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Business Culture

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

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Business Culture

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

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