Class Materials Overview

Class Materials Class Materials OverviewOverview

Susan C. LemontSusan C. Lemont

December 17, 2007December 17, 2007

Presentation OverviewPresentation Overview

Tonight’s ReadingsTonight’s Readings Synergy between modelsSynergy between models

Final AssignmentFinal Assignment CentrelinkCentrelink Mad About PlaidMad About Plaid The Writing Center at HarvardThe Writing Center at Harvard

EriksonErikson The Erikson life-stage virtues, in the The Erikson life-stage virtues, in the

order of the stages in which they may be order of the stages in which they may be acquired, are:acquired, are:

1.1. Hope- Basic Trust vs. MistrustHope- Basic Trust vs. Mistrust2.2. Will- Autonomy vs. Shame and DoubtWill- Autonomy vs. Shame and Doubt3.3. Purpose- Initiative vs. GuiltPurpose- Initiative vs. Guilt4.4. Competence- Industry vs. InferiorityCompetence- Industry vs. Inferiority5.5. Fidelity- Identity vs. Role ConfusionFidelity- Identity vs. Role Confusion6.6. Love (in intimate relationships, work Love (in intimate relationships, work

and family)- Intimacy vs.... Isolationand family)- Intimacy vs.... Isolation7.7. Caring- Generativity vs. StagnationCaring- Generativity vs. Stagnation8.8. Wisdom-Ego Integrity vs.... DespairWisdom-Ego Integrity vs.... Despair

Styles of Organizational Styles of Organizational ManagementManagement

Rensis Likert’s model*Rensis Likert’s model* Continuum of four management stylesContinuum of four management styles System I – Exploitive AuthoritativeSystem I – Exploitive Authoritative System II – Benevolent System II – Benevolent AuthoritativeAuthoritative

System III – ConsultativeSystem III – Consultative System IV – ParticipativeSystem IV – Participative

*Rensis Likert – *Rensis Likert – The Human OrganizationThe Human Organization..

Stages of ComplexityStages of Complexity

SimpleSimple ComplicatedComplicated ComplexComplex ChaoticChaotic

Anita M. McGahanAnita M. McGahan

How Industries ChangeHow Industries Change

RadicalRadical CreativCreativee

IntermediaIntermediatingting

ProgresProgressivesive

Threatened

Threatened Not Threatened

Not Threatened

Core Assets

Core Activities

Geoffrey MooreGeoffrey Moore Early Market - introducing new technologyEarly Market - introducing new technology Chasm - caught betwixt and betweenChasm - caught betwixt and between Bowling Alley - technology is gaining Bowling Alley - technology is gaining acceptanceacceptance

Tornado - technology is necessary and Tornado - technology is necessary and standardstandard

Main Street Early- hypergrowth has subsided Main Street Early- hypergrowth has subsided Main Street Mature - consolidation and M&AMain Street Mature - consolidation and M&A Main Street Declining- next generation on Main Street Declining- next generation on the horizonthe horizon

Fault Line/End of Life - technology Fault Line/End of Life - technology obsolescenceobsolescence

Aligning I nnovation with the Life Cycle Taken from G.A. Moore, “Darwin and the Demon”, HBR (Ju ly- Aug): 86- 92

1. Disruptive Innovation Technology Adoption Life Cycle 2. Application Innovation (creating the new market) 3. Product Innovation 4. Process Innovation 5. Experiential Innovation Incremental Improvement 6. Marketing Innovation 7. Business Model Innovation 8. Structural Innovation Reinvention & Restructuring

1

2

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8

Skills for Innovation Skills for Innovation (Moore)(Moore)

Must mutate core competencies Must mutate core competencies over timeover time

Must confront the “inertia Must confront the “inertia demon”demon”

Must extract resources from Must extract resources from legacy processes and repurpose legacy processes and repurpose them for the new innovationsthem for the new innovations


Necessitates learning a new Necessitates learning a new mindsetmindset Construct the next generation of Construct the next generation of competitive advantagecompetitive advantage

Deconstruct legacy resources when Deconstruct legacy resources when necessarynecessary

Decision MakingDecision MakingProbability of Getting Probability of Getting

It RightIt Right


Choose the appropriate leaderChoose the appropriate leader Ed Schein - “The Anxiety of Ed Schein - “The Anxiety of Learning”Learning”

ResilienceResilience

Future success of business Future success of business hinges on resilience (Hamel and hinges on resilience (Hamel and Valikangas)Valikangas)

Resilience – The ability to Resilience – The ability to dynamically reinvent business dynamically reinvent business models and strategies as models and strategies as circumstances changecircumstances change


Challenges to building resiliencyChallenges to building resiliency Cognitive Challenge (consciousness about Cognitive Challenge (consciousness about changing)changing)

Strategic Challenge (awareness for Strategic Challenge (awareness for building options)building options)

Political Challenge (diverting resources Political Challenge (diverting resources for innovation)for innovation)

Ideological Challenge (commit to going Ideological Challenge (commit to going beyond excellence)beyond excellence)

Recognize “strategy decay” and work to Recognize “strategy decay” and work to regenerateregenerate


Seeking to enhance resiliencySeeking to enhance resiliency Minimize propensity to over fund Minimize propensity to over fund legacy strategieslegacy strategies

Recognize when “optimization” Recognize when “optimization” needs to be set aside to make way needs to be set aside to make way for a “restless exploration” of for a “restless exploration” of new strategy optionsnew strategy options

Competitive strategy for today’s Competitive strategy for today’s marketplacemarketplace

Creating a Sustainable Creating a Sustainable Organization (Funk)Organization (Funk)

One whose characteristics and One whose characteristics and actions are designed to lead to actions are designed to lead to a “desirable future state for a “desirable future state for all stakeholders”all stakeholders”

Incorporate intangibles such as Incorporate intangibles such as intelligent property and intelligent property and employee talentemployee talent

Blue Ocean Strategy Blue Ocean Strategy (Kim & Mauborgne)(Kim & Mauborgne)

Red Ocean industriesRed Ocean industries Existing industries with defined Existing industries with defined boundaries and competitive rules of the boundaries and competitive rules of the road greatly understoodroad greatly understood

Compete to outperform rivals for greater Compete to outperform rivals for greater market sharemarket share

Blue Ocean Strategy Blue Ocean Strategy (Kim & Mauborgne)(Kim & Mauborgne)

Blue Ocean industriesBlue Ocean industries Industries not in existence, with unknown Industries not in existence, with unknown market space and untainted by competitionmarket space and untainted by competition

Create new industries, or alter the Create new industries, or alter the boundaries of the firmboundaries of the firm

Represent the engine of growthRepresent the engine of growth

DICE TechniqueDICE Technique

Assessing major change Assessing major change initiatives and creating new initiatives and creating new entities – Sirkin et al.entities – Sirkin et al.

DICE TechniqueDICE Technique

Duration – time until the change Duration – time until the change program is completedprogram is completed

Integrity – ability to complete Integrity – ability to complete the initiative on time (dependent the initiative on time (dependent on member’s skills and traits)on member’s skills and traits)

Commitment to change (top Commitment to change (top management [C1] and employees [C2]management [C1] and employees [C2]

Effort (over and above the usual Effort (over and above the usual workload)workload)

Breaking the Code of Breaking the Code of ChangeChange

The role of consultants in The role of consultants in change initiativeschange initiatives Ed SchienEd Schien

CentrelinkCentrelink

Preserving morale during Preserving morale during downsizing (Misrah, et al.) or downsizing (Misrah, et al.) or restructuring (Centrelink case)restructuring (Centrelink case) Does this involve “unlearning” and Does this involve “unlearning” and “relearning”?“relearning”?


Project ManagementProject Management Predictable SurprisesPredictable Surprises Uncertainty in ProjectsUncertainty in Projects

Meyer, Loch and PichMeyer, Loch and Pich Characterizing Characterizing

Uncertainty in ProjectsUncertainty in Projects VariationVariation

Levels vary randomly, but in a predictable rangeLevels vary randomly, but in a predictable range Foreseen UncertaintyForeseen Uncertainty

Known factors influence project, but in unpredictable Known factors influence project, but in unpredictable waysways

Unforeseen UncertaintyUnforeseen Uncertainty Influence factors cannot be predictedInfluence factors cannot be predicted

ChaosChaos Unforeseen events completely invalidate the project.Unforeseen events completely invalidate the project.


Deeper dive into the material Deeper dive into the material for the final assignment.for the final assignment.

Integrating separate corporate Integrating separate corporate culturescultures Ed ScheinEd Schein

The Role of Formal Structures and The Role of Formal Structures and ProcessesProcesses Jay R. Galbraith, Jay R. Galbraith, Breaking the Code of Breaking the Code of ChangeChange


PitfallsPitfalls Information Systems Manager Information Systems Manager perspectiveperspective

Do not regurgitate the caseDo not regurgitate the case

Mad About PlaidMad About Plaid

IntroductionIntroduction Niall FergusonNiall Ferguson Dana ThomasDana Thomas Dov SeidmanDov Seidman Gil CorkindaleGil Corkindale Student Commentary as the Fifth Student Commentary as the Fifth RespondentRespondent

ConclusionConclusion


IntroductionIntroduction Each commentator views the case Each commentator views the case through their own frame or lens through their own frame or lens based on their experience. based on their experience.

The solution does not lie within The solution does not lie within just one correspondent, but by just one correspondent, but by integrating parts of each integrating parts of each commentary.commentary.


Niall Ferguson - a very partial Niall Ferguson - a very partial list:list: Theory E and Theory OTheory E and Theory O

Holding multiple frames/Developing Holding multiple frames/Developing Versatile LeadershipVersatile Leadership

Thinking vs.... KnowingThinking vs.... Knowing

Traps in the Decision Making ProcessTraps in the Decision Making Process

Behavioral Approaches to ChangeBehavioral Approaches to Change

Final AssignmentFinal Assignment

Writing Center at HarvardWriting Center at Harvard Did you receive this suggestion on Did you receive this suggestion on your commentary?your commentary?

Are you a distance student?Are you a distance student?

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Class Materials Overview