E02 SG (copy)

Coercive power

The power to punish

Expert power

The power of having specific skill or knowledge not found in others

Referent power

The power from admiration or respect

Reward power

The power from being able to provide a reward to others

Dashboard

A visual representation of key performance indicators or metrics

SKA’s

Skills, Knowledge, and Abilities

Protected classes

Groups of people protected from discrimination by law:

All persons of color

National Origin

Gender, including pregnancy but not sexual orientation

Religion

Types of harassment

Different forms of unwelcome behavior or conduct

Sexual, Racial, Ethnic Harrassment

Exempt and nonexempt employees (Course pack #14)

Categories of employees based on eligibility for overtime pay

Independent contractors (Course Pack #15)

Individuals hired to perform specific tasks or projects

Usefulness of information characteristics

Timeliness - the information is available in-time to make the optimal decision: real-time is the term used for “current” data.

Relevance - the information needed by the manager is provided and extraneous information that will confuse the decision making process is eliminated.

Completeness - Other side of relevance: information that is needed is provided and if not then uncertainty, ambiguity, and risk increase.

Quality - accuracy and reliability describe the quality of the information: accuracy is the reality and reliability is related to the variation of the results in repeated tests.

Definition of decision making

The Manager’s Task,

1. The process

2. by which managers

3. respond to opportunities and threats

4. by analyzing options

5. and making determinations

6. about specific organizational goals

7. and courses of actions

Structured/programmed decisions

Decisions that are routine and follow established procedures

Unstructured/unprogrammed decisions

Decisions that are novel and lack predefined processes

Characteristics of the decision environment

Factors that influence the decision-making process:

1. Bounded Rationality

2. Risk

3. Uncertainty

4. Information Symmetry

5. Ambiguous information

6. Time Constraints

7. Information Costs

Stakeholders

Individuals or groups affected by or with an interest in the outcome of a decision.
Those who have a claim on the success and failure of an organization.

The four types of ethics

1. Individual - personal standards and values on how one should interact with others

2. Societal - how members of a society should interact

3. Occupational - standards of behavior for a profession or trade

4. Organizational - guiding practices for a company’s managers to view their responsibility to stakeholders and not just stockholders/owners.

Trust

Willingness of a person or a group to have confidence in the goodwill and competency of another person or organization even though this willingness puts them at risk.

Reputation

How others see managers and organization as a result of their ethical behavior - This leads to trust.

Principle and agency theory

Concepts related to the relationship between principals and agents in decision-making

Management tools

Resources or techniques used to facilitate decision-making and organizational processes

ex; Decision Rights

Decision rights

An organizational rather than individual concept of formally assigning the authority to select one of alternatives for a decision. Based on the type of decision and exists on a continuing basis and on a situational basis.

• Usually for more unstructured decisions

• Used in part to assign responsibility for making the “right” decision - the ethical decision

Utilitarian rule

Greatest good for the greatest number of people.

Moral rights rule

Protects the fundamental rights and privileges

Justice rule

Ethical principle concerned with fairness and equality in decision-making and the equable distribution of benefits and harms.

Practical rule

Ethical principle emphasizing practicality and real-world consequences. Only make the decisions that you are willing to disclose to the public.

Component business model

How business functions are specialized and modularized

• Core competencies - functions or capabilities that are most efficient, optimized, or that provide the most competitive advantage

• Outsourcing - having external service providers perform some activity formerly carried out by a functional organization

Tiers in the supply chain

• Tier 1 - Partners that you directly conduct business with

• Tier 2 - Where your Tier 1 suppliers get their materials

  Tier 3 - One step further removed from a final product and typically work in raw materials

Ex; Heinz Ketchup, Taco Bell Lettuce issue from Tier 1-3, Used illegal labor

Physical and conceptual supply chain

• Physical - characterized by ownership - warehouses and transportation and production facilities - or contracted services

• Conceptual - a network of companies and people that are involved in the production and delivery of a product or service.

Manufacturing Cycle Time

The total time taken to convert raw materials into finished goods. This includes loading time, machining and assembly time, inspection time, material movement, idle waiting time, and the time taken for all other actions during the manufacture of finished goods.

- Making the Product

Inventory turnover

The rate at which a company sells and replaces its inventory, Supply & Selling

Demand chain

Three areas of a business – sales, marketing and customer service – that focus on driving customer demand for a company's products and services

Ex: Target Marketing

Classical conditioning

A type of learning that pairs a stimulus with a response

Discovered by Ivan Pavlov

Operant Conditioning/Learning

Learning based on the consequences of actions, How we respond to what is presented to us in our environment.

Business case

Justification for a proposed project or investment, the reasoning for initiating a project or task.

Strategic thinking

The process of developing insights and plans for achieving long-term goals

1. Strategic Intent - A disciplined approach to only do what matters

2. A systems perspective - What are my resources?

3. Thinking in time - This is vision

4. Intelligent Opportunism - How do you connect your resources to your vision?

5. Hypothesis-Driven - Contingency thinking: what happens when we get there?

Crossover approach

A method that combines different strategies or perspectives - street two sides/blocks

Phase method

A structured approach to project management with distinct stages

• For big changes that take time.

1. Unfreezing - prepare for change

2. Changes

3. Refreezing - change is stabilized

Creativity

Research and Development

1. Ability to generate new and original ideas - (R)

2. that are actionable - (D)

Innovation

Applying new ideas to the organization

1. Invent - application of the new idea from the “creative process” for the organization

2. Develop - makes the new idea practical

3. Diffuse - puts the idea into the hands of the end user

4. Integrate - makes the new permanent in the organization

5. Monitor - tracking of the innovation to validate its continued use

Staff functions

Supportive roles within an organization that are not directly involved in production

Line functions

Roles directly involved in the core operations or production of goods and services

The five C’s

“How does a manager lead?”

• Commitment

• Competency

• Courage

• Candor

• Compassion

ISO

International Organization for Standardization, sets international standards for quality and safety, “the general standards”

Juran’s cost of quality

A concept that focuses on the costs associated with achieving quality standard

1. Prevention Costs

2. Appraisal Costs

3. Internal failure costs

4. External failure costs

Quality

Ability of a product or service to meet customer expectations and needs

Quality of Design - fitness for use as seen in the house of quality

Quality of Conformance - How well the manufacturing process meets the quality of design

Business risk

Risk found in the assets of the organization

• Brand, Economic, Customer, Asset

Financial risk

The possibility of losing money or facing financial uncertainty. Risk found in the amount of debt the organization has.

Decision tree

A decision support tool that uses a tree-like model of decisions and their possible consequences. Allows for contingency thinking - “What happens if…”

Monte Carlo method

A statistical simulation used to predict the probability of different outcomes when the intervention of random variables is present.

Ex: Casino

Trustee in a nonprofit organization

An individual responsible for overseeing the management and operations of a nonprofit. They have increased personal financial liability as they are “board members” responsible for governance of a nonprofit organization.

Personal liability of trustees

The legal responsibility of trustees for the actions and decisions of a nonprofit organization. Trustees have increased personal financial liability.

• Protected by insurance

• Oversight by both state and federal, (Registry of Charitable Trust vs IRS)

Cross Docking

A logistics procedure where products from a supplier or manufacturing plant are distributed directly to the customer or retail chain with marginal to no handling or storage time.

The components of the Four P’s

Marketing Mix, “Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat.”

• Product

• Price

• Promotion

• Placements

  —> Target Markets

BCG Growth/Share Matrix

Boston Consulting Group Growth - Share Matrix

Made for cash generation

• Cash cows

• Stars

• Question Marks

• Dogs

• Market share and cash generated

• Market growth and cash usage

SWOT

Framework for analysis

• Strength

• Weakness

• Opportunities

• Threats

Needs lots of detail.

Internal Analysis - organizational competencies such as targets for transformation change

External Analysis - driving forces for transformational change

Legitimate Power

Power granted by some authority

Headcount

The process of counting the number of employees in a company or organization to determine the total workforce size.

Porter’s Five Forces

• Suppliers

• Customers or buyers

• Substitutes

• Potential Entrants

• Industry Members

Theories of Discrimination

The policies and practices in employment that negatively affect any legally protected civil group. The adverse is the measurement of that negative consequence.

a. Disparate or Adverse Treatment

• Intentional

b. Disparate or Adverse Impact

• Unintentional

Marketing Channel

People, organizaions, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. The way products get to the end-user, the consumer; aka a distribution channel

Patterns in Enterprise

• Buy Side Patterns

  • Deal with suppliers

  • Procurement is the simplest business pattern; one buyer from one seller

  • Direct vs Indirect Procurement

• Sell Side Patterns

  • Order management and fulfillment

  • Channel Management - working with distributors, retailers

  • Customer Relationship Management - marketing, sales, customer service

• Patterns in the Middle

  • Design & Engineering

  • Manufacturing

  • Human Resources, Finance

  • Information Systems

Threats to change process

• Degree of Change

• Time Frame

• Impact of Culture

• Loss of Existing Benefits

• Threat to position power

• Threat to security

• Redistribution of power

• Disturb existing social networks

• Uncertainty Regarding Change

• Disruption of routine

Why Change Occurs

1. Dissastifaction with the present situation

2. External pressures toward change

3. Momentum toward change

4. Change rarely occurs without a reason for change

5. Duke & Deloitte cases

Forced-Coercion

Use of fomral authority to create change

• Legitimate, Reward Coercive powers

• Direct

• Fast, but may yield temporary results

Rational Persuasion

Creating change through rational and empirical arguments

• Expertise power

• Informational Efforts

• Results may vary depending on acceptance of change

  
  

Shared Power

Developing support through personal values, beliefs, and commitments

• Referent power

• Participative efforts

• Slower results, but able to internalize the changes

Authority

The ability co command, direct, or influence thoughts, opinions, or behavior.

• To have authority, you need to have power.

Duke Hospital Case Study

# Duke Children's Hospital Turnaround

## Background (pages 1-2)

- DCH was losing $11 million annually in 1996 due to long lengths of stay, high costs per patient, and staff cuts compromising care quality

- Jon Meliones witnessed a situation where a baby couldn't be removed from a ventilator overnight due to lack of respiratory staff

- This inspired him to find a way to improve both quality and finances

## Balanced Scorecard Approach (pages 3-8)

- Meliones realized departments were focused on individual goals rather than the organization's overall mission

- He decided DCH needed to think more like a profitable corporation, not just a nonprofit

- Meliones introduced the balanced scorecard framework from business to align goals across financial, customer, internal processes, and employee satisfaction

- This was implemented through a pilot ICU project and then organization-wide

- Key elements included:

- Multidisciplinary clinical business units focused on specific conditions

- Data analysis to find cost-saving opportunities

- Standardized clinical pathways and protocols

- Improved communication and feedback systems

- Results were dramatic with costs cut by $29M from 1996-2000 without staff cuts, through improved processes and protocols

- Length of stay decreased from 7.9 to 6.1 days, costs per patient fell by $5,000, margins improved from -$11M to +$4M

## Challenges (page 7)

- Changing mindsets and roles was difficult and required persistence and reassurance

- Data needed to be transformed into useful performance information

- Targets had to be set conservatively at first to maintain morale

- Constant communication, feedback, and celebration of successes was essential

## Lessons Learned (page 8)

- Listen to employees and involve different expertise to build consensus

- Start with a pilot project before wide implementation

- Maintain a sense of humor during challenges

- Data and information systems need to evolve along with practices

- Continuous improvement is ongoing through staff ideas and fine-tuning

Business Case

Captures the reasoning for initiating a project or task.

Deloitte Case

Here is a detailed notes outline of the key points from the document in Markdown format:

# Winning the Talent War for Women at Deloitte

## Background (page 1)

- In 1991, only 4 of 50 candidates for partner at Deloitte were women, despite heavy recruiting of women

- Women were leaving Deloitte at a significantly higher rate than men

## Initial Response (page 2)

- In 1992, Deloitte formed a task force chaired by CEO Mike Cook to address the issue

- Many partners initially didn't see the exodus of women as a problem for the firm

## Investigating the Problem (page 3)

- The task force took a methodical approach to investigate why women were leaving and make a business case for change

- Interviews found most women weren't leaving to raise families but were dissatisfied with opportunities and culture at Deloitte

## Preparing for Change (page 4)

- The task force held intensive 2-day workshops for all management professionals to surface gender assumptions

- Workshops were a turning point that began changing attitudes

## Implementing Operational Changes (page 5)

- Local offices began annually reviewing opportunities for top-rated women

- Networking events and formal career planning were introduced for women

## Expanding the Initiative's Scope (page 6)

- Changes promoted better work-life balance for both women and men through flexible schedules and arrangements

- This opened the culture and benefited employee well-being and creativity

## Ongoing Progress and Challenges (page 7)

- Percentage of women partners rose but more progress is needed

- Initiative must now address advancement of existing women partners into leadership

- Values must extend to Deloitte's increasingly global operations

## Cultural Transformation and Benefits (page 8)

- Environment and assumptions have been transformed down to smallest details

- Initiative narrowed gaps in culture and between vision and reality

- Diversity has improved creativity, growth, performance for clients

Mintzberg’s Competitive Advantage

1. Efficiency

2. Quality

3. Innovation

4. Respnsiveness to Customers

Ways to manage risk

1. Risk shifters - shift onto someone else (insurance)

2. Risk Avoiders - one does not take the risk at all (avoidance)

3. Risk Managers - One that can handle risk and knows how to deal with it.

Natures of Risk

1. One-time event

   • can be analyzed with a decision tree and probabilities/game theory

   • Managed in part with project managment

2. Recurring Events - can be analyzed with Monte Carlo

Order Fulfillment

Sales & management

1. Product offering - Catalogs

2. Taking Orders

3. Filling them as promised

4. Order Tracking

5. Follow up on exceptions

Channel Management

Marketing

1. Resolving conflicts

2. Manging contracts - shipping, insurance, regulations

3. Warehouse management

Framework for Competitive Advantage

1. Efficiency

2. Quality

3. Innovation

4. Responsiveness to customers

Balanced Scorecard

1. Financial

2. Customers

3. Internal Business Process

4. Learning and Growth

5. Metrics

6. Initiatives

   • “Duke Hospital”

value chain

value chain