Business Role in Society Exam 1

According to Raj Sisodia, FEMSA Distinguished Professor in Conscious Enterprise:

• Capitalism has enabled humanity to soar

• We need to celebrate and elevate capitalism

Bob Chapman said:

“Truly human leadership-sending people home safe, healthy and fulfilled, and accomplished through caring”

Primary functions of management

• Control

• Planning

• Leadership

• Organization

Congratulations! You have just been promoted! As a result, which of these skill sets are you likely to depend on?

• Conceptual skills

• Human skills

To “know no” is one option to:

bettering your time management

On the TED talk, Dare to Disagree, Margaret Hefferman said:

• Recommend we seek out people with different experiences

• Cite that too many people are afraid of conflict

• Promote that we be prepared to change our minds

Project Management is:

an art and a science

A project charter:

• Promote commitment among all stakeholders

• Authorize the project to start

• Help develop and foster a common understanding

A scope planning document:

• Includes what needs to be done

• Controls deviations from the project and prevents scope creep

• Highlights what is excluded from the project

Work Breakdown Structure (WBS)

Is a uniform, consistent, and logical method for diving a project into manageable componets

The most prevalent type of project is driven by:

Schedule driven

Megatrends

Highlight longer-term shifts that shape near-term trends

External factors in the organization

Opportunities and threats

Bigger is not better than:

being the most profitable

The application of Porter’s 5 Forces can be:

applied to a handful of major industries

The purpose is

why?

“What the world will look like once your vision is fulfilled is your mission”

is a false statement

Layoffs come into fashion in

1980s/1990s

What are stakeholders?

• Shareholders

• Suppliers

• Customers

• Communities

• Employees

Business philosophy

Serves as a roadmap for organizations, helping employees understand the goals and values

When Bob Capman acquires another company under the Barry-Wehmiller umbrella, he calls them:

adoptions

Four principal functions of management

1. Planning: Setting goals and deciding how to achieve them

2. Organizing: Arranging tasks, people, and other resources to accomplish the work

3. Leading: Motivating, directing and influencing people to work to achieve the organization’s goals

4. Controlling: Monitoring performance, comparing it with goals and taking corrective action

Planning

Setting goals and deciding how to achieve them

Organizing

Arranging tasks, people, and other resources to accomplish the work

Leading

Motivating, directing and influencing people to work to achieve the organization’s goals

Controlling

Monitoring performance, comparing it with goals, and taking corrective action

Is one of managements most difficult challenges

change

Phase 1: Endings

Denial, shock, resistance, anger, frustration, bargaining, fear of loss, uncertainty

Phase 2: Neutral Zone

Confusion, undirected energy

Phase 3: Beginnings

Acceptance, hopefulness, experimentation, commitment, understanding, integrating

Who coined the term knowledge worker in 1959

Peter Drucker

What is a knowledge worker?

Someone who primarily works with information, someone who develops and uses knowledge in the workplace

Resources of Management Functions

• Human

• Financial

• Raw materials

• Technological

• Information

Performance of Management Functions

• Attain goals

• Products

• Services

• Efficiency

• Effectiveness

Management Principle

• Overseeing work

• Accomplishing tasks

• Managing relationships

• Leading

• Designing

Managers:

1. Set objectives

2. Organize

3. Motivate and communicate

4. Measure targets and standards

5. Develop people

Manager skillset

• Technical skills

• Human skills

• Conceptual skills

Levels of management

• Top managers (CEO, corporate head or group head, vice president of administration)

• Middle managers (Business unit head - general manager, administrator. Department manager - Product line or service manager, information services manager)

• First-Line Managers (Functional head- production, sales, R&D supervisor, IT, HRM, accounting supervisor) (Team leaders and nonmanagerial employees - line jobs, staff jobs)

Individual identity

• Specialists: performs specific tasks

• Gets things done through own efforts

• An individual actor

• Works relatively independently

Manager identity

• Generalists; coordinate diverse tasks

• Gets things done through others

• A network builder

• Works in a highly interdependent manner

Project

A project is a time-bound effort constrained by performance specifications, resources, and budget to create a unique product or service

Project Management

The art or science of using knowledge, skills, tools, and techniques efficiently and effectively to meet stakeholder needs and expectations.

Project Management characterizes for:

- Includes work processes that initiate, plan, execute, control, and close the work

- Get things done

- What do you want to achieve?

- How are you going to achieve it?

- Budget/timeline

- Clearly defined roles

- Absence of problems

Trade-offs when managing a project

• - Scope (size and features)

  - Quality (acceptability of the results)

  - Cost

  - Schedule

  - Resources

  - Risks

Project charter

This short document (about three pages) serves as an informal contract between the project team and the sponsor (who represents both senior management of the organization and the outside customer, if there is one).

A project charter reflects:

• a common understanding and collaboration between the project sponsor and project management

Project charter elements

• Restrictions

• Major participants

• Project manager authority

• Objective

• Measurement & assumptions

• Scope

Major purposes of a project charter

1. Authorize the project manager to start

2. Help the project manager, sponsor, and team members to develop a common understanding

3. Help the project manager, sponsor and team members commit to the spirit of the project

4. Quickly eliminate a poor project

Scope Planning

Is the process of translating stakeholder needs and requirements into detailed specifications of the project outcomes and products. Scope definition is an important part of the project planning because all other planning is based on the project scope

Scope Plan Docuement

The process of developing a plan that includes:

- The total scope of what needs to done and what is excluded from the project

- Implementation and validation of the scope

- Control deviations from the scope statement

Controlling requirements of a Scope Plan

- A requirement is a condition or capability needed by a user to solve a problem or achieve an objective that satisfies a standard, a specification, or any other formally needed

- Understand and analyze stakeholder needs to define and document these needs and requirements with a focus on meeting project objective

Work Breakdown Structure (WBS)

A uniform, consistent, and logical method for diving the project into small, manageable components to manage project scope and for planning, estimating, and monitoring. A tool that project teams use to progressively divide the deliverables of a project into smaller and smaller pieces

Options for Managing

- Scope-driven: Deliver what is requested no matter how long it takes (schedule) or how much it costs

- Schedule-driven: Meet the deadline by delivering whatever scope you can within budget (cost)

- Cost-driven: Deliver whatever scope you can until the budget is exhausted

Scope-driven

Deliver what is requested no matter how long it takes (schedule) or how much it costs

Schedule-driven

Meet the deadline by delivering whatever scope you can within budget (cost)

Cost-driven

Deliver whatever scope you can until the budget is exhausted

Plan schedule management

The building blocks of a project schedule are activities, with these characteristics

- Clear starting and ending points

- Tangible output that can be verified

- Scope small enough to understand and control without micromanaging

- Resources, other costs, and schedule that can be estimated and controlled

- One person who can be held accountable for each activity

What is a megatrend?

- A major movement or pattern emerging in the microenvironment. - An emerging force likely to have a significant impact on the kinds of products consumers will wish to buy in the foreseeable future

- Include a growing interest in health

The 10 megatrends

1. Becoming an information society after the industrial one

2. From technology being forced into use, to technology being pulled into use where it is appealing to people

3. From a predominantly national economy to one in the global marketplace

4. From short term to long term perspectives

5. From centralization to decentralization

6. From getting help trough institutions like government to self-health

7. From representative to participative democracy

8. From hierarchies to networking

9. From northeastern bias to southwestern bias

10. From seeing things as “either/or” to having more choices

Global shifts

• More urgent (AI, climate change, employment, retirees)

• In trouble if we don’t address

• Bis, immutable coming

Drivers

determine what can change - drivers set the stage of a changing environment and enable change

Megatrends

what consumers want changed

Renovation, Innovation, Disruption

what we should change

Megatrends in manufacturing and industrial production

- Emerging markets

- Resource scarcity

- Food for all

- Responsible industry

- Technological advances

SWOT Analysis

- Update regularly, keep available for reference

- Audit for internal and external factors

- Info is acquired from internet, reports, surveys, discussions, and meetings

Strengths

build on theory critical

Weakness

do better at a disadvantage, what is wrong

Opportunity

openings in the market, trimmings of opportunity

Threats

government regulations, public perspective

Porter’s 5 Forces

1. Potential new entrants

2. Bargaining Power of Buyers

3. Bargaining Power of Suppliers

4. Threat of Substitute Products

5. Rivarly Among Competitors

Porter’s 5 Forces Strategy

• Differentiation strategy - Distinguish products and services

• Cost leadership strategy - Aggressively seek efficient facilities, cost reductions, and cost controls

• Focus strategy - Concentration on a specific region or buyer, either differentiation or cost leadership approach

Industry Analysis

- Not always easy

- How is the industry changing?

- Finding your spot

- Making strategy part of day to day life

- Strategy documents

Rivalry Among Competitors

- Bargaining Power of Buyers

- Bargaining Power of Suppliers

- Threat of Substitute Products

- Potential New Entrants

Internal factors of the SWOT analysis

Strengths and weaknesses

Competitive Strategy

- Differentiation Strategy: Distinguish products and services

- Cost Leadership Strategy: Seek efficient facilities, cost reductions and cost controls

- Focus Strategy: Concentration on a specific region or buyer, either differentiation or cost leadership approach

Business philosophy

• Concentration of Speciality

• Credibility

• Innovation

• Sustainable

• A set of principles and beliefs that a company uses to decide how to handle different areas of operation

• Outlines the business’s purpose and goals

• List the specific values that are important to the company

Mission is

how you fulfill your why?

Vision is

what will the world look like when your mission is fulfilled

Why is a business philosophy important?

It serves as a roadmap for organizations, helping executives and employees understand the goals and values towards which they are continually working

Basic steps to create a business philosophy

- Identify value-oriented parts of your company (reference your Mission Statement)

- Review business philosophy examples

- Keep your business philosophy simple

Tips for creating a business philosophy

- Ask philosophic questions

- Seek feedback (inside and outside the company)

- Unify your team

- Create a story

- Identify your unique advantages

Porter’s

• Can be applied to any industry

• Avoid getting tricked by the latest trends / technology

• Think about rivalry (Positive support, features, differentiators, Zero Sum (fixed pie))

• Implications/what do you do? (increase market share vs expanding the pie

• Competitive environment as the starting point

• The industry analysis: Not always easy, How is the industry changing?, Finding your spot, Reshaping the nature of the industry

• Making strategy part of day-to-day life

  • Broadly understood in the organization

  • Useless unless results are broadly well understood

  • Alignment

  • Making/reinforcing good choices

  • Common Value Proposition

• Strategy documents

  • Don’t lock in a safe

  • Everyone has to know it!

Bob Chapman’s sharings

• To whom much is given, much is expected

• We need to heal the brokenness in the world

• Unique beauty of every human being

• Catching people doing things right and recognizing and celebrating them

• 95% fo the feedback he receives on his approach to caring for his employees is how it impacts their everyday life and relationships

• Listen without judgement

• Listen with empathy

• Living our values, not preaching them

• Sharing our journey

• In his academic life, he was never taught to care

• Caring can be taught

• If it exists, it must be possible