Notes #7 Structures and Strategic Thinking

Transcription

1 I. Class Notes 1. Exam #2 II. Structures Just a Few Terms for Now 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 5. Horizontal and vertical structures 6. A component of the diagram from the first set of lecture notes 7. Generally has focus on the processes the business processes of the organization III. 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 a noun a. Example b. Lines of authority solid lines c. Dashed lines advisory or collaborative relationships d. Horizontal lines Working relationship e. Vertical lines Reporting relationship f. Can reflect the organizational culture as seen in the IBM book g. Definition: A formal system of tasks and reporting relationships that coordinated and motivates employees to work together ARE112_Su16_Notes_07_Structures_and_Strategic_Thnkg.docx - 1 -

2 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 ARE112_Su16_Notes_07_Structures_and_Strategic_Thnkg.docx - 2 -

3 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 3. Control systems in the organizational structure a. Behavioral control b. Financial control c. Bureaucratic control d. Clan or social controls IV. The Idea of 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. ARE112_Su16_Notes_07_Structures_and_Strategic_Thnkg.docx - 3 -

4 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. 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 V. 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_Su16_Notes_07_Structures_and_Strategic_Thnkg.docx - 4 -

5 VI. The Deloitte Case Sometimes it takes a revolution VII. The Business Case: From Wikipedia, the free encyclopedia A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need. An example could be that a software upgrade might improve system performance, but the "business case" is that better performance would improve customer satisfaction, require less task processing time, or reduce system maintenance costs. A compelling business case adequately captures both the quantifiable and non-quantifiable characteristics of a proposed project. Business case depends on business attitude and business volume. Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks. Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived. Note that it is not the job of the project manager to build the business case, this task is usually the responsibility of stakeholders and sponsors. Assignment #9: State in just one sentence a business case for what happened the Deloitte case and the Duke hospital case. Very simple, just the idea of why what happened. VI. Strategic Analysis of Wile E. Coyote ARE112_Su16_Notes_07_Structures_and_Strategic_Thnkg.docx - 5 -