Business Models - Metiu Bucharest Nov 2011 Slides

7/30/2019 Business Models - Metiu Bucharest Nov 2011 Slides

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Business Models:Generation and Implementation

Anca MetiuESSEC Business School

Bucharest, November 2011


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Overview

Definition of business models

Generation of business models

Implementation

Strategy issues

Three perspectives: strategic, political, cultural

Organizational structures

Motivation and relationships

Group processes

Management and leadership roles


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Copyright: Osterwalder &

Pigneur


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customer

segments

ey partners

ost structure revenue

streams

channels

customer

relationships

key activities

key resources

value proposition

images by JAMCopyright: Osterwalder &Pigneur


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Sources of information

(including presentations) on

business model generation

http://alexosterwalder.com/

http://www.businessmodelgeneration.com/
http://alexosterwalder.com/http://www.businessmodelgeneration.com/http://www.businessmodelgeneration.com/http://alexosterwalder.com/


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A Model of Organizational Behaviour(Nadler and Tushman)

Informal

Organization

Formalorganization

arrangementsTask

Environment

ResourcesHistory

Individual

OrganizationalGroup

Individual

Inputs Output

Feedback

Strategy


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5 Forces Framework

For analyzing strategy

Devised by prof. Michael Porter

The 5 forces are:


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Perspectives on organizations

They determine what data you see (hear, feel)

in the organization and how we interpret the

data

What questions you ask and where your

attention lies

What meanings you attach

Over time you may begin to identify with a

perspective

No single perspective is adequate

It is easy to get locked into a single

perspective,

but difficult then to deal with complexity

Mediate between the manager (detective) and

organizat ions


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9

Three PerspectivesStrategic DesignOrganizations are machines

An o rganizat ion is a mechanical

sys tem crafted to ach ieve a defined

goal . Parts mus t f i t wel l together

and match the demands of theenvironment.

Action comes through

planning.

PoliticalOrganizations are contests

An organizat ion is a soc ia l system

encompassing d iverse, and

som et imes contradictory, interests

and goals. Compet i tion forresources is expected.

Action comes through power.

Cultural

Organizations are culturesAn o rganizat ion is a symbol ic s ystem

of m eanings , art i facts, values, and

rout ines. Inform al norm s and tradi t ions

exert a strong inf luence on behavior.

Action comes through habit.


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Strategic perspective


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Organization Structures

Functional Divisional Matrix

Division of Labor By Inputs By Outputs By Inputs and Outputs

Coordination Hierarchical supervision.

Plans and procedures

Division General

Manager &

Corporate Staff

Dual reporting

relationships

Decision Rights Highly centralized Separation of

Strategy & execution

Shared

Importance of

Informal Structure

Considerable Modest Low

Politics Inter-functional Corporate Division &

Inter-Divisional

Along matrix & resources

Basis of Authority Positional & functional

expertise

General

management

Responsibility &

resources

Negotiating & resources


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Pros and ConsFunctional Divisional Hybrid/Matrix

Resource

Efficiency

Strong Weak Moderate

Technical

Excellence

Strong Weak/Moderate Moderate

Customer-

Responsive

Weak/Moderate Strong Strong

Coordination/Time

Efficiency

Weak Strong Moderate

Accountability Strong Very Strong Moderate

Ideal Environment Stable Heterogeneous Heterogeneous butrequiring integration

Ref: Nohria, Note on Org. Structure HBS9-491-083

Caution: Matrix structures look appealing because they avoid the glaring

weaknesses of the other forms (shaded areas), but they are difficult to

implement, requiring a lot of natural collaboration.


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Formal Structures: Lessons

Structure is a powerful tool to influencebehavior to achieve organizational goals Formal structures clarify roles, relationships, and

authority within the organization

Design solutions imply trade-offs Organize along the dimensions that are

competitively most important But understand any solution has drawbacks

Management is important in filling the

gaps


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Motivation


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Three Approaches to

Understanding Human

Motivation

Needs Hierarchy Theory (Maslow) Goal-setting Theory (Locke & Latham)

Equity Theory


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Needs Hierarchy Theory(Maslow)

Five levels of needs; the order in which they

demand to be satisfied is from:

- Physiological needs to- Safety needs to

- Social needs to

- Esteem needs to- Self-actualization needs


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Implications of Needs

Promote a healthy workforce

Provide financial security

Provide opportunities to socialize

Recognize employees accomplishments


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Goal-setting Theory(Locke and Latham)

Intentions to work toward a goal are a major

source of work motivation

What type of goals?

Specific Hard

On which you get feedback (self-generated is better)

The goals-performance relationship depends on:

Goal commitment (the internalized desire to reach the

goal)

Self-efficacy beliefs (you think you can do it)


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Implications of goals

Assign specific goals (people perform at

higher levels when asked to meet specific

high-performance goals than when asked to

do your best)

Assign difficult but acceptable performance

goals

Provide feedback concerning goal attainment


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Fairness Approaches

When people compare themselves to

relevant others, they can experience fairness

or lack of fairness

Two types of concerns: Distributive justice (the perceived fairness of the

amount and allocation of rewards)

Procedural justice (the perceived fairness of theprocess used to determine the distribution of

rewards)


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The Folly: Rewarding

for A and Hoping for B (Kerr)

Examples Wanting teamwork, but rewarding individuals

Employee involvement and empowerment but controlling

resources

Why? Over-emphasis on objective simple, quantifiable measures

Over-emphasis on highly visible behaviors

Other values more important than efficiency

Future Need more holistic measures of performance factors

Learn what people value, dont assume


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The Job Characteristics

Model (Hackman and Oldham)

Skill variety the degree to which the job requires a variety ofdifferent activities

Task identity the degree to which the job requirescompletion of a whole and identifiable piece of work

Significance - the degree to which the job has a substantialimpact on the lives or work of other people

Autonomy the degree to which the job provides substantialfreedom and discretion to the individual in scheduling the

work and in determining the procedures to be used in carryingit out

Feedback - the degree to which carrying out the job providesthe person with clear and direct information about theeffectiveness of her/his performance


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Motivation through Teamwork

A self-directed work team is a formally

recognized group of employees who are

responsible for the entire work progress of

segment that delivers a product or service.

Each team member learns a broad range of

skills and switches job assignments

frequently.


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TEAMS


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What makes teams

successful?

Clear leadership

Respect for all roles

Conflict and collaboration and cohesion butnot necessarily compromise are good

Recognize and work through differences with

one goal in mind

The informality of formal groups: other needs

being met (friendship, having fun)


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From Working Group

to Real Team

Real Team:

A small number of people with complementaryskills who are equally committed to a commonpurpose, goals, performance level, and working

approach for which they hold themselvesmutually accountable.

Real teams are a basic unit of performance.

The possible performance impact for the realteam is significantly higher than the workinggroup.


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Real Teams outperform other like groups,

and when led exceptionally well,

outperform all performance expectations


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Individual vs. Team Decision Making

Individual Problem is clear and well-

structured

Group acceptance is not

necessary for implementation Less time

Fewer resources

Greater individual

accountability

Less groupthink

Expert opinion is often better

than teams

Team Reflects variety of

perspectives

Can combine skills, abilities,

information and ideas Generates more alternatives

Increases understanding

Eases implementation

Greater acceptance and

support of the decision

Solutions are better than

individuals on average


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Assuming Roles in Teams

Belbins 9 Roles for Effective Teams1. Plant unorthodox, creative

2. Shaper thrives on pressure, overcomesobstacles

3. Implementer disciplined, reliable, efficient

4. Resource investigator extravert, enthusiastic

5. Monitor/Evaluator strategic, thinker

6.

Completer conscientious, deliverer7. Coordinator mature, chairperson

8. Teamworker cooperative, diplomatic

9. Specialist narrow but deep in skills


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A Managers Job(Mintzberg, 1996)

The Manager Conceiving (a framework, a perspective for the job)

Scheduling (how is the work going to be carried out)

Managing by information Communicating (talking andlistening)

Controlling (designing structures, directing)

Managing through people Leading (being an energy center)

Linking (building networks)

Managing action Doing (solving specific issues)


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Leadership Defined

The process by which one individual influences

other group members toward the attainment

of defined group or organizational goals(Greenberg).


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Managers and Leaders Establish plans Manage execution

Drive for results

Show commitment

Manage profitability Commit to quality

Coach and developothers

Recognize good

performance

DOING THINGS RIGHT

Provide direction Set priorities

Create and communicate avision

Empower and motivateothers

Think strategically

Leverage networks

Lead courageously

Champion change

DOING THE RIGHT THINGS


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Becoming a Leader

Know yourself: theories, values, style

Authenticity be true to yourself

Dont underestimate the ability to develop and

improve your leadership skills through practiceand experience

Similarly, develop your latent charisma: Find your vision, seek to inspire and empower

Make use of your emotional intelligence But, be mindful of risks of leadership abuse


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"Never underestimate the powerof a small group of committed

people to change the world. In

fact, it is the only thing that everhas."

(Margaret Mead)


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Multumesc!

[email protected]

Documents

Business Models - Metiu Bucharest Nov 2011 Slides