ARE 112 Spring 2017 Notes #7 Structures and Strategic Thinking May 15th

Transcription

1 I. Class Notes 1. Reading: a. IBM book b. The Duke Hospital case c. The Deloitte case 2. Assignments a. See Canvas b. #A Analysis Assignment c. #B Written Assignment after the second midterm exam II. Quick Review III. Organizational Structures Just a Few Terms for Now Note: Recall that structures was one of the components of the diagram from Notes #1. A. Functions 1. Staff 2. Line B. Unity of command 1. Often referenced to a military setting but a normal business setting 2. Contrasted to matrix management system C. Includes topics previously discussed: 1. Authority 2. Responsibility 3. Span of control 4. Teams ARE112_Fa17_Notes_07_Structures_and_Strategic_Thnkg.docx - 1 -

2 5. Horizontal and vertical structures 6. Generally has focus on the processes the business processes of the organization and not the products or services of the organization. IV. Planning and Controlling A Manager s Environment A. Terms 1. Management four tasks: a. Planning: i. Identifying and selecting appropriate goals ii. and courses of action b. Organizing: Structuring working relationships to achieve organizational goas see below c. Leading: Articulating a clear vision of the organizational goals so organizational members can understand the part they play - after the second exam d. Controlling: i. Evaluating how well the organization is achieving its goals ii. and taking actions to maintain and/or improve performance iii. Problem solving iv. Scorekeeping v. Attention directing 2. Organizational structure two types a. Organizational chart the noun version and the traditional version i. Example ii. Lines of authority solid lines iii. Dashed lines advisory or collaborative relationships iv. Horizontal lines Working relationship v. Vertical lines Reporting relationship vi. Can reflect the organizational culture as seen in the IBM book vii. Definition: An organization chart shows the structure and the relationships in an organization. The organizational chart formal system of tasks and reporting relationships that coordinated and motivates employees to work together. ARE112_Fa17_Notes_07_Structures_and_Strategic_Thnkg.docx - 2 -

3 b. Organigraph the verb version i. Definition: An organigraph is a graphical representation of a company's structure or processes. It is used as an alternative to a traditional organizational chart as it does not imply the same degree of linear hierarchy that an organizational chart does. Organigraphs are used to expose critical associations and competitive opportunities as opposed to viewing all parties, departments, and business units as separate entities. They also can reveal relationships between departments, products, supply chains, and more within an organization that might not otherwise be apparent. ii. Business strategists, consultants, and academics use organigraphs to analyze the dynamics of organizations. iii. Organizational charts are used by managers to run the business iv. Examples B. Organizational design a verb: Where we get the organizational structure. The process by which managers make specific organizing choices that result in a particular organizational structure. 1. Driven by the organizational environment examples: a. Technology b. Human resources c. Strategy 2. Types of organizational design a. Divisional i. Product ii. Geographic iii. Market iv. Can be a combination of the above as well b. Functional - Examples i. Finance ii. Marketing iii. Production iv. Administration v. Human Resources c. Problem solving i. Like the matrix management system discussed earlier ii. Project driven not process driven as found in the functional or divisional forms ARE112_Fa17_Notes_07_Structures_and_Strategic_Thnkg.docx - 3 -

4 3. Control systems in the organizational structure a. Behavioral control b. Financial control c. Bureaucratic control d. Clan or social controls V. The Idea of Strategic Thinking Note: One of the purposes of organizational structures is to allow for strategic thinking A. A framework for strategic thinking 1. Strategic intent A disciplined approach to only do what matters 2. A systems perspective What are my resources? 3. Thinking in time This is vision - to be discussed later in these notes 4. Intelligent opportunism How do you connect your resources to your vision? 5. Hypothesis-driven Contingency thinking: What happens when we get there B. How do we put wheels on strategic thinking? 1. Strategic management tools different than the lens we used to view strategy a. Mission: What we do this is a focus on the strategic business units SBU s and is an internal view. This is the mission statement for IBM Global Financing: The mission of Global Financing is to facilitate clients acquisition of IBM hardware, software and services. b. Vision: How we see ourselves and how we want our stakeholders to see us this has a focus on the marketplace and is generally organizational-wide in its scope IBM's vision is to be the world's most successful and important information technology company. i. Successful - in helping our customers apply technology to solve their problems. And successful in introducing this extraordinary technology to new customers. ii. Important - because we will continue to be the basic resource of much what is invented in this industry." c. We saw these two topics in our strategic lenses from prior classes 2. The company's business model is built to support two principal goals - from IBM: a. Helping clients succeed in delivering business value by becoming more innovative, efficient and competitive through the use of business insight and information technology (IT) solutions; b. and, providing long-term value to shareholders. c. The business model has been developed over time through strategic investments in capabilities and technologies that have the best long-term growth and profitability prospects based on the value they deliver to clients. The company's strategy is to focus on the high-growth, high-value segments of the IT industry. ARE112_Fa17_Notes_07_Structures_and_Strategic_Thnkg.docx - 4 -

5 C. Mission and vision face the marketplace that was where Lou was looking. 1. The marketplace includes customers, other stakeholders, new customers, new products, social issues and more on a long list. 2. And it faces forward into the future VI. Creativity and Innovation A. Creativity: 1. generate new and original ideas the R in research and development 2. that are actionable the D in research and development B. Areas or the focus of creativity: 1. Productivity generally called process R&D 2. New products 3. New structures C. Creativity needs: Expertise, motivation, and creative thinking skills and abilities. D. Innovation: applying new ideas to the organization 1. Invent the application of the new idea from the creative process for the organization 2. Develop makes the new idea practical 3. Diffuse puts the idea into the hands of the end user 4. Integrate makes the new idea permanent in the organization 5. Monitor tracking of the innovation to validate its continued use E. Why we use the terms: R & D research and development 1. We want to link the idea to the deed this is an old saying 2. Deed means accomplishment or result ARE112_Fa17_Notes_07_Structures_and_Strategic_Thnkg.docx - 5 -