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TM03- Building Long Term Success - Coggle Diagram
TM03- Building Long Term Success
THE POLITICS OF BUSINESS
Important political contexts - organisational power dynamics, competing values and interests, analysing political games, political astuteness skills, identifying and analysing stakeholders
Johnson et al. matrix (2008) - maps stakeholders power vs interest
Hartley and Fletchers political astuteness framework - Personal skills, interpersonal skills, reading people and situations, building alignments and alliances, strategic direction and scanning.
EVOLVING RELATIONSHIPS WITH EMPLOYEES
The traditional approach - The human resource management (HRM) - Partnership approach
'Economic Perspective' - Macro: changes in the wider labour market and the effects on employment. Micro: hiring practices and relative power of employees and employers.
Legal perspective: Contracts - hiring and firing - discipline and promotions.
Negotiating with the aim for a 'win-win' between parties. Prominent types of negotiation - between managers, grievance handling, bargaining, group problem solving.
Negative outcomes from poor negotiation - neither team achieves its objective, no agreement is secured, long term relationships soured, the constituents lose respect/trust, both parties become disillusioned with negotiation process.
21st century employment relationships:
Focus on collective agreement, power-sharing, flexible work arrangements, work-life balance, employee commitment, HR practices
'EMPLOYEE INCLUSION'
QUALITY AND IMPROVEMENT
Quality assurance (QA) - the actions necessary to ensure that a product or service will satisfy requirements given or expected by the customer. Involves the marketing, design and specification functions as well as operations.
Quality control (QC) - the activities needed to fulfil product or service requirements for quality. The manufacturing of a product or delivery of a service.
Zone of tolerance (based on Parasuraman et al., 1991)
The quality gaps model (based on Parasuraman et al., 1985)
Quality control - checking outputs, random sampling outputs etc
Statistical process control (SPC) - using live data to identify problems
Juran and Deming - customer centred quality
Total quality management (TQM) - integrating processes and procedures
ISO quality systems - factoring in external standards
Six Sigma - DMIAC framework to achieve near-perfect quality
Lean - concentrating on reducing seven types of waste
SEVEN KEY TOOLS: Histogram, Control Chart, Scatter Diagram, Pareto Chart, Checklist, Cause and Effect Diagram, Stratification
Importance-Performance Matrix (Slack et al., 1994) - excess, appropriate, improve, urgent action based on customer perception of importance.
OPERATIONAL RISK
Risk - extent and likelihood of negative consequence
Resilience - ability to respond and withstand negative consequence
Sources of operational risk - Environmental disruptions, supply failures, failures within the operation or process, product/service design failures, customer failures
ASSESSING RISK
Identify hazard (source of risk) - Estimate impact - Estimate likelihood. IMPACT and LIKELIHOOD gives a measure of the risk
Julia Allen (2011) Measures for Managing Operational Resilience - ORM programme.
LEADERSHIP
‘Leadership is associated with taking an organisation into the future, finding opportunities that are coming at it faster and faster and successfully exploiting those opportunities.’ John Kotter (2013)
Leadership is NOT management
Leaders inspire, challenge the status quo, advocate for change, understand peoples needs and beliefs, serve subordinates
Mangers advocate stability, carry out responsibilities, exercise authority, serve superordinates
Strategic leadership
Must understand capacity for change, strengths and weaknesses of the organisation and the type of individual the organisation attracts.
Different to the charismatic forms of leadership - tends to focus more on personality
Understanding the complex alignment of 'main idea + leadership + personnel'
Inspires employees as they understand the 'big idea' and motivations making leadership not just a top down process
MARKETING IN THE LONG TERM
RELATIONSHIP MARKETING
'COLLABORATIVE EXCHANGES' 'DISCRETE EXCHANGES'
Moving away from one off purchases and developing repeat purposes and exchanges
Inspiring loyalty when a consumer has many choices - using technology to tailor services
Business-to-business relationships:
Take longer to establish, greater impact on costs and outcomes than those with consumers (Harris, 2017a)
INTERNAL MARKETING
For employees need to believe in the brand to represent effectively and improve service.
Internal marketing is important for relationship marketing as well as for branding, and internal and external marketing go hand in hand (Egan, 2011).
Mitchell (2002) - internal marketing communications avoid preaching - stress beliefs, rather than its intentions - designed to engage - be in an accessible format.
CRISIS MANAGEMENT
‘A crisis is an event that … can have a vastly negative impact on an organisation’ (Crandall et al., 2014, p. 4).
Negatively PR lingers especially online
Response needs to be appropriate and proportionate and take accountability - a poor response could make the crisis worse.
Tybout and Roehm, 2009, Four step framework for managing scandals
ASSESS THE INCIDENT
2.ACKNOWLEDGE THE PROBLEM
FORMULATE A RESPONSE
IMPLEMENT THE RESPONSE
MEASURING SUCCESS
Marketing can be expensive so marketing success needs to be monitored
Measures include: Profit, Sales, Gross Margin, Awareness, Market Share, Number of new products, Relative price, Customer satisfaction/dissatisfaction, Distribution/availability.
Multiple measures needed to paint the full picture
Basic materiality matrix (Crane and Matten, 2016) - impact on business success and its importance to stakeholders
