Strategies for a new millennium презентация

Thinking
Knowledge and Learning
New Organizational Forms

OUTLINE

for shareholder value
Adjusting to turbulence

Major influences on strategy :
Resources, capabilities, and “core competences”
Dynamic aspects of competition ---game theory, Schumpetarian competition
Competitive advantage through networks, standard, & bandwagons
Modern financial analysis---shareholder value, economic profit, option theory

Outcomes :
Cost cutting : Shift to dynamic sources of efficiency
Refocusing on performance management and performance incentives

largely exhausted
Need to access new sources of profitability

IMPLICATIONS :
Emphasis on more complex sources of competitive advantage requires development of architectural or meta capabilities
Emphasis on learning
Need for new organizational forms e.g. interest in self-organization

identify knowledge with the firm ---- role of knowledge audits, competency modeling, knowledge libraries, identification of best practices
Need to transfer knowledge
Critical distinction between tacit and explicit knowledge
Need to transform tacit into explicit knowledge
Design of organization structure to optimize knowledge use location of knowledge and decision making; knowledge integration through teams; modular structures
KNOWLEDGE CREATION
Traditional view knowledge created through research
Nonaka Knowledge creation through knowledge conversion (explicit tacit; individual firm

process
- competence building process
- renewal process

Parallel structures separate structures of separate management processes e.g. 3M, TQM, change management process

Project-based organization engineering cos., consulting cos., also manufacturing cos. e.g. Oticon

Network and Virtual Organization the boundaryless corporation e.g. Sun Microsystems, Cisco Systems, Italian clothing manufacturers

ORGANIZATIONS

The ability to:
build confidence
build enthusiasm
cooperate
deliver results
form networks
influence others
use information

THE REQUIRED
COMPETENCIES OF
BUSINESS LEADERS

business literacy
creativity
cross-cultural
effectiveness
empathy
flexibility
proactivity
problem-solving
relation-building
teamwork
vision

in their industry environments?

Key premise is that all business environments are in a state of change.
Many managers are unable to see industry changes or to appreciate the impact of those changes on their industry.

fail to anticipate or adequately respond to change for three reasons:
They simply fail to notice the changes.
Managers can be aware of changes, but they fail to interpret these changes correctly.
Even if some managers notice the changes and they interpret them correctly, they might still fail to adopt an appropriate course of action.

data.

Limits in organizational action.

limit organizational adaptation and change.

Firms that only use lower-level learning are vulnerable to being blindsided by new rivals, technologies, and products.

or refinements of existing beliefs, understandings, and organizational processes.

Higher-level learning
Developing totally new beliefs, understandings, and organizational processes.

fall into “competency traps.”
Unfortunately, most firms allocate more resources to lower-level learning.

of higher-level learning:
Higher-level learning is most likely to result from problemistic search.
Second factor which is important to success of higher-level learning is absorptive capacity.

of like-minded thinking in at least two ways.
Give greater attention to “contrarian voices.”
Encourage greater turnover among top management ranks.

limiting organizational change.
Industry norms and standards (the so-called “common body of knowledge”) can blind managers to new opportunities, technologies, and potential competitors.

responsiveness of managers to industry changes:
Problems associated with noticing, interpreting, and responding to changes.
Tendency for managers to emphasize low-level learning over high-level learning.
Tendency for organizational hiring and promotion practices to foster homogeneity in managerial thinking.
Power of institutionalized industry practices.

to be done now to maximize future performance.
Provide opportunities for managers to question basic assumptions underlying their firms’ strategies.

to acknowledge the emerging nature of much strategic activity.
Too often planning relies on regression-based forecasting procedures which merely extend present trends into the future.
Strategic planning process typically produces “point estimates” rather than a range of possible outcomes.

for evaluating the performance of management personnel.
Incentives often awarded to executives for “meeting the plan.”

firms are going to formulate and implement strategic change successfully.
It’s unlikely that managers will simply embrace or welcome change.
Therefore, managers must institutionalize change.