Prof.Dr.Aung Tun Thet

Great Companie

s Think Differentl

y

Business

• Sole purpose to make money - more the better• Narrow image• Focus on maximizing short-term profits • Delivering returns to shareholders• Decisions expressed in financial terms

Business

• Sole purpose to make money - more the better• Narrow image• Focus on maximizing short-term profits • Delivering returns to shareholders• Decisions expressed in financial terms• Lopsided logic

Business

• Command resources that influence world for better or worse • Strategies shape lives of employees, partners,

and consumers

Great Business

• Intrinsic part of society• Make money• How • Enduring institutions• Invest in future • Build people and society

Great Business

• Different logic• Social or institutional• Firms, society and people not afterthoughts • Core to purpose

Institutional Logic

• Companies more than generating money• Vehicles for accomplishing societal purposes • Providing meaningful livelihoods

Institutional Logic

• Value measured not just in terms of short-term profits or paychecks • Also in terms of how it flourish over time• Build enduring institutions

Institutional Logic

• Use societal value and human values as decision-making criteria• Corporations have purpose

Institutional Logic• Meet stakeholders’ needs • Produce goods and services that improve lives of

users• Provide jobs • Enhance workers’ quality of life• Develop strong network of suppliers and business

partners;• Ensure financial viability

Corporate Leaders• Define firm around purpose and values• Produce societal value• Balance public interest with financial returns

Great Companies• Expand investments to include:• Employee empowerment• Emotional engagement• Values-based leadership• Societal contributions

Globalization• Increase speed of change• More competitors from more places produce

surprises and shocks• High premium on innovation• Human imagination, motivation, and

collaboration

Globalization• Aligning corporate objectives with social values

business imperative• Cultural fit and local appropriateness

Corporate Leaders• Builders of social institutions • Institutional logic place alongside economic or

financial logic • Radically change leadership and corporate behavior

Institutional Logic

Six Principles

Institutional Logic

Common Purpose

Long-TermFocus

Emotional Engagem

ent

Partnering with Public

Innovation

Self-Organizat

ion

1. Common Purpose

• Coherent identity• Companies grow, acquire, and divest• Coherence amidst diversity, proclaiming • United for people to rise

1. Common Purpose

• Establishing clear institutional values • PepsiCo “Performance with Purpose”• Shift from “fun for you” to “better for you” to

“good for you”• Institutional grounding - larger than

transactions or business portfolios to provide purpose

1. Common Purpose

• Meaning making central function of leaders• Build and reinforce organizational culture• Name change but identity and purpose live on

2. Long-Term Focus

• Great companies sacrifice short-term financial opportunities if incompatible with institutional values• Invest in human capital • Invested heavily in “emotional integration” -

social bonding and feeling of being “one”

3. Emotional Engagement

• Emotions play major role• Moods contagious – affect absenteeism, health,

and levels of effort and energy• People influence one another

Procter & Gamble

• Purpose, Values, and Principles cornerstone of culture• Evoke strong emotions in employees • Give meaning to company’s brands• Elevated purpose - improving lives of consumers

- into business strategy: improving more lives in more places more completely

Great Companies

• Think of themselves as social institutions• Work emotionally compelling and meaning • Top leaders exemplify and communicate purpose

and values• Everyone owns them• Values embedded in tasks, goals, and

performance standards

4. Partnering with Public

• One paradox of globalization • Need for local connections• Public-private partnerships

5. Innovation

• Attention placed on social needs generate ideas that lead to innovations• Antibacterial concrete• Water-resistant concrete• Road surface material from old tires• Saltwater-resistant concrete

6. Self-Organization

• Employees make choices • Informal relationships• Spontaneous actions

6. Self-Organization

• Knowledge of social structure and informal networks• Closer cross-functional teamwork

6. Self-Organization

• Multidirectional pathways for resource and idea flows• Informal, self-organizing, shape-changing,

and temporary networks more flexible and make connections more quickly• Matrix organizations• Potent force for change

Six Principles

• Interrelated • New kind of capitalism • Win-win opportunities • Creating value for both business and society

Leaders Great Companies

• Tell different story • Produce new models for action • Restore confidence • Change the world

Things Successful 21st

Century Companies

Doing Differently

1. Assume they do not know everything

• Attitude towards knowledge static and closed to outside

• 21st century companies create knowledge by interacting with environment

Involve everyone in improvement work

• In traditional corporations management design and roll out improvements

• In 21st century companies• Everybody

responsible for improvement work

Experiment in Product Development• Traditional corporations • Squeezing out every penny of profit • Know markets they operate in • Excel in existing markets

Experiment in Product Development• Struggle in:• Creating new markets • Creating products that disrupt existing markets

Experiment in Product Development• Cutting-edge companies• Listen to potential customers • Explore whole marketplace • Experiment • Find emerging markets • Learn continuously

Experiment in finding new ways of working

• Traditional corporations • Apply best practices • Compliance

Experiment in finding new ways of working

• Cutting-edge companies • Discover next practices• Experiment• Adaptability

Experiment with management and

organization• Traditional corporations• Structure ever-present• Below C-suite level• Very little changed in how work actually done

Experiment with management and

organization• Cutting-edge companies• Role of management, organizational structures

and C-suite questioned• Experiment

Conclusion

• Experiment defining term • Constantly seek better products and business

models• Better ways of working and better ways of

organizing • Maximize impact

Nine Things Highly

Successful Business Do Differently

9 Things

1. Forget about state of economy

2. Offer something new3. Stop guessing4. Embrace technology5. Build list

6. Provide value7. Embrace mixed

media marketing8. Keep learning9.Stop doing it all

yourself

Corporations Doing Things Differently in

Good Way

GOOGLE• Most widely used and

recognized brand on planet• Innovative marketing

strategies • Insanely popular search

engine• Embedded itself into pop

and business cultures

GOOGLE• Noteworthy for working

environment• Employees have flexible

workdays• Foster responsibility and

creativity• Forward-thinking work

environment

APPLE

• Most dazzling and innovative company in history • Most innovative company in

the world every year since 2005

APPLE

• Steve Jobs’ volatile temperament• Pursuit of perfection• Beautiful, elegantly-

designed and intuitive products

APPLE

• Created ultimate in user experience • Putting out quality products • “Pushing the envelope”• Giving people tools they didn’t

even realize they wanted!

AMAZON

• Revolutionized publishing industry• Kindle e-reader line • Low-cost, easy-to-purchase

options

AMAZON

• Push own limits • New ways to innovate• Jeff Bezo willing to try and

invent

UBER

• Much-needed alternative to regular taxi transportation• Users download Uber app• Put in credit or debit card

information

UBER

• Requesting taxis immediately • Search for drivers • Offer different car styles• Cheapest (comfortable) option• Simplicity and ease of

process brilliant

Thank You!