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Organization theory and design 05 2013
The document discusses designing organizations around the customer. It explains that customer-centric organizations focus their strategy, structure, processes, rewards, and people on serving customers. The document also discusses different levels of customer centricity that organizations can adopt, from customer-centric light to more intensive approaches. It emphasizes that customer-centric organizations understand customer profitability and segmentation to best meet customer needs.
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Organization theory and design 05 2013
- 1. 5 Designing Aroundthe Customer organization @TC 2013
- 2. หัวข้อบรรยาย/กรณีศึกษา 1 แนวคิดทฤษฎีองค์การ 2โครงสร้างและการออกแบบองค์การ Focus on task performance and structure Focus on motivation Focus on adjustments to the external environment 3 หลักการการออกแบบองค์กรที่มีประสิทธิภาพ 4 Fundamentals of Organization Designพื้นฐานแนวคิดการออกแบบโครงสร้างองค์การ C 1 : Harvard Business Case / NYPD New 5 Designing Around the Customer C 2 : Harvard Business Case /Transformation at Ernst & Young United Kingdom organization @TC 2013
- 3. Customer-Centric Strategies • WhatIs Customer-Centric? – Strategy – Structure – Process – Rewards – People • The Drive Toward Customer-Centricity • Customer-Centric Strategies • Customer Profitability and Segmentation organization @TC 2013
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- 21. Customer-Centric Organizations • • • • • • Strategy Locator:How Customer-Centric Do You Need to Be? Customer-Centric Capabilities Customer-Centric Light Customer-Centric Medium Customer-Centric Intensive organization @TC 2013
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- 23. LEARNING FROM… THE POWERFULOFFICE organization @TC 2013
- 24. Learning from… ThePowerful Office An Organization: A SOCIAL Institution Made of PEOPLE Playing a ROLE And INTERACTING between each other. organization @TC 2013
- 25. Learning from… ThePowerful Office • Things evolve… New people comes in… and both can have some impact… • Beyond the formal line of authorities there are relationships, formal and informal, between people… organization @TC 2013
- 26. Learning from Toyota • Toyota's success: encourages every worker, no matter how far down the production line, to consider himself a knowledge worker and to think creatively about improving his particular corner of the organisation. Source: The Economist “The new organisation: a survey of the company” organization @TC 2013
- 27. Learning from…MUCH /MRH Facing the growing complexity… Matrix forms & process organization organization @TC 2013
- 28. Learning from… MUCH/ MRH • CHANGING THE CULTURE… … beyond the organization’s structure… cultivate a collective sense of responsabilitity among employees Source: Majchrzak, A. & Wang, Q. «Breaking the Functional Mind-set in Process Organizations» HBR organization @TC 2013
- 29. Learning from…IBM Either… • SplittingIBM businesses… or • Integrating into 1-activity • How to explain the two logics? organization @TC 2013
- 30. Learning from… IBM § Splitting IBM businesses § In reaction to the new environment: new competitors providing narrow/ horizontal slice of the total package; § Customers’ support: § To break up IBM’s pricing umbrella (bundle prices) § Interest in getting computing power to the individual employees; § To bring more competition into the marketplace; § A financially-market driven strategy: IPO of many companies… § For many IBM executives, an organizational and cultural logic, where each entity already first perform in its own turf. organization @TC 2013
- 31. Learning from… IBM § Integrating into 1-activity § A client-driven logic: at the end of the day, the customer needs an integrator, to create value § Problem solving § Ability to apply complex technologies to solve business challenges § integration § In this new environment (with tens of thousands small companies) IBM ‘s scale and broad-based business capabilities were its competitive advantage § A new organizational and cultural logic: performance is measured in terms of contribution to the whole… organization @TC 2013
- 32. Learning from… IBM § A new conception of IBM’s business model: § Based on two emerging forces: § Customers would increasingly value companies that could provide solutions that integrated technology from various suppliers and integrated technology into the processes of an enterprise. § Networked model of computing would replace the PC-dominated world of 1994. organization @TC 2013
- 33. Learning from… IBM • A new conception of IBM’s business model • Creating a Global Enterprise: – Capitalizing on its ability to “integrate all the parts” for the customers. organization @TC 2013
- 34. Learning from…IBM § Anew conception of IBM’s business model: § A services-led model: § Designs, builds and delivers integrated technology solutions. § Build the largest and the most influential services business in the IT industry. organization @TC 2013
- 35. Learning from… IBM § A new conception of IBM’s business model: § Pulling together all of IBM’s software assets under a single executive… In a world of open standards… focus on the “middleware”…working “cross platform” § Acquiring Lotus to complete the middleware portfolio and enter in the world of “collaborative computing”. § Leaving “application software”… and partnering with application software developers § Enter the technology components marketplace. organization @TC 2013
- 36. Learning from…IBM • Anew conception of IBM’s business model • Integrating IBM: – Organization / Brand Image / Compensation organization @TC 2013
- 37. Learning from…IBM • Anew conception of IBM’s business model: • Organization: – Breaking up the fiefdoms: from geographical organization to a global, customer-oriented organization. • Brand Image: – Global and unified brand • Compensation: – Pay for performance; stock-based compensation; bonus link to overall IBM’s performance organization @TC 2013
- 38. Learning from…IBM • Whichactivities should be kept, outsourced or abandoned. To protect and develop the “integrator" role, to better-served the client: stay on “focus” organization @TC 2013
- 39. Learning from… IBM • Which activities should be kept, outsourced or abandoned. • Sell unproductive assets and not essential for the company, to raise cash: (examples: Expensive training centers, Fine-art collection, Federal Systems Company/national security and space programs…) • Leaving “application software”… and partnering with application software developers (no longer competing against them) • Selling the IBM network ($5 billion) to AT&T… a part of the stack that was not strategically vital… and avoid huge capital investment to maintain the network. • Exit the DRAM business… exit the hard-disk-drive business… Selecting markets and competing on the basis of a distinctive, sustainable competency. organization @TC 2013
- 40. Learning from…IBM • IBMtransformation of the management roles and organizational culture. • A culture of collaboration… – Organizational structure and processes that favour the collaboration… the expression of a new culture. • Managing by principles… • Focus on the outside: the client. organization @TC 2013
- 41. Learning from…IBM • IBMtransformation of the management roles and organizational culture. • For the Mature Business (H1) – Operators: deep functional expertise • For the rapidly Growing Business (H2) – Business Builders: entrepreneurial • For the Emerging Business (H3) – Visionaries: unconventional thinkers. organization @TC 2013