MC, Strategy and PM Flashcards
PMS to create value / challenges of designing PMs for value creation / accounting measures create accountability / financial and non financial measures / limits of MA Span of control / influence
1
Q
Simons explanation of the facilitation of value creation
A
Hard wiring of the organisation
2
Q
Ohms Law
A
Simon compares to accountability systems Current = voltage / resistance Current = value creation Voltage = Potential of the firm (want to maximise) Resistance = human resistance
3
Q
Wheels of accountability
A
Cash -> (sales) -> Profit -> (profit) -> ROCE
Cannot control all cogs - have to influence them
managers partly reliant on other managers to achieve their own goals
4
Q
Span of control
A
Less than span of accountability and influence
5
Q
How can resistance be reduced
A
canvassing key supporters of change
e.g. pernod diversity champions
Toyota change management influence maps
