THINKING LIKE A GENERAL MANAGER

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• THINKING LIKE A GENERAL MANAGER
• MICHAEL W. PICZAK
• Dipl.T., B.Comm., MBA, Ph.D. (abd)

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WHAT MANAGERS DO...

• PLAN
• ORGANIZE
• LEAD
• MOTIVATE
• CONTROL

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TYPES OF MANAGERS

• FUNCTIONAL
• GENERAL

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FUNCTIONAL

• MARKETING
• ACCOUNTING
• MIS
• OPERATIONS
• FINANCE
• R D

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FUNCTIONAL TITLES

• SUPERVISOR OF MARKETING
• MANAGER OF LOGISTICS
• MIS DIRECTOR
• SCRAP YARD FOREMAN

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GENERAL MANAGER TITLES

• GENERAL MANAGER
• DIVISION MANAGER
• EXECUTIVE VICE-PRESIDENT
• PRESIDENT
• CEO
• CAO

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DIFFERENT SKILLS REQUIRED?

• SPECIALIST vs. GENERALIST
• MANAGE COSTS vs. PROFITS
• SHORTER TERM vs. LONGER TERM
• DIFFERENT PERFORMANCE MEASURES
• NARROWER vs. BROADER SCOPES
• OPERATIONAL vs. STRATEGIC DECISIONS

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THREE GENERIC SKILLS

• TECHNICAL
• INTERPERSONAL
• CONCEPTUAL
• KATZ, 1958

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SKILLS OF MANAGERS
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GOALS OF THE ORGANIZATION

• PROFITABILITY
• SOCIAL RESPONSIBILITY
• CUSTOMER SATISFACTION/DELIGHT
• EFFICIENCY
• EFFECTIVENESS
• RETURN ON ASSETS, EQUITY
• MAXIMIZE SHAREHOLDER WEALTH
• MARKET SHARE

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GOALS CONT.

• PORTFOLIO BALANCE
• OPERATING PERFORMANCE
• ORGANIZATIONAL HEALTH

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3 BROAD CATEGORIES OF OPERATING PERFORMANCE

• PROFITABILITY
• FINANCIAL POSITION
• MARKET PERFORMANCE

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PROFITABILITY

• PROFIT MARGINS (GROSS OPERATING)
• KEY EXPENSE RATIOS
• ROA
• ROE
• ROS
• STOCK PRICE

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FINANCIAL POSITION

• LEVERAGE RATIOS (DEBT TO EQUITY, INTEREST
  COVERAGE)
• LIQUIDITY RATIOS (CURRENT, QUICK)
• ACTIVITY RATIOS (ASSET AND INVENTORY TURNOVER)

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MARKET PERFORMANCE

• ABSOLUTE LEVEL GROWTH RATE OF SALES
• MARKET SHARE (UNITS REVENUE)
• NEW PRODUCTS AS A OF SALES PROFITS (3M)

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WHAT ABOUT ORGANIZATIONAL HEALTH?

• INTERNAL VIEW OF PERFORMANCE
• SOFTER MEASURES
• OFTEN NEGLECTED
• CAN IMPACT FINANCIAL WELL BEING
• ASSUMED WILL TAKE CARE OF ITSELF

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EXAMPLES

• WORKER ATTITUDES
• STATE OF ORGANIZATIONAL CULTURE (MECHANISTIC ,
  BUREAUCRATIC, ORGANIC)
• JOB MOTIVATION
• SATISFACTION
• ACCIDENT RATES

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MORE...

• TURNOVER
• TARDINESS
• ABSENTEEISM
• ALIENATION

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RELATING FINANCIAL AND ORGANIZATIONAL HEALTH
INDICANTS

• 4 CONDITIONS
• O.K.
• UNDERACHIEVING ORGANIZATION
• THE TROUBLED ORGANIZATION
• CRISIS

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RELATING HEALTH TO OPERATING PERFORMANCE
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THE CHALLENGE

• TO TAKE AN ORGANIZATION FROM LESS THAN OPTIMAL
  QUADRANTS AND MOVE THEM TO THE TOP RIGHT
• KEEPING AN ORGANIZATION IN THE TOP RIGHT QUADRANT

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UNDERLYING ALL QUADRANTS

• CONSTANT CHANGE
• CHANGES IN
• EMPLOYEES
• SOCIETY
• GOVERNMENT POLICY
• COMPETITION
• ECONOMIC SHIFTS
• SOCIAL SHIFTS
• TECHNOLOGY EVOLUTION

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MAJOR CHANGES OF LATE

• GOVERNMENT SPENDING CRISES
• BUDGET BALANCING
• NAFTA
• DEREGULATION
• PRIVATIZATION
• SOCIETAL TRENDS SUCH AS LOWER LIQUOR CONSUMPTION,
  LESS CIGAR SMOKING, FEWER CHILDREN

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MORE...

• LESS SMOKING, MORE EXERCISE, MORE BOOMERS,
  ADVANCES IN INFORMATION AND MEDICAL TECHNOLOGY,
  QUEBEC ATTITUDES, PACIFIC RIM EXPANSION, EEC,
  DEMANDS FOR QUALITY, WARS/NO WARS,

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THE CHALLENGE FOR YOU

• BE AWARE OF THE CHANGES AND THE NEED TO RESPOND
  BY CHANGING YOUR STRATEGIC PLANS
• SET NEW DIRECTIONS
• BUILD CAPABILITIES
• IMPLEMENTING CHANGE
• ASSESSING PERFORMANCE

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SETTING NEW DIRECTIONS WITH

• MISSION/VISION STATEMENTS
• GOALS, OBJECTIVES RELATED TO KEY PERFORMANCE
  INDICATORS
• IMPLEMENTATION PLANS (ACCOUNTABILITIES, TIME
  LINES, CONSEQUENCES/REWARDS) TO KEEP ORGANIZATION
  MOVING IN DESIRED DIRECTION

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BUILDING CAPABILITIES WITH

• SELECTION PRACTICES THAT ATTRACT, MOTIVATE AND
  RETAIN SUPERIOR EMPLOYEES
• ORIENTING NEW EMPLOYEES
• CONTINUOUS TRAINING/UPGRADING
• CROSS TRAINING
• BROAD EXPOSURES

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IMPLEMENTING CHANGE WITH

• STRUCTURES
• PROCESSES
• PERSONAL BEHAVIOURS
• GOAL SETTING AND PERFORMANCE MANAGEMENT (LEAD)
• WALKING THE TALK

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ASSESSING PERFORMANCE WITH

• MEASURING KEY RESULT AREAS REFLECTIVE OF NEW
  DIRECTIONS
• WHAT GETS MEASURED GETS DONE
• REWARDING AND PUNISHING AS REQUIRED

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ROLE OF THE GM

• THE STRATEGIST (THE ART OF THE GENERAL)
• MINTZBERG CHALLENGES CONVENTIONAL VIEW OF
  PLANNER, ORGANIZER, STAFFER, LEADER AND CONTROLLER

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MINTZBERGS VIEW

• FOLKLORE vs. FACT PRESENTATION

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MYTH 1 MANAGER IS SYSTEMATIC REFLECTIVE PLANNER

• FACTS
• STUDY AFTER STUDY SHOWS MANAGERS WORKING AT
  UNRELENTING PACE
• ACTIVITIES CHARACTERIZED BY BREVITY, VARIETY,
  DISCONTINUITY
• EXHIBIT STRONG BIAS TOWARD ACTION DISLIKE
  RELECTIVE ACTIVITIES

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MYTH 2

• MANAGERS HAVE NO FORMAL DUTIES TO PERFORM, ARE
  TOLD TO PLAN/ORCHESTRATE/DELEGATE
• LESS DAY-TO-DAY EMPHASIS
• PLAN, STEP BACK, DEAL WITH UNFORESEEABLE

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FACTS FOR MYTH 2

• DO MANY REGULAR DUTIES INCLUDING RITUALS,
  CEREMONIES, NEGOTIATIONS, AND PROCESS SOFT
  INFORMATION

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MYTH 3

• MANAGERS NEED AGGREGATED/MIS GENERATED
  INFORMATION TO MANAGE

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FACTS

• MANAGERS HAVE MULTIPLE SOURCES OF INFORMATION
• MIS OFTEN DELAYED, INAPPROPRIATE FOR SITUATION AT
  HAND, NOT BELIEVABLE
• MANAGERS PREFER DOCUMENTS, PHONE, MEETINGS,
  PERSONAL TOURS

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MYTH 4

• MANAGEMENT QUICKLY BECOMING SCIENCE OR PROFESSION

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FACTS

• BY ALMOST ANY DEFINITION, FALSE
• SCIENCE? LAUGHABLE (SYSTEMATIC, ANALYTICAL,
  PREDICTABLE, PROGRAMMABLE)
• PROFESSION? STANDARDS, ACCEPTED BODY OF
  KNOWLEDGE, GOVERNING BODY...

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MODELS TO HELP WITH ANALYSIS

• PORTER
• BART
• GENERIC
• DIAMOND-E
• BASIC DESIGN
• BEER
• (SEE HANDOUT PROVIDED)

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PORTERS 5 FORCES MODEL
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A GENERIC MODEL
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YOUR MAIN MODEL
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BASIC DESIGN SCHOOL
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INTERNAL ORGANIZATIONAL ANALYSIS
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TV WORTH WATCHING

• MARKETPLACE
• VENTURE
• DOT.COM
• 5th ESTATE
• 60 MINUTES
• PINNACLE
• MOVERS AND SHAKERS

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• BUSINESS UNUSUAL
• DATELINE (SOMETIMES)
• FRANCHISE TV

47
BOOKS WORTH READING

• EXECUTION, BOSSIDY
• STRAIGHT FROM THE GUT, JACK WELCH
• JACK WELCH SPEAKS
• IN SEARCH OF EXCELLENCE, PETERS AND WATERMAN
• ONE MINUTE MANAGER, BLANCHARD
• LEADERSHIP AND THE ONE MINUTE MANAGER, BLANCHARD
  ET AL
• PUTTING THE ONE MINUTE MANAGER TO WORK, BLANCHARD
  ET AL

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• THE RECKONING, DAVID HALBERSTAM
• ANYTHING ON 6 SIGMA INCLUDING MY BOOK (I'LL GIVE
  YOU ONE)
• 7 HABITS OF HIGHLY EFFECTIVE PEOPLE, COVEY ( ANY
  OTHER COVEY BOOKS)
• DILBERT
• COMPETITIVE STRATEGY TECHNIQUES FOR ANALYZING
  INDUSTRIES, PORTER

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• BUILT TO LAST, AUTHOR UNKNOWN
• QUALITY IS FREE, CROSBY
• THE STRATEGY PROCESS, MINTZBERG
• STRATEGY SAFARI, MINTZBERG
• ANYTHING ON DISNEY
• CORPORATE RE-ENGINEERING, HAMMER AND HIS PARTNER
  (THERE ARE A NUMBER OF
• THESE)
• GETTING TO YES, FISHER ET AL

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• ANYTHING ON MICROSOFT AS A CORPORATION IBM
• GET A SUBSCRIPTION TO FORTUNE, NATIONAL POST, ROB
  (GLOBE AND MAIL)