1. ORGANIZATION MANAGEMENT BA 550 John Sloan

2. Introduction – John Sloan Fourth year on the OSU Faculty, teaching BA 357, BA 462, and BA 550 28 years of operations / project management experience with Hewlett-Packard:  Different geographical locations  Different product lines  Different functional responsibilities  International experience  Experience teaching in a business environment BA Mathematics, 4 years USAF, MBA

3. Introductions Name Undergraduate degree and where/when Business/other experience What do you want to be doing in 5 years? IBP – describe business plan and your assessment of it

4. Formal Course Description Organization-wide implementation issues Driven by change Balanced view of organizational design:  Structural  Human

5. Course Description - restated How do you get an organization’s members collectively do what you need them to do (assume you are in charge)  Old tasks  New tasks Obtain cooperation from extended team Understand the impact of organizational design Achieve high performance of desired tasks and employee satisfaction Driven by change

6. Course Description – Is / Is Not Organizational Behavior Strategic Planning Lecture, Textbook, Multiple-choice testing Deterministic / objective IS NOT IS Understanding the effects of the organizational structure and culture on business performance Implementation planning  Actions and owners  Metrics and control plans  Leadership Lecture / discussion / examples (yours and mine), HBR articles, HBR cases and term project Judgment / subjective

7. Course Objectives Identify and explore various aspects of organization design related to implementing strategic plans Learn about diverse, practical approaches to making strategy happen and how to resolve implementation issues  Structured planning  Measurement and control systems  Leadership

8. Some Applications Organization-wide change  Strategy, e.g. from an airline to a travel-related company  Culture, e.g. from a product-oriented to a customer-oriented company Change/improvement required by latest annual plan Strategic project, e.g. launch a major new product, integrate an acquired company New venture / start-up

9. Date Topics Reading Assignment 4/03/2006 Introductions Syllabus review 1. Introduction to Organization Management 4/10 2. Organization Design – 7–S Model Case discussion Executing Change: Seven Key Considerations What Leaders Really Do Managing Your Boss Microsoft Vega case 4/17 3. Structured Planning – Hoshin Planning Case discussion Turning Great Strategy into Great Performance Governance and Strategy Implementation Americhem case 4/24 4. Managing Organizational Change Case discussion Framing for Learning – Tech Implementation How to Get Aboard a Major Change Effort Johnsonville case 5/01 5. Leadership Case discussion Why Should Anyone Be Led by You? Leadership That Gets Results Tipping Point Leadership Silvio Napoli case 5/08 Guest speaker – Bill Buskirk Case discussion Allentown case 5/15 6. Improving Work Performance Guest speaker – Dave Snider. Let’s Hear It for B Players In Praise of Middle Managers 5/22 Term project presentations 5/29 Holiday – Memorial Day 6/05 Term project presentations

10. “House Rules” Be prepared to respond and share comments with others Listen to others; ask for clarification if necessary Feel free to question my opinions; I do not necessarily know it all Help keep distractions to a minimum: arrive on time, electronics on mute The printed class schedule may change

11. Course Grading Participation / discussion 20% of grade (100/500) Case briefs 50% of grade (50 + 100 + 100 = 250/500) Term project (written and presented) 30% of grade (125 + 25 = 150/500)

12. Case Briefs We will discuss 5 HBR cases in class You will be required to individually submit 3 case briefs (MS Vega + 2 others) See BA 550 Case Briefs.ppt in the public folder Last names beginning with A – M Cases 1, 2 and 4 Last names beginning with N – Z Cases 1, 3, and 5

13. Case Briefs Problem statement / Background  Briefly set the context for the case  Raise the major question(s) to be addressed  Separate symptoms from problems Possible Solutions / Responses (optional)  State alternatives considered  Criteria for selection Recommended Solution and its Implementation  Who  What  When

14. Case Briefs - continued One page maximum – no title page Typed – no smaller than 10 font Regular fonts – Arial or Times New Roman Writing quality Read the case instructions (BA 550 Case – XYZ.ppt in the public folder)

15. Case Briefs – Writing Quality Ideas and content Writing is clear, focused, interesting, and compelling. Main ideas stand out and are supported. Organization The organization strengthens and clarifies the main ideas. The order and structure help the audience understand the material. Smooth transitions among ideas, sentences, and paragraphs. Strong introduction to engage the audience. Well-designed conclusion. Sentence fluency and conventions Writing has an effective flow with strong control over sentence structure (no run-ons or fragments, consistent verb tense, parallel structure, etc.). Proper spelling, capitalization, grammar, and punctuation.

16. Case Briefs - Grading Characterization of the problem(s) Conclusions supported Solution workable/practical Writing quality Class discussion

17. Term Project This is a group assignment IBP teams to carve out relevant pieces of your business plan, presenting the implementation plan and supporting organizational design. Non-IBP people to form teams of 3-5. Select a topic in implementation or managing change in organizations – present the implementation plan and supporting organizational design. See BA 550 Term Project.ppt in the public folder

18. Term Project – Non-IBP Examples Reviving United Airlines Closure of Gateway’s retail stores Sirikrai Company merger Credit Union system conversion Centralizing OSU’s conference operations

19. Term Project A PowerPoint presentation including:  Context  Implementation plan for one or two major strategies (the Hoshin planning model is one approach – any logical structure will work). Include performance measures and review process.  Organizational design supporting the strategy implementation (the “five circle” model is one approach – use another model if you prefer). In-class presentation

20. Term Project – Presentation/Delivery The speaker’s eye contact helps the audience pay attention Speech is clear and easy to understand. Language is memorable Voice patterns (tone, inflections, volume, pace) emphasize main points and increase interest in the message Nonverbal techniques (facial expressions, gestures, body movements and stage presence) help convey message with energy and enthusiasm Fluent delivery – infrequent fillers (uh, like, and)

21. Term Project - Grading Context (25 points possible) Implementation plan (50 points possible) Organizational design (50 points possible) Presentation (25 points possible – individually graded) Team grade

22. ORGANIZATION MANAGEMENT Introduction to Organization Management

23. Differences in Strategy Implementation Situational differences:  Organizational culture  Magnitude / impact of the change  Urgency of change  Capability of organization to react  Cooperation of key personnel

24. Differences in Strategy Implementation - 2 Individual differences:  Ability of the manager / leader  Personal values of the manager / leader  Personality of the manager / leader  Personal “life” issues at that time

25. Differences in Strategy Implementation - 3 Situational differences Individual differences... your mileage may vary

26. FIGURE 1.1 The Main Components of the Strategic Planning Process

27. FIGURE 4.8 Strategy and Competitive Advantage The relationship between strategies and resources and capabilities:

28. Intended and Emergent Strategies Source: Reprinted from “Strategy Formation in an Adhocracy,” by Henry Mintzberg and Alexandra McGugh, published in Administrative Science Quarterly, Vol. 30, No. 2, June 1985, by permission of Administrative Science Quarterly.

29. Organizational Structure, Systems, Processes, and Culture Organizational Design Process Strategic Management Process From Galbraith and Kazanjian “Strategy Implementation: Structure, Systems and Process”

30. Organizational Design Variables From Galbraith and Kazanjian “Strategy Implementation: Structure, Systems and Process”

31. Organizational Design Variables From Galbraith and Kazanjian “Strategy Implementation: Structure, Systems and Process”

32. Strategy is the fundamental pattern of present and planned resource deployments and environmental interactions that indicate how the organization will achieve its objectives Strategic Planning

33. Environmental scanning (anticipate or understand change pressures) Normative planning or vision/mission Strategic Planning: mission and objectives Strategy Implementation: programs and projects to achieve objectives Strategic Control: performance measures to determine whether objectives are achieved

34. Environmental Scanning (some examples) Long-range scenarios Economic forecasts Estimates of market size and growth Industry/Competitor analysis Forecast of customer requirements

35. Vision/Mission Defines the business Defines position relative to expected situation in the market place Written vision statements  Sometimes a product of serendipity  More often a result of painful collective effort

36. Goals and Objectives Goals/objectives are used interchangeably Notion of a cascade of goals and objectives  Broad corporate goals: overall profits, growth  More specific functional objectives: market share, revenue by product  Unit-level objectives that support functional objectives

37. Strategy Implementation “Programs and projects” define specific action/steps necessary to achieve mission and objectives, e.g.  launch product x by June 1  increase creativity in product design  improve outgoing product quality  improve IT capability  reduce attrition rate in sales force  improve morale Structural and human resource planning usually included

38. FIGURE 4.8 Strategic Control Systems Steps in designing an effective control system

39. Strategic Planning in Practice Planning ritual varies across companies  Driven from the top or some Corporate Planning unit close to the top  Ends in a 1-5 year rolling plan, programs/projects, and budget Budgets get monitored, programs and projects are reviewed, plans are (sometimes) updated, assumptions invariably forgotten Actual strategy can be fluid and clear only among top management or major decision- makers

40. Assignment Read BA 550 class packet:  Executing Change: Seven Key Considerations  What Leaders Really Do  Managing Your Boss Case brief – Microsoft Vega Complete proposal on term project