MGMT 478 Ch. 8-14

Leading Teams and Organizations

- Understanding and Facilitating Group/Team Processes: articulating a groups purpose; a vision; stimulating effort, results, and creativity - Understanding Organizational Processes and Dynamics: skills to handle political and social dynamics - Global Mindset: Engendering trust through genuine awareness and openness to people from diverse backgrounds

Disruptive Innovation

- a term to characterize breakthrough innovation popularized by Harvard Professor Clayton Christensen - usually shakes up or revolutionizes industries with which they are associated even though they often come from totally different origins or industry settings that the industry they disrupt

Interpersonal Leadership

- ability to communicate: good leaders are good verbal and emotional communicators - building and maintaining relationships: empowering and developing others, managing conflict, and fostering cooperation - influence and motivation: consistent capacity to motivate others, to persuade, to get people to do things and to focus on outcomes

self/personal leadership

- self awareness: key for a leader to have a deep understanding of oneself and ones strengths and challenges - strong and positive character: trust is key for any leader - sense of purpose: your motivation and ability to lead increases when believe in your purpose

intrapreneurship freedom factors

10 characteristics identified by Dr. Gordon Pinchot and elaborated upon by others that need to be present in large companies seeking to encourage and increase the level of intrapeneurship within their company 1. self selection 2. no hands off 3. the doer decides 4. corporate "slack" 5. end the "home run" philosophy 6. tolerance of risk, failure, and mistakes 7. patient money 8. freedom from turfness 9. cross functional teams 10. multiple options

Specialization Businesses

Businesses with many sources of advantages. Skills in achieving differentiation (product design, branding, innovation, scale

KISS Principle

Keep It Simple Stupid - Keep the vision simple

Six Sigma

a continuous improvement program adopted by many companies in the last two decades that takes a rigorous and analytical approach to quality and continuous improvements with an objective to improve profits through defect reduction, yield improvement, improved customer satisfaction, and best in class performance

Golden Parachute

a form of bonus compensation that guarantees a substantial cash payment if the executive quits, is fired, or simply retires

Golden Handcuffs

a form of executive compensation where compensation is deferred (either restricted stock plan or bonus income deferred in a series of annual installments)

Grand Strategy Selection Matrix

a four cell guide to strategies based upon whether the business is: 1) operating from a position of strength or weakness 2) rely on its own resources versus having to acquire resources via merger or acquisition

passion (of a leader)

a highly motivated sense of commitment to what you do and want to do

Principles (of a leader)

a leaders fundamental personal standards that guide their sense of honesty, integrity, and ethical behavior

balanced scorecard

a management control system that enables companies to clarify their strategies, translate them into action, and provide quantitative feedback as to whether the strategy is creating value, leveraging core competencies, satisfying the company's customers, and generating a financial reward to shareholders 1. financial 2. internal business process 3. learning and growth 4. customer

ethical standards

a persons basis for differentiating right form wrong

Innovation

a strategy that seeks to reap the initially high profits associated with customer acceptance of a new or greatly improved product

intrepreneurship

a term associated with entrepreneurship in large, established companies; the process of attempting to identify, encourage, enable, and assist entrepreneurship within a large, established company as to create new products, processes, services, or improvements that become major new revenue streams and/or sources of cost savings for the company - someone that starts a company within a larger company

dashboard

a user interface that organizes and presents information from multiple digital sources simultaneously in a user friendly formal on the computer screen

CCC21

a world famous cost oriented continuous improvement program at Toyota - Construction of Cost Competitiveness for the 21st Century

punitive power

ability to direct and influence others based on your ability to coerce and deliver punishment for mistakes or undesired actions by others, particularly subordinates

referent influence

ability to influence others derived from their strong desire to be associated with you, usually because they admire you, gain prestige or a sense of purpose by that association or believe in your motivations

Conglomerate Diversification

acquiring or entering business unrelated to firm's current technologies, markets, or products

Concentric Diversification

acquisition of businesses that are related to the acquiring firm in terms of technology, markets, or products

Vertical Acquisition

acquisition of firms that supply inputs such as raw materials, or customers for its outputs, such as warehouses for finished products

Concentrated Growth

aggressive market penetration where a firm's strong position and favorable market growth allow it to control resources and effort for focused growth

Strategic Business Unit

an adaptation of the divisional structure in which various divisions or parts of divisions are grouped together based on some common strategic elements, usually linked to distinct product/market differences.

Portfolio Techniques

an approach pioneered by the Boston Consulting Group that attempted to help managers "balance" the flow of cash resources among their various businesses while also identifying their basic strategic purpose within the overall portfolio

Parenting Strategy Approach

an approach to crafting the best corporate role in a multi-business company create by BCG based on the "levers" corporate partners can use to influence business units. Six parenting strategy types: 1) Hands-off owner 2) Financial Sponsor 3)Family Builder 4)Strategic Guide 5) Functional Leader 6)Hands-on Manager

Leaders Vision

an articulation of a simple criterion or characterization of what a leader sees the company must become in order to establish and sustain global leadership

Fragmented Industry

an industry in which there are numerous competitors (providers of the same or similar product or service) such that no single firm or small group of firms controls any significant share of the overall industry sales

Emerging Industry

an industry that has growing sales across all the companies in the industry based on growing demand for the relatively new products, technology, or services

breakthrough innovation

an innovation in a product, process, technology, or the cost associated with it that represents a quantum leap forward in one or more of these ways

Market Focus

applies a differentiation strategy approach, or low-cost strategy, or a combination- and does so solely in a narrow market niche rather than trying to do so across the broader market. May be geographically focused or defined by product type features, customer type or combination

Policies

broad, precedent- setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making

Growth Industry Strategies

business strategies that may be more advantageous for firms participating in rapidly growing industries and markets. Emphasize brand recognition, product differentiation, and financial resources to support both heavy marketing expenses and effect the price competition on cash flow

Low Cost Strategy

business strategies that seek to establish long term competitive advantages by emphasizing and perfecting value chain activities that can be achieved at costs substantially below what competitors are able to match on a sustained basis. This allows the firm in turn to compete primarily by charging a price lower than competitors can match and still stay in business

Speed Based Strategies

business strategy built round functional capabilities and activities that allow the company to meet customer needs directly or indirectly more rapidly than its main competitors

Stars

businesses in rapidly growing markets with large market shares

Volume Businesses

businesses that have few sources of advantage, but the size is large-typically the result of scale economies

Question Marks

businesses whose high growth rate gives them considerable appeal but whose low market share makes their profit potentially uncertain

Cash Cows

businesses with a high market share in low-growth markets or industries

Stalemate Businesses

businesses with few sources of advantage, most of them small. Skills in operational efficiency, low overhead, and cost management are critical to profitability

Fragmented Businesses

businesses with many sources of advantage, but they are all small. They typically involved differentiated products with low brad loyalty, easily replicated technology, and minimal scale economies

Liquidation

closing down the operations of a business and selling its assets and operations to pay its debts and distribute any gains to stockholders

Joint Ventures

commercial companies created and operated for the benefit of the co-owners; usually two or more separate companies that form the venture

Retrenchment

cutting back on products, markets, operations, because the firm's overall competitive and financial situation cannot support commitments needed to sustain or build its operation

Strategic Processes

decision making, operational activities, and sales activities that are critical business processes

Functional Tactics

detailed statements of the means or activities that will be used by a company to achieve short term objectives and establish competitive advantage

Horizontal Acquisition

growth through the acquisition of one or more similar firms operating at the same stage of the production-marketing chain

Global Industry

industry in which competition crosses national borders

Declining Industry

industry in which the trend of total sales as indicator of total demand for an industry's products or services among all the participants in the industry have started to drop from the last several years with the likelihood being that such a trend will continue indefinitely.

Vision Performance

key element of good organizational leadership is to make the performance expectations that a leader has very clear as they seek to move toward the vision

Strategic Intent

leaders clear sense of where they want to lead their company and what results they expect to achieve

Dogs

low market share and low market growth business

special alert control

management actions undertaken to thoroughly, and often rapidly, reconsider a firms strategy because of a sudden, unexpected event

implementation control

management efforts designed to assess whether the overall strategy should be changed in light of results associated with the incremental actions that implement the overall strategy. these are usually associated with specific strategic thrusts or projects and with predetermined milestone reviews.

strategic surveillance

management efforts to monitor a broad range of events inside and more often outside the firm that are likely to affect the course of its strategy over time

strategic control

management efforts to track a strategy as it is being implemented, detect problems or changes in its underlying premises, and make necessary adjustments

premise control

management process of systematically and continuously checking to determine whether premises upon which the strategy is based are still valid

Short-term objective

measurable outcomes achievable or intended to be achieved in one year or less

debt financing

money "loaned" to an entrepreneur or business venture that must be repaid at some point in time

equity financing

money provided to a business venture that entitles the provider to rights or ownership in the venture and which is not expected to be repaid

Outsourcing

obtaining work perviously done by employees inside the companies from sources outside the company

Strategic Alliances

partnerships that are distinguished from joint ventures because the companies involved do not take an equity position in one another alliances with suppliers, partners, contractors, and other providers that allow partners in the alliance to focus on what they do best

milestone reviews

points in time, or at the completion of major parts of a bigger strategy, where managers have predetermined they will undertake a go-no go type of review regarding the underlying strategy associated with the bigger strategy

Patching

process by which corporate executives routinely remap their businesses t match rapidly changing market opportunities-adding, splitting, transferring, exciting, or combining chunks of business

Organizational Structure

refers to the formalized arrangements of interaction between and responsibility for the tasks, people and resources in an organization

Innovation Time out Policy

refers to what is usually an official company guideline, or policy, establishing an amount of time during each work week an employee, or specific types of employees can at their choice set aside from their regular assignment to work on innovative, new ideas they are thinking about

Differentiation

seeks to build competitive advantage with its product or service by having it be "different" from other available competitive products based on features, performance, or other factors not directly related to cost and price. Difference is hard to copy or imitate

Market Development

selling present products, often with only cosmetic modification, to customers in related marketing areas by adding channels of distribution or by changing the content of advertising or promotion

incremental innovation

simple changes or adjustments in existing products, services, or processes

strategic thrusts or projects

special efforts that are early steps in executing a broader strategy, usually involving significant resource commitments yet where predetermined feedback will help management determine whether continuing to pursue the strategy is appropriate or whether it needs adjustment or major change

Restricted Stock

stock given to an employee who is prohibited from selling the stock fora certain time period and not at all if they leave the company before that time period

Grand Strategy Clusters

strategies that may be mores advantageous for firms to choose under one of four sets of conditions defined by market growth rate and the strength of the firm's competitive position

Mature Industry Strategies

strategies used by firms competing in markets where the growth rate of that market from year to year has reached or is close to zero Sell to experienced, repeat buyers who are making choices among known alternatives. New products are hard to come by.

Divisional Organizational Structure

structure in which a set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions

Functional Organizational Structure

structure in which the tasks, people, and technologies necessary to do the work of the business are divided into separate functional groups (marketing, finance, etc) with increasingly formal procedures for coordinating and integrating their activities to provide the business's products and services

Simple Organizational Structure

structure in which there is an owner and a few employees and where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision

Position Power

the ability and right to influence and direct others based on the power associated with your formal position in the organization

expert influence

the ability to direct and influence others because they defer to you based on your expertise or specialized knowledge that is related to the task, undertaking, or assignment in which they are involved

reward power

the ability to influence and direct others that comes from being able to confer rewards in return for desired actions or outcomes

peer influence

the ability to influence individual behavior among members of a group based on group norms, a group sense of what is the right thing or right way to do things, and the need to be valued and accepted by the group

information power

the ability to influence others based on your access to information and your control of dissemination of information that is important to subordinates and others yet not otherwise easily obtained

Empowerment

the act of allowing an individual or team the right and flexibility to make decisions and initiate action

perseverance (of a leader)

the capacity to see a commitment through to completion long after most people would have stopped trying

invention

the creation of new products or processes through development of new knowledge or from new combination of knowledge

Leadership Development

the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the manages employed

innovation

the initial commercialization of invention by producing and selling a new product, service, or process

Relative Competitive Position

the market share of a business divided by the market share of its largest competitor

Parenting Opportunities Framework

the perspective that the role of corporate headquarters companies is that of a parent sharing wisdom, insight, and guidance to help develop its various businesses to excel

Organizational Leadership

the process and practice by key executives of guiding and shepherding people in an organization toward a vision over time and developing that organizations future leadership and organization culture.

entrepreneurship

the process of bringing together the creative and innovative ideas and actions with the management and organizational skills necessary to mobilize the appropriate people, money, and operating resources to meet an identifiable need and create wealth in the process

continuous improvement

the process of relentlessly trying to find ways to improve and enhance a company's products and processes from design through assemble, sales, and service. - called "Kaizen" is Japanese. - usually associated with incremental innovation

Market Growth Rate

the projected rate of sales growth for the market being served by a particular business

Stock Options

the right, or option to purchase company stock at a fixed price at some future date

Divestiture

the sale of a firm or major component

organizational culture

the set of important assumptions and beliefs that members of an organization share in common

Product Development

the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels

Strategic Positioning

the way a business is designed and positioned to serve target markets

ideagoras

web-enabled, virtual marketplaces which connect people with unique ideas, talents, resources, or capabilities with companies seeking to address problems or potential innovations in a quick, competent manner