Chapter 8: To Know Flashcards
Manager must
Develop culture
Encourage innovation
Manage change
System of shared beliefs/values guiding behavior (internal)
The way we do things around here
Set of signals of what is considered appropriate v inappropriate (external)
Culture
What has a high impact on people leaving their job
Cultural fit
Culture is
Personal
Organization
Corporate
Global
Financial value & culture
Skill and ability
Cultural fit
Zappos and tony hsieh
Example of organizational culture
Augusta National (Ginni Rometty- CEO of IBM)
4 elements of corporate culture
Shape attitudes
Reinforce Beliefs
Direct Behavior
Set Expectations
Emphasize authority tradition and clear roles
Hierarchical cultures
Process efficiency and slow change
Rational cultures
Emphasize change, growth, creativity, and competition
Entrepreneurial cultures
Emphasize teamwork, collaboration and trust
Team cultures
Example of corporate culture
Disney traditions with Mickey
What is the major reason why companies run into problems
Lack of cultural due diligence
KPMG study mergers and acquisitions
Analysis of 700 deals over 2 years, 83% failed to produce benefit & 50+ destroyed shareholder value
With KMPG M&A what were the four reasons only 17% added value?
Bankers
Lawyers
Consultants
Government Officials
Examples of Global Culture
Aircraft departures
Rail passengers
What we can see
Observed culture
What they say
Core culture
Values or beliefs about he right ways to behave
Core culture
Edgar Scheins (corporate) Levels of Culture and examples
1) visible: above water line - see
ex/ dress, office, symbols, slogans
2) invisible: (below-say)
ex/ expresses values - HP way
ex/ titanic
Four components of observable culture
Stories
Heroes
Symbols
Rites & Rituals
Heroes
Shared knowledge of hero stories
Establish or represent core values
Ex/ employees, customers, leaders
Ex/Milton hershey and hershey school
6 people associated with heroes and their companies
Sam Walton and Walmart Ken Frazier and Merck Walt Disney and Disney Sheryl Sandburg and Facebook Indra Nooyi and PepsiCo Ursula Burns and Xerox
Rites and Rituals and example
Creates connections: people and org
Builds morale and engagement
Shared hands on experiences
Ex/ Nike campus tour
Symbols and example
Common understanding of culture
Easy to recognize (you and others)
Ex/ logos like Tony the Tiger for Kellogg’s and nittany lion for psu
Stories and examples
Easily tempered & passed on
Instills deeper cultural understanding
Ex/ Nordstrom and customer service: guy with suits they didn’t finish
Stories of how Harland Sanders led KFC and how Dave Thomas led Wendy’s
Where performance and culture intersect
Financial
Leadership
Culture
What do the best companies strive toward and its how you do what
Culture and it’s how u make money
Taking a new idea and putting it into practice
The process of translating an idea or invention into a good or service that creates value or for which customers will pay
Innovation
Big 3 + 1
Process
Product
Business Model
+1 is Sustainability
Largest category of innovation
Day to day changes in business
Makes us money and saves us cost
Process
Lean Principles equals
Reduction of Waste
Six Sigma equals
Process Improvement
Process example
Vending machines and debit cards or healthier foods inside
Product innovation
Something you’ve never seen before (brand new) or product enhancement ( innovate around existing)
Examples of Product Innovation
Tile tracker
Slam Door/Nesting Doors
Drones
Benefits and Side Effects to Product Innovations w Drones
Benefits: Search and rescue Real estate Hollywood Photography
Side Effects:
damage property
Privacy
Business Model
Create, Deliver and Capture Value
Business Model Innovation of media, retail, education, music
Decline of Print
Online shopping
Online classes
Physical to digital owning to streaming
Business Model example
Nick D’Aloisio: changed text
Uber and Travis Kalanick: changed taxis
Instagram and Kevin Systron: changed pictures
Three problems for Instagram
Beauty
Speed
Distribution
Examples is sustainability
Zero Waste at Toyota/ Subaru
Tom Szaky and TerraCycle
Selling your ideas and examples
Commercialization
Ex/ Lonnie Johnson and super soaker
Post it notes
Organizational Protocols Supporting Innovation
Strategy: includes innovation
Culture: values innovation
Structure & Management: Supports Innovation
Staffing: For Creativity Innovation
3M corporation example
30% of revenue is new products
It is personal and organizational
“To make the form, nature, content, future course etc. of (something different from what is is or from what it would be if left alone”
Change defined
Change and People
Fear of the unknown (#1) Loss of Control (#2) Disrupted habits Loss of confidence Work overload Poor timing Lack of purpose Loss of face
Fundamental Change Drivers
Opportunity or Threat
Elizabeth Kubler Ross (dealing w grief/ change)
X & Y axis
6 stages
X- time
Y- motivation/ performance
Denial Anger Bargain Depression Acceptance Move On
Ex of Change drivers
Facebook buys Instagram.
Automakers and driver less cars
Detroit and bankruptcy: taken over by state
NCAA: schools in the big 5 leagues took over from NCAA
Two types of change
Transformational
Incremental
Opportunity/Threat
Can’t keep playing the game the same way and can’t use incremental change
Transformational change
Day to Day process improvements
Incremental change
What is IBM Corporations main line of business today
Services Provider
Burning platform
Associated w transformational change
North Sea on a burning oil rig: if you stay it’s certain death and if you jump into the freezing water it’s a probable chance
IBM as a burning platform did what
Strategy: downsize
Cut costs
Casual culture
Examples of transformational change
IBM
Hostess
Moneyball and Brad Pitt was an example of
People resisting change they didn’t want him to leave
Kurt Lewin and Change
Unfreeze
Change
Refreezing
Create a need for change: helping people understand a need for it
Unfreeze
Implement and manage the process of change: helping people go through the stages displayed by Elizabeth
Change
Stabilize the change and scan for the future: reinforce and make sure people don’t try to go back to old ways
refreezing
1 issue in change
Timing
2 issue in change
Communication
Two approaches to change
Change driver
Status quo
