MGMT 1000 EXAM NOTES NOTICE: THESE NOTES COVER EVERYTHING IN DETAIL, AS MORE THAN 4 PEOPLE HAVE DONE THE NOTES ON EACH WEEK. WITH THESE NOTES YOU ARE WELL ON YOUR WAIT TO GETTING A GOOD MARK ON THE EXAM. NewMindSets Lecture Readings: Highlighted in Red Week 1-Importance of knowledge economy Week 2- Importance of Stakeholders Week 3-The importance of sustainability Week 4-The importance of quality Week 5- the importance of marketing Week 6- Balancing financial expectations: corporate social responsibility and social entrepreneurship Week 7- managing employees: the importance of leadership Week 8- the employee as a stakeholder Week 9- globalization and the importance of external stakeholders Week 10- BPTP WEEK ******** Week 11- The future: emerging opportunities and challenges Week 12- integration and review NewMindSets Tutorial Readings: Highlighted in pink Week 1- Tech Savy Week 2- team work Week 3-creative problem solving stress time and management Week 4-managing projects and conflict Week 5- financial literacy Week 6-mid term exam ******** Week 7-presentations**** Week 8-career planning and goal setting Week 9-BPTP REGIONAL COMPETITION**** Week 10-valuing diversity/emotional intelligence Week 11-power and politics Week 12-evaluating performance and giving/receiving feedback

Week One Lecture PowerPoint Notes

The knowledge economy: A world where the ownership of knowledge as opposed to the ownership of financial capital, is becoming the formative force”

o Organizations as “machines” versus “brains”

Contingency Approach: Analyzing relations between organization and environment.

o prospector, defender and analyzer organizations. o Defender organizations focus on sustaining a profitable environmental

niche by being highly cost-effective and use price competition, an emphasis on quality, and other “barriers” to discourage entry from potential competitors (Exxon Mobil)

o Prospector organizations focus on developing a relationship with the environment based on finding, developing, and exploiting new opportunities (3M)

o Analyzer organizations try to combine the strengths of both the defender and the prospector by developing an ability to produce a range of high-quality products very efficiently, while remaining open to new opportunities (Apple)

Trained Incapacity: o Individuals and organizations often miss valuable opportunities for

learning and development because they have been conditioned and trained to perform in ways that have outlived their usefulness.

o One result of "trained incapacity" and self-limiting beliefs is that people can easily get locked into rigid patterns that lead them to underachieve and "do the minimum”

o People get "turned off" by their work. Instead of setting goals and aspirations that are energizing and challenging, they accept the way things are. They under-perform because they feel undervalued and under-challenged.

o The problem of trained incapacity and self-limitation often creates corporate cultures characterized by stalemate or deteriorating performance

Lecture Readings 1.1 Meeting The Challenge of a Knowledge Economy

More than ever, we are living in a knowledge economy where the key factors of production reside in the capacities and ingenuity of the human mind.

As the experts suggest, this means that increasing emphasis must be placed on:

o Continuous Innovation: Products become obsolete almost overnight, successful companies are those that consistently create new knowledge

o Collaborative learning: Learning organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured

o Competitive advantage: Competitive advantage no longer belongs to the biggest or those blessed with abundant natural resources, or the most capital. In the modern economy knowledge is king

The rise of knowledge work and a knowledge economy creates a powerful synergy between individual and corporate interests in ways where all can gain

Key Implications on Individuals and Organizations

Downward pressure on wage rate resulting from automation, the de-skilling of

work, and the ability of corporations to globalize operations to take advantage of

the lower labour costs worldwide

The key to success is one‟s ability to join the knowledge economy

People and organizations need to lever their ability to learn and most

importantly their ability to learn to learn at a rapid rate. This will increase their

employability and intellectual capital

Knowledge is not tied to any country; it is transnational, portable, can be

created everywhere, quickly and cheaply thus anyone with a competitive

advantage based on knowledge will be challenged soon, and often by a total

newcomer.

o This means that life-long learning is now a necessity

Organizations and Workers have to work together to share this knowledge in

order for both employee and organization to be successful

Large organizations are finding ways of spawning fresh initiatives and

transforming themselves. Smaller/newer organizations are growing fast (e.g.

Nike, Nokia, Netscape)

1.2 The Rationale for Developing Learning Organizations

In times of change learning organizations that promote the creativity of people at every level are absolutely necessary to deal with the new challenges presented.

Old styles of thinking, and organizational routines that stifle creativity, have to give way to fresh approaches that allow people to bring forward ideas and innovations that will create new value

Reasons for Creating Learning Organizations: o generate renewable resources o create a sustainable advantage o foster human growth and development o create new niches o foster adaptability and change o create new knowledge and value

Reinforced through the story of Gordon MacKenzie and being an artist. (he asked

students grades 1-8) whether they considered themselves artists

1.3 The Office of 2020: We Need it Yesterday Key Aspects of the office of 2020:

Boomers won’t leave. Generations will mix o the norm as aging baby boomers stay on the payroll, either because they

will need to earn more before retiring, or because changes in government regulations will make retirement less attractive

The visible minority will be white o A falling domestic birth rate combined with rising immigration will make

Canada a country where the majority of urban workers are not white. This trend is already close to reality in Toronto.

We will all be linked to work 24/7, whether we want to be or not o think of the boundaries we will need to create to keep work from

storming through our privacy and leisure time We will make more of what we consume, where we consume it.

o Consumers today are creating their own books, software games and music. This trend, of producing the products you consume, is called “prosumerism,” and will spread quickly. This will spur producers to make their products consumer-friendly like never before.

The office will be where we say it is. o Work will be more and more delinked from location. The same

technologies that keep us on constant call also let us do lots of productive work at a distance

Social media will be the community halls of the future. o They will create the factory floor and the office meeting room where

workers can collaborate on projects socially through Facebook and Twitter

Real companies will have virtual locations. o A decade from now, virtual locations may out-number brick and mortar

ones, with marketing being almost all online. Management will be pushed down and out.

o Top-down, centralized leadership models will weaken as flexible work formations and management systems create highly decentralized workforces and decision-making.

Contingent workers will become unconditionally important.

o More part-time, seasonal and contract workers will help companies adjust in advance to quick changes in the type and amount of work that needs to be done.

Teamwork will be a learned skill, not just a nice attitude o More outsiders, faster technology, wider networks, more complex

problems – a need for more teamwork. The ability to work on a team, and especially to lead it, will be one of the most important skills in any workplace.

Steps to create a plan of action: o Understand the trends – what will happen o Clarify the implications – what do the trends mean o Identify the needs and opportunities – explicitly define what needs to be

addressed and potential areas of growth o Ensure that the 2020 management team is attaining the skills to be

successful with those change 1.4 – Mechanization Takes Command

The old man‟s vision of human alienation recurs in various forms, as they contemplate the high price of mechanical progress in terms of the transition from craft to factory production, the exchange of rural community for urban sprawl, the general degradation of the environment, and the assault of rationalism upon the human spirit.

1.5 – Learning and Self-Organization Organizations as Brains: The ability to have specialized sectors working in a decentralized manner. 1.6 The Contingency Approach: Analyzing Relations Between organization and Environment

Stresses that effective organizations succeed in achieving a good fit internally in terms of relations between organizational structure, managerial styles, technology employed and the needs values and abilities of employees

One of the major strategic tasks facing the top management of any organization is to achieve internal and external balance.

Defender organizations focus on sustaining a profitable environmental place by being highly cost effective and use price competition, emphasis on quality and other barriers to discourage entry from potential competitors

Prospector organizations focus on developing relationships with the environment based on finding, developing and exploiting new opportunities. This organization is driven by a search for innovation moving from one product or activity to another.

Analyzer organizations try to combine the strengths of both the defender and the prospector by developing an ability to produce a range of high quality

products very efficiently while remaining open to new opportunities.

Defender organizations strive to develop congruent relations along the left

hand (LINE A) prospector organizations strive for a position toward the right hand side (LINE B) and analyzer firms try to occupy the middle range (LINE C)

Tutorial Readings:

Technology As A Catalyst For Learning:

New technologies create many new learning opportunities. They can help people catapult themselves into "knowledge work" and develop new capacities for success in a knowledge economy

Some new technologies that have changed the way people work, play and socialize are: personal computers, the internet, robotized production and electronic communication

3 cases where technology has catalyzed learning: o The knowledge network at Arthur Anderson: in 1951 one of

the partners presented to plan a to build a copy of a computer model working at the Unibersity of Pennsylvania. A year later Anderson implemented the first commercial computer application. Today Anderson employees 82,000 in 360 offices in 76 countries

o Virtual teams at British Petroleum: corporate intranet linking 10000 personal computer workstations throughout the world incorporating video conferencing email document scanners and other multimedia tools

o Information systems at Washington DC hospital center: technology is used to promote new learning and intelligence.

Week 2

Lecture

PowerPoint:

We can learn more about ourselves when we take the time to see ourselves the same way others do

Many people are affected or interested by our choices o Employees o Community o Competitors – wants to see how one business‟ choices will affect

their own

By taking on the stakeholder approach, one can build on their problem solving

Two- way relationship between stakeholders and organizations

Lecture Readings

Adopt The Perspective Of Key Stakeholders Think About Your Stakeholders

Step 1: Select a focus o Improve the visibility of the store o Asks, “who are the key stakeholders?”

Step 2: Ask yourself how you can learn more about their perspectives o How do they see the store? o What do they think about it? o How will they act and react to the problem of improving

visibility? o What can be learned by these insights? o How will this change what is being done now?

Stakeholder Analysis:

Step 1: Identify your Stakeholders Step 2: Prioritize your Stakeholders

Step 3: Understand your Key Stakeholders Stretch benchmarking

Individuals and organizations can achieve exceptional levels of performance by benchmarking against models of best practice and superior accomplishment. The ability to stretch is key. Otherwise benchmarking breeds complacency.

Benchmarking involves at least three key steps:

o Setting a mark by finding a new standard of "best practice" that is being achieved by a "role model" such as an individual, a team, an outstanding competitor, or an exceptional organization from inside or outside of the existing business, profession or industry.

o Learning how the benchmarked "role model" achieves exceptional results.

o Finding ways of achieving or surpassing these results in the context of one's own special circumstances.

It is important to learn from: o Competitors o Businesses outside your industry o Dissatisfied customers o Role models o Your own aspirations

Make sure you don‟t copy what others are doing Bureaucratic Silos:

It is necessary to find ways of dissolving the boundaries that keep people apart.

How Does Bureaucratic Fragmentation Happen? o Functional divisions and departments become power centers –

“We‟ve got to clout exactly what we want” o Sub-goals, esp. those powerful departments, become more

important than organizational goals – “Maybe it could work.. but it would never meet our own targets”

o The divisions and conflicts become particularly entrenched when rewards reinforce the fragmentation – “Winning is everything”

Use Multiple Views to Improve Decision Making

By being open to different possibilities, you allow yourself to have lots of potential paths for development, increasing adaptability and getting new opportunities

Effective When: o In less structured environment o When you are not sure of “long term” / future challenges o When you need to consider issue of problem o If you don‟t consider multiple views, run danger of locking yourself

in an ineffective solution o Ex: advertisement campaign, discussing long term ways to improve

rocket launch

Ineffective When: o In a structured environment o When you are “expert” ; know exactly what to do o In a situation that requires specific course of action

o Ex: surgeon, rocket ship launch (in the moment)

Why are multiple views important o Navigate through difficult situations

Able to think from client, competitor, etc‟s point of view and realize solution and deal with difficult situation

o See the big picture rather than get distracted by detail o Enrich understanding of situation

Looking at it from different perspectives allows broader view o Discover new relationships

Nothing is cause-effect, everything is interconnected o Generate new thinking and breakthroughs o Increase adaptability

Techniques for being open to different possibilities: o Pay attention to key warning signals o Use competing teams and experiments o Integrate opportunity-seeking as an everyday activity

Toward a Responsible Society

A firm has 3 types of stakeholders o Organizational

Internal to the firm Ex. Employees, managers, stockholders, unions

o Economic External to the firm Ex. Customers, creditors, suppliers, distributors

o Societal External to the firm Ex. Communities, governments, regulators, nonprofits and

NGOs, environment o These 3 stakeholders form 3 different circles

Organizational is the smallest circle, economic the middle, and societal the largest

Government is the only stakeholder that is purely societal, as it is not part of the organization and has no economic relationship with the firm

Winning support for your projects Benefits of stakeholder analysis

o You can use opinions of powerful stakeholders to improve your idea and win their support

o Support from powerful stakeholders gives you more resources o Communicating early and frequently with stakeholders lets them

know what you are doing, so they know the benefits of your actions and will support you more

o You can anticipate what people‟s reactions will be to your project, and work around this

Steps to stakeholder analysis o Identify stakeholders o Prioritize stakeholders o Understand your key stakeholders

Tutorial:

Tutorial Readings Establishing team ground rules

Ground rules are needed so all members are on the same page

Ground rules should be simple, flexible, and performance focused o Start with a few key basic ground rules, and allow them to evolve

over time to address any issues that may come up o The point of ground rules is to make the team more effective, so

do not make them a list of pointless obligations that get in the way of productivity

o Types of questions: How are decisions going to be made? How are differences going to be resolved? How are people going to treat each other? How is the team going to communicate internally/externally? How are issues regarding individual and team rewards going

to be handled? Being an effective team member

5 ways to be an effective team member o Speak up when you see an opportunity for improving team

performance o Resist group-think and conforming to ideas of others for no reason o Think about the consequences of your actions on others o Be ready to do your part when help is needed o If you‟re not working for the team, you‟re probably working against

it

To be a valuable team member o Honor your commitments o Do your best to make positive contributions o Collaborate o Give and receive constructive feedback o Set high standards for yourself and encourage them in others o Stand by team decisions

Two models of team development

The midpoint transition model o Phase 1 is where you have your first meeting and establish the

basics of what you are doing o Then, you have a transition point in the middle where you realize

that the deadline is approaching, and you kick into high gear o Phase 2/completion phase is where you approach completion, and

become more productive/review what has/hasn‟t been working for you so far in order to get your project done

Team lifecycle model o Forming phase

People come together for the first time and try to get to know each other and how everyone fits into the group

o Storming phase Team beings to encounter difficulties as problems arise Productivity declines

o Norming phase Team rallies together and adopts a set of shared

understandings and norms Team understands that unless they work together they will

be unsuccessful o Performing phase

Team hits their stride and functions well Trust is formed between members

People use their strengths and

Week 3 Lecture PowerPoint Notes

A Social Business shifts the focus from documents, project plans and other

temporary artefacts to the source of the energy, creativity and decision

making that moves the business forward: people.

A social business takes a “people-centric” approach that relies on:

Networks – Globally integrated networks of employees, partners and

customers are the backbone of a Social Business.

Social and real-time collaboration – Connecting remote teams of

people to improve and decision making and discover relevant expertise

or related work empowers people and enables problem solving.

Mobility – A social business benefits from enabling individuals to use

the device best suited to their needs and keeping them connected

whenever and where ever they are.

Integration – Bringing social collaboration capabilities into the

applications people use to do their jobs.

Lecture Readings 3.1: SWOT Basic Concept: -Any object experience or event can be interpreted in many ways, it is therefore important that we recognize and understand the frames of reference that we use to shape these interpretations and why we favor certain frames over others The importance of being aware of frames of reference: The process of framing can cause us to see a situation in a particular way Our frames of reference create contexts of interpretation that shape how we make sense of situations: -They create focus of interest -Create a boundary around what we see and experience -Guide our attention -Lead us to see and emphasize certain features in the world around us and to ignore others

-Encourage us to put a particular spin/interpretation on the situations in which we are engaged Frames of reference can also create problems: -Create a myopic view -Lead us to interpret every situation in the same old way -Limit how we think and act -They create biases and blind spots that distract us from what is important -Can lock us into a world of our own -A frame of reference can sometimes be so detached from a situation that it may lead us to act in dysfunctional ways - A frame of reference can elevate one interpretation over another and in

the process eliminate other perspectives from view Examples: What‟s wrong With My knee? Bill has a knee spasm; in order to find out why he is in so much pain he goes to see several doctors to solve the problem. He sees a chiropractor, goes to a specialty shoe store, an acupuncturist etc. Each doctor has different diagnoses for Bill and each one has a different solution.

- The process of diagnosing and prescription hinges on the process of which the problem presented is framed

- Each doctor had a different frame of reference and so they tried to fit what they saw into familiar patterns.

- The frame the professional uses to understand the problem dictates a specific action. One uses acupuncture, another suggests arch supports, and still another recommends surgery.

What‟s the problem with this organization? An organization that is having difficulty adapting to change, calls on a management consultant for assistance. However, he finds many sources of conflict in the company. The consultant is confused about how to solve the problem (which frame should he choose?)

- Managements challenge is to integrate the insights of different frames - The meaning of any situation depends on the context of interpretation - By learning how to change frames in ways that broaden and deepen

insight, we can learn to approach situations in new ways Key Implications Of reframing: Understanding frames and how we can often get trapped by frames, we can open the way to new methods of problem solving. As a result:

-we can learn how to develop new perspectives -we can make multiple interpretations of the same situation, and act with these views in mind When we find new ways of reframing and understanding the underlying issues, new options will emerge

SWOT (Strengths / Weakness / Opportunities / Threats) analysis The overall aim of this technique is to evaluate Strengths and Weaknesses of your business idea in relation to Opportunities and Threats in the marketplace at large. KEY IDEA SWOT used to attain 'fit' between internal competencies and market opportunities SWOT a popular method of planning and organizing business plan

Strengths Weaknesses Opportunities Threats

3.2: Triple bottom line KEY IDEA Triple Bottom Line (TBL) stands for: Profit Environmental Social TBL basically refers to the need for businesses and firms to pay more

attention to social, environmental impacts as well as financial (profits) Failure to do so = cannot compete in a globalized world INSIGHTS TBL is important because in today's world, consumers command more

authority than ever before in mankind, so if consumers actually give a shit about saving trees then as a firm/business you need to change your operations so

that they are more "environmental' -> Consumers hold the authority; firms need to 'fit' into consumer demands

TBL: THOROUGH DETAIL FINANCIAL Firms need to make money, indicators of success are profit/loss statements,

ROI SOCIAL Embraces social responsibility as a core value Indicators of social success: Human rights record Safety in operations & products that are sold (i.e. mercury free toys) Volunteering and donating to charities

ENVIRONMENTAL Growing consumer trend towards 'eco-friendly' means firms need to reduce

carbon footprint -> going 'green' makes the firm look better in the eyes of the public Indicators of environmental success: Pollution reports Energy consumption 'green' certification (i.e. LEEDS)

EXAMPLE: Tim Horton's Though they are a coffee shop they run a program each summer, SEND A

KID TO CAMP, where they donate a lot of $$$ to camps so children can go and play this is Timmies way of saying we socially responsible

3.2: Meeting, Meetings, Meetings (time management case)

Manager of special projects in a large construction and land development

firm employing 1500 people.

You are a professional engineer: been working in the firm for the past 5

years and plan on working for another 5 and to rise to the position of

vice-president of engineering services.

This particular department is highly visible and is regarded as a linchpin in

the organizations overall operations.

There are three sets of clashes you see in the particular month which are

Routine project review meeting that is on the second Monday of every

month that clashes with a special hospital appointment for your son.

Wife is out of town and you have been waiting for 2 months for

appointment.

In my point of view I would weigh out the pros and cons of attending either of the appointments. If I have been waiting for the doctor‟s appointment for 2 months it is something serious and cannot be missed. Hence I would try accommodating the review meeting either on the same day at a later time or the next day if it is permissible.

CEO has called for a special briefing on a project that is in a critical

stage of development. All department managers are expected to

attend it. Unfortunately, a high-profile visitor from France is arriving on

the same day In regards to a shopping centre project. This meeting

has been arranged and carefully planned for six weeks.

In my point of view since the meeting with the French delegate is business related and not a personal appointment I am sure the company will take that into consideration and excuse my absence from the special briefing the CEO called upon. Both these meetings are equally important to the company.

A special daylong „retreat‟ of the corporate planning budget committee

has been called review financial plans that have a bearing on three of

your projects. Yo are scheduled to give a luncheon address to the local

chamber of commerce on the same day.

In my point of view, again the pros and cons of each task need to be weighed out. If someone else can take your place at the reviewing of financial plans then you can attend the address to the chamber of commerce.

3.3: The Balanced Scorecard KEY IDEA A strategic planning and management system developed by KAPLAN &

NORTON that helps organizations (govts, firms, non for profits) monitor how well they are doing their TBL objectives

Balanced scorecard is now a 'framework' that outlines how a firm can go

about getting their TBL objectives done

3.4: How to Kill Creativity Here are some easy ways as to how managers kill creativity:

Always pretend you know more than anyone around you.

Police your employees by every procedural means that you can devise.

Run daily checks on progress of everyone‟s work. If a daily check is

carried out, people tend to follow the same tasks that they are good at

so that they get a good remark rather than doing it in a different and

creative way.

Be sure that your professionally-trained staff members do technicians

work for long periods of time. Even though specialization is good in a

company, doing the same work over and over again makes the

workers dull and lethargic to the task and reduces creativity and

efficiency.

Erect the highest possible barrier between commercial decision makers

and your technical staff.

Be certain not to speak to employees on a personal level.

Try to be the exclusive spokesman for everything for which you are

responsible.

Say yes to new ideas but do not implement them.

Call many meetings

Put every new idea through channels and scrutinize them. By going

along channels a lot many times such ideas get lost.

Stick to protocol. Don‟t take risks.

Worry about budget.

Cultivate the not-invented-here syndrome.

3.4: Technology KEY IDEAS Technology has created short-term benefits at long-term costs:

environmental pollution, loss of skill & knowledge Service-based inventions are impediments to growth; the degree of

impediment incorporated in society is measured by: Monetary cost Specific counterproductivity The loss of knowledge 'hidden currciculum'

MONETARY COST Money is spent on supporting service technologies, at what point does it

become eccentric? SPECIFIC COUNTERPRODUCTIVITY Service tech could produce opposite effect of what service tech is supposed

to do (i.e stupidifying schools, instituionaziton) THE LOSS OF KNOWLEDGE Self-explanatory

HIDDEN CURRICULUM The beneficiaries of service techs are those ppl who adminster them (i.e

doctors, politicians etc) "professionals cut through the social fabric of community and sow

clienthood where citizenship once grew"

Alternative to the devastating service tech

Authentic social forms characterized are: Uncommodified Unmanaged Uncurricularized

UNCOMMODIFIED Service techs profit in one way or another from social conditions (i.e

therapists making a person's grief into a commodity, thus the service is now a service but not care)

UNMANAGED Service techs replace communality into heirarchy of control (I.e

institutionalization in jails)

UNCURRICULAIZED Authentic social forms allow room for individual growth, do not implement a

general outline for ALL (i.e education system)

Week 4 DyKnow Notes

Key Lessons: o New product development (NPD) o product lifecycle o cost-quality curve o quality mindset vs. quality programs (i.e. the affect a product change

has from the perspective of various stakeholders) o case: perfection or bust o generating new value and maintaining customer support.

IBM “Live” case study – the importance of collaboration, o eating your own dog food – using their own technology o Guest Speaker, Alistair Rennie, General Manager IBM Collaboration

Solutions o IBM lotus Live: -it enables businesses to move at a faster pace and dedicate

more time and effort to important things, rather than the redundant (Alistair said this)

o gives a business huge competitive advantage b/c the time it takes to set-up

meeting and so forth can be done in that moment o IBM Workers definition of Social Business:

o Social Business is the world of possibility that occurs when all of the energy and opportunities that have been generated around consumer-side models such as Facebook and Twitter are focused, and brought to bear on business challenges. enable sales forces, new ways to discover expertise, new ways to understand your organization‟s culture, new ways to establish brand trust with your customers, and much more.

Why are enterprises investing in social platforms? o want to capture and re-use knowledge o maintain human connections across a disparate workforce, potential

customers, and potential partners o Particularly in North America, remote and mobile work is becoming the

norm as two-thirds of the workforce works remotely at least occasionally o The pressure to modernize systems to meet new workforce demands.

Highly empowered, tech-savvy individuals are entering the workforce, joining the 40 million Gen Yers already in the workplace

Lecture Readings: 4.1Use the rules of one situation to reinvent another

many creative breakthroughs can be achieved by acting as if you were involved in a related, but different situation

often strangers have the best insights on problems because they take a fresh look

apply the rules that make one situation effective to another situation

ex. when reinventing hospitals, think about how 5 star hotels are designed; use those ideas to exceed the expectations of patients

summary of the technique: o select a problematic situation that needs change o get outside by selecting a very different situation which you

can learn from o identify the rules and best practices in the new situation that

make it superior o apply the rules to your problematic situation

4.2Developing new products and services

- “Creative reference points: a creative way to generate new product/service ideas is integrating key design principles from three of four completely different products and services outside your field

o Example of Swatch, Swiss company famous for turning watches into fashion accessories

use creative reference points to find breakthroughs summary of the technique:

o select a problem and think of a creative reference point o identify the key design principles that you want to use or

avoid in developing your new product/service o integrate the best ideas to create a unique product/service o ex. when designing a chain of senior‟s residences (the

problem), you consider the pros and cons of a fun fair (creative reference point) such as fun and excitement, lots of activities or crowds of people and laughing children (these are the key principles that you want to use or avoid). Use those pros and cons when thinking of ideas for your problem.

4.3Promote quality and continuous learning as core values

a commitment to quality and continuous improvement can reduce costs, increase profits, and help create corporate cultures where learning is a way of life

Quality Revolution

the old logic was that if you wanted to increase the quality of a product, the costs of production would have to increase since quality is expensive and difficult to achieve

new logic suggests that when you focus on increasing the quality, you actually reduce the costs of production because poor quality is expensive

it‟s a vicious loop: poor quality production systems -> low productivity -> lots of defects and waste materials -> annoyed customers -> few new customers -> business has to spend more on marketing because of the poor sales -> end result is low quality and poor profitability

to be effective, the pursuit of quality has to be a mindset, not just a technique; it also has to break bureaucratic boundaries

ex. pulling the cord at Toyota – every employee takes responsibility for improving the quality and effectiveness of actions. This philosophy is called kaizen. If any worker sees a problem on the production line they can “pull a cord” to stop the machines. Then, they all collaborate to fix the problems and improve the quality.

quality problems are systemic – the quality of a product depends not only on the work you do, but also the quality of the supplies, the quality of your equipment, etc.

Quality is fundamental: Dissatisfied customers drag down companies.

solutions are also systemic; a mindset of quality should be present in all areas of your business because one faulty area can drag the whole thing down

“You can't achieve "quality" just by adopting the latest program or technique. There has to be something much deeper because quality knows no compromise.”

Readings: 4.4New Product Development – tutor2u

http://tutor2u.net/business/presentations/marketing/newproductdevelopment/default.html

The overall product failure rate is 60%

Failure-rates for house and grocery store products approach 80% NPD is a process designed to develop, test, and consider the

viability of products which are new to the market

develop new products to defeat/keep up with competition, maintain competitive advantage, bring in new customers, create cash cows for the future, etc.

can be completely innovative products, into an old market, an old product into a new market, or a new product into a new market

strategic stage: firm assesses current portfolio, opportunities, and threats; then they determine what type of product would fit in with their corporate strategy

stages:

1. idea generation (R&D, employees, customers, competitors, research)

2. idea screening (ideas checked for feasibility, financial viability, and marketability) checked against the firm's new-product goals and strategies

3. concept development and testing (testing with a group of consumers to see if the products have strong consumer appeal)

4. marketing strategy development (designing a formal stragy) 5. business analysis (a review of costs/sales/profit projections.

estimate break even, etc.) 6. product development (developing a prototype; concerned

with formal design, functional design, and economy of manufacture)

7. test marketing (launching product in regional or national basis) 8. commercialization (product launch), called roll out, from

packaging in different languages to training service personnel three ways to introduce new products

1. line extension (using existing brand name on products in the same category)

2. brand extension (using existing brand name on products in a new category but within the same broad market)

3. brand stretching (using an existing name on a product in a different market)

all products need a USP (unique selling position -> think: why would people buy this product) – the unique benefit of that product that a firm promotes to its market

reasons for failure: bad research, poor marketing, market not ready for product, etc.

4.5Product Life Cycle – MarketingTeacher

Introduction o creating awareness o limited number of products available o profit is not an immediate concern o Production and marketing costs are high

Growth o competitors appear with similar offerings o products become more profitable o large companies form alliances and joint ventures or acquire

smaller companies o advertising focuses on building brand

o market share stabilizes o Distribution is key to success at this stage

o Profits peak at end of growth stage

Maturity o sales grow at a decreasing rate then stabilize o price wars and intense competition o market reaches saturation o promotions more widespread and uses a greater variety of

media o Line extension (bringing out several variations of a basic product) o Products in maturity stage in one country may be at introduction

stage at another

Decline

o downturn in the market o more innovative products are introduced/consumer tastes

changed o intense price cutting and some products withdrawn o Sales of prfit fall, but profits can be improved by reducing

marketing spend and cost cutting

4.5 Perfection or bust – Creative Organization Theory (Morgan)

the company Design Inc, run by CEO Klee was obsessed with perfection= dwindling in motivation, lack of employee confidence

they offered low salaries and long work hours but they promised employees they would learn to be at their best

one employee resigned because work was too time consuming after months of interviews, Klee still couldn‟t find a replacement

that was perfect enough because he picked at little details

after a while, overall employee morale dropped and they became very unhappy

Study questions:

1. What are the stages in new product development? Which is the most challenging? Why? Answer: summary of the technique:

o select a problem and think of a creative reference point

o identify the key design principles that you want to use or avoid in developing your new product/service

o integrate the best ideas to create a unique product/service o Marketing strategy development o Business analysis o Product development o Test marketing o Commercialization

most challenging is integrating ideas from a creative reference point into your new product and service because you will have to apply ideas from a very different product/service to a new one. . After the product is placed, you have to go a step further and make sure it is presentable and it‟s profitable.

2. What is product life cycle? Why is it important in relation to your BPTP?

Product life cycle – the phases of a product‟s life, from development to introduction the market, to growth, maturity, then decline in popularity It‟s related to BPTP because thinking of our product life cycles lets us cover every phase and plan for them

3. What‟s the main message in the perfection or bust case? If you get too focused on success and can‟t see the bigger picture, your company will not be successful.

4. What‟s the key message in the cost-quality curve? a. the old logic was that if you wanted to increase the quality of a

product, the costs of production would have to increase since quality is expensive and difficult to achieve

b. new logic suggests that when you focus on increasing the quality, you actually reduce the costs of production because poor quality is expensive

5. Select a few different technology-based products or services. How would you describe each from a product development, product life cycle and quality view?

- Apple iPad o Excellent business analysis and production development o iPad is still in the growth stage seeing as not everyone has it o Excellent quality, it gives off a prestigious aroma to owners

6. Think back to our first class and the old man‟s comment “… whoever uses machines does all his work like a machine.” In your opinion, how does this relate to quality? People look for the best quality machines to use, using the old man‟s comment, we as humans try to work like the best quality machine, being the most efficient and sustainable

Tutorial Readings: Seven Reasons Why Projects Fail:

Red flags to failing projects: 1. project is in danger of being orphaned 2. lack of clarity around the measures of success 3. a need for more visible signs of progress 4. scope creep and changing targets are a problem 5. ineffective communication in undermining the project 6. mismatch between talent and task 7. need to focus on the broader playing field and rules of the

game Defensive Routines

key elements to the process:

people often have a tendency to think and act defensively these defensive processes are often unconscious and unspoken communications gets blocked or misdirected. People send mixed

messages frequent reactions learning gets blocked and sarcasm grows

overtime defensive strategies‟ become part of corporate culture. Perspective on conflict management Conflict may perform many functions in an organization it can energize, encourage self evaluation, stimulate adaption, stimulate innovation, improve the quality of decision making, serve as a release valve and maintain the status quo.

Week 5 Lecture: PowerPoint Notes

“Social Business” – A Double-Edged Sword o If you subscribe to a free-consumer service, you are the commodity

Companies use GPS to target specific advertising o Personal and business data can be compromised o Online services are not 100% reliable

Service outages can cost a business in lost productivity, sales, and reputation

Customer value triad o Quality, service, and price

Lecture Readings Learning to Challenge Mental Models

1. Mental models employ deeply held images and assumptions that can shape our perceptions and actions

2. Some of the best ideas are blocked by organizational dynamics a. Mental models are active and shape how we act b. Could be “we believe people are untrustworthy”

3. Mental models can create inappropriate frames for understand situations and shape what we do, and provide the basis for conflict and confusion

4. Improve organizational effectiveness by learning to surface and change mental models

5. Surfacing mental models a. Planning for unexpected future events allows people Shell to

examine current assumptions and practices b. Bring in outside perspectives to gain insights on situations and

organizational structure 6. Balance between advocacy and inquiry

a. Allows people to put views on the table and open them to examination for flaws

b. Goes beyond winner-loser mentality 7. When advocating:

a. Show reasoning b. Encourage different view

8. When inquiring: a. State assumptions clearly and what they are based upon

9. When people stop inquiring: a. Ask what data will change their views

10. When you‟re hesitant to express your views: a. Think out loud about what is causing difficulties b. Work to design innovative ways of overcoming barriers

11. Bandwagon effect a. People share views, which create new assumptions and mental

models in self-sealing bubbles of reality lead to conflict

Small Changes Can Create Large Effects · Find ways to catalyze the self-organizing potential of the system so that

change acquires a dynamic of its own · Changes occur through differences that make a difference · Differences make a difference when they stimulate a complete reframing

of a situation · Situations can be reframed directly through new information, or through

key actions · To have an impact, the new ways of understanding the situation have to

lead to new actions · Actions that lead to reframing often appear illogical or have an element of

disruption or surprise

Marketing Mix

Basic, tactical component of a marketing plan Promotion models

o Four P‟s – product, price place promotion o Five P‟s – four p‟s and people o Seven P‟s – five p‟s with physical evidence and process

Offers to customers can be altered by varying elements

Pricing strategies o Premium pricing – high price for very unique products o Penetration pricing – price set artificially low to gain market share o Economy pricing – no frills low price o Price skimming – charge a high price because of substantial, but

unsustainable, competitive advantage o Psychological Pricing – used when marketer wants the consumer to

respond on an emotional basis o Product line pricing – used when there is a range of products, pricing

reflects benefits of parts of the range o Optional product pricing – using “extras” to drive price up o Captive product pricing – for products with complements, companies

will charge a premium price once the consumer is “captured”

o Product bundle pricing – combine several products in the same package

o Promotional pricing – pricing to promote a product o Geographical pricing – variations in price in different parts of the world o Value pricing – external factors force companies to provide “value”

products Place is a channel, distribution, or intermediary

o Six basic channel decisions Direct or indirect channels Single or multiple channels Cumulative length of multiple channels Types of intermediaries

Wholesalers – break down bulk for retailers Agents – used in international markets Retailers – stronger personal connection with consumers

Internet – geographically disperse market Number of intermediaries at each level Avoid “interchannel conflicts”

Product is broken down into core product, actual product, and augmented product

o Core product – benefit of the product that makes it valuable o Actual product – tangible, physical product o Augmented product – non-physical part of product o Product life cycle

Introduction, growth, maturity, decline o Customer life cycle

Creation and delivery of lifetime value to customers

Promotion is the tools available for marketing communication o Promotion mix

Personal selling Sales promotion Public relations Direct selling Trade fairs and exhibitions Advertising Sponsorships

Physical evidence is the material part of a service People include the attitude, skills, and appearance of all staff Process is a means to achieve an outcome

Social Media, Marketing, and “Social Authority”

Social media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue

Six types of social media

o Collaborative projects o Blogs and micro blogs o Content communities o Social-networking sites o Virtual game worlds o Virtual social worlds

Functional building blocks of social media o Identity o Conversations o Sharing o Presence o Relationships o Reputation o Groups

Social media are distinct from industrial or traditional media o Inexpensive and accessible

Differences between social and industrial media o Reach – social reaches more people o Accessibility – social media is public, industrial is government or

privately owned o Usability – industrial requires special skills and training o Immediacy – long time lag between communications produced by

industrial media o Permanence – industrial media cannot be altered once produced

Social authority is developed when an individual or organization establishes themselves as an “expert” in their given field or area

o Rise of social media is causing a loss or trust of a “person like me” and people turning to experts

Trust barometer – an international study conducted in 18 countries among opinion elites that focuses on the principles of trust in business

Study question: 1. What are the 4 Ps of marketing? Why is this idea relevant to your business plan project?

Product, price, place, promotion Important because it conveys the specifics of your products and how/where

you will market it. relevant in determining important aspects of company‟s factors for success.

2. What are mental models? Why is this idea especially important for marketers?

Mental models are previous formulated assumptions based on generalizations. Deeply held images and assumptions that can shape our perceptions and actions

Allows advertisers to play on mental models in order to promote their products.Markets should be aware of these assumptions to appropriately position a product so that it falls in line with the mental models of their target markets.

3. How does the small-change-large-effect theory apply to topics we have covered in this course to date? An action can reframe the way the BPTP is done Small-change-large-effect theory can change how stakeholders interact with

the business Can cause major revamps of quality of products 4. Compare and contrast social media with more traditional “industrial media”. What‟s the same? What‟s different? Reach – social reaches more people Accessibility – social media is public, industrial is government or privately

owned Usability – industrial requires special skills and training Immediacy – long time lag between communications produced by industrial

media Permanence – industrial media cannot be altered once produced. industrial

media provide info in a more compelling way 5. What factors influence the success of social media in marketing? Why are the “Social Media ROI Pyramid” and “Trust Barometer” important? The source of the information Number of people that see the advertisement Very accessible advertising Trust barometer evaluates trust in business Social media ROI pyramid defines different measurable effects of social media

Tutorial : PowerPoint Notes

12. Five-step approach to cash flow a. Opening balance

b. Projected sales c. Receipts d. Disbursements (cash you need to spend) e. Summary (cash available for next month)

13. Single bottom line vs. TBL accounting

a. TBL broadens the definition of a company‟s performance from a financial profit figure to include social and environmental measures of success

i. Financial – profits, shareholder value ii. Social – safety, human rights iii. Environmental – pollutant releases, energy consumption

Tutorial Readings Understanding Financial Statements

The Accounting Equation Assets = Liabilities + Owners Equity Assets : what a company owns Liabilities : what companies owe. Owners equity : represent claims of owners against the

business.

Double Entry Accounting each entry must have offsetting debits and credits Debits increase assets or decrease claims on assets

( Includes expenses) Credits increase claims on assets or decrease assets

( Includes revenues) Debits listed first, then credits

Revenues and Expenses

Revenues = credits that increase owners equity. Expenses = debits that decrease owners equity.

Also think of them as expired assets

Balance Sheet: details what a company owns and claims against on a

particular date Must balance Items listed in order of liquidity Valuing items – lower of cost or market value

Income Statement: Shows firms revenues, expenses, taxes for a specific period. EPS = earnings per share, represents a companies bottom

line, calculated by taking net income and dividing it by # of shares.

4.1Break –even

break-even point (BEP) is when costs/expenses equal revenue there is no net loss or gain, but opportunity costs have been paid

and capital has received the risk-adjusted, expected return

to reduce the break-even point: o reduce fixed costs o reduce variable costs o increase revenues by increasing the selling price

Unit BEP =

Sales BEP:

PV=

And then: BEP=

Cash Flow

cash flow is the movement of money in/out of a business measured during a specified time period

can be used to calculate rate of return, determine problems with liquidity, or as an alternative measure of profits

Example:

Description Amount ($) totals ($)

Cash flow from operations

+10

Sales (paid in cash) +30

Materials -10

Labor -10

Cash flow from financing

+40

Incoming loan +50

Loan repayment -5

Taxes -5

Cash flow from investments

-10

Purchased capital -10

Total

+40

(total) net cash flow: of a company over a period (typically a quarter or a full year) is

equal to the change in cash balance over this period… positive if the cash balance increases (more cash becomes available), negative if the cash balance decreases.

o Operational cash flows: result of the company‟s internal business activities o Investment cash flows: received from the sale of long-life assets o Financing cash flows: received from debt and equity

One of the major reasons businesses fail is because they run out of cash – outflows / disbursements of cash are greater than in-flows of cash.

Can be applied to personal finances Five Step Approach

1. Forecast your opening balance 2. Forecast your projected monthly sales 3. Forecast projected receipts (cash in) 4. Forecast projected disbursements (cash out) 5. Do the calculations to create a summary of your projected cash flow

Week 6

Lecture PowerPoint Notes

Review of last week (week 5): 6 types of social media: collaborative projects (Wikipedia), blogs and microblogs (Twitter), content communities (Youtube), social networking sites (Facebook), virtual game worlds (World of Warcraft lol), and virtual social settings (Second Life).

Lots of people trust applications, products, etc. (discussion about selling personal information to advertisers)

Key ideas of the lecture: Linear thinking in situations where it does not apply, vicious/virtual loops, Corporate Social Responsibility (CSR).

Profit motive is a big source of vicious loops

"While CSR does not have a universal definition, many see it as the private sector‟s way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line".

Social Entrpeneur: It is about applying a unique, practical, innovative and sustainable approach to benefit society in general, with an emphasis on those who are marginalized and poor

GUEST SPEAKERS Jane Gilbert - Chief Communications Officer, Nature Conservancy of Canada - protect biodiversity, native diversity, conserve land - assess where threat, secure land, steward land - seek creatively added benefits, social entrepreneurship, use partners a lot - support from fed/provincial gov, corporations o 30 yrs in for profit bus – broadcasting o Carleton, journalism and … o Discovery channel - (Daily Planer) program exec o Science journalism interest o MA at U of T o Nature Conservancy of Canada o Not for profit o Huge revenue incl. donations o 200 ppl in staff o Protect native biodiversity (plants, animals, etc) o Protect the habitat o Science assessment of the land etc, Securement, obtaining the land through purchase or donation, Stewardship o Collaborative org; very pragmatic and bus oriented o Working partnerships o “United way of the environ sector” o Recognize problem, find solution

o Major gifts org o Mission: increasingly of interest of govt

Russ McLeod Chief Operations Director, Me to We o Me to We – sister org of Free the Children

o 250 employees in Toronto today

o Book publishing, TV and documentary-making

o Business with charitable mandate

o Books, socially responsible clothing, volunteer in other countries,

artisans materials,

o 50% of profit back to Free the Children

o Huge impact, 92000 trees planted

o Recycled paper

o Charity has limitations, social enterprise is the future

Lecture Readings Linear thinking

2 indicators of linear thinking: o Linear thinking dominates all kinds of decision making o Situations are so complex or changing so rapidly that the rational-

linear approach just doesn't work Often the reasons for inappropriate forms of linear thinking are

unconscious or a product of ingrained habit. Often, they reflect a poor understanding of situations or inappropriate

training, education and styles of decision making. They also result from "political" and other pressures that force people into a situation where they try to produce rapid results through inappropriate means.

The following is usually what happens in inappropriate forms of linear thinking:

o People tend to oversimplify o As a result, side effects are ignored o Hence problem solutions produce other problems

In contrast with other barriers to learning which are often quite specific or well defined, the problems associated with linear thinking can be difficult to identify and resolve. Linear thinking has become so much a part of the Western frame of mind that it is often difficult to overcome.

We are trained and educated in a way that encourages us to analyze, fragment and search for cause-effect relations. Also, other forms of

intelligence that can provide alternative approaches are often undervalued.

It is important that we be aware of the problem, and when appropriate, do whatever we can to think and act with a sense of the broader system, with all its multiple loops, in mind.

Making a Difference: Linear thinking is a way of thinking about situations that frames

everything in lines where step-by-step actions set the "parts in play" in predictable ways, just like a game of billiards.

Although linear thinking is an effective strategy for winning at billiards, it doesn't work in every situation.

Sometimes the over-simplification gets in the way.

Vicious Loops

To understand and reverse the effects of vicious loops it is necessary to appreciate the following principles:

o Vicious loops are fuelled by systems of positive feedback where variations in the system produce more variations in the same direction

o In vicious loops there are no strong stabilizing influences o Vicious loops are only "vicious" when you don't like the

consequences Stabilizing vicious loops:

Reducing the strength of positive feedback relationships (reduced intensity)

Increasing negative feedback (loops that respond to the positive feedback by moving it in the opposite direction)

The weaker positive feedback relationships mean that the runaway aspects of the system are not so strong.

The negative feedback relationships mean that when the system moves towards its vicious tendencies, it is automatically pushed back in the opposite direction

Indicators of vicious loops:

Problems seem out of control and destructive in nature You seem to be caught in recurring patterns

Business case for CSR: http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/h_rs00100.html

o Advantages: o stronger financial performance and profitability through operational

efficiency gains

e.g. eco-efficiency; increased transparency; effective risk-management

o improved relations with the investment community and better access to capital integrating social responsibility into the criteria for mutual

funds o enhanced employee relations that yield better results respecting

recruitment, motivation, retention, learning and innovation, and productivity therefore, less demands for wage-increases

o stronger relationships with communities and enhanced licence to operate more credibility, so community is more trusting

o improved reputation and branding o CSR as an investment: o Businesses can view CSR as an investment into its human

resources, environmental protection, community involvement, etc. as a way to differentiate its image and good and services.

What is a social entrepreneur? http://www.csef.ca/what_is_a_social_entrepreneur.php

o Someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change (a social venture).

o Focus: create social capital (promote social and environmental goals)

o Is not always not-for-profit o Find and implement innovative solutions to persistent problems in

society o Triple bottom line: strive for social/environmental goals as well as

financial o Grants are available to start social enterprises in Canada (province-

specific)

“about applying practical, innovative and sustainable approaches to benefit society in general, with an emphasis on those who are marginalized and poor.

a term that captures a unique approach to economic and social problems, an approach that cuts across sectors and disciplines.

grounded in certain values and processes that are common to each social entrepreneur, independent of whether his/ her area of focus has been education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, etc., or whether the organizations they set up are non-profit or for-profit entities.”

o Practical and innovative approaches o Impatience – don‟t wait for bureaucracy to get things done. o Ambitious, Mission driven, Strategic, Resourceful, Results

oriented. o Ian Gill (Ecotrust Canada “helps local businesses, institutions and

communities to take part in the conservation economy by raising and brokering capital; by consulting on marketing, finance, management, and human resources; and by connecting conservation entrepreneurs to each other and to the marketplace.” http://ecotrust.ca/report-social-entrepreneurs-ian-gill-president-ecotrust-canada ), Dr. Muhammad Yunus (microcredit), Dr.Gilles Julien (care for children that are affected by social problems – emotional, physical care, empower families), Tzeporah Berman (Forest Ethics – protect endangered forests, work with businesses like Staples to change their buying habits), Jeff Skoll (Skoll Foundation and Participant Productions – “investing in, connecting and celebrating social entrepreneurs and the innovators who help them solve the world‟s most pressing problems” http://www.skollfoundation.org/about/ ) Bill Drayton, Chairman and CEO of Ashoka (launch social entrepreneurs, help them succeed).

Study questions:

7. What‟s the main message in the “linear thinking” article? In your opinion, what are the implications for this week‟s topic? Real-world situations are complex – don‟t oversimplify or you‟ll lose critical factors in the process. Fuzzy or ambiguous situations can‟t be solved by linear thinking.

8. What‟s a recent or current example of a “vicious loop”? What aspects made it so vicious? How was, or can the negative impact be reduced or completely reversed Example: lose job drink bad relations with family drink no job

opportunities drink even more money is spent bankruptcy What made it vicious: extreme reaction to each circumstance Reduced or reversed:

o by „stabilizing factors‟ e.g. outside person coming in and soothing the people involved

o Changing own reaction to the circumstance (not drinking) o Good luck/external change (a job appears)

9. What is corporate social responsibility (CSR)? Why is it such a “hot topic” for contemporary enterprise? “While CSR does not have a universal definition, many see it as the private sector‟s way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line.”

o Improves the image of the company – more trust from the community

o Good employee-employer relations – less demands for wage-increases

o Helps to make the company‟s products/services stand out from its competitors.

10. What is “social entrepreneurship”? Use some examples to clearly illustrate

your idea. Basically a for-profit business with a cause; the idea that a business can be centered on solving social or environmental problems. e.g. EcoTrust, Free the Children, Trees Ontario.

11. What are some of the implications of “social entrepreneurship” for managers and leaders? Is this idea important to you? Why?

o Social entrepreneurship is the future of business: it helps to solve problems, gaining a profit in the process.

o This is an important aspect when thinking about starting a business.

o Regular businesses can also incorporate social enterprise values, in the form of CSR, to improve company image, etc.

Week 7

Lecture PowerPoint Notes

Importance of cultivating trust o Can not buy trust o Attract good employees o Should be trustworthy personally o Trust and career should go hand in hand

Ripple effects of words and actions o Butterfly effect o Vicious loop o Be sure to have an exit

Other notes:

Speakers o Think out of the box can be successful o work hard and pushing boundries will define success o Keep insight that others do influence you o Family is not always right but important to find your own way o Things done on daily basis can impact something o Retail important part of business o Network will help – find the company and role

Tutorial: PowerPoint Notes

Evaluating performance o Set expectations o Measure performance from the expectations

diagnosing a problem o understand the problem o refer to why the problem occurred

Giving and receiving feedback o Be honest in giving feedback o Learn from the mistakes making one more successful and a better

person o When receiving feedback, be positive and do not get offensive

when receiving negative feedback

Lecture Readings: Managing Employees: The Importance of Leadership

8.1: Empower People to Make a Difference

Organizations have to make contexts where people are encouraged to step forward and use their skills, insights and intelligence

Organizations must flatten hierarchies Senior Execs: dislike this because it allows middle managers to abdicate

responsibility and dodge their leadership role. Also creates the impression that employees can do as they wish

Middle Managers: fear they may not be left with much to do The Lower Employees: they don‟t want to be empowered because they feel

like that‟s more work; OR they find it insulting because they think they are already empowered and don‟t use it

Empowerment in two ways: Delegation and control within clearly defined boundaries managers give

framework and employees fill it in Personal risk taking, growth and change create opportunities for people

to take initiative, trusting that they will grow, develop and perform

People should want to get involved and feel able to make a difference Empower by creating space where employees can step in

The Basics: Leadership in Action

You need an honest knowledge of your strengths and limitations in order to lead others

It is important to: 1. Build on your natural leadership inclinations 2. Learn what will motivate followers 3. Recognize and build on the contributions of others 4. Excel on the leadership triangle: People, Vision and Execution 5. Align your style with organizational needs and challenges 6. Remember the importance of focus

The Importance of Leadership

Modern observers of organizations are often dismissive of leadership. The belittling of leadership represents a reaction to overemphasis on

leadership in the past.

As if in response to the hero worship of yesteryear, writers today often “deconstruct” the famous of past generations. Deconstruction in this context means critically reanalyzing the lives and achievements of history‟s leaders and other important figures.

Despite the distaste of some, leadership remains one of the most important subjects in the study of organizations.

An understanding of leadership and the criteria which leaders should be judged is important for everyone involved in an organization: the leaders themselves, members of the organization who are not leaders,

and outsiders who depend on the organization‟s performance, such as government agency clients and corporate stockholders. Leadership is clearly important to organizations.

People in leadership roles carry out functions that are indispensable. People value liberty, yet realize that collective activity requires

leadership. Who leaders are Leadership occurs in many forms, but ultimately boils down to two

capabilities: (1) selecting among alternative courses of actions, and (2) bringing and keeping other people on board.

- Formal Leadership People in positions of formal leadership have authority over others.

Administrators oversee operations whose objectives and methods are determined by others. But they make few, if any, decisions about the operation as a whole.

Managers spend a significant portion of their time supervising and evaluating the work of others and monitoring income and expenditures. Unlike the responsibilities of administrators, those of managers include decision making, direction setting, and ensuring acceptable outcomes.

Executives are usually thought to include division managers, vice presidents, presidents, and their aides (high rank and prestige)

Informal Leadership Task leaders help assign tasks, set production goals, and determine

the pace of work. Socioemotional leaders take initiative and engage others on a social or

emotional level.

Network leaders stand at the centre of many communication pathways.

Gurus and rabbis have the opportunity to influence decisions of those in formal leadership positions.

Leader-follower Relationship

Leaders and followers are joined in relationships of mutual dependence.

Leader-follower relationships are sometimes viewed as sequences of exchanges.

In return for access to his or her network, the leader expects the subordinate‟s loyalty and discretion.

Successful sequences of reciprocal exchanges create a community of interest between leaders and followers.

Leader-follower relationships become dysfunctional when followers are either habitually critical or uncritically compliant. Chronic and extreme criticism of leaders ultimately reduces the quality of leadership, causing the organization itself to become ineffective. Habitually uncritical subordinates can permit their leader to develop delusions of grandeur and set impossible objectives for the organization.

Developing shared perspectives and interests is a mark of favourable leader-follower relationships

Tutorial Readings Understanding Non Verbal Communication

Be aware of how non verbal communication influences your success as a communicator

Learn to read others body language Learn to pick up the warning signs that may be going wrong Recognize that there may be an unconscious dimension to your style of

communication Ideas to help your non verbal communication:

Try to be natural and genuine Ne aware of visual impact Select settings that can support your message Read your audience

Read the message in silence Beware of alarm bells that go off when you push peoples negative hot

buttons

Watch for contradictions Understand the sensitivities of eye contact Beware of cultural differences in non verbal communication Recognize how non verbal communication can develop and improve

cooperation and team work

93% communication is conveyed non-verbally through facial expressions, intonation, body language, etc.

Be aware of how nonverbal communication influences your success as a communicator

o No matter how much you prepare for verbal communication, it can still be overshadowed by lackluster non-verbal comm.

o Develop an understanding of the general categories of nonverbal communication (human gestures, dress code, physical settings)

Learn to read the body language of others o Detect positive and negative reactions (like nodding, clenched fists)

o Watch for consistency and inconsistencies. If people say different from their nonverbal communication, try to learn more to get a better sense of what is really going on

Learn to pick up the warning signs that things may be going wrong o be keen to detecting anger and resistance. o If people hesitate to respond, try to cover the unspoken materials. o When people lean back, it means they are rejecting you. Try to

understand what‟s going on. You might need to take a different approach.

o If an aggressive person moves closely to you, decide whether you should be more forceful or use humor to lighten the situation. Any case, take it seriously.

Recognize that there may be an unconscious dimension to your style of communication.

o You will be the last person to know your unconscious habits. o Seek the help of trusted friends and colleagues. Get sincere

feedback from them. o If appropriate, take a video of your to examine yourself.

Two Way listening

When you are the listener be sure you are listening to others effectively. Stay alert, fully engaged

When you are the communicator ensure your message is clear and is being received

Week 8

Lecture Readings Cultivating Trust (NMS) Trust cannot be bought, it must be earned

There are six ways to cultivate high levels of trust:

1. Honor your commitments Take responsibility and be honest. Commitments don‟t have to be large to make a positive impact

2. Demonstrate empathy and caring Develop an understanding and interest in others Making accommodations to suit others shows that you care

3. Be honest and open. Share information Trust is hard to gain, but easy to lose; therefore be honest Being open and sharing information builds on relationships

4. Be generous with credit where it is due Crediting others motivates them to performing the same or better the next

time Never take another person‟s credit; it breaks trust

5. Be fair Don‟t show biasness, treat everyone equitably Don‟t carry problems from one situation to another, it‟s not fair to others

6. Walk the talk Turn your words into actions Don‟t be a hypocrite it‟s definitely not a leadership quality.

“Eat your own cooking” If you want someone to do something, you should do it yourself too.

Understanding Ripple Effects of Words and Actions As a leader, people analyze your words and actions in greater detail that regular people. It is important to understand this and to be forewarned of potential side effects.

Targeted Advice: There are five things one can do to anticipate and manage the

ripple effect of words and actions

1. Understand that everything you say and do as a leader is scrutinized and likely to get amplified.

Be aware of body language, selection of words and expressions Be aware of what other think of you and how you are portrayed

2. Remember that what you don't do or don't say also gets amplified. Your

omissions and silences - intended or unintended - can often be more powerful than what you actually say or do.

Don‟t forget to credit people Be timely with responses Focus on the positive, don‟t elaborate on negatives

3. Think about the likely impact of your actions, words, and silences. In sensitive situations try to anticipate negative consequences.

Show proper etiquette, don‟t yawn during presentations Don‟t be misleading with announcements Watch your tone, be aware of your consequences

4. Find reliable "sounding boards." They can give you valuable advice on how your

words, actions, and silences are likely to be received. They can help you identify and filter negative consequences.

Learning more about yourself improves people trust in you Identify people you can trust Test your skills on them and make adjustments based on their reactions

5. Buy time in difficult or sensitive situations. Don't always be in a rush to respond

or offer a definitive opinion. Use your time wisely. This build a clearer picture and builds decisiveness Trust your instincts

Allow time to settle your heated emotions

9 QUICK TIPS: UNDERSTANDING THE RIPPLE EFFECT OF

WORDS AND ACTIONS 1. When you‟re off record, act as if you‟re on record

Never let your guard down. As a leader your title and recognition is carried with you everywhere

2. Silence is not always golden. Speak up to avoid misunderstandings

Being clear and thorough avoids people from fabricating the truth.

3. Provide complete information if you can Being clear and thorough avoids people from fabricating the truth.

4. Watch your body language

Your body language is an extension of your personality therefore use it wisely Body language can contradict what you truly feel therefore use it wisely

5. Watch your dress code

As a leader, people look up to you for what you approve and disprove Set the right example through what you choose to wear

6. Watch out for red flags of diversity

Be respectful and knowledgeable of cultures, religions and backgrounds. Diversity is inevitable

7. Beware unintentional or implied slights

If you are praising an outstanding performance, be consistent with the praise to the public, and only private reflect on flaws.

8. Make sure you empowers your advisors to be frank Honesty provides the best constructive criticism that benefits everyone Don‟t be defensive with tips for improvement Don‟t shoot the messenger of negative news

9. Sometimes a difficult situation will solve itself if you give it time Use time wisely. Know when quick responses are needed and when they can

wait.

Using time effectively means allowing others to do their job without your unnecessary intervention

Tit for Tat: A Strategy for Cooperation and Survival? (e-pub) How can I win if you don‟t lose? Games where the winner doesn‟t take all

Anatol Rapoport, UofT professor, illuminates the falseness in believing in real life scenarios that a winner takes all, leaving the “losers” with nothing.

He uses the Prisoner‟s Dilemma. The winner of this game succeeds by sharing and never attempting to outdo an opponent. Instead a winner follows their opponent and only defends themselves by immediate retaliation.

Life involves the clashing of interests and desires and calls for the need of cooperation and collaboration.

Main idea: It‟s better to cooperate! The game was invented in the 1950s and since then has been growing with

popularity Specifics of the Prisoner‟s Dilemma:

Each prisoner is given two choices: if they keep quiet they both get a sentence of 2 years, but if one rats he will get off free while the other serves 5 years. If bother of them rat out each other, they both will get 4 years. The best scenario is for one prisoner is to rat out the other, while the other remains quiet. But who can be trusted?

Tit for tat= you do not have to deprive others to succeed, do unto others as you would have them do to you

Lesson: develop trust, don‟t be selfish, the success of another can ultimately lead to your own.

o People‟s interests collide and partly conflict, it‟s better to negotiate than stay stubborn and not cooperate, cooperation leads to better outcomes for both players

Hooked on Work Workaholism is socially acceptable for its social productivity even though it is

deadly Bonuses, benefits and perks can spur this “disease” Addictions to work can be related to actual job responsibilities and the

organization Organizations lure work addicts through promises kept to employees time after

time. Promises can include fitting in, money, power, influence and certain social titles.

The good life- power, influence and money- are common to both organizational and social motivators

Organizations use future outlook- the potential for future greatness- to lure people into devoting their time and efforts. The best targets seem to be employees from dysfunctional homes, and little obligations to family.

When a person is addicted to work, the organization is their family. The family controls an employee‟s life and actions. Acceptance is very important, and employees do whatever it takes to fit in.

Addicts are con artists that can eventually start to believe their own lies Addictive organizations most likely continue promoting their mission statement

because their employees will keep believing them.

Things that make an organization addictive: promises, loyalty, perks (bonuses which encourage dependency), and the potential for a better future.

Lesson: don‟t become addicted! How do you do this? Stay informed with factual information, do your own research and trust your own instincts. Know the difference between a promise and a luring method.

Study questions: 12. Questions number 1

In your opinion, what things are important to employees? Eg. What makes people enjoy their work and want to contribute to organizational goals? What tends to demotivate employees?

Diversity, innovation, creativity, room for potential growth People appreciate shared goals, being credited for their performance

o Future perspective, ambition for work

Lack of: credit, proper leadership, and unrealistic goals demotivate employees

13. Question number 2

What actions can managers and leaders take to create a corporate community that inspires and supports learning, curiosity and autonomy? In your opinion are these important to most employees? Why or why not?

Companies can offer training or workshop opportunities to build skilled employees that will ultimately benefit the company

Encourage learning and innovation through the allocation of different responsibilities To most employers, I don‟t think they care too much about learning, curiosity and

autonomy because they may focus too much on its initial costs to implement such practices. However, they should be aware that it benefits the company‟s bottom line in the long run.

14. Questions number 3

Using some examples from front pages news stories you‟ve been following, what‟s the meaning and implication of the ripple effect of words and actions -Hermain Cain and presidential campaign (being a leader etc) -Using Ryanair (major European airline) and their CEO, Michael O‟Leary as an example, the company has been labeled as very unethical due to one man‟s words and actions. O‟Leary does anything possible to skim his customers for money. For example, no returns or refunds on flights, swearing at customers and the press, finding loop holes in laws, and bluntly not caring about many of his stakeholders. The meaning of ripple effect of words and actions is that people are following your

steps because you are a leader. This way they can have a better understanding of what is more likely to come.

15. Questions number 4

What are the main lessons in “Tit for Tat”? and “Hooked on work case” ? Tit for tat Lesson: develop trust, don‟t be selfish, the success of another can

ultimately lead to your own. o Share success rather than being selfish (win-win situation)

Hooked on work o Things that make an organization addictive: promises, loyalty, perks (bonuses

which encourage dependency), and the potential for a better future. o Lesson: don‟t become addicted! How do you do this? Stay informed with factual

information, do your own research and trust your own instincts. Know the difference between a promise and a luring method.

16. Question number 5 Do you see a relation between how organizations treat people with the practice of sustainability? If so, what? If not, why? Yes there is a relationship. Companies who are concerned with sustainability now that their employees are their key to a successful future. Therefore, companies who know this may encourage the development of critical skills, treat their employees with the respect they deserve, and make plans to develop alongside with their employees.

Tutorial: Powerpoint Notes Reactive vs. Proactive

Wait and see attitude, it will never work out thinking and sees the obstacles rather than the solution IS REACTIVE

Rises up to the challenge and creates success IS PROACTIVE

We need to have an ability to overcome obstacles, meaning be proactive

Talked about Mess Not every messy person is unsuccessful and looked at the example of Albert

Einstein

A messy desk provides a material mental map Being organized is costly, meaning time and money Messy is more flexible and tolerant of innovation

Tutorial Readings Strategic Planning to Generate New Thinking: Strategic planning used to produce plans and set direction for future

Scenario planning: -using challenge assumptions to create hypothesizes for the future and how to deal with them -Traditional model planning: doesn‟t work because the unpredictable happens! Scenario planning: Coming up with potential events in the future and how to deal with them; this allows managers in companies to anticipate the unexpected (Shell utilized this approach) -Scenario planning allowed Shell to anticipate energy crisis, breaking of Soviet Union, and global warming When people challenge and change their mental models, they can challenge and change their actions and behavior. This creates an opportunity for profound learning.

Search conferencing: -Method where people come together and, explore possible futures and find common actions that will increase the probability of achieving desirable outcomes. -These conferences allow people to share ideas and come to conclusions about ideas and future actions -Example: Bristol Siddeley was a merger between two companies. By enabling search conferencing, the executive team was able to reach a final conclusion and develop a new cooperative plan for the future of the company. -Scenario planning and search conferencing can create opportunities for learning that elude more conventional planning processes. The key resides in creating situations that allow people to live through the consequences of new possibilities in their minds and then find ways of meeting them.

Trained Incapacity and Self Limitation: -Just as training occurs in circuses and in zoos, training can also occur in organizations Expertise that self-limits: Technical expertise: Engineers/programmers aren‟t able to see exactly what the consumer would want from the product and are incapable of designing programs with a “human touch”. Expertise in developing people: HR departments aren‟t able to come up with the proper plan/presentation to secure funding Problem solving expertise: Thinking for too long “inside the box” can lead to the inability of creative thinking and outside solutions.

Why people get trapped in self-limitation: -People are trained to fit in -Training becomes a strength and a weakness -Circumstances change -Limits and capabilities are learned -Limits and capabilities are usually subconscious

Changing Landscapes of Careers: EPUB Forces that bring stress and confusion: -Globalization; lack of high quality daycare; working parents; breakdown of nuclear family; lack of family support due to geographic mobility; burdensome costs of education, housing, and retirement; caring for parents who live longer

Case Study: HP Employment Revolution -HP‟s employment strategy has evolved dramatically over 40 years as technology, mergers, and globalization affected the company. In the early days of the company, loyalty played a big factor in job retention and many employees would stay in the company all of their life. As globalization and technology development set in, company loyalty began to fade off and many job descriptions changed. Flexible work schedules and telecommuting also changed the work environment for HP. Other factors, such as mergers and splits within the company also took place and many previous employees suddenly began working for different companies (because of the splits within HP)

Week 9

Lecture

PowerPoint Notes

Eg. External Stakeholders for BBA/iBBA Program:

Customers, suppliers, governments, communities, competitors, future generations (can be both local and global stakeholders)

'unattractive' industry: combination of forces drive down overall profitability

Very 'unattractive' industry: approaches 'pure competition' (available profits for all firms are driven to normal profit)

Example of forces: 1. Bargaining Power of Customers 2. Threat of New Entrants 3. Bargaining Power of Suppliers 4. Threat of Substitute Products 5. Competitive Rivalry within an Industry

3 of these forces are external Leadership characteristics needed in the future: treating others with

respect, understanding globalization, communication with a clear vision

Develop global leadership skills by: 1. Recognize the impact of globalization 2. Demonstrate adaptability 3. Gaining a variety of experiences for conducting global business 4. Learn to make decisions that incorporate considerations 5. Help others understand the importance of globalization

Lecture Readings Dialogue & Collective Learning

Dialogue offers a means of exploring issues where different stakeholders hold deep/conflicting views. Its aim is to arrive at a collective understanding rooted in a deep appreciation of core issues. It is a stream of meaning flowing among us.

a process for transforming the quality of conversation and, in particular, the thinking that lies beneath it.

Einstein-Bohr example: they both admired each other's work, yet ultimately wouldn't meet with each other since they felt they didn't have anything to talk about because their opinions differed.

o "they couldn't get together because they had nothing to talk about. o If they had listened to each other, they could have reached a

collective conclusion. In order for dialogue to occur, there must be a place for people

to: 1. Suspend their assumptions

2. Find ways to reflect on their own and other's thinking 3. Interact on an equal basis 4. Learn to create and hold a context where other viewpoints can mix 5. Hold off judgment so that a collective thought can form

Dialogue IS NOT: 1. Discussion based – a place to score 'points' 2. Negotiation based – about making tradeoffs or gaining more than

others 3. Opinion based – about self interest or advocating a point of view 4. Truth based – about defending the truth; its more about

explorations of truths 5. Consensus based – About reaching a point of agreement; more

about exploring what's causing conflict in the first place 6. Agenda based – not about reaching goals 7. Leader led – not about a situation where an individual can imply

what he thinks on someone else; but it could be facilitated by a someone

8. Time-driven – insights and directions can emerge when the time is right

Example of American Steel Industry Downsizing: o There was initial skepticism, lack of trust because of new ideas o Turning point came when people from all departments

communicated to each about their anger which helped to identify patterns

o Overtime, people realized progress could be made and plans for the future could be considered

o Actions speak louder than words: managers and union reps began acting and speaking collectively as one

o A year later, relationships were much more positive Dialogue and 'Collective Learning"

Allows you to explore issues, conflicting views, penetrate 'bedrock values' and assumptions with different stakeholders

Aim is to arrive at a collective understanding NewMindsets:

Dialogue: process of general inquiry that seeks to create a broad appreciation for issues; judgment has to be disregarded in order to create an opportunity for new insights to emerge.

dialogue can be useful in improving interactions in situations where people get locked into win-lose debates, defensiveness, stalemate, and lack of learning.

Creating Space for Collective Learning Dialogue Succeeds In This

1. Crucible: dialogue as a container that allows 'hot' views to cool off

2. Flowing stream: dialogue as a stream of meaning flowing between those involved; can result in an entirely new pattern of understanding

3. Glue/Cement: dialogue can create shared meaning, creates a common bond

4. Synchronized Movement: allows individuals to find a way of aligning aspirations/ideas

5. Superconductivity:

When discussing tough issues people act more separate, incoherently, unstable; act just like electrons in 'high' temp.

By letting things 'cool' off, dialogue seeks to create a shared environment

6. Laser: dialogue helps to create a convergence of many people's ideas

Why is Dialogue Important: 1. Enhances our ability at 'learning to learn' 2. Provides a method of exploring grounds on which we act 3. Allows us to explore and challenge the 'containers' of our thoughts 4. Provides way for appreciating social, cultural, political diversity 5. Allows viewpoints to transcend 6. Helps to moderate the economic, social, and political turbulence in

the 'hyper-competitive' world we live in 7. Real Examples:

a. Global conflict resolution. b. Bridging inequalities and polarities between groups. c. Breaking the hierarchical boundaries within an organization.

What is Globalization?

Article on Globalization Globalization: process of interaction and integrations among the people,

companies and governments of different nations; driven by international trade and investment, aided by information technology

o Current wave of globalization – driven by policies that have opened economies domestically and internationally.

Effects on environment, culture, political systems, economic development, human well being, prosperity, etc.

Not a new process; occurring for thousands of years; yet new policies and tech advancement has lead to cross-border trade, investment, migration, etc to such a huge amount; an entirely new phase in economic development

Government also adopted international trade agreements, promoting trading goods, services, investments, etc.; reduced barriers to international trade

Since 1950, volume of word trade has increased by 20 times.

Foreign investment from 1997 – 1999 nearly doubled ($468 Bil. to $827 Bil.)

Technology in globalization: provides new tools to identify potential economic opportunities for investors, consumers, businesses, etc.

Viewpoints: o Proponent: it allows poor countries/citizens to develop economically o Opponents: it creates unfettered international free market, only

benefiting multinational corporations in the Western World

9.3 Creating Industry Advantage Industry Analysis: Analyze Porter's 5 Forces; once the industry is analyzed

and competitors move in predicted ways, then the firm can realize how it can earn above average profits based on their strengths

5 Forces: 1. Rivalry: realizing degree of rivalry (eg. In some industries

competition in fierce, in others not so much) 2. Availability/Threat of Substitutes: if there is more availability of

substitutes, entry may be difficult; if you raise prices, people move to substitutes (elastic demand)

3. Supplier Buying Power: If within the relationship a supplier holds more power, they are able to exact influence on the amount of product you can release.

4. Buyer Buying Power: the strength/bargaining power of a buyer shapes a firm's ability to set prices on their own Eg. If a buyer purchases large volumes from a firm, they can demand better prices

5. Threat of New Competition: High profitability attracts new firms which as a result, lower personal profits. Look for a market that isn‟t too easy to enter

Added analysis tool: Barriers to Industry Entry may be high entrance costs, brand loyalty, possible government barriers, limited access to dist. channels etc.

Study questions:

17. Which external stakeholders influence what businesses can and can't do? Communities, governments, customers, competitors, future generations, etc.

18. Why is 'dialogue' important? How does it relate to previous topics in the course? It helps us to 'learn to learn', it provides a place for us to reach collective learning and agreement, to allow new insights to emerge and create a shared perspective, etc.

19. What are Porter's 5 Forces of industry competition? What are the strengths of this framework, what are the drawbacks? It allows companies to evaluate their strategic position, however, many assumptions which may not always be true have to made about some of the forces, which include that some stakeholders are unrelated, the source of value is structural advantage, and that uncertainty is low. It may also not make sense to rate the attractive of an industry based on the resources a firm may bring to the industry. 5 Forces:

Bargaining Power of Customers

Threat of New Entrants Bargaining Power of Suppliers Threat of Substitute Products Competitive Rivalry within an Industry

20. What is globalization? Name the main characteristics and

the implications for managers and leaders. Do you think that every manager and leader needs to develop a global perspective? Why or why not? Globalization is the process of interaction and integrations among the people, companies and governments of different nations. It is driven by international trade and investment, and information technology. This process effects things like the environment, culture, economic development, and human well being everywhere in the world. Policies helped open up barriers to trade, while technological advancements made trade more effective and easier, particularly after WWII. Managers and leaders should develop a global perspective to understand how globalization actually works and what the positive and negative implications are exactly.

Week 10 TUTORIAL ONLY BECAUSE OF BPTP COMPETITON.

Tutorial Readings

We live our Frames!

The Nature of Multiple Forms of Intelligence

People have many forms of intelligence According to Howard Gardner he said there was 7 views of intelligence:

linguistic, musical, intrapersonal, interpersonal, bodily kinesthetic, logical mathematical, spatial

10 forms of intelligence include: 1. Practical 2. Ethical 3. Logical 4. Creative 5. Intuitive 6. Social 7. Numerate 8. Emotional 9. Literate 10. Holistic

SUMMARYS ON NEWMINDSETS Self Assessing your emotional intelligence:

using multiple methods formal and informal learn to look in the mirror and assess what you can learn from others make assessment an ongoing activity by recognizing that there is always

room to improve make a habit of assessing how well you handle yourself in difficult

situations

reflect on past mistakes

Week 11 Lecture Activity:

today is a richly connected world where corporate earthquakes are inevitable

can see warning signs and find ways of preparing for it beforehand; noticing the fracture lines

although corporate earthquakes can bring disaster, they may also bring opportunities for businesses in different situations

ways to anticipate: be wary of small changes that you may think are not important, watch for "fracture liens", keep your "ear to the ground"

be flexible--opportunity comes with change; you cannot hold on to the status quo forever

Lecture Readings: Anticipate And Deal With 'Corporate Earthquakes'

Corporate earthquakes are those that could put a company out of business

successful organizations spot earthquakes beforehand How to prepare for these earthquakes:

1. Be wary of minor disturbances (they are significant)

2. Watch for fracture lines (do your best to anticipate earthquakes)

3. Keep your ear to the ground (stay in tune with what‟s happening

around the world)

Anticipate Change:

o Create “learning labs” to anticipate future, be proactive, be a

leader, action-based learning, understand common barriers to

change, don‟t let group thinking get in the way

Use Problems As Opportunities:

a problem can be viewed differently; can be used as an opportunity instead

Look for problems before they hit you in the face (find hidden flaws) Law of Creative Destruction: To visit old inventions, to find new ways to innovate them

o Otherwise competitors will enter and overrun Creative destruction can ensure that more ideas gets developed by sending an organization into a slightly chaotic state

flaws and criticism can speed up change in the organization Anticipate change; be proactive, create stretch benchmarks, don‟t over

analyze, link action with learning

Stacey Matrix: shows which management method is optimal in different situations based on the degree of certainty and level of agreement on issues (below)

Definitions in terms of the Stacy Matrix: Close to certainty: Generally when can extrapolate from similar past decisions. Far from certainty: New, unique. Agreement: The vertical axis measures the level of agreement within a team. Rational decision making: Traditional, plan, implement, and monitor strategy. Political decision making: Negotiations, compromise and coalition building are used to form a decision. Judgemental decision making: Unsure of the outcomes of certain actions, so it is good to focus on a general mission. Chaos: Avoid, state of disarray. Complexity zone: Creativity, and using past knowledge to create a future., need to use a diverse range of techniques. The Next 40 Years: Some of the predictions: 1. Sophisticated Buildings Will Be Made Of Mud 2. Coral Reefs Will Be Devastated 3. The Catch of the Day? Jellyfish 4. New Cars Will Be Given Away, Free 5. Industry Will Generate Energy In Space 6. Oysters Will Save Wolves From Climate Change 7. 2,000 New Mammal Species Will Be Discovered 8. It's Curtains For The World's Rarest Dolphin 9. Farmers Will Plant Spinach In Tall Buildings 10. The Nation Will Meet The Tests Of The Century Ahead

Dialectics of Management:

Escalating levels of competition and the social problems and market potentials being lost as a result of corporate cutbacks and downsizings are systemic

They can be resolved only by modifying the basic “rules” of the game Dialectical thinking provides a framework for approaching policy issues Managing Paradox: Successful managers of change requires skill in dealing

with contradictions that block the way to a new future. Study Questions:

1) Using problems as opportunities

Have a “can do" attitude that encourages an opportunity-seeking approach to life. Learn to turn negative situations into positive ones that you can learn from. Doing this will increase your chances of being successful.

2) Developments in the next forty years that will be important: This is totally subjective: I believe that anything related to advancements in technology will be important in the future since, already, so much of what we do on a daily basis is connected to this “technology world” that‟s been created for us. Basically, all of the things mentioned in the “THE NEXT 40 YEARS” article are in one way or another connected to technology.

3) With Stacey’s diagram in mind, implications for leadership in “chaotic” contexts, where “opportunities” reside: Avoid issues that are highly uncertain and where there is disagreement as much as possible! Leaders of organizations need to have a variety of approaches to deal with the diversity of contexts. Opportunities reside in failures during chaotic contexts because this is where you will do the most learning. You should be prepared for any problems that arise so that you are proactive and can react in such a way will turn it into a positive situation / learning environment.

Tutorial Readings: Thinking in Win

Recognize that win win begins with a positive attitude

Separate people from the problem, focus on interests not positions, invent options for mutual gain, use objective criteria

Always keep an eye out for potential deal breakers

In order to maximize the chance of win win resolutions remember that:

Perceptions can be as important as reality Emotions can play both positive and negative role The quality of communication can make or break a deal

Conformity: The Solomon Asch Experiment Milgram Experiment Reasons Why conformity Happens

People often have a natural tendency to want to fit in

People have a tendency to do what they are told People often divorce themselves from the consequences of their actions People often attract an are attached to others like themselves

Picking Your Battles: Change is overwhelming. Use the following ideas to approach challenging changes:

Main battles should be fought against external challenges Remember it is important to pick your spot Give and take

Focus on high level strategic priorities 15% principle beware of destructive internal battles

Week 12 Lecture Learning to learn:

"Single-loop" learning occurs when there is a focus on the detection and correction of error so that a system can maintain a steady state "Double-loop" learning occurs when attention is also directed at the norms and standards shaping the steady state, so that the state itself can be challenged and changed when necessary. It is important to understand the context of our learning. Triple-loop learning answers these questions: "What is leading me and others to have a predisposition to learn in this way at all? Why these goals?"

Characteristics Illustrations

"Single-loop" A feedback system that detects and corrects errors to sustain a desired state.

Behavioral modification through rewards and punishments

House thermostat that maintains the temperature of a room

Budgetary and other performance controls used to meet targets

"Double-loop" A feedback system that "single-loops" and has the ability to change operating norms. The "double-looping" can be (a) fairly superficial making minor adjustments, or (b) challenge deep assumptions to create fundamental paradigm change.

An organization that challenges and changes its vision

An organization that detects and changes dysfunctional rules

Scientific methods where experiments are used to refine and develop new theory

Triple-loop learning

A feedback system that "single" and "double-loop" learns about the context in which learning occurs. This allows it to learn about learning, and to build learning into everything it does.

An individual or organization that masters the art of creating contexts will promote deep learning and change - perhaps about issues like the meaning of life, the fundamental philosophy of business, or nature of interpersonal relations

Single-Loop Learning Can Keep You On The Wrong Track

Whenever circumstances are changing or unpredictable, individuals, teams and organizations always need systems that are capable of "double-looping." But they have to be careful that they don't end up creating an endless form of "double-looping" where everything is questioned and challenged all the time. If they do, nothing gets done. Effective systems find a good balance between single and double-loop learning. Case Study: A large manufacturing firm operating in ten different countries creates a vision

where customer service becomes the new priority. The executive team agrees to put appropriate standards and controls in place. The Quality

Measurement group takes up the challenge. They complete extensive internal and external interviews and comprehensive data analysis to develop the standards for a system that will

become the reference point for measuring exceptional customer service.

=> The SMP Report Card was developed internally. It relied heavily on service delivery statistics

rather than actual customer satisfaction scores. It encouraged managers to keep doing what had worked in the past. Though updated on a regular basis, the updating did not capture significant

changes occurring in the broader environment - especially with regard to growing customer resentment about monopoly power, particularly in the international context.

In effect, the SMP ended up measuring the wrong things. It was not taking a "double-loop" look

at service standards and whether they should be changed.

Making a Difference The challenge in most management situations is to combine effective "single" and "double-loop" learning. Use a single-loop approach where it works. In other situations, recognize the need for a more open approach. Recognize that there may be ways to control and integrate a situation without the tight systems that single-loop controls usually demand. But, be careful to avoid the endless discussion, vagueness, introspection and wrangling that too much "double-looping" can produce. Study questions:

21. Questions number 1: What is the difference between single-loop and double-loop learning? In your opinion, what kind of learning have we been doing in this course? What role do you think technologies have played in the way we have been learning together this term? Answer: "Single-loop" is a “flat form” of a problem and our solution, while "Double-loop" gives us an opportunity to detect and overcome obstacles in a 3D format. We can see the whole picture of the system and apply solutions to the whole system to overcome problems when using "Double-loop" learning. In fact,"Single-loop" learning occurs when there is a focus on the detection and correction of error so that a system can maintain a steady state. "Double-loop" learning occurs when attention is also directed at the norms and standards shaping the steady state, so that the state itself can be challenged and changed when necessary.

22. Question number 2: Why is learning to learn is important? In what ways

has this cource helped? Answer: A commitment to quality and continuous improvement can reduce costs, increase profits and help to create corporate cultures where continuous learning is a way of life. To earn these benefits, the commitment to quality and improvement has to become part of the "mindset" shaping how people approach their work, not just a collection of programs or techniques. Learning to learn gives you an opportunity to broaden your intellectual horizons, never come to a standstill and develop your personality. It is worth saying that new technologies are great to help you. This course has showed a wide variety of e-learning ways, either using newmindsets or e-pub…..

23. Questions number 3 What impact is the proliferation of new technologies having on organizations and organizational structure? Use some examples to support your ideas. Answer: Our world becomes enormously “smaller” and flatter with the proliferation of new technologies. In fact, business world works 24 h/7days a week. There are no boundaries anymore that we may face. People mostly communicate through emails, develop their business network through Linkedin and order stuff they want through Internet. It is hard to imagine a businessperson without 1 computer and at least one of brand-new gadgets. Therefore, new technologies rule and lead the world. Furthermore, it is one of the reasons that provoke outsourcing. Hence, who could imagine 10 years ago that almost all North American call-centers would be based in India and Indians would give Canadian/Americans direction of how to get to the nearest restaurant.

The range of bureaucratic structure (E-PUB READING):

There are 6 models of bureaucratic structures Model 1

o Represents the traditional organizational pyramid under the strict control of the chief executive

o Meetings are viewed as a waste of time because most contingencies are well understood

Model 2 o Organization finds that their environment is generating problems

and issues on an ongoing basis o Thus, the executive management makes a management team that

makes all the policy decisions and settles problems that cannot be solved through the organizations normal routines

o Managerial styles vary from department to department depending on the personality of the department head

Model 3 o The senior management team in an organization cannot handle all

issues and require interdepartmental perspective o The departmental structure is very strong o People are usually loyal to their department heads as they realize

that that is where they will be getting their promotions o Team leaders however feel they have little power which leads to

little commitments

Model 4 o Organization organizes itself in a “matrix” form o Its gives more responsibilities to certain departments

Model 5 o Organization tackles most of its problems through project teams o Functional departments only play a supporting role o Organization is much more like a network of interaction rather then

a bureaucratic structure o Organization is constantly trying to find and create new initiatives

and ideas to contribute to its success

Model 6 o Organization is a coupled network o It has a small staff and everyone performs key operational activities o It changes from month to month as different ideas and products

come on line and the organization experiments with different partners

These models are different “species” of organizations These models might change from one to another

“Transmedia storytelling”

- Engages consumers through different means, shifting from the traditional linear story, to a more complex, multi-dimensional “story world.”

- Rather than simply watch a movie, viewers can interact with characters on websites, experience the world in games, follow leads on Twitter, as well as participate in a vast array of other opportunities on various platforms.

Tutorial: Readings:

- The key to delivering effective feedback to colleagues is to adopt an honest, open and constructive approach that respects the feelings and concerns of everyone involved.

- Give feedback when colleagues are receptive (search a right time and place)

- Focus on the issue and not the person (Meet colleagues on an equal footing, avoid deception, and share your feedback in a constructive manner by focusing on the underlying problem, issue or behavior, and not on the person or personality.)

- Game Roles - Non-problem solving - Avoids responsibility - Results in bad feelings

Roles - Persecutor - Now I‟ve Got You, You SOB (NIGYSOB) - (manipulates

others to feel badly through blaming, shaming, ridiculing, bullying, threatening, criticizing, nitpicking, belittling, mocking)

- Rescuer ( secretly believes that others cannot solve their own problems and the others will grow through his making decisions for them or through giving them advice),

- Victim (feel helpless or inadequate to solve their own problems or achieve their own goals when in fact they are not)

A „win-win‟ approach to a conflict resolution is when all parties gain They are not always possible or desirable when there may be a clear

winner or loser or clear stand has to be taken when it comes to ethical issues

However it is usually a good idea Win-win situations begin with a positive attitude

o Separate the people from the problem o Focus on interests not positions o Invent options for mutual gain o Put yourself in others shoes

Always think to yourself, “why might my colleague have a problem with this issue”

If you understand their point of view, it will be easier for you to either compromise or to explain to them your reasoning

Keep open communication