Harvard 個案範例 - Story

Case: Rob Parson at Morgan Stanley Rob Parson was a star producer in Morgan Stanley's

Capital Markets division. He had been recruited from a competitor the prior year and had generated substantial revenues since joining the firm. Unfortunately, Parson's reviews from the 360-degree performance evaluation process revealed that he was having difficulty adapting to the firm's culture. His manager, Paul , faces the difficult decision of whether to promote Parson to managing director. Paul must also complete Parson's performance evaluation summary and conduct Parson's performance review.

Harvard 個案範例

(1)Have you ever faced a managerial challenge similar to the one Paul face? How did you think about it at the time? What did you do any why? What was the outcome and consequence?

(2)What is your assessment of the organization development process employed by Morgan Stanley as described in the case? What are its chief strengths and weaknesses?

(3) What is your assessment of Rob Parsons performance? Should he be promoted?

Case A->Case B -> Case C

Diagnosing the Working Project

TIC total revenue increased to 1.3 billion NT in 2005, compared with 1.2 billion NT in 2004.

The case company’s EPS drew from 2.82 to 2.01 (28% ↓)

Why?

Why Quality Issue

(1) Rush orders from sales department!(2) Rush orders disarrange the production

schedule.(3) An insufficiency of raw materials! (4) Wait for the raw materials for production!(5) To meet with the delivery deadline!(6) To condense the time for QC!(7) Sale return incase ->Cost of quality increase(8) EPS drew from 2.82 to 2.01 (28% ↓)

The Boss’s Comments

Managers never understand why the company makes money, when it makes money.

The same, managers never understand why the company cannot make money, when it cannot make money!

Who should take the responsibilities for the current situation? You, our managers! We pay well, and you should do more.

You have one year to get thing better!

ERP Decisions?

∵The raw materials need to be controlled! ∵ ERP system cannot support an effective “Material Replenishment Management”

∴ David, the CIO of TIC, has to make a decision: “whether TIC needs to have a new ERP system which can provide a better function to control raw materials for production?”

So what're your thoughts on the ERP decision?

What ERP Can do is…

Reducing Total Order Fulfillment Time Reducing Order Processing Time and Cost Reducing Transportation and Logistics Costs Enhancing Customer Service Enhancing the Ability to Penetrate Markets Improving On-time Delivery Performance Increasing Visibility of Corporate Data Integrating Business Process Integrating Information, Material and Cash flow

But…

Requirements Management Practices...The 'Essence'Betty Luedke - Borland Software Corporation

(ends)

(means)

ManufactureProcess

R&DProcess

SalesProcess

RushOrder

RawMaterials

From RBOM toMBOM

QCCost ofSales Return

EPS Down

ERP

Back to Quality Issue

Relevant Projects

After the diagnosis, David came out with…Organizational Change (vs. TQM)Process reengineering project! (Process)ERP Project (technology)Promoting blood Project (People)

Process Reengineering

Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises.

Start from the future and work backwardsBPR is not easy - serious workBPR is not free - financial & culturalBPR often driven by fear and greedChange is a “struggle”; BPR is a “war”

Change Management Model

Unfreezing Diagnose need for change, status quo no longer acceptable Prepare people & plan change

Changing Implement changes Overcome resistance

Refreezing Institutionalize new ways

UnfreezingUnfreezing ChangingChanging RefreezingRefreezing

Phase One of Organizational Change

Flat organization structure: Flat organization (also known as horizontal organization) refers to a organizational structure with few or no levels of intervening management between staff and managers.

Organization Changing

For TIC,there are five levels.

Phase two of Organizational Change

Promoting blood Project Human resources inventory Human Resources Development

Acquisition Development Motivation Maintenance

http://www.wretch.cc/blog/prajina&article_id=12717319

Actions

The HR manger was fired! David becomes the HR manager (David has

no historical burden.)Redesign job function and job description.Clarify the departmental and personal

accountability! Seeking for new managing team members!

Phase three of Organizational Change

Change from conventionally functional divisions to Profit Center System (Strategic Business Unit) !

A business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets.

ManufactureProcess

R&DProcess

SalesProcess

RushOrder

RawMaterials

From RBOM toMBOM

QCCost ofSales Return

EPS Down

ERP

So, OC+ERP can work?

ManufactureProcess

R&DProcess

SalesProcess

RushOrder

RawMaterials

From RBOM toMBOM

QCCost ofSales Return

EPS Down

ERP

No! Why Rush Order?

The Problem or Rush Orders

The margins of orders may not attractive to our competitors!

Signals: Our competitors focus on the high-margin orders! Our competitors are over-loading!

Assuming the specified due dates are fixed, certain orders must be denied in the presence of limitations on raw materials or production capacity. But, can TIC do it and how to do it?

ManufactureProcess

R&DProcess

SalesProcess

RushOrder

RawMaterials

From RBOM toMBOM

QCCost ofSales Return

EPS Down

ERP

Can Sales Reject Rush Order? Why?

The MIT90 Framework

ManagementProcesses

Technology

Structure

Individuals& Roles

Strategy

ExternalTechnologicalEnvironment

ExternalSocioeconomicEnvironment

OrganizationBoundaryCulture

The TIC Case

Order fulfillment

Mgt. ProcessesERP SystemTechnology

OrganizationalStructure

Sales, R&D, Manu.

Ind.& Roles

MarketingStrategy

ExternalTechnologicalEnvironment

ExternalSocioeconomicEnvironment

OrganizationBoundaryCulture

?

The General Problem of ODMs

Count on their major customers!Lack of market information!Neglect the change of users’ demands!

Sales Department

Achieving sales revenue growth targets is particularly challenging with rising competition and difficult trading conditions. The sales function has never been under so much pressure.

TIC has no marketing department!When sales generate quotations to their

customers, they still cannot ensure whether TIC provides the most efficient products at the best market price.

Role of Marketing

Organizational Resources

Effective match Specification

of Target Market Customer Satisfaction

Organizational Aims/objectives

www.coba.unt.edu/mktg/faculty/blankson/

Elements of a Market Orientation

SharedKnowledge

BaseCapabilities

Channels

• Market sensing• Market relating

• Strategic thinking

Cultureis

externallyoriented Superior

Ability to Understand, Attract, and

Keep Valuable Customers

• Focus on superior customer value

• Coherence of structure and systems

Collaborators

Customers Competitors

Configuration

mktg-sun.wharton.upenn.edu/marketingstrategy/

Components

According to Narver and Slater (1990), Market orientation comprises three components:

Customer orientationCompetitor orientation andInterfunctional co-ordination.

www.coba.unt.edu/mktg/faculty/blankson/

ManufactureProcess

R&DProcess

SalesProcess

RushOrder

RawMaterials

From RBOM toMBOM

QCCost ofSales Return

EPS Down

ERP

Can Sales Reject Rush Order? Why?

No KPIfor Sales

Lack of Market

Orientation

PredictionPerformanceEvaluation

Controlmechanism

Re-Diagnosing the Working Project

The case company’s EPS drew from 2.82 to 2.01 (28% ↓)

Quality issue vs. ERP’s ProblemsNo Marketing department!Established a reengineering project!Strategic Planning for Market OrientationOrganization Transformation

Action Planning

HR ProjectsBI ProjectsNew ERP (under evaluation!)New Performance Evaluation System!…Actions is taking now!

From Manufacture to Marketing

Sales and Production meeting Key Performance Indicator (BSC) Strategy Map Establish Marketing Department

Establish Marketing Department

Market analysisCollect information (both from Customer and

Competitor) for Interfunctional co-ordinationProduct MapCustomer Ranking (top 20)New product policiesSales need to predict the demand for next 3

months & KPI will evaluate the predictions.

TIC decides to focus onhigh-quality, long-term relationship, standardized products.

Q & A