Organization theory and design 05 2013

organization @TC 2013

5 Designing Around the Customer


หัวข้อบรรยาย/กรณีศึกษา 1 แนวคิดทฤษฎีองค์การ 2 โครงสร้างและการออกแบบองค์การ Focus on task performance and structure Focus on motivation Focus on adjustments to the external environment 3 หลักการการออกแบบองค์กรที่มีประสิทธิภาพ 4 Fundamentals of Organization Designพื้นฐานแนวคิดการออกแบบโครงสร้างองค์การ C 1 : Harvard Business Case / NYPD New 5 Designing Around the Customer C 2 : Harvard Business Case /Transformation at Ernst & Young United Kingdom


Customer-Centric Strategies

•  What Is Customer-Centric? –  Strategy –  Structure –  Process –  Rewards –  People

•  The Drive Toward Customer-Centricity •  Customer-Centric Strategies •  Customer Profitability and Segmentation



















Customer-Centric Organizations

•  Strategy Locator: How Customer-Centric Do You Need to Be? •  Customer-Centric Capabilities •  Customer-Centric Light •  Customer-Centric Medium •  Customer-Centric Intensive • 


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LEARNING FROM… THE POWERFUL OFFICE


Learning from… The Powerful Office

An Organization:

A SOCIAL Institution Made of PEOPLE Playing a ROLE

And INTERACTING between each other.


Learning from… The Powerful Office

•  Things evolve… New people comes in… and both can have some impact… •  Beyond the formal line of authorities there are relationships, formal and

informal, between people…


Learning from Toyota

•  Toyota's success: encourages every worker, no matter how far down the production line, to consider himself a knowledge worker and to think creatively about improving his particular corner of the organisation.

Source: The Economist “The new organisation: a survey of the company”


Learning from…MUCH / MRH

Facing the growing complexity…

Matrix forms &

process organization


Learning from… MUCH / MRH

•  CHANGING THE CULTURE… … beyond the organization’s structure…

cultivate a collective sense of responsabilitity

among employees

Source: Majchrzak, A. & Wang, Q. «Breaking the Functional Mind-set in Process Organizations» HBR


Learning from…IBM

Either… •  Splitting IBM businesses… or •  Integrating into 1-activity

•  How to explain the two logics?


Learning from… IBM §  Splitting IBM businesses

§  In reaction to the new environment: new competitors providing narrow/horizontal slice of the total package;

§  Customers’ support: §  To break up IBM’s pricing umbrella (bundle prices) §  Interest in getting computing power to the individual employees; §  To bring more competition into the marketplace;

§  A financially-market driven strategy: IPO of many companies… §  For many IBM executives, an organizational and cultural logic, where

each entity already first perform in its own turf.


Learning from… IBM §  Integrating into 1-activity

§  A client-driven logic: at the end of the day, the customer needs an integrator, to create value §  Problem solving §  Ability to apply complex technologies to solve business challenges §  integration

§  In this new environment (with tens of thousands small companies) IBM ‘s scale and broad-based business capabilities were its competitive advantage

§  A new organizational and cultural logic: performance is measured in terms of contribution to the whole…


Learning from… IBM

§  A new conception of IBM’s business model:

§  Based on two emerging forces: §  Customers would increasingly value companies that could provide

solutions that integrated technology from various suppliers and integrated technology into the processes of an enterprise.

§  Networked model of computing would replace the PC-dominated world of 1994.


Learning from… IBM

•  A new conception of IBM’s business model •  Creating a Global Enterprise:

– Capitalizing on its ability to “integrate all the parts” for the customers.


Learning from…IBM

§  A new conception of IBM’s business model:

§  A services-led model: §  Designs, builds and delivers integrated technology solutions. §  Build the largest and the most influential services business in the IT

industry.


Learning from… IBM §  A new conception of IBM’s business model:

§  Pulling together all of IBM’s software assets under a single executive… In a world of open standards… focus on the “middleware”…working “cross platform”

§  Acquiring Lotus to complete the middleware portfolio and enter in the world of “collaborative computing”.

§  Leaving “application software”… and partnering with application software developers

§  Enter the technology components marketplace.


Learning from…IBM

•  A new conception of IBM’s business model •  Integrating IBM:

– Organization / Brand Image / Compensation


Learning from…IBM •  A new conception of IBM’s business model: •  Organization:

–  Breaking up the fiefdoms: from geographical organization to a global, customer-oriented organization.

•  Brand Image: – Global and unified brand

•  Compensation: –  Pay for performance; stock-based compensation; bonus link to overall

IBM’s performance


Learning from…IBM

•  Which activities should be kept, outsourced or abandoned.

To protect and develop the “integrator" role,

to better-served the client: stay on “focus”


Learning from… IBM •  Which activities should be kept, outsourced or abandoned. •  Sell unproductive assets and not essential for the company, to raise cash:

(examples: Expensive training centers, Fine-art collection, Federal Systems Company/national security and space programs…)

•  Leaving “application software”… and partnering with application software developers (no longer competing against them)

•  Selling the IBM network ($5 billion) to AT&T… a part of the stack that was not strategically vital… and avoid huge capital investment to maintain the network.

•  Exit the DRAM business… exit the hard-disk-drive business…

Selecting markets and competing on the basis of a distinctive, sustainable competency.


Learning from…IBM

•  IBM transformation of the management roles and organizational culture.

•  A culture of collaboration… – Organizational structure and processes that favour the collaboration…

the expression of a new culture. •  Managing by principles… •  Focus on the outside: the client.


Learning from…IBM

•  IBM transformation of the management roles and organizational

culture.

•  For the Mature Business (H1) – Operators: deep functional expertise

•  For the rapidly Growing Business (H2) – Business Builders: entrepreneurial

•  For the Emerging Business (H3) – Visionaries: unconventional thinkers.