Venture Management and Leadership

Venture Management and Leadership

Basic Management Skills Analytical Decision-making Communication Conceptual Team building

Decision-Making Skills What is the difficulty in decision making in

new companies?

Communication Skills Elevator Pitch

What is unique How can it be exciting Keep it simple Write it down – practice Practice Practice Practice

Team Building Skills Team members vs Team players Tools for teams

Leadership vs Management

Effectiveness and EfficiencyLeaders

Doing Right Things

Ineffective EffectiveIn

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ffec

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Man

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Doi

ng T

hing

s R

ight

Death(fast)

Success

Death(slow)

Survival

Innovation & Change Change

Alteration of status quo Innovation

new idea applied to initiating or improving a process Incremental Improvements (Kaizen) Breakthrough Thinking\

Characteristics Uncertainty Knowledge Intensive Controversial Crosses Organizational Boundaries

Kaizen vs. Innovation Innovation

Western Management deals with innovation which deals with large, short-term changes

Innovative technologies are not magical cure Kaizen

Japanese philosophy which subsumes all business activities

small, frequent, gradual improvements over a long term use of statistically based tools for problem solving

Class Exercise You are to work in teams of 3-5 and

identify some of the key changes occurring in industry. What are some of the external and internal forces motivating these changes?

Class Exercise (Response)

Forces for Change External Forces

demographics health consiousness affect on fast foods

Internal Forces quality improvement Tech Quality Plan

Dysfunctional Consequences

Curtailed Innovation Scapegoating Resistance to Change Turnover Conflict

Deming’s Seven Deadly Diseases

Lack of constancy of purpose Emphasis on short-term profits Evaluation of performance, merit rating, or annual

review of performance Mobility of management Running a company on visible figures alone Excessive medical costs for employee health care Excessive costs of warranty, fueled by lawyers who

work on the basis of contingency fees

Products and Services 80% of new products fail during introduction Reasons for Success

Better understanding of customer needs More effective use of outside technology Top management support

Horizontal Linkage Model

Tech R&D Mrktng Customer

Production

Time McKinsey & Co., 1990

6 months late, on budget 33% less profit On time, over budget 4% less profit

Thomas Group, Dallas Consulting 60-90% of Cycle time occurs outside of manuf.

Illinois Inst. Technology Blue collar productivity 80% White collar productivity 40%

Japanese Philosophy

Time Automation Solid Modeling Capability Paperless Factory Process Documentation Streamline Communication Employee Empowerment Team-based Problem Solving Flexibility Training

Case Study; General Elect. Problem: Speed up or die Solution:

6 plants 1 plant 28,000 parts 1,275 parts (40,000 options) Salesmen enter orders directly into PC

Results: 2 month backlog 2day backlog Delivery Time 3 weeks 3 days Manufacturing Costs 30% ROI = 20%

Case Study; National Steel Problem: 85-86 losses of $148 million Solution:

Reduced Job Classifications to 16 Increased Worker responsibility

Cost: 320 hrs classroom training @ $21,000 / tech.

Result: 5.5 hrs/ton 4.5 hrs/ton failed specs 33% 88 profits of $55 million

Case Study; Motorola Training:

Abolished ½ dozen pay categories Pay raise for each new skill added

Result: Defect rate 77%

Benefits; Time Response Benefits Capture Market Share Define Market Premium Price Inventory Levels Quality Productivity Morale

Strategy & Structure Structural (administrative) changes easier to

make in a mechanistic organization MBO TQM Re-engineering Systems Learning Organizations ABET

Class Exercise You are to work in teams of 3-5. Suppose

your firm has decided to reorganize into smaller enterprise management teams. What are likely to be some of key areas of resistance (concerns) that must be overcome in order to implement this change?

Class Exercise (Response)

Resistance to Change Self-Interest Misunderstanding and lack of Trust Different Assessments of the virtues of change

Change must be in the right direction

for the right reasons

Low Tolerance for change

Class Exercise You are to work in teams of 3-5. Suppose

your firm has decided to reorganize into smaller enterprise management teams. As a manager, how might you go about organizing for this change to overcome the inherent organizational resistance?

Class Exercise (Response)

Overcoming Resistance 3-Step Process (Kurt Lewin)

1. Unfreezing - awareness of need for change

2. Changing - focus on new behaviors

3. Refreezing - reinforcing new behaviors

Unfreezing Education & Communication Participation & Involvement Facilitation & Support Negotiation & Agreement Manipulation & Co-optation Explicit & Implicit Coercion

Managing Complex Change

ConfusionSkills Incentives Resources Action Plan

Change

Vision Incentives Resources Action Plan

Vision Skills Incentives Resources Action Plan

Vision Skills Resources Action Plan

Vision Skills Incentives Action Plan

Vision Skills Incentives Resources

Anxiety

GradualChange

Frustration

FalseStarts

Challenges of Organizational Change

Commitment of Senior Leadership Written Description of Changed Organization Awareness of Need to Deal with Resistance Adequate Resources to Support Change Balance Between Managing Change / Stability Conviction that Change must be tried Appropriate Reward & Recognition System

Communicate, Communicate, Communicate

Avoiding Disaster During Change

Involve People in Planning Changes Plan Change from Solid Conceptual Base Build Support Among Like-Minded People Don’t Ignore those Who Oppose Change Know the Territory Avoid Future Shock

Don’t Try to Mandate Change