Transcript Slide 1

UNIVERSITY OF SOUTHERN CALIFORNIA
Marshall School of Business-MBA Program
MOR 559
STRATEGIC RENEWAL & TRANSFORMATION
Course Syllabus
Fall Semester 2010
Tuesday Sessions
Professor Michael A. Mische
MOR 559
STRATEGIC RENEWAL & TRANSFORMATION
TABLE OF CONTENTS
I.
II.
III.
IV.
V.
VI.
COURSE SUMMARY & VITAL INFORMATION
COURSE OBJECTIVES, RULES & TEACHING
PHILOSOPHY
CLASS AGENDA
FORMAL HOMEWORKS & DUE DATES
COURSE GRADING
MID-TERM & FINAL INSTRUCTIONS
I.
COURSE SUMMARY
AND
VITAL INFORMATION
MOR 559 COURSE SUMMARY: Fall 2010
MESSAGE FROM MIKE!
Welcome to MOR 559! I am delighted that you have elected to take my class in Strategic Renewal &
Transformation. Hopefully you will find this subject matter to be well worth your time, effort and tuition
dollars. This course promises to be challenging, pragmatic and enjoyable. Please take a few minutes to
review this package of student and course information. It will provide you with a thorough overview of the
course, my expectations and objectives, assignments, readings, grading standards and other important
information.
This course will help you develop skills and thought processes related to strategic change, turnarounds,
M&As, company restructurings, and the causes of company and industry decline. At the conclusion of the
course you will have a better understanding of the symptoms of decline, how-to assess company
performance, and how to turnaround a deteriorating strategic position and performance.
VITAL INFORMATION
Instructor:
Contact Info:
Office Hours:
Class Day:
Class Time:
Exams:
Class Start Date:
Class End Date:
Number of Sessions:
Michael A. Mische
MOR Office 213.740.0728
[email protected]
I will be very happy to meet with you before class or after class, or via phone.
Call me anytime, appointments happily taken. On Tuesday’s I am in the
Courtyard from 5 PM; earlier in my office at 203 Accounting Building.
Tuesday
6:30 to 9:30 PM plus I will stay after class to discuss topics with you
Mid-term & Final; Weekly team discussions
24 August 2010
7 December 2010 (Final Presentations Due This Day)
16 Class Days
MOR 559: TEXT & CASES
TEXTBOOKS-OPTIONAL
SUGGESTED BOOKS (Not Required For MOR 559, But Good Material)
ISBN
Title
Author
0-13-021919-3
Strategic Renewal: Becoming a
Mische, Michael
High-Performance Organization
0-471-3950-6Applied Mergers & Acquisitions
Brunker, Robert
John Wiley
(This is the best book that I know on M&A)
Publisher
Prentice Hall
HARVARD BUSINESS CASES
MOR 559 uses a number of cases in support of concepts and theories. Harvard cases are essential for this case
and your learning. The cases on the next page can be downloaded from the Harvard site for a fee:
http://harvardbusinessonline.hbsp.harvard.edu/b02/en/cases/cases_home.jhtml.
The cases are correlated to topic and lecture topic.
READINGS
NOTE: I will publish the chapters from the text “Strategic Renewal” for you to read each week. ALWAYS
CHECK BLACKBOARD !!
II. COURSE OBJECTIVES, CLASS
RULES & TEACHING STYLE
COURSE OBJECTIVES AND APPROACH
KEY COURSE QUESTIONS
In MOR 559 we ask:
COURSE OBJECTIVES
The primary objectives of this class is to help you develop:
• An understanding the basic concepts related to turnarounds
• Advance your understanding of strategy and management thinking
• Better understand the factors and indicators of industry & company decline &
renewal
• Expose you to several different industries and management problems
• As I result of this course I want you to have elevated your management skills in
strategy and turnarounds
COURSE APPROACH
• What makes a company great?
• What are the indicators of strategic
decline and decay?
• How does industry decline compare to
company demise?
• What is the role of innovation in
turnarounds?
• How can M&As be used to improve
company stature and performance?
• How can companies avoid strategic
decline or can they?
The teaching and learning approaches practiced in MOR 559 have the
following characteristics:
• How do you manage and effect
turnarounds?
• “Project Teams” each team gets a question about the case/reading and
then leads an in-class discussion…we cover lots of material that way!
•Use of cases as a convenient method of studying different situations and
industries (HBS cases are easy to use and access
• High levels of student interactions and inputs
• Direct teaching methods to facilitate discuss and transfer knowledge
• Readings and articles to supplement your understanding of the concepts
• Class simulations to help apply concepts
• Use of analytical models and frameworks to help you advance your skills
and understanding
• What is the role of the CEO as a leader
in transformations?
BE PREPARED TO PARTICIPATE…DO YOUR READING!
CLASS RULES
CLASS PREPARATION
Each team is assigned a specific question(s) related the case assigned. During class, each team leads a discussion of
their specific question(s). In this manner we can cover lots of material and create quite a discussion! Come to class
PREPARED to discuss the case assigned for the week. Failure to prepare will compromise your learning and also
needlessly slow the class down. Know Your Case or Reading!!
LECTURES AND NOTES
Generally, I update my lectures on weekends. Therefore they are usually posted and available for you before class. You
may download them from Blackboard by accessing the course number under the public folders icon in BB. Also
check out my USC website at: http://www-rcf.usc.edu/~mische/USC/Home.htm (It needs to be updated!)
CLASS ETIQUETTE
We are all professionals…hopefully. My philosophy about the classroom is that it should be an open forum for learning
and having fun while learning. Please help me create a positive learning environment by following a few
simple, common sense guidelines:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Bring energy and enthusiasm; BE PREPARED you and your group will work each class!
Respect your fellow classmates and exhort them to participate
Turn off your cell phones and pagers…WATCH YOUR TYPING IN CLASS….
Please watch your pecking on the keyboards…it can be a distraction to those in the class
Stop me if I am not clear or you are not clear on the concepts or material discussed; ask questions immediately!
Feel free to challenge me or raise an argument at any time
If you are late… try to be quiet when you enter the room
If you are eating… be mindful that others may not have…
Please, don’t eat fish in class! No sushi! If you are bored…please leave
Finally, come to class with a sense of humor and ready to learn!!
This Class Is INTERACTIVE…Please Come Prepared!!!
TEACHING PHILOSOPHY
HINTS AND TIPS
TEACHING STYLE
MIKE’S HINTS FOR SUCCESS!!
My style is direct. This class is highly interactive…be prepared for
discussion, debate, constructive confrontation and lots of challenges. I have
been a full-time, professional consultant for 30 years. I haven’t done it all, but
I have managed practices at BIG firms, been a CEO and have lots of stories.
1.
Do your work and be prepared to
discuss cases and theories
2.
Participate, participate and
participate
I teach because I enjoy it! I teach MOR 559 from a pragmatic perspective
with a heavy emphasis on executive behaviors of: critical thinking, industry
capacity analysis, firm resource capacity analysis, financial analysis and
shareholder value. Here are some insights into the experience:
3.
Relax and learn
4.
Work hard and think hard
5.
Learn new industry and business
practices
6.
Be on time with your assignments
7.
Have a sense of humor and laugh
at my notoriously bad jokes that
are often in poor taste
8.
When you have questions or need
some help…ASK!!!
9.
If you have constructive ideas or a
problem with the course or
me…speak up!
10.
HAVE FUN!!
11.
Challenge the proof & your
classmates
12.
Be creative in your analysis
 I use teams to help stimulate the class and expand the materials. Each
week teams are assigned a different question about the case and readings
and then lead a 10 minute discussion. We can cover lots of ground that way!
 I am open to challenge and you are encouraged to challenge me at any
time, debate the concepts and disagree with me…as long as we engage in a
civil and constructive manner
Finally, this is the place to grow, take chances and learn! In this class, you
will never be downgraded for being wrong or for trying. I might single you
out, but it is only to bring you to a higher, more competitive level. Always
remember, the classroom is the forum to get better; therefore, its just fine to
make mistakes, as long as you are trying and learning!

 If you just sit back…beware slackers and fools are not suffered lightly.
III.
COURSE TOPICS, SCHEDULE
&
CLASS AGENDA
TOPICS, SCHEDULE, READINGS & CASES
STRATEGIC RENEWAL
Session
Date
Reading
1
8/24
None
2
8/31
87307
2
8/31
4910
2
8/31
99410
BUSINESS DECLINE & FAILURE
Session
Date
Reading
3
9/7
1710
3
9/7
9-203-042
4
9/14
BH228
4
9/14
CMR369
4
9/14
---LEADERSHIP & TURNAROUNDS
Session
Date
Reading
5
9/21
292082
5
9/21
R0607G
6
9/28
406073
6
9/28
R0306C
6
9/28
Notes
MIDTERM
7
10/5
None
8
10/12
None
TURNAROUNDS
Session
Date
Reading
9
10/19
Lect. Notes
9
10/19
SMR177
10
10/26
KEL183
10
10/26
9-206-39
11
11/2
CMR336
11
11/2
9-805130
12
11/9
CG4A
13
11/16
899218
14
11/23
15
11/30
Notes
FINAL
16
12/7
Presentations
Title
Orientation, Greet & Meet, Expectations
From Competitive Advantage to Corporate Strategy
The Quest For Resilience
Why Good Companies Go Bad
Title
Leading Change: Why Transformation Efforts Fail
Restructuring The US Steel Industry Steel and Auto Industries Comparison
Causes & Consequences of Managerial Failure in Rapidly Changing Orgs
Misunderstanding the Nature of Company Performance
Strategic Analysis & Harley Davidson Set-up
Title
Harley-Davidson
Leading Change from the Top
Gordon Bethane at Continental Airlines
Leadership & the Psychology of Turnarounds
Leadership Qualities
Class Workshop (open session to prepare)
Presentation- Midterm - Each Team Presents
Title
Innovation
How Acquisitions Can Revitalize Cos.
The Best Deal Gillette Could Get?: P&G Acquisition of Gillette
Corporate Valuation & Market Multiples
Managing Strategic Dynamics of Acquisition Integration: HP & Compaq
IBM’s Decade of Turnaround
Oracle’s Hostile Takeover of PeopleSoft
Al Dunlap at Sunbeam and BAB033 Al Dunlap: The Bubble Bursts at Sunbeam
British Petroleum
Course Wrap-up
Teams Presentation
COURSE SCHEDULE
MOR 559 STRATEGIC RENEWAL
SEMESTER: Fall 2010
MEETING DAY: Tuesday
NO. OF SESSIONS: 16
TYPICAL CLASS AGENDA(1)
TIME
6:30-6:45
LEAD
MAM
TOPIC & READING ASSIGNMENT
Today’s business topics and markets: What happened, what’s
going to happen, market movement, company news
6:45-7:40
MAM
Class Discussion & Lecture
7:40- 8:00
ALL
20 minute break plus informal Q &A
8:00- 9:15
TEAMS
Team Discussions
9:15- 9:30
MAM
Lecture, Case Question Feedback
(1) Example only. Subject to change.
IV.
FORMAL ASSIGNMENTS &
HOMEWORK
ASSIGNMENT INFORMATION…IMPORTANT STUFF
FOR WRITTEN HW (If Assigned)
Please help me grade your papers by following these standards:
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•
•
•
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Place your name on each page of the assignment
Number each page & staple pages together
Follow page limit and other instructions
Clearly mark your response to correlate with each question
Type your work using 12 or 11 size font…again make sure that you
staple pages together!
If you have made assumptions in forming your answer, please list
them
Individual assignments mean individual…no outside assistance
Be on TIME! I allocate large blocks of time to grade in batches.
This helps to ensure consistency and turnaround.
If you miss a due date, I will be very late getting your assignment back
to you! I schedule time to grade papers in batches.
PLEASE FOLLOW DIRECTIONS!!
PLEASE NOTE!
 If I do not hear from you I will assume that everything is “OK” and you are
“getting it.”
 If you have questions, issues or problems PLEASE SEE ME in class or privately.
 If you have ideas to improve the class or my teaching, please let me know!
IN-CLASS & HOMEWORK…FORMAL ASSIGNMENTS TO BE GRADED
THE FOLLOWING HOMEWORK IS ASSIGNED FOR: MOR 559, SUM SESSION
(Subject to Change)
The Assignments Represent A Combination Of Team Performance
NO. of GRADED ASSIGNMENTS: 2 Assignments plus Team Performance
ASSIGNMENT
What
1.
2.
3.
4.
Case
10/12
Case
12/7
Individual TBD
Team Questions
Mid-term Presentation
Final Presentation
Individual 25%
Contribution
Date
Format
Grade Wtg.
Presentation
Presentation
Write-up
In class
30%
50%
NA%
20%
NOTE
(1) Dates & assignments are subject to change based on instructor discretion, class
performance, timing and pace. We will do the best that we can to cover all aspects of the
material in a manner that allows for ample and equitable grading of performance and
learning.
(2)
Assignment questions and requirements will be posted in the Class Folder.
(3)
Grading criteria will be posted in the Class Folder with each assignment.
V.
COURSE GRADING
Example Criteria
GRADING AND ASSIGNMENT INFORMATION…MOR 559 (Example Only)
GRADING
I take grading as seriously as you do! I read papers 1 to 3 times to set a standard. At 2-3 minutes per
page that’s 15 minutes per student times 50 students or 12.5 hours per assignment…call it 2 days full
days of work (roughly), but because of the content, it has to be spaced out over a week or so. I will
give you detailed feedback, but please be patient.
Please be assured that I will do my very best to grade your work fairly, honestly, consistently and
accurately…sometimes it takes a little longer to grade so hang in there!! In the event that you have
concerns, or believe that a mistake was made in grading…PLEASE CONTACT ME IMMEDIATELY!
All final grading is based on the USC scale of 4.0. Make make-up, extra credit or special work is
given…you are responsible for your own grades and GPA, not MOR 559 or me. For this semester,
grading will be based on the following weighting and criteria (subject to change):
CRITERIA
2 Team Assignments & Presentation:
Individual Assignments
Team Class Performance & Attendance
Total:
WEIGHTING
80% of your final grade (Team graded)
NA% of your final grade
20% of your final grade (Includes saying smart stuff)
100%
NOTE: No extra credit or make-up…Grade weighting subject to adjustments based on class performance
PLEASE NOTE!
 If I do not hear from you I will assume that everything is “OK” and you are “getting it.”
 If you have questions, issues or problems PLEASE SEE ME in class or privately.
 If you have ideas to improve the class or my teaching, please let me know.
TYPICAL GRADING CRITERIA…Example Only
Understanding of Question & Assignment (5 Pts.)
Do you understand the question and assignment as demonstrated by:
 Restating the question
 Supporting the assigned question with supplementary questions & issues
 Articulating why the question is important and relevant given Ford’s position
 What are the critical issues facing this company as related to your question and why are they so critical?
Depth & Thoroughness of Analytical Approach (20 Pts.)
To what extent was your analysis thorough and useful, as demonstrated by:
 Research approach
 Planned use of relevant facts & research sources
 Planned Approach & Work Plan was logical
Task Plan
Scheduling
 Appreciation for situation, realities and limitations (operational, competitive, financial, shareholder, regulatory,
labor, other stakeholders)
 Avoidance of the stated obvious (we know that Ford makes cars and that Toyota is a competitor)
 Relating research and facts to your question, supplementary questions and issues
 Proposed use of analytical techniques and why those techniques are appropriate
 Insightfulness and perspective into the issues, problems and realities facing Ford (what’s really happening to this
company and why)
 Demonstration of causality with a clear logical path and “results”
TYPICAL GRADING CRITERIA…Example Only
(Grading Example-Continued)
Format & Presentation Quality (5 Pts.)
To what extent is your presentation PROFESSIONAL and indicative of your executive
communication skills:
 Presentation and ES are easy to read, logical and well written
 Analysis and research are documented (no glib statements)
 Material is professional and client ready
 Presentation was delivered well, everyone participated, all team members were introduced and
had a role.
 Transitions to new concepts, ideas, and topics were smooth
 Team members were relaxed and accessible
 Q&A was responsive and lively

“Wow” Factor or “Sleep” Factor
Executive Summary (20 Pts.)
TOTAL POINTS (out of 50 possible):
____________
CONVERSION TO LETTER GRADE:
____________
GRADING CRITERIA
Some Tips
Typically, the grading criteria for my courses includes multiple dimensions. Specifically, I look
for the following:
 Use of key words and signals for the major points and ideas
 Clear concise analysis
 Use of analytical frameworks and course concepts
 Linkage of course ideas, cases, and content
 Well-developed content, analysis and logic
 Direct answers to questions...each question clearly addressed
 Proof of/or use of causality in your analysis and answers
 Easy to read, logical structure and good organization
 Use of charts, illustrations and exhibits which are relevant and support your analysis in a
value-added way
 Use of financial and quantitative data, as appropriate
 Interpretation of facts with context, perspective and meaning…insights not just the facts
VI.
MID-TERM
&
FINAL INSTRCTIONS
Mid-Term & Final: Instructions…EXAMPLE
FOR THE MID-TERM: Requirements
For the mid-term presentation, please answer the
following:
1. Describe your company and explain why you think
that it is worthy of study by top MBA candidates.
2. What are the top 10 critical questions that you are
going to ask about this company? Why are these
questions critical?
3. Identify and discuss your research and data
collection methods.
4. Describe what you believe to be the big issues of
critical importance and how these issues relate to
turnarounds and strategic renewal.
5. Describe how you will go about analyzing the
company.
6. Describe what you hope to learn from studying this
company?
7. Provide a work plan for analyzing the
company…tasks & responsibilities.
8. Provide an outline of your final
presentation…topics and format.
Mid-Term & Final: Instructions (cont’d.)
EXAMPLE
FOR THE FINAL PRESENTATION: Requirements
You must analyze your company and answer the following questions:
1.0
Identify and describe the factors led to the decline of the company. Specifically:
1.1
What are the factors that led to decline?
1.2
How do these factors relate to the overall economy, industry and markets that the company
operates in?
1.3
To what extent were these factors avoidable, inevitable and/or foreseeable?
1.4
To what extent was the industry and sector affected by these factors? Was this decline
reflective of an overall economic condition or restricted to this company?
2.0
What interventions did the company use to facilitate its turnaround?
2.1
To what extent were these steps successful? What made them successful?
2.2
How do these steps compare to the ________________________ and other cases that we
studied?
2.3
What was the value proposition that was offered to support the change
(turnaround)?
2.4
What steps did the company use to affect its turnaround?
3.0
What could the company have done differently or more effectively and why?
4.0
NOTE: These questions will be developed as the semester progresses to best reflect your
learning and class objectives….To be Determined
THANK YOU and LET’S HAVE A
GREAT SEMESTER!!
FIGHT ON!