B207 TMA03 BLOCK 3 "LONG TERM SUCCESS"
Week 23
Week 20
(A) Putting your idea in time - short-term and long-term success
(B) Putting your idea in context - the politics of business
Week 21
(A) what is a 'value player' and how do you become one?
(B) Introducing employment relations
Week 22
(A) Opportunities and challenges of employment relations
(B) Change management
(A) Accounting for values - creating value in the long term
(B) Accounting for values - a broader perspective
Week 24
(A) Quality and improvement
(B) Operational risk
Week 25
(A) Marketing in the long-term - relationship marketing
(B) Marketing in the long-term - managing crises and measuring success
Week 26
(A) Leadership and management
(B) Leadership and motivation
1.1 Time and innovation
1.2 planning for short, medium and long-term success
1.3 The cycles of innovation
1.4 Fostering a sustainable innovation culture
2.1 The politics of business and management
2.2 Political astuteness skills
2.3 Sharing your political astuteness experiences
3.1 What does value mean?
3.2 Organisation and value
3.3 Innovation strategies for creating value
3.4 Becoming a value player
4.1 Introducing employment relations
4.2 What are twenty-first century employment relations?
4.3 Toward inclusive and participatory employment relations
5.1 The empowerment era
5.2 From employment to employability
5.3 New challenges, new opportunities
6.1 The need for change
6.2 What is change management?
6.3 Constructively engaging with resistance to change
6.4 Creating sustainable transformation
7.1 Shareholder value
7.2 Measuring issues
7.3 Measurement choices
7.4 The problem with historical cost accounting
8.1 Creating shared value
8.2 The ecosystem of shared value
9.1 Why is quality important?
9.2 How can quality be managed?
9.3 Perceptions-based quality models
9.4 The evolution of continuous improvement
9.5 Strategic improvement
10.1 What is operational risk?
10.2 Assessing risk
10.3 Operational resilience
10.4 Managing operational risk
11.1 Relationship marketing
12.1 Preparing for organisational threats and improvement
12.2 Crisis management
12.3 Measuring success
13.1 What is leadership?
13.2 Identifying leadership
13.3 Training for leadership
13.4 What makes for good leadership?
14.1 Leadership and motivation
14.2 Motivational theories
14.3 Culture in relation to leadership
14.4 Gender and leadership
short and long term innovation strategies
Business incubators
Start-up accelerators
For profit
takes small equity in businesses they support
provide co-working space for mentoring/education
ventures procured from anywhere
non-profit (usually linked to a university)
provide office space, below market rate
work mostly with local community businesses
dont usually take equity
not only one time frame for innovation
3 main time frames for innovation (short, medium, long term)
short term
medium term
long term
often extension of existing ideasc
lear aims
quick value returns focus
often a relaunch/ recreation of product/process
could be new to market/culture
higher investment/resources required
higher success failure risk
often new ideas
strong commitment required
sustainable investment required
high risk
potentially high reward
AI
Innovation consequences can impact all 3 time frames
Short term consequences: new products like amazon echo
Medium term consequence= smart houses and office space
Long term consequences = mostly automated society
innovation time frames can be cyclical e.g. one innovation creates the opportunity for another innovation
Business cycles
product cycle
long waves of economics
virtuous cycles
vicious cycles
"Creative Destruction" - Joseph Schumpeter
the process of getting rid of the old to allow for the new. This is disruptive and can be thought of negatively
can lead to systematic cycles of economic instability and deprivation
Markets hindering innovation
when profit is still most important
if current products are making a profit there is less desire to innovate new
markets are so competitive it leaves little time to innovate
Long-term sustainable innovation culture
24/7 capitalism
rates of market turnover and the amount of time necessary to bring an idea into fruition
Reading 4: The politics of business and management
different political contexts eg societal and organisational
Political analysis including stakeholder analysis
The power VS interest matrix
managing within the political context
Hartley and Fletchers political astuteness framework
OU summary
organisational power dynamics
competing values and interests
the importance of analysing political games
the soft skill of political astuteness.
Political astuteness framework
the estimated worth of something
defined by the objects cultural context
organisations need to continually create value to remain successful
value creation for the consumer and internal business functions
what is considered valuable is different for each stake holder
organisations must satisfy all stakeholders value and create short term and long term value creation
some companies are choosing to create value by supporting social issues ahead of shorter term profit eg buy a shoe give a shoe intiative
value organisational culture
involves encouraging all organisational members to identify existing issues and work collaboratively to find ways to resolve them.
nurture employee creativity
the innovation value chain
institutional entrepreneurs
value-oriented workforce and new idea oriented leaders
identifying areas of an organisation or society that require greater value and finding innovative means for meeting these needs. It also entails critically reflecting on one’s specific strengths in order to see how they can best produce value both individually and in collaboration with others. Finally, it involves being open to new approaches that are put forward and used by others and seeing to what extent they can be adopted or even improved in your own context.
the power relationship between employees and employers
different perspectives:
economic
legal
regulation
Negotiations within employment relations
outcomes:
lose-lose
win-win
win-lose
types:
between managers
grievance handling
bargaining
group problem solving
Industrial relations
Human resources management
Reading 6:
Employee voice
Direct voice and indirect voice
Trade unions
Multiple voice channels
in decline but still useful for "VOICE GAP" and complex/enduring power relations
Flexible working - working from home
Employee inclusion
employee participation
challenge = fiscal pressures prioritised over employee welfare suggestions
Free market values 1980s
working situations become more dynamic eg from home, coffee shops etc -> make offices more flexible (hot desking) and attractive for employees (games rooms)
21st century = industrial democracy decline, focus is on individual employee development and welfare
Increase flexibility = a method to increase employee welfare, in turn increasing productivity which benefits the organisation
EMPOWERED WORKPLACE
EMPOWERED EMPLOYEE
Reading 9
Job involvement management
organisational involvement management
High-involvement managing
Reading 10
Pay gap is increasing
ways to decrease pay gap
argued that capping CEO salary will decrease job interest, people will join other organisations instead
shareholder vote on ceo pay
workers more influence on organisational decisions including ceo pay
government focus has changed from prioritising an employed workforce to supporting businesses in the hopes this will improve economics. This = government focus is to encourage individuals to become employable - onus is on the individual now instead
empowerment strategies
greedy employers = disengaged employees
power needs to be rebalanced. strategies to achieve this need to be created and implemented
example of power rebalancing = Seattle allow workers union for UBER so they can address employees rights, wages, welfare, car up keep etc. UBER criticised for business and customer focus rather than driver. They are introducing new policies to support their worker better and increase empowered working environement but this requires ongoing strategy
organisations must change and improve to remain successful
example healthcare; change management technique = Model cell approach
organisations require change + consistency
successful adoption and implementation of change requires effective management
theories of change management
Everett Rogers’ ‘Diffusion of Innovation’ (1962)
five categories of people associated with innovation:
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innovators
early adopters
early majority
late majority
laggards.
‘burning platform’ put forward by Daryl Conner (1993).
change managed long term but some can focus on short term change for enhanced fiscal results
why people are resistant to change:
not taking into account the so-called ‘human dimension'
fear of uncertainty
comfortable with existing methods
distrust with the intentions of management
top down ideas
bottom up approach
Kotter (1996) Eight-step process for achieving successful change management:
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establish a sense of urgency
create the guiding coalition
develop a vision and strategy
communicate the change vision
empower employees for broad-based action
generate short-term wins
consolidate gains and produce more change
anchor new approaches in the culture.
consider the quality of the change (not all are good)
Delta7 using drawn picture to explain change strategy helps explain in a more clear and memorable way to employees, helps reduce resistance
techniques to constructively engage with resistance to change:
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clearing defining the goal of the organisation
cleary communicating its short and long-term benefits
being transparent about its short and even long-term costs
actively listening to the worries of organisational members
involving members at all stages of its introduction and implementation.
social system often ignore in innovation focus tends to be on operational or product innovation
promote change and transformation
long term sustainable innovation culture
change management vs change leadership
change perspectives
increasing shareholder value still considered most important function of business although now being questioned and other stakeholders should be considered
shareholder and management conflict over managements interest in short term value increase which conversely affects long term shareholder value
short term thinking detrimental to long term value
how to measure value is under debate
GAAP Framework
Measurement is crucial because it provides decision-useful accounting information and enables the performance of management to be accurately appraised
The way items are measured in accounting impacts on the quality of accounting information produced.
measurement = the monetary value of each element included in the income statement/balance sheet
different measurement methods induce debate
historical cost accounting
deprival value accounting
fair value accounting
historical cost accounting is favoured by accountants
HCA
FVA
objective
clear audit trail
ignore inflation
price paid doesn't always equate to actual value
judgement used for calculating depreciation allows manipulation/inconsistencies
some items cannot be valued
most relevant for decision making
objective if market price available
subjective if market price unavailable
focuses on exit value - not always appropriate
market values fluctuate so can be confusing
strategy to create value shared for both organisation and society
instead of CSR
shared value could create a growth in innovation and economic growth
The Connection Between Competitive Advantage and Social Issues’ Diagram
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The collective impact approach has resulted in successful collaborations in the social sector; it can also guide corporations to catalyse change in their ecosystems.
Companies that turn to collective impact will not only advance social progress but also find opportunities for economic success that their competitors miss.
Governments, NGOs, corporations, and community members all have essential roles to play.
The five elements, which must be put in place for collective impact to achieve large-scale social change, can be summarised as follows:
common agenda
measuring results consistently
mutually reinforcing activities
continuous communication
backbone organisation(s)
collective impact to achieve large-scale social change
quality measurement = comparing intended outcome of product or service to actual outcome
good quality is important for an organisation to survive long term
quality affects reputation
reading 11
Six sigma
quality measurement should be from customers perspective
cost
quality assurance and quality control
quality systems
ISO 9000
EFQM
quality assurance (QA)
quality control (QC)
7 key tools to controlling quality
histogram
control chart
scatter diagram
pareto chart
checklist
cause and effect diagram
stratification
Zone of tolerance (based on Parasuraman et al., 1991)
the quality gaps model
who: (Parasuraman et al., 1985
model used to gauge the gap between customers expectation and reality of product or service
5 Dimensions of service quality
who: Parasuraman et al., (1991)
quality systems
quality control
statistical process control (SPC)
Juran Demming
total quality management (TQM)
ISO
Six Sigma
lean
importance-performance matrix (Slack, 1994)
Operational risk is the potential for an issue or event to result in unwanted or negative consequences for an organisation (Moore, 2017).
Hazards
Impact
impact matrix
Likelihood
likelihood matrix
risk
sources of operational risk
hazard= anything which can cause negative consequence. in the context of operations; operational risk = anything which could cause harm to an organisations operations
supply failures
failures within operation process
product/service design failures
customer failures
environmental disruption
risk assessment matrix
Operational resilience is the ability of an organisation to respond to and withstand unwanted events (Moore, 2017).
the ability to withstand/recover from negative events which cannot be avoided or minimised
organisational resilience management programme (ORM)
very high risks should be reduced to low impact or not going to happen - often not practical so instead they must be reduced to what is reasonable to still practice
consider mitigating action cost and impacts
Ericssons risk mitigating strategies
avoid
reduce
transfer
take
share
mitigation
resilience
developing a relationship with customers so they repeat purchase
more cost effective to retain existing customers than gain new
provides profit over a customer lifetime
long term customer help improve offering
increased customer understanding
less price sensitivity
more predictable outcomes inc. profit
customer loyalty
customer value and satisfaction, commitment, trust, customer orientation and communication
service-dominant logic
relationship types
Dwyer et al. 3 types of relationships
Gummessons 30 relationships of relationship marketing
Peck et al. and Christopher et al. 'ladder of loyalty'
relationship lifecycle
Business to business relationships
relationship states and migration mechanisms
target relationship marketing for different states
transactional vs relational strategies
relationship mimicry
authentic customer orientation
managing long-term relationships
beacon technology
11.2 Internal marketing
marketing internally to the employee to engage them and make them buy into the brand and be positive representatives of the organisation
coherent brand identity
focus for staff roles
supports relationship building with customers
staff feedback - opportunity to improve customer orientation
part-time marketers
two way communication
4 levels of internal communication
critical service interactions
unfair customers
employee types
the impact of staff on relationship marketing
monitor the success of marketing efforts
crisis = event with very negative impact on organisation
crisis = low likelihood + high impact
reputation repairing
internet
Reading 18: crisis management
life cycle (timeline of a crisis)
- preconditions > 2. trigger event > 3. crisis > 4. postcrisis
scandal
spillover effect
rebound effect
fake news
brand sabotage
consumer brand sabotage
aggression theory
attribution theory
employee brand saboteurs
4 step framework for managing scandals (tybout and Roehm)
Reading 19: measuring success
10 key marketing measures
proft
sales
gross margin
awareness
market share
number of new products
relative price
customer dissatisfaction
customer satisfaction
distribution/availability
brand equity
customer equity
use multiple measures
basic materiality matrix (crane and matten)
evaluate long term and short term time frames
management = execution of offering
leadership = vision, change
reading 22: identifying leadership
5 forms of leadership
person
result
position
purpose
process
followship theory
- reflection
- should/ should not be doing
- create + implement strategy
- motivate employees
- delegation
- ethics
leader embodies the organisations purpose
main idea + leadership + personnel
"The Golden Circle"
Why
how
what
Two factor theory of motivation
who: Herzberg
when: 1950
what: the two factors influencing employee motivation
Hierarchy of needs
who: Maslow
when: 1943
what: triangle of needs, one level must be met to be motivated to aspire to the next level
good leadership requires awareness and sensitivity to other cultures
fewer women in positions of leadership than men
gender stereotyping