|
7. |
Maturity
- the company is established on
the market; needs to innovate continuously to stay competitive |
|
Organization:
Decentralized
Management: Professional
Technology:
Integrated Systems
Funding stage: Asset-based |
|
pp. |
Problem
(Why worry) |
Solution
(What to do) |
Action
(How to do) |
|
7.1 |
Growth Risk
|
|
|
|
7.2 |
Technology &
Production Risk
-
Shortening life cycle of technologies and products
-
Incremental features of product improvements add
less and less value
-
Difficult, if not impossible, to predict the
next major trend in any industry
-
Rejecting an emerging technology as it may be
viewed as inferior to the corporate dominant technology
-
Elaborate approval processes favoring slowed
product development cycles
|
-
Continuous innovation system
-
Intellectual property management system
(see
slide
show)
-
Management of project portfolio and prioritization between projects
-
Top management participation
-
Ability to adapt quickly to changes in the
marketplace
-
Culture incorporating respect for company
researchers, who should be linked to the company's business objectives.
|
|
|
7.3 |
Marketability &
Competing Risk
-
Growth rates and margins decline as markets
mature
-
Competitor's fierce reaction to your global
marketing campaign
-
Focusing attention to market standing relative
to the competition's only narrows the definition of the market, leading the
organization to ignore valuable market segments
-
Poor assessment of effectiveness and profitability of various marketing channels
|
-
Continuous market watch; anticipating the market needs
-
Maintaining and defending market position
-
Developing new market niches: seeking,
expanding, global penetration
-
Reinventing
market development strategy
-
Marketing partnerships
(see
slide
show)
|
|
|
7.4 |
Financial Risk
-
Sustained periods of negative cash flow
-
No formal investment strategy
-
High risk of investment in strategic research
and venturing into new areas
-
High cost of building competitive barriers
|
-
Operating costs reduction through optimization
of
production systems
-
Shift from venture capital towards asset based financing
-
Strategic research cost sharing with alliances
-
Divesture of segments
|
-
Look at several measures of capital employment
- not just one
-
Balance your risk capital investments based on
technology area, industry concentration, geography, and other criteria
-
Work back to costs from what customers are
prepared to pay
-
Reduce inventory costs by developing
lean production
systems
-
Explore opportunities for attracting
international financing and raising funds from public stock markets
-
Explore opportunities for
managing projects as spinouts
-
Raise additional cash from divesting from the
low priority segments of your business
-
Upgrade you expense control system
|
|
7.5 |
Team & Management Risk:
-
Reduced communication & cooperation among
functional units; poor teamwork and coordination across various functions of
the company
-
Absence of integration for business and systems
plans
-
Turbulence due to expansion of the managerial
team
-
Changing focus; unclear strategy or many
conflicting priorities concerning what's going on in various departments of
the organization
-
A top-down or laissez-fair style of leadership
on the part of management that is either too autocratic or too hands-off
-
Unhealthy competition for power; a relative lack
of leadership or managerial skills in the organization
-
Control systems poorly documented
-
Management fails to engage the organization
effectively
-
Measurements not related to success factors
-
Reporting not tied to management incentives
-
Poor vertical and horizontal communication:
employees don't know what top managers are thinking; middle-level managers
don't know what's going on in other departments
-
Highly structured reward schemes do not motivate
employees to be more innovative
|
-
Establishment of management systems enabling
better control, transparency, and customer relationships
-
Development of
employee empowerment mechanisms
-
Development of decentralized
management structures, with managers operating within a shared context
that encompasses anticipation of future events that might have an impact
on the industry.
|
-
Manage by objectives
-
Start with yourself,
know your own values, strengths, weaknesses
and use them effectively; practice
effective self-management
-
Empower employees, vendors, customers, and
peers to measure your management performance
-
Define duties and responsibilities according
to current and future organizational needs
-
To be a successful manager, learn how to
innovate; you have only two options - to
manage change
or to change management
-
Build an
innovation-friendly organization; devise catalytic mechanisms and lead
cycles of reinvention
-
Model core values; base your decisions on the
values; and hold everyone accountable to values
-
Find, develop and manage
high-level
partnerships
-
Reinvent or reengineer your organizational
structure and your methods of
motivating people
-
Do the
feedback analysis as a matter of course
to build on your strengths
-
Gain really effective control by
measuring performance
and conducting a
comprehensive business audit
-
Redeploy management talents; hold your management team accountable for
strategic leadership
-
Never stop learning; build a
learning organization;
look for trends and
opportunities
-
Be creative; nurture/champion new ideas
-
Lead others to discover, vision, re-plan, act
and measure results; be proactive; seek timely feedback
-
Delegate authority; share strategic
leadership with the team
-
Make sure you
communicate clearly and often
with colleagues, superiors, and subordinates
-
Play the role of the
team builder,
coach,
strategic planner and
communicator; take relationship responsibility
-
Be explicit about what you expect and what you
won't tolerate
-
Design reward system to reflect values
|
