Wednesday, April 2: Agenda

1
Wednesday, April 2 Agenda

• Next week Course content wrap-up - Ch 18
  readings Exam 2 review Team Project
  guidelines/scheduling Case 5
• Chapter 16 The Adhocracy
• Chapter 15 The Professional Configuration

2
TV Asahi Case

• Strengths Weaknesses
• Stability Bureaucratic
• Reputation Conservative
• Experience Inertia
• A main player Complacency
• Weeds in the garden New ideas/Creativity/RD
• Opportunities Threats
• Entertainment Japanese recession
• Global markets Deregulation
• New technologies ? competition rivalry, new
• Domestic entry barriers entrants, substitutes,
  buyer power . . .

3
BCG Matrix

• relative market share
• industry
• growth
• rate

Theatrical
Entertainment
Broadcasting
Newspaper
4
Strategic advice -

• Strategy content for Asahi organization drawing
  on Harvard formulation thinking
• Strategy process for Kenji drawing on
  configuration thinking

5
The Innovative Organization The Adhocracy (R16.1)
What is the purpose of the adhocracy in our
family of configurations? Why do we need a
different configuration for this?
6
Environments and Configurations

• high envl complexity low
• envl
• change
• low

7
How does the adhocracy differ from other
configurations?

• Key part
• Primary coordinating mechanism
• Distinguishing characteristics
• The 6 Fs flat, flexible, fluid, fresh,
  fashionable, fulfilling . . .

8
How does operating adhocracy differ from
administrative adhocracy?

• Operating
• adhocracy
• blending operating
• administrative work
• directly serves clients
• design firms, creators
• of entertainment

• Administrative
• adhocracy
• split between
• operating
• administrative work
• latter is the adhocracy
• serves own operations
• pharmaceutical firms

9
Evaluating the adhocracy . . .

• Advantages

• Disadvantages

10
Questions about the adhocracy. .

• Why must it avoid all the trappings of the
  bureaucratic structure?
• Environment?Leadership?Organization
• (DANGER - intrusions of the machine!)
• What is more challenging - top management of a
  machine, or top management in an adhocracy?

11
Yahoos Mission and Values
Our mission is to be the most essential global
Internet service for consumers and
businesses. Core values Excellence,
innovation, customer fixation, teamwork,
community, and fun. Yahoo doesnt value
bureaucracy, losing, arrogance, being good
enough, the status quo, quick fixes, passing the
buck, missing the boat, following, punching the
clock . . .
12
Strategy-making in an adhocracy

• emergent strategies strategies as patterns
  collective coalescing activity
• thought and action are closely linked
• continuously evolving
• project decisions often strategic decisions
• cycles of convergence and divergence
• use of umbrella strategies
• key role for teams of experts

13
Role of strategists in adhocracies

• maintain an opportunity orientation
• recognize and articulate patterns (that provide
  good strategic fit)
• encourage/guide/package the weeds in the garden
• provide adequate structure and continuity
• like trying to drive a car without controlling
  the steering wheel

14
Managing in the Whitespace (R16.2)

• What is the whitespace?
• When to operate in the whitespace?

15
Suggestions for operators in the whitespace

• establish legitimacy
• bootstrap resources
• build momentum with visible products
• demonstrate results and share benefits

16
Suggestions for senior managers

• dont let the whitespace manage itself
• frame the strategy
• provide support, enthusiasm
• monitor progress cull the field
• migrate developed outcomes to blackspace

17
The Professional Configuration(R15.1)

• Examples
• Key part WHY?
• Primary coordinating mechanism
• WHY?
• Pigeonholing

18
Evaluating the professional configuration . . .

• Advantages

• Disadvantages

19
Strategy-making in professional organizations

• broadly stable, yet minutely dynamic
• professional judgement influences the mission as
  it is elaborated and implemented
• important roles for professional standards and
  professional autonomy, facilitated by the
  marketplace for professionals
• collective choice decision-making processes

20
Decision-making models (p. 377)

• Administrative fiat
• 2. Collective choice
• - common interest (collegial model)
• - self-interest (political model)
• - rationality (analytical model)
• - stuff happens (garbage can model)
• 3. Professional judgement

21
Garbage can model of collective choice

• problems looking for solutions
• solutions looking for problems
• mix of issues
• mix of people
• what sticks together at a point in time
• is chosen

22
Sources of administrator power in professional
organizations?

• boundary spanning roles
• information power
• political power
• resource power
• control outcomes by controlling the process
• an overlay of administrative influence and
  administrative fiat
• (DANGER-intrusions of the machine!)

23
Issues of control in professional organizations

• Outsiders try to control professionals by
  direct supervision . . . or by standardizing the
  work. All these types of controls do is destroy
  the effectiveness of the work.
• Basic types of control
• input control-process control-output control

24
Key issues in professional configurations

• budgets
• staffing
• promotion criteria
• governance procedures
• committee assignments

25
Managing Intellect (R15.2)

• Increasingly important because . . .

26
4 components of organizational intellect

• 1. Cognitive knowledge (know what . . .)
• 2. Advanced skills (know how . . .)
• 3. System understanding trained intuition
• (know why . . .)
• 4. Self-motivated creativity (care why . . . )

27
Characteristics of organizational intellect

• grows exponentially
• interpersonal sharing promotes growth
• value increases with use
• expands under pressure
• some diseconomies of scale
• tied to selecting and managing elite talent

28
Organizing around intellect - new structural
forms?

• infinitely flat organizations
• inverted organizations
• starburst organizations
• spiders web forms
• cellular forms (R16.3)

29
The Professional Service Firm (R15.3)A 3-Level
Pyramidal Structure

Senior Middle Junior
30
Growth and management issues in professional
service firms?

31
Balancing the Professional Service Firm

• market for
• professionals
• firms economic firms orgl
• structure structure
• market for
• professional services

32
(R15.4) Covert Leadership

• What?
• Why?
• How?

33
Using covert leadership

• Control not through supervision, but via
  professional rituals
• . .How much of the music of managing . . gets
  drowned out by the numbers . . .
• Invisible/unobtrusive leadership
• If the players do not accept the conductors
  authority or if the conductor does not accept the
  players expertise, the whole system breaks down.

34

• Building organizational culture
• Culture does not have to be created so much as
  enhanced. . . The leader has to use this culture
  to define the uniqueness of the group and its
  spirit in comparison with other orchestras.
• Managers as conductors
• herding cats myth of complete control not
  obedience and harmony, but nuances and control