Foundations of Management Week 3

FOUNDATIONS

OF

MANAGEMENT WEEK 3

Philip Mische, MBA

Adjunct Instructor

TEAM SEATING CHART

Analycia Willier-O Connor Leo Coughenour Alana Fix Jackson Bond

Bryan Salgado Erik Dahl Brenda Garcia Rodriguez Kohl Hedquist

Atheena Yang Nick Edwalds Gavin Renwick Laina Hooper

Kenneth Taraszewski Scott Moyer Eyobel Tsegabirhan Sam Wicks

Courtney Broyles Jake Veldman Bailey Watson Sicong Li

Christian McCleary Christopher Vang Mary Jane McClain Bailee Davis

Mustafa Elshami Josiah Wiest

Grace Mamii Grmawi Melake

Team 4

Team 1 Team 5

Team 2 Team 6

Team 3 Team 7

GOALS

THIS

WEEK

1. Continue to Explore

Basic Concepts of

Diversity & Inclusion

2. Practice Using Planning

Tools

3. Prepare to Do Team

Formation Next Week

DEBRIEF

LAST WEEK’S

CONTENT

4 students per group

3 important concepts

2 questions

1 frustration

THE VENTURE

CAPITAL

INDUSTRY

The gender and racial makeup of the venture capital industry is staggeringly homogeneous compared to other sectors of business:

8% Women

2% Hispanic

<1% Black

Venture capitalists are far more likely to partner with people if they share their gender or race. They’re also significantly more likely to collaborate with people if they share their educational background or a previous employer. Belonging to the same racial group increases the propensity to work together by 39.2% and having a degree from the same school increases it by 34.4%. Not only is the likelihood of collaborating on any one deal greater, but VCs tend to keep teaming up with those who share their traits.

PERFORMANCE

OUTCOMES

The difference is dramatic. Along all dimensions measured, the more similar the investment partners, the lower their investments’ performance.

Shared school backgrounds reduced the success rate of acquisitions and IPOs by 11.5%

Shared ethnicity reduced an investment’s comparative success rate by 26.4%

KEY FINDING

Differences in decision quality and performance came later, when the investors helped shape strategy, recruitment, and other efforts critical to a young company’s survival and growth. Thriving in a highly uncertain competitive environment requires creative thinking in those areas, and the diverse collaborators were better equipped to deliver it.

RESULTS AT

VENTURE

CAPITAL FIRMS

The evidence is clear: Diversity

significantly improves financial

performance on measures such as

profitable investments at the individual

portfolio-company level and overall fund

returns. And even though… homophily can

bring social benefits to those who exhibit

it, including a sense of shared culture and

belonging, it can also lead investors and

firms to leave a lot of money on the

table.

DIVERSE TEAMS

FEEL LESS

COMFORTABLE

— AND THAT’S

WHY THEY

PERFORM

BETTER

DAVID ROCK,

HEIDI GRANT,

JACQUI GREY

HARVARD

BUSINESS REVIEW

(9/22/16)

What phenomenon did the authors

investigate?

What variables did the authors explore?

(i.e., What key terms did they define?)

What relationship did they propose

between the variables? (i.e., What

explanations and predictions did they

make about D&I?)

Insights? Inquiries? Irritations?

7 minutes

EXERCISE

DIVERSE TEAMS

FEEL LESS

COMFORTABLE

— AND THAT’S

WHY THEY

PERFORM

BETTER

DAVID ROCK,

HEIDI GRANT,

JACQUI GREY

HARVARD

BUSINESS REVIEW

(9/22/16)

SOME RESEARCH RESULTS -BENEFITS OF DIVERSITY

Analysis of 506 companies found that firms with more racial or gender diversity had more sales revenue, more customers, and greater profits. (2009)

Management teams exhibiting a wider range of educational and work backgrounds produced more-innovative products. (2011)

Analysis of 20,000+ firms in 91 countries found that companies with more female executives were more profitable. (2016)

APPLIED

RESEARCH

Under increasing scrutiny, and mindful

of the benefits of diversity on the

bottom line, many companies are trying to

recruit and retain a more diverse

workforce. Success has so far been

marginal. With so much at stake, why aren’t

these companies making more headway?

One reason could be that, despite the

evidence about their results, homogenous

teams just feel more effective. In

addition, people believe that diverse teams

breed greater conflict than they do.

Bringing these biases to light may enable

ways to combat them.

HOMOGENOUS

VS. DIVERSE

GROUPS

Teams of 3 Fraternity/Sorority members asked to solve a murder mystery.

Study clues individually for 20 minutes

Work with members from own house for 20 minutes

4th member added after 5 minutes for remaining time – some from own house/some from different house

After collectively naming their suspect, members individually rated aspects of the discussion. More diverse groups — those joined by someone from outside their own fraternity or sorority — judged the team interactions to be less effective than did groups joined by insiders. They were also less confident in their final decisions.

IN REALTY…

Their judgments were starkly wrong.

Among groups where all three original

members didn’t already know the correct

answer, adding an outsider versus an

insider doubled their chance of arriving at

the correct solution, from 29% to 60%.

The work felt harder, but the outcomes

were better.

Working on diverse teams produces

better outcomes precisely because it’s

harder.

RESEARCH

IMPLICATIONS

FOR

MANAGING

DIVERSITY

EFFECTIVELY

Highlight differences and take them

seriously

Discuss skills, experiences, work

preferences, values and biases towards

any given project

Write a team plan and clarify goals,

roles, processes and expected norm

Establish Mutually Shared Cognition

Highlight the Value of

Multiculturalism

Be intentional about inclusion efforts

Preferencing meetings with messages in

support of multiculturalism versus no

message or messages of colorblindness,

led to more positive outcomes and

increased employee engagement

ROCK, GRANT

& GREYS

CONCLUSION

Diversity initiatives may not be successful

until we do more to address the way

diversity is perceived. When leaders see it

first and foremost as a social obligation

that makes things difficult and slows

progress, they will likely make decisions

that undermine the organization’s diversity

goals. They may also, at least unconsciously,

try to downplay the substance of existing

diversity on their teams. If, however, leaders

can recognize that the debate and

unfamiliarity that come with diversity is

an important catalyst for creativity and

deep thinking, they will invite it and

celebrate it. And very likely, the

organization — and everyone in it — will

reap the rewards.

TAKEAWAYS

FROM 2

ASSIGNED

ARTICLES

The research is clear - embracing and leveraging diversity improvesorganizational performance

A moralistic/values-based approach is insufficient for leveraging the value of diversity and may increase conflict

Effective managers learn credibleprocesses and skills for managing diverse workforces

Intentionally use the tools and skills you have learned in this class and others for collaborating and establishingmutually shared cognition and team effectiveness plans!

What else….??

GOALS

THIS

WEEK


Basic Concepts of


2. Practice Using

Planning Tools


Formation Next Week

LUSSIER, MANAGEMENT FUNDAMENTALS 8E

SAGE PUBLISHING, 201917

PLANNING

In pairs – with someone new - discuss your workplace:

What is the difference between strategic planning and operational planning?

(hint: p 148)

What is the difference between a business level strategy and a functional

strategy? (hint: pp 164-167)

EXERCISE:

5-min breakout, class discussion

OPERATIONAL-LEVEL PLANNING

In pairs – with someone new - discuss potential plans that

were deployed by Target (left), Chipotle (middle), and

LifeTime Fitness (right):

Functional Strategies

Marketing, Operations, Finance and Human Resource

Standing Plans vs. Single-Use Plans

Contingency Plans and Crises

EXERCISE:


STRATEGY


What functional strategy does your position contribute to/support?

What are the measurable goals of your position?

What Business Strategy led to this functional strategy?

How can knowing this information help you be more effective in your job,

manage your time more effectively, and advance your career?



EXERCISE:


CORPORATE LEVEL STRATEGY

In pairs – with someone new - discuss what strategies

Facebooks used when deciding whether to purchase

Instagram or WhatsApp:

Grand Strategy

Growth, Stability, Turnaround and Retrenchment, Combination

Growth Strategy

Concentration, Integration, Diversification, M&A

Portfolio Analysis

EXERCISE:


BUSINESS LEVEL STRATEGY

In pairs – with someone new - discuss what business level

strategies Amazon potentially used when developing

Amazon Web Services (AWS):

Adaptive

Prospecting, Defending, Analyzing and Imitation Strategy

Competitive

Differentiation, Cost Leadership, Focus

EXERCISE:




SETTING OBJECTIVES


What are the opportunities and risks for the following objective criteria?

Specificity, Measurable, Target Date

Participatively Set

Acceptance & Commitment

EXERCISE:




Implementing and Controlling Strategies


Controlling is the process of monitoring progress and taking corrective action

when needed to ensure that objectives are achieved.

Action Plans: https://www.youtube.com/watch?v=lwoVRVgKg-o

Gannt Charts https://www.youtube.com/watch?v=cGkHjby1xKM

Network Diagram https://www.youtube.com/watch?v=TmXBZk6y1lU

EXERCISE:


https://www.youtube.com/watch?v=lwoVRVgKg-o

https://www.youtube.com/watch?v=cGkHjby1xKM

https://www.youtube.com/watch?v=TmXBZk6y1lU

PLANNING PRACTICE – PART I (TEAMS OF 4)

SEE PLANNING PRACTICE

HANDOUT IN CANVAS

FOLLOW INSTRUCTIONS TO

COMPLETE THE ACTIVITY

BE PREPARED TO SHARE WITH THE

CLASS

PLANNING PRACTICE – PART II (TEAMS OF 8)

JOIN WITH ANOTHER TEAM

COMPARE YOUR WORK PLANS

DISCUSS AND COMBINE

PLANNING PRACTICE – PART III (DEBRIEF)

What was easy / challenging about this activity?

What surprises did you discover when you combined with another team?

In what ways did this activity showcase the value of RIIDN?

How can you use this experience to be more effective in prepared in your team charter next week?

GOALS

THIS

WEEK


Basic Concepts of


2. Practice Using Planning

Tools


Formation Next

Week

TEAM FORMATION PREP

Watch “A Bit About Me” peer videos

Watch “Who I am on a Team” peer videos

Review "SME Bios" that I have in the class Google Drive

WATCH – Take Notes

Edgar Schein on Humble Inquiry:

https://www.youtube.com/watch?v=TI2V5pWI9yg

https://www.youtube.com/watch?v=BOw0IDrKvuw&t=19s

ASSIGNMENT: Diversity Reflection Paper

29

PREPARE FOR NEXT WEEK

https://www.youtube.com/watch?v=TI2V5pWI9yg

https://www.youtube.com/watch?v=BOw0IDrKvuw&t=19s

Documents

Foundations of Management Week 3