Project Communication       Management              Lecture 9Destructive habits in organizations and               project...
Project Communications     Management
Why Do Good Companies Go Bad?• In a nutshell: Good companies fail when  they are unable or unwilling to change  when their...
Denial     Turf                                       Arrogance     Wars                        7 Volume               Hab...
DenialProject Communications     Management
What leads to Denial?• Denial of emerging technologies. Denial of changing consumer tastes. Denial of the new global envir...
Signs of Denial• “Hey, we’re different, so there’s no way  it can happen to us.”  The company is too proud to admit that  ...
How to break the habit of denial         Look for it           Project Communications                Management
How to break the habit of denial           Assess it           Project Communications                Management
How to break the habit of denial           Change it           Project Communications                Management
Arrogance Project Communications      Management
What is Arrogance?• Offensive display of:  Superiority  Self-importance  Pride  Disdain (contempt)  … because of an inflat...
What leads to Arrogance?• Exceptional achievement in the past David conquers Goliath The company pioneers a product or ser...
Signs of Arrogance• The company stops listening The company becomes extravagantly eager to show off. The company begins to...
Signs of Arrogance• The company becomes high-handed and  abuses rules The company favors those who validate its views and ...
How to break the habit of            arrogance?• Rotate management to new challenges. Implement nontraditional succession ...
Complacency   Project Communications        Management
What is Complacency?• Complacency is the sense of security and  comfort that derives from the belief that  the success tha...
What leads to Complacency?• The company’s past success came via a  regulated monopoly.  The company’s success was based on...
What leads to Complacency?• The company’s past success came via a  regulated monopoly.  The company’s success was based on...
Signs of Complacency• The company is in no hurry to make  decisions. The company’s processes are overly bureaucratic. Ever...
Signs of Complacency• The company is completely vertically  integrated. Enormous cross-subsidies are in place – by functio...
How to break Complacency?• Reengineer to achieve high quality,  eliminate waste, and reduce inefficiency. Decentralize pro...
How to break Complacency?• Outsource – contract out all non-core  functions. Reenergize – consider a new leader with a pos...
Competency Dependence       Project Communications            Management
What is Competency          Dependence?• Somebody else can be doing a better job,  and if a company is unable to figure ou...
What leads to Competency          Dependence?• R&D dependence  Design dependence  Sales dependence  Service dependence    ...
Signs of Competency            Dependence• Reengineering, reorganization, retooling  have been tried and still no good res...
How to break Competency          Dependence?• Find new applications where the same  competency results in new value. Deter...
How to break Competency          Dependence?• Expand the range of your competencies  by moving up or down the value chain....
Competitive Myopia      Project Communications           Management
What is Competitive Myopia?• When they define their competition too  narrowly and acknowledge only direct and  immediate c...
What leads to Competitive              Myopia?• The natural evolution of the industry. .               Project Communicati...
What leads to Competitive          Myopia?The clustering phenomenon.         Project Communications              Management
Signs of Competitive MyopiaA company allows small niche players tocoexist with it.The loyalty of a company’s supplier is w...
Signs of Competitive MyopiaNew entrants, especially those fromemerging economies, are underestimated.The company becomes h...
How to break Competitive           Myopia?Broaden the scope of the product ormarket.Consolidate to squeeze out excesscapac...
How to break Competitive           Myopia?Counterattack the nontraditionalcompetitors.Refocus on the core business toconce...
Volume Obsession     Project Communications          Management
What is Volume Obsession?• Too much money is being spent for the  company to make money.               Project Communicati...
What leads to Volume           Obsession?The high-margin pioneer.The fast-growth phenomenonThe paradox of scale.The ball a...
Signs of Volume ObsessionGuideline-free, ad hoc spending.Functional-level cost centers.A culture of cross-subsidies.Stakeh...
How to break Volume          Obsession?Identify where the company’s costs are.Convert cost centers into revenue centersor ...
How to break Volume          Obsession?Outsource non-core functions.Reengineer to automate processes toimprove cost effici...
The Territorial Impulse        Project Communications             Management
What is Territorial Impulse?• As companies grow they tend to organize  themselves into “functional” and later  “regional s...
What leads to Territorial        Impulse?   The corporate ivory tower.         Project Communications              Managem...
What leads to Territorial          Impulse?Growth requires the institution of formal      policies and procedures.        ...
What leads to Territorial          Impulse?The informal, spontaneous culture is           extinguished.           Project ...
What leads to Territorial          Impulse?A company’s culture is dominated by one        functional specialty.           ...
Signs of Territorial ImpulseDissension - a lot of headstronglieutenants instead of one strong generalIndecision – decision...
Signs of Territorial ImpulseConfusion – one side doesn’t know whatthe other side is up toMalaise – nobody’s happy         ...
How to break Territorial            Impulse?The leader must bring all the peopletogether in a common cause.Rotate the peop...
How to break Territorial            Impulse?Create permanent cross-functional teams.Reorganize around customers or product...
Upcoming SlideShare
Loading in …5
×

Destructive habits in organizations and projects

637 views

Published on

What would kill your organization?
Smoking will kill you, what will kill your company?
#WikiCourses

Published in: Education, Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
637
On SlideShare
0
From Embeds
0
Number of Embeds
28
Actions
Shares
0
Downloads
19
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Destructive habits in organizations and projects

  1. 1. Project Communication Management Lecture 9Destructive habits in organizations and projects Project Communications Management
  2. 2. Project Communications Management
  3. 3. Why Do Good Companies Go Bad?• In a nutshell: Good companies fail when they are unable or unwilling to change when their external environment changes significantly. Project Communications Management
  4. 4. Denial Turf Arrogance Wars 7 Volume Habits ComplacencyObsession Competitive Competence Myopia Dependence Project Communications Management
  5. 5. DenialProject Communications Management
  6. 6. What leads to Denial?• Denial of emerging technologies. Denial of changing consumer tastes. Denial of the new global environment Project Communications Management
  7. 7. Signs of Denial• “Hey, we’re different, so there’s no way it can happen to us.” The company is too proud to admit that someone else has come up with a better way. The company ignores, rationalizes, or blames others for its situation instead of admitting its fault. Project Communications Management
  8. 8. How to break the habit of denial Look for it Project Communications Management
  9. 9. How to break the habit of denial Assess it Project Communications Management
  10. 10. How to break the habit of denial Change it Project Communications Management
  11. 11. Arrogance Project Communications Management
  12. 12. What is Arrogance?• Offensive display of: Superiority Self-importance Pride Disdain (contempt) … because of an inflated sense of self Project Communications Management
  13. 13. What leads to Arrogance?• Exceptional achievement in the past David conquers Goliath The company pioneers a product or service Project Communications Management
  14. 14. Signs of Arrogance• The company stops listening The company becomes extravagantly eager to show off. The company begins to act like a bully, both internally and externally. Project Communications Management
  15. 15. Signs of Arrogance• The company becomes high-handed and abuses rules The company favors those who validate its views and gets rid of those who are critical. Project Communications Management
  16. 16. How to break the habit of arrogance?• Rotate management to new challenges. Implement nontraditional succession planning. Diversify the talent. Change the leadership. Project Communications Management
  17. 17. Complacency Project Communications Management
  18. 18. What is Complacency?• Complacency is the sense of security and comfort that derives from the belief that the success that’s taken place in the past will continue indefinitely. Project Communications Management
  19. 19. What leads to Complacency?• The company’s past success came via a regulated monopoly. The company’s success was based on a distribution monopoly. The company was “chosen” for success by the government. The government owns or controls the business. Project Communications Management
  20. 20. What leads to Complacency?• The company’s past success came via a regulated monopoly. The company’s success was based on a distribution monopoly. The company was “chosen” for success by the government. The government owns or controls the business. Project Communications Management
  21. 21. Signs of Complacency• The company is in no hurry to make decisions. The company’s processes are overly bureaucratic. Everybody has to get on board before a decision is made. Project Communications Management
  22. 22. Signs of Complacency• The company is completely vertically integrated. Enormous cross-subsidies are in place – by functions, by products, by markets, by customers. Average costing and average pricing prevail. Project Communications Management
  23. 23. How to break Complacency?• Reengineer to achieve high quality, eliminate waste, and reduce inefficiency. Decentralize profit and loss by creating and molding business units around products or geographies. Project Communications Management
  24. 24. How to break Complacency?• Outsource – contract out all non-core functions. Reenergize – consider a new leader with a positive, opportunity-oriented vision Project Communications Management
  25. 25. Competency Dependence Project Communications Management
  26. 26. What is Competency Dependence?• Somebody else can be doing a better job, and if a company is unable to figure out what to do, it has become competency- dependent Project Communications Management
  27. 27. What leads to Competency Dependence?• R&D dependence Design dependence Sales dependence Service dependence Project Communications Management
  28. 28. Signs of Competency Dependence• Reengineering, reorganization, retooling have been tried and still no good results. The thrill is gone and the company is in a funk. Stakeholders are leaving Project Communications Management
  29. 29. How to break Competency Dependence?• Find new applications where the same competency results in new value. Determine new markets where the same competency remains an asset. Project Communications Management
  30. 30. How to break Competency Dependence?• Expand the range of your competencies by moving up or down the value chain. Refocus company resources into areas with more growth and profit potential. Project Communications Management
  31. 31. Competitive Myopia Project Communications Management
  32. 32. What is Competitive Myopia?• When they define their competition too narrowly and acknowledge only direct and immediate competitors Project Communications Management
  33. 33. What leads to Competitive Myopia?• The natural evolution of the industry. . Project Communications Management
  34. 34. What leads to Competitive Myopia?The clustering phenomenon. Project Communications Management
  35. 35. Signs of Competitive MyopiaA company allows small niche players tocoexist with it.The loyalty of a company’s supplier is wonby a nontraditional competitor. Project Communications Management
  36. 36. Signs of Competitive MyopiaNew entrants, especially those fromemerging economies, are underestimated.The company becomes helpless against asubstitute technology. Project Communications Management
  37. 37. How to break Competitive Myopia?Broaden the scope of the product ormarket.Consolidate to squeeze out excesscapacity. Project Communications Management
  38. 38. How to break Competitive Myopia?Counterattack the nontraditionalcompetitors.Refocus on the core business toconcentrate limited resources in the mostsuccessful area. Project Communications Management
  39. 39. Volume Obsession Project Communications Management
  40. 40. What is Volume Obsession?• Too much money is being spent for the company to make money. Project Communications Management
  41. 41. What leads to Volume Obsession?The high-margin pioneer.The fast-growth phenomenonThe paradox of scale.The ball and chain of unintended obligations Project Communications Management
  42. 42. Signs of Volume ObsessionGuideline-free, ad hoc spending.Functional-level cost centers.A culture of cross-subsidies.Stakeholders say numbers are not good. Project Communications Management
  43. 43. How to break Volume Obsession?Identify where the company’s costs are.Convert cost centers into revenue centersor profit centers.Move from vertical integration to “virtualintegration”. Project Communications Management
  44. 44. How to break Volume Obsession?Outsource non-core functions.Reengineer to automate processes toimprove cost efficiency.Implement target costingBecome a world-class customer. Project Communications Management
  45. 45. The Territorial Impulse Project Communications Management
  46. 46. What is Territorial Impulse?• As companies grow they tend to organize themselves into “functional” and later “regional silos”. However, the various units into which companies organize themselves don’t always get along well with each other, for various reasons. Project Communications Management
  47. 47. What leads to Territorial Impulse? The corporate ivory tower. Project Communications Management
  48. 48. What leads to Territorial Impulse?Growth requires the institution of formal policies and procedures. Project Communications Management
  49. 49. What leads to Territorial Impulse?The informal, spontaneous culture is extinguished. Project Communications Management
  50. 50. What leads to Territorial Impulse?A company’s culture is dominated by one functional specialty. Project Communications Management
  51. 51. Signs of Territorial ImpulseDissension - a lot of headstronglieutenants instead of one strong generalIndecision – decision-making is anagonizing or even impossible process Project Communications Management
  52. 52. Signs of Territorial ImpulseConfusion – one side doesn’t know whatthe other side is up toMalaise – nobody’s happy Project Communications Management
  53. 53. How to break Territorial Impulse?The leader must bring all the peopletogether in a common cause.Rotate the people in and out of differentfunctional or geographic silos. Project Communications Management
  54. 54. How to break Territorial Impulse?Create permanent cross-functional teams.Reorganize around customers or productsrather than around function or geography. Project Communications Management

×