A total quality approach to management development must understandthat managerial reliance on formal authority is no longer a sufficientbasis for effectiveness. The primary weapon…
Abstract
A total quality approach to management development must understand that managerial reliance on formal authority is no longer a sufficient basis for effectiveness. The primary weapon of competition has become the manager′s ability to gain access to and mobilize the knowledge dispersed in his organization. Total quality means that we recognize that managers are inexorably being driven towards consulting relationships. If managers are to be effective, they must understand the characteristics of the consulting relationship. They must understand its levels and phases, and must master its skills. Highlights the importance of the consulting relationship in a total quality approach to the future development of managers. Presents a model of the consulting relationship and examines several issues which should be considered in a total quality approach to developing a manager′s consulting skills.
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This case aims to chronicle the dismantling of Tenneco – a large, prosperous diversified firm. Because it failed to manage risk, its best assets ultimately had to be sold to allow…
Abstract
Purpose
This case aims to chronicle the dismantling of Tenneco – a large, prosperous diversified firm. Because it failed to manage risk, its best assets ultimately had to be sold to allow its survival. Behind its actions of problematic acquisitions and questionable financial policies, are underlying dynamics that offer lessons for other companies.
Design/methodology/approach
The study is are based on extensive interviews of management, board members, and review of documents and publications. The paper focuses on decisions that cumulatively contributed to enterprise‐wide risk.
Findings
The paper finds that Tenneco management's blind spot was its failure to consider the interaction of its decisions and implicit assumptions over time.
Practical implications
Six principles of enterprise‐risk management are distilled from the Tenneco case.
Originality/value
Although Tenneco's financial crisis occurred decades ago, the lesson for present‐day management is clear: independent board oversight is crucial. Moreover, the enterprise risks inherent in some decisions are only apparent if the board takes a system‐wide view.
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The astute observations of Peter Drucker – seminal management thinker, author and consultant who died in 2005–have influenced the strategic thinking of managers for decades. The…
Abstract
Purpose
The astute observations of Peter Drucker – seminal management thinker, author and consultant who died in 2005–have influenced the strategic thinking of managers for decades. The author, a former colleague of Drucker's, believes that his meta‐thinking – that is, his pattern of thinking –offers executives especially valuable insights for improving the process of strategic analysis. The paper aims to look at several modern case studies using Drucker's favorite analysis techniques.
Design/methodology/approach
The paper looks at three case studies that use Drucker's favorite analysis techniques.
Findings
Built into his pattern of thinking are three techniques that Drucker used to consider almost every problem. Learning to apply these techniques can be extremely helpful to senior managers. Drucker was the alpha knowledge worker. His influence was global – altering the mindset of managers around the world. His lessons in strategic thinking are a model for all who practice strategic management or advise others on how to do so.
Research limitations/implications
The paper is based on personal recollection and a review of literature.
Practical implications
Three techniques that Drucker often employed are: ask penetrating questions of people who understand current and future realities so they can generate and evaluate a creative set of strategic options; reframe the prevailing view of the situation in simple, understandable terms that enable a review of priorities and adjustment of actions to better adapt to the competitive environment; and question the assumptions underlying current views – consider alternative assumptions and diligently probe their context and strategic implications.
Originality/value
The paper provides useful insight into Drucker's brilliant intuitive analysis process.
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This disguised case of a unit of a Fortune 500 firm aims to consider two core questions when considering the decision of whether it's time to renew a corporate strategy. They are…
Abstract
Purpose
This disguised case of a unit of a Fortune 500 firm aims to consider two core questions when considering the decision of whether it's time to renew a corporate strategy. They are: Does the strategy truly fit the current business environment? and Is a change in the organizational structure required to fit the intended strategy?
Design/methodology/approach
The paper uses “Wyler Company,” a business that was lulled into complacency by prospects of seemingly steady growth, to examine whether the firm's current structure is aligned with leadership's intended strategy.
Findings
A self‐directed study process revealed that the intended strategy had been gradually subverted as the organization grew in complexity and specialization. Management quickly developed a consensus that favored a dramatic change in the organization's structure.
Research limitations/implications
The author was a consultant to an oil exploration and production unit of a Fortune 500 company during a period when many of the critical decisions studied by this disguised case were made.
Practical implications
Management needs to continually monitor the gap between implemented and intended strategy, which often increases as the organization evolves a specialized structure to primarily pursue near‐term gains.
Originality/value
Top management's need to analyze whether the operating structure is aligned with its intended strategy for a dynamic business environment is not an unusual problem. When competition increases, many firms change their structure to concentrate on a few profitable activities. This response, though, can inadvertently subvert their intended strategy.
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Dale E. Zand and Thomas F. Hawk
Division managers in multi‐division, production organizations often focus primarily on their division's interests and goals and as a result may not be well motivated or equipped…
Abstract
Purpose
Division managers in multi‐division, production organizations often focus primarily on their division's interests and goals and as a result may not be well motivated or equipped to formulate optimal, company‐wide policies. In this case study, a new CEO decided to deal with ambiguous, company‐wide policy issues such as pricing, product portfolios, market position, and communication across independent divisions, by installing a parallel organization composed entirely of line managers from different divisions and functions. This paper aims to examine the parallel organization concept and how it was applied, installed and operated to greatly benefit the firm.
Design/methodology/approach
The case describes the operation and outputs of the parallel organization based on data gathered from interviews of managers and detailed analysis of proposed issues and policies formulated over a five‐year period.
Findings
The firm's performance improved significantly as the parallel organization generated policies for costing and pricing products, removing products from the product line, positioning in global markets, and enhancing strategic planning. In addition, the parallel organization sharpened management's analytic and decision skills.
Research limitations/implications
The accuracy of the data and its interpretation and analysis was reviewed and confirmed by management.
Practical implications
This case shows how using a parallel organization, in place of the common practice of staff analysis or consultant investigation, can improve a firm's critical policies, profitability, and orientation to its future environment while better integrating independent divisions.
Originality/value
This is a unique, in‐depth examination of the design and operation of a parallel organization to achieve strategic policy changes and improved communication in a multi‐division firm.
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Reviews an article which outlines three key techniques of Peter Drucker's strategic thinking.
Abstract
Purpose
Reviews an article which outlines three key techniques of Peter Drucker's strategic thinking.
Design/methodology/approach
Explains three simple strategic concepts and how they have been put to effective use in turning companies around.
Findings
“Any fool can complicate things; it takes a genius to simplify them.” So said Einstein, and so said the late well‐known management thinker Peter Drucker. Famous for his books, lectures and ability to see the fundamental core of any business problem, Drucker provided guidance and inspiration to countless managers. In some cases, his thinking turned long understood strategies on their heads, resulting in many troubled businesses saved. The question is, was he a one‐off maverick, whose insight is difficult to replicate, or can his strategic thinking be taught?
Practical implications
Gives a set of tools for strategy management in any business.
Originality/value
Offers simple and effective advice on strategic thinking, along with case studies.
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Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Abstract
Purpose
Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Revolutionaries might believe that they are setting out to make the world a better place, but that's not always the way things work.
Practical implications
Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
Social implications
Provides strategic insights and practical thinking that can have a broader social impact.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.
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Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Abstract
Purpose
Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
In today's challenging economic climate and increasingly tough business world, organizations can only hope to succeed if everyone and everything is pulling in the same direction. If not, leaders must make a beeline for the road towards change. Strategic renewal often enjoys prominence on change agendas. In many cases, it will prompt a radical transformation of strategy. However, this can prove a knee‐jerk reaction with one common mistake being a failure to ensure fit with current or future business environments. But the best strategy in the world will only have a limited impact without the support of an appropriate structure. Indeed, alignment between strategy and structure is a must. Astute companies appreciate this. Many, however, remain misguided and allow short‐term financial goals to drive structure change. In such cases, the bigger picture is largely ignored.
Practical implications
Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.