Business Culture


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Case studies on what happens if you dont innovate.
Being a Leader today doesn't mean that you will be leader forever.
An absolute NO for an entrepreneur is Dont start a startup like a bureaucratic organization.

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  • Management – Expectations from the new recruit By Araf Karsh Hamid eMail: Blog: Web:
  • By Henri Foyal – French Industrialist in 1916.
  • Interpersonal Roles Organization Head – Salesman takes Customer for a lunch, President greets touring dignitaries, Foreman attends the wedding of the lathe operator. Leader – Employee motivation, Direction Liaison – Managers spends time with horizontal chain – peers (other than the Vertical Chain of Command) Informational Roles Monitor – Manager is scanning for information constantly – Most of these info comes thru digital media Disseminator – Manager passes some info to sub ordinates. Spokesperson – He will become a spokesperson for the team. Ex. Foreman suggests product modifications to supplier. Decisional Roles Entrepreneur – In this role manager seeks ways to improve the teams output, organizations output, A CEO looking for new ideas. Exception Handling – Handling unexpected disturbances to the routine work. Resource Allocator – Allocation of the right resource for the task based on organizational priorities. Negotiator – Manager of a cricket player negotiating for better contract. Foreman negotiating for a better pay packet for the employees etc. The Managers Job – Folklore and fact written by Henry Mintzberg in Harvard Business Review
  • 4E = Energy, Energize, Edge, Execute 1P = Passion By Jack Welch in the book Winning
  • The result of the each goal must be assigned as Yes (achieved) or No (not achieved) Organization will have at least 3 Goals for the quarter Each department will be assigned goals to achieve the organizational goals Each employee will be assigned goals to achieve the department goals
  • Concept from the Book Good to Great by Jim Collins
  • Circuit City CEO – Alan Wurtzel Silo – Sidney Cooper What makes the company great is getting the right people in the bus. Philip Morris CEO – Joe Cullman R.J Reynolds - Put the best person in the biggest opportunity and not the biggest problem Joe Cullman assigned George Wiesman from domestic (99% business) to International (1% business). Wiesman created the international market and created Malboro the no.1 brand in the world.
  • Kroger – CEO Jim Herring during the Kroger transitional period. A&P – The Great Atlantic & Pacific Tea Company Build by Hartford Brothers and run by Ralph Burger (1950 – 1970) In the early 1950 ’s A&P was the largest retailer in the world.
  • From the book Good to Great by Jim Collins
  • From the book Good to Great by Jim Collins
  • Concept from Good to Great by Jim Collins Disciplined People – No Hierarchy Disciplined Thought – No Bureaucracy Disciplined Action – No Excessive Controls
  • Kimberly Clarke – CEO Darwin Smith for 20 years
  • Walgreens CEO – Corg Walgreens
  • Market Capitalization Market capitalization/capitalisation (aka market cap , mkt cap or capitalized/capitalised value ) is a measurement of corporate or economic size equal to the share price times the number of shares outstanding of a public company . As owning stock represents owning the company, including all its assets , capitalization could represent the public opinion of a company's net worth and is a determining factor in stock valuation . Likewise, the capitalization of stock markets or economic regions may be compared to other economic indicators . The total market capitalization of all publicly traded companies in the world was US$51.2 trillion in January 2007 [1] and rose as high as US$57.5 trillion in May 2008 [2] before dropping below US$50 trillion in August 2008 and slightly above US$40 trillion in September 2008. [3] Categorization of companies by capitalization Traditionally, companies are divided into large-cap , mid-cap , and small-cap . People have rules of thumb to determine category from market capitalization. These need to be adjusted over time due to inflation, population change, and overall market valuation (for example, $1 billion was a large market cap in 1950 but is now not very large), and they may be different for different countries. A common rule of thumb may look like: [4] large-cap: over $5 billion mid-cap: from $1 billion to $5 billion small-cap: under $1 billion
  • Business Culture

    1. 1. [email_address]
    2. 2. Agenda <ul><li>Management </li></ul><ul><li>Leadership </li></ul><ul><li>Expectations </li></ul>Monday, November 03, 2008 eMail: Blog:
    3. 3. Management <ul><li>The Process </li></ul><ul><li>In Action </li></ul><ul><li>The Need </li></ul><ul><li>Tools </li></ul>Monday, November 03, 2008 eMail: Blog:
    4. 4. Management – The Process By Henri Foyal – French Industrialist in 1916 Next we will check From the Management Process to real action of the managers Monday, November 03, 2008 eMail: Blog:
    5. 5. Management – In Action Monday, November 03, 2008 eMail: Blog:
    6. 6. Management – The Need P assion Monday, November 03, 2008 eMail: Blog: By Jack Welch - Winning E nergy E nergize E dge E xecute 4E + 1P
    7. 7. Management Framework - Tools <ul><li>MAP – Measurable Action Plans </li></ul><ul><ul><li>Action - 3 Goals </li></ul></ul><ul><ul><ul><li>The result of the goals needs to be recorded as Achieved or Not </li></ul></ul></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><ul><li>For the Organization (Quarterly) </li></ul></ul></ul><ul><ul><ul><li>For the Department (Quarterly) </li></ul></ul></ul><ul><ul><ul><li>For the Employee (Monthly) </li></ul></ul></ul>Monday, November 03, 2008 eMail: Blog:
    8. 8. Leadership <ul><li>Get the Right People </li></ul><ul><li>Brutal Facts </li></ul><ul><li>Hedgehog Concept </li></ul><ul><li>Culture of Discipline </li></ul><ul><li>Technology Accelerators </li></ul>Monday, November 03, 2008 eMail: Blog:
    9. 9. Get the right people <ul><li>Focused on buying right stores </li></ul><ul><li>Resulted in </li></ul><ul><ul><li>Best Services </li></ul></ul><ul><ul><li>Best Home Delivery </li></ul></ul><ul><li>Resulted in </li></ul><ul><ul><li>Bad Customer service </li></ul></ul><ul><ul><li>Delivered Damaged goods </li></ul></ul><ul><li>Focused on getting right people </li></ul><ul><li>Best Person in the biggest opportunity </li></ul><ul><li>Resulted in </li></ul><ul><ul><li>Marlboro No. 1 in the world </li></ul></ul>Monday, November 03, 2008 eMail: Blog: Circuit City Silo Philip Morris R J Reynolds
    10. 10. Confront Brutal Facts <ul><li>Changed each store based on new business / market requirements & created super stores </li></ul><ul><li>Year 1986 Stock = $5.59 </li></ul><ul><li>By 2000 the No. 1 chain store . </li></ul><ul><li>October 31 st , 2008 </li></ul><ul><li>Market Capital = $17.92Billion </li></ul><ul><li>Stock Price = $27.46 </li></ul><ul><li>October 31 st , 2008 </li></ul><ul><li>Market Capital = $ 476.87Million </li></ul><ul><li>Stock Price = $ 8.27 </li></ul><ul><li>1950 ’s World’s Largest retailer </li></ul><ul><li>Refused to change the successful business modal </li></ul><ul><li>Year 1986 Stock = $20.25 </li></ul>Monday, November 03, 2008 eMail: Blog: A&P (160 years old) Kroger (135 years old)
    11. 11. Hedgehog Concept It ’s NOT a Goal, A Strategy, Or intention. It is an understanding Monday, November 03, 2008 eMail: Blog:
    12. 12. Hedgehog Concept <ul><li>Excited the profitable food service business </li></ul><ul><li>Profit per Customer visit drug store </li></ul><ul><li>Replaced / moved existing stores to corner stores. </li></ul><ul><li>Most convenient drug (medical) store </li></ul><ul><li>Sold out to J C Penney consisting of 1873 stores in 14 states </li></ul>Monday, November 03, 2008 eMail: Blog: Eckerd Walgreens
    13. 13. Culture of Discipline High High Low Ethic of Entrepreneurship Culture of Discipline Monday, November 03, 2008 eMail: Blog: Hierarchical Organization Bureaucratic Organization Great Organization Start up Organization
    14. 14. Culture of Discipline <ul><li>Flattened the organizational layers </li></ul><ul><li>Sold traditional paper mill </li></ul><ul><li>Invested in Consumer products like Huggies and Kleenex </li></ul><ul><li>25 yrs later beat P&G in 6 out of 8 categories </li></ul><ul><li>Bought Scott Paper outright </li></ul><ul><li>Year 1986 Stock = $07.96 </li></ul><ul><li>Year 2008 Stock = $61.29 </li></ul><ul><li>Still holds the ground in some areas. </li></ul><ul><li>Year 1986 Stock = $04.02 </li></ul><ul><li>Year 2008 Stock = $64.54 </li></ul><ul><li>Goliath </li></ul>Monday, November 03, 2008 eMail: Blog: Proctor and Gamble Kimberly Clarke
    15. 15. Technology Accelerators <ul><li>Used technology based on the core concept </li></ul><ul><li>Slow start </li></ul><ul><li>Year 1999 Stock = $25.46 </li></ul><ul><li>October 31 st , 2008 </li></ul><ul><li>Market Cap = $25.2Billion </li></ul><ul><li>Stock Price = $25.46 </li></ul><ul><li>Internet based </li></ul><ul><li>Promising IPO </li></ul><ul><li>Year 1999 Stock = $67.50 </li></ul><ul><li>October 31 st , 2008 </li></ul><ul><li>Market Cap = $171.83Million </li></ul><ul><li>Stock Price = $1.78 </li></ul>Monday, November 03, 2008 eMail: Blog: Walgreens
    16. 16. Expectations Monday, November 03, 2008 eMail: Blog: <ul><li>Brutal Facts </li></ul><ul><ul><li>An honest confrontation of the current reality </li></ul></ul><ul><li>Hedgehog Concept </li></ul><ul><ul><li>Understand the core competency and be the best in the world </li></ul></ul><ul><li>Culture of Discipline </li></ul><ul><ul><li>Disciplined people with discipline thought and action </li></ul></ul><ul><li>Technology Accelerators </li></ul><ul><ul><li>Application of carefully selected technology </li></ul></ul><ul><li>Right People </li></ul><ul><ul><li>Allocating right people for the job </li></ul></ul>
    17. 17. <ul><li>References </li></ul><ul><ul><li>Books </li></ul></ul><ul><ul><ul><li>Pour your heart into it – By Howard Schultz (CEO Starbucks) </li></ul></ul></ul><ul><ul><ul><li>Good to Great – By Jim Collins </li></ul></ul></ul><ul><ul><ul><li>Winning – By Jack Welch (Ex CEO GE) </li></ul></ul></ul><ul><ul><ul><li>The Search (The Google story) – John Battelle </li></ul></ul></ul><ul><ul><ul><li>The Elegant Solution: Toyota ’s formula for mastering innovation – Mathew E May </li></ul></ul></ul><ul><ul><li>Articles </li></ul></ul><ul><ul><ul><li>The Managers Job – By Henry Mintzberg, Harvard Business Review </li></ul></ul></ul><ul><ul><ul><li>The Effective Decision – By Peter F Drucker, Harvard Business Review </li></ul></ul></ul><ul><ul><ul><li>What Leaders really do – John P Kotter, Harvard Business Review </li></ul></ul></ul><ul><ul><ul><li>Building a company of Citizens – Brook Manville & J. Ober, Harvard Business Review </li></ul></ul></ul><ul><ul><li>Movies </li></ul></ul><ul><ul><ul><li>Remember the Titan </li></ul></ul></ul><ul><ul><ul><li>Coach Carter </li></ul></ul></ul>Monday, November 03, 2008 eMail: Blog:
    18. 18. End Monday, November 03, 2008 eMail: Blog:
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