When Established Superiority Isn't everything !!

When Established Superiority Isn't everything !!

Posted By Muhammad Umer Toor, 21-Nov-2008.

Always keep in mind what first paragraph of page # 199, 227 (exhibit 8-7) of Management book [1] states, whenever you're in the business. Even when your organization is touching skies or, worst, in a downturn, and if you cease to bring innovation, cease to find new directions and so on and so fourth - this is a worst pitfall. Becoming best is one thing, and trudging along a constant line is not a safe strategy. Because, whenever you find that everything is going smooth, actually something is going wrong there. This happens mainly with those companies whose tasks demand optimum performance; when everything around them is changing without any notices. What I learnt from Stanely Hainsworth, 'former creative genius behind campaigns for Lego, Nike and Starbacks' [2], is that eternal reconstruction is the price of success for any brand. Editor at Entrepreneur magazine calls it as 'Survival of Fittest' [3]!

The basic idea behind finding new directions or cracking innovation, a necessity of established companies and else, is well explained by Hainsworth, and in his own words:

"Many [companies] wait until a crisis hits and then go through the cycle of
ahiring freeze, cost-cutting and
layoffs. [Refocus] while you're strong, while have the resources and before you
start cutting."[4]

This happens (-unexpected shocks-) mainly becuase of 'market-shifts', customer choices change (like our favorite ice-cream example!), and of course, due to dynamic enviornment, generally. [5] Doing something ahead of hard times isn't at all a weak idea. It's an expert view as well as well-researched thesis. (To quote you one more example). According to a research done [6] on the four common causes of growth stall, two majors reasons given for growth stalls confirm Hainsworth point of view.

One big reason, according to HBR [7], is that 'innocvation management breaks'. Second, because 'company lacks a strong talent bench'. [8]

Once, I asked a senior student of criminal psychology, "What is the remedy for a criminal-minded person?" And, his reply, which I found quite witty, was, "You shouldn't be criminal in the first place." 'That's the best strategy', he whispered to me without even whispering! And, business studies are no exceptions!

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Notes:

[1] Page 199 (Chapter # 7), Ist paragraph states the successful plans are not likely to work in changed situations. Whereas page 227 (exhibit 8-7) (Chapter # 8) urges the need for creating strategic flexibility, i.e, it consists of: monitoring and measuring results; gaining fresh perspectives and ideas outside organizations; sharing negative information and learning from the mistakes; while making strategic decisions, having multiple alternatives. (From: Management, 9th Ed., by S. P. Robbins& M. Coulter.)

[2] Quote from Entrepreneur, November 2008, article, INSGHIT "Survival of the Fittest,' by Lindsay Holloway.

[3] Quote from Entrepreneur, November 2008, article, INSGHIT "Survival of the Fittest,' by Lindsay Holloway, Pg. # 33.

[4] Quote from Entrepreneur, November 2008, article, INSGHIT "Survival of the Fittest,' by Lindsay Holloway, Pg. # 33.

[5] Quote from Entrepreneur, November 2008, article, INSGHIT "Survival of the Fittest,' by Lindsay Holloway, Pg. # 33.

[6] When Growth Stalls, by Mathhew S. Olson, Derek van Bever, and Seth Verry, HBR (Harvard Business Review), OnPoint, Fall 2008, Article Published Originally March 2008.

[7] Excerpt from HBR (Harvard Business Review), OnPoint, Fall 2008, When Growth Stalls, from Idea in Brief coulmn, Pg. # 33, Article Published Originally March 2008.

[8] It is further explained in the article, (OnPoint, Fall 2008, When Growth Stalls, from Idea in Brief coulmn, Pg. # 33, Article Published Originally March 2008) as:

"The firm has few executives and staff with strategy-execution capabilities."

How Cisco Uses Our Chapter 9 Pg # 241 to 'See the Future'*

Since when I started reading out carefully Harvard Business Review (HBR), I have come to respect my course management book (i.e, Management, 9th Ed., Stephen P. Robbins & Mary Coulter). I have appreciated that this book summarizes or states, at least, all those principles on which all of today's successful organizations work and win.

Quoting a small example which I came across in this month's (Nov.) issue of HBR, will make you take my claim more seriously.

Cisco Systems are "the world's largest provider of internet networking." And, Cisco's new CEO John Chambers, who will begin his 14th year at Cisco in January, has always been good at listening. And, so has his company been such that - they have scored loads of capital, merely by listening to their clients and customers, as HBR puts it.

"Cisco is able to predict trends six to 8 years (remember budgeting, forecasting, or projecting is always futuristic) in the highly volatile technology market by recognizing early-warning signals its customers unwittingly give off**." This is what they call "market shifts." And, Chambers, Cisco's CEO, himself abandoned his own old 'command-and-control' style in decision making. (I will share more ideas on this topic in future posts, hopefully.)

Cisco was founded in 1984. It did went in a downturn (i.e, crisis). And it came out. Regained its superiority in Internet Communications Equipment providers. But. Only through seeing the future. And, it has been doing so for long only by listening to its customers.

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Notes:

* Harvard Business Review, November 2008. "The HBR Interview: John Chambers", Heading Topic & Pg. 241 of, Management, 9th Ed., Stephen P. Robbins & Mary Coulter
** Harvard Business Review, November 2008. "The HBR Interview: John Chambers"

Questions on "7 Habits.." 'Principles of Change'

The question of this discussion demands, before anyone comments on it, that we must have a deep understanding of the content of this book. Even lacking this prerequisite, I'll not stop from commenting on it.

I have perplexing questions about the 1st three (3) habits, because I've only touched these ones. And, I don't feel shy publishing their fury.I too realise, as some others have - I am a reactive person. After reading a lengthy, tedious and dense habit no. 1, I have seen in the light of my small experiences that it is easy starting doing something to create a change. This happens because the real enemy is spotted and teh friend discovered (identifying one doesn't let the opposite go undetected). And, I think, there lies a victory on the part of the author for he has shown other 'selfs' to identify their enemies and friends. Thus the conscious reader starts thinking and doing to bring about a change. All they have to believe in, as Obama says, "Yes, We Can!" And, to my knowledge, the problems this book (7 Habits, of course) address to are not unique to humans. They are old-age, but not out of order. Some are (this book focus on) perennial, some may not be.

Turing back to what interests me more, on this forum - My problems with the 3 chapters. I fear I don't have capacity to mention all of them here (imagine how idiot I am). But I will share what I am discussing with others these days.My 1st problem for today is - bringing a change in (a pathetic) situation which goes against my interests, and I realise it, through an independent will (the latter this the only hope in Stephen's eyes), even when all perceptions are clear!AS all of you know, Covey says that in order to change a situation, you need to change your perceptions. My perceptions anout the problem, do not doubt are clear.

No change yet!

Example: I made some years ago a contract with God, The Absolute, that for Him only I will wake up early in the morning around 5-6 am to meet Him under the tense but refreshing canopy of earth. You can understand how big this priority is, of course if you are not a secular fundamentalist who abhors what was beyond and before the Big Bang. As a matter of fact, I say this regretfully, that I didn't meet Him in several years for time period more than 5 months. And, even that's an exaggeration. If there is no quick fix, where is the sluggish fix that 'shall last for eternity'? How I can change this situation- remember the compulsion- how do I change this situation .... beginning first in the mind? Such that .... mind triggers or initiates the .... movement .... and then comes 'action to commitment' period? (Managers always work under compulsions.)

Take the people around you, not to blame or hurt anyone. But first please answer me. Is Not 'Perception' About Objective, Adequate, Full, Deep and Correct knowledge of the reality? If it is not in your opinion, please re-read the book.Take the world now: Many knowledgable persons who know so much act against what they know of. AS you may find (I have found) the knower of law exploding what is legal and what is lawful; you'll find a doctor who smokes, he the one who warned me not to touch it . Mention an evil, lo! they, the intelligent, knowledgable beings the ultimate man, has surpassed it. Many CSS officers had become criminal minded. DO they not see? DO they not know the complex implications of their immoral actions on their own self and on the large society? Where lies the difference?

Sticking to correct moral principles and its logic can be the only solution, as Covey would like to agree. Because, he quoted Cecil b. deMille saying,"It is impossible for us to break the law. We can only break ourselves against the law."

The discussion has to come to an end. Yet, I am sceptic about the mechanisms of bringing the change, maybe I am not clear about the practical ones, suggested in the 'Habits'. I also do not demand the ready-made quick fix pills. I believe in revolutions, small revolutions, big revolutions, results of constant meditations and actions, actions and meditations. The question that I could not solve I leave that up to you to solve for me, yourself and others: Where's the tipping point? Where lie those small changes that trigger off to make big changes?

Proceedings of Management Lecture- Ch# 7(Part 1), Dated 28-Oct-2008

Some Notes to Publish, Some Thoughts to resolve....

(The Then) Agenda.

- Presentation on the 3rd Habit from "7 Habits of...."
- Lecture on Chapter 7 (Part 1), till "Approaches to Establishing Goals"
- Announcement of Quiz on Tuesday, 4 Nov, Consisting of Chap. No. 1, 6, 7
- Formation of Class Representatives of each Group

Summaries.


-Habit # 3
-Need of Plan
-Type of goals
+Real and Stated
-Types of plans
+four ways.
-Approaches to establishing/implementing goals.
+Traditional level
+Decentrelization
+Cross functional teams (Information Not Disclosed)

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- Habit # 3: Begin with the End in Mind. (Part 1)

In the beginning of this chapter Covey has summarised whole chapter by simply quoting following of poet Goethe's words: "Things which matter most, must never be at the mercy of things which matter least."

And, the vaccum is filled very well by Dr. Covey. In this chapter, Covey provides his diverse audience with many engaging, comprehenseve 'effective' tools for managing all of our duties, tasks and obligations as to produce outcome most beneficial to human nature.

His first step is to differentiate between what is: important-urgent, important-non-urgent, non-important-urgent and non-important-non-urgent. These he calls quadtrants. Suffice mentioning the fact that effective managers and people focus on Quadrant 1 and 2. and the results be in one's life: focus, harmony, control, few crisis, discipline.

- Lecture on Planning, Need of, Types of, Approaches to Establish,

* Need for Planning:

-Provides Direction,
-Reduces Uncertanity, as it claims clarity
-Increases Efficiency, by focus
-Establishes Goals, so that we know where to head
-Associated Positive Financial Results, this factor intoduces the concept of Planning-Performance, that means mere planning is not enough, implementation and results are interconnected to planning of an organization

Take the example of course outlines or college schedules, and the need for planning would be highlighted. imagine what happens when you start your semister or course and end it without knowing what were your goals, where you're supposed to reach and what you're deemed to achieve- at the end of the day all of your efforts, talents and hardwork is evaporated. So, do you feel need to start to plan out things?

*Types of Goals:

Goals in short are the foundations of management science/art.
In real and profession life there are two kinds of goals:
-stated goals
-real goals

Stated goals are those statements which show what we want to achieve, what we aspire to do. From organization's perspective, stated goals are "outlines of what an organiztion say, and what it wants its stakeholders/customers to believe, its goals are."
Real goals-the goals organization actually pursues. It is manifested only in the 'doings' of its members, not in it's sayings.
One thing must not go unwatched in the discussion of goals. There maybe a conflict/contradiction b/w what a company say and what it does. The gap b/w stated and real goals is- conflict in stated goals.

*Types of Plans:

There are four ways to describe a plan, we'll mention only there names:
1. Breadth: strategic plans (positioning of entire org. relative to enviornment); operational plans (to limit details as to how achieve overall goals)

2. Time Frame: Long-Term Plans (beyond 3 years); Short-Term Plans (1 year or less)

3. Specificity: Directional Plans (in which intent is revealed, its flexible, leaves room of interpretations); Specific Plans (Rigid, clearly defined, no place for interpretation)

4. Frequency of Use: Single use; Standing (ongoing plans)


- Approaches to establishing/implementing goals.

- Traditional Goal Setting:

In a traditional goal setting, there's always an elite which works at top management level, very few in numbers. They're the head, the boss. And they are followed by a number of officials, managers, employees, workers etc., but in "hierarchy", in descending order everyone gets samller in rank.

Our Instructor played a game with us. It was aimed at showing us how a "traditional goal setting" decision making and implementation process works.

He chose 4 students, made one of them boss and rest followed him in the order of hierarchy. Then he said told the boss that his company needs to cut off working costs. So the boss immediately ordered the guy 2nd in rank, to cut off their company's costs by 20%. Then he never pay heed what the hell other were going to make- his concerns snored with the outcomes.

Ordered issued, but the same order flowed down the management hierarchy. like mercury does on a sloping thing, to the person working a lowest level. In the process, notice, nobody shared any thought, nobody dared to define their cross-bounderies and not even their perspectives. Everyone worked from his own perspective, because he owned it and was jealous to share it as he thinks its a fault of his company culture. Even CEO didn't discuss his vision with line managers, line managers didn't discuss anything with those under them and so on. Therefore, the goal lost its clarity and unity- it blew up into fragments.

The final outcome, in our game, was that the employee at the bottom had to sacrifice from his usual service-time, causing organization long-term damages. Because the goals were not clear to the down-level employees, and because the organization had lost unity, the effect of one goal achieved has been cancelled by more severe loss of reputation.

What is needed in an organization is: a corporate culture in which the heirarchic levels break up, where it needs to. So that the bosses assure that plans are not being imposed from the top. And, that the different isolated levels of the order mix up with each other, so as to let everyone understand complexity of the problem and find integrated solutions..... I call it- decentralization.

"Decentralization, if implemented with sophistication and best monitring tools, could be great."

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Reader's comments, suggestions, rather lessons are much awaited and most welcome.

Highlights of Management (170) Lecture, 23-oct-2008

Summaries

(The Then) Agenda:
-Brain Storming
-Design Thinking, Innovation
-Information regarding Kush Foundation
-Web Addresses for students to frequently visit
-Motivation to write Mission Statement on our personal and professional end-goals
-Tutorial on PowerPoint
-To read Chapter No. 7 in Group Formations

Web Addresses to be visit:

-www.globalgiving.com
Description: 'GlobalGiving connects donors with community-based projects that need support, all over the world.'

-ocw.mit.edu (don't add ''www'')
Description: This website of world's leading university- Massachusetts Institute of Technology, USA- provides Free lecture notes, exams, and videos from MIT. Here No registration required!

-www.greenwhite.org
Description: It is a unique forum for all businessmen to discuss their new media marketing, startups, business models, and more.

-metacool.typepad.com
Description: Its all about DESIGN THINKING.

-www.ideo.com

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Class Proceedings 21-Oct-2008, Summary (Part 2)

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(In Detail, Some Notes)

Decision Making:

Decision making was the primary topic that received maximum attention in Sir's lecture. And we're all involved in.... Here the decision making was discussed from 'scientific' perspective. only, that had atleast one prominent quality: rigor. There are no traditional perspectives in the minds of modern management thinkers.Therefore, prepare yourself for exotic, 'out-of-the-box', unorthodox ideas and theories.

Decision making is a process. A methodological, step-by-step, rationalistic mechanism for solving... problems! Whatever they maybe, we need to have a 'uniform' process or model so as solve wide range of sticky situations. And we call it as- Process of Decision Quality'.

I'll only mention here some of the crucial factors involved in the 'Process of Decision Quality':
-Assessment/Identification of the nature of the problem
-Information regarding the merits and demerits of the choices at hand
-Value, which you prioritize
-Action Commitment, which is crucial in the implementation of a choice

The natural resources a human being has, which can be called the tools in decision making, are as following:
-Rationality
-Bounded Rationality*
-Intuition, call it 'gut feelings', 'snap-judgements', or 'auto-suggestions' (that sub-conscious mind generates)
Most effective tool in decision making is 'rationality', i.e, judgements based on reason rather than
mere feelings or values.

Then there are four types of decision makers (D. M), who fall in different categories owing to there bias in favor of any 'mental' decision-making approaches, we have reffered to:
-Directive D. M: he has low patience for ambiguity or uncertainity, and is very rational
-Analytic D. M: he has high patience for ambiguity, and is very rational
-Conceptual D. M: he has patience for ambiguity, but, is intuitive
-Behavioral D. M: he has low patience for ambiguity, and is intuitive.

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Notes:
* Please wait for updated editions of the present post for more clarity and depth.

Class Proceedings 21-Oct-2008, Summary (Part 1)

This post is a mere narration or revision of the class lecture and activities done on 21th of Oct.

What we learned, An Overview:

-Speed Reading.
-A student-group lecture/representation on the 2nd Habit from S. Covey's "The 7 Habits..,". namely, "Begin with an End in Mind."
-On Decision Making

• Rational-Choice Decisions
• Intuition
• Bounded Rationality.

-Process of Decision Quality

-Kinds of decision-makers; rationalistic vs intuitive

-A game on the case of 'Bounded Rationality'

-Story narrated by the Professor on Rational Decision Making