Management Focus Issue 30

8/7/2019 Management Focus Issue 30

1/17

Inside

Collaborate to Innovate

Global Power Shift

Innovating with IT

Project Managers: Lessons Learned?

Releasing Time to Manage

Working through the ZOUD

Issue 30 // Spring 2011 www.som.cranfield.ac.uk/s

ManagingthePriceof

Food

FocusManagement

The Magazine of Cranfield School of Management


2/17

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ISSN 1474-1199

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written consent o Cranfeld School o Management.

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every care has been taken in the production o this

magazine, the publisher cannot be held responsibleor the accuracy o the inormation contained herein.

2011 Cranfeld University.All rights reserved.

04

20

08

22

10

24

14

26

News

Global PowerShit

Innovating

with IT

ProjectManagers:

Lessons

Learned?

Releasing Time

to Manage

Collaborateto Innovate

Working

through theZOUD

Alumni interview:Howard Dickel

(MSc PPM 2010)

16 Managing the Price o Food

The world continue

a remarkable pace a

the worlds leading m

schools, it is our aim

individuals and organ

stay ahead with the

and research.

Our faculty, which is

largest and most div

business school in E

actively engaged in c

and business relevant research and are closely in touch with the

business and government. Their commitment to our mission of t

knowledge into action and management practice means they are

current and topical in their teaching. They bring not only experie

to their programmes. They understand your challenges. They hav

themselves and they can help you to do the same.

A combination of rigorous research and inspirational teaching is

of everything we do. We are dedicated to making a difference - c

responsible management practice, improving business performan

inspiring the next generation of leaders. We work to change the

students and executives by encouraging innovation and creative t

as the drive to succeed and make a real impact on their organisat

This edition of Management Focus tackles some of the many issu

managers today, from knowing when and how to innovate to ma

effective top team. San Rickard discusses what needs to happen

manage the spiralling cost of food and Professor David Buchanan

Dr Emma Parry share the early ndings from their three-year re

investigating the realities of front-line managers in the NHS.

I do hope you enjoy the read.

Proessor Frank M HorwitzDirector, Craneld School of Management

You can download the magazine at

som.cranfeld.ac.uk/som/m

If you would prefer to receive the next

issue (due out Autumn 2011) electronically,

or have any suggestions for future topics,

please contact Media Relations

on +44 (0)1234 754348 or email

[email protected]

Contents Edit

"We are dedicated to

making a difference

- creating responsible

management practice,

improving business

performance and

inspiring the next

generation of leaders."


3/17

Professor Frank Horwitz, Director

of School hosted the Schools

annual awards evening at the Royal

Institutions Faraday Theatre in London

in January. The awards recognise

the very considerable achievements

of alumni and students. Guest

speaker, Warren East (EMBA 1990)

CEO of ARM Holdings, who was

announced at the event as the 2011

Distinguished Alumnus,

Congratulations to Professor Richard

Wilding who received the prestigious

Individual Contribution Award at

the recent European Supply Chain

Excellence Awards. Richard is pictured

with the host of the evening, comedian

Rufus Hound and Mark Judge who

presented him with the award.

Professor Wilding has been

described as one of Europes leadinggurus for supply chain excellence,

The Craneld Knowledge

Interchange (KI) Online has

recently been redesigned and now

offers an even easier route to

the latest relevant and respected

management information from

Craneld. The site gives subscribers

access to a unique blend of

resources, new concepts, latest

publications and presentations. This

exclusive service enables managers

to use the resources for personal

development and business.

In January, Harry Clarke was

presented with the 2011Craneld

Entrepreneur Alumnus of the Year

award. Harry, Commercial Director

at Cobalt Telephone Technologies

completed his Craneld MBA

in 1992. The award is presented

annually to the alumnus who has

made an outstanding entrepreneurial

achievement and promotes the strong

entrepreneurial spirit present withinthe School alumni body.

Distinguished Alumnus Knowledge Online

Entrepreneur AwardSupply Chain Award

News

gave a presentation titled The

future is in our hands. Warren

talked about how we, as consumers,

can exercise intelligent choices

about how and where we spend

our money and that these choices

impact directly on global issues.

His company ARM Holdings is the

major European designer of silicon

chips that provide the brains behind

countless digital devices.

promoting supply chain innovation

in an easily accessible way for nearly

20 years.

Richard has helped develop Cranelds

Centre for Logistics and Supply Chain

Management into a leading centre of

excellence. The Centre provides an

international focal point for advanced

teaching and research in the eld of

logistics, supply chain management andtransportation management.

The uture o ood

Cranelds Executive Doctorate (D

programme has been awarded the

5 year accreditation by the Associa

of MBAs (AMBA). It is one of onl

AMBA accredited DBA programm

UK (and only seven worldwide), w

testimony to the high standard and

quality assurance of its programme

international scale.

Senior Business Economist, San R

was commissioned to write a repo

value of crop protection which wa

by the Crop Protection Associatio

report was launched at the annual

House Food Security Conference

attended by some of the most inu

speakers in agricultural developme

a leading commentator on food, fa

rural policy issues and is often calle

advise the government.

International accre

VentureDay 2011

The Schools Bettany Centre will h

2011VentureDay on 12 May. The o

conference and networking event

at entrepreneurs and those interes

cutting-edge entrepreneurial perfoKeynote addresses will be given by

entrepreneurs including Harry Cla

former media tycoon Eddy Shah.

S P R I N G 2 0 11 MF MF


4/17

News

Research

The 2010 Female FTSE report from

the Schools International Centre for

Women Leaders revealed another

year of barely noticeable change in

the number of women in

leadership positions of the UKs

top 100 companies.

The report, complied by Professor

Susan Vinnicombe OBE, Dr Ruth

Sealy, Jacey Graham and Elena Doldor,

detailed that there are just 135 female-

held directorships out of1,076 on the

FTSE100 boards. The latest gure of

12.5% highlights a three year plateau

(12.2% in 2009 and 12% in 2008)

signifying a situation of stagnation

when it comes to diversity in

British boardrooms.

Equalities Minister Lynne

Featherstone said: It is worrying

that women who make up more

than 50% of the population still

account for just one-eighth of

FTSE 100 directors. Making boards

more diverse is not about political

correctness - its about making sure

companies draw senior staff from the

widest possible pool of talent, whichis good for business, good for staff

and good for customers.

Diversity report has huge impact

A study into public sector innovation

carried out by Professor Keith Gofn

and Dr David Baxter showed that public

sector managers need more guidance on

commercial partnerships in order

to make them work effectively.

A survey revealed that only a minority of

respondents were able to give examples

of successful service innovations in theUK public sector, and very few of these

examples were commercial partnerships.

Public sectorinnovation

Change at any age

A new study led by Dr Emma Parry,

has revealed that there is considerable

stagnation in the careers of many over

50s. The research conducted for the

Employers Forum on Age (EFA) found

that many employers are not currently

doing enough to prevent this and the

loss of skills and attitudinal problems

that result.

Mobile savvshopper

A new report co-autho

Dr Silvia Rossi and Prof

Wilding raises serious q

the ability of Britains cu

infrastructure to suppor

development of mobile

that provide shoppers w

product information. Th

partnership with GS1 U

quality of product descr

data available in three of

downloaded third-party

scanning apps. Only 9%the correct product des

compared with the app

Ineective salesbehavioursThe Harvard Business Review (HBR)

recently published an article discussing

Cranelds research project wit h sales

consultancy Silent Edge. The article by

Professor Lynette Ryals highlights the

key ndings from the project. Craneld

worked with data, provided by Silent

Edge, analysing the performance of 800

sales professionals observed in live sales

interactions. The results identify eight

sets of behaviours in sales meetings. By

understanding these behaviours, managers

can effect changes in their current sales

force and recruit better team members in

the future.

Key ndings of a signicant new

piece of research from Professor

Michael Dickmann and Dr Emma

Parry have revealed International

NGOs widely agree that they must

improve the speed, quality and

effectiveness of their humanitarian

leadership response to overcome

the challenges that arise from climate

change, global insecurity, scarce

resources and increasing scrutiny

from a wide range of stakeholders.

The research is the result of a joint

initiative by Craneld and People In

Aid. Funded by ELRHA, the research

aims to help agencies understand the

nature and scope of internationalleadership competencies required

over the next decade.

Leadershipchallenges

Lord Davies of Abersoch, former

Labour trade minister was asked by

Business Secretary Vince Cable and

Minister for Women Theresa May

in August last year to carry out a

review to increase the representation

of women on the boards of UK

companies. Professor Susan

Vinnicombe, Director of Cranelds

International Centre for Women

Leaders was a member of Lord Davies

steering committee. The report

Women on Boards was published on

24 February. Cranelds Female FTSEreport was referenced extensively in

articles about the review.



5/17

IT

by Joe PeppardProessor o Inormation Systems

Innovatingwith

A ramework developed by Cranfeld can help

organisations to consider and assess their

current approaches to business innovation with IT.

nformation technology is

now part of the very fabric

of almost all organisations.

Indeed, few could survive for very long

without their IT systems. While IT

provides tremendous opportunities

for innovation, most non-technology

organisations struggle to take advantage

of these opportunities. A global survey

that we conducted as part of our

research to help such organisations be

more proactive in their approach to

business innovation with IT, revealed that

only 14% of large companies believe that

they are maximising the potential of IT.

This is an astounding statistic given the

potential that technology offers.

Opportunities for IT innovation

come from one of two sources. ITmay respond to requirements that

come from the business, what is known

as business-pull. Alternat ively, IT-push

Isees emerging technology or new

combinations of existing technology

provide the motivating force for

business innovation.

If the IT innovation agenda is going

to have any real chance of success,

there must be an acute awareness of

the trade-off between push and pull

factors. While our data revealed that

over 80% of innovation is instigated

by demand-pull factors, this results in

more incremental innovation. A good

way to describe the limitations of such

pull is to think of the famous Henry

Ford quote: If I had asked people

what they wanted, they would have

said faster horses.

IT-push innovation tends to lead to farmore radical innova tion. Yet, because

of the uncertainty in outcomes,

it is often more difcult to obtain

funding for technology-push projects

and therefore many IT executives simply

ignore or minimise such efforts and

focus on supporting and aligning with

demand-pull requirements.

Our research led us to develop a

framework that maps IT push against

business-pull, highlighting the specic

issues and challenges that must be

grappled with when considering

business innovation with IT (see

Figure 1). This has proved to be a

powerful framework in our work

with executive teams; giving IT a more

innovative mandate and helping them

to understand the trade-offs that they

unknowingly make. The framework

also highlights four specic traps

that executives can fall into thathave profound implications for any

organisation seeking to promote an IT

innovation agenda.

On the push side are technologies

that are either known to the

organisation, or exist in the

market, but are as yet unknown

to it. On the pull side are

problems and opportunities

that are either dened or exist

but have not yet been identied

and thus remain undened.

Problems tend to be grounded

in the existing organisation and

its strategy. Opportunities mean

doing something different and new.

In the known-dened quadrant

are problems and opportunities

but with known solutions. The

known-undened quadrant

captures the situation where a new

technology is identied that may

have potential for the organisation.

This potential has yet to be

identied and dened and requires

investigation to seek out what

these might be.

The dened-unknown quadrant is

where a problem is highlighted and

a search is conducted to identify

potential technology solutions.

The bottom-right undened-unknown

quadrant represents the fact that there

are problems and opportunities that

have yet to be dened and that there

are technologies the organisation is

currently unaware of.

This simple framework can be used

by organisations to consider and

assess their current approaches to

business innovation with IT. A key

question to be addressed is whether

you have initiatives in all quadrants. The

framework also highlights a number

of traps that organisations can fall into

when looking to innovate with IT.

The complacency trap occurs

when organisations believe they

are innovating when in fact they are

applying a known technology to a

dened problem or opportunity.

The innovation might be new to

them but it is certainly not providing

any competitive differentiation. The

credibility trap occurs when a

technology with potential application

is identied and due to the poor

credibility of the IT department or lack

of appropriate business relationships,

it fails to gain any traction in the

business. The imitation trap arises

when the organisation simply

copies what others have done in

applying technology to a business

problem or opportunity. Finally,

organisations fall into the ignoranc

trap when they fail to acknowledg

that there are problems and

opportunities still to be dened an

technologies to be identied.

An organisation needs to operate

in all four quad rants, recognising

that not all their actions will

lead to competitive advantage.

Ultimately, all innovations end up

in the known-dened quadrant

as it is difcult to keep any

innovation secret for very long.

Your competitors are continually

watching your strategic moves, jus

as you are theirs. The challenge is

to ensure that your organisation

is operating in the other three

quadrants while simultaneously

avoiding the traps.

For further information contact the

author at [email protected]

MF

InformationTechnology

Push

Technologysearch

Solution to a knownbusiness problem

Defined

Known

Unknown

Undefined

Business Problem / Opportunity

Pull

Opportunities search

Missed opportunities

Complacency Trap

Imitation Trap

Credibility Trap

Ignorance Trap

Figure 1



6/17

by Dr Emma ParryPrincipal Research Fellow

Organization Studies

and David BuchananProessor o Organizational Behaviour

he constant ow of g

policy initiatives, pres

targets and high pro

about patient safety and ward

have combined to make the N

Service (NHS) a complicated a

environment in which to work

Although they are responsible job of managing the delivery of

and often get the blame when

wrong, surprisingly little is know

the work and experiences of fr

middle managers in the NHS.

T

ReleasingTime toManage

S P R I N G 2 0 11 MF0 MF


7/17

Despite the myriad o waysthat they can contribute toorganizational outcomes, weknow that NHS managers areundervalued, overstretched andoten underutilized.

It is against this backdrop that a team

of researchers at Craneld School of

Management have embarked on an

extensive project to investigate the

roles, contributions and realities of

front-line and middle NHS managers.

Funded by the Service Delivery and

Organization (SDO) programme,

the project is using a combination of

interviews, focus groups, and a survey of

managers in six NHS Trusts to explore

what front line and middle managers

contribute to patient outcomes, what

motivates them and the barriers they

experience when trying to perform

their jobs. This article looks at some of

the early ndings from the project.

We know that middle and front line

managers in acute settings within the

NHS are highly motivated, particularly

when it comes to making a difference

for patients. We asked midd le and

front line managers what motivates

them to do their job and found a lot of

commonality in their answers.

Managers said they were motivated

by the desire to make a difference for

patients and to provide a high quality

service. However, they want to feel valued

and receive recognition and feedback

for the work they do. Some managers

enjoy developing others, supporting their

colleagues and working in a team, while

others emphasize self-development.

There was also evidence of public

sector values. Some of our participants

mentioned factors such as pay, job security

and terms and conditions; but these were

not the primary motivations for working

within the NHS. The managers that we

spoke to were enthusiastic about the buzz

of innovation and trying new things.

The popular stereotype of NHS

managers is as costly administrators and

bureaucrats who block change. Yet our

research shows that middle and front line

managers in the NHS are fundamental to

implementing service improvements and

other organizational changes that make a

real difference to patients.

Third, managers told us that the

demands relating to compliance make

their jobs difcult as they constantly

have to service the regulators and

are under pressure to avoid breaches.

Fourth, managers reported that they

have a number of issues relating to the

systems and processes, such as dated

IT, information gaps, and are constantly

ghting systems that dont work. Fifth,

our interviewees spoke about difculties

with external relationships particularly

with primary care trusts. Sixth,

difculties are caused by the constant

demands for change coupled with the

slow rate of change. Finally, managers

experienced other issues around staff

shortages, recruitment problems and

learning from serious incidents.

This paints a picture of a problematic

environment with potentially more

barriers and blockages than facilitators

for middle and front line managers

trying to make a difference for patients

and to their organizations.

Managers told us that they felt like

hamsters on a wheel, that middle

and front line managers only ever get

beaten up and that it doesnt matter

what we do, it is never good e nough.

We can see then that the organizational

environment surrounding middle and

front line managers doesnt necessarily

support their contributions and that

they often lack the resources, authority,

external support and, in particular, the

time to be able to drive and implement

new ideas.

Middle and front line managers are not

always allowed to punch their weight

in terms of contributing to service

improvement and clinical outcomes.

Some simple cost-neutral steps would

enable them to make a greater impact.For instance, middle and frontline

managers should be empowered to

decide, within their budgets, how their

areas are run and be provided with

timely and understandable nancial

information. At a divisional level,

the clinical director and

manager make a powerfu

they collaborate effective

improvement events give

to reect, and to develop

approaches. More ofce

fewer meetings would als

Finally, at a personal level

front line managers shou

walk the oor and talk to

and not be driven by ema

should be allowed to cre

reection and for exchan

with colleagues.

For further information con

authors at emma.parry@c

or david.buchanan@cranf

MF

Our research revealed that they contribute

to clinical and organizational outcomes in

seven main ways (see Figure 1).

Despite the myriad of ways that they

can contribute to organizational

outcomes, we know that NHS managers

are undervalued, overstretched and

often underutilized. This experience

seems to be true across the Service

and is shared by middle and front line

managers regardless of their place in the

organizational hierarchy from ward

sisters to directorate managers.

Our research has identied seven

sets of barriers to middle and front

line managers performing their roles

effectively. The rst is money as the

pressure to cut costs and the increasingly

complex funding model often make it

difcult for managers to be effective.

Second is the work itself as issues

related to nding the time and headspace

to manage effectively and the need for

broad shoulders and a thick skin.

Figure 1:Seven ways in which NHS managers contribute to clinical and organizational outcomes

1. Identifying, selling and implementing

service improvement ideas and

opportunities.

2. Translating and implementing

ideas from colleagues and external

sources.

3. Facilitating change, taking risks,

working with clinicians, organizing

rapid improvement events.

4. Process and pathway redesign

such as the productive ward and

lean methods.

5. Developing infrastructure such

as new IT systems and physical

facilities.

6. Developing skills in others and

getting people on board.

7. Leveraging targets to improve

performance, through the

use of techniques such as

dashboards and benchmarking.



8/17

The ability to work effectively in the Zone

of Uncomfortable Debate is a capability that

distinguishes effective management teams

from the rest. It may even be rare enough to

make such teams very special.

by Dr Catherine Bailey

Director

Cranfeld Business Leaders' Programme

ost senior managers nd

their executive team difcult.

Dysfunctional is a favourite

word. Testing dynamics, political

agendas, big personalities, strong

opinions (and voices to match), too

much or too little control is the reality

for many. Not surprisi ngly, they nd the

real work of the management team -

tackling the big strategic and business

performance issues - challenging at the

best of times.

But times have changed. The

unprecedented business challenges of

the recession have tested teams with

tough choices and urgent decisions.

Difcult decisions about what, where,

how, and how deep to cut for efciency

whilst sustaining capability in a radically

changed nancial environment.

M

Never has it been more necessary or management teams to be able to

work through the Zone o Uncomortable Debate (ZOUD) that unspoken

process that prevents us rom questioning too closely the things that are

held dear in business.

These issues now give way to even more

demanding questions about positioning in

the dynamic landscape of new and changing

customer preferences, dwindling markets

and outdated practices; but at the same

time booming opportunities and the high

gain, high risk potential of growth strategies.

At no time in the recent past have business

teams needed to be more able to address

the basics, to challenge themselves to

identify their business core capability, yet

at the same time take swift and decisive

action. Never has it been more necessary

for management teams to be able to work

through the Zone of Uncomfortable

Debate (ZOUD) - that unspoken process

that prevents us from questioning too

closely the things that are held dear in

business. Such discussions all too easily

dissolve into hostility, power plays, ridicule,

escape mechanisms or delay tactics.

Seventy senior managers from fteen

executive teams attending Cranelds

High Performance Business Team

programme shared their experiences of

the ZOUD. What prevents productive

discussion on difcult issues and how

can managers handle vital but tricky

business decisions? Here are some of

their collective insights on what gets in

the way:

Insufcient knowledge of others

agendas and views

Others inability to discuss difcult issues

Fear of uncontrolled emotions

Assuming you need the answer to ask

the question

Prejudging the answer

Fear of surprises

Lacking condence in a productive

outcome.

ZOUDWorkingthrough

the

How to work through the ZOUD

1. Prepare people, process and place

Give people the opportunity to prepare; rotate

the Chair; legitimise and spread the responsibility

for asking challenging questions by taking turns

to be devils advocate; ensure sufcient agenda

time; choose a comfortable or different location

for ZOUD discussions.

2. Make ZOUD discussions an executive

team competence

Be clear why it is important for the team to

talk about ZOUD issues; recognise the natural

difculties that everyone experiences; agree

rules of engagement.

3. Find the right starting point and pace

or too difcult issues by taking a

stepwise approachIs there agreement there is an issue to discuss?

What is the issue? What are the decisions to be

taken? What needs to be understood better to

make those decisions? What are the decision-

making options? What are the pros and cons

of each? What factors should guide choice and

what weight should they have?

4. Maintain a productive perspective

Keep a business (not personal) focus; and keep a

long term and bigger picture perspective.

Focus on issues (not personalities) and ensure

everyone gets heard.

5. Act with emotional intelligence and

political awareness

Manage your own emotions; dont leave others

to guess your worthy intentions. Strive to

understand what is driving others' views. Ask

questions to gain understanding (rather than

trade dogmatic statements); facilitate progress

(e.g. how can we move on? What would help

us to clarify this? What are we trying to work

towards here?)

6. Leave the ZOUD beore leaving the room

Put the discussion and its value in perspective:why

it was important;the natural difculty felt;what s

been achieved by all and agree the next steps.

For urther inormation contact the author

at [email protected]

MF



9/17

by SanSenio

Business E


Managing

the Price FoodRising ood prices are a direct consequence o the global ood supply

keep pace with demand. The world needs a new green revolution wit

advances that can deliver higher yields and improved management pra

run large-scale hi-tech arms eectively.

of


10/17

Issues Concerns Challenges

Demand drivers

1. Substantial rise in the

worlds population

Annual global per capita grain

production has declined

Many developing countries

are struggling to meet their

populations demand for food

2. Nutrition transition as

per capita incomes rise

Global demand for meat and

dairy products rapidly rising

Continue upward pressure on

world food and grain prices

Supply challenges

3.The dependency of foodproduction on energy

Energy prices have risen andare expected to rise further

Rising production costs plusincreasing diversion of arable

land from food to biofuels

4. Severe limits on the area

of agricultural land

The per capita area of

cultivated agricultural land has

declined

Underlying productivity

growth particularly for grains

is slowing

5. Global supply of water

failing to match demand

Agriculture production heavily

dependent on fresh water

Agricultural trade to

compensate limited by failure

to reach WTO agreement

6. Stress of climate

change on agriculturalproduction

Identied as a cause of crop

losses in recent years

Will contribute to the more

rapid spread of crop andanimal disease

7. Rural populations

are declining as a

proportion

Global harvests already

dependent on migrant labour

Rising urban populations will

become reliant on a reduced

rural population for their food

As per capita incomes rise above

$2 a day, diets include more meat and

dairy products. The FAO expects

demand for meat in developing countries

to more than double by 2050 and this

will require a complementary increase in

the production of grain for animal feeds.

The situation outlined in Figure 2

is echoed in a 2009 study from the

Royal Society which argued that only

solutions underpinned by science and

technology are feasible. In essence,

the challenge is to greatly increase total

factor product ivity. That is, not only will

farmers have to signicantly increase the

output they get from each hectare of

land; but they will also have to achieve

this by using less water and energy per

unit of output.

The world needs a new greenrevolution with scientic advances that

can deliver higher yielding plant and

animal varieties while reducing demands

on the worlds resources. However

reliance on technology and in particular

biotechnology will not be sufcient.

Figure 3 shows how the value

inherent in new scientic knowledge

can only be captured if managerial

ability keeps pace.

Never has an industry cried out

more loudly for creative destruction;

namely, the replacement of large

numbers of small scale, badly managed

enterprises with fewer, larger scale

skilfully managed farms. That there

are enormous economies of scale in

farming is beyond dispute and the wide

range of yields, quality and unit costs in

all agricultural sectors testies to the

scope for improved efciency. Large

scale enterprises can afford and justify

higher levels of investment; they can

more easily spread risk; and deliver the

lowest unit production costs.

With so much dependent onmanagement, it is pertinent to ask why

farming is a neglected area in business

schools? Three reasons come to

mind. F irstly, in developed nations

agricultural policy is implicitly viewed

as a social policy.

High levels of support ha

of overriding market forc

protecting inefcient ent

critics soon nd they are

with politics rather than

Secondly, in the worlds

countries there are very

for farmers who would n

the land to make way fo

farms. Anyone advancing

structural change is at be

viewed as heartless. Thir

lacks the glamour of tran

organisations and higher

diversied products.

This neglect is a serious

Feeding the world is the

priority and the growing

for food will require muc

management skills in agr

is where business schoolimportant rol e to play. W

to offer in helping the wo

system adapt to this new

For urther inormation co


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Knowledge

TechnologyCaptured

investment incapital, new prosystems and re

managerial c

Added value larger scale ophigher produc

superior sta

Delivering a wide choice of low cost food andnon-food products via sustainable production

systems and supply chain collaborations

Biotechnology

Management

Figure 1: FAO Food Price Index

Figure 2: Seven challenges to global ood production

Source: UNs Food and Agriculture Organisation (FAO)

Source: Authors summary based on Chatham House report Food Futures:Rethinking UK Strategy

ood price ination in the

UK is currently 5%, just two

years on from peaking at

12.8%. The UNs Food and Agriculture

Organisations (FAO) benchmark

food price index (see Figure 1)

suggests 2007 was an indication of an

upward shift in global food prices and

the UNs Millennium Development

Goal to halve the proportion of

hungry people in the worlds poorest

countries by 2015 has suffered the

embarrassment of numbers continuing

to rise. These are not random events

- they reect a fundamental change

in global food markets. After a

generation in which the affordability of

food steadily improved, the trend has

now been reversed.

A recent report by Chatham House

(the Royal Institution of International

Affairs) on the future of food, opens

with the words: What we had

thought of as abundant food supply

is anything but the global system

as currently operated will reach

breaking point unless action is taken.

Higher food prices are a direct

consequence of global food supply

failing to keep pace with demand.

In developed countries this puts

stress on disposable incomes with

adverse effects for other sectors of

the economy. In developing countries

it threatens the pace of development

and in the worlds poorest countries

it results in hunger and malnutrition.

The challenges faced by the worlds

food system are summarised in

Figure 2. Many food experts believe

that the global demand for food willdouble over the next 40 years due

partly to the worlds population

rising to 9.2 billion; but primarily

because of rapid economic

development and its associated

reduction in poverty.

F The index weights the averagewholesale price of wheat, corn, rice,

oilseeds, dairy products and meat.

Figure 3: The importance o management



11/17

A


consumption levels

in these countries will

rise, causing a decline in

savings. This is likely to

cause further reductionin the availability of capital.

Finally, higher nancing costs will

reduce stock market valuations

thereby adversely affecting stock market

performance. These developments will

create serious managerial challenges in

the developed world. Businesses will

have to become smarter and more

innovative. The likely shortages in

availability of capital would mean that

managers will have to invest scarce

capital a lot more judiciously. Good

banking relationships will be a critical

success factor for gaining competitive

advantage as access to nance will

become increasingly difcult.

Technological innova tions

which have provided

competitive advantage in

the past will be another

key factor to remaining

competitive in the wake of

increased competition

from the emerging

economies.

For further information

contact the author at

[email protected]

s we enter a new decade, there

are a number of uncertainties

about the current status and

long term prospects of the global economy.

The International Monetary Fund (IMF)

estimates that the rate of growth in Europe

has been sluggish and the outlook for the

worlds largest economy, the US, remains

uncertain. The current and future state of

the global economy is largely attributed to

the credit crisis that ensued following the

sub-prime mortgage debacle in the US.

The toxic credit crisis then spread across

the Atlantic and now threatens the future

of the Euro. Europe, Greece and Ireland

are being helped through nancial packages

and there is concern that the market

pressure may also create a liquidity crisis

for Portugal and Spain. However, one must

question whether it is right to treat the

nancial crisis which has affected the

major developed western economies as

a global crisis.

MF

Although the nancial markets in the

emerging economies of China and India did

react to the adverse developments in the

US and Europe, these reactions were short-

lived. Both economies continue to grow at

their long term growth projections.

It is estimated that whilst Chinas GDP

will continue to grow by around 9%,

India will not be far behind with around

7.5% annual rate of growth for the

foreseeable future. In a recent study,

PricewaterhouseCoopers suggests that

the global nancial crisis has accelerated

the shift in economic power from the

developed to the developing economies.

If they continue to grow, the economic

output of the emerging markets of China,

India, Brazil, Russia, Mexico, Indonesia and

Turkey, the so-called E7, would overtake

that of the established G7 nations: US,

Japan, Germany, UK, France, Italy and

Canada by 2032.

These developments have major

implications for developed economies like

the UK. It is estimated that the UK exports

around 7% of its total exports to developing

economies. As the economic power shifts

to the emerging economies, unless the UK

increases its share of exports to developing

countries it will miss the opportunity

to be part of the growth. On the other

hand there are serious challenges for the

government and policy makers in emerging

economies. The higher rates of growth

coupled with higher rates of interest in

emerging economies, are already attracting

hot capital ows. This is putting upward

pressure on their currencies. Over the last

two years or so, most of the currencies of

developing countries have increased in value

signicantly against the US dollar. Brazil

provides a good case, where the Brazilian

Real has risen by nearly 40% against the

US dollar prompting the government to

actively intervene in the currency markets.

The Brazilian banks have been directed

to hold higher reserves against their

foreign exchange positions and

the tax rate on income earned

by foreign investors from Real

denominated bonds has been

doubled to 4%. Excessive liquidity

created by quantitative easing

pursued by developed economies

including the US and the UK has led

to spiralling commodity prices. Ination

rates in emerging economies have

increased and a steep increase in food

prices is posing a serious threat to policy

challenges and economic gains.

The nancial crisis has exposed the

hazards of excessive dependence on debt.

The credit crisis has provided signicant

insights into the short-sighted businesspractices of the nancial services industry

in general and the banking sector in

particular. Banks which generously

offered credit to nancial markets

and the corporate sector, have now

become highly risk averse. Furthermore,

the emerging economies of India and

China require huge investments in

water systems, transport, infrastructure,

housing and power generation. These

economies do not have high levels of

capital accumulation and therefore to

nance the growth, capital from other

parts of the world must ow to emerging

economies. These developments bring

signicant implications for businesses

in the developed economies. First

and foremost, availability of capital in

developed economies will be scarcer

as it will be directed to the growing

emerging economies. Consequently,

less supply of capital will lead to higher

costs and access to credit will be

increasingly challenging. Secondly, high

saving developing economies have been

an important source of capital for the

developed world for many decades.

However as these economies grow

and the standard of living improves,

GlobalPower

ShiftThe global fnancial crisis has accelerated theshit in economic power rom the developed

to the developing economies.

by Sunil PoshakwaleProessor o International Finance


12/17

by Dr Liz Lee-KelleySenior Lecturer

Programme and Project Management

ProjectManagers:

Lessons Learned?

roject management has shifted

from its traditional base in

industries such as aerospace,

engineering and construction to

become a core process across a variety

of sectors such as transport, IT and

pharmaceuticals. Companies that are

struggling to stay competitive, especially

in these difcult times, are turning

to project managements task-based

approach of getting things done

on-time and on budget. For many,

projects are now part of everyday

business life and most people will nd

themselves managing a project or

being part of a project team at some

point in their working life. The terms

project and programme have become

associated with company initiatives

of varying complexities ranging from

moving ofce to marketing the launch of

a new generation of products.

In the public sector, policy

implementation and the acquisition

and management of equipment and

services are managed as projects and

programmes. Yet year after year, the

National Audit Ofce (NAO) and Public

Accounts Committee, report huge

overruns in time and cost, bringing into

question not only project governance

but the governments ability to deliver

value for money. The media have

been quick to publicise the failure of

high prole projects such as the NHS

programme to digitise patient records.

Reported as one of the largest IT

programmes in the world at 6.2bn,

it was criticised for the lack of

stakeholder involvement and for being

severely delayed and overspent.

The failure of the Child Support

Agencys (CSA) new IT system, CS2,

was another highly publicised asco. It

launched in 2006 despite having known

critical defects. Three years later, the

NAO found more than 1,000 reported

problems, 400 of which appeared

insoluble. Vertex Data Science

Limited was recruited to try and

reduce the ba cklog of case s. The Work

and Pensions Committee estimated

the cost of managing the clerical cases

alone to be around 3.7m per month.

In both these cases, failure can be

attributed to a lack of transparency

and accountability, poor planning,

inadequate management information

and a breakdown in communication

with key contractors.

Projects and programmes are now

commonplace in both the private and

public sector. Large, more established

project-based organisations will

adopt methodologies that are aligned

with one of the professional bodies.

For government projects, specic

procedures or frameworks are

provided by the relevant government

agency or the Ofce of Government

Commerce. Many will also operate

their own centre of excellence

or academy to deliver project

management training and develop

their project staff.

The processes used in a

only one of a host of inte

external stresses and dem

project managers and the

to cope with. Closer exa

the problems that the N

CSA faced, reveals that p

context, structure, techn

stakeholder relational dy

economics, politics and e

all have a role in the proj

seems 21st century proje

is about the capacity for

performance in a messy,

uncertain world.

An observation from our

with professional institut

and public sector sponso

appreciation of the need

holistic approach to proje

and soft sides of project

are essentially two-sides

has been a notable shift i

accept that project mana

capability encompasses m

how to do projects. Effec

will have developed the c

ability to fathom and pro

the unintended conseque

accompany every decisio

new generation of manag

trained and supported, n

with people and processe

management may nally b

a profession.

For urther inormation con


P

MF


Companies that are struggling to stay competitive, especially

in these difcult times, are turning to project managements

task-based approach o getting things done on-time and

on budget.


13/17

he nancial crisis has

left many countries with

signicant national debt and

consequently public sector budgets are

under pressure. This is having a major

impact on the ability of governments

to deliver public services and so

governments are facing the question:

how can the availability and quality of

public services be maintained at the

same time as saving costs? Innovation

can play a key role in addressing this

question and this article focuses on

a particular form of innovation - new

partnerships between the public sectorand commercial organisations, which

we term commercialisation.

This article discusses how such

partnerships can be stimulated, and

the barriers that must be overcome to

achieve commercialisation.

T

Innovation is something that many governments strive to

support, in both the private and public sectors. By bridging

the two sectors and creating novel partnerships, public

sector expenditure can be reduced.

An important issue is the nature of

innovation in public sector organisations,

as this is often misunderstood. The

denition of innovation most frequently

used by the UK government is the

successful exploitation of new ideas,

but this is too generic to support

public sector organisations that want

to innovate. More clarity is needed.

There are of course different levels

of innovation, from incremental

(changes to existing services) to radical

(creating new services or completely

new ways of delivering services), and

transformational (innovation whichcompletely changes the way the system

works). Much of the innovation in the

UK public sector is incremental, for

example the improvement of service

delivery, or the reduction of costs

through outsourcing.

However, although incremental innovation

is important, it will be more radical

innovations that are needed to ease the

pressure on public sector budgets. Until

now, partnerships with the private sector

have mainly been based on nancial

initiatives but commercialisation opens up

new opportunities.

Commercialisation is different in that

it looks to combine the capabilities of

public and private partners in a unique

way that enables the generation of new

services (which neither partner could

develop alone), and in a way that therevenues are shared (allowing a nancial

advantage for the public sector). In our

research we have looked in detail at

how such successful partnerships arose

and the new services that resulted

(see Figure 1).

InnovateCollaborateto

In 2001 the Met Ofce started developing

a method to predict the level of demand

for healthcare, based on weather

conditions (for example, cold weather

makes certain respiratory conditions

much worse). A free-of-charge service

for hospital emergency departments was

launched that helped them predict the

changes in demand for their services.

However, when government funding ran

out and hospitals were asked to pay for the

service, the vast majority stopped using it.

A chance meeting at a 2006 conference

led to the Met Ofce starting discussions

with Medixine, a small Finnish tele-health

company. Working together, they created

an automated telephone system that

alerts at-risk patients of upcoming adverse

weather conditions, asks if they have

adequate medication, and advises them to

wrap up warm and stay indoors.

This service has proved a big success,

with around 40,000 patients now signed

up. Medixine market the service and

gain revenue for every patient they sign

up, which is shared with the Met Ofce.

In addition, the NHS benets from a

signicant reduction in costly hospital

admissions. The service demonstrates

that both public sector and

commercial partners can benet

from commercialisation.

Figure 1 - Met Ofce case studyby Keith Gofn

Professor of Innovation and New Product Development

Dr David BaxterSenior Research Fellow in Innovation

Dr Magnus SchoemanVisiting Fellow

Commercialisation holds

a number of projects, like

Ofce example, have sho

relationships with comm

can lead to signicant and

revenues. However, there

barriers to successful imp

To investigate these we c

a survey of UK civil serva

results showed that com

partnerships are perceive

servants to be of growing

However, the respondent

survey also perceived tha

conicts of interest, low

and a lack of experience

such relationships were h

public sector. In particular

that there was not enoug

available to public sector

how to make commercia

Innovation is something t

governments strive to su

both the private and publ

bridging the two sectors

novel partnerships, public

expenditure can be reduc

offers a real alternative to

public assets. It will rema

whether the government

most of this opportunity.

For urther inormation co

authors at k.gofn@cran

[email protected]



14/17

Howard Dickel, BTs Delivery Programme Director or London 2012, who

completed the Executive MSc in Programme and Project Management

at Cranfeld talks about how BT will deliver the world's largest sporting

event around the globe.

Alumni interview:Howard Dickel (MSc PPM 2010)

by Stephen Hoare

OlympicChallenge

icture the scene. It is the 2012 Olympic Games, a British athlete

is leading the feld in the mens 100 metre sprint. It is a dramaticmoment. Suddenly your TV screen goes blank as broadcasts around

the world lose sound and pictures. By the time normal service is

restored the race is over and you and millions o others will have

missed a historic moment when a world record has been smashed.

The scenario is BTs Delivery Programme Director or London

2012, Howard Dickels worst nightmare. He stresses: There is no

project more important to BT. In terms o the sheer visibility, political

importance and reputational damage to the brand i we get it wrong.

PAn



15/17

Combining internet protocol

telephony, with high speed bre

optic packet switching and wireless

networks, BTs communications

services are not necessarily

state-of-the-art, but use tried and

tried technology where reliability is

key. BTs remit is to provide xed and

mobile phone communications and

sound and pictures to and from the

main Olympic Park in London and 94

related venues across the UK.

Responsibility for ensuring

communications is aligned to clients

needs rests on Howards shoulders.

He and his team consult fully with

client representatives and with

technology partners like Atos

Origin, Omega, Cisco, Panasonic

and Acer before the technicalspecications are drawn up and

commissioning begins.

From April 2011until the start of the

Games in 2012,BT will be conducting

a series of dry runs to check systems.

In charge of stakeholder

relationships for BTs London 2012

delivery programme, Howard must

liaise closely with the London

Organising Committee of the

Olympic Games and Paralympic

Games (LOCOG), its chairman

Lord Coe, all venues for the Games,

international sports bodies and

the worlds press and broadcast

media. BT is tasked with installing

and operating the broadband and

wireless communications needed

to bring the Games to an estimated

5 billion viewers and listeners

around the world.

Well before London was chosen

to host the 2012 Games, BT was a

partner in the bidding process. BTs

technical capability was a crucial

factor underpinning Londons

bid and is a source of national

pride for BT and its staff. It was

unthinkable we would have the

Games without BT being involved.

As the Games ofcial

communications services partner,

BTs involvement has clearly dened

stages. Howard explains: We

will move through the design to

delivery phase to the operational

phase and then a close-down phase.

As BT gears up for the opening of

the Games on 27 July 2012, 800 BT

staff who Howard refers to as the

Squad will be temporarily assigned

to manage communications services

for the1

7 days of Olympic and12

days of Paralympic sporting events.

This includes the appointment of

112 venue telecoms managers.

The high visibility role is expected

to propel peoples careers like

athletes from the starting blocks.

The test events, some held in private,

some high prole, like the three

day gymnastics contest at which 15

countries will participate at the O2

Arena in January 2012, may expose

technical glitches which can then

be xed ahead of time. The 100

metre race takes just over nine

seconds. A three second outage right

in the middle of the race would be

unthinkable. Our operation is mission

critical in every respect, says Howard.

Following an exhaustive risk

assessment, BT has installed resilient

high speed broadband cables to

serve the Olympic Park, each routed

independently around London. There

is also back-up services within the

venues themselves.

Appointed in 2008 specically to play

a key role in the Olympic delivery

programme, Howard was sent by his

employers to study the behind-the-

scenes technology at the Beijing Games

and the Vancouver Winter Olympics.

BT has tried hard to draw on the

accumulated wisdom from companies

involved in previous Games. They

sponsored Howard through

Cranelds part-time executive

MSc in programme and project

management. He says: Theres a

huge amount of pride within BT and

a determination to get things right. I

thoroughly enjoyed the three years I

spent at Craneld and I did my thesis

on the transfer of knowledge from

one Olympic Games to the next.

From his ofce on the 37th oor of

a Canary Wharf ofce block, Howard

points out of the window at an

adjacent high rise building: Thats

Lord Coes ofce. LOCOG have

got three sets of ofces all within

a few minutes walk. Face to facemeetings are the best way of getting

things done.

Howard takes the pressures of the

job in his stride and says half jokingly:

I have everyone from the CEO

downwards marking my homework

on a regular basis. Performance

management involves quarterly

review meetings with BTs chief

nance ofcer, regular meetings with

operational management as well as six

monthly audits.

So what management lessons can be

learned from Howards leadership

experience? In charge of a business

unit focusing on client delivery, he

manages a current team of150

with a dozen direct reports. It is a

level of leadership akin to running a

medium sized company and it is the

entrepreneurial nature of the job that

Howard loves the most:

There are few roles where you

have such a connection with the

customer. It keeps you focused onthe real world.

Howard is at heart a programme

manager whose skill is in delivering

many intertwined projects all coming

together at once.

He does not profess t

technical or technolog

He makes his expecta

clear: Ive hand picked

my team especially the

management roles. I h

deliberately avoided a

structure. If there is so

the relevant knowledg

below me, I let them l

particular situation.

Howard says he can app

at times: Its not such a

show a bit of passion. H

never been involved in a

there has been such a d

emotional connection w

Many of them tell me th

interesting project theyv

on. You just cant put a pkind of commitment.

Ive never been involved in a project where there

has been such a direct and emotional connection with t

people. Many of them tell me this is the most interesting

project theyve ever worked on. You just cant put a pric

that kind of commitment.



16/17


17/17

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Management Focus Issue 30

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Transcript of Management Focus Issue 30