1. From Silos to Synergy—Harnessing the Organization
Chapter Fifteen
From Silos to Synergy—Harnessing the Organization
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Chapter 15 - Organizational Issues

2. Strategic Market Management 7th Edition – David Aaker
The Silo World
Product Silos
Country Silos
Functional Silos
HDTV
Copiers US
France
Sales
Advertising
Projectors
Medical Imaging
Far East
Africa
Sponsorship
Digital
Chapter 15 - Organizational Issues

3. Strategic Market Management 7th Edition – David Aaker
Silo-Driven Problems
Misallocation of marketing resources
Silo-spanning brands lack clarity & linkage
Silo-spanning offerings & programs are missed or mishandled
Marketing management competence is diffused
Success is not leveraged across silos
Communication and cooperation weak
Chapter 15 - Organizational Issues

4. A Framework for Analyzing Organizations
People Structure
Systems Culture
External Analysis
Strategy
Internal Analysis
Performance
Chapter 15 - Organizational Issues
Figure 15.2

5. Obtaining Information about Organizational Components
Structure
What is the organization’s structure? How decentralized is it?
What are the lines of authority and communication?
What are the roles of task forces, committees, organizations, or similar mechanisms?
Chapter 15 - Organizational Issues
Figure 15.3

6. Obtaining Information about Organizational Components
Systems
How are budgets set?
What is the nature of the planning system?
What are the key measures used to evaluate performance?
How does the accounting system work?
How do product and information flow?
Chapter 15 - Organizational Issues
Figure 15.3

7. Obtaining Information about Organizational Components
People
What are the skills, knowledge, and experience of the firm’s employees?
What is their depth and quality?
What are the employees’ expectations?
What are their attitudes toward the firm and their jobs?
Chapter 15 - Organizational Issues
Figure 15.3

8. Organizational Culture
Shared
Values
Norms of Behavior
Organizational
Culture
Symbols and
Symbolic Action
Chapter 15 - Organizational Issues
Figure 15.3

9. Obtaining Information about Organizational Components
Culture
Are there shared values that are visible and accepted?
What are these shared values and how are they communicated?
What are the norms of behavior?
What are the significant symbols and symbolic activities?
What is the dominant management style?
How is conflict resolved?
Chapter 15 - Organizational Issues
Figure 15.3

10. Silo Spanning Objectives
Strategic Market Management 7th Edition – David Aaker
Silo Spanning Objectives
Dysfunctional objectives
Centralize
Standardize
Reduce the number of divisions or agencies
Appropriate objectives — to improve
Silo-spanning programs & offerings
Brand consistency & linkage
Resource allocation
Marketing competence
Communication & cooperation
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11. The CMO—On Getting Traction
Get the CEO on Board
Get the right people
Cross-silo teams
Get easy wins
Be facilitator/consultant
Engage the business units
Deliver excellence
Balance central opportunities with local needs
Chapter 15 - Organizational Issues

12. Overview of Strategic Market Management
Chapter 15 - Organizational Issues

13. Strategic Market Management 7th Edition – David Aaker
A Business Strategy
Where to Compete
The product-market investment decision
A Business Strategy
How to Compete
Value Assets & Function area
proposition competencies strategies and programs
Chapter 15 - Organizational Issues

14. Overview of Strategic Market Management
External Analysis
Customer Analysis
Competitor Analysis
Market/submarket Analysis
Environmental Analysis
Internal Analysis
Performance Analysis
Determinants of strategic options
Strategic Analysis Outputs
Strategy Identification, Selection, and Implementation
Chapter 15 - Organizational Issues

15. Strategy Development: A Discussion Agenda
Customer Analysis
Who are the major segments?
What are their motivations and unmet needs?
Chapter 15 - Organizational Issues
Figure 15.5

16. Strategy Development: A Discussion Agenda
Competitor Analysis
Who are the existing and potential competitors?
What strategic groups can be identified?
What are their sales, share, and profits?
What are the growth trends?
What are their strengths, weaknesses, and strategies?
Chapter 15 - Organizational Issues
Figure 15.5

17. Strategy Development: A Discussion Agenda
Market Analysis
How attractive is the market or industry and its submarkets?
What are the forces reducing profitability in the market, entry and exist barriers, growth projections, cost structures, and profitability prospects?
What are the alternative distribution channels
and their relative strengths?
What industry trends are significant to strategy?
What are the current and future key success factors?
Chapter 15 - Organizational Issues
Figure 15.5

18. Strategy Development: A Discussion Agenda
Environmental Analysis
What environmental threats, opportunities,
and trends exist?
What are the major strategic uncertainties
and information need areas?
What scenarios can be conceived?
Chapter 15 - Organizational Issues
Figure 15.5

19. Strategy Development: A Discussion Agenda
Internal Analysis
What are our costs, strategy, performance, points of
differentiation, strengths, weaknesses, strategic problems
and culture?
What is our existing business portfolio?
What has been our level of investment in our various
product markets?
Chapter 15 - Organizational Issues
Figure 15.5

20. Strategy Development: A Discussion Agenda
Product market investment—exit, milk, maintain, grow/enter
What assets and competencies will provide the basis for an SCA? How can they be developed and maintained? How can they be leveraged?
Chapter 15 - Organizational Issues
Figure 15.5

21. Strategy Development: A Discussion Agenda
Product market investment—exit, milk, maintain, grow/enter
What assets and competencies? How can they be developed, maintained, leveraged?
What value proposition?
What functional strategies?
Chapter 15 - Organizational Issues
Figure 15.5

22. Strategy Development: A Discussion Agenda
Customer Analysis
Who are the major segments?
What are their motivations and unmet needs?
Chapter 15 - Organizational Issues
Figure 16.5

23. Strategy Development: A Discussion Agenda
Customer Analysis
Who are the major segments?
What are their motivations and unmet needs?
Chapter 15 - Organizational Issues
Figure 16.5

24. Strategy Development: A Discussion Agenda
Competitor Analysis
Who are the existing and potential competitors?
What strategic groups can be identified?
What are their sales, share, and profits?
What are the growth trends?
What are their strengths, weaknesses, and strategies?
Chapter 15 - Organizational Issues
Figure 16.5

25. Strategy Development: A Discussion Agenda
Market Analysis
How attractive is the market or industry and its submarkets?
What are the forces reducing profitability in the market,
entry and exist barriers, growth projections,
cost structures, and profitability prospects?
What are the alternative distribution channels
and their relative strengths?
What industry trends are significant to strategy?
What are the current and future key success factors?
Chapter 15 - Organizational Issues
Figure 16.5

26. Strategy Development: A Discussion Agenda
Environmental Analysis
What environmental threats, opportunities,
and trends exist?
What are the major strategic uncertainties
and information need areas?
What scenarios can be conceived?
Chapter 15 - Organizational Issues
Figure 16.5

27. Strategy Development: A Discussion Agenda
Internal Analysis
What are our costs, strategy, performance, points of
differentiation, strengths, weaknesses, strategic problems
and culture?
What is our existing business portfolio?
What has been our level of investment in our various
product markets?
Chapter 15 - Organizational Issues
Figure 16.5

28. Strategy Development: A Discussion Agenda
Product market investment—exit, milk, maintain, grow/enter
What assets and competencies will provide the basis for an SCA? How can they be developed and maintained? How can they be leveraged?
Chapter 15 - Organizational Issues

29. Strategy Development: A Discussion Agenda
Product market investment—exit, milk, maintain, grow/enter
What assets and competencies? How can they be developed, maintained, leveraged?
What value proposition?
What functional strategies?
Chapter 15 - Organizational Issues

30. Growth Strategies Energize the business Leverage the business
Enter new business product/markets
Go Global

31. Why Strategic Market Management?
Strategic Market Management 7th Edition – David Aaker
Why Strategic Market Management?
Precipitate the consideration of strategic choices.
Help a business cope with change.
Force a long-range view.
Make visible the resource allocation decision.
Aid strategic analysis and decision making.
Provide a strategic management and control system.
Provide both horizontal and vertical communication and coordination systems.
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32. Key Learnings
The organizational levers are structure, systems, people, and culture. Each must be congruent and support the business strategy.
Decentralization with powerful silo groups can inhibit synergy and efficiency. For marketing, it leads to misallocation of resources, confused brands, inhibited cross-silo offerings and programs, weak marketing staffs, the failure to leverage success, and inadequate cooperation and communication.
In dealing with the problem CMOs should consider nonthreatening roles such as facilitator or consultant and should do not have as an objective to centralize and standardize.
The organizational structure lever provides the option to centralize selectivity, use teams and networks, use matrix reporting structures, and to employ a virtual organization.
Chapter 15 - Organizational Issues

33. Key Learnings
Management systems involves the information, measurement and reward, and planning systems that can all promote cooperation and communication.
People on the CMO team, who can be sources internally or externally, need to be knowledgeable and marketing, brands, markets, products, and the organization in addition to being strategic and serving as change agents.
Culture involves shared values, norms of behavior and symbols and symbolic action. The CEO is a key drive of strategy and it is important to get him or her on board. The fit between components is illustrated by the hit-industry topology, which contrasts the functions of drillers (who develop products), pumpers (who focus on production), and distributors (who specialize in marketing and distribution).
Chapter 15 - Organizational Issues

34. Ancillary Slides
Chapter 15 - Organizational Issues

35. “All progress is initiated by challenging current conceptions and executed by supplanting existing institutions.”
- George Bernard Shaw
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36. “Structure follows strategy.”
- Alfred Chandler, Jr.
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37. “Those that implement the plans must make the plans.”
- Patrick Hagerty,
Texas Instruments
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38. “There is nothing more requisite in business than dispatch.”
- John Addison
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39. “This report, by its very length, defends itself against the risk of being read.”
- Winston Churchill
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40. “If I had to sum up in one word what makes a good manager, I’d say decisiveness. You can use the fanciest computers to gather the numbers, but in the end you have to set a timetable and act.”
- Lee Iacocca
Chapter 15 - Organizational Issues