1. CHAPTER 7 STRATEGIC ASSET MANAGEMENT

2. Infrastructure Assets

3. These include positive organizational features like: Structure Management Philosophy Organizational Culture High Involvement Practices Quality Standards Technology

4. Comparative Assets

5. Possession of infrastructure assets brings about a comparative advantage to organizations

6. Comparative Assets Possession of infrastructure assets brings about a comparative advantage to organizations

7. Strategic Asset Management (from Figure 7.1) Intellectual Property Ownership Assets Human Resources Assets Market Assets Infrastructure AssetsComparative Advantage Dominance Leverage Monopoly

8. Infrastructure AssetsComparative Advantages Lean organizational structure Organizational cultures vary in every organization -Elimination of bureaucracy -Job tasks/project are completed faster -Faster delivery -Productivity is improved Creates infrastructure advantages

9. Infrastructure AssetsComparative Advantages Managerial and functional work practices typified by high involvement Technology, being the application of knowledge, is broad in scope and perspective Organization inevitably possesses intellectual capital (competitiveness) Informational technology bring about radical transformations in the global skyline

10. Asset Management Strategies

11. Asset Management Strategies Considered as pillars of effective competitive asset management, three (3) distinct but interrelated approaches are presented…

12. Competency Learning Competitive Innovation Strategic Enhancement Facets of Asset Management (from Figure 7.2) Asset Management Strategies

13. COMPETENCY LEARNING “Laying the Groundwork”

14. Competency Learning: “Laying the Groundwork” Competency refers to knowledge, attitudes, and skills expected of an individual in carrying out his job tasks. It is aligned to the organization’s vision- mission. It is a necessary tool for the actualization of organizational plans and the implementation of strategies.

15. Competency Learning: “Laying the Groundwork” Examples of competencies: 1.Business orientation 2.Commitment to excellence 3.Analytical thinking 4.Presentation 5.Decision-making skills

16. Competency Learning: “Laying the Groundwork” Each job competency has to be correctly identified, clearly defined, and fully explained. Precise and clear job descriptions result in the following benefits: Provide employees a performance framework with respect to requisite knowledge, skills, and attitudes.

17. Competency Learning: “Laying the Groundwork” Assure management that employees performing definite job tasks possess the necessary competencies Streamline organizational management in terms of ill-equipped employees, redundancy, low productivity, and cost-related wastes related to inefficiency and ineffectiveness

18. Competency Learning: “Laying the Groundwork” Serve as bases for evaluating work output for reward and promotion purposes, monetary, or otherwise Provide the blueprint for preparing and conducting recruitment, selection, hiring, and training development programs

19. Competency Learning: “Laying the Groundwork” Allow young people possessing competencies to move up the corporate ladder faster than those who are inept and deficient

20. Competency Learning: “Laying the Groundwork” To attain a high level of organizational success, these people must possess competencies that are aligned and consistent with their respective job descriptions. Required competencies vary with respect to classification, ranking, and level of mastery:

21. Core Functional Managerial Classifications of Competencies (from Figure 7.3)

22. Competency Learning: “Laying the Groundwork” Classifications of competencies include core, functional, and managerial: 1. Core competencies- include all fundamental competencies expected of every employee. They are minimum requirements set by the organization. (ex. integrity)

23. Competency Learning: “Laying the Groundwork” 2. Functional competencies- are expected of employees performing job descriptions in: Marketing, Production, HR, Technology, and Finance. 3. Managerial competencies- administrative and attitudinal in nature. (POSDC)

24. STRATEGIC ENHANCEMENT “Widening the Horizon”

25. Strategic Enhancement: “Widening the Horizon” There are different ways in strategically enhancing an organizational memory-based system. They are the following: 1.Maximize the reach of the organization’s infrastructure technology 2.Corporate entities need to appreciate the business value of knowledge, information, and communication technology.

26. Strategic Enhancement: “Widening the Horizon” 3. Continuously conduct formal and informal types of training 4. Systematize a process of enriching job pathing of employees beginning from bring starters with zero or negligible knowledge to becoming learners through supervised apprenticeship

27. Strategic Enhancement: “Widening the Horizon” 5. Empower employees to reach sustainable self- development by promoting valuable knowledge 6. Interact with experts who have proven their worth and expertise in their specialized fields. 7. Prepare programs for employees leading to attitudinal change

28. Strategic Enhancement: “Widening the Horizon” 8. Provide access to needed resources 9. Broaden networking through strategic alliances, which can come from within and from the outside 10. Analyze cultures

29. COMPETITIVE INNOVATION “Creating Bargaining Power”

30. Competitive Innovation: “Creating Bargaining Power” Innovation may refer to any of the following: 1.Creating, conceptualizing, or inventing new ideas 2.Bringing a paradigm shift from the usual conservative mindset to that of openness… 3.Revolutionizing a synergetic outlook

31. INNOVATION SCENARIOS 1. Differentiating existing products and services 2. Reinventing products and services 3. Continuously experimenting 4. Applying recent and technologies in information

32. INNOVATION SCENARIOS 5. Changing business models 6. Creating new products and services to “futurize” the organization 7. Widening the breadth and depth of intellectual capital