Class Materials Overview

1. Class Materials Overview Susan C. Lemont December 17, 2007

2. Presentation Overview • Tonight’s Readings • Synergy between models • Final Assignment • Centrelink • Mad About Plaid • The Writing Center at Harvard

3. Erikson The Erikson life-stage virtues, in the order of the stages in which they may be acquired, are: Hope- Basic Trust vs. Mistrust Will- Autonomy vs. Shame and Doubt Purpose- Initiative vs. Guilt Competence- Industry vs. Inferiority Fidelity- Identity vs. Role Confusion Love (in intimate relationships, work and family)- Intimacy vs.... Isolation Caring- Generativity vs. Stagnation Wisdom-Ego Integrity vs.... Despair

4. Styles of Organizational Management Rensis Likert’s model* Continuum of four management styles System I – Exploitive Authoritative System II – Benevolent Authoritative System III – Consultative System IV – Participative *Rensis Likert – The Human Organization.

5. Stages of Complexity Simple Complicated Complex Chaotic

6. Anita M. McGahan How Industries Change Not Threatened Threatened Threatened Core Assets Not Threatened Core Activities

7. Geoffrey Moore Early Market - introducing new technology Chasm - caught betwixt and between Bowling Alley - technology is gaining acceptance Tornado - technology is necessary and standard Main Street Early- hypergrowth has subsided Main Street Mature - consolidation and M&A Main Street Declining- next generation on the horizon Fault Line/End of Life - technology obsolescence

9. Skills for Innovation (Moore) • Must mutate core competencies over time • Must confront the “inertia demon” • Must extract resources from legacy processes and repurpose them for the new innovations

10. Skills for Innovation (Moore) • Necessitates learning a new mindset • Construct the next generation of competitive advantage • Deconstruct legacy resources when necessary

11. Decision MakingProbability of Getting It Right

12. Skills for Innovation (Moore) • Choose the appropriate leader • Ed Schein - “The Anxiety of Learning”

13. Resilience • Future success of business hinges on resilience (Hamel and Valikangas) • Resilience – The ability to dynamically reinvent business models and strategies as circumstances change

14. Resilience • Challenges to building resiliency • Cognitive Challenge (consciousness about changing) • Strategic Challenge (awareness for building options) • Political Challenge (diverting resources for innovation) • Ideological Challenge (commit to going beyond excellence) • Recognize “strategy decay” and work to regenerate

15. Resilience • Seeking to enhance resiliency • Minimize propensity to over fund legacy strategies • Recognize when “optimization” needs to be set aside to make way for a “restless exploration” of new strategy options • Competitive strategy for today’s marketplace

16. Creating a Sustainable Organization (Funk) • One whose characteristics and actions are designed to lead to a “desirable future state for all stakeholders” • Incorporate intangibles such as intelligent property and employee talent

17. Blue Ocean Strategy (Kim & Mauborgne) • Red Ocean industries • Existing industries with defined boundaries and competitive rules of the road greatly understood • Compete to outperform rivals for greater market share

18. Blue Ocean Strategy (Kim & Mauborgne) • Blue Ocean industries • Industries not in existence, with unknown market space and untainted by competition • Create new industries, or alter the boundaries of the firm • Represent the engine of growth

19. DICE Technique • Assessing major change initiatives and creating new entities – Sirkin et al.

20. DICE Technique • Duration – time until the change program is completed • Integrity – ability to complete the initiative on time (dependent on member’s skills and traits) • Commitment to change (top management [C1] and employees [C2] • Effort (over and above the usual workload)

21. Breaking the Code of Change • The role of consultants in change initiatives • Ed Schien

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

23. Centrelink • Project Management • Predictable Surprises • Uncertainty in Projects

24. Meyer, Loch and Pich Characterizing Uncertainty in Projects Variation Levels vary randomly, but in a predictable range Foreseen Uncertainty Known factors influence project, but in unpredictable ways Unforeseen Uncertainty Influence factors cannot be predicted Chaos Unforeseen events completely invalidate the project.

25. Centrelink • Deeper dive into the material for the final assignment. • Integrating separate corporate cultures • Ed Schein • The Role of Formal Structures and Processes • Jay R. Galbraith, Breaking the Code of Change

26. Centrelink • Pitfalls • Information Systems Manager perspective • Do not regurgitate the case

27. Mad About Plaid • Introduction • Niall Ferguson • Dana Thomas • Dov Seidman • Gil Corkindale • Student Commentary as the Fifth Respondent • Conclusion

28. Mad About Plaid • Introduction • Each commentator views the case through their own frame or lens based on their experience. • The solution does not lie within just one correspondent, but by integrating parts of each commentary.

29. Mad About Plaid • Niall Ferguson - a very partial list: • Theory E and Theory O • Holding multiple frames/Developing Versatile Leadership • Thinking vs.... Knowing • Traps in the Decision Making Process • Behavioral Approaches to Change

30. Final Assignment • Writing Center at Harvard • Did you receive this suggestion on your commentary? • Are you a distance student?