STRATEGIC LEADERSHIP

LEARNING JOURNAL-05
Submitted to:

Prof: Sunil Maheshwari

Submitted by:
Mohit Kotwal-PGDM(E)-024
 STRATEGIC LEADESHIP Prof: Sunil Maheshwari

Learning from G.E continued:

Role dilution: When people are added at the top in the name of reorganization
reorganization,, then role dilution
takes place.

Corporate strategy v/s business strategy

Corporate strategy:: Decision arena

Business strategy:: Managers decide how to create differentiation,, how to capture market share.
sh

Porter's generic strategies describe how a company pursues competitive advantage across its
chosen market scope

Benefits of cost leadership:

 Demand increases.
 Fixed cost per unit decreases.
 Raw material cost decreases because bargaining power increases.

Issues in decentralization

 In decentralization control with an important issue.

 Control can be through budget . Budget in 10 to give a direction.
 Control can be through structure. A supervisory layer may be there can be taken to
control. e.g. Sector head in G.E.

Accountability: Through output. In output

utput based accountability manager has only to worry about the
excuses that can be made
de for not meeting the targets.

MOHIT KOTWAL-PGDM(E)-024 2
 STRATEGIC LEADESHIP Prof: Sunil Maheshwari

Analysis and learning from initiative at G E :

#1 or #2 -Fix ,Sell, Close .

Implication of one line target:

 There is no ambiguity about target

 Communication is sharp
 No bias in evaluating decisions.

Neutron Jack:

Shows tiredness of the managers.

Importance of Turnover ratio:

 If turnover ratio is low, it indicates internal inefficiencies and Management has to focus on
reorganisation.

Nomenclature:

 Right nomenclature should be intelligently used in organisation. It helps to keep employees

motivated and also help to manage the portfolio of the organisation.

Work out technique:

It is a three day process of relieving mental fatigue of the managers. It is to collect data and then to
find solutions by managers themselves.

The bosses’ have three options before then when the solutions are presented- No, Yes, Later:

No:

 Very difficult to say.

 Have to justify no and that too in front of their own boss.

Yes:

 To say yes to a suggestion means to accept negative feedback about them in front of their
bosses

Later:

 Safest option.
 Do not have to say a yes or no immediately.
 But these cannot be to more than 20% of the solutions,

Work-out: Not adopted by other companies.

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 STRATEGIC LEADESHIP Prof: Sunil Maheshwari

Impact of work out strategy on managers:

 Managers prefer to say a no in workout. Manager are forced to spend more time at the
workstation so that they can defend themselves in the work-out.
 Work out sessions makes manager get closer to business and get contextual understanding
of business. The Awareness of of self(organisation) improves.
 One manager has better contextual understanding, Decision making improves.

Fear and futility removed in workout. Fear because facilitator is there. Futility because boss's boss is
at watch.

Learning behaviour is promoted to change attitudes:

 Learning from self- through workout sessions.

 Learning from others- best practices of Companies.
 Boundaryless behaviour: Learn from anywhere. Any company whether good or bad.

Learning in painful, so anything important but painful- make it compulsory.

Boundary-less behaviour: Learning is linked to appraisal. Unless learnt one idea, not eligible to be
considered for bonus. So punishment in no bonus and reward is eligible for bonus. When
something is important they should be punishment for it.

Going global:

 Change definition of #1 and #1 with respect to global for growth.

 Managers time to define market narrowly.

I own the people, you rent them.

 Identified 500 managers and position them at key positions-CFO, operations head.
 Role of managers: Gather information and inform the management.


B D
GO LOCAL Dual Citizen
H
Subsidary Allegiance

A C A/B –Not Required

Laissez-faire Heart at Home C/D- Required

L

L H

HQ Allegiance

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 STRATEGIC LEADESHIP Prof: Sunil Maheshwari

To ensure high allegiance, staffing issues must be controlled by the headquarters.

People are also controlled by making them part of a valued group and put them in regular
communication with higher management.

4 types of manager as per G.E.

B D
Chance for
Improvement
H
Value Congruence

A C

OUT Don’t tolerate

L

for a day

L H

Performance

Types C managers:

 Biggest threat to the the organisation. Because their productivity is higher so risk is higher.
 When organisations are big. Even one slippage has huge impact for the reputation of the
organisation.
 Bigger organisations are more vulnerable.

Value violation has a larger impact on the organisation.

Values:

 Ensure your internal control .

 Values are like blinders.

Role of Crotonville: Reminding managers of value system of G.E through stories and tales.

Stretch:

Target+ Stress target.

 New base is created every year.

 So everyone's full potential is exploited.

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 STRATEGIC LEADESHIP Prof: Sunil Maheshwari

In large organisation a decentralized setup is essentially required.

A decentralised has to have control:
Control can be through:
 Budget-for process control
 Structural control.
 Appraisal system.
 Behavioural control – through learning and having right value system.

Strategic leadership: Looking at context and responding to context.

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