Managerial skills for MBA students

MANAGEMENT FAQs
STRATEGIC MANAGEMENT What is strategic management?
What is strategic planning?
What is the difference between strategic and long-range planning?
What is strategic thinking and strategic management?
What strategic planning is not!
What is a strategic plan?
When should a strategic plan be developed?
How are strategies developed?
What are some tools for analysis and planning?
What is SWOT Analysis?
What is the MacMillan Matrix?
KNOWLEDGE MANAGEMENT What is knowledge management
How are innovation and knowledge management related?
INFORMATION MANAGEMENT What is information management?
What are the benefits of information management?
What is the difference between data, information and knowledge?
What is an information strategy?
PROJECT MANAGEMENT What is the purpose of project management?
Why should the project be planned?
What is the most important safe guard provided by project planning?
Why should a company have a project management system?
Does each project have to create its own management system?
What are the tools needed for a project management system?
What should a project manager look for in a scheduling system?
What is a Work Breakdown Structure (WBS)?
DELEGATION MANAGEMENT Why use delegation?
What are the benefits of delegation for the manager?
What are the benefits of delegation for team members team?
How does delegation help decision making?

STRATEGIC MANAGEMENT
What is strategic management? Strategic management can be used to determine mission, vision,
values, goals, objectives, roles and responsibilities, timelines, etc.
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What is strategic planning? Strategic planning is a management tool, period. As with any management
tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure
that members of the organization are working toward the same goals, to assess and adjust the
organization's direction in response to a changing environment. In short, strategic planning is a
disciplined effort to produce fundamental decisions and actions that shape and guide what an organization
is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning
in Public and Nonprofit Organizations).
A word by word dissection of this definition provides the key elements that underlie the meaning and
success of a strategic planning process: The process is strategic because it involves preparing the best way
to respond to the circumstances of the organization's environment, whether or not its circumstances are
known in advance; nonprofits often must respond to dynamic and even hostile environments. Being
strategic, then, means being clearr bout the organization's objectives, being aware of the organization's
resources, and incorporating both into being consciously responsive to a dynamic environment.
The process is about planning because it involves intentionally setting goals (i.e., choosing a desired
future) and developing an approach to achieving those goals. The process is disciplined in that it calls for
a certain order and pattern to keep it focused and productive. The process raises a sequence of questions
that helps planners examine experience, test assumptions, gather and incorporate information about the
present, and anticipate the environment in which the organization will be working in the future.
Finally, the process is about fundamental decisions and actions because choices must be made in order to
answer the sequence of questions mentioned above. The plan is ultimately no more, and no less, than a set
of decisions about what to do, why to do it, and how to do it. Because it is impossible to do everything
that needs to be done in this world, strategic planning implies that some organizational decisions and
actions are more important than others - and that much of the strategy lies in making the tough decisions
about what is most important to achieving organizational success.
The strategic planning can be complex, challenging, and even messy, but it is always defined by the basic
ideas outlined above - and you can always return to these basics for insight into your own strategic
planning process.
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What is the difference between strategic planning and long-range planning? Although many use
these terms interchangeably, strategic planning and long-range planning differ in their emphasis on the

"assumed" environment. Long-range planning is generally considered to mean the development of a plan
for accomplishing a goal or set of goals over a period of several years, with the assumption that current
knowledge about future conditions is sufficiently reliable to ensure the plan's reliability over the duration
of its implementation. In the late fifties and early sixties, for example, the US. economy was relatively
stable and somewhat predictable, and, therefore, long-range planning was both fashionable and useful. On
the other hand, strategic planning assumes that an organization must be responsive to a dynamic,
changing environment (not the more stable environment assumed for long-range planning).
Certainly a common assumption has emerged in the nonprofit sector that the environment is indeed
changeable, often in unpredictable ways. Strategic planning, then, stresses the importance of making
decisions that will ensure the organization's ability to successfully respond to changes in the environment.
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What is strategic thinking and strategic management? Strategic planning is only useful if it supports
strategic thinking and leads to strategic management - the basis for an effective organization. Strategic
thinking means asking, "Are we doing the right thing?" Perhaps, more precisely, it means making that
assessment using three key requirements about strategic thinking: a definite purpose be in mind; an
understanding of the environment, particularly of the forces that affect or impede the fulfillment of that
purpose; and creativity in developing effective responses to those forces. It follows, then, that strategic
management is the application of strategic thinking to the job of leading an organization.
Dr. Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following
framework for understanding strategic management: continually asking the question, "Are we doing the
right thing?" It entails attention to the "big picture" and the willingness to adapt to changing
circumstances, and consists of the following three elements: formulation of the organization's future
mission in light of changing external factors such as regulation, competition, technology, and customers
development of a competitive strategy to achieve the mission creation of an organizational structure
which will deploy resources to successfully carry out its competitive strategy. Strategic management is
adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the
traditional approach of "if it ain't broke, don't fix it."
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What Strategic Planning Is Not! Everything said above to describe what strategic planning is can also
provide an understanding of what it is not. For example, it is about fundamental decisions and actions, but
it does not attempt to make future decisions (Steiner, 1979). Strategic planning involves anticipating the
future environment, but the decisions are made in the present. This means that over time, the organization
must stay abreast of changes in order to make the best decisions it can at any given point - it must
manage, as well as plan, strategically. Strategic planning has also been described as a tool - but it is not a
substitute for the exercise of judgment by leadership.
Ultimately, the leaders of any enterprise need to sit back and ask, and answer, "What are the most
important issues to respond to?" and "How shall we respond?" Just as the hammer does not create the
bookshelf, so the data analysis and decision-making tools of strategic planning do not make the
organization work - they can only support the intuition, reasoning skills, and judgment that people bring
to their organization.
Finally, strategic planning, though described as disciplined, does not typically flow smoothly from one
step to the next. It is a creative process, and the fresh insight arrived at today might very well alter the

decision made yesterday. Inevitably the process moves forward and back several times before arriving at
the final set of decisions. Therefore, no one should be surprised if the process feels less like a comfortable
trip on a commuter train, but rather like a ride on a roller coaster. But even roller coaster cars arrive at
their destination, as long as they stay on track!
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What is a strategic plan? In strategic planning it is critical to formally consider how your organization
will accomplish its goals. The answer to this question is a strategy. There are a variety of formal
definitions for strategies, but everyone fundamentally agrees that a strategy is the answer to the question,
"How?" "Strategies are simply a set of actions that enable an organization to achieve results." MAP
for Nonprofits, St. Paul, MN. "Strategy is a way of comparing your organization's strengths with the
changing environment in order to get an idea of how best to complete or serve client needs." Jim Fisk &
Robert Barron, The Official MBA Handbook.
Essentially, there are three different categories of strategies: organizational, programmatic, and
functional. The difference among the categories is the focus of the strategy: Organizational strategy
outlines the planned avenue for organizational development (e.g., collaborations, earned income, selection
of businesses, mergers, etc.). Programmatic strategy addresses how to develop, manage and deliver
programs (e.g., market a prenatal care service to disadvantaged expectant mothers by providing
information and intake services in welfare offices). Functional strategies articulate how to manage
administration and support needs that impact the organization's efficiency and effectiveness (e.g., develop
a financial system that provides accurate information using a cash accrual method).
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When should a strategic plan be developed? Strategy development follows the creation and affirmation
of the organization's purpose statement, environmental and program data collection and analysis, and
identification of critical issues. It is critical that strategy development follow these steps because the
information gathered and decisions made in these phases are the foundation for strategy creation and
selection. Each of these steps provides the following: The purpose statement, the statement of the
organization's ultimate goal, provides the direction to which the strategies should ultimately lead.
External market data and program evaluation results provide critical data to support strategy development.
Without this information and insight, the organization's strategies will not be in alignment with or
effective in the marketplace. The critical issues list serves as the specific focus and framework for the
activities of the organization and the pattern of these activities (developing and selecting the strategies).
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How are strategies developed? Strategy formulation is a combination of rational, scientific examinations
and educated, intuitive best guesses. Many individuals are overwhelmed by the idea of developing
strategies, but it can be a fun and invigorating process.
The process entails: examining the organization's critical issues determining how the organization's
strengths and skills can be employed to address the critical issues analyzing opportunities and strengths
and looking for ways to synthesize the two exploring and choosing the best approaches for the
organization. During this evaluation ask these key questions: Does the strategy meet/address critical
issues? Is this aligned with our mission? Is this approach financially viable? One effective method of
strategy generation is to list critical issues and organizational strengths onto flipcharts and then have staff

or board members brainstorm possible uses of those strengths or other skills to address the critical issues.
Once the brainstorm session is completed, use a roundtable discussion to investigate and evaluate the
possible strategies. Remember to develop a list of alternative strategies to investigate and keep in the
contingency planning file. It is important not to discount the ideas that come to people during non-
working hours.
The Polaroid camera is the result of a three year old's question to her father: "Dad, why can't I see the
picture now?"
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What are some tools for for analysis and planning? A number of analytical tools have been developed
to assist organizations with the planning process. Many nonprofit organizations have adapted these tools,
modifying the questions and criteria to align with their own specific services and markets. Listed below
are analytical tools frequently used by nonprofit and for-profit organizations.
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What is SWOT Analysis? SWOT analysis is a methodology of examining potential strategies derived
from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT). The
partnering of the different elements and the extensive data collected as a result of the analysis can serve as
a spark for roundtable discussions and refinement of current strategies or generation of new strategies.
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What is the MacMillan Matrix? This strategy grid, developed by Dr. Ian MacMillan, is specifically
designed to assist nonprofit organizations to formulate organizational strategies. There are three
assumptions underlying this approach: the need for resources is essentially competitive and all agencies
wanting to survive must acknowledge this dynamic given that resources are scarce, there is no room for
direct duplication of services to a single constituency -- this is wasteful and inefficient mediocre or low
quality service to a large client population is less preferable to delivering higher quality services to a more
focused population. These assumptions have implications that are difficult and painful for many
organizations and individuals. It might mean terminating some programs to improve core services and
competencies, giving programs and clients to more efficient, effective agencies, or competing
aggressively with those programs that are less effective or efficient. MacMillan's matrix examines four
program dimensions that guide placement on the strategy grid and indicate implied strategies.
Alignment with Mission Statement: Services or programs that are not in alignment with the organizational
mission, unable to draw on existing organizational skills or knowledge, unable to share resources, and/or
unable to coordinate activities across programs should be divested.
Competitive Position: Competitive position addresses the degree to which the organization has a stronger
capability and potential to fund the program and serve the client base than the competitive agencies.
Program Attractiveness: Program attractiveness is the complexity associated with managing a program.
Programs that have low client resistance, a growing client base, easy exit barriers, and stable financial
resources are considered simple or "easy to administer." The level of program attractiveness also includes
an economic perspective or a review of current and future resource investments.

Alternative Coverage: Alternative coverage is the number of other organizations attempting to deliver or
succeeding in delivering a similar program in the same region to similar constituents.
The MacMillan Matrix provides ten cells in which to place programs that have been reviewed in terms of
these four dimensions. Each cell is assigned a strategy that directs the future of the program (s) listed in
the cell (e.g., aggressive competition, joint venture, orderly divestment, etc.). One cell of the matrix,
"Soul of the Agency," requires additional explanation. These are the difficult programs for which the
organization is often the clients' "last, best hope." Management must find ways to use the programs in
other cells to develop, piggyback, subsidize, leverage, promote, or otherwise support the programs in this
category.
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KNOWLEDGE MANAGEMENT
What is knowledge management? Getting the right information to the right people at the right time -- to
enable the right actions.
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How are innovation and knowledge management related? Innovation is the most evolved stage in the
development of knowledge management. The first stage is data, the second is information, the third is
knowledge, and the fourth is innovation.
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INFORMATION MANAGEMENT
What is information management? Information management (IM) is the harnessing of the information
resources and information capabilities of the organization in order to add and create value both for itself
and for its clients or customers. Information management is the management of organizational processes
and systems that acquire, create, organize, distribute, and use information. We adopt a process view of
information management. In this view, IM is a continuous cycle of five closely related activities:
 identification of information needs;
 acquisition and creation of information;
 organization and storage of information;
 information dissemination;
 information use.
The idea underlying IM is that just as an organization purposefully and systematically manages its human
resources or financial assets, it should do likewise for its information resources and processes. All the
classic functions of managing an organizational activity apply to IM as well: defining goals, providing
leadership, developing policies, allocating resources, training staff, evaluation and feedback.
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What are the benefits of information management? Generally speaking, there are four kinds of
benefits from managing information strategically:

 reduce costs;
 reduce uncertainty or risks;
 add value to existing products or services;
 create new value through new information-based products or services.
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What is the difference between data, information and knowledge? Consider a document containing a
table of numbers indicating product sales for the quarter. As they stand, these numbers are Data. An
employee reads these numbers, recognizes the name and nature of the product, and notices that the
numbers are below last year’s figures, indicating a downward trend. The data has become Information.
The employee considers possible explanations for the product decline (perhaps using additional
information and personal judgment), and comes to the conclusion that the product is no longer attractive
to its customers. This new belief, derived from reasoning and reflection, is Knowledge. Thus, information
is data given context, and endowed with meaning and significance. Knowledge is information that is
transformed through reasoning and reflection into beliefs, concepts, and mental models.
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What is an information strategy? An information strategy describes the overall direction and general
framework in which the organization’s information resources and processes should be managed so that
the organization would achieve its most important goals. An Information Strategy typically consists of
the following: IM goals and objectives that are well aligned with the organization’s mission and vision
IM principles that articulate desirable outcomes and form the foundation for developing information
policies One or more areas of strategic focus: this could be some critical information content; common
information to be shared; some information-intensive process; or new information-based products or
services.
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PROJECT MANAGEMENT
What is the purpose of project management? To provide management with valid, auditable status on
which to base management decisions.
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Why should the project be planned? The main reason for planning a project is for cost expediency.
Proper project planning will insure that the amount of work to be accomplished, the time allotted to
satisfactory complete the work scope, and the resources required to complete the work scope are equally
balanced. Every project undergoes some amount of change while in progress. Proper planning allows for
the assessment of the impact of change prior to implementing the change.
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What is the most important safe guard provided by project planning? Proper planning includes the
documentation of the work scope in language that is understandable by the individuals who must
accomplish the work scope. This single step when properly accomplished will save many false starts as
well as preventing the waste of resources working on efforts which are not required to obtain the desired
goals of the project.

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Why should a company have a project management system? The customer may wish to know how
the company manages a project. The customer wants some assurance that the company can deliver the
project on time and within budget. Senior management wants a valid insight on how the project is
progressing. History is required of past performance so that new proposals can be created based on fact.
The company desires to be a superior performer when compared to the competition.
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Does each project have to create its own management system? The style of the individual project
manager will normally vary for each project. It is the responsibility of senior management to put in place
a policy and procedure, supported by a selection of project management tools and formats, which will
assure that the status reporting is readable, auditable, and valid.
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What are the tools needed for a project management system? A work definition policy and format, a
scheduling procedure, a resource budgeting methodology and format, a real time data collection/reporting
system, a material control and accountability subsystem, a change control subsystem, and a monthly
formal status review format to be used by senior management.
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What should the project manager look for in a scheduling system? The three basic elements that the
project scheduling systems should provide are; a common basis for communication at all operational
levels of the project, a basis for regular status reporting, the use of the management by exception
technique.
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What is a Work Breakdown Structure (WBS)? The work breakdown structure defines the total
project. A work breakdown structure is a product oriented, family tree composed of hardware elements,
software elements, and service elements. The work breakdown structure relates project elements or work
scope definitions to each other and to the end product. The work breakdown structure is not an
organization chart of company personnel.
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DELEGATION MANAGEMENT
Why use delegation? Although delegating is one of the most difficult aspects of any management job,
there are many important benefits derived by the organization as well as the manager when tasks and
responsibilities are properly delegated. Through delegation, you can ease the job of managing and thereby
increase your own effectiveness and that of the work group.
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What are the benefits of delegation to the manager? Everybody wins with effective delegation, but

delegation is especially important if you want to survive and grow in an organization. Here is how
delegation can help the manager:
 Allows the manager to achieve more. Probably one of the most significant benefits is that you
can achieve greater productivity. Through the proper selection, assignment, and coordination of
tasks, you can mobilize resources to achieve more than would have been individually possible.
 Allows time for managerial activities. Delegation gives you an opportunity to handle aspects of
the job that no one else can do. These activities might include project planning, monitoring team
members, and handling personnel problems as they arise. Using delegation, you can focus on
doing a few tasks well rather than too many tasks poorly. Increases managerial promotion
potential.
 Personal advancement. If you don't have people in the department who are trained to handle
responsibilities, you will be shackled to one area and won't be considered for promotion. John
Henry Patterson, founder of National Cash Register Company, used to walk into his departments
and order the managers to take two-week vacations. His motive: to determine whether a team
member had been adequately trained to take over the supervisor's job on short notice. The key to
such training, Patterson believed was delegating--providing the team member with the
experience, knowledge, and responsibility needed for a smooth transition. Managers who don't
delegate don't have trained team members to take their places. Managers who aren't able to
delegate at their current level won't be able to delegate at the next. Their ineffectiveness thus
multiplies with each level in the organization.
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What are the benefits of delegation for team members? Your team members are more highly
motivated with effective delegation.
 Develops team members' skills. Failure to effectively delegate deprives team members of
opportunities to improve their skills and assume greater responsibility. Team members realize
that they are not learning and gaining the experience they could. As a result, they may leave the
firm for more challenging and supportive environments. Unfortunately, the most talented team
members are the most likely to leave and those you least want to lose. A routine task for you is
often a growth opportunity for a team member. Delegating a wide variety of assignments not only
serves to train team members, it allows for backup personnel in times of emergency or
termination of other employees. When others are well-versed in handling the responsibilities of
different areas, you attain maximum flexibility and ensure that the project will not be at a
standstill in your absence.
 Increases team member involvement. Proper delegation encourages team members to understand
and influence the work the department does. It allows team members a chance to incorporate their
values in the workplace and, in many cases, to work on activities that especially interest them.
Increasing team members' involvement in the workplace increases their enthusiasm and initiative.
Increases promotion potential. As with managers, a team member who receives extensive
delegation will be ready and able to advance to new positions. In this regard, delegation serves
both to train and to test an employee. Benefits to the Organization If both managers and team
members benefit from delegation, it follows that the organization as a whole benefits.
 Maximizes efficient output. When you delegate tasks according to the skills and abilities of each
member of the work group, the department as a whole is likely to produce a higher level of work.
Work will also be completed more efficiently. Delegation helps you make the best use of
available human resources and achieve the highest possible rate of productivity. In addition, it
allows new ideas, viewpoints, and suggestions to flourish. Produces faster, more effective

decisions.
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How does delegation help decision making? Effective delegation makes for faster, more effective
decision making. An organization is most responsive to change in the environment when decisions are
made by those individuals closest to the problems; that is, responsibility and decision making are pushed
further down in an organization. Individuals closest to the problem have the most information on which to
base an intelligent decision. Decision making can be achieved more expediently through delegation, thus
allowing the organization to be more responsive and hence more competitive. When team members
participate in decision making there is an increase in employee motivation, morale, and job performance.
The greater the employee participation, the greater the employee commitment to the job and the
organization! Increases flexibility of operations.
Effective delegation trains many people to do the same assignments. This overlap allows for greater
flexibility of work assignments. When someone is absent or a crisis requires people to assist with tasks
not regularly a part of their jobs, they will already be familiar with the assignment. Delegation prepares
more individuals for promotion or rotation of responsibilities. And it allows you to appoint someone to
supervise the work group when you're absent.
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UNIT - 1
Thinking Strategies:
Strategic thinking:
Strategic thinking is defined as a mental or thinking process applied by an individual in the context of
achieving success in a game or other endeavor. As a cognitive activity, it produces thought.
When applied in an organizational strategic management process, strategic thinking involves the generation
and application of unique business insights and opportunities intended to create competitive advantage for a
firm or organization. It can be done individually, as well as collaboratively among key people who can positively
alter an organization‘s future. Group strategic thinking may create more value by enabling
a proactive and creative dialogue, where individuals gain other people's perspectives on critical and complex
issues. This is regarded as a benefit in highly competitive and fast-changing business landscapes.
Strategic thinking - Meaning:
The ability to come up with effective plans in line with an organization's objectives within a particular
economic situation. Strategic thinking helps business managers review policy issues, perform long term
planning, set goals and determine priorities, and identify potential risks and opportunities.

Strategic thinking - Questions:
Refer all above questions
Things included in Strategic Thinking:
Process Consideration in S.T.:
Strategic Thinking Process
Overview
Traditionally, Strategic Planning omits the step of innovative thinking that is so critical to business
success, in particular, at the departmental level. Strategic Thinking is a more comprehensive planning
model that covers innovation, strategic planning and operational planning. Strategy has never been
more challenging, or more important, than in today's environment of global competition in which
corporate strategies must transcend the borders of nations and markets. Too many organizations try
to be everything to everyone, wasting resources in markets that may never provide a worthwhile
return on investment.
Strategic Thinking is a planning process that applies innovation, strategic planning and operational
planning to develop business strategies that have a greater chance for success.
Consulting Process
Business Improvement Architects focuses on the development of more creative and innovative
strategies, ensuring that departmental strategies are linked to the overall corporate strategic plan.
This includes understanding the voice of the customer, conducting benchmarking and identifying
opportunities to engage employees throughout the strategic thinking process. A focus on developing,
guiding and facilitating the strategic thinking skills of the leaders is made and these leaders will learn
how to create an inclusive, strategic conversation throughout the strategic thinking process. The
application of innovation to the development of key strategies is explored as well as how to ensure the
strategies are successfully implemented.
Key Elements of the Strategic Thinking Consulting Process
Understanding the Voice of the Customer
 We start with a review of the voice of the customer process. This includes determining
customer satisfaction levels by reviewing previously collected information (if it exists),
informal customer feedback and/or formal customer feedback. If there is little customer
feedback then we determine which data collection method to use including email or web-based
surveys, telephone interviews, focus groups, observation and prototyping. If there is a large
customer data based then we determine what customer sample size to ensure the "right"
number of customers is included.

Employee Involvement
 Success in the execution of the strategies is very dependent upon the buy-in and acceptance
of the employees. We ensure that the department gets employees involved in the
development of innovation, strategy and operational effectiveness through feedback sessions
before, during and after the strategic thinking process. Gaining employee understanding of
how the work they perform links to the realization of the departmental strategies and the
corporate strategic plan is critical to the successful implementation of the key strategies.
Benchmarking
 In order to bring into the department best practices we will engage the management team in
an exploration of benchmarking. This will include ensuring that there is a clear understanding
on how to benchmark against others to compare operational effectiveness. We will also review
the difference between a competitive analysis and a benchmarking analysis. The inclusion and
review of international quality awards is presented as another source of benchmarking.
Innovation
 The management team will then be taken through an innovation process in an effort to get
them into the realm of creative thinking. This will ensure that they develop the best overall
strategies, not just the obvious ones. The innovation process will guide the management team
to create the ideal future, the plans needed to achieve them, the wisdom to see them through,
and the team to develop them.
The Strategic Opportunities
 A review of the organizational strategic plan will help the management team understand how
to link their planning and strategy development with the corporate vision. Management will
gain an understanding on how the strategic thinking model will enable these leaders to
cascade the corporate plan throughout their departments to ensure success in the realization
of the strategic imperatives they're developing.
Operational Effectiveness
 The management will now be ready to develop an operational effectiveness plan which will
ensure that their strategic plan is cascaded through their department. There will be
discussions on how to ensure the involvement of all employees in the process. As well,
measurements will be defined and established to ensure success. These will become the
measurable standards against which to benchmark the successful implementation of the
strategic thinking process.
Strategic thinking competencies
Liedtka observed five ―major attributes of strategic thinking in practice‖ that resemble competencies.[14]

The first competency, a systems perspective, refers to being able to understand implications of strategic
actions. "A strategic thinker has a mental model of the complete end-to-end system of value creation, his or her
role within it, and an understanding of the competencies it contains."
A second competency underlying strategic thinking is intent focused which means more determined and less
distractible than rivals in the marketplace. Crediting Hamel and Prahalad with popularising the concept, Liedtka
describes strategic intent as "the focus that allows individuals within an organization to marshal and leverage
their energy, to focus attention, to resist distraction, and to concentrate for as long as it takes to achieve a goal.
Thinking in time means being able to hold past, present and future in mind at the same time to create better
decision making and speed implementation. "Strategy is not driven by future intent alone. It is the gap between
today‘s reality and intent for the future that is critical." Scenario planning is a practical application for
incorporating "thinking in time" into strategy making. A fourth strategic thinking competency is being hypothesis
driven, ensuring that both creative and critical thinking are incorporated into strategy making. This competency
explicitly incorporates the scientific method into strategic thinking
The final strategic thinking competency is intelligent opportunism, which means being responsive to good
opportunities. "The dilemma involved in using a well-articulated strategy to channel organisational efforts
effectively and efficiently must always be balanced against the risks of losing sight of alternative strategies
better suited to a changing environment."
Importance of Strategic Thinking
Many companies struggle with understanding their customers and overall market. This is very
dangerous because it inhibits the firm to be able to develop and execute an effective strategy.
Another popular problem many companies experience is the tendency of trying to be everything to
everyone. This usually holds a company back from creating an excellent product. Instead, the firm
will have a large variety of mediocre goods. If the company has planned for this approach it can still
be quite effective; however, in order to efficiently maximize profits with this approach, the company
has to be a low cost leader. The whole point of this discussion is that employees need to learn how
to implement strategic thinking. They need to learn how to position their products and prices in the
market in order to create a competitive advantage. With this competitive advantage, companies will

capture a large market share and generate large profits. This will impress all steak-holders of the
firm and raise the overall company value.
When positioning a product in the market there are 5 general segments. These include the high cost,
performance, traditional, size, and low cost. As time goes on, consumers are going to demand all
goods to have better performance and smaller size. In many industries including: vehicles,
computers, cell phones, motorcycles, and many other products, these are two most important
characteristics. All of thefive segments are positioned on the same grid but in different areas. When
thinking about the different section think about a perceptual map that has two different criteria. Look
to the picture on the right hand of the screen but substitute the values with the ones I am going to
list. On one side there is the size of the good. The higher the unit is on the map the larger the size.
On the other vertices is the performance. As the product moves from left to right the performance
improves. These two criteria determine which segment the product fits under. The five different
segments are presented as large circles that move toward lower size and higher performance as
time goes on. These circles never intersect but move diagonal together. An example of this would be
a circle that represents the low cost division. It would be positioned in the upper left hand corner.
This would represent that it has the largest size and the worst performance. Directly below the low
cost is the size section. It has a lower size than the low cost, but has the same performance. In the
middle of the five segments is the traditional. It is a little bit bigger than the size section but smaller
than the low cost. It has better performance than both of them. The performance section is on the
right corner of the size section. It has a larger size than traditional but much better performance than
the other three. The last segment is the high-cost. It is positioned off the bottom right tip of the
traditional. It has the lowest size and the highest performance of all sectors. The costs of the goods
are going to be in direct correlation to the size and performance of the widget. Companies need to
think which segment they are going to pursue. They also need to plan for the future and design a
product that can be competitive in their industry.
There are many different factors that will determine what segment a person fits into. For example, a
family of 5 with total income at $50,000 is probably not going to be looking for a car in the
performance or high-cost section. They are going to be much more interested in purchasing a
traditional or low-cost vehicle. On the other end of the spectrum would be a single, college graduate
that makes $75,000 a year. He would be more interested in a car that fits in the size or high-cost
section. He is going to value a small performance based vehicle over a low cost minivan.
Companies need to determine which segment they can gain the most market share. This will help it
on the production side as well as the finance department.Strategic thinking is the art of looking at all
of the outside factors. It is thinking of a solution that solves all the problems in the least cost method
possible. Companies are constantly looking for employees that can implement strategic
thinking skills. They want people that are going to be able to solve difficult problems with creative
ideas. The first step in positioning a product is to gain a detailed understanding of the market. It is
important to do significant research so you can analyze the different forces in the market. After this is
done, you can proceed to look at your company‘s strengths, weaknesses, opportunities, and threats.
This will give you an idea on where you company should place its precious resources. The third

basic step is to give your actual suggestion on what the company should do. It is important to back
up your recommendations with marketing research and statistical facts. Lastly, it is essential to have
a control mechanism to keep track of how your recommendations are playing out.
Executing strategic problem solving is going to be very beneficial to your company, and raise your
overall market worth. Through practice and dedication it is possible to understand a market and
make excellent managerial recommendations.
5 Characteristics of Strategic Thinkers
We have argued frequently that researchers are in the best position to provide strategic
guidance to their organization. As researchers we think about things like how you can get more folks to benefit from
insight by sharing our foundational knowledge and how to embed customer knowledge in a way thatfits executive
decision-making processes. That‘s right…STRATEGIC thinking!
Innovation Excellence recently published a blog on 5 characteristics of the best strategic thinkers, and I think many
of these will be familiar to your daily research lives:
1. Open yourself to perspectives from multiple sources—this isn‘t about having more data points than
others, it‘s about putting them together properly. We‘ve done the analysis, and know that decision makers feel
more confident in their decisions if they used more data points to get to them. But we also found that decision
makers struggle to make the best decisions without help with interpreting the data. Researcher synthesis
skills can give you a real leg-up in the strategic decision-making process.
2. Incorporate BOTH logic and emotion into your thinking—emotional drivers matter, especially when
you‘re trying to get the organization to take action. We have found that the most successful way to re-educate
executives when their assumptions are wrong is by engineering learning moments: using multi-sensory
experiences that make the decision makers feel the emotion that comes with new, convention-breaking insights.
3. Seek options beyond today’s reality—don‘t let the current state of affairs have too much impact on future
decisions. A great Research example of this is the trends trend. Decision makers like to ask for trends to try to
identify ―the next big thing.‖ But we‘ve seen companies have much more success growing their company when
they shift Research‘s focus from megatrends tracking to opportunity identification.

4. Question both the familiar and the to-be-determined—in other words, be curious. As the Science
channel promo goes: Question Everything. We‘ve done the quant on this too, and have confirmed
thatintellectually curious people provide significantly better insights to the organization.
5. Accept open issues—this may be the most difficult for us. As researchers, by nature we are looking for
answers. But the most successful Research departments are the ones that encourage principled risk-taking.
Waiting for all of the facts to come in to make the ―right decision‖ will keep you waiting around forever. Use your
judgment when guiding the organization: it‘s how true insights are made.
How can you tell if you are a strategic thinker? Compare these eight characteristics and their opposite to
determine your strategic thinking style.
Lateral thinking

Lateral thinking is solving problems through an indirect and creative approach, using reasoning that is not
immediately obvious and involving ideas that may not be obtainable by using only traditional step-by-step logic.
The term was coined in 1967 by Edward de Bono.
According to de Bono, lateral thinking deliberately distances itself from standard perceptions of creativity as
either "vertical" logic (the classic method for problem solving: working out the solution step-by-step from the
given data) or "horizontal" imagination (having a thousand ideas but being unconcerned with the detailed
implementation of them).
Methods
Critical thinking is primarily concerned with judging the true value of statements and seeking errors. Lateral
thinking is more concerned with the movement value of statements and ideas. A person uses lateral thinking to
move from one known idea to creating new ideas. Edward de Bono defines four types of thinking tools:
 Idea generating tools that are designed to break current thinking patterns—routine patterns, the status
quo
 Focus tools that are designed to broaden where to search for new ideas
 Harvest tools that are designed to ensure more value is received from idea generating output
 Treatment tools that are designed to consider real-world constraints, resources, and support[1]
Random Entry Idea Generating Tool: The thinker chooses an object at random, or a noun from a dictionary,
and associates it with the area they are thinking about. For example, if they are thinking about how to improve
a website, an object chosen at random from the environment around them might be a fax machine. A fax
machine transmits images over the phone to paper. Fax machines are becoming rare. People send faxes
directly to phone numbers. Perhaps this could suggest a new way to embed the website's content
in emails and other sites.
Provocation Idea Generating Tool: The use any of the provocation techniques—wishful
thinking, exaggeration, reversal, escape, distortion, or arising. The thinker creates a list of provocations and
then uses the most outlandish ones to move their thinking forward to new ideas.
Movement Techniques: The thinker develops provocation operations by the following methods: extract a
principle, focus on the difference, moment to moment, positive aspects, special circumstances.
Challenge Idea Generating Tool: A tool which is designed to ask the question "Why?" in a non-threatening
way: why something exists, why it is done the way it is. The result is a very clear understanding of "Why?"
which naturally leads to fresh new ideas. The goal is to be able to challenge anything at all, not just items which
are problems. For example, one could challenge the handles on coffee cups. The reason for the handle seems
to be that the cup is often too hot to hold directly. Perhaps coffee cups could be made with insulated finger
grips, or there could be separate coffee cup holders similar to beer holders.
Concept Fan Idea Generating Tool: Ideas carry out concepts. This tool systematically expands the range and
number of concepts in order to end up with a very broad range of ideas to consider.
Disproving: Based on the idea that the majority is always wrong (as suggested by Henrik Ibsen and John
Kenneth Galbraith), take anything that is obvious and generally accepted as "goes without saying", question it,
take an opposite view, and try to convincingly disprove it. This technique is similar to de Bono's "Black Hat" of
the Six Thinking Hats, which looks at the ways in which something will not work.

Lateral thinking and problem solving
Problem Solving: When something creates a problem, the performance or the status quo of the situation
drops. Problem solving deals with finding out what caused the problem and then figuring out ways to fix the
problem. The objective is to get the situation to where it should be.
For example, a production line has an established run rate of 1000 items per hour. Suddenly, the run rate drops
to 800 items per hour. Ideas as to why this happened and solutions to repair the production line must be
thought of, such as giving the worker a pay raise.
Creative Problem Solving: Using creativity, one must solve a problem in an indirect and unconventional
manner.
For example, if a production line produced 1000 books per hour, creative problem solving could find ways to
produce more books per hour, use the production line, or reduce the cost to run the production line.
Creative Problem Identification: Many of the greatest non-technological innovations are identified while
realizing an improved process or design in everyday objects and tasks either by accidental chance or by
studying and documenting real world experience.
Lateral Thinking puzzles: These are puzzles that are supposed to demonstrate what lateral thinking is about.
However any puzzle that has only one solution is "not" lateral. While lateral thinking may help you construct
such puzzles, the lateral thinking tools will seldom help you solve puzzles.
Lateral Problem "Solving": Lateral thinking will often produce solutions whereby the problem appears as
"obvious" in hindsight. That lateral thinking will often lead to problems that you never knew you had, or it will
solve simple problems that have a huge potential.
For example, if a production line produced 1000 books per hour, lateral thinking may suggest that a drop in
output to 800 would lead to higher quality, more motivated workers etc. etc.
Conventional Leadership vs. Lateral Leadership
Is this the sort of leadership that your school or district needs? More from from Paul Sloane‘s list of
Conventional Leaders vs. Lateral Leaders found in his book The Leader‘s Guide To Lateral Thinking
Skills.

Lateral Thinking
"The Lateral Thinking creativity program provides you with a number of proven and concrete ways to learn
the power of creativity and innovation." - Edward de Bono
Who Needs Lateral Thinking?
Not only people who devise strategy or work in R & D, but anyone who wants a disciplined process for
innovation, idea generation, concept development, creative problem solving, or a strategy to challenge the
status quo can benefit from Lateral Thinking.
If you face fast-changing trends, fierce competition, and the need to work miracles, you need Lateral
Thinking.
Lateral Thinking Techniques
1. Alternatives / Concept Extraction: Use concepts to breed new ideas
2. Focus: Sharpen or change your focus to improve your creative efforts
3. Challenge: Break free from the limits of accepted ways of operating
4. Random Entry: Use unconnected input to open new lines of thinking
5. Provocation: Move from a provocative statement to useful ideas
6. Harvesting: Select the best of early ideas and shape them into useable approaches
7. Treatment of Ideas: Develop ideas and shape them to fit an organization or situation
"Great business competitors are great lateral thinkers . . ." - Edward de Bono
How Might You Use Lateral Thinking?
The Lateral Thinking techniques are useful in a variety of applications.
 Constructively challenge the status quo to enable new ideas to surface
 Find and build on the concept behind an idea to create more ideas
 Solve problems in ways that don‘t initially come to mind
 Use alternatives to liberate and harness the creative energy of the organization
 Turn problems into opportunities
 Select the best alternate ideas and implement them
Edward de Bono's Lateral Thinking
Imagine being able to:
- consistently stay one step ahead of the competition
- solve problems as they arise
- innovate as a matter of course.
Edward de Bono's Lateral Thinking can help your team to do all of this. A logical process for
creativity and innovation, it's a must-have in a world where it's essential to stay ahead of the
competition.

The benefits of Lateral Thinking
Lateral Thinking is the tool that more and more organisations are using to:
- come up with innovative new products and services
- solve problems
- find new ways of working
- enable a creative, positive culture.
Lateral Thinking Programmes
The most effective way to get your people thinking creatively is to train them in Lateral Thinking.
Our two-day programme will get your people using Lateral Thinking techniques confidently and
effectively.
Tailored to your organisation's needs,an in-company programme will be relevant, good value, and
instantly usable.
Who is Edward de Bono?
Dr Edward de Bono is regarded by many as the world's leading authority in creative thinking and the
direct teaching of thinking as a skill. The originator of the term 'lateral thinking', he has written over
60 books and lectured in more than 50 countries.
Want to know more about Edward de Bono's Lateral Thinking and how it can benefit you? Call us
now on 01670 762083 or email us. We're based in Northumberland but work throughout the UK.
Key Concepts for the Conventional Leader Key Concepts for the Lateral Leader
Action: an activity, deed or operation.
Thinking: the process of forming, conceiving or
resolving in the mind.
Result: an outcome, decision, win or loss.
Creativity: the ability to bring something new into
being through the force of imagination.
Improvement: a change for the better, the
process of making things more efficient or more
valuable.
Innovation: the act of introducing or implementing
something new or revolutionary.
The Conventional Leader.... The Lateral Leader....
Leads from the front. Leads from the side.
Directs. Inspires.
Uses conventional methods and seeks to
improve effectiveness and efficiency.
Develops new methods and seeks to change the
rules, change partners or change the approach to

the problem.
Thinks he knows best (and often does). Harnesses the abilities of others.
Has a strong sense of direction and purpose. Has a vision and uses it to inspire others.
Spends more time on improving day-to-day
operational matters than strategic issues.
Spends more time on finding new strategic
initiatives and partners than on solving operational
or day-to-day matters.
Gives directions and orders. Ask questions, solicits suggestions and delegates.
Looks for greater efficiency, more productivity,
faster development, more aggressive sales and
marketing.
Looks for new ways to do things, new approaches
to the customer, new solutions, new partnerships.
Treats staff as subordinates. Treats staff as colleagues.
Is decisive, often without prior consultation. Solicits views and inputs before making decisions.
Builds an effective team of managers who can
execute policy and implement plans.
Builds a team of creative, entrepreneurial
individuals
Focus on actions and results.
Focus on directions and innovation to achieve
results.
Instructs. Empowers.
Hires based on experience, proven track record
and qualifications.
Hires based on experience, creativity and latent
capabilities.
Discourages dissent. Encourages constructive dissent.
Cares about results above all. Cares about ideas, peoples and the "vision".
Promotes himself as the leader and figurehead
with press, customers and outside world.
Shares exposure and prestige with the team.
Encourages action, activity and work. Encourages ideas, innovation and fun.
Rewards performance. Rewards creativity.
Is numbers-oriented and analytical. Is ideas-oriented, analytical and intuitive.
Sees technology as a means to do things
better, faster and cheaper.
Sees technology as a means to do things entirely
differently.
Overrules ideas and initiatives which he sees as
flawed or wrong.
Encourages all initiative and often implements
ideas or suggestions over which he has misgivings.
Communicates through memos and e-mail. Communicates through open discussion.

Lateral leadership is about exerting influence without hierarchical authority. Flatter management structures, matrix
organizations, project management, outsourcing, and virtual teams all mean that managers have to get things done
through a greater number of people both inside and outside their organization, where the possibility of using classical
leadership tools are limited. In such situations new competencies are becoming important and this partnership
approach requires managers to achieve their goals by using a variety of tools and methods for influencing others.
This training will help participants learn these instruments and their implementation.
UNIT - II
INTERPERSONAL STRATEGIES
Conflict resolution
Conflict resolution is conceptualized as the methods and processes involved in facilitating the peaceful
ending of conflict. Often, committed group members attempt to resolve group conflicts by actively
communicating information about their conflicting motives or ideologies to the rest of the group (e.g., intentions;
reasons for holding certain beliefs), and by engaging in collectivenegotiation.[1]
Ultimately, a wide range of
methods and procedures for addressing conflict exist, including but not limited
to, negotiation, mediation, diplomacy, and creative peacebuilding.
The term conflict resolution may also be used interchangeably with dispute resolution, where arbitration and
litigation processes are critically involved. Furthermore, the concept of conflict resolution can be thought to
encompass the use of nonviolent resistance measures by conflicted parties in an attempt to promote effective
resolution.[2]
Conflict resolution as an academic field is relatively new. George Mason University in Fairfax,
VA was the first university to offer a PhD program.
Theories and models[edit source]
Dual concern model of conflict resolution[edit source]
The dual concern model of conflict resolution is a conceptual perspective that assumes individuals‘ preferred
method of dealing with conflict is based on two underlying themes or dimensions:[1]
1. A concern for self (i.e. assertiveness), and
2. A concern for others (i.e. empathy).
According to the model, group members balance their concern for satisfying personal needs and interests with
their concern for satisfying the needs and interests of others in different ways. The intersection point between
these two dimensions ultimately lead individuals towards exhibiting different styles of conflict resolution
(Goldfien & Robbennolt, 2007).[3]
The dual model identifies five conflictresolution styles/strategies that
individuals may use depending on their dispositions toward pro-self or pro-social goals.
1. Avoidance conflict style

Characterized by inaction and passivity, avoidance conflict style is typically used when an individual
has reduced concern for their own outcomes as well as the outcomes of others. During conflict, these
avoiders adopt a ―wait and see‖ attitude, often allowing conflict to phase out on its own without any
personal involvement (Bayazit & Mannix, 2003).[4]
Unfortunately, by neglecting to address high-conflict
situations, avoiders risk allowing problems to fester out of control.
2. Yielding conflict style
In contrast, yielding or ―accommodating‖ conflict styles are characterized by a high concern for others
while having a low concern for one‘s own self. This passive pro-social approach emerges when
individuals derive personal satisfaction from meeting the needs of others and have a general concern
for maintaining stable, positive social relationships.[1]
When faced with conflict, individuals with a
yielding conflict style tend to give into others‘ demands out of respect for the social relationship
3. Competitive conflict style
Competitive or ―fighting‖ conflict style maximizes individual assertiveness (i.e., concern for self) and
minimizes empathy (i.e., concern for others). Groups consisting of competitive members generally
enjoy seeking domination over others, and typically see conflict as a ―win or lose‖
predicament.[1]
Fighters tend to force others to accept their personal views by employing competitive,
power tactics (e.g., argue; insult; accuse; violence) that foster feelings of intimidation (Morrill, 1995).
4. Cooperation conflict style
Characterized by an active concern for both pro-social and pro-self behavior, cooperation conflict style
is typically used when an individual has elevated interests in their own outcomes as well as in the
outcomes of others. During conflict, cooperators collaborate with others in an effort to find an amicable
solution that satisfies all parties involved in the conflict. Individuals with this type of conflict style tend to
be highly assertive and highly empathetic at the same time.[3]
By seeing conflict as a creative
opportunity, collaborators willingly invest time and resources into finding a ―win-win‖
solution.[1]
According to the literature on conflict resolution, a cooperative conflict resolution style is
recommended above all others (Sternberg & Dobson, 1987; Jarboe & Witteman, 1996)[5][6]
5. Conciliation conflict style
Conciliation or ―compromising‖ conflict style is typical of individuals who possess an intermediate-level
of concern for both personal and others‘ outcomes. Compromisers value fairness and, in doing so,
anticipate mutual give-and-take interactions.[3]
By accepting some demands put forth by others,
compromisers believe this agreeableness will encourage others to meet half-way, thus promoting
conflict resolution (van de Vliert & Euwema, 1994).[7]
This conflict style can be considered an extension
of both ―yielding‖ and ―cooperative‖ strategies.[1]

Political Conflict Resolution in Practice[edit source]
Moshe Dayan and Abdullah el Tell reach a cease fire agreement during the 1948 Arab–Israeli War,
Jerusalem. 30 November 1948
Wars occur between warring parties who contest an incompatibility. The nature of an
incompatibility can either be territorial or governmental but a warring party must be a
"government of a state or any opposition organisation or alliance of organisations that
usesarmed force to promote its position in the incompatibility in an intrastate or an
interstate armed conflict."[8]
Wars sometimes conclude with a peace agreement, defined
as a "formal agreement between warring parties, which addresses the disputed
incompatibility, either by settling all or part of it, or by clearly outlining a process for how
the warring parties plan to regulate the incompatibility."[9]
A Ceasefire is another form of
agreement between waring parties but unlike a peace agreement it only "regulates the
conflict behaviour of warring parties... [and] does not address the incompatibility."[10]
Culture-based[edit source]
Conflict resolution as both a professional practice and academic field is highly sensitive
to culture. In Western cultural contexts, such asCanada and the United States,
successful conflict resolution usually involves fostering communication among
disputants, problem solving, and drafting agreements that meet their underlying needs.
In these situations, conflict resolvers often talk about finding the win-win solution, or
mutually satisfying scenario, for everyone involved (see Fisher and Ury (1981), Getting
to Yes). In many non-Western cultural contexts, such as Afghanistan, Vietnam,
and China, it is also important to find "win-win" solutions; however, getting there can be
very different. In these contexts, direct communication between disputants that explicitly
addresses the issues at stake in the conflict can be perceived as very rude, making the
conflict worse and delaying resolution. Rather, it can make sense to involve religious,
tribal or community leaders, communicate difficult truths indirectly through a third party,
and make suggestions through stories (see Vinod Swami (1992), Conflict Mediation
Across Cultures). Intercultural conflicts are often the most difficult to resolve because the
expectations of the disputants can be very different, and there is much occasion for
misunderstanding.[citation needed]

In animals[edit source]
Conflict resolution has also been studied in non-humans, like dogs, cats, monkeys,
snakes, elephants, and primates (see Frans de Waal, 2000). Aggression is more
common among relatives and within a group than between groups. Instead of creating a
distance between the individuals, however, the primates were more intimate in the
period after the aggressive incident. These intimacies consisted of groomingand various
forms of body contact. Stress responses, like an increased heart rate, usually decrease
after these reconciliatory signals. Different types of primates, as well as many other
species who are living in groups, show different types of conciliatory behaviour.
Resolving conflicts that threaten the interaction between individuals in a group is
necessary for survival and hence has a strong evolutionaryvalue. These findings
contradicted previous existing theories about the general function of aggression, i.e.
creating space between individuals (first proposed by Konrad Lorenz), which seems to
be more the case in conflicts between groups than it is within groups.
In addition to research in primates, biologists are beginning to explore reconciliation in
other animals. Until recently, the literature dealing with reconciliation in non-primates
have consisted of anecdotal observations and very little quantitative data. Although
peaceful post-conflict behavior had been documented going back to the 1960s, it wasn‘t
until 1993 that Rowell made the first explicit mention of reconciliation inferal sheep.
Reconciliation has since been documented in spotted hyenas,[11][12]
lions,
dolphins,[13]
dwarf mongoose, domestic goats,[14]
and domestic dogs.[15]
Conflict resolution is an expanding field of professional practice, both in the U.S. and
around the world. The escalating costs of conflict have increased use of third parties
who may serve as a conflict specialists to resolve conflicts. In fact relief and
development organizations have added peace-building specialists to their teams. Many
of the major international non-governmental organizations have seen a growing need to
hire practitioners trained in conflict analysis and resolution. Furthermore, this expansion
of the field has resulted in the need for conflict resolution practitioners to work in a
variety of settings such as in businesses, court systems, government agencies nonprofit
organizations, government agencies and educational institutions serving throughout the
world.
Education[edit source]
Universities worldwide offer programs of study pertaining to conflict research, analysis,
and practice. The Cornell University ILR Schoolhouses the Scheinman Institute on
Conflict Resolution, which offers undergraduate, graduate, and professional training on
conflict resolution.[16]
Eastern Mennonite University's Center for Justice and
Peacebuilding offers a BA and MA with a focus on practical applications in conflict-
affected communities and regions. Additional graduate programs are offered at
Georgetown University, and Trinity College Dublin.[17]
George Mason University‘s
Institute of Conflict Analysis and Resolution offers undergraduate, certificate and
masters programs in Conflict Analysis and Resolution and a Ph.D. program in The
Philosophy in Conflict and Conflict Resolution.[18]
Nova Southeastern University offers a

Ph.D. in Conflict Analysis & Resolution which trains students in the skills and techniques
of practice, interdisciplinary research, policy and program development, historical
critique, cultural analysis, and theoretical foundations of the field. It is offered in both
online and on-campus formats.[19]
Many students completing a doctoral program enter the field as researchers, theorists,
analysts, policy makers and professors in higher education.
Furthermore, the Pax Ludens Foundation based in the Netherlands is an organization
that puts together conflict resolution simulations set in an International Relations
scenario to help students learn about the intricacies of where conflict emerges in the
world of international politics.
Conflict resolution is a growing area of interest in UK pedagogy, with teachers and
students both encouraged to learn about mechanisms that lead to aggressive action,
and those that lead to peaceful resolution.
Tel Aviv University offers two graduate degree programs in the field of conflict
resolution, including the English-language International Program in Conflict Resolution
and Mediation, affording students to learn in a region which is the subject of much
research on international conflict resolution. The Nelson Mandela Center for Peace &
Conflict Resolution, Jamia Millia Islamia New Delhi is one of the first centers for peace
and conflict resolution to be established at an Indian university. It offers a two-year full-
time MA course in Conflict Analysis and Peace-Building, as well as a PhD in Conflict
and Peace Studies.[20]
Conflict management[edit source]
This section needs additional citations for
verification. Please help improve this article byadding citations
to reliable sources. Unsourced material may
be challenged and removed. (July 2007)
Conflict management refers to the long-term management of intractable conflicts. It is
the label for the variety of ways by which people handle grievances—standing up for
what they consider to be right and against what they consider to be wrong. Those ways
include such diverse phenomena as gossip, ridicule, lynching, terrorism, warfare,
feuding, genocide, law, mediation, and avoidance.[citation needed]
Which forms of conflict
management will be used in any given situation can be somewhat predicted and
explained by the social structure—or social geometry—of the case.
Conflict management is often considered to be distinct from conflict resolution. In order
for actual conflict to occur, there should be an expression of exclusive patterns, and tell
why the conflict was expressed the way it was. Conflict is not just about simple
inaptness, but is often connected to a previous issue. The latter refers to resolving the
dispute to the approval of one or both parties, whereas the former concerns an ongoing

process that may never have a resolution. Neither is it considered the same as conflict
transformation, which seeks to reframe the positions of the conflict parties.
Counseling[edit source]
When personal conflict leads to frustration and loss of efficiency, counseling may prove
to be a helpful antidote. Although few organizationscan afford the luxury of having
professional counselors on the staff, given some training, managers may be able to
perform this function. Nondirective counseling, or "listening with understanding", is little
more than being a good listener—something every manager should be.[21]
Sometimes the simple process of being able to vent one's feelings—that is, to express
them to a concerned and understanding listener, is enough to relieve frustration and
make it possible for the frustrated individual to advance to a problem-solving frame of
mind, better able to cope with a personal difficulty that is affecting his work adversely.
The nondirective approach is one effective way for managers to deal with frustrated
subordinates and coworkers.[22]
There are other more direct and more diagnostic ways that might be used in appropriate
circumstances. The great strength of the nondirective approach (nondirective counseling
is based on the client-centered therapy of Carl Rogers), however, lies in its simplicity, its
effectiveness, and the fact that it deliberately avoids the manager-counselor's
diagnosing and interpreting emotional problems, which would call for special
psychological training. Listening to staff with sympathy and understanding is unlikely to
escalate the problem, and is a widely used approach for helping people to cope with
problems that interfere with their effectiveness in their place of work.
Eight Sources of Conflict
Conflict in a workplace setting can be a normal part of doing business. In some cases, conflict that is managed
properly can be beneficial, as when it fosters an environment of healthy competition. However, conflict may also
have a detrimental effect. As a manager or business owner, you need to be aware of potential sources of conflict
within your work environment.
Change
Implementation of new technology can lead to stressful change. Workers who don't adapt well to change can
become overly stressed, which increases the likelihood of conflict in the workplace.
Interpersonal Relationships
When different personalities come together in a workplace, there is always the possibility they won't mesh. Office
gossip and rumors can also serve as a catalyst for deterioration of co-worker relationships.
Suvpervisor vs. Employee
Just as co-worker personalities may not mesh, a supervisor and employee can also experience conflict. A supervisor
who is seen as overbearing or unfair can rub an employee the wrong way, which makes the working relationship
more difficult.

External Changes
When the economy slides into a recession or a new competitor swoops in and steals some of a company's market
share, it can create tension within the company. This stress can lead to conflict between employees and even
between upper levels of management.
Poor Communication
Companies or supervisors that don't communicate effectively can create conflict. For example, a supervisor who
gives unclear instructions to employees can cause confusion as to who is supposed to do what, which can lead to
conflict.
Subpar Performance
When a worker in a department is not "pulling his weight," it can lead to conflict within the department, perhaps
even escalating into a confrontational situation. A supervisor who fails to acknowledge or address the situation can
add fuel to the fire.
Harassment
Harassment in the workplace can take many forms, such as sexual or racial harassment or even the hazing of a new
employee. Companies that don't have strong harassment policies in place are in effect encouraging the behavior,
which can result in conflict.
Limited Resources
Companies that are looking to cut costs may scale back on resources such as office equipment, access to a company
vehicle or the spending limit on expense accounts. Employees may feel they are competing against each other for
resources, which can create friction in the workplace.
What is workplace conflict?
Webster‘s dictionary defines conflict as a sharp disagreement or opposition of interests
or ideas. Anytime people work together, conflict is a part of ‗doing business‘. Conflict is
a normal and natural part of any workplace. When it occurs, there is a tendency for
morale to be lowered, an increase in absenteeism and decreased productivity. It has
been estimated that managers spend at least 25 percent of their time resolving
workplace conflicts – causing lowered office performance.
Handling and resolving conflicts that arise in the workplace is one of the biggest
challenges managers and employees face. Typically there are two responses to conflict:
run away (avoidance) or ‗battle it out‘. In either case, we often feel uncomfortable or
dissatisfied with the results because no resolution has been achieved. By learning to
constructively resolve conflict, we can turn a potentially destructive situation into an
opportunity for creativity and enhanced performance.
Sources of Conflict
There are many causes or reasons for conflict in any work setting. Some of the primary
causes are:

 Poor Communication: different communication styles can lead to misunderstandings
between employees or between employee and manager. Lack of communication drives
conflict ‗underground‘.
 Different Values: any workplace is made up of individuals who see the world differently.
Conflict occurs when there is a lack of acceptance and understanding of these
differences.
 Differing Interests: conflict occurs when individual workers ‗fight‘ for their personal goals,
ignoring organizational goals and organizational well-being.
 Scarce Resources: too often, employees feel they have to compete for available
resources in order to do their job. In a resource scarce environment, this causes conflicts
– despite awareness of how scarce resources may be.
 Personality Clashes: all work environments are made up of differing personalities.
Unless colleagues understand and accept each other‘s approach to work and problem-
solving, conflict will occur.
 Poor Performance: when one or more individuals within a work unit are not performing -
not working up to potential – and this is not addressed, conflict is inevitable.
8 Steps: Overview
The following process is useful for effectively managing conflict in your workplace, in
relationships, or in other situations where you have an interest in seeking a negotiated
solution. These steps won't guarantee an agreement, but they greatly improve the
likelihood that the problems can be understood, solutions explored, and consideration
of the advantages of a negotiated agreement can occur within a relatively constructive
environment. They provide useful strategies to consider that reduce the impacts of
stress, fears and "surprise" factors involved in dealing with conflict.
1. "Know Thyself" and Take Care of Self
o Understand your "perceptual filters," biases, triggers
o Create a personally affirming environment (eat, sleep, exercise)
2. Clarify Personal Needs Threatened by the Dispute
o Substantive, Procedural, and Psychological Needs
o Look at BATNA, WATNA, and MLATNA
o Identify "Desired Outcomes" from a Negotiated Process
3. Identify a Safe Place for Negotiation
o Appropriate Space for Discussion/ Private and Neutral
o Mutual Consent to Negotiate/ Appropriate Time
o Role of Support People (Facilitators, Mediators, Advocates), as needed

o Agreement to Ground rules
4. Take a Listening Stance into the Interaction
o "Seek first to understand, then to be understood" (Covey)
o Use Active Listening skills
5. Assert Your Needs Clearly and Specifically
o Use "I-messages" as tools for clarification
o Build from what you have heard - continue to listen well
6. Approach Problem-Solving with Flexibility
o Identify Issues Clearly and Concisely
o Generate Options (Brainstorm), While Deferring Judgment
o Be open to "tangents" and other problem definitions
o Clarify Criteria for Decision-Making
7. Manage Impasse with Calm, Patience, and Respect
o Clarify Feelings
o Focus on Underlying Needs, Interests, and Concerns
o Take a structured break, as needed
8. Build an Agreement that Works
o Review "Hallmarks" of a Good Agreement
o Implement and Evaluate - Live and Learn
Conflict and Matrix Management
Matrix management evolved to enable organizations to deal with more
complex issues. While it can be effective at improving information
distribution and managing multiple aspects of product distribution, matrix
management can also lead to increased conflicts. Research typically
points to several conflict sources including ambiguous goals, uncertainty
regarding decision making rights, and mixed employee loyalties.
While conflicts may be natural in matrix settings, they do not have to
lead to dysfunction. Some conflicts can be prevented by leaders taking
time to clarify the organization‘s larger goals. This can help prevent
confusion over which goals take precedence, as well as how to deal

with confusion that may subsequently arise. A similar approach can
address who owns the right to make which decisions and how
disagreements over decisions can be managed.
While some conflicts can be managed in advance, issues will still arise.
Differences are a part of life and can actually benefit groups when they
are managed effectively. To do this an organization using matrix
management will want to train its managers to see conflict as a natural
part of doing business and as a potential source of creativity and
improved decision making. This will require creating norms for handling
conflicts as they arise and developing constructive communication skills
that managers can use to search for solutions instead of persons to
blame.
The question of mixed loyalties can be harder to resolve. Does an
employee owe more allegiance to a project team or to their functional
department? This issue not only can cause confusion for the employee
but it can also create dissension within a team. Although it would be
nice if the problem didn‘t exist, it often does. One approach for leaders
to take is bringing people from both groups together to stress the
superordinate goals of the organization. This can help create a sense of
unity and loyalty to the bigger organization.
While conflict is inevitable, it can be managed and can lead to better
results when leaders take time to clarify issues and stress unity of
purpose.
Managing Effectively in a Matrix
What if you upgraded your IT network to a new operating system that promised faster, better and leaner
results — only to find that the vast majority of your leaders did not have the necessary competencies to
use that new system?

At Hay Group, our research suggests that many companies are now stuck in that metaphorical boat.
Determined to get closer to their customers and become more agile and innovative, global organizations
like IBM and GE are embracing the matrix organizational model. But, the transition to this new model has
not been all smooth sailing. In matrix organizations, leaders suddenly find themselves having to master
the challenges of managing cross-divisional, international teams over whom they have little formal
authority. Not surprisingly, the skills required to effectively navigate the matrix are different than those
needed to succeed in the old, hierarchical organizational model. Leaders who lack these skills often find
these roles frustrating or draining, as they have to continually influence and work through others to get
things done.
To uncover the competencies required to achieve results within the matrix, we conducted interviews with
dozens of leaders from around the world who were accountable for results but did not have formal
authority over the resources needed to achieve those results, which is a fairly common matrix scenario.
We compared scenarios where leaders successfully delivered business results to those where leaders
were less successful. We found that when leaders were successful in matrix roles they consistently used
the following four competencies: empathy, conflict management, influence and self-awareness.
Influence and conflict management capabilities help leaders to build consensus around a common
purpose and deliver the collaborative solutions that the matrix requires. Empathy, on the other hand,
enables leaders to develop a better understanding of their counterparts’ perspectives and their
customers’ mindset. Self-awareness allows leaders to summon the patience to manage the complexities
of the matrix.
However, knowing the skills that are required is not enough. The challenge organizations now face is
finding leaders who have them. According to our Emotional and Social Competency Inventory (ESCI), an
emotional intelligence database based on more than 17,000 individuals worldwide, these capabilities are
in short supply.
Just how scarce are matrix-related leadership skills? An analysis of our ESCI database found that only
9% of employees consistently demonstrated self-awareness — an essential competency for succeeding
in the matrix. Empathy (22%) and influence skills (20%) were also seen as a strength among only a small
percentage of leaders, and conflict management, while more common, was only prevalent among less
than one-third (31%) of the individuals in our database.
How can organizations get a handle on this problem and strengthen their processes for developing
leaders who are well-equipped for the matrix?
1. Ensure that teams are more diverse. Diversity can play an important role in helping people to
develop matrix-related competencies, such as the ability to listen with respect to different viewpoints.

2. Create enterprise-level training programs. Give young leaders a chance to shadow top-level
executives. Even if the trainees only get a chance to carry the CEO’s briefcase, they will still gain an
enterprise-wide perspective while getting invaluable exposure to a selection of business leaders from
throughout the company.
3. Implement rotational assignments. Give high-potential rising stars opportunities to work in different
functional areas of the company. A leader who spends his or her career stuck in a single function or
business unit will have an insular perspective that is a poor fit with the needs and challenges of the
matrix.
4. Facilitate different types of leadership experiences. Give mid-level leaders a chance to take on
advisory roles outside of line management in functions such as strategy, HR or finance. By playing the
role of project manager in a situation where they have little direct authority over their team members, they
can gain valuable experience learning how to get results in a matrix-type environment.
Meanwhile, for leaders accustomed to the old hierarchical order who now find themselves at sea in the
matrix with little guidance on how to survive, here are four quick tips to minimize the likelihood of
capsizing:
• Identify competency gaps and correct them. Empathy, conflict management, influence and self-
awareness are all capabilities that can be improved with coaching, training and lots of practice. If you
suspect you need help in one or more of these areas, take a proactive approach and start looking for
ways to develop and sharpen these skills. And don’t be afraid to ask for feedback on where you may have
gaps.
• Don’t try to use hierarchy or pull rank to resolve an issue. That may work in command-and-control
line organizations, but it’s less effective in a matrix where you have less formal authority over your team
members, some of whom may be peers.
• Resist the urge to escalate problems to senior management. Matrix teams depend on trust and
teamwork. Our research shows that escalating issues to the CEO often backfires and can doom matrix
projects. Instead, look for ways to use empathetic listening and conflict management resolution skills to
show team members how the enterprise-wide goals of the matrix ultimately align with their own interests.
• Deal with emotionally-charged communications face-to-face, never through email. It’s been said
before, but it bears repeating — email and text messaging lack nuance and can often be misinterpreted in
the worst possible way, destroying the trust upon which matrix teams depend. Pick up the phone, walk
down the hall or boot up Skype for a face-to-face dialogue. Trying to express empathy through an
emoticon smiley-face is just asking for trouble.

The skills needed for a leader to thrive in a matrix operating environment — empathy, conflict
management, influence and self-awareness — can be identified, developed and honed. The real question
is whether organizations and individual leaders will take the initiative to broaden their traditional notions of
what it takes to succeed as a leader and start taking a closer look at measuring, cultivating and rewarding
these crucial matrix-related leadership capabilities.
functional and dysfunctional outcomes of conflict:
In the workplace, conflict is inevitable, usually occurring when one party perceives that their interests
are being opposed or negatively affected by another party. Conflict can produce either a positive or
negative outcome. By being able to identify potential conflict before it arises and knowing how to
effectively manage it, you will be able to help your staff increase the chances of turning conflict into a
positive outcome. There are two types of conflict, functional and dysfunctional.
Functional conflicts
Functional conflicts are constructive, support your company's goals, and improve performance. It
generally involves people who are genuinely interested in solving a problem and are willing to listen to
one another.
Stimulating functional conflict is a great way to improve your team's performance and generate new
ideas. It involves getting your team to either defend or criticise ideas based on relevant facts rather
than on the basis of personal preference or political interests.
There are two widely accepted techniques for doing this: devil's advocacy and the dialectic method.
Devil's advocacy
This method involves assigning a team member the role of a critic. This person should always question
and critique any ideas that your team may have, usually resulting in critical thinking and reality
testing. However, it is recommended that this role gets rotated amongst your team to avoid any
particular person from developing a strictly negative reputation.
Dialectic method
This approach involves facilitating a structured debate of opposing views prior to making a decision.
By hearing the pros and cons of all the different ideas, your team will have greater success in making
sound decisions. However, it should be noted that a major drawback of
this method is that the emphasis to win a debate often clouds the
issue at hand.
Dysfunctional conflicts
Dysfunctional conflicts on the other hand, consist of disputes and disagreements that hinder your
company's performance. This generally involves people who are unwilling to work together to solve a
problem and is often personal.
When dysfunctional conflicts arise in the workplace, there are various methods for dealing with it,
including: integrating, obliging, dominating, avoiding, and compromising.
Integrating
This method is also known as problem solving and generally involves encouraging opposing parties to
confront an issue and cooperatively identify the problem, generate alternative solutions and select the
most appropriate solution. Misunderstandings and similar disputes can often be resolved using this
method.
Obliging

This occurs when a person neglects their own concern in order to satisfy the concern of the opposing
party. A characteristic of this conflict management style includes playing down differences while
emphasising on commonalities.
Dominating
Also referred to as forcing, people that adopt this approach often have an "I win, you lose" mentality.
Dominating relies on formal authority to force compliance and is generally appropriate when unpopular
but necessary solutions are implemented.
Avoiding
This involves either passive withdrawal from the problem or active suppression of the issue. It is
generally appropriate for trivial issues or when the negative effects of confrontation outweigh the
benefits of resolving the conflict.
Compromising
This is a give-and-take approach for resolving dysfunctional conflicts and is particularly useful when
the parties involved possess equal power.
The following are some examples of situations that can produce either functional or dysfunctional
conflict:
 Incompatible personalities
 Overlapping or unclear job boundaries
 Competition for limited resources
 Inadequate communication
 Interdependent tasks
 Unreasonable rules
 Unreasonable deadlines or extreme time pressure
 Collective decision making (the greater the number of people participating in a decision, the
greater the potential for conflict)
 Decision making by consensus
 Unresolved or suppressed conflicts
As a leader or manager, you should be continually aware of staff interactions within the workplace. As
such, you should carefully observe and react appropriately to these early warning signs as they have
the potential to lead to major conflict, reduce morale, motivation and cause business inefficiency.
Negotiation Skills:
10 steps to better negotiation skills
Entrepreneurs and experts reveal the secrets behind striking the best deal
―Almost every aspect of the business landscape is negotiable,‖ says Andrew Simmons, managing partner
of negotiation specialists The Gap Partnership. In recessionary times, this can work in your favour, as the
pressure to get the most out of relationships and realise value from deals is higher than ever.

So whether you‘re faced with suppliers looking to hike prices, clients extending their payment terms, fixing
a price for new business or dealing with an employee‘s request for a pay rise, understanding the art of
negotiation will considerably increase your chances of a positive outcome.
There is a lot more to negotiation than open-ended questioning and other sales tricks, and a few key
principles will stand you in good stead no matter what you‘re bartering over. We have distilled the advice
of a number of experts into 10 top tips for perfecting this crucial, and sometimes undervalued art.
Preparation is everything
―You can‘t wing negotiations,‖ says Mark Jacobs, marketing director of sales and business management
training company, The Mdina Partnership. ―You‘ve got to know your audience, what they want and what
questions you need to ask.‖
The first step is to understand what‘s driving the party you‘re negotiating with, and where their priorities
really lie.
Tailor your response
Figure out what type of individuals you are dealing with and talk to them in a language they recognise. In
short, find out how to push their buttons. Kevin Dougall, managing director of AP HR Solutions, uses a
four-colour system to make an initial assessment of a person: a blue person is formal, precise and
analytical, and needs a lot of data before they can make a decision; a red is purposeful, demanding and
competitive, and more intuitive; green people are caring, relaxed and patient, and don‘t like to rush things;
yellows are warm, expressive, sociable and often persuasive.
Once you‘ve determined who you‘re dealing with, adapting your approach will make negotiation easier.
Blues, or thinkers, will want lots of information, reds, or knowing people, just want the bare bones, while
yellows and greens prefer stories or diagrams. However, it‘s important to understand what type of person
you are, too. ―If they‘ve got a strong [red] knowing person, putting your own strong competitor or thinking
person in against them is not going to work,‖ says Dougall. ―Instead, look for your own [green or yellow]
pleaser, or feeling person, to help make the other party feel like they are winning. You need to adjust who
talks to who about what.‖
Listen carefully
―Nature gave us two ears and one mouth, and in life – generally, you‘ve got to use them in that
proportion,‖ says Dougall, adding that this is the best way to understand who you‘re up against. He
recommends asking the other party what they want to get out of the negotiation, and advises an initial
face-to-face meeting to discuss this before getting into the specifics.
Simmons believes knowledge is power. ―The more you say, the more you give away,‖ he says. ―Exercise
control, be quiet. Ask lots of open questions. Let them talk, listen and take notes.‖
Be mentally prepared
We give 55% of what‘s going on in our head away through our body, and face-to-face is usually the
preferred medium for negotiation. So you need to take the right mental approach. If you feel subordinate,

it will be hard to cover this up and will set the wrong tone from the outset. Even your most junior staff
should be encouraged to think of negotiation as a business-to-business discussion.
―Whatever‘s going on in your head will come out of your body,‖ says Jacobs. ―If a junior salesperson is
trying to sell something to someone senior, their approach might be subservient. That is a terrible
negotiating position.‖
Instead, those entering into negotiations should think: ―We all need each other.‖ Know the value of what
you‘re offering, and how it helps the other party. Once your head is clear, you will feel in control and can
take the lead through questioning.
Discuss, don’t sell
Negotiation should be a discussion of how to achieve a mutually agreeable outcome, not a selling
exercise. ―The classic sales pitch is ‗look what we can do for you‘,‖ says Jacobs. ―What you should be
saying is: ‗This is what we do and what we can offer. How can it help you?‘ This gives you something to
negotiate with, as they‘re telling you why they want your product or service.‖
Also try to identify trade-offs – things you can offer that are of a low cost to you, but high value to them, or
―coinage‖, according to Jacobs. Let‘s say you‘re selling IT systems, and part of the offering is two days‘
on-site help from your engineer. You could give them three days, because you already pay for that
person, so a day here or there doesn‘t cost you much. But if you usually charge your engineer out at £500
a day, that‘s valuable to them. In other words, how can you help them to help you?
―If it‘s your product or service on the table, the key issue is trying not to move on price,‖ says Jacobs. ―So
what can you agree to give them that means they still buy at the original price?‖
Take some time out
Don‘t be afraid to ask for a break in negotiations to collect your thoughts. ―You need time to go away and
reconsider,‖ says Dougall. ―Unless you‘re up against an absolute fixed deadline, be prepared to ask for
time out, and use this to recalibrate your thought processes.‖
Understand your position…
Before you enter negotiations, form three positions in your head: what you could get away with – which is
usually your opening bid; what you expect to get, based on a knowledge of your market; and your deal
breakers. Or, as Jacobs puts it: your ―mega win‖, your ―expected win‖ and your ―walk away‖. ―In the heat
of the battle, it‘s easy to give more away than you want to. It‘s quite an emotional thing,‖ he says. So it‘s
vital to work out these positions in advance.
Simmons recommends being extreme, but realistic with your opening bid. ―Move from this position to give
them the satisfaction of winning,‖ he says. ―This helps them become more agreeable. You need trust for
collaboration to work. Unrealistic positions damage relationships.‖
…and get to know theirs

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