned change Changing environment (e.g. customer centric, efficiency, finance, ethics and social responsibility) Recognizing problem (organization iceberg and congruence model Identifying change agent and leadership Diagnosis Identifying constraints Selecting intervention (relevance, time frame, resources and availability, sponsors and mood) Implementing Evaluating Leader visioning, aligning, empowering, coaching, caring

11. A policy model involves agents, options, interactions Predict and present Errors in economic policy analysis Association-causation error Error of composition Ceteris paribus error Secondary effects error Error of ignoring opportunity cost (getting public services) Error of assuming that everything is about money (how about happiness (from freedom to pursue�)

12. Work with markets and take care of market failures Market failures Not perfect competition People not bearing costs of actions (totally/partially) Free valuable goods/services Information asymmetry Poor distribution Real world people, technology, process in public policy process Interventions provision vs. production

13. Limit to government intervention Social choice mechanism (that doesn't take into account aggregated utility) Bureaucratic supply (and regulation) : principal/ agent problem, non-competitive environment, civil service constraints, resources inefficiency Features of policy implementation Rarely linear Multi-agency process Winners & losers (zero sum game) No resources attached to new policies

15. Decision being influenced by Problem framing: risk averse to gains & risk seeker to losses Availability heuristic: specific vivid, easy, and unexpected information than statistics Representative ness heuristic : characteristics associated with our stereotype Anchoring (not adjust much from initial anchor move first strategy, opt-in/opt-out strategies, etc.)

16. Strategies for influencing group decision: procedural and interpersonal using heuristic, leadership (improve group decision rewards/inspire/role model), and Politics (influence group decision) Negotiation tips: Do not reveal your reservation price. Never change reservation price unless BATNA or terms of the deal change. Use first offer tactic to anchor Value perceived (quality, convenient, consistency) = price paid value creation

17. Value creation mind set not offering products/services but total customer experience control/convenience/choice Not product life cycle but customer life cycle demographics, customer needs (evolve over time) Not transaction agent but relationship buyers (loyalty) Value driven leadership (people as the only source of differentiation and value creation) Brand as a set of promises of values Brand value; economic (saving), functional (innovation), and emotional (cultural)