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When, after the tornado in The Wizard Of Oz, Dorothy says to her dog: “Toto, I’ve a feeling we’re not in Kansas anymore”, it is an observation that could apply equally to any global company. The sacrosanct plan-and-execute way of looking at the world is unquestionably a weakness. Networks, transversality and the need for collaboration are the order of the day, whether you like it or not. When it comes to management, this involves a trend towards horizontal organizations that encourages the creation of transversal teams working collaboratively.
A team can be formed simply by working together.
True
False
Right !
Wrong. Working together is not enough in itself to form a team. Even traditional organizations operating in captive markets that guarantee a low but steady rate of growth are beginning to see the added value of combining the capabilities of their employees. On the other hand, for businesses operating in markets dominated by high levels of uncertainty, change or volatility (IT companies, telecom operators and pharmaceuticals), working in teams has become a matter of course. In these sectors – as in industries that have to constantly renew and refine their services – teamwork is driven by the need to ensure performance, responsiveness and customer loyalty... and, ultimately, a better competitive position.
Wrong !
Wrong. Working together is not enough in itself to form a team. Even traditional organizations operating in captive markets that guarantee a low but steady rate of growth are beginning to see the added value of combining the capabilities of their employees. On the other hand, for businesses operating in markets dominated by high levels of uncertainty, change or volatility (IT companies, telecom operators and pharmaceuticals), working in teams has become a matter of course. In these sectors – as in industries that have to constantly renew and refine their services – teamwork is driven by the need to ensure performance, responsiveness and customer loyalty... and, ultimately, a better competitive position.
Disciplined collaboration requires a transversal team in a hierarchical pyramid structure
True
False
Right !
Irrelevant. Morten Hansen, author of Collaboration - How Leaders Avoid the Traps, Create Unity, and Reap Big Results (HBP, May 2009) focuses mainly on horizontal collaboration within organizations (between business units, product lines, national subsidiaries, functions, sales offices, and so on). The principal behind disciplined collaboration is to combine the best of two practices: decentralization and cooperation. Units are free to work independently within the organization but must be ready and able to collaborate as and when needed. Teams are able to rely on their own initiative to spot and exploit opportunities for collaboration without being controlled by management.
Wrong !
Irrelevant. Morten Hansen, author of Collaboration - How Leaders Avoid the Traps, Create Unity, and Reap Big Results (HBP, May 2009) focuses mainly on horizontal collaboration within organizations (between business units, product lines, national subsidiaries, functions, sales offices, and so on). The principal behind disciplined collaboration is to combine the best of two practices: decentralization and cooperation. Units are free to work independently within the organization but must be ready and able to collaborate as and when needed. Teams are able to rely on their own initiative to spot and exploit opportunities for collaboration without being controlled by management.
Managing cross functional teams means requires standing back.
True
False
Right !
True. Efficient and successful transversal teams are not easily reconciled with a rigid hierarchy obsessed by worries about control. In a 1992 study by M.P. Leimbach for the Wilson Learning Corporation, 80% of respondents cited management’s pernickety involvement in their activities as the major reason for their team’s lack of efficiency. It is essential that organizations learn to synch their strategy and structure by giving teams all the autonomy they require. Issues that are the sole responsibility of management have, of course, to be defined in advance. The excessive “starification” of top managers is also an obstacle that can discourage individuals from engaging in the dynamics of transversal teamwork.
Wrong !
True. Efficient and successful transversal teams are not easily reconciled with a rigid hierarchy obsessed by worries about control. In a 1992 study by M.P. Leimbach for the Wilson Learning Corporation, 80% of respondents cited management’s pernickety involvement in their activities as the major reason for their team’s lack of efficiency. It is essential that organizations learn to synch their strategy and structure by giving teams all the autonomy they require. Issues that are the sole responsibility of management have, of course, to be defined in advance. The excessive “starification” of top managers is also an obstacle that can discourage individuals from engaging in the dynamics of transversal teamwork.
Collaboration is an imperative driven by the globalization of business and organizations. It is a goal in itself.
True
False
Right !
Not at all, it is a means to achieve the strategic goals that an organization has set itself. According to Morten Hansen, collaboration has to have a positive impact on innovation, sales and operations – and thus on increased turnover, reduced costs and operational efficiency. Individual organizations will define the contribution made by collaboration in different ways: it may mean greater innovation for one company, and an increase in commercial synergies for another. Hansen also underlines the importance of rigorously evaluating the key issues relating to collaboration.
Wrong !
Not at all, it is a means to achieve the strategic goals that an organization has set itself. According to Morten Hansen, collaboration has to have a positive impact on innovation, sales and operations – and thus on increased turnover, reduced costs and operational efficiency. Individual organizations will define the contribution made by collaboration in different ways: it may mean greater innovation for one company, and an increase in commercial synergies for another. Hansen also underlines the importance of rigorously evaluating the key issues relating to collaboration.
The decline of the US auto industry is linked to its inability to change its command and control behavior with subcontractors.
True
False
Right !
Yes! In spite of the recognized advantages of networks, many companies fail to collaborate with their partners. The decline of the US auto industry, which has been attributed to its lack of innovation, is in fact linked to its inability to change its behavior with its partners. “Its attitude,” explains Amit S. Mukherjee, “ignores the fact that the blurring of boundaries between companies and work fragmentation has impaired the industry's ability to control its own destiny.” To ensure performance, a company has to rely heavily on its partners, which is at least as powerful as it is. In other words, businesses need to forge collaborative relationships with their partners. “A company cannot be strong if it has poor networks”, says Mukherjee.
Wrong !
Yes! In spite of the recognized advantages of networks, many companies fail to collaborate with their partners. The decline of the US auto industry, which has been attributed to its lack of innovation, is in fact linked to its inability to change its behavior with its partners. “Its attitude,” explains Amit S. Mukherjee, “ignores the fact that the blurring of boundaries between companies and work fragmentation has impaired the industry's ability to control its own destiny.” To ensure performance, a company has to rely heavily on its partners, which is at least as powerful as it is. In other words, businesses need to forge collaborative relationships with their partners. “A company cannot be strong if it has poor networks”, says Mukherjee.
Hewlett Packard’s Procurement Risk Management program aims to eliminate systematically the least reliable subcontractors
True
False
Right !
False: quite the opposite! As part of its Procurement Risk Management (PRM) program, Hewlett-Packard adopted a new approach to supplier relationships in 2000 with the aim of minimizing risk along the supply chain. As Venu Nagali, head of the PRM program, explains: “In most situations, risk is still based on the weakest link… I realized that we needed to limit the risk resting on our suppliers and that, in overall terms, risk-taking should be remunerated accordingly. In that way, everyone is a winner in the long term.” The PRM program makes it possible to estimate demand and uncertainty regarding costs and availability in the supply chain. These forecasts are sent to HP's executives so that they can draw up ad hoc agreements with suppliers that share the risk and the returns.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Wrong !
False: quite the opposite! As part of its Procurement Risk Management (PRM) program, Hewlett-Packard adopted a new approach to supplier relationships in 2000 with the aim of minimizing risk along the supply chain. As Venu Nagali, head of the PRM program, explains: “In most situations, risk is still based on the weakest link… I realized that we needed to limit the risk resting on our suppliers and that, in overall terms, risk-taking should be remunerated accordingly. In that way, everyone is a winner in the long term.” The PRM program makes it possible to estimate demand and uncertainty regarding costs and availability in the supply chain. These forecasts are sent to HP's executives so that they can draw up ad hoc agreements with suppliers that share the risk and the returns.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
A company’s agility hinges on its ability to spread a collaborative mindset inside the organization and beyond its borders (if any remain).
True
False
Right !
Globalization and overlapping business networks require extreme agility that is incompatible with management habits that have persisted for decades (strategic planning, command and control when implementing plans, etc.). An agile company does not see itself as a link in a value chain; it is aware that it is at the heart of a network and that its collaborators have developed an ability to understand their environment and anticipate and respond effectively. Business is not viewed as a chain but as a fluid network of people, alliances and skills. It is important to consider four key areas that should help managers change their practices and put themselves in the shoes of an agile company!
Principle No. 1: Embed collaborative responses into everyday acts.
Principle No. 2: Collaborate – properly!
Principle No. 3: Enhance organizational learning.
Principle No. 4: Harness the power of technology.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Principle No. 1: Embed collaborative responses into everyday acts.
Principle No. 2: Collaborate – properly!
Principle No. 3: Enhance organizational learning.
Principle No. 4: Harness the power of technology.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Wrong !
Globalization and overlapping business networks require extreme agility that is incompatible with management habits that have persisted for decades (strategic planning, command and control when implementing plans, etc.). An agile company does not see itself as a link in a value chain; it is aware that it is at the heart of a network and that its collaborators have developed an ability to understand their environment and anticipate and respond effectively. Business is not viewed as a chain but as a fluid network of people, alliances and skills. It is important to consider four key areas that should help managers change their practices and put themselves in the shoes of an agile company!
Principle No. 1: Embed collaborative responses into everyday acts.
Principle No. 2: Collaborate – properly!
Principle No. 3: Enhance organizational learning.
Principle No. 4: Harness the power of technology.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
Principle No. 1: Embed collaborative responses into everyday acts.
Principle No. 2: Collaborate – properly!
Principle No. 3: Enhance organizational learning.
Principle No. 4: Harness the power of technology.
Source: Amit S. Mukherjee, author of The Spider’s Strategy (FT Press, 2008).
A company wanting to develop collaboration and transversality must avoid missing out on social networks at any cost.
True
False
Right !
But it should also avoid acting haphazardly. It goes without saying that, to adapt effectively and efficiently to changing conditions, an organization has to deploy technologies that support the principles outlined above, but the aim should be to: (1) deliver visibility (2) support analysis (3) facilitate collaboration and (4) enable mobility. If the technologies do not have any of these uses, they are a waste of time and money.
Here are a few tips:
• Consider strategic needs. Before investing in technology, make sure that the suggested solutions match the strategic objectives.
• Focus on individuals. Define how people should use the new technologies on offer and check that they are being used effectively.
• Keep things simple. Rather than investing in a perfect tool that is over-complicated (and that no one will use), choose a tool that will provide for 80% of your needs.
• Involve a variety of individuals. When designing specifications, it is better to call on the opinion of non-expert users of different ages and experience – and not just engineers and IT professionals!
Here are a few tips:
• Consider strategic needs. Before investing in technology, make sure that the suggested solutions match the strategic objectives.
• Focus on individuals. Define how people should use the new technologies on offer and check that they are being used effectively.
• Keep things simple. Rather than investing in a perfect tool that is over-complicated (and that no one will use), choose a tool that will provide for 80% of your needs.
• Involve a variety of individuals. When designing specifications, it is better to call on the opinion of non-expert users of different ages and experience – and not just engineers and IT professionals!
Wrong !
But it should also avoid acting haphazardly. It goes without saying that, to adapt effectively and efficiently to changing conditions, an organization has to deploy technologies that support the principles outlined above, but the aim should be to: (1) deliver visibility (2) support analysis (3) facilitate collaboration and (4) enable mobility. If the technologies do not have any of these uses, they are a waste of time and money.
Here are a few tips:
• Consider strategic needs. Before investing in technology, make sure that the suggested solutions match the strategic objectives.
• Focus on individuals. Define how people should use the new technologies on offer and check that they are being used effectively.
• Keep things simple. Rather than investing in a perfect tool that is over-complicated (and that no one will use), choose a tool that will provide for 80% of your needs.
• Involve a variety of individuals. When designing specifications, it is better to call on the opinion of non-expert users of different ages and experience – and not just engineers and IT professionals!
Here are a few tips:
• Consider strategic needs. Before investing in technology, make sure that the suggested solutions match the strategic objectives.
• Focus on individuals. Define how people should use the new technologies on offer and check that they are being used effectively.
• Keep things simple. Rather than investing in a perfect tool that is over-complicated (and that no one will use), choose a tool that will provide for 80% of your needs.
• Involve a variety of individuals. When designing specifications, it is better to call on the opinion of non-expert users of different ages and experience – and not just engineers and IT professionals!
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