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Chapter
1
Managing
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the major challenges of managing in the new era
the drivers of competitive advantage for your company
the functions of management and how they are evolving in today’s business environment
the nature of management at different organizational levels
the skills you need to be an effective manager
what to strive for as you manage your career
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Managerial practices will always separate effective from ineffective organizations
Four key elements are new elements in business today
Internet
Collaboration
Across
“Boundaries”
Knowledge
Management
Globalization
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The Internet
25% of publicly-held Web companies became profitable in 2002
most profitable Web companies sell information-based products that don’t require shipping
old economy types now using the Internet as a tool to solidify their future
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Globalization
competing globally is not easy
companies often overestimate the attractiveness of foreign markets
even small firms that do not operate on a global scale must make strategic decisions based on international considerations
face intense competition from high-quality foreign producers
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Knowledge management
practices aimed at discovering and harnessing an organization’s intellectual resources
unlock people’s expertise, skills, wisdom, and relationships
intellectual capital is the collective brainpower of the organization
Collaboration across “boundaries”
capitalize on the ideas of people outside the traditional company “boundaries”
occurs between as well as within organizations
e.g., must effectively capitalize on customers’ brains
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Competitive
Advantage
Cost
Competitiveness
Speed
Quality
Innovation
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comes from people
must be managed properly
excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability
importance of quality has increased dramatically
catering to customers’ other needs creates more perceived quality
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Speed
often separates winners from losers in world competition
requirement has increased exponentially
Cost competitiveness
costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers
key is efficiency - accomplishing goals by using resources wisely and minimizing waste
little things can save big money
cost cuts involve tradeoffs
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Management
the process of working with people and resources to accomplish organizational goals
good managers must be:
effective - achieve organizational goals
there are timeless principles of management
still important for making managers and companies great
must add fresh thinking and new approaches
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The Functions Of Management (cont.)
The manager who does not devote adequate attention and resources to all four functions will fail
Planning
Leading
Controlling
Organizing
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Planning
specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals
delivering strategic value - planning function for the new era
a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage
process intended to create more value for the customer
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Organizing
building a dynamic organization - organizing function for the new era
viewing people as the most valuable resource
the future requires building flexible organizations
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Leading
stimulating people to be high performers
in the new era, managers must be good at mobilizing people to contribute their ideas
Controlling
new technology makes it possible to achieve more effective controls
for the future, will have to be able to monitor continuous learning and changing
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senior executives responsible for the overall management and effectiveness of the organization
focus on long-term issues
concerned with the interaction between the organization and its external environment
titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents
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located between top-level and frontline managers in the organizational hierarchy
responsible for translating strategic goals and plans into more specific objectives and activities
traditional role was that of an administrative controller who bridged the gap between higher and lower levels
provide operating skills and practical problem solving the keep the company working
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directly involved with nonmanagement employees
increasingly being called on to be innovative and entrepreneurial
titles include supervisor or sales manager
Working leaders with broad responsibilities
in small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities
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entrepreneurs
units
business
competencies
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coaches
large company advantage to the independent
frontline units
activities
practices across units
performance and long-term ambition
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Creating and embedding a sense of direction,
commitment and challenge to people throughout
the organization
and performance standards
support cooperation and trust
ambition
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Skill - specific ability that results from knowledge, information, and aptitude
Technical skill
ability to perform a specialized task that involves a certain method or process
managers at higher levels rely less on technical skills
Conceptual and decision skills
ability to identify and resolve problems for the benefit of the organization
assume greater importance as manager acquires more responsibility
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people skills
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You And Your Career
Jobs are no longer as secure for managers as they used to be
organizations still try to develop and retain good employees
employee loyalty and commitment are still important
Companies offering “employability” to workers tend to be more successful
provide training and other learning experiences
employees perform work with greater responsibility
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specialist - expert in something
provide concrete, identifiable value to the firm
generalist - knowing about a variety of business functions so that you can understand work with different perspectives
Be self-reliant
take responsibility for yourself, your actions, and your career regardless of where you work
think and act like an entrepreneur
look for opportunities to contribute in new ways
generate constructive change
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Be connected
be a team player with strong interpersonal skills
all business is a function of human relationships
competitive advantage depends upon you and other people
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2. Define your product: What is your area of expertise?
3. Know your target market: To whom are you going to sell this?
4. Be clear on why your customer buys from you. What is your
“value proposition” - what are you offering that causes him to
use you?
5. As in any business, strive for quality and customer satisfaction, even
if your customer is just someone else in your organization - like
your boss.
6. Know your profession or field and what’s going on there.
7. Invest in your own growth and development, the way a company
invests in research and development. What new products will you
be able to provide?
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Actively manage your relationship with your organization
two ways to think about the nature of the relationships between you and your employer
view yourself as an employee
model for just getting by
contributions likely to be minimal
two-way, mutually-beneficial exchange relationship
figure out new ways to add value
organization likely provide full and fair rewards, support further personal development, and offer more gratifying work environment
You And Your Career (cont.)
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#2
in a productive relationship
Employer
You
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To Contribute
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Survive and thrive
be prepared to move from project to project, team to team
be a master at something that the world values
develop a strong network of colleagues who can help with current and future projects
have entrepreneurial skills that help you act as if you were running your own business
love technology
market yourself
You And Your Career (cont.)