2. Traditional Business
Traditional organizations operate through
detailed linear planning and control. This
works well in slowly evolving markets
This mindset of certainty & security is
about playing not to lose, being in control,
and replicating the past. Market is fixed.
Competing for market share
4. From McKinsey & Co.
The traditional mindset no longer fits
today’s fast paced world
The mindset of discovery and
opportunity is about exploration and
dealing with constant challenges and
change
Markets are not fixed, but are evolving
5. Business Model Shift
Shift from
traditional model to
more agile
Speed – Jeff Bezos
Decisions
Opportunity arises
“Call a meeting”
6. Definitions: Strategy
The science of planning and directing
large scale military operations, (as
different from tactics) of maneuvering
forces into the most advantageous
position
Skill in managing or planning by using
stratagem, (stratagem = scheme or
plan for achieving a goal)
7. Goals (what do you want)
Goals in business.
What are the goals of a
firm?
Mission statements
Which are the most
successful firms?
How do we measure
success?
8. THE COMPANY AND THE
WESTERN BUSINESS MODEL
BUSINESS IS WAR
Historically in war, the
individual soldier was
not important
Historically in business,
the individual
employee (and
customer) have not
been important either
10. At the Office
Don’t be friends with your colleagues,
because business is war (MBA)
If employees leave, or become ill, they can be
replaced easily. The success of a company is
not dependent on individuals
Education: Don’t be friends with students
Anyone can be replaced, even the CEO or Founder
Examples: Steve Jobs, Howard Schultz
11. The Company is always
most important
Letting older employees go
2009 Film: Up In The Air with
George Clooney
T-SA
12. THE FOUNDATIONS
STRATEGY consists of several key areas:
Leadership
Decision-making
Planning
Motivation
Change
Analysis
Synthesis
It is assumed to be a function of top
management
13. Management means
that we can
“manage something or someone.
That means we can control
something or someone”
15. In Control?
We think of strategy as a large-scale visionary
tactic, similar to that of an army in warfare
Many businesses do indeed have “war rooms.”
MBAs in the USA read the “Art of War”
The reality is most managers cannot know how all
the areas on their company are functioning
Most managers, (like most people) are not in
control. They just think they are.
18. Control versus
turmoil and chaos
Turmoil is not a
temporary period
in the business
environment
anymore. It is
the business
environment
19. “If you’re not bloodying your nose in today’s
warp speed economy, we have a word for
you………………dead”
Malcolm Forbes, Industialist
20. Large Scale-Small Scale
Big changes are easier to make than
small ones.
In meetings, it may take hours to
discuss hundred dollar items, while
million-dollar items go fast. Almost
everyone has something to say about
a small item, but few want to take a
position or offer a comment on a
large, important item
21. Changing course in a
large company
Is like turning an ocean liner
around
It’s not easy!
22. What is a healthy organization?
A healthy
organization is not
always an affluent
one.
Same as with a
person.
23. Unhealthy Organizations
What gets a firm into trouble are:
Poor leadership styles
Poor internal relationships
Managerial blind spots
Poor communications
What else?
Firms always hope to turn the company
around without making changes in these
areas. Why?
25. “The world we have made as a result of the level of
thinking we have done thus far creates problems we
cannot solve at the same level of thinking at which
we created them”
Albert Einstein
27. The business world is moving
faster than at any point in history
Companies that can adjust to
changing market conditions have
competitive advantages
28. Change
Change is scary because it is the unknown
Change is scary because we are forced to
deal with ambiguity, (chaos)
People rely on what has worked for them in
the past
Past success is no guarantee of corporate
survival
Complacency about the past may lie at the
heart of many problems
29. We are tied to the past
We think what has happened in the past will
continue to happen
Biggest job for most managers is to
convince employees that change does not
mean loss
Afraid of new technology, afraid not to be in
control, afraid of a different situation in
which competency will be questioned, afraid
to have to ask for help
Change means letting go of our investment
in the past
30. A letting go experience
Life is a letting go experience
What are we letting go of?
SECURITY
In “change”, the past offers security
31. The Business Structure
Firms are designed to create structures
around people to make them feel safe
Businesses are cautious, conservative,
defensive structures
We like to think of them as logical, practical
places where things run smoothly and
efficiently
In reality they are as logical or chaotic
(fearful) as the people who work in them
32. Managed for survival
Corporations are managed for survival
They fail to introduce new products for fear
of cannibalizing current product lines
They turn down acquisition opportunities so
as not to dilute earnings
They prize rational decision-making and
internal control systems
33. When the pain of staying the same becomes
greater than the pain of changing, people
will change
The best time to change is before
you have to
35. Change must touch and be accepted by
everyone in the firm, especially managers.
Managers don’t want to change
They are the ones with the
biggest investment in the past
and maintaining the status quo
36. People say that like change
Most people say they like change
because this is what they are
supposed to say. Be modern, be
trendy, be cool…..be hot.
Managers who secretly do not want to
change will not inspire employees to
change
37. Every person has 2 reasons
for doing something
a good reason
and the real reason
38. Fears associated with change
Most people are afraid of change
One reason is lack of confidence in their
ability to adapt to an ambiguous or
unpredictable environment
Change is the unknown and what we don’t
know we fear, (true for situations and also
people)
List of people you’re afraid of
Most people view change as negative
39. Change Resistance
Resistance comes from:
Fear of the unknown
Lack of information
Fear of failure
Reluctance to let go
Lack of perceived benefits
Threats to powerbase
Fear of looking foolish
Feeling of being vulnerable
Threats to self esteem
Loss of control
40. Change Resisters
It is said that a woman marries a man
expecting he will change but he doesn’t,
while a man marries a woman expecting
that she won’t change, and she does
In fact, both sexes are change resisters
Most people want to change, but spend
their lives resisting it
41. An Alternative
Change is usually only acceptable if a
better replacement or alternative is
available
Examples: career, relationships
Jewish people in WW2
A condition of successful change has
always been the acceptance of the
uncertainty of the future
43. People do things for their reasons, not
yours and not mine
Motivation is the art of getting
someone to do what you want them to
do because they want to do it
44. Motivation is the art of getting yourself to do
something because you want to do it, not
because you have to do it
You have a higher chance of success if
you feel it’s good for you and not if you
think it is good for you
45. Success is not a question of time,
But of motivation and desire
46. “There are two ways to move
people, interest and fear”
Napoleon Bonaparte
47. Make it Personal
When something becomes personal it
becomes important
You can get people on board if you
show them how the change will affect
them for the better. Communication is
important
In dealing with employees, it is not
enough to appeal to them on the basis
of loyalty to the company.
48. Example from Training
From POV management the training
was designed to increase the
effectiveness of the company. This is
why the company bought the training
program
For the POV employee, it was to
upgrade the skills of the individual
49. Training versus Education
To change behavior,
you must change
feelings and beliefs
This requires more
than training. It
requires education
When you train you
teach a task, when you
educate you deal with
people’s feelings and
beliefs
