Transcript X100 Lecture 5 October 1, 2002 Management, Leadership

X100
Engagement #7
Organization Design
A thought to ponder!
What is more important to the
economy?
1. More good paying jobs.
2. Higher company profits.
3. Lower prices.
4. Higher executive pay.
5. Easy credit terms.
While all are positive, more good paying jobs is the
long term perpetual engine of consumption!
Economic Fundamental!
Portion of productivity improvements
goes to workers in form of
higher pay. (Henry Ford)
Today profits as a % of GDP never been higher,
and Middle Class purchasing power continues to
decline. System not working as it should!
Term Paper Due 11/16
2 Weeks/or
14 days
Eat the Frog!!!!!!
Headlines/News
Indiana Hoosiers
IU 24 vs. Iowa Hawkeyes 42
(Still Undefeated)
IU…4 and 5.
2 more wins to become bowl eligible.
2009 Level 5 Tally – 8 Games
Green Section
19
Gold Section
23
Silver Section
21
Total
63 (-1)
Goal
92
Need 15 for each of the last
two games to hit our goal.
The Four Basics of Management
Planning
Organizing
Directing
Controlling
Often over looked in importance!
Taylor
Conrad
Gold
Tyun Fomby
Silver
Chad Smith
Silver
Brandon
Cohen
Silver
David
Greenberg
Silver
Manveer
Grewal
Silver
Kaleem
McGill
Silver
Level 5 Verification (10/31)
Green (19)
Andy Binkle
Alesia Brown
Sean Brown
William Frasier
Hunter Harritt
Ebony Holmes
Jordan Karasik
David Kilpatrick
Alexi Kotlairsky
Noah McElroy
Tyler Miller
Amanda Monacy
Brad Montgomery
Derek Morphew
Katy Sims
James Roller
Alexis Torrez
Nick Turner
Nick Vaughan
+20
+10
+20
+20
+20
+10
+20
+20
+20
+10
+20
+20
+10
+10
+10
+10
+20
+10
+20
Level 5 Verification – 10/31
James Stark
Gold (23)
Marlon Wright
Jessica Allman
Joe Angeli
Rajan Bawa
Jonathan Brown
Taylor Conrad
Katelyn Dawson
Chris Erhart
Taylor Ford
Yi Fu
Amar Iyenger
Lauren Kelley
Jonathan Klem
Kyle Little
Charles Miller
Rick Owens
Alex Rich
Ryne Ring
Cerwin Rush
Jake Schwartz
+10
+20
+20
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+10
+20
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+10
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Corey Young
Qiang Zhao
+10
+20
+20
+10
Level 5 Verification (10/31)
Silver (21)
Justine Barbrack
Brandon Cohen
Korey Daumhauer
Sheev Dave
Paige Draga
Rachel Elman
Jason Feldman
Tyun Fomby
David Greenberg
Manveer Greval
Jarad Jochem
Adrian Khudayev
Jennifer Kienzl
Lauren Kohut
Dan Malloy
Kaleem McGill
Nitin Reddy
+20
+10
+20
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+10
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Jonah Scheichen
Chad Smith
Jameil White
Alex Wojno
+10
+10
+20
+20
20
Organization Design
Past
Traditional Command &
Control
Centralized
Management & worker
division – unions
Protected worker
Present
Discussion of employee
involvement and
engagement, but not
manifesting itself
Command & control
still rules
Corporate trust at all
time low
Increasing pay spreads
Isolated moves to decentralization
Future
Increased “New Market”
focus
Increased de-centralization
Higher trust levels – less
“meism”
Reallocation of decisions,
responsibility
accountability, & pay from
the top – “collective
competitive mindset”
Simplified project based
work design ,work flow,&
distribution of information
19
Key elements of an organization. (team)
People – who (engines of business) (who on the bus)
Roles – what each person does (right seat)
Objectives – what needs to get done…alignment
assignments
both team/ individual
Culture/Collective Mindset – the unwritten way a
company completes the art of business. (invisible
but measureable)
101
18
Every Organization is Unique!
What works at one may not work
for another! (?)
Jack Welch
General Electric (GE) Succession
Cookie Cutter/One Size Fits All/Fad Solutions
17
Organizing is the single most important
decision that will set the tone of your
quality as a decision maker! (?)
Fewer people to choose from in the
future! (?)
I2U
16
Having All
“A”
Players…Does Not Assure an
“A” Team
(?)
15
Synergy
Whole is greater than the sum all
the parts due to interdependent
relationships – Others take others
higher!
I2U
14
The Organizing Process
The primary function of any organization structure
is to achieve the Mission & Objectives.
Must include Customer Satisfaction.
# 1 Leading Indicator of Long-Term Success! (?) I2U
Different missions and objectives require different
organization structures!
102
12
Organization Chart
Often a Single Page
Chain of command- Flow of authority- top to bottom!
Departmentalization – grouping of linked activities – ie.
Marketing /Sales/Advertising.
Span of control – Number of direct reports.
Centralization/De-centralization. – Freedom to operate own.
104
11
The culture/collective mindset of an
organization holds the keys to level of
sustainable performance.
Assessing a culture is like having a
crystal ball, it will predict your future
success. I2U
10
An organizations/leaders personal belief about people
shapes/brands/grips a business.
The collective mindset shapes the results:
Theory X
Theory Y
I2U
Lazy
Self starting
Need to be motivated
Will motivate themselves
Repeat the past
Creative/innovative change
Do not care
Improve to make better
Just get through the day
A better future
9
Management By Objective
Great way to align and spell out department and individual
responsibilities throughout the entire organization.
Company goals
Agreed goals supervisor and subordinate
Individual objectives
Monitor progress
Annual employee performance reviews
I2U
91
8
Characteristics of Good MBO Goals
Consistent with organization’s goals (alignment)
Quantifiable & achievable (measure)
Understandable & understood (transfer
understanding)
Very Important!
Empowerment
without Alignment
is Dangerous.
Time based (schedule)
92
7
Ways of Doing Business
• Problem Solving
• Opportunity Seeking
– Tactical
– Strategic
– Near term
– Long term
– Narrow definition
– Broad definition
– Reactive/negative
– Proactive/positive
– Promotes conflict
– Promotes cooperation
– Looks backward
– Looks forward
– Finds symptoms
– Reveals underlying reality
I2U
6
The Future
- Accelerated Speed of Business/Change (More
fluid organization designs.)
• Increased Customer Focus
• Increased Consumer Complexity
- Declining Talent/Labor Market
- Growth of Generation X and Y
This going
to be your
world!
5
You Ain’t Seen Nothin’ Yet!
It’s Only Going To Get Weirder,
Tougher, and More
Turbulent… Ladies and Gentlemen,
The Captain Has Turned On The
“Fasten Seat Belt” Sign…We’re Going
From Nuts To Flat-Out Freakin’ Crazy.
Tom Peters, Fast Company - Mach 2001
4
The Future Requires a
Different Approach!
• Past - Slower
Market Changes
↓
Skillfully Managed
by a Few
I2U
• Future - Faster Market
Changes
↓
Complexity...Requires
New Leadership
Style
3
Our general conclusion is that, in far too
many instances, the United States in
attempting to implement tomorrow’s
competitive strategies with yesterday’s
managerial ideas.
“The New American Workplace”
James O’Toole and Edward
Lawler III 2006
2
New Competitive Environment
I2U
•Required
• Observed
(1)focused diligence &
(1)focused on internal
reaction to market
processes &cost
changes
reduction
(2)creating a change
(2)decisions made at the
adaptive/high trust
top, driven down
culture
(3) employees
(3)having employee buy in
micromanaged
1
Chain of command – Establishes the flow of authority and
responsibility – Who reports to who – who the supervisor can delegate
responsibility and what each person is accountable to do – who can help
supervisor make organization better – Supervisor needs help!.
Departmentalization - Functional – Marketing, Finance, etc.
Customers – National airlines – commuter
Geography – Location – US – Asian Rim
Product Line – Buick, Pontiac
Span of Control - Span refers to the number reporting directly to a
person
I2U
Centralized organization – authority at one location
De -Centralized – Toyota North America has offices
in North America
105 - 107
Only 10% of employees look forward to going to work & most
point to a lack of leadership.
Maritz Research
Seven Secrets of Inspiring Leaders!
1.
2.
3.
4.
5.
6.
7.
Demonstrate Enthusiasm…Passion! (Hire Passion!)
Articulate a Compelling Course of Action! (Buy-In!)
Sell the Benefit! (Alignment!)
Tell More Stories. (Transfer Understanding!)
Invite Participation. (Involvement/Engagement!)
Reinforce an Optimistic Outlook. (Hope!)
Encourage Potential. (Stretch!)
Carmine Gallo –
BusinessWeek - 10/11/07
Go
Hoosiers!!!