Wednesday, January 16 Agenda

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Wednesday, January 16 Agenda

• Chapter 1 reprise (Strategy)
• Chapter 2 (Strategists)
• R2.1, 2.2, 2.3, 2.5
• Chapter 12 (Organizational Values)
• R12.1, mission statements, 12.2
• Team organization
• Case 1 assignment

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Chapter 1 - Reprise . . .
Mission Strategy ? operational effectiveness ?
efficiency Program Tactic Objective Policy
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Strategy involves

• decisions about orgl position(s)
• actions to implement the decisions
• (long term) resource commitments
• pursuit of competitive advantage through
• leveraging core competencies
• in a dynamic environment
• Examples NDSU vs. MSUM vs. CC vs.
• U Mary vs. Rasmussen vs. U Phoenix . . .

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Chapter 1 . . .

• Mintzbergs 5Ps of strategy
• deliberate vs. emergent strategy
• strategy content vs. strategy process

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Day 1 What is strategy?Day 2 Who are the
strategists and what do they do?

• Strategists (Ch. 2)
• the tasks
• the context
• the individuals
• the ropes
• those in the middle

• Values (Ch. 12)
• ethics
• social responsibility
• institutional values

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MintzbergThe Managers Job (R2.1)

• Primary contributions
• management folklore vs. fact
• managerial roles
• managerial context
• the well-rounded view of managers

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Managerial folklore

• 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.

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Managerial facts

• Managers work at an unrelenting pace
  characterized by brevity, variety, and
  discontinuity prefer action to reflection.
• Regular duties ceremony, negotiations,
  processing soft information.
• Immediate verbal media is preferred.
• Management craft?

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Management art or science?

• Art
• the conscious use of skill (acquired by
  experience, study, and/or observation) and
  creative imagination in a production process
• Websters dictionary

• Science
• a knowledge covering general truths or general
  law, especially as obtained through the
  scientific method

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Quotes -- vintage Mintzberg . . .

• MBA programs are socially and economically
  irresponsible.
• 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 management.

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The manager in context

• OUTSIDE ISSUES AND AND PLAYERS
• Superiors
• ? ?
• Manager Peers
• values, experience, inside issues
• competencies, knowledge, and players
• mental models
• ?
• Subordinates

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Managing on three levels

• 1. Through information -
• communicating controlling
• 2. Through people -
• leading linking
• 3. Through action -
• direct involvement doing

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The well-rounded view of the managers role

• 1. Conceptual
• 2. Administrative
• 3. Interpersonal
• 4. Action

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Mintzbergs Integrated Global Executive MBA
Program(My Way)

• 5 mind-set modules
• 1. Reflective (UK)
• 2. Organization, analytical (McGill)
• 3. World context (India)
• 4. Collaborative (Japan)
• 5. Catalytic (INSEAD)

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Pitcher (R2.2)

• Artists
• Craftsmen
• Technocrats

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Pitcher !!!?

• Give a technocrat ultimate authority and he/she
  will drive out everything else.
• Technocrats suck the lifeblood out of the
  organization.
• Losing artists, a company loses vision losing
  craftsmen, it loses its humanity.

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WrappGood Managers Dont Make Policy
Decisions (R2.3)Prescription?

• Contributions?

• Limitations?

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Wrapps advice

• Keep well informed.
• Dont avoid involvement with operating problems.
• Concentrate on a limited number of important
  issues.

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Wrapps advice, continued

• Play the power game
• -use open-ended objectives
• -practice the art of imprecision
• -avoid policy straight-jackets
• -use corridors of comparative indifference
• -value a sense of timing exploit change

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Wrapps advice -- concluded

• Learn to spot opportunities in a stream of
  operating problems and decisions
• (vs. use of the sludge hammer approach)
• Management
• the art of muddling through --
• but muddle with a purpose!

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A useful approach for advancing of strategic
initiatives

• Assess coalitions/reactions
• (use of trial balloons . . .).
• Proceed on a piecemeal basis as necessary or
  possible in the midst of shifting conditions.
• Reorganize/reframe various pieces of the
  initiative as needed.

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Huy (R2.5)In Praise of Middle Managers

• Middle manager bashing vs.
• recognition of their value and key roles-
• entrepreneurial
• communication
• therapist
• tightrope artist

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Selznick (R12.2)Leadership in Administration

• Organizations vs. Institutions
• The executive becomes a statesman as he makes
  the transition from administrative management to
  institutional leadership. (pg. 300)

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Functions of institutional leadership (pg. 303)

• 1. Definition of institutional mission and role.
• 2. The institutional embodiment of purpose.
• 3. The defense of institutional integrity.
• 4. The ordering of internal conflict.
• The default of leadership (pg. 301-302)
• failure to set goals
• superficial acceptance of goals
• interpersonal rather than institutional
  leadership

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STARBUCKS MISSION
To establish Starbucks as the premier purveyor
of the finest coffee in the world while
maintaining our uncompromising principles while
we grow.
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Starbucks guiding principles . . .

• 1. Provide a great work environment , , , with
  respect and dignity.
• 2. Embrace diversity as an essential component of
  how we do business.
• 3. Apply the highest standards of excellence to
  the purchasing, roasting, and fresh delivery of
  our coffee.
• 4. Develop enthusiastically satisfied customers
  all of the time.
• 5. Contribute positively to our communities and
  our environment.
• 6. Recognize that profitability is essential to
  our future success.

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Useful concepts from Selznick -

• distinctive competence - commitments to ways of
  acting and responding the character of an
  organization
• managerial values - shared values and beliefs an
  ingrained way of thinking and acting related to
  organizational culture linked to distinctive
  competence

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Mission Strategy Program Tactic Objective Policy

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Mission Statement

• typically the starting point for strategic
  planning/thinking/decision making
• a relatively enduring yet basic description of an
  organizations domain
• ideally expresses the essence or unique
  personality of an organization in a compelling
  way
• includes 3 essential components product target
  market, differentiating feature

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Basic advice for creating useful mission
statements
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.
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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.
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Mission Statements
SO WHAT? WHO CARES? WHY BOTHER?
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Why is it so difficult to develop a concise,
compelling, and agreed-upon mission statement?

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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

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NDSU VISION
We envision a vibrant university that will be
globally identified as a contemporary
metropolitan land-grant institution.
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Elderhostel
We are the nations first and the worlds largest
education and travel organization for adults 55
and over, dedicated to providing exceptional
learning opportunities at remarkable value. We
value stimulating, expert information adventure
and the spirit of camaraderie.
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Yahoos Mission and Values
Our mission is to be the most essential global
Internet service for consumers and
businesses. Core values Excellence,
innovation, customer fixation, teamwork,
community, and fun. Yahoo doesnt value
bureaucracy, losing, arrogance, being good
enough, the status quo, quick fixes, passing the
buck, missing the boat, following, punching the
clock . . .
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Peter Drucker . . .
Establishing a mission should never be made on
plausibility alone, should never be made fast,
and should never be made painlessly. The
mission decision is far too important to be made
by acclamation.
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Business ethics . . . . ??

• The public be damned.
• (Willaim Henry Vanderbilt)
• Virtue has never been as respectable as money.
• (Mark Twain)
• Theres nothing wrong with our business.
• Lawsuits are the problem.
• (Chairman of Manville, asbestos manufacturer)

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Gustafsson (R12.1)New Values, Morality, and
Strategic Ethics

• Increasing importance of ethical strategy?
• Use of ethical committees, codes of conduct,
  vision statements, developing ethical climate for
  conducting business?

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Reasons for ? role of ethics in strategy

• Large corporations many stakeholders, massive
  resources and social impact actions have
  long-term repercussions
• Corporations exist in a social context
  legitimation and institutionalization are
  accompanied by social/moral demands
• Corporate management relies on ethical
  underpinnings
• More complicated ethical dilemmas today (from
  diversity, technology, pace, scope)

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Social responsibility

• Considers long-term interests of society
• responds to social concerns
• involves ethical actions (beyond legal
  requirements)
• strives for good corporate citizenship
• balances stockholder and stakeholder interests

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Social Responsibility

• Major issues today?
• How to address?
• Why? So what? Who cares? Why care?
• Downside?
• Trend?

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Case next week

• MacArthur in the Phillipines
• READ CAREFULLY
• Prepare thoughts and formal responses to
  questions in advance hand in during class
• Be ready for discussion