Management 780 Strategic Management Discussion Notes Prepared by Dr. Milton Silver
Strategic Management • Firm as a system • The Performance Measurement Process INPUTS Resources Labor Capital Facilities Material Land Management OUTPUTS Products Services ENVIRONMENT Internal External FIRM Goals Objectives Effectiveness E Efficiency e Adaptive A Info / Feedback
Definition of Information • INFORMATION is the input or resource for the project manager. • The information equation: IT = IK + IS Project Manager SystemPurpose Formal Informal SPECIFY MATCH
Team Management FORM PERFORM STORM NORM
Life Cycle TEAM Effectiveness TIME Form Storm Norm Perform
Team Member Roles • Project Task Performance Roles • Based on technical expertise and functional areas • Team Roles • Leader -- Timekeeper • Scribe -- Coordinator • Information Manager • Facilitator
Team Development & Effectiveness: Contributing Factors • Shared Goals and Objectives • In order for a team to operate effectively, it must have stated goals and objectives • Utilization of Resources • The team must use effectively all the resources at its disposal. Team effectiveness is enhanced when every member has the opportunity to contribute and when all the opinions are heard and considered.
Development & Effectiveness,continued… • Trust and Conflict Resolution • The ability to openly recognize conflict and seek to resolve it through discussion is critical to the team’s success. It must deal with the emotional problems and needs of its members and the interpersonal problems that arise in order to build working relationships that are characterized by openness and trust. • Shared Leadership • All members accept some responsibility for task functions—those things necessary to do the job—and maintenance functions—those things necessary to keep the group together and interacting effectively.
Development & Effectiveness,continued… • Control and Procedures • A group needs to establish procedures that can be used to guide or regulate its activities. • Effective Interpersonal Communications • Effective interpersonal communications are apparent when team members listen to one another and attempt to build on one another’s contributions.
Development & Effectiveness,continued… • Approach to Problem Solving and Decision Making • If a group is going to improve its ability to function as a team, recognized methods for problem solving and making decisions should be studied and adopted. • Experimentation / Creativity • It is important that the team be prepared occasionally to move beyond the boundaries of established procedures and processes in order to experiment with new ways of doing things.
Development & Effectiveness,continued… • Evaluation • Though evaluation, the team makes a commitment to continuous improvement. The team periodically should examine its group processes from both task and maintenance aspects. This examination or “critique” requires the team to stop and look at how well it is doing and what, if anything, may be hindering its operation.
Team Effectiveness Rating Sheet Individual Rating Team Rating • Shared Goals and Objectives • Utilization of Resources • Trust and Conflict Resolution • Shared Leadership • Control and Procedures • Effective Interpersonal Communications • Approach to Problem Solving &Decision Making • Experimentation / creativity • Evaluation
Team Development: Stages • Groups develop over a moderately long period of time and probably never reach completely stable structure. Tuckman (1965) has provided the most useful characterization of the four stages of group development: Goal Forming Storming Norming Performing(selection) (power (rule making) gathering) Accomplishment
Team Development: Stages, cont… • Forming • Also known as testing or dependence, forming refers to an attempt by group members to discover from the reactions of other group members what interpersonal behaviors are acceptable in the group. • This is a period of establishing the “ground rules” both for task requirements (“How much am I expected to do? Or “Which behavior is OK?) and for interpersonal relationships (“Who has the real power?” Or “What behavior is okay?”)
Team Development: Stages, cont… • Storming • This stage is typified by intragroup conflict. Group members become hostile toward one another and/or toward the leader as a means of expressing their individuality and of resisting the formation of a group structure. • During this stage, goals set by the leader may be ignored and resistance to task requirements is common.
Team Development: Stages, cont… • Norming • The third stage described by Tuckman is a stage in which in-group feelings and close-knit relationships develop, new standards evolved and new roles are adopted. • In the task realm, intimate personal opinions are expressed.
Team Development: Stages, cont… • Performing • Finally, the group attains the last stage of development. The interpersonal structure of the group becomes a medium for task activities. Roles become flexible and functional, and group energy is channeled into the task. • Structural issues have been resolved, and structure can now be supportive of task performance.
Team Development: Stages, cont… • A Final Note • According to this model of group development, groups can be in any of these four stages of development at any time. But the farther the group is from the performing stage, the longer it takes to become and effective work unit. • For example, those who follow professional sports can see their favorite teams go through these four phases each season. First, new players are selected and old favorites are cut or traded. The personality power plays and contests for positions occur. Also, with each new season, a fresh tasting of the rules (for example, the rules governing dress or curfew) generally takes place. It is hoped that these first three stages will end prior to the start of the official season. If not, we generally find that the collective performance of the group is lower than expected, until those stages have been satisfactorily resolved.
OverviewStrategic Management: Phases and Processes S T R A T E G I C P H A S E S FormulationImplementationEvaluation & Control Long Range Mission StrategicPlanning Objectives Management(Vision) Information Systems Portfolio Priorities ProgramsBalancing Initiatives Projects Actions Resource Policies Budgets OperatingAllocation Procedures Information Systems Feedback Audit Information Analysis STRATEGIC PROCESSES
OUTLINE Strategic Plan Outline • Concepts • Current Situation • External Analysis • Internal Analysis • Mission & Objectives • Alternatives • Decisions • Implementation • Results
Current Situation OUTLINE PROCESSES • Review • Mission • Objectives • Strategies • Segments • Products
External Analysis OUTLINE PROCESSES • Analyze • Global Macro Factors • Economic GNP, CPI, DPI • Social/Demographics • Political/Legal (Taxes and Regulations) • Technological Product Processes • Global Micro Factors • Industry Financial Trends • Competitions Strategies, Objectives & Capabilities
Internal Analysis OUTLINE PROCESSES • Analyze Functions • Marketing’s 4-P’s • Financial/Accounting Performance • Productions/Operations • Capacity / Efficiency • Research & Development • Information Systems • Human Resources • Management Organizational Culture/Structure
Mission & Objectives OUTLINE PROCESSES • Write or Revise Mission • State Long-term Objectives • Quantitatively • Qualitatively • Include (minimum) 5-year goals • Show change from past • Illustrate influence of forecasts
Alternatives OUTLINE PROCESSES • Identify and Evaluate • Corporate Strategies • Market Penetration • Market Development • Product Development • Backward Integration • Forward Integrations • Horizontal Diversification • Vertical Diversification • Concentric • Conglomerate • Cooperative / Joint Venture / Strategic Alliances • Defensive • Retrenchment • Divestiture • Liquidation • Do Nothing
Decisions OUTLINE PROCESSES • Decide Among Alternatives • Illustrating Basis • Reduce Risk • Growth • Stability • Equity Holders • Control
Implementation OUTLINE PROCESSES • Determine by… • Business Unit / Functional Levels • Short-term Objectives • Strategies • Develop Timetable • Develop Organizational Chart • Discuss Organizational Culture
Results OUTLINE PROCESSES • Examine • Cohesion and Clarity of Plan • Financials • 5 Years of Pro Forma • Income Statement • Balance Sheet • Cash Flow Statement
Current Situation OUTLINE G O A L S • Revise or Restate (After external and internal analyses) • Mission • Objectives • Strategies
External Analysis OUTLINE G O A L S • Assess Threats and Opportunities • History and forecast of: • Influence of factors on industry • Competitive factors within industry
Internal Analysis OUTLINE G O A L S • Assess Strengths & Weaknesses • History & Forecast of: • Market share • Financial performance • R&D Results • Timeliness • Competencies
Mission & Objectives OUTLINE G O A L S • Achieve Mission & Long-Term Prosperity • Financial performance • Market share • Stakeholder’s interests • R&D performance
Alternatives OUTLINE G O A L S • Provide choices to accomplish objectives Decisions • Select corporate strategies to achieve mission and objectives
Implementation OUTLINE G O A L S • Put into action chosen corporate strategies Results • Evaluate and modify strategic actions to ensure performance against objectives