Introduction to Management final exam
Parallel processing?
(some say inability to use this model is a limitation of this approach)
In many industries > _________ of sales comes from products introduced in the last 5 years (e.g., electronics, autos, telecommunications)
50%
>_____ of new products fail to achieve an economic return
95%
Utilitarian Rule
An ethical decision should produce the greatest good for the greatest number of people
Perceived desirability
Degree to which a potential entrepreneurial outcome is evaluated as favorable or unfavorable
Power Distance
Degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage
Constrained
Desire to grow but lack the management ability to manage growth
Creativity
The ability to produce work that is useful and novel
Innovation
The act of introducing novel and useful ideas into value-creating new products, new services, or new processes
Globalization
The shift toward a more integrated and interdependent world economy
Short-Termism
The tendency for managers to focus excessively on short-term performance objectives at the expense of longer-term strategic objectives. It has negative implications for the likelihood of ethical lapses as well as company performance in the longer run.
Women in the Work Place:
U.S. workforce is 46.7% percent female Women's median weekly earnings are $688 compared to $843 for men Women hold only 16.1% of corporate board seats
Norms
Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization Folkways, mores
Global Environment
Set of forces and conditions in the world outside the organization's boundaries that affect the way it operates and shapes its behavior. Changes over time. Presents managers with opportunities and threats
Penetration Strategies
Encourage existing customers to buy more of firm's current products
Organizing for innovation
rather
Independents become profitable _______ as fast and end up twice as profitable
twice
Predevelopment
what exactly is the product concept, and can we do it at the right cost?
PDCA
(Plan, Do, Check, Act) iterative four-step management method used for the control and continuous improvement of processes and products (Deming Circle)
On average, only ______ of company profits come from new products
32%
More Challenges for Rapidly Growing Firms (Babson Study)
4. Decision making: Short term planning instead of long term strategy. Many of the representatives of these firms argued that under conditions of rapid growth, strategy was only about 10 percent of the story. 5. Facilities/Space Limitations: Expansion of space or facilities is a problem and one of the most disrupting events during the early explosive growth of a company. Managers of many of these firms not prepared for these Challenges
Innovative firms generate ____ of profits from new products!
50%
Do you have a strategy for NPD? 1995: Yes, _____ of respondents 2003: Yes, _____ of respondents
63%; 75%
Conference board Study
72% of CEOs said innovation was a top strategic priority; only 55% were satisfied with their financial returns from innovation
Backward integration:
A step back (up) in the value-added chain toward the raw materials
Forward integration:
A step forward (down) in the value-added chain toward the customers
Entrepreneurial intentions
Motivational factors that influence individuals to pursue entrepreneurial outcomes
Maximize Fit with Customer Requirements
Must offer more compelling features, greater quality, more attractive pricing, better value than competing products Methods: Involving Customers/Suppliers, Beta testing/Lead Users, Crowdsourcing
All Businesses Face 6 Types of Risk:
Operational Risks (technology, process, org.) Financial Risks (profitability, funding, liquidity) Strategic Risks (general, supply chain, projects) Market Risks (macroeconomic, market development) Geopolitical Risks (sociopolitical, legal, infrastructure) Catastrophic Risks (environmental, manmade, violence)
7 Wastes
Overproducing, Waiting, Transportation, Over-processing, Excess Inventory, Excess Movement, Scrap & Rework Created by Toyota Production System
Political Economy
Refers to the interdependent nature of the economic, political, and legal systems within a country. Positive changes in the Political Economies of many countries have resulted in more mutual receptivity to trade relations with other countries
Mousetrap myopia
Related to the problem of starting a firm around an idea, rather than an opportunity, is the problem of firms that have " great products" and are looking for other markets where they can be sold
Structural Intervention
Reorganizing to reduce friction When to use: The team has obvious subgroups, or members cling to negative stereotypes of one another.
Ten Principles of Risk Management:
Risk Management starts at top Risk cannot be managed from an ivory tower Avoid relying on black boxes Risk management is strategy, and strategy is risk mgmt. Risk management is more than policy, it is culture A risk aware culture requires a free-flow of information What matters is the "talk", not the "report" The path is the goal It is possible to prepare for unknown risks Avoid the downside, but don't forget the upside
Impediments to NPD (New Product Development) Success
Risk averse corporate culture Lengthy development time Difficulty selecting the right ideas Uncertainty of outcomes Rapidly changing technologies Changing customer needs Aggressive global competitors
Business Improvement three core elements:
Role of Leadership Experts & Training Proven Methodologies/Tools These elements address the common causes of failure!
DUMPING AS A STRATEGY Dumping
Selling goods in foreign markets at prices that are below: normal home market prices, or below the full costs per unit. Dumping is NOT a fair-trade practice: Governments can be expected to retaliate against such practices by foreign competitors. The World Trade Organization actively polices dumping to discourage such practices.
Business Improvement Success Factors!
Senior Leadership + Experts & Training + Methods & Tools
Occupational Ethics
Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities e.g., Medical & Legal ethics
Societal Ethics
Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual. People behave ethically because they have internalized certain values, beliefs, and norms.
Uncertainty Avoidance
The degree to which societies are willing to tolerate Uncertainty and risk.
Free-Trade Doctrine
The idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources and will result in lower prices
Corporate Entrepreneurship
The intention to engage in the creation of new products or processes and/or enter in to new markets
Glass Ceiling
The invisible barriers that prevents minorities and women from being promoted to top corporate positions Examples: Number of women and minority CEOs of Fortune 500 firms in 2013: 22 women CEOs* (4.4%), 6 African-American CEOs** (1.2%), 8 Latino-American CEOs** (1.6%)
Task Environment
The set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs because they influence managers daily (Middle Circle)
Globalization Process
The set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar.
General Environment
The wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an organization and its task environment. (Outer Circle)
Global Strategy
Think Global Act Global
Transnational Strategy
Think Global Act Local
Multidomestic Strategy
Think Local Act Local
The Well-Dressed Measure!
Clear description of the outcome being measured with link to strategic objective All axes and data are clearly labeled Provides comparisons to: prior periods, goals, and benchmarks (including competitors, if available) Identifies the owner of the measure (person responsible for preparing/updating) Indicates the date of the last update Indicates any current improvement initiatives specifically directed at improving this result and projected timing and impact Clearly states the current performance status and provides comments on the results shown in this measure
Proactive Approach
Companies actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders
Defensive Approach
Companies and managers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility
Accommodative Approach
Companies behave legally and ethically and try to balance the interests of different stakeholders against one another so that the claims of stockholders are seen in relation to the claims of other stakeholders
Obstructionist Approach
Companies choose not to behave in a socially responsible way and behave unethically and illegally
Business Assessment
Comprehensive evaluation of business performance and business process management against a core set of fundamental business excellence criteria
Entrepreneurial self-efficacy
Conviction that one can successfully pursue entrepreneurial outcomes
Economies of scale
Cost advantages associated with large operations
Key Role of Leadership
Create and communicate a clear vision and direction for the business and fully align the organization in support. Build capabilities for future success while delivering current results by effectively balancing long term and short term priorities
Low Uncertainty Avoidance
Cultures are easygoing, value diversity, and tolerate differences in personal beliefs and actions
Black Belt
Demonstrated expertise in managing multiple successful improvement projects using the methodologies and tools
Customer Focus
Design, develop and deliver products and services based on an accurate understanding of, and a commitment to, creating true value for the customer that is superior to competitive options
Using Performance Management is not sufficient to assure success. Successful firms still need to:
Develop effective strategies Design and build effective organizations Continue to learn and innovate Have sufficient resources Build defensible positions Consistently outperform competitors Anticipate and outmaneuver disruptive technologies
Direct versus indirect communication
Difference between direct and indirect styles. When members see such differences as violations of their culture's communication norms, relationships can suffer.
Diversity
Dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities
Barriers to Entry
Factors that make it difficult and costly for the organization to enter a particular task environment or industry
Drivers of Unethical Business Behavior
Faulty internal oversight allows self-dealing in the pursuit of personal gain, wealth, and self-interest. Short-termism pressure to meet or beat short-term performance targets. A culture that puts profitability and business performance ahead of ethical behavior.
Fast Follower Strategy
Firm must be very good with innovation and have strong R&D, and be good at figuring out why the first mover failed to exploit the market so they can leapfrog fast and grab the market Examples: Apple with mp3 players and later cell phones, Nokia with a smart phone, Google over Yahoo, Microsoft in search technology
Reactive Strategy
Firms that are followers and have a focus on operations, have a wait and see approach and look for low risk opportunities, will copy proven innovation Example: Ryanair copied the no frills service model of Southwest Airlines.
NPD Timing Strategy Options:
First to Market Fast Follower Niche Reactive
GATT
General Agreement on Tariffs and Trade First signed in April 1947
Measuring the NPD process can help management to improve its NPD process
Identify which projects met their goals and why Where in the process are their bottlenecks or inefficiencies
Control Development Costs
Goal: High ROIC Challenges: Speed/Cost Risk Optimization Methods: Stage-Gate Process, Cycle Time Reduction Methods
Minimize Cycle Time
Goal: Reduce Development Cycle Time Methods: Partly parallel development process, Project champions
Organizational Ethics
Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders. Top managers play a crucial role in determining a company's ethics
(Benefits of Growth for the Firm) Advantages of Size:
Increased production efficiency Increased bargaining power with suppliers Increased legitimacy with customers, financiers, other stakeholders (employees, communities) More power for owner to influence performance
First Mover Strategy
Innovation culture, able to create and then dominate the market against fast followers Examples: Amazon with the e-book, J&J with medical devices Examples of failures: Apple with the Lisa and Newton
Corporate Social Responsibility
Is a firm's duty to operate in an honorable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.
The Ethics Code Litmus Test
Is what we are proposing to do fully compliant with our code of ethics? Are there areas of ambiguity? Is this action in harmony with our core values? Are any conflicts or potential problems evident? Is this action ethically objectionable? Would our stakeholders, our competitors, the SEC under the Sarbanes-Oxley Act, or the news and social media view this action as ethically objectionable?
Alliances/JV (Joint Venture) Strategy
JV: the companies start and invest in a new company that's jointly owned by both of the parent companies. Alliance: legal agreement between two or more companies to share access to their technology, trademarks or other assets.
Overt Discrimination
Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization
House of Quality (QFD or Quality Function Deployment)
Links customer requirements to product/service design specifications using a matrix format
Managerial Intervention
Making final decisions without team involvement When to use: Rarely; for instance, a new team needs guidance in establishing productive norms.
As high- potential firms " grow up big" they experience stages _____________________, each with its own special challenges and crises, which are compounded the faster the growth.
Wonder, Blunder, Thunder, Plunder, and Asunder
Adaptation
Working with or around differences. When to use: Members are willing to acknowledge cultural differences and figure out how to live with them.
emerging market
an economy with low to middle per capita income Such countries constitute approximately 80% of the global population, and represent about 20% of the world's economies. The term was coined in 1981 by Antoine W. Van Agtmael
What is the firm's ROIC (Return on invested capital) on innovation?
assess the ratio of the firm's total profits from new products to its total investments & expenditures for new products, including research and development costs, the costs of retooling and staffing production facilities, and initial commercialization and marketing costs.)
Single best predictor for investment value:
degree of innovativeness (study by Cooper)
Sigma Level
deviations per opportunity (DPO) or per million opportunities (DPMO), calculated using a DPMO conversion table. If a process performs with 3.4 or less defects per million opportunities it is said to be at six sigma quality.
Rewards and on-going measuring and monitoring
essential part of organizing innovative organizations
Innovation Strategy
make innovation clearly part of business strategy
greenfield strategy
market entry strategy with establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from start.
Innovative companies generate:
more money, more profits, more jobs
Advanced R&D
new technologies for new uses and users
Platform
next generation, and new system: e.g., Apple: I-Pod, I-Phone, I-Pad are all unique platforms or underlying technology architectures
Structure
project teams + "capabilities managers" leading departments to support innovation. All businesses include innovation in their strategies
Designing motivating jobs
project teams that have responsibility for success of NPD projects + senior managers responsible for enabling success
Derivative
rework existing platforms or product categories to fit a particular need or niche, like I-Pads for executives
Breakthrough
some combo of new technologies and uses, like Apple I-Pod; Blackberry phones..
Successful Entrepreneurs: Effectuate
taking what you have and making something new
Managing day to day innovation processes
to support new product/new process development
Process Maps/Value Stream Maps
used to depict and describe a process
Defect Rates
used to determine the number deviations from expected performance (customer specifications) for a given process for a given number of opportunities
Control Charts
used to measure whether a process is in control (allows modest variation around a defined performance target)
Collective Disaster
when one or more people start to profit from being unethical because this encourages other people to act in the same way
Corporate sponsored new ventures perform _________ than those started independently
worse
Why do organizations implement a formal, ongoing Business Improvement process?
When improvement experts are fully supported by senior management and trained in the use of proven improvement processes, methodologies/tools, they routinely achieve higher project success rates and deliver better overall performance results
International Competition
When the same companies compete against one another in multiple geographic markets, the threat of cross-border counterattacks may be enough to deter aggressive competitive moves and encourage mutual restraint among international rivals.
3M Corporate Entrepreneurship
"Time to Think" model 3M encourages their employees to spend 15% of their working time on their own projects. Employees US 3M resources Employees are allowed to build teams Employees follow their own insights in pursuit of problem-solving with limited managerial direction Tolerance for failure - learning from results
Hofstede's Dimensions of National Culture
1. Collectivism: A worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group 2. Individualism: A worldview that values individual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather their social background 3. Power Distance: Degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage 4. Nurturing: A worldview that values the quality of life, warm personal friendships, and services and care for the weak. 5. Achievement: A worldview that values assertiveness, performance, success, and competition 6. Uncertainty Avoidance: The degree to which societies are willing to tolerate Uncertainty and risk. 7. High Uncertainty Avoidance: Societies are more rigid and expect high conformity in their citizens' beliefs and norms of behavior. 8. Low Uncertainty Avoidance: Cultures are easygoing, value diversity, and tolerate differences in personal beliefs and actions 9. Long Term Orientation: A worldview that values thrift and persistence in achieving goals. 10. Short Term Orientation: A worldview that values personal stability or happiness and living for the present. The dimensions apply overall to a society's proclivity rather than to specific attributes of any one individual.
Process for Establishing Corporate Entrepreneurship in the Organization. 9 Steps
1. Commitment/Culture: Secure a commitment from top, upper, and middle management levels. Identify, select, and train corporate entrepreneurs 2. Plan & Organize: Identify ideas and areas that interest top management. Identify amount of risk money available Establish overall program expectations and target results Establish time frame, volume, and profitability requirement Establish mentor/sponsor system 3.Technology: Use of technology to ensure organizational flexibility 4.Training: Identify interested managers to train employees 5. Customer Focus: Develop ways to get closer to the customers 6. Resource Management: Learn to be more productive with fewer resources 7. Support Structure: Establish a strong support structure for corporate entrepreneurship 8. Rewards: Tie rewards to the performance of the entrepreneurial unit 9. Evaluation System: system should be such that: Successful entrepreneurial units thrive Unsuccessful ones are eliminated
What Factors Drive Globalization?
1. Diminishing Distance and Communication Challenges 2. Evolving Political Economies 3. Recognition of the Mutual Benefits 4. Declining Barriers to Trade 5. The Development of the Multi-National Enterprise (MNE) 6. Development and Support of Global Institutions
Use the 6 Business Assessment criteria to evaluate key results and activities for the business -
1. Leadership 2. Product Development 3. Demand Generation 4. Supply Chain 5. Organization & People 6. Compliance These are key components Of the Value Chain
More Challenges for Rapidly Growing Firms (Babson Study)
1. Opportunity Overload: Rather than lacking enough sales or new market opportunities (a classic concern in mature companies), many entrepreneurial firms face an abundance of opportunities 2. Abundance of Capital: Whereas most stable or established small or medium-sized firms often have difficulties obtaining equity and debt financing, most of the rapidly growing firms were not constrained by this. 3. Cash Flow Management: These firms all pointed to problems of cash burn rates racing ahead of collections. They found that unless effective integrated accounting, inventory, purchasing, shipping, and invoicing systems and controls are in place, this misalignment can lead to chaos and collapse.
Distributive Justice
A moral principle calling for fair distribution of pay, promotions, and other organizational resources based on meaningful contributions that individuals have made and not personal characteristics over which they have no control.
Procedural Justice
A moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members. PJ exists when managers: carefully appraise a subordinate's performance, take into account any environmental obstacles to high performance, ignore irrelevant personal characteristics
Individualism
A worldview that values individual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather their social background
Collectivism
A worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group
Nurturing
A worldview that values the quality of life, warm personal friendships, and services and care for the weak.
Schema
An abstract knowledge structure stored in memory that allows people to organize and interpret information about a person, event, or situation
Practical Rule
An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because a typical person in a society would think the decision is acceptable
Justice Rule
An ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner
Moral Rights Rule
An ethical decision should maintain and protect the fundamental rights and privileges of people
Entrepreneurial Thinking
An individuals' mental processes of overcoming ignorance to: Decide whether a signal represents an opportunity. Decide whether that opportunity is applicable to the individual specifically. Process feedback from action steps taken
Multinational enterprise (MNE)
Any business that has productive activities in two or more countries. Since the 1960s: the number of non-U.S. multinationals has risen and the number of mini-multinationals has risen
Quid pro quo
Asking for or forcing an employee to perform sexual favors In exchange for receiving some reward or avoiding negative consequences.
Does performance management work?
At J&J from the period 2002 - 2006 the use of a corporate-wide formal Performance Management system delivered over $4 Billion in incremental pre-tax profit contribution. (These profit contributions were validated by the corporate finance organization). Over 90% of managing directors at J&J agreed or strongly agreed that the use of Business Assessments provided significant value to their business units (results of routine surveys of managing directors for the period 2003 - 2006)
Measures of NPD at the Process Level
Average Cycle Time to Market/to Cost Recovery/to Profitability % of Development Projects that Met Objectives/Targets % of Development Projects within Budget % of Development Projects Completed Stage Gate Metrics (monitor by stage)
Business Process Reengineering (BPR)
BPR involves radically redesigning and streamlining how an activity is performed, with the intent of achieving quantum improvements in performance
Sequential versus Partly Parallel Development Processes
Before mid-1990s, most US companies used sequential NPD process Partly parallel process shortens overall development time, and enables closer coordination between stages.
Measures of NPD overall performance can help management to improve its NPD strategy:
Benchmark the organization's performance compared to that of competitors, or to the organization's own prior performance. Improve resource allocation and employee compensation. Help to refine future innovation strategies
Horizontal integration
Buying a competitor (NOTE: This is a different definition than the textbook!)
Design for Six Sigma (DFSS)
DFSS is used to design new processes (new products/services) and seeks to avoid manufacturing/service process problems by using advanced Voice of the Customer (VOC) techniques and proper systems engineering techniques to avoid process problems at the outset. It utilizes the DMADV methodology (Define, Measure, Analyze, Design, Verify)
Key Elements (DMAI2C):
Define - Use flow charts to identify customers, suppliers, and those who perform key steps in the process (SIPOC Model) Measure - Create outcome measures and predictive measures that allow complete understanding of process performance Analyze - Use the measures and process maps to understand the performance of the process vs. goals and benchmarks Improve/Innovate - Make improvement a routine activity using basic/advanced tools & methods Control - Make sure the process and improvements continue to provide consistent, predictable performance.
Stage-Gate Process for Product Development
Each Stage includes: Deliverables, Criteria, Outputs Each Gate Decision: Go, Kill, Hold, or Recycle
Role of Leadership
Establish the compelling case and priority for improvement Appoint and empower improvement experts and provide sufficient resources and support for building the necessary infrastructure Imbed improvement priority and philosophy into strategic objectives and the organization's culture Hold the entire organization accountable for progress and results (regular progress reviews) Reward & recognize results
Business Improvement Leader
Experienced in working with business leaders to identify improvement opportunities and establishing effective improvement project management system and training system
Master Black Belt
Expert and experienced in process, methods, and tools used in improvement projects. Experienced training and coaching Black Belts and Green Belts (project leaders)
Entering International Markets - Strategic Options
Export goods from domestic base License production/distribution/marketing to foreign firms Franchise to foreign entities Establish a Wholly-Owned Subsidiary (Acquisition or Greenfield) Form Strategic Alliances or Joint Ventures with foreign companies.
Development Strategies
Fit to Market Cycle Time Cost Reduction
Niche Strategy
Focus on specific niche market, requires a close connection to customers on what they want as far as product differentiation. Examples: Laurastar, a Swiss with high end irons "world's smartest iron", SolarCity, a US firm that focus on clean energy
Values
Ideas about what a society believes to be good, right, desirable and beautiful. Provide the basic underpinnings for notions of individual freedom, democracy, truth, justice, honesty, loyalty, love, sex, marriage, etc.
The Triple Bottom Line: Excelling on Three Measures of Company Performance
People, profit, planet
Sources of Discrimination
Perception, Stereotype and Bias, Overt Discrimination
Individual Ethics
Personal standards and values that determine how people view their responsibilities to other people and groups. How they should act in situations when their own self-interests are at stake
Gender Schema
Preconceived beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences
Age Discrimination in Employment Act
Prohibiting discrimination against workers over 40 and restricts mandatory retirement
Americans with Disabilities Act (ADA) 1990
Prohibits discrimination against people with disabilities
Six Sigma
Six Sigma programs utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes by using the DMAI2C methodology (Six sigma = 3.4 defects/million opportunities)
High Uncertainty Avoidance
Societies are more rigid and expect high conformity in their citizens' beliefs and norms of behavior.
Lean
Specify value from the standpoint of the end customer for each product. Identify all the steps in the value stream for each product, eliminating whenever possible those steps that do not create value. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. As flow is introduced, let customers pull value from the next upstream activity. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Principles of Stage-Gate processes
Strong senior management commitment (they are the gate-keepers) Business innovation strategy exists, has been converted into objectives Project management system thru-out Emphasizes market assessments Emphasizes pre-development assessment: (early stages found to be most wanting) Is this a good business? Who are the customers? Do we have the technological capability?
Performance Management
The ongoing assessment and improvement of key business processes in order to drive superior results Goal: To improve faster and better than competition
Perception
The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them
Global Outsourcing
The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design.
Training
Train all management teams in the core concepts of Performance Management including Business Improvement Train Business Improvement Leaders in each business unit in the Performance Management process Train Master Black Belts to train Black Belts and Green Belts in core and advanced improvement methodologies and tools Train Master Black Belts to coach project leaders and project teams and to monitor their progress Train Black Belts to effectively manage multiple projects and project teams and to fully master improvement methodologies and tools Train Green Belts in basic project management and in basic improvement methodologies and tools
Green Belt
Trained in using methods and tools with only one successful project completion
Process Management/High Performance Environment
Use a process-based view of work that integrates multiple functions working in collaboration to create a high performance environment
Fact-Based Management & Evaluation
Use a system of balanced measures that are aligned with the business goals and strategy. Include outcome and driver metrics that are both leading and lagging indicators of performance. Benchmark against standards of excellence as well as competitors.
Continuous Assessment & Renewal
Use comprehensive criteria to routinely assess the business and validate findings through an independent review. Develop clear strategies to sustain and enhance business results in the future. Align plans, policies and practices to support these strategies.
Improvement & Innovation
Use proven improvement methodologies to address strategic needs and performance gaps. Use highly competent improvement experts who rely on a common language and toolset and who are skilled in collaboration and project leadership. Seek to find new, innovative ways to create value for customers and the organization.
Process Mapping:
Used to describe the process visually Clarifies the steps/sequence in the process Clarifies who performs each step Identifies how the work flows through the organization Identifies where the key linkages are with other parts of the organization Helps to identify areas for improvement
Build a Resource-Based Competitive Advantage By:
Using powerful brand names to extend a differentiation-based competitive advantage beyond the home market. Coordinating activities for sharing and transferring resources and production capabilities across different countries' domains to develop market dominating depth in key competencies.
Exit
Voluntary or involuntary removal of a team member When to use: Emotions are running high, and too much face has been lost on both sides to salvage the situation.
Salience effect
focus attention on individuals who are conspicuously different
Pre-established criteria
forces discussion of important issues
BCG survey
global innovators generated a 12% premium in past 3 years over non-innovating competitors, and 2% over the past 10 years (a period with several recessions!!)
Global institutions:
help manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system. Ex: GATT, WTO, International Monetary Fund (IMF), World Bank, UN, G20
Clear plan
lays out what to do by when, by whom, and what are the objectives for the leaders and the teams
bottleneck
one process in a chain of processes, such that its limited capacity reduces the capacity of the whole chain.
Integrating
the innovation strategy helps integration (common/shared purpose)
