Let Carry out the indicated operation, or explain why it cannot be performed.5B 2C
Tuesday April 5th Planning and Strategy 1. Strategic Planning Process a. Remind yourself: why are you in business i. What is your vision 1. Vision statements are long term projections of where your company will be 2. These tend to accompany values, beliefs, guiding principles ii. What is your mission 1. Mission statements are in a 35 year period a. A subset of the vision statement b. They identify i. What the organization does ii. Who the primary customers are iii. How the organization goes about its business iii. Value proposition 1. Describes why customers should purchase from you as opposed to the competition 2. Corporate Strategies Growth a. Concentration i. Growth through reinvesting in the current line of business b. Vertical integration i. Aimed at controlling distribution c. Horizontal integration i. Growth by combining/buyingout competitors d. Diversification i. Expanding a company’s operations into a new industry to produce new goods or services e. International Expansion i. Global Strategy 1. Selling the same product in every international market ii. Multidomestic Strategy 1. Customizing products and marketing strategies to specific national conditions a. Gain local market share b. This raises production costs, leading to higher prices 3. Corporate Strategies Stability and Renewal a. Kaizen Continuous improvement b. Stability i. Business as usual ii. Maintain market share and customer base c. Renewal i. When a company is in trouble d. Retrenchment i. Stabilizing if the company is shaky 4. Business Level Strategies a. Standard models for differentiation and the achievement of profitability i. Operational excellence 1. Best total cost ii. Product leadership 1. Best, most innovative products iii. Customer Intimacy 1. Best total solution 5. Functional Level Strategies a. Strategies used by an organization’s various functional departments to support the competitive strategy i. Marketing ii. HR iii. Financial iv. Sales v. Etc. 6. Quantifying the Vision, Mission, Etc. a. Construct Analysis i. Looking at your vision, mission, etc., you can pick out words and phrases that are measureable ii. Those measureable things are known as KPIs Key Performance Indicators 1. Metrics indicate the overall business health 2. KPIs tell you whether strategic business plans are working b. Constituent Element Analysis i. Breaks down each level 1 KPIs into next level metrics to be measured 7. Strategic Planning a. One of the four tasks of management b. Longrange planning (35 years) focusing on the organization as a whole c. Determines a series of milestones and indicators (used within PDCA) for achieving the mission and moving toward the vision d. Is achieved through Gap Analysis 8. Gap Analysis *** a. The gap between the target value and the current value of the KPI determines if: i. 9. Daily Management 10. Policy Deployment Planning a. This is all called Hoshin Planning, AKA Hoshin Kanri i. Integrating an organization’s business plans with its vision, mission, value, proposition, core competencies, etc. 11. Profound Knowledge a. When companies are in trouble, often outside views are needed b. It is hard to get a perspective when stuck in a hole c. Outside views are profound knowledge Thursday April 7th M otivation 1. Types of Motivators a. Intrinsic i. Doing work for the sake of working ii. Liking working iii. Internal b. Extrinsic i. Behavior to acquire material or social rewards ii. Behavior to avoid getting in trouble iii. External c. Modern psychology leans towards intrinsic motivators being more effective in the workplace i. Autonomy the desire to direct our own lives ii. Mastery the urge to get better and develop skills iii. Purpose the need to do what we do for reasons bigger than ourselves 2. Managers Must a. Create a resonant environment i. Create excitement, energy, optimism, hope ii. The challenge about this is that it is all psychological; you’re responsible for motivating yourself iii. 73% of employees in the US are not excited about their work 3. Theories of Motivation a. Needs Theories i. Claim people are motivated by opportunity to meet unfulfilled needs 1. Hierarchy of Needs, TwoFactor, ThreeNeeds Theories 2. Maslow’s Hierarchy of Needs: physiological, safety, belongingness, esteem, selfactualization (lowest to highest) a. Not everyone is motivated by the same things b. Once a need is met, the motivation is gone 3. Two Factor Theory (Herzberg) (motivation slides for examples) a. Hygiene factors (extrinsic) i. Elements of the job context ii. Sources of job dissatisfaction b. Motivator factors (intrinsic) i. Elements of the job content ii. Sources of satisfaction and motivation c. This implies that intrinsic factors drive motivation, not money 4. McClelland’s Needs Theory a. Need for Power i. Management, work over people b. Need for Affiliation i. Let people work in teams, meet new people, associate with others, work with others c. Need for Achievement i. Put someone on a fast track towards upper level work, congratulate on hard work etc. All about me ii. This one has been studied most extensively iii. High achievers aren’t necessarily good managers because they are very self centered d. Need for Cognition (N ew) ii. There are better models that exist than these iii. These models try to uncover the needs of employees b. Process Theories i. Equity 1. Fairness of outcomes and inputs a. Are employees perceiving themselves as equal to other employees b. When there is a feeling of unfairness people try to restore a perceived sense of equity c. Everyone has a different perspective on what is fair ii. Expectancy (Victor Vroom) 1. Expectancy People put in some work, expecting a certain level of performance 2. Instrumentality A person’s perception about the extent to which their performance will result in a certain outcome attainment 3. Valence How desirable each of the possible outcomes available for a job are for employees iii. Goal Setting 1.