Tuesday, March 5, 2013

What is Innovation in Business?

Innovation is a popular term these days when discussing business. A recent business magazine headline stated that today's businesses must "innovate or perish".

Innovation in business refers to the introduction of a new product or service - or "a new way of doing something". Innovation for business also includes improving an existing product or service to be faster, cheaper, or easier to use. Valuable innovations can improve an existing product that makes it more desirable to customers (and potential customers).

Business innovation can be the addition of a new feature or the removal of a feature. For example, a software program may be improved to add a new "automatic report generating feature" that simplifies the process of creating and printing custom reports for each customer. This new feature can distinguish the software program from competitors' programs that require manual report generation, which is slower and requires additional training. Most customers will prefer the product with the faster, automated report generating feature.

What is Innovation in Business?

Business innovation also includes the removal of a feature from a product or service. For example, a company may improve its existing product by simplifying the way in which the user interacts with the product. An existing product may have too many buttons or controls that make it difficult to use or intimidating to potential customers. An improvement includes the removal of several buttons or controls to simplify the operation and make the product "user friendly". There are many examples of innovations that have removed features (or consolidated features) to enhance the user experience with a product. Most customers will prefer the product that is simpler to use.

Another example of a business innovation applies features in one product to a different product. This is particularly useful when a company has a successful product as well as other products that are less successful. Determine the reasons for the success of the first product and do some creative thinking to find ways to apply similar features or benefits to the other products. You can determine the reasons for the product success by asking customers, reading reviews of the product, and talking with the sales representatives that sell the product. Finding the key features that make a product successful is valuable information for current products as well as future product development.

Look for possible business innovations in your own company by evaluating existing products and developing improvements that set your products apart in the marketplace. This can be as simple as adding a new feature or enhancing the user's experience.

What is Innovation in Business?
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From Steve Sponseller - Innovation Strategist

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Tuesday, February 26, 2013

Why Innovation is Important in Marketing

Marketing is a way companies use to sell a product, idea or service to their consumers. Being innovative in marketing can help you set a new high bar for your competition. Sometimes your competition will fail to reach these new standards. Finding new ways to get the job done or tweaking existing ways, can increase companies revenue and make your marketing team more efficient. Apple's new marketing strategy focusing more on their current consumer base worked really well. Apple increased their R&D and came with new products that would make their consumer base happy. With products such as I phone and I touch not only was the base happy, but their base grew dramatically with new consumers thus increasing the market share of Apple, Inc. in the industry.

Companies like Google, Inc. have one the most innovative marketing team in the world. Google has the most powerful search engine in the world and their marketing team saw niche on online advertisement and took advantage of the situation. Today of over 98% of Google's revenue is generated from online advertisement. Google is ranked the most innovative company in the world. The reason is that Google employees have one of most relaxed work environment and they get free time to work on project that they feel will improve their company. You can't be the leader of innovation with only your marketing team doing the innovating. That's why Google and GE make it a top priority to put innovation in their employee's blood.

In today's global economy where competition is coming from all over the world and where companies are struggling to survive due to the global recession, marketing teams all over the world are scratching their heads to come up with new or different innovative ways to reach their consumers and try to get a small piece of the everyday shrinking pie. American companies have the reputation of being the most innovative companies in the world. But with a dramatic increase of good quality education throughout the world there is a risk that America will lose its title of being the most innovative country in the world. But we are not ready to give up just yet. The new idea that Professor Felix and his team are working on is a huge step in the right direction. By creating a social website and hopefully a new class at GRCC and other colleges throughout United States on how managers, marketers and other businessman can be more innovative will keep this nation at the top of the most innovative countries in the world.

Why Innovation is Important in Marketing
Why Innovation is Important in Marketing
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Tuesday, February 19, 2013

Max Weber's Typology of Forms of Authority - Traditional, Rational-Legal, and Charismatic

In pre-modern and modern societies, there has been a hierarchy of command of which everyone must adhere to. In order for this system to operate, there must be someone in charge or otherwise known as authority. According to Weber, authority is power accepted as legitimate by those subjected to it. Weber outlines three forms of authority in modern societies: traditional, charismatic, and rational-legal. These forms of authority are ideal pure types that are rarely "pure" in real life.

Rational-legal authority is belief in the legality of patterns of standard rules and the right of those elevated to authority under such rules to issue commands. Authority is held by legally established impersonal orders and extends to people only by virtue of offices they hold. The power of government officials is determined by the offices to which they are appointed or elected because of their individual qualifications. As long as individuals hold these offices, they have a certain amount of power, but once they leave office, their rational-legal authority is lost

There are various ways that rational-legal authority could develop. Systems of laws and regulation develop in many societies and there are many different principles of legality that could occur. With the development of a rational-legal system, there is likely to be a political system which becomes rationalized in a similar way. Associated with political systems are constitutions, written documents, and established offices, regularized modes of representation, regular elections and political procedures. These are developed in opposition to earlier systems such as monarchies or other traditional forms, where there are no well developed set of rules.

Max Weber's Typology of Forms of Authority - Traditional, Rational-Legal, and Charismatic

As political systems develop in a rational manner, authority takes on a legal form. Those who govern either have or appear to have a legitimate legal right to do so. Those who are subordinate within this system accept the legality of the rulers, believing in the right of those who have legitimate rights to exercise power. Those with the power then exercise power based on this right of legitimacy.

Rational-legal authority may be challenged by those who are subordinate but this challenge is unlikely to result in changes in the nature of the system very quickly. According to Weber, such power struggles could be based on ethnicity, nationalism, not classism, and are mostly political struggles.

Weber's examination of legitimate authority led him to define an ideal-type bureaucracy. An ideal-type is a rationally and systematically constructed pure type of action, which can rarely taken place in reality and used as a measuring tool to determine the similarity between actual social institutions and defined ones. The ideal-type bureaucracy Weber developed incorporated hierarchy, impersonality, written rules of conduct, promotion based on achievement, specialized division of labor, and efficiency. Information flows up the chain of command and directives flow down, according to Weber's model. Impersonal rules explicitly define duties, responsibilities, operating procedures, and rules of conduct.

Individual offices are highly specialized, and appointments are made one the basis of qualifications rather than ascribed status. Working together, these characteristics are designed to promote the collective goals of the organization. This ideal-type bureaucracy was intended to promote economic growth and prosperity. Many of its concepts are echoed in today's capitalist and political systems.

Traditional authority is authority in which the legitimacy of the authority figure is based around custom. Legitimacy and power to control is handed down from the past and this power can be exercised in quite dictatorial ways. This is the type of authority in which the traditional rights of a powerful and dominant individual or group are accepted, or at least not challenged, by subordinate individuals. These could be religious, sacred, or spiritual forms, a well established and slowly changing culture, or tribal, family, or clan type structures.

The dominant individual could be a priest, clan leader, family head, or some other patriarchal figure, or dominant elite might govern. In many cases, traditional authority is supported by myths or connection to the sacred, social artifacts such as a cross or flag, and by structures and institutions which perpetuate this authority. Historically, traditional authority has been the most common form among governments. An example of this is the kings and queens in the English monarchy system, which must belong to certain families in order to obtain their positions.

Traditional authority often dominated pre-modern societies. It is based on the belief in the sanctity of tradition, of "the eternal yesterday." Because of the shift in human motivation, it is often difficult for modern individuals to conceive of the hold that tradition had in pre-modern societies.

According to Weber, traditional authority is a means by which inequality is created and preserved. If no one challenges the authority of the traditional leader or group, the leader is likely to remain dominant. Also, for him, traditional authority blocks the development of rational-legal forms of authority, a viewpoint he was particularly partial to.

Charismatic authority exists when the control of others is based on an individual's personal characteristics, such as extraordinary ethical, heroic, or religious virtuosity. Charismatic leaders are obeyed because people feel a strong emotional bond to them. Hitler, Gandhi, Napoleon, and Julius Caesar were all charismatic leaders. Whether such powers actually exist is irrelevant; the fact that followers believe that such powers exist is what is important.

Weber considers charisma to be a driving and creative force which surges through traditional authority and established rules. The sole basis of charismatic authority is the recognition or acceptance of the claims of the leader by the followers. Charismatic authority can be revolutionary in nature, challenging traditional authority and sometimes rational-legal. This type of authority could easily degenerate into traditional authority in which the power is exercised by those who surround the charismatic leader.

Charismatic authority is the antithesis of routine activities and represents the desire for disruption and change of the prevailing social order. It is a necessary part of the dialectic between the human need for structure and the equally human need for variation and innovation in society. Charismatic authority is different from rational or traditional authority in that it develops not from established orders or traditions, but rather from the special trust the charismatic leader induces in his followers, the peculiar powers he exhibits, and the unique qualities he possesses. According to Weber, it is difficult for charismatic leaders to maintain their authority because followers must continue to legitimize this authority. There is a need for the charismatic leader to constantly exhibit leadership performance to his followers to reinforce the legitimacy of his authority.

The basis of Weber's distinction between power and authority is that power is the ability to impose one's will on another, regardless of the other's wishes, and despite any resistance he may offer. Power is therefore relational; it requires one person to dominate, and the other to submit. This assumes that one person will acquiesce, co-operate with or consent to the domination of the other, and this cannot be true of all relationships. The act of issuing a command does not presuppose obedience. Weber argues that an individual can exercise power in three ways: through direct physical power, by reward and punishment and by the influence of opinion. The exercise of power is more likely to be indirect and coercive: a combination of rewarding and punishing through the use of argument, debate and rhetoric.

Authority, by comparison, is a quality that enhances power, rather than being itself a form of power. The word "authority" comes from the verb "to authorize"; therefore an individual's power must be authorized by the group in order for it to be legitimate. An individual is considered an authority because of his technical expertise, combined with his ability to communicate effectively with the group. The individual in authority is the one who is primary in the group, controlling certain aspects of what the other group members do and say, and perhaps even what and how they think.

Max Weber's Typology of Forms of Authority - Traditional, Rational-Legal, and Charismatic
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Wednesday, February 6, 2013

Innovation: Thinking Outside The Box

When innovators talk about thinking outside the box, they mean coming up with creative ways to solve problems - new ways to look at things. How do they do it? How can you do it too? We first have to ask what the "box" is. Then we can look at how to get outside of it.

The "box" is the normal way of doing things and looking at things. It is the assumptions that almost everyone involved is making. The best way to start thinking out of the box then, is to identify and challenge all the assumptions that make up thinking inside the box.

One of the major liquor brands was faltering years ago, and they couldn't seem to boost their sales. Promotions, lowering the price, getting better shelf placement - these were the "in the box" solutions. Then someone challenged the assumptions, by asking "What if we stopped the promotions and just raised the price?"

Innovation: Thinking Outside The Box

The price was raised as an experiment, and sales soon doubled. As it turns out, some types of liquor are bought quite often as gifts. Buyers don't want to buy the most expensive one, but they also don't want to seem cheap, so they won't buy products that don't cost enough. Now imagine what happens to your profit margins when you raise the price and double the sales. That's the power of thinking outside of the box.

Ways To Get Outside The Box

Challenging assumptions is a powerful creative problem solving technique. The difficult part is to identify the assumptions. If you are designing a new motorcycle, write down assumptions like "speed matters," "it has to run on gas" and "it needs two wheels," not because you expect to prove these wrong, but because challenging these can lead to creative possibilities. Maybe the time has come for an electric three-wheeled motorcycle.

Another way to get to creative solutions is to "assume the absurd." This is either fun or annoying, depending on how open-minded you can be. All you do is start making absurd assumptions, then finding ways to make sense of them. The easiest way to do it is by asking "what if."

What if a carpet cleaning business was better off with half as many customers? It seems absurd, but work with it. Hmm...less stressful, perhaps. More profitable if each customer was worth three times as much. Is that possible? Commercial jobs that involve large easy-to-clean spaces (theaters, offices, convention halls) make more money in a day than houses, with fewer headaches. Focusing on getting those accounts could be the most profitable way to go - not so absurd.

Another way to more innovative ideas is to literally do your thinking out of the box. Get out of the house or the office. Look around at how others are doing things. On busses in Ecuador, salesmen put a product into everyones hands and let them hold it while they do a sales pitch. Then you have to give back "your" product or pay for it. It is very effective. How could you use the principle in your business?

Innovation: Thinking Outside The Box
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Steve Gillman has been studying brainpower and related topics for years. For more creative problem solving techniques, and to subscribe to the Brain Power Newsletter, visit: http://www.IncreaseBrainPower.com

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Monday, February 4, 2013

Organizational Structure, Creativity, Innovation

Organizational structure can inhibit or foster creativity and innovation. The problem with organizational structure though, is that it is resultant of many factors, including history, organic growth, strategy, operational design, product diversity, logistics, marketing, client base, supplier base and so forth. Therefore, what managers need, are not recipes for complete structural change, but insights into the properties of fostering structures that can be adapted into the existing structure.

To start, it is useful to analyse the preferred structures against the not so preferred. There are many definitions of types of organizational structure, but one example is:

a) Mechanistic structures (generally not preferred) - includes centralised control and authority, clearly defined tasks, vertical communication links, obedience to supervisors, rigidity and inflexibility.

Organizational Structure, Creativity, Innovation

b) Organic structures (generally preferred) - decentralisation of authority, tasks loosely defined, horizontal communications, greater individual authority, flexible, adaptable.

Experience shows that the above can be misleading. For example, flat organisations are generally preferred and hierarchical ones not preferred, however, even flat organisations are in reality hierarchical.

Importantly, if we have a mechanistic structure, what factors allow us to move in the right direction without wholesale change?

Some answers include:

a) Direct communication links to decision makers.

b) Communication and information flow between departments.

c) Tangible progression of ideas from problem to solution, product development to commercialisation.

d) Creative teams working outside but linked into the organization, whose culture, processes etc diffuse into the existing structure.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com

Kal Bishop, MBA

**********************************

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Please rate this article below.

Organizational Structure, Creativity, Innovation
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Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

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Wednesday, January 30, 2013

Promotion "Above the Line" and "Below the Line"

Promotion can be loosely classified as "above the line" and "below the line" promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion.

The terms 'below-the-line' promotion or communications, refers to forms of non-media communication, even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.

Some of the ways by which companies do BTL (below the line) promotions are by exhibitions, sponsorship activities, public relations and sales promotions like giving freebies with goods, trade discounts given to dealers and customers, reduced price offers on products, giving coupons which can be redeemed later etc.

Promotion "Above the Line" and "Below the Line"

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising.

A definition of below-the-line sales promotion given by Hugh Davidson:

'An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration'.

Methods of below the line sales promotion

1. Price promotions

Price promotions are also commonly known as" price discounting". These can be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the following examples of the use of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer

- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate - this is the proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down.

3. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased. It works best for

- Subscription-based products (e.g. magazines)
- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer.
Customers often view these schemes with some suspicion - particularly if the method of obtaining a refund looks unusual or onerous.

6. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

7. Point-of-sale displays

Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets.

SOME INTERSTING EXAMPLES OF BTL PROMOTION

Most of the big brands are following the suit of BTL promotion because of rising prices of media based promotion, advertising clutter and increased impulse purchasing.

Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding informative workshops and free tests for students which give a direct interaction of these institutes with the target customer and hence a suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events through out the country in which companies can put up their stalls, display banners and posters and arrange for some fun activities. These events give the companies a platform at very low price to promote their brand and increase visibility among target consumer. These companies also give discount coupons to winners in the games, which in turn boost the sales of the products and ensure that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advise from a doctor would hold more value as compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions.

Promotion "Above the Line" and "Below the Line"
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Mr. Amarendra B. Dhiraj is a frequent speaker at internationally renowned global events, CEO/CTO/CIO Roundtables, Technology Conferences and Symposiums. He hosted and organized the Executive Technology Leadership Forum. He specializes in strategy, innovation, and leadership for change. His strategic and practical insights have guided leaders of large and small organizations worldwide.

Amarendra Bhushan has been named to lists of the European Management Guru and is named as “Europe's youngest management Guru” and one of the “Top most influential business thinkers in the world”. http://www.theerce.com, http://www.indogreek.org The Economic Times, CNBC, moneycontrol

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Saturday, January 26, 2013

A New Strategy on Diversity: Aligning Leadership and Organizational Culture

The Diversity Initiative

Speaking at a National Naval Officers Association Conference, Chief of Naval Operations Admiral Mike Mullen stated "diversity continues to be a leadership issue and critical to the Navy's future success." Everyone is familiar with the traditional challenges of diversity. However, concepts of diversity have evolved from inclusion and tolerance, to managing diversity, and recognizing the link between diversity and the emerging complexity of organizations such as the Navy. "A complex environment is one characterized by multiple critical elements that differ significantly." Complexities such as joint collaborations, emerging technology, and globalization contribute to the challenges of organizational diversity within the Navy. Culture is not created by declaration; it derives from expectations focused on winning. We can only have a culture that encourages performance if we recruit the right people, require them to behave in a way that is consistent with the values the Navy espouses, and implement processes that will allow the Navy to be successful.

Differences of any kind make the task more complex. Differences such as proficiency in the use of technology or differences among warfare communities (i.e. Supply Corps, Aviators, Surface, etc.) will contribute to organizational complexity. If the Navy wishes to remain competitive in this complex environment, we must adopt "complex managerial strategies" drawn from multiple strategies.

A New Strategy on Diversity: Aligning Leadership and Organizational Culture

If we accept that the leader's job is to inspire and support the collective responsibility to create a better future for the Navy, then what are the tools to effectiveness? What characteristics must naval leaders have for this mission? There are key principles we must consider while striving to improve leader-follower relationships. First, organizational design affects culture which in turn impacts strategy formation. Second, leaders must have an understanding of their organization's culture in order to identify the obstacles to effective leadership. Finally, by aligning the Navy's organizational design and diversity strategy with culture leaders can modify their behavioral styles for desired outcomes by utilizing tools that engage sailors. In summary, I will identify obstacles to diversity and measures of effectiveness that commanders can implement to manage diversity.

IMPACT OF ORGANIZATIONAL DESIGN ON DIVERSITY

The task of managing diversity in today's rapidly changing environment is becoming progressively more difficult. Of course increasingly dissimilar kinds of people are entering the Navy and demanding different treatment. But some underlying forces are also present and pushing toward needed unity. Some of the reasons that spurn the need for diversity management include: "misunderstanding or distortion of affirmative action requirements," the expectation that "only one group needs to change," or an "appearance of 'political correctness' that can put off those with differing views."

Though the increased existence of cultural differences within the Navy is a fact, there is also a culture that is already present. The Navy is a subculture of identifiable traditions and a strong national culture. This cultural foundation forms a viable base for mutual action, trust and support. It can help commanders build unity among their sailors. "The reporting relationships, business practices, policies, and even the physical structure of any workplace are based on the cumulative experiences of that organization." The culture we know today is a result of the people who have made up the Navy over time, the larger culture they have created, and the total context in which we operate.

Leadership for diversity is an integrative activity that proposes one value system, one culture, around which many people can gather to accomplish useful results. "[Diversity management] requires the ability to think and act in certain ways, and that is what ensures that it is doable." The Navy must accept the good values and reject those values and behaviors that are undesirable. Many cultures include values, ideals or behavior that work against effective, coordinated performance. While most would agree in that understanding the role of culture and other variables is important in a range of arenas.

However, in practice people often report that they experience "great discomfort when confronted with the need to discuss these issues and even greater discomfort when the discussion leads to an examination of the social inequities that are associated with membership in certain groups." For example, American society typically does not accept cultural values that regard punctuality as unimportant or that condone nepotism; nor does it condone bribery, child labor or a host of other determined values or behaviors. These examples of unacceptable values are inimical to efficient interpersonal relationships.

As more people are entering the Navy with different cultural backgrounds, the pressure is on the corporate culture of the Navy to change. "In an effort to recruit and keep top-tier employees of all races and both genders, Fortune 500 companies have begun to address diversity issues in the workplace." Established business expectations, rites and rituals will have to be altered for the new but different sailor; and some of the present cultural systems may need to be discarded. Navy leaders have a special responsibility with regards to diversity. "Not only must you develop yourself to handle the many diverse situations that occur in the workplace, you also are called upon to be a diversity leader-- to help create a climate that values diversity, fairness, and inclusion." As the Navy continues its transformation into the 21 century, leaders must consider how diversity will affect our strategic planning and policies.

IMPACT OF DIVERSITY ON STRATEGY FORMATION

The most important attribute of any planning team is its diversity. This diversity, however, is not about being politically correct or sensitive to a broad representation of sailors. The impact of diversity on strategy formation is not just to avoid age or gender discrimination lawsuits. Successful strategic planning depends on the team's ability to ask new questions, perceive new insights, and imagine new solutions. It's difficult for a group of individuals who share similar backgrounds, thinking styles, and experiences to think new thoughts. "Strategy innovation is a creative process, with a goal to identify markets, products, and business models that may not yet exist."

"A lack of genuine diversity may be the biggest obstacle to improved performance within the [Navy]." If wardrooms are full of too many similar people, from similar backgrounds, who have ascended through similar routes then our diversity strategy is bound for failure. "The best ways for any organization to affirm that it has sufficient diversity is to ensure that the top management team is comprised of individuals with varied sets of skills."

ALIGNING STRATEGY & DESIGN WITH CULTURE

The Navy must create a new value system that supersedes values that are now inappropriate due to increased diversity. Of course all Americans should be open to new values and alternative ways to behave. But we need to match these alternative prospects with what we have now and only change when we are sure the change will add to the organizational design - new visions and values should not take us away from clear societal goals. Naval leaders must be in the vanguard of this change. They shape new cultures and redefine what's acceptable within the Navy and for their sailors.
The goal of the Navy's new Diversity initiative is about drawing the best talent from all aspect of American culture.

The Navy's diversity initiative provides a strategic framework that is broken down into four areas; recruiting - who the Navy brings in; training and development - how the Navy instills values; organizational alignment - how the Navy continues the momentum of cultural change; and communications - how the Navy informs the fleet of where we're headed. Admiral Mike Mullen's address during the Total Force Diversity Day made it clear that the importance of diversity at every level in the Navy is a "strategic imperative" and reminded the attendees that the Navy is engaged around the globe. His efforts remind us that the Navy's diversity strategy rests on the shoulders of our leaders and will only be as strong as their capacity to strive for successful results.

LEADERSHIP BEHAVIORS FOR DESIRED OUTCOMES

Two Scholars on leadership, James Kouzes and Barry Posner, conducted research on follower expectations by surveying thousands of business and government executives. They asked open-ended questions such as "What values do you look for and admire in your leader?" Four characteristics have consistently stood out among the rest: honesty, vision, competence, and inspiration. Leaders need to develop skills in accepting and using different people and methods to add to the Navy's capacity to survive in a growing and increasingly complex world. We need to suppress feelings of fear and antagonism and increase the capacity to accept differences. Most importantly, we need to be proactive in seeking leadership training in situations of cultural diversity.

Honesty

"It's clear that if people anywhere are to willingly follow someone - whether it be into battle or into the boardroom, the front office or the front lines - they first want to assure themselves that the person is worthy of their trust." Creating and maintaining a culture conducive of trust is becoming more difficult today. The character of the Navy is changing: becoming more diverse and less harmonious. The people coming into our organizations enter with different values and customs. These cultural differences in the people making up the Navy pose major problems in developing a culture of trust. Diversity itself makes the task of developing leadership more difficult.

Every sailor must put off falsehood and speak truthfully, "for we are all members of one body." Honesty is achieved through Discretion and truthfulness. Discretion keeps our minds and focus on sound judgment, giving serious attention and thought to what is going on. It will carefully choose our words, attitudes, and actions to be right for any given situation, thus avoiding words and actions that could result in adverse consequences. Truthfulness means being straight with others and doing what is right. "It's after we have contemplated our own actions, measuring how they align with our values, intentions, and words, that we are most likely to make a contribution of integrity to the world."

Forward-Looking

From an organizational perspective, "leaders need to continually put the vision and mission (related to the purpose) in front of followers." Sailors must understand the organization's vision and know their role in support of the mission. Sailors expect leaders to have a "sense of direction and concern" for the future of the Navy. The leader's role is to build a team out of different individuals. We distinguish leaders by the fact that they provide the vision around which group consensus can be sought. Leaders can lead only united, compatible colleagues who, in essence, volunteer to accept the leader's values and methods. This is contrary to the prevalent view that a consensus-seeking process can ascertain vision. Common visions result from articulation by one person of ideals that the larger group can come to accept. The growing diversity in the Navy challenges the leader's ability to lead "unless he or she can induce increasingly diverse people to accept common values, one vision and similar perspectives."

Competence

Leadership is more than commanding authority and giving orders, it is people who understand and practice the art of listening and who make building trust a priority. In order to assure a productive work environment where sailors take responsibility, Navy leaders must posses and effectively demonstrate competence. Competent leaders have the ability to bring out the best in others. To enlist in another's cause, sailors must believe that the person is competent and able to guide us in the right direction. "We must see the leader as capable and effective."

Inspiration

Inspiration is the psychological feature that arouses someone to take action toward a desired goal. "Inspiring Leadership speaks to our need to have meaning and purpose in our lives." Stimulation of the mind (spiritually and emotionally) to a high level of feeling or activity can only be accomplished through inspiration. Commanders can inspire sailors by relying not on their own understanding but rather on something greater than themselves. As the Apostle Paul declared "... we speak, not in the words which man's wisdom teacheth, but which the Holy Ghost teacheth; comparing spiritual things with spiritual."

Commanders inspire commitment by looking inward first, becoming aware of how they feel, and communicating a personal vision of the future based on personal knowledge of the past and realistic experience in the present. Focusing on the themes of your own consciousness should be what really drives leaders. "Leaders who develop their message only on the basis of what others might want invariably play to others and only try to please them." Reactions to leaders will be different depending on the focus of the communication. If leaders only perform to others' standards, sailors may be entertained, but if leaders communicate with authentic passion, sailors will respond with excitement and grasp a new and real possibility from an authentic experience.

Dynamics of Diversity

The success of the Navy's increased efforts in diversity will require a firm understanding of the dynamics of diversity. Many diversity strategies are successful because they take into account the 'Dynamics' that contribute to the need for diversity management programs. The merging of job ratings, problems with co-workers, and technology can contribute to dynamics.

Technology, for example, allows the Navy to operate globally with coalition forces, but the sailors must become adept in dealing with cultural differences without non-verbal cues provided by face-to-face communications received by liaison officers. The relevance of diversity management initiatives also affects these dynamics. Different corporate or social cultures must co-exist - such as one group with the same functional expertise of a merged job rating seeks dominance of those who are skilled in other fields, resulting in talent mass exodus. The dynamics of diversity has made it increasingly important for the Navy not only to "minimize cultural errors but also to understand and work with people of various backgrounds."

Champions of Diversity

Because of the nature of hierarchy and use of power and authority within the Navy, the process of managing diversity must begin at the top. Seeing a direct relationship between diversity and mission readiness, former Chief of Naval Operations Admiral Vern Clark expanded the traditional Navy's focus of diversity beyond race and gender, and folded in a "Sailor's creativity, culture, ethnicity, religion, skills and talents." As managing diversity moves to the forefront of the Navy's organizational development, processes must be developed that allow the commitments to become institutionalized within the organizational structure. Efforts devoted to education and awareness must be closely followed by processes that create systematic change. One recommended model is "champion of diversity model". Under this model, the Navy would identify the elements of the culture and climate that leads to the development of an educated, committed, and systematically supported group of Navy leaders of the diversity change process. Whether it is education, training, or simple awareness Navy leaders have to 'champion' diversity.

MEASURE WHAT MATTERS

Diversity Management is about how we make decisions in situations where there are critical differences, similarities, and tensions. Roosevelt Thomas, author of Building on the Promise of Diversity, identified three critical questions that will help any organization in the journey towards diversity. First, what is a quality decision? A "quality decision", according to Thomas, is one that helps to accomplish three important goals: mission, vision, and strategy. Second, what constitutes significant differences, similarities, and tensions? Another way of asking this question is how do leaders know what mixture if diverse? Are we concerned about race, gender, ethnicity, geographic origin, religion? How do leaders know what level of diversity is right for their organization? We can't tell just by looking at people. We must first specify which dimensions we consider significant. And for every significant dimension, the first core question should be how different or similar are the members of the mixture? Leaders must know what mixture they currently have and identify which dimensions are important. The third question Thomas suggested is: Where could we use "strategic diversity management?" Once leaders have identified the potential gaps, they can then begin to recruit to fill them.

The Chief of Naval Personnel stood up the "Fleet Diversity Council" which meets semi-annually to discuss the diversity strategy for our sailors and civilian employees. It provides a forum for unfiltered dialogue about diversity related initiatives and issues and whether or not they are working. The council provides feedback to the Chief of Naval Operations as well as communications to the fleet. Throughout this I've made it clear that diversity is a leadership issue. This is largely due to both the wide variety of diversity that there is in the Navy, and the impact that diversity can have on so many aspects of organizational and individual behavior. However, this does not remove the responsibility from individual sailors nor the requirement for life long learning.

We've Still Got a Lot to Learn

My experience of diversity training has often been that people attend such training with the view that there is little that they can learn about diversity. So there is a challenge to us all to assess what we still have to learn about diversity and to meet that challenge with openness and a willingness to learn. "People will only effectively learn about diversity if they are prepared to take risks in their learning." It is not a comfortable feeling to learn that we have prejudices we need to deal with. It is not easy to find that our own view of the world is just one of many, and those other views are equally valid. We all have a great deal to learn about diversity. Not just a better understanding of the reality of diversity in the Navy, but also the issues that this raises. If our Navy is to be a reflection of our society, then naval leaders must strive to understand the reality of diversity in our society as well.

_______________________________________________

1. Chief of Naval Operations (August 12, 2005)on "Diversity is a Leadership Issue." 33rd annual National Naval Officers Association (NNOA) Conference in New Orleans LA. Chief of Naval Operations Public Affairs http://www.news.navy.mil/local/cno/

2. Thomas, R. R. (1996). Redefining Diversity. New York, NY: AMACOM Books. p. 192.

3. Hamm, J. (May 1, 2006). The Five Messages Leaders Must Manage. Boston, MA: Harvard Business Review Article. p. 3.

4. Thomas, (1996) "Redefining Diversity": p. 192.

5. Karsten, M. F. (2006). Management, Gender, and Race in the 21st Century. Lanham, MA: University Press of America, Inc. p. 96-103.

6. Cross, E. Y. and White, M. B. (1996). The Diversity Factor. Boston, MA: McGraw-Hill. p. 25.

7. Thomas, R. R. Jr. (2005). Building on the Promise of Diversity: How We Can Move to the Next Level in Our Workplaces, Our Communities, and Our Society. Saranac Lake, NY, USA: AMACOM. P. 103. Retrieved July 9, 2006, from http://site.ebrary.com/lib/regent/Doc?id=10120209&ppg=121.

8. Robinson, John D.(Editor). (2003). Diversity in Human Interactions : The Tapestry of America. Cary, NC, USA: Oxford University Press, Incorporated. P. 8.

9. Pollar, Odette. (1994). Dynamics of Diversity: Strategic Programs for Your Organization. Boston, MA: Course Technology Crisp. P. 9.

10. Lieberman, Simma. (2003). Putting Diversity to Work: How to Successful Lead a Diverse Workforce. Menlo Park, CA, USA: Course Technology Crisp. P. 38.

11. Johnston, Robert E. (2003). Power of Strategy Innovation: A New Way of Linking Creativity and Strategic Planning to Discover Great Business Opportunities. Saranac Lake, NY: AMACOM. p. 86.

12. Stern, Stefan (2006). A Vigorous 'Human Audit' is Good for the Top Table. Financial Times, June 26, 2006. p. 79.

13. Weinzimmer, Laurence G. (2001). Fast Growth: How to Attain It, How to Sustain It. Chicago, IL, USA: Dearborn Trade, A Kaplan Professional Company. p. 134.

14. Chief of Naval Operations (CNO) Adm. Mike Mullen addressed a packed audience at the Naval Air Systems Command Total Force Diversity Day June 29, 2006 at Patuxent River, MD. CNO Calls "Diversity a Strategic Imperative." from Chief of Naval Operations Public Affairs http://www.news.navy.mil/local/cno/

15. Kouzes, J. M. and Posner, B. Z. (2002). The Leadership Challenge. San Francisco, CA: Jossey-Bass. p. 24.

16. Kouzes, "The Leadership Challenge": p. 27.

17. Holy Bible (1985). King James Version Study Bible. Grand Rapids MI: Zondervan. Ephesians 4:25.

18. Sherman, Stratford (2003). Rethinking Integrity. Leader to Leader, No. 28

19. Winston, Bruce (2002). Be a Leader for God's Sake. Regent University, School of Leadership Studies. Virginia Beach, Virginia.

20. Kouzes, "The Leadership Challenge": p. 28.

21. Fairholm, Gilbert W. (1998). Perspectives on Leadership: From the Science of Management to Its Spiritual Heart. Westport, CT: Greenwood Publishing Group, Incorporated. p. 103.

22. Kouzes, "The Leadership Challenge": p. 29.

23. Kouzes, "The Leadership Challenge": p. 31.

24. Holy Bible (1985). King James Version: I Corinthians 2:13.

25. Pearce, Terry (2003). Leading Out Loud: Inspiring Change through Authentic Communication. San Francisco, CA. John Wiley & Sons, Inc. p. 16.

26. Karsten, Management, Gender, and Race in the 21st Century: p. 100.

27. Suich, K. (2004). Navy Diversity Directorate Formed. Navy Personnel Command, Public Affairs. Story Number: NNS040625-20. Retrieved Electronically 24 June 2006 http://www.navy.mil/search/display.asp?story_id=13469.

28. Cross, "The Diversity Factor": p. 57.

29. Thomas, (2005). "Building on the Promise of Diversity": p. 103 - 105.

30. In support of the CNO's Strategy for our People, the Chief of Naval Personnel has stood up the Fleet Diversity Council. It will provide a forum for unfiltered feedback to the CNO about diversity related initiatives and issues, and how they are working or not working in the fleet. http://www.npc.navy.mil/CommandSupport/Diversity/Fleet+Diversity+Council.htm

31. Clements, Phillip Edward. (2006). Diversity Training Handbook: A Practical Guide to Understanding and Changing Attitudes. London, GBR: Kogan Page, Limited. P. 100.

A New Strategy on Diversity: Aligning Leadership and Organizational Culture
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Lieutenant Ken Rice is an Active Duty Naval Officer stationed in Norfolk VA. He is currently assigned to Commander, Naval Surface Force's Warfare Requirments Directorate as the FORCEnet Requirements Officer. Lieutenant Rice is responsible for the program analasys and budget oversight for Information Technology Transformation for the Surface Fleet. He is currently enrolled at Regent University working towards a Doctorate in Strategic Leadership.

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Wednesday, January 23, 2013

Creativity, Innovation, and the Importance of Spontaneity

Spontaneity occurs when ideas or behaviours are expressed without evaluation. This lack of evaluation is the key to good idea generation. Some of the links include:

a) Large, quality idea pools are built up through a separation of creative thinking from critical thinking. If the people who wrote Red Riding Hood had realised the number of interpretations it has undergone and the various meanings attributed to the story, they may never have written it.

b) Creativity can be defined as the generation of a large number of ideas and a large number of novel and diverse ideas. Spontaneity, with its lack of evaluation, increases the number of ideas and the number of novel and diverse ideas.

Creativity, Innovation, and the Importance of Spontaneity

c) A lack of evaluation reduces evaluation anxiety, removing blocks and increasing idea numbers and the number of novel and diverse ideas. If people are worried about being unoriginal then they produce less; if they're worried about failing then they'll produce less; if they accept their first thoughts, ideas will flow. The trick is to ignore content.

d) Spontaneous engagement of novel and diverse behaviours increases the generation of novel and diverse ideas. Spontaneous engagement of novel and diverse behaviours increases the intellectual cross-pollination that is necessary for good idea generation.

e) By not evaluating, participants are less likely to block. They are less likely to say "no" and more likely to say "yes," thus opening up new pathways.

These topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email address at this site.

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Creativity, Innovation, and the Importance of Spontaneity
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Kal Bishop MBA, is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

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Sunday, January 20, 2013

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning

The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. The fast food market is forecast to maintain its current growth expectations, with an anticipated Compound Annual Growth Rate (CAGR) of 2.3% for the five-year period 2005-2010. This is expected to drive the market to a value of .6 billion by the end of 2010. Drivers of growth include increasing numbers of Americans in the workplace, which reduces the amount of time spent on preparing meals at home. In 2010, the United States fast food market is forecast to have a value of .6 billion, an increase of 12.1% since 2005.

Forecast Volume

In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions (Figure 1). This represents an increase of 5.3% since 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning

Success Factors

Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Subway ® represents a poignant example of a fast food franchisee ready for success in the future fast food market. Their strategies transcend the fast food market and apply to many other markets and products.
SWOT Analysis

Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

Size and number stores and channels Menu reflects demand for fresh, healthy and fast. Use of non-traditional channels. Partnering with the American Heart Association. Worldwide brand recognition. Customizable menu offerings. Low franchisee start up costs. Franchisee training is structured, brief and designed to assure rapid start-up and success.
Weaknesses

Décor is outdated. Some franchisees are unhappy. Service delivery is inconsistent from store to store. Employee turnover is high. No control over franchise saturation in given market areas.
Opportunities

Continue to Grow Global Business. Update décor to encourage more dine-in business. Improve Customer Service Model. Continue to expand channel opportunities to include event wagons. Improve franchisee relations. Experiment with drive-through business. Expand packaged dessert offerings. Continue to revise and refresh menu offerings. Develop more partnerships with movie producers and toy manufacturers to promote new movie releases through children's menu packaging and co-branding opportunities.
Threats

Franchisee unrest or litigation. Food contamination (spinach). Competition. Interest Costs. Economic downturn. Sabotage. Law Suits.
Competitive Analysis

Subway is not without competitive pressures. Chief competitors include Yum! Brands, McDonalds, Wendy's, and Jack in the Box. Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries. Four of the company's highly recognizable brands, KFC, Pizza Hut, Long John Silver's and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the brand names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy's International (Wendy's) operates three chains of fast food restaurants: Wendy's (the third largest burger chain in the world), Tim Horton's, and Baja Fresh. Wendy's operates over 9700 restaurants in 20 countries, has been included in Fortune magazine's list of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The increase in sales of the sandwiches has been a result of decreases in consumer interest in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and steaks.

Current Marketing Program

A new breed of restaurant is making big gains against the market-saturated hamburger establishments. Termed "fast-casual," these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches.

Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway's marketing program addresses these expectations through a number of approaches. The most notable were the television commercials featuring Jared. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. Subway also markets through a national sponsorship in events such as American Heart Association Heart Walks and local events such as triathlons, and children's sports teams.

The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market. Does your marketing strategy bind brand recognition to products that support your market's future direction?

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning
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Reference

Datamonitor Industry Market Research, (July, 2006), United States Fast Food

For more on Mr. McCarty, please refer to http://www.leadershippinnacle.com

Michael McCarty C.C.C.E, MBA

Mr. McCarty has a proven record of accomplishment in strategic leadership roles for fortune 500 companies. He is an award winning performer in the areas of large-scale operations leadership, strategic planning, senior project management, and significant contributions to the bottom line. Michael has successfully leveraged his leadership skills to provide keen insight, vision, direction, and executive support to financial services firms, information technology firms, and the automotive, credit, and insurance industries. He has been particularly effective in start-up and turnaround situations.

Insisting on integrity, self-reliance, resourcefulness, and ingenuity, Mr. McCarty is an action and solution oriented leader capable of making strong financial contributions to the bottom line. Operational leadership in the areas of process improvements, cost analysis, and innovative revenue generation characterize soundly this veteran executive's distinguished career. For more on Mr. McCarty, please refer to http://www.leadershippinnacle.com

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Saturday, January 5, 2013

Middle Management's Role in Managing Change

It is tough to be a middle manager. On the one hand, you are pulled by the centripetal force of senior management. This is the force that demands seamless and sometimes unquestioning execution of organizational strategy. It requires you to toe the company line, even when you believe the line is flawed. An outlet for those who have unsuccessfully tried to influence organizational direction is to exit the company. A more common but insidious alternative is to remain and become a mindless conveyor of decisions from the top.

On the other hand, you contend with the centrifugal pressures of frontline supervisors and employees who, in addition to typically wanting higher pay and better benefits, are opinionated about how work is performed and often resist unfamiliar systems, technologies, and processes. In the short term, pressures from this group are generally easier to manage as middle managers can assert their authority and use sanctions, or fear of sanctions, to gain compliance.

The dizzying pace of change in corporate entities further complicates the already difficult existence of the middle manager. Innovation, technology, and globalization are forcing companies to take unprecedented steps to stay afloat. As of June 2006 mergers and acquisitions were on track to top the record .4 trillion set in 2000.1 Business strategies are overhauled and thousands of jobs are reshuffled in the process. To ensure the organization that emerges remains nimble, concepts such as "flat organization" and "delayering," which essentially translate into reducing the size of middle management, are put to work.

Middle Management's Role in Managing Change

Conversely, constant change presents a unique opportunity for middle management to reinforce its value to the organization. Middle managers are extremely instrumental in creating the agility that enables an organization to swiftly respond to its environment. No matter how many times the business plan changes, they are to elicit the support, commitment, and optimal performance of operational supervisors and personnel requisite to maintain a forward momentum.

If middle management distrusts those at the helm, that organization will struggle with trust issues. If it is misaligned with corporate strategy, the lower stratum of the organization will be out of kilter. If it does not communicate effectively, employees will make assumptions and fill in blanks. An organization experiencing any or all of these challenges cannot optimize its resources. It should not expect a highly satisfied workforce or maximum ROI. These consequences are especially acute in industries where speed is critical to success.

Middle managers must recognize that change management is an integral, inescapable part of their role. There are four critical ways that they can assert their role in managing change.
Communicator: Middle managers' role as communicators increases significantly when change is under way. First, they must seek clarity from the top on the nature and dimension of change. They must break down the communication in a manner that makes sense to the individual units they represent. Next, using multiple media and venues, they communicate the change in a clear, honest, and timely manner. To demonstrate respect and maintain credibility, relevant details, no matter how unappealing, are shared with the employees who will be impacted. Feedback must be collected and relayed to senior management. This exchange of information should occur at the speed of change. For instance, weekly meetings can become daily huddles to ensure effective communication.

Solicitor. It is not enough for middle management to relay information up and down the organization. It must cultivate the habit of soliciting employee opinion on important decisions that affect employees' work and/or compensation or that significantly impact the organization. Processes should be established for accessing opinions, and input should be articulated and presented to decision makers. Managers must close the loop by relaying decisions to employees.
Intense change, especially when it occurs in quick succession, as being experienced by many organizations, can be particularly excruciating for rank-and-file employees. The employees' frustration is exacerbated when they are not given an opportunity to participate in decisions that affect them. As stakeholders and people who execute the mission of the organization, they feel disenfranchised and devalued.

Workers need to be especially on top of their game in times of change. They must be prepared to sharpen existing skills and acquire new ones. They juggle old and new ways of doing business while maintaining productivity expectations. When management forges ahead with change implementation without their input, it typically educes compliance, which is a focus by workers on meeting the minimum requirement to get by. Management should aim for commitment; that is, the sincere devotion and resolve of workers to do whatever it takes to ensure their organization is successful. Inclusion is a viable path to eliciting commitment.

This role is designated "solicitor" to underscore the fervor and sincerity that should characterize each request for input. When management appears obligated or insincere, or when it ignores input, it sends the message that employee opinion is not valued.
Builder. Business decisions are not always favorable to employee opinion. Market forces and government regulations, for instance, can force an organization to change the way it conducts business. In such circumstances, support from the workforce can be critical to successfully implementing change and attaining new heights.

To build broad support, management should first build a form of a guiding coalition.2 This is a group of employees who have differentiated themselves as top performers and respected members of their teams. Through extensive dialogue on rationale and details of impending change, the coalition is given an opportunity to clarify objectives and identify potential flaws. Once convinced, it engages in a process of educating other employees to embrace change.

Management can choose not to spend the time and effort to educate employees on the rationale behind change initiatives. It can rely on formal authority to enforce decisions. However, experts agree that managers who tap into moral authority-that is, those who earn the trust and confidence of others by building and nurturing honest relationships-achieve better results.3
Executor. Execution is performing work to achieve set goals. Vital to the survival of the organization, it is management's classic responsibility. The unrelenting storm of change has brought the discipline of execution into sharp focus. Status quo intervals (periods where strategy is on course and work flows in an established manner) have become shorter and organizations have become more flexible to cope.

In their critically acclaimed work Execution: The Discipline of Getting Things Done, Larry Bossidy and Ram Charan identify several actions and behaviors that enable managers to excel at execution. Two of their recommendations are particularly relevant to effectively managing change.
Deep personal involvement. Bossidy and Charan make the point that setting strategy from the mountaintop is inadequate for getting things done in the most productivity way.4 Managers who feel exempt from the details of execution are reminiscent of the piano teacher who holds a music degree from a prestigious college and eloquently communicates the historical origin and theoretical underpinning of music but does not know how to play the piano. Thorough understanding of the mechanics of execution enables managers to ask the right questions, establish efficient processes, and make intelligent decisions, thereby building credibility with staff and ultimately achieving desired results.

Alignment. People, strategy, and operation must be aligned to accomplish goals. This entails positioning people where they can maximize their strengths, establishing a clear line of sight from the strategic plan to specific tasks and educating people on the strategy, and designing operational processes to enable people to successfully operationalize strategy. Depending on the pace of change, alignment can be an ongoing process with each assignment requiring a fine-tuning of strategy, resources, and/or processes.

Clearly, middle management plays a key role in enabling the organization to benefit from change. However, an unsupportive culture or senior management can inhibit its effectiveness. In addition, a few unwholesome tendencies come with being in the middle. Invisibility or passiveness is one of them. Punting blame or hiding behind tops or bottoms is another. Feeling powerless is yet another. To the degree that middle managers want to maximize their effectiveness, they will have to overcome inertia and challenge these obstacles.

Endnotes

1. CNNmoney.com. Mergers to Keep on Coming. June 27, 2006. Retrieved July 18, 2006.
2. John P. Kotter. Leading Change. Boston, MA: Harvard Business School Press, 1996.
3. Stephen R. Covey. The 8th Habit: From Effectiveness to Greatness. New York, NY: Free Press, 2004.
4. Larry Bossidy, et al. Execution: The Discipline of Getting Things Done. New York, NY: Crown Business, 2002.

Middle Management's Role in Managing Change
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