Midterm-Final Study Deck Flashcards
Define Performance Management
The ongoing assessment and improvement of key business processes in order to drive superior results
What are the Performance Management goal
Improve faster and better than competition
How does performance management work?
Focuses on capabilities and processes
3 types of performance management
Process management, Business assessment/measurement, Business improvement
What are the key elements of process management?
DMA(I^2)C:
Define: Identify customers, suppliers, etc
Measure:Create outcome measures and predictive measures
Analyze: Use measure to compare performance w/ goals/benchmarks
Improve/Innovate: make improvements routinely
Control: Ensure consistent performances
Define Process Mapping
Describe and clarify the process of workflow visually
Define Business Assessment
Comprehensive evaluation of business performance and
business process management against a core set of
fundamental business excellence criteria
What are the key roles of leadership?
Create and communicate a clear vision and direction for
the business and fully align the organization in support.
Build capabilities for future success while delivering
current results by effectively balancing long term and
short term priorities
What is Customer Focus
Design, develop and deliver products and services
based on an accurate understanding of, and a
commitment to, creating true value for the customer
that is superior to competitive options
What is Process Management/
High Performance Environment
Use a process-based view of work that integrates
multiple functions working in collaboration to create a
high performance environment
Why use a Fact-Based Management & Evaluation
Use a system of balanced measures that are aligned
with the business goals and strategy. Include outcome
and driver metrics that are both leading and lagging
indicators of performance. Benchmark against
standards of excellence as well as competitors.
Why use Continuous Assessment & Renewal
Use comprehensive criteria to routinely assess the
business and validate findings through
an independent review.
Develop clear strategies to sustain and
enhance business results in the future. Align plans,
policies and practices to support these strategies.
Characteristics of a Well-Dressed Measure
Clear description Provides comparisons Identitifies the owner Improvement initiatives Performance status
Why do organizations implement a formal, ongoing Business Improvement process?
When improvement experts are fully
supported by senior management and trained
in the use of proven improvement processes,
methodologies/tools, they routinely achieve
higher project success rates and
deliver better overall performance results
3 core elements of Business Improvement
Role of Leadership
Experts & Training
Methods/Tools
Roles of Experts in ranking order and what they can do
- Business improvement leader: Work w/ business leaders
- Master Black Belt: Expert in improvement projects and training black/green belts
- Black Belt: Manage improvement projects
- Green Belt: Trained in project completion
Methods for Business Improvement
PDCA (Plan, Do, Check, Act) Six Sigma Lean Design for Six Sigma (DFSS) Business Process Reengineering (BPR)
What is PDCA?
Plan, Do, Check, Act: An iteractive four-step management method used for the control and continuous improvement of processes and products (Deming Circle)
What is Six Sigma?
Six Sigma programs utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes by using the DMAI2C methodology
(Six sigma = 3.4 defects/million opportunities)
What is Lean?
Business Improvement to eliminate all Waste (anything that does not create value for customer) in value creation process
What are the processes of Lean?
- Define Value
- Map Value Stream
- Create Flow
- Establish Pull
- Pursuit Perfection
What is Design for Six Sigma (DFSS)?
DFSS is used to design new processes
(new products/services) and seeks to avoid manufacturing/service process problems by using advanced Voice of the Customer (VOC) techniques and proper systems engineering techniques to avoid process problems at the outset. It utilizes the DMADV methodology
(Define, Measure, Analyze, Design, Verify)
What is Business Process Reengineering (BPR)?
BPR involves radically redesigning and streamlining how an activity is performed, with the intent of achieving quantum improvements in performance
Types of Risk
- Strategic Risks (general, supply chain, projects)
- Market Risks (macroeconomic, market development)
- Operational Risks (technology, process, org.)
- Financial Risks (profitability, funding, liquidity)
- Geopolitical Risks (sociopolitical, legal, infrastructure)
- Catastrophic Risks (environmental, manmade, violence)
Define Stakeholders
The people and groups that supply a company with its productive resources and so have a claim on and stake in the company.
Name the types of Company Stakeholders
Stockholders Managers Customers Community/Society/Nation-State Supplies and Distributors Employees
Who are the most important stakeholders?
Customers. Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones
What is Corporate Social Responsibility (CSR)?
The way a company’s managers and employees
view their duty or obligation to make decisions that protect,
enhance, and promote the welfare and well-being of
stakeholders and society as a whole
Name the Approaches to Corporate Social Responsibilty
- Obstructionist: Don’t behave in a socially responsible way
- Defensive: Stay within the law but nothing more
- Accommodate approach: Balance stockholders goals
- Proactive: Actively promote interest of stakeholders
Name the components of the CSR strategy
Actions to protect environment Protect well-being of employees Promote workforce diversity Ensure company operates honorably Actions to better the world (ex. community service)
What are the parts of the Triple Bottom Line?
- Economic (profit)
- Social (people)
- Environmental (planet)
Name the possible outcomes of pursuing a CSR strategy?
Moral case (stakeholders benefit) Business case (competitive advantage)
Define Innovation
The act of introducing novel and useful ideas
into value-creating
new products, new services, or new processes
Difference between Innovation and Invention/Creativity
Invention/creativity: the generation of a novel and useful idea
Innovation: the act of implementing novel and useful ideas into value creating new products/services
Define Creativity
The ability to produce work that is useful and novel
What are the Development Strategies?
- Maximize Fit with Customer Requirements
- Minimize Cycle Time
- Control Development Costs
What are the Stages and Gates of Stage-Gate Process for Product Development?
Each Stage includes: Deliverable, Criteria, and Outputs
Each Date decision is to: Go, Kill, Hold, or Recycle
What are the NPD Timing Strategies?
- First to Market
- Fast follower
- Niche
- Reactive
What is the First Mover Strategy for NPD?
Innovation culture, able to create and then dominate the market against fast followers
What is the Fast Follower Strategy for NPD?
Firm must be very good with innovation and have strong R&D, and be good at figuring out why the first mover failed to exploit the market so they can leapfrog fast and grab the market
What is Niche Strategy for NPD?
Focus on specific niche market, requires a close connection to customers on what they want as far as product differentiation
What is Reactive Strategy for NPD?
Firms that are followers and have a focus on operations, have a wait and see approach and look for low risk opportunities, will copy proven innovation
Name the types of Level of Focus Strategies
Advanced R&D Projects: New technologies and new uses
Breakthrough Projects: Combo of new technologies and uses
Platform Projects: Next generation/new system
Derivative Projects: Rework existing platforms to fit a particular need/niche
Types of Development Strategies
Fit to Market
Cycle Time
Cost Reduction
Timing Strategies
First to Market
Fast Follower
Niche
Reactive
Level of Focus Strategies
Advanced R&D
Breakthrough
Platform
Derivative
What are the organization design principles?
Designing motivating jobs
Structure
Integrating
Rewards and on-going measuring/monitoring
Define Corporate Entrepreneurship
The intention to engage in the creation of new products or processes and/or enter into new markets
Define Entrepreneurial Intentions
Motivational factors that influence individuals to pursue entrepreneurial outcomes
Define Entrepreneurial Self-efficacy
Conviction that one can successfully pursue entrepreneurial outcomes
Define Perceived Desirability
Degree to which a potential entrepreneurial outcome is evaluated as favorable or unfavorable
Steps of establishing Corporate Entrepreneurship
- Commitment/Culture
- Plan & Organize
- Technology
- Training
- Customer Focus
- Resource Management
- Support Structure
- Rewards
- Evaluation System
List and define the Growth Strategies
- Penetration Strategies: Existing customers to buy more of current products
- Product Development Strategies: Existing customers to buy new products
- Market Development Strategies: New customers to buy existing products
- Diversification Strategies: New customers to buy new products
Name and describe the types of Integration Strategies for growth
Backwards integration: A step back (up) in value-added chain towards raw materials
Forward integration: A step forward (down) in the value-added chain toward the customers
Horizontal integration: Buying a competitor
Define Opportunity Overload
Rather than lacking enough sales or new market opportunities, many firms face an abundance of opportunities
Define Abundance of Capital
While most stable/established firms often have difficulties obtaining equity, most of the rapidly growing firms were not constrained by this
Define Globalization
The shift towards a more integrated and interdependent world economy
What factors drive Globalization?
- Recognition of mutual benefit
- Diminishing distance and Technology advancements
- Evolving Political Economies
- Declining barriers to trade
- Development of Multi-National Enterprise (MNE)
- Development and support of global instituions
Define Political Economy
The interdependent nature of economic, political, and legal systems in a county
Define Free-Trade Doctrine
The idea that if each country specializes in the production that it produces most efficiently, global resources will be used well with low prices
Define Multinational enterprise (MNE)
Any business that exists in two or more countries
Define Globalization Process
The process to integrate political, social, and economic aspects across countries and cultures
What are some examples of Barriers to Entry
Economies of scale
Brand loyalty
Government regulations
Define Global Outsourcing
Buying products/inputs abroad to lower costs or increase quality
Global Enviornment
Conditions outside the organization that affect the company’s production. Made up of Task and General Environment
Define Task Environment
How suppliers, distributors, customers, and competitors decisions affect the company
Define Values
Idea about what a society believes to be valuable
Define Norms
Unwritten rules about how to act in a culture
Name Hofstede’s Dimensions of of National Culture
- Indiviualism vs. Collectivism
- High vs. Low Power Distance
- Short Term vs. Long Term Orientation
- High vs. Low Uncertainty Avoidance
- Achievement vs. Nurturing Orientation
Why enter foreign markets?
New customers Spread risk Lower costs Access resources/capabilities Exploit what other counties are good at
What are the Strategies for Competing Internationally?
- Multidomestic strategy (think local, act local)
- Global strategy (think global, act global)
- Transnational strategy (think global, act local)
What are the Strategies for entering international markets?
- Export goods domestically
- License to foreign firms
- Franchise to foreign firms
- Establish a Wholly-Owned Subsidiary(Acquisition or Greenfield)
- Strategic Alliances with foreign firms
Define Dumping
Selling goods in foreign market below home country prices
Define Distributive Justice
Fair distribution of pay and treatment no matter a person’s characteristics/background
Define Procedural Justice
Fair process to determine how people receive benefits
What are the Managerial Intervention options for culture difference issues?
- Adaptation
- Structural Intervention
- Managerial Intervention
- Exit
Define the Glass Ceiling in diversity situations
The barrier preventing women and minorities from being promoted to top corporate positions
Define Schema
Predetermined opinion created from memory
Define Salience-effect
Focus on people who are different
Define Quid pro quo
Asking for/forcing an employee to perform sexual favors in exchange for a reward
Define Ethics
Morals to decide if something is right or wrong
Name the Ethical Decision Making Rules?
- Moral Rights Rule: Protect fundamental rights
- Utilitarian: Greatest good for most possible people
- Justice: Be fair
- Practical: People outside and inside the company agree with the decision
Define Self-Dealing
When managers use their high position for their own self interest
Define Short-Termism
Tendency for managers to focus on short term goals, which makes it easier to be immoral
