For business to be successful, organizations need to realize that business excellence is a tool which helps them translate their plan into action and is a way of executing strategy. The best way to implement ‘business excellence’ practices in any organization is to balance the differential elements or variables of ‘business excellence’ models in such a way that development is strongly aligned to organizational imperatives. The successful implementation of ‘business excellence’ practices requires focused leadership whose concern for improvement (excellence) or financial necessity outweighs their attachment to traditional norms. One of the major issues faced by organizations implementing business excellence or quality management practices is the change in the culture of organizations as ‘business excellence’ implementation process may need to change the current work practices. Implementation Process The three aspects which should form an essential ingredient of the business excellence system are program design, leadership support and effective execution. Apart Continue reading
Strategic Management Tools
Thomas-Kilmann Conflict Mode Instrument (TKI)
Organizational Conflicts are resolved mostly through behavioral measures. Thomas-Kilmann Conflict Mode Instrument is one of the tools used to assess an individual’s behavior in conflict situations. Research has shown that there are five basic styles or modes for handling conflict. The Thomas-Kilmann Conflict Mode Instrument provides a profile of individuals and teams that indicates the gamut of conflict-handling skills which one uses in the kinds of conflict situations one faces. Five basic ways of addressing conflict, namely Avoidance, Collaboration, Compromise, Competition and Accommodation were identified by Thomas and Kilman. This is suited for organizational conflicts. 1. Avoidance Avoid or postpone conflict by ignoring it, changing the subject, etc. Avoidance can be useful as a temporary measure to buy time or as an expedient means of dealing with very minor, non-recurring conflicts. In more severe cases, conflict avoidance can involve severing a relationship or leaving a group. If we avoid discussing Continue reading
Three Value Disciplines by Treacy and Wiersema
Value discipline, a term coined by Michael Treacy and Fred Wiersema in their book, “The Discipline of Market Leaders” to describe different ways companies can differentiate itself from competitors. A value discipline is more than just a benefit statement–it is a statement of strategic focus and provides a context for a company to set its corporate vision and objectives, to target its most profitable customers, and to focus and align its activities. Treacy and Wiersema identified three different ways of bringing together a compelling value proposition with an effective operating model. The basic idea is that any company can deliver value to its customers in three value disciplines. Operational Excellence: Delivering quality products or services at the lowest total cost with the least inconvenience and always on time. Companies pursuing operational excellence are relentless in seeking ways to minimize overhead costs, to eliminate intermediate production steps, to reduce transaction and Continue reading
Stakeholder Analysis – Stakeholder Power and Interest Mapping
We can classify an organization’s stakeholders into Primary and Secondary. The primary stakeholders are those without whose continuing participation a firm cannot exist. They include shareholders & investors, employees, contractors, customers & suppliers. On the other hand, secondary stakeholders are those who influence or affect or are influenced by, the corporation, but they are not engaged in transactions with the corporation or essential for its survival. They include media, action groups, government agencies, trade unions, regulatory authorities. Stakeholder management is the process of managing the expectation of anyone that has an interest in a project or will be effected by its deliverables or outputs. Any company which aims to achieve long term success has to chalk out a strategy for managing its stakeholders. There are two major elements to Stakeholder Management: Stakeholder Analysis and Stakeholder Planning. Stakeholder Analysis is the technique used to identify the key people who have to Continue reading
Moving to Blue Ocean Strategy – Shift from Red Ocean to Blue Ocean
In global market today, it can be supposed that there are two typical kinds of oceans: read oceans and blue oceans. Of two sorts of market, red oceans are defined as a known space for all existent industries nowadays. On the contrary, blue oceans are regarded as an unknown area for industries which do not exist. As a result, red oceans present all existing rules related to business competition and industrial regulations. This market defines and determines the boundaries for all games and rules. In this market, companies strive to compete with their competitors and rivals in order to gain better benefit and dominate more market share of current demand. Therefore, red oceans provide for space for enterprises to focus on their competition for decades. However, the space is limited while competitive battles are becoming increasingly fierce. There are more and more participants wanting to invest in the same products. Continue reading
Economic Environmental Scanning
Firms that anticipate economic change and identify the constituents through which that change will be applied; can better adapt goals and action plans. Shareholder expectations of financial return are dictated in part by alternative investments and their associated return and risks. Interest rates, tax policies, shareholder incomes, availability of funds for margin-purchased equity investments, and expectations of future economic circumstances will shape changes in equity investor profiles and/or the financial performance expectations of the firm’s owners. Personal income, savings, employment, and price-level trends can have dramatic effects on the attractiveness of a firm’s products or services in output markets–not only final markets, but intermediate markets as well. Similarly, total sectoral outputs, movements in private-sector capital replacement and expansion, government spending, and the allocation of the consumer dollar can have dramatic impacts between and within industrial sectors. Each can be set off macroeconomic changes well outside the control of the firm, Continue reading