4. Omar’s hobby – Continuously developing new products without improving them
Omar has been fortunate enough to keep the company
Omar centralizes the operation on himself
Omar is not organized and the employees become frustrated sometimes
Omar believes that the next invention will be the best one – always!
4 Overview (3/6) – CEO Description
How does Omar run FIT?
6. xOMAR
6 Overview (5/6) – Divergent Opinions
The Case: Divergent Opinions
• Go to the next invention
• No investment
• Enter construction industry
• Large scale production
7. OMAR
FATHER FIGURE
INVENTOR (INNOVATIVE)
FOCUS ON PEOPLE (IN SOME WAYS)
INSPIRE (BY HIS CREATION)
LEADER – NOTMANAGER
NOT ORGANIZED
7 Overview (6/6) – What kind of leader is Omar ?
Omar’s Leadership
8. What type of leader does FIT require?
Innovate
Develop
Focus on people
Inspire
Long view
Ask what and why
Challenge status quo
Do the right thing
Administer
Maintain
Focus on systems and structure
Control
Short view
Ask how and when
Work with status quo
Do things right
Leaders Managers
Source: notes of Milton Krivokuca’s classes
8 What type of leader does FIT require? (1/4) – Leader’s characteristics
9. What type of leader does FIT require?
Innovate
Develop
Focus on people
Inspire
Long view
Ask what and why
Challenge status quo
Do the right thing
Administer
Maintain
Focus on systems and structure
Control
Short view
Ask how and when
Work with status quo
Do things right
Leaders Managers
Source: notes of Milton Krivokuca’s classes
9 What type of leader does FIT require? (2/4) – Manager’s characteristics
10. What type of leader does FIT require?
Contingent reward: contracts exchange
of rewards for efforts
Management by exception (active):
takes corrective action
Management by exception (passive):
intervenes only if standards are not met
Laissez–faire: abdicates responsibilities,
avoids making decisions
Charisma: provides vision and sense of
mission.
Inspiration: communicates, expresses
important purposes in simple ways.
Intellectual stimulation: promotes
intelligence, problem solving.
Individualized consideration: gives
personal attention, treats each
employee, coaches and advises.
Transactional Leadership Transformational Leadership
Source: Bass (1990, p.630)
10 What type of leader does FIT require? (3/4) – Transactional versus Transformational
11. What type of leader does FIT require?
Task Behavior
Low High
Relationship
Behavior
High PARTICIPATING SELLING
Low DELEGATING TELLING
11 What type of leader does FIT require? (4/4) – From Relationship to Task Behavior
12. Does a strategic framework exist ?
What strategic management means?
Analysis Decisions Actions
Articulation of goals and objectives
Planning approach involving customers and
employees
12 Does a strategic framework exist? (1/3) – The Theory of Strategic Framework
13. Does a strategic framework exist ?
13
His goal is to invent, use his imagination
“the next invention will be the ‘big winner’ for FIT”
Not profit oriented
Employees’ satisfaction
Team involvement: Informational sharing
Lack of feedback
Does a strategic framework exist? (2/3) – What really happens?
14. Does a strategic framework exist ?
14
Reacting to Problems
Achieving Strategic and Operational Goals with a Transformational Leader
15. Strengths – Intangible Resources
• Loyal employees
• High level of knowledge
• Positive work environment
• Quick learning and adaptability
• Personal relationship along the employees
Human
15 What are the strengths of FIT ? (1/3)
• Highly (!) innovative CEO
• Continuous creativity and development process
• Broad thinking
Innovation &
Creativity
• FIT is known for its specialty items for the consumer
leisure industry
• Always releasing new inventions
Reputation
16. Strengths – Tangible Resources
• Sound financial resources
• Financial stability (No crisis within the last 10 years!)Financial
16 What are the strengths of FIT ? (2/3)
•Material independent business
•25,000 square feet buildingPhysical
• Ability to design, produce and manufacture new
ideas (FIT implements complete production
process and value chain)
• In possession of basic machine tools
Technological
• Wide product distribution – Various types of gadgets
and tools
• Flat organization structure
Organizational
18. Weaknesses – Intangible Resources
• CEO’s hobby, no financial thinking
• CEO driven by excitement
• Employees’ frustration
Human
18 What are the weaknesses of FIT ? (1/2)
• Flat Organization structure
• Not a goal oriented culture
• Lack of team building
• Production oriented instead of customer oriented
• No planning approach
• No improvement approach: Plan/Do/Study/Act
Organizational
19. Weaknesses – Tangible Resources
• No long-term financial plan
• Unable to auto-finance strategic developmentFinancial
19 What are the weaknesses of FIT ? (2/2)
• Basic machine tools
• Investment required for large scale productionPhysical
• Doesn’t meet OSHA requirements
• Doesn’t achieve safety certification
• Unfamiliar technical field (construction industry)
Technological
20. Conclusion – Synthesis
Overview
Culture of the company:
“the next invention will be the ‘big winner’ for FIT”
Threat: Small, changing & not well defined market
Weaknesses
Divergent views on what success looks like, no definition of success
Tangibles assets and organization inadequate
No improvement nor development strategy, not customer oriented
Strengths
Under-used skilled and loyal team with potential managers
Under-developed Innovative ideas
CHANGE IS REQUIRED
20 Conclusion (1/3) – Change is required
21. Conclusion – What?
21
SET THE VISION
Gather the facts supporting the required change, market analysis
Define what success looks like, integrating customers and employees
Define the goals, with metrics
Define the type of change required:
Strategic, Technological, Structural, Behavior
Attitude towards risk:
Challenge status quo
Invest to enter new markets
Conclusion (2/3) – What kind of change ?
22. Conclusion – How?
22
LEAD THE CHANGE
Transformational & selling leadership
Resistance (political/cultural/individual/systematical)
Communication, participation, support through training, threats
Organizational culture & impacts on the team
From information sharing to special problem solving
From self managed teams to special project team with objectives
Process maturity: From reacting to early systematic
Implement improvement approach: Plan - Do - Study - Act
Conclusion (3/3) – How to lead the change?
23. THANK YOU VERY MUCH
FOR YOUR ATTENTION!
Are there any questions left?
Sisyphus was made to roll a huge boulder up a steep hill. Before he could reach the top, however, the massive stone would always roll back down, forcing him to begin again
