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Sustainable Competitive Advantage (Porter)
• Conventional Wisdom: Industries with• barriers to entry
• low power among suppliers & customers
• few ready substitutes
• large market share
Sustainable Competitive Advantage: 1972-1997
• Unconventional Reality• Southwest Airlines (21,000%)
• Wal-Mart (19,000%)
• Tyson Foods (18,000%)
• Circuit City (16,000%)
• Plenum Publishing (16,000%)
Characteristics of Industries and Firms
• Industries with• massive competition
• few barriers
• widespread losses
• no unique technology
• many substitutes
• Firms that • were never market
share leaders in any of the 25 years
• explicitly compete through the management of their workforce
Why This Type of Competitive Advantage is Sustainable
• Systems and cultures are not concrete nor readily visible
• System dynamics are complex and hard to replicate across contexts
• Interaction between people and systems is even more complex and impossible to replicate
• People cannot be cloned
Why Teams and Why Now?: Conventional Wisdom
• Changes in competitive landscape….
• faster & more responsive
• smaller & less administrative intensity
• substitution of technology for low skill labor
• technological enhancements for high skill labor
• globalization of labor and product markets
• result in changes in coordination patterns
Changes in Coordination Patterns
• Centralization
• Functionally-based departmentation
• Formalization and Standardization
• Decentralization
• Divisional or Project-based departmentation
• Mutual adjustment
EnvironmentChanges
EnvironmentChanges
CoordinationPatterns Change
CoordinationPatterns Change
Implications for Managerial Skills and Careers
• Key Managerial Skills• knowledge-based technical specialty• teamwork and negotiation skills• recognition and referral skills• reputation and relationship management
• Key Aspects of Managerial Careers• not organizationally controlled; do-it-yourself• project-based, serial and cellular in nature
Why Teams and Why Now?: Unconventional Wisdom
• Evolutionary history: Human history (1/10 of 1%)• Evolutionary psychology: Hunter-Gatherers• Implications for cooperative behavior: Survivor?• Implications for work teams
Pleistocene Age (2 Million Years)
2000
Language of Evolutionary Psychology
• Adaptive Problems (e.g., cooperation)• Functional Analysis and Specialization
• cheat detection• equity calculations (the four letter “f” word)
• Evolutionarily Unanticipated Problems• diet and exercise• physiological responses to stress• large volumes of written material• occupational integration of men and women• cross-cultural teams
If this is so natural, why is it so difficult?
• Individualism v. Collectivism
• Acquisition v. Retention
• Empowerment v. Coordination
• Cohesiveness v. Diversity
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Achieving CompetitiveAdvantage Through Teams
Performance
Adaptability
Retention
Performance
Adaptability
Retention
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Purpose of Management 808
• Expose you to existing theories and data regarding these issues
• Give you a unique, hands-on experience building and leading a work team
• Synthesize existing theories and your own experience to develop your skills in the areas of team building and leadership
• Improve the relative standing of the Broad School on this dimension
Broad School Survey Results:Rankings Against Competitors
• Pre-MBA 808: How satisfied are you with:• value derived from teamwork (4%)• fellow students teamwork skills (5%)
• Post-MBA 808: How satisfied are you with:• value derived from teamwork (84%)• fellow students teamwork skills (86%)
• GMAT Presentation• Wall Street Journal Citation
Management 808 Themes
• People are a source of sustainable competitive advantage
• People can best be understood from an evolutionary psychological perspective
• Our understanding of people is best enhanced via the formulation and testing of explicit theories stated in advance (as opposed to “common sense”)
• Our understanding of people is best communicated via true stories, legends and myths
Course Structure
• Content• team task analysis
• selection & placement
• motivation
• decision making
• managing conflict
• learning & adapting
• dyadic relationships
• leadership
• Process• lectures
• readings
• cases
• exercises
• living case
Overview of Team Leadership
StructuringTasks
StructuringTasks
SelectingMembersSelectingMembers Focusing
EnergyFocusingEnergy
DirectingEnergyDirectingEnergy
CreatingEnergyCreatingEnergy
StrengtheningRelationshipsStrengtheningRelationships
Learning &AdaptingLearning &Adapting
Leadership: Timing and ProcessesLeadership: Timing and Processes
TeamDesign
TeamDesign
TeamDynamics
TeamDynamics
TeamDevelopment
TeamDevelopment
Determination of Course Grade
• Individual Learning of Course Content• Lectures
• Readings
• Team Performance on Simulation
• Development Plan Based on 360-feedback
Course and TeamLab Web Pagehttp://courses.bus.msu.edu/MBA/808/001
http://web1.bus.msu.edu/mgt/lab/
MSU’s Team Effectiveness Research Laboratory
• History
• Goals
• Your Role• the task
• the workforce
• the rules of engagement
• your evaluation