MBA 755 – Reflections on Module 6 Concepts.

MBA 755 – Reflections on Module 6 Concepts.
What is it that appears to make implementation of a renewal strategy so difficult?
I would say the changes that are required to implement and execute the renewal strategies successfully. People will always resist change and to diminish this resistance they need to understand why change is necessary. Using the organizational change strategies help explain the need for change to the workforce and provide communication channels for questions and concerns.

Which of the identified implementation pitfalls have you observed in your own experience with organizations?
Most of the experience deals with organizations solely using the power-coercive change strategies coupled with no reward or incentive system in place. Renewal occurs through strong arming and micromanaging the process. Continually monitoring the renewal through herding the workforce leads to short-term gains. Cultural change evolves to the rewarded behavior of pay for hours worked and not performance. This all leads to poor implementation and execution of corporate goals and strategies. The other part of this is all of the secrecy of what the goals, objectives, and strategies really are? Poor or no communication just leads to the workforce putting their hours in - tolling around completing tasks that may or may not help or contribute to the bottom line.

How did the pitfalls impact the overall outcome of the change implementation?
Most of the change is in new product lines and the core processes really do not have to change. This is not to mean that core processes do not need to change, but it will not occur with the sole use of power-coercive change strategies. After the focus of top management has been given to another priority - the workers all go back to the status quo. There is never any real commitment from the work force for success. They are only there to do as little as possible to get their time in - just being paid for physically being there.

What elements of the implementation process seem particularly relevant to your own experience?
Communication and education of the workforce. Many companies claim "open door" policies, but in practise it does not exist. To have strong and sustainable implementation processes, an organization must have open dialogue and sharing of ideas and concerns. Most companies' management team do not take the time to listen and interact with the workers actually carrying out the implementation. The workforce must not only understand why the renewal change is necessary but exactly how they are going to get there and they must have the ability to be heard and give input.

How does communication fit into implementation planning?
Communication is the major tool needed in the implementation planning process. Without it the plan will fail or not be sustainable. The workforce needs to be fully committed through total buy in of the need to change and communication is the only way to get there.

Which aspects of change theory seem particularly useful during renewal implementation? Why do you think so?
The informational and educational strategies are useful for the successful implementation and execution of renewal strategies. The more a company has to re-invent itself or cultural change to meet the evolving market environment the more important they are needed. Long-term and sustainable change will only occur if people understand why they must change and then educated so they have the tools to actually change. People do not respond to threats - threats only build up resentment, which will hurt a company in the long term.

What could you do differently as a result of your learning in implementing a change in your own organization?
Continually educate my department and keep them as informed as I can. Showing them how and why to communicate will help the overall quality of work performed by the department. I t also builds a strong team, one that is willing and able to help their fellow workers as well as other employees outside of their department. It allows me to align them toward what I think the corporate goals are so the bottom line is positively impacted.

Team's experience with the Mike's Bikes simulation during this courses in your learning journal blog:
What strategy did your team decide to adopt during the renewal stage of the simulation?
Our team, Firm 2, decided to launch the BMX bike and stay in the additional five bike segments - for a total of 6 bike segments. All of the teams appears to stay in all 6 segments. We chose to enhance two bikes, Adventurer and Kids, in order to stay within the customer design preferences and lower the prime cost. This was moderately successful.

How did the strategy work?
It worked moderately successful. Part of the problem was incorrectly pricing the BMX at launch, which may have hurt us throughout the simulation.

What concepts from the course did you see reflected in the game play?
Renewal is more than just launching new products or modifying them. It is about reinventing the company and the company's culture to address changes in the market. Strategic planning on how customers will react to the changes in the market and what your competition will do in reaction to your moves in the market place. Moving too far one way or another will hurt the profitability and market share of your company.

What could your team do differently if you were to play the simulation again?
One would be to price the BMX bike correctly at launch. The other would be to explore the branding aspect of the simulation more aggressively. It appears that branding may have had a dramatic effect in the later rollovers, which allow the significant cut in advertisement and PR budgets - leading to great profitability.

MBA 755 – Reflections on Module 5 Concepts.

MBA 755 – Reflections on Module 5 Concepts.
What trend and pattern information does your organization pay attention to?
My company tends to pay attention to trends in the foundry market as well as growth in metal melting in China and Eastern Europe. Patterns seems to be focused on monitoring of days receivable and potential bankruptcies in the USA. Also tend to watch where our competitors are challenging us and what products or imitation of products they are bringing to market.

Could scenario planning be effectively used in your organization?
Yes, I think using it plan for further consolidation in the supplier side as well as the metal melting side. Mittal continues to purchase blast furnaces in the USA and globally. What would happen if Mittal decides to vertically integrate into refractories, by acquiring refractory companies - like the Japanese steel producers? Or would the Japanese steel producers decide to sell off their refractory companies? Additionally, there are suppliers that will vertically integrate up and start producing refractories and challenge their customer base.

All of these scenario may be feasible and should be explored, so indicators of this occurring can be developed and watched. Global environments tend to change quickly and there are usually no real surprises if you are on the lookout for the correct indicators.

In what ways could you personally use scenario planning?
Scenario planning would be good at creating a future for myself and how the strategically plan out how to exploit my MBA degree in the market place. It would also be good for me to scan the current environment and start recognizing what kinds of opportunities there are out there for me. The "green" trend should have plenty of opportunities to seize.

Scenario planning would also allow me to set lofty, but achievable goals and objectives. Plan out training and further education that would position me for different jobs, etc.

What do you see as the principal disadvantages of employing the scenario approach to strategic planning?
Scenarios are not strategic planning and should not be used as such. They are separate approaches. Scenario planning allows a company to scan the current environment, look at numerous trends and decide what the possible future will be. The important aspect of scenarios is developing and/or using key indicators that validate the scenario. If indicators start painting a clear picture of the future, then strategic planning can used to address the emerging trends quicker than the competition.

Setting strategic plans based solely on scenarios can be dangerous and lead the company down the wrong path. Scenario are based on assumptions and views of current trends. Strategic plans need address current environments and mid-term environments. These strategic plans however do need to be flexible enough to revise them if scenarios start to become realities.