Chapter Fifteen © 2007 John Wiley & Sons From Silos to Synergy— Harnessing the Organization Copyright © 2010 John Wiley & Sons, Inc All rights reserved Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc The purchaser may make back-up copies for his/her own use only and not for distribution or resale The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein Chapter 15 - Organizational Issues PPT 15-1 The Silo World © 2007 John Wiley & Sons Product Silos Country Silos Functional Silos HDTV Copiers US France Sales Advertising Projectors Medical Imaging Far East Africa Sponsorship Digital Chapter 15 - Organizational Issues PPT 15-2 Silo-Driven Problems Misallocation of marketing resources Silo-spanning brands lack clarity & linkage © 2007 John Wiley & Sons Silo-spanning offerings & programs are missed or mishandled Marketing management competence is diffused Success is not leveraged across silos Communication and cooperation weak Chapter 15 - Organizational Issues PPT 15-3 A Framework for Analyzing Organizations Internal InternalAnalysis Analysis ExternalAnalysis Analysis External © 2007 John Wiley & Sons Strategy Strategy Chapter 15 - Organizational Issues People People Structure Structure Systems Systems Culture Culture Performance Performance Figure 15.2 PPT 15-4 Obtaining Information about Organizational Components Structure © 2007 John Wiley & Sons • What is the organization’s structure? How decentralized is it? • What are the lines of authority and communication? • What are the roles of task forces, committees, organizations, or similar mechanisms? Chapter 15 - Organizational Issues Figure 15.3 PPT 15-5 Obtaining Information about Organizational Components © 2007 John Wiley & Sons Systems • How are budgets set? • What is the nature of the planning system? • What are the key measures used to evaluate performance? • How does the accounting system work? • How product and information flow? Chapter 15 - Organizational Issues Figure 15.3 PPT 15-6 Obtaining Information about Organizational Components © 2007 John Wiley & Sons People • What are the skills, knowledge, and experience of the firm’s employees? • What is their depth and quality? • What are the employees’ expectations? • What are their attitudes toward the firm and their jobs? Chapter 15 - Organizational Issues Figure 15.3 PPT 15-7 Organizational Culture Shared Shared Values Values Normsof ofBehavior Behavior Norms © 2007 John Wiley & Sons Organizational Culture Chapter 15 - Organizational Issues Symbols Symbols and and Symbolic SymbolicAction Action Figure 15.3 PPT 15-8 Obtaining Information about Organizational Components © 2007 John Wiley & Sons Culture • Are there shared values that are visible and accepted? • What are these shared values and how are they communicated? • What are the norms of behavior? • What are the significant symbols and symbolic activities? • What is the dominant management style? • How is conflict resolved? Chapter 15 - Organizational Issues Figure 15.3 PPT 15-9 Silo Spanning Objectives Dysfunctional objectives © 2007 John Wiley & Sons Centralize Standardize Reduce the number of divisions or agencies Chapter 15 - Organizational Issues Appropriate objectives — to improve Silo-spanning programs & offerings Brand consistency & linkage Resource allocation Marketing competence Communication & cooperation PPT 15-10 Strategy Development: A Discussion Agenda © 2007 John Wiley & Sons Environmental Analysis • What environmental threats, opportunities, and trends exist? • What are the major strategic uncertainties and information need areas? • What scenarios can be conceived? Chapter 15 - Organizational Issues Figure 16.5 PPT 15-26 Strategy Development: A Discussion Agenda © 2007 John Wiley & Sons Internal Analysis • What are our costs, strategy, performance, points of differentiation, strengths, weaknesses, strategic problems and culture? • What is our existing business portfolio? • What has been our level of investment in our various product markets? Chapter 15 - Organizational Issues Figure 16.5 PPT 15-27 © 2007 John Wiley & Sons Strategy Development: A Discussion Agenda Strategy Development • Product market investment—exit, milk, maintain, grow/enter • What assets and competencies will provide the basis for an SCA? How can they be developed and maintained? How can they be leveraged? Chapter 15 - Organizational Issues PPT 15-28 © 2007 John Wiley & Sons Strategy Development: A Discussion Agenda Strategy Development • Product market investment—exit, milk, maintain, grow/enter • What assets and competencies? How can they be developed, maintained, leveraged? • What value proposition? • What functional strategies? Chapter 15 - Organizational Issues PPT 15-29 Growth Strategies © 2007 John Wiley & Sons • • • • Energize the business Leverage the business Enter new business product/markets Go Global Why Strategic Market Management? • Precipitate the consideration of strategic choices • Help a business cope with change • Force a long-range view © 2007 John Wiley & Sons • Make visible the resource allocation decision • Aid strategic analysis and decision making • Provide a strategic management and control system • Provide both horizontal and vertical communication and coordination systems Chapter 15 - Organizational Issues PPT 15-31 Key Learnings © 2007 John Wiley & Sons • The organizational levers are structure, systems, people, and culture Each must be congruent and support the business strategy • Decentralization with powerful silo groups can inhibit synergy and efficiency For marketing, it leads to misallocation of resources, confused brands, inhibited cross-silo offerings and programs, weak marketing staffs, the failure to leverage success, and inadequate cooperation and communication • In dealing with the problem CMOs should consider nonthreatening roles such as facilitator or consultant and should not have as an objective to centralize and standardize • The organizational structure lever provides the option to centralize selectivity, use teams and networks, use matrix reporting structures, and to employ a virtual organization Chapter 15 - Organizational Issues PPT 15-32 © 2007 John Wiley & Sons Key Learnings • Management systems involves the information, measurement and reward, and planning systems that can all promote cooperation and communication • People on the CMO team, who can be sources internally or externally, need to be knowledgeable and marketing, brands, markets, products, and the organization in addition to being strategic and serving as change agents • Culture involves shared values, norms of behavior and symbols and symbolic action The CEO is a key drive of strategy and it is important to get him or her on board The fit between components is illustrated by the hit-industry topology, which contrasts the functions of drillers (who develop products), pumpers (who focus on production), and distributors (who specialize in marketing and distribution) Chapter 15 - Organizational Issues PPT 15-33 © 2007 John Wiley & Sons Ancillary Slides Chapter 15 - Organizational Issues PPT 15-34 “All progress is initiated by challenging current conceptions and executed by supplanting existing institutions.” © 2007 John Wiley & Sons - George Bernard Shaw Chapter 15 - Organizational Issues PPT 15-35 “Structure follows strategy.” © 2007 John Wiley & Sons - Alfred Chandler, Jr Chapter 15 - Organizational Issues PPT 15-36 “Those that implement the plans must make the plans.” © 2007 John Wiley & Sons - Patrick Hagerty, Texas Instruments Chapter 15 - Organizational Issues PPT 15-37 “There is nothing more requisite in business than dispatch.” © 2007 John Wiley & Sons - John Addison Chapter 15 - Organizational Issues PPT 15-38 “This report, by its very length, defends itself against the risk of being read.” © 2007 John Wiley & Sons - Winston Churchill Chapter 15 - Organizational Issues PPT 15-39 © 2007 John Wiley & Sons “If I had to sum up in one word what makes a good manager, I’d say decisiveness You can use the fanciest computers to gather the numbers, but in the end you have to set a timetable and act.” Chapter 15 - Organizational Issues - Lee Iacocca PPT 15-40 ... Balance central opportunities with local needs Chapter 15 - Organizational Issues PPT 15-11 © 2007 John Wiley & Sons Overview of Strategic Market Management Chapter 15 - Organizational Issues PPT 15-12... and programs PPT 15-13 Overview of Strategic Market Management External Analysis © 2007 John Wiley & Sons • • • • Customer Analysis Competitor Analysis Market/ submarket Analysis Environmental Analysis... business Leverage the business Enter new business product/markets Go Global Why Strategic Market Management? • Precipitate the consideration of strategic choices • Help a business cope with change