Professional Documents
Culture Documents
adrian@adriansims.com
Passing the SCS Exam
2
5 Stage Approach to each section
1. Read the task to identify subsections
- bullet with single sentence = 1 requirement
- bullet with single sentence containing and = 2 requirements
- bullet with two sentences = 2 requirements
- mark allocation and time allocation
2. Type tasks and key words as bold headings into your document
- marks are allocated under headings
- separate key terms to help generate thoughts (investors and staff not investors and staff)
- remember your strategic subject knowledge (P3, E3, F3)
3
Technical Business People Leadership
Financial External forces on Consider Identifying good
statements (profit, business (PEST, 5 stakeholders leaders
cashflow, assets, forces, Diamond) affected (ICE) Roles of leaders
liabs) Stakeholders How to manage Commenting on
Investments (NPV, (Mendelow, Mission) them leadership style
IRR, Payback) Strategic options Organisational Impact of good/bad
Business (Porter, Ansoff, BCG, culture Handy, leadership
valuations Value Chain) Cultural web, Building and
Financial Rational, Organisational motivating a team
reporting (incl. Emergent, structure matrix, Collaboration and
integrated Freewheeling, functional, network teamworking
reporting) Incremental Negotiation and (Tuckman, Belbin)
Disclosures Impact of IT influence Work/life balance
Financing Human resource Consider peoples Managing change
debt/equity management motivations Change theory
Risk cycle Quality (Maslow, Herzberg) (Lewin, Balogun,
(appetite, mapping, management Ethics and CSR Kotter &
TARA) (TQM) Schlesinger)
Corporate Balanced Recommended
governance scorecard actions to lead
Internal controls SVA change
Internal audit Traditional control
Fraud (ratios, variances)
4
Business Skills = BESTO
1. Business
- fit with goals of firm
- fit with the firms business model & strategic position
- responses of competitors, suppliers, government
2. Economic
- financial feasibility
- impact on profits, cash flows and share price
3. Social
- fit with social trends and culture
- impact on CSR
4. Technological & timing
- impact of modern technology developments
- how soon impact will come
5. Organizational & operational
- effect on job roles, teams, departments and divisions
- disruptive effects on immediate operations
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Three Groups of Stakeholders
Internal stakeholders External stakeholders
Employees
Local community
Connected stakeholders
Interest groups
Investors
Suppliers
6
Interest and Power
7
Interest and Power
8
Stakeholder Mapping
Direction Education
Instruction Communication
Intervention
Negotiation Participation
Consultation
9
Ethical frameworks
Professional & Accounting Ethics
10
Principles of Business Ethics Exam examples of unethical behaviour
11
Approach to ethics tasks
State main ethical issues
use key concepts/principles
show how action or proposal of management conforms to/conflicts with the
principles
12
Leadership Skills
1. Personal leadership qualities
- vision
- inspiration/motivation
- helicopter factor (big picture + zoom on detail)
- political and personal sensitivity
- self discipline and emotional resilience
2. Leadership team
- balance of skills/styles (Belbin)
- mutually supportive/united/shared vision
- open communication
- provide direction to teams and business
- succession planning needed
3. Team building
- careful selection process (compatible, shared backgrounds)
- clear goals/objectives
- clear role allocations
- leadership and feedback
- celebrate success
13
Leadership Skills
5. Motivation
- payments and rewards
- mentoring and coaching
- encourage competition
- recognition
- address de-motivators (supervision, rules, insecurity, conflict, resources)
6. Change Leadership
- Kotter and Schlesinger
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-optation
Explicit and implicit coercion
14
Business/share valuation methods
Method Comments
15
Acquisitions
Benefits of acquisitions Drawbacks of acquisitions
Gain access to new market quickly Pay too much for a bad firm
16
Identifying risks
Strategic Managerial Operational
Hazard
Operating
Financial
Commercial
Litigation
Reputation
Compliance
17
Risk mapping/risk scaling
18
Internal controls
Division of responsibilities
Arithmetic and accounting
Management
Personnel
Supervision
Organizational (structure, procedures, processes)
Authorization and responsibility
Physical (custody, protection)
19
Risk management
Information systems to monitor risks
Preventative steps to reduce risks
Contingent steps to respond to risks that crystallise
Transfer
Avoid
Reduce
Accept/absorb
20
Negotiation
1. Prenegotiation
- establish negotiation team
- establish desired timescale for negotiation/resolution
- assess likely aims/position of counterparty
- identify own aims and position (must-haves, nice-to-haves)
- develop support for position (arguments, data, stakeholders)
- plan structure of proposals
- frame negotiation issues with counterparty
- agree negotiation mechanism with counterparty (location, participants,
aims, rounds & pathways)
2. Negotiation
- identify areas of agreement and disagreement
- establish aims and argument/justification of counterparty
- probe counterparty for areas of concession, weakness & poor logic
- identify blockages to disagreement and seek to resolve
3. Post-negotiation
- resolve formal written statement of agreement
- plan implementation
- agree follow up meetings/communication to maintain relationship
21
Performance evaluation of teams
1. Identify & communicate objectives for team
- Specific, Measurable, Attainable (Agreed), Relevant (Resourced),
Time bound
2. Assess deliverables
- Extant: has it been done?
- Effectiveness: KPIs for outcomes:
- Efficiency: time, resources, waste
- Economy: cost, earnings, profitability
3. Assess enabling steps for performance
- team membership: recruitment, training, development of roles
- establishment of processes and procedures
4. Qualitative aspects
- emotional health of team (turnover, morale, complaints)
- attitudes of stakeholders to team (surveys on satisfaction)
5. Decide evaluation methods
- use of Internal Audit department
- set up information gathering approach (management reports, web
questionnaires, staff appraisal system, user group meetings)
22
Business Strategy
Models
23
Characteristics of strategic decisions
Outcome sometimes not obvious at the time and may not be clear
for some years
24
Building a Strategy
Stakeholder expectations
Resources and capabilities
Strategic The business environment
Analysis
Strategic
Choice
Plan and allocate resources
Strategy Leadership
Implementation Organisational structure and design
Identifying strategic options Managing change
Evaluating options
Selecting strategy
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Tools for Strategy Development
26
Tools for Strategy Development
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Tools for Strategy Development
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PEST Analysis
29
Porters Five Forces
Pressure on
prices
Pressure on
costs
Pressure on
prices and sales
volumes
30
Assessing market/industry
1. Assessing effective demand
- present and forecast spending
- present and forecast prices
- desired features/qualities
- trends (fashion, lifestyles, government support, demographics)
2. Assessing competition
- competitive strengths (quality, resources)
- forecast competitive behavior (goals for market, past behavior)
- forecast prices (costs, technology)
- potential for market entry by rivals
31
Assessing market/industry
1. Assess results of firms already in the market
- segmental accounts
- visit their operations (ethical issue of snooping)
- trade media
- investment reports
- former managers (ethical issues of confidentiality and manipulation)
2. Country analysis and sector reports
- professional consultancies in-country
- marketing research reports (Mintel, AC Neilson)
- economic assessments (eg World Bank, Dunn and Bradstreet)
- risk assessments (eg Ease of Doing Business Index World Bank)
3. Government and trade group sources
- departments/ministries for trade
- trade agencies
- in-country trade groups and federations
4. Project costing and feasibility studies
- investment costs in non-current assets
- costs of systems development
- recruitment and training
32
Competitor analysis
Financial strength
Resources and capabilities
Likely costs and therefore prices
Methods of production and operation
Product quality and performance and strength of brands
Customers: satisfaction, needs, likely spending power
Organisation and management
Differentiation: what they distinguish themselves by
33
Information on Competitors and Markets
34
Big Data and Analytics
Sources of data
Social media postings
Web browsing
Television viewing
Emails and messages
Conversations
GPS
Customer spending data
Inventory data
News feeds
35
Big Data and analytics
Characteristics of Big Data Uses of Analytics
Volume Descriptive
Vast amounts too large to be stored and analysed by conventional data bases. Associations
Need for distributed processing (eg cloud) Clusters
Variety Predictive
Unstructured eg messages, social media postings, photos, sensor data, video Sequences
and voice recordings Trends
Velocity Internal applications
Constantly generated and rapidly changing. Requires real-time capture and Monitor operational efficiency
analytics Identify waste/cost & fraud
36
Leadership &
Management
37
Differences between leadership and
management
Leadership Management
Develops and changes things Operates within existing systems
38
Management Effectiveness
Good management Bad management
Team gets the tasks done well Tasks left undone or done badly
Team takes responsibility for the tasks Team only works when it is told to
Clarity over the roles of each team Confusion and conflict over roles and
member and procedures procedures
Team will work without the manager Team only functions if the manager is
present present
39
Management/Leadership Style
Style Telling/ Autocratic Selling/ Participative/ Delegating/ free-rein
Communication Consultative
Managerial behaviour Takes decision and Presents decision and Presents problem, gets Allows team to decide
announces it invites questions suggestions, makes action within limits
decision
Extent of task focus Exclusively about getting High Some balance with Low
job done impact on team
Extent of Very low Limited to gaining Some trust of team High reliance on team
relationship/team focus obedience
Impact on team Loyalty to manager Better understanding Greater engagement High motivation and
or Greater engagement or responsibility
Resentment and Some loss of or
demotivation confidence in manager Frustration at lack of
direction
Task environment
Risky environments, or where quick decisions are needed, tend to
require Telling style from a manager
41
Corporate Governance
Responsibility of Board of Directors Board level
42
Management of Risk
Definition of Risk
The possibility that business performance and outcomes may be different from that intended
Sources of risk
Hazard: climate/weather, fire, dangerous product
Financial: cash flow problem, bad debts, losses due to foreign exchange movements
Operating: technology fails, loss of key team members, supply chain disruption
Litigation: sued for breach of law or regulations or injury to others
Reputation: loss of respect from public due to a scandal
Commercial: competitor is better, failure of new product or line of business
Managerial: arises from failure of management to control business
Strategic: wrong markets/industries, failure to adapt to change, killer applications
Managing risk
Information: monitor potential risks and evaluate exposure of firm
Prevention: take action to minimise likelihood or impact of the risk
Response: have plans in place to respond to the risk occurring
43
Groups and
Teambuilding
44
Features of Groups
Good features Bad features
Higher productivity than an Pressure on members to conform to
individual group norms or be ejected
Share knowledge and skills Groupthink failure to challenge
bad ideas
Creative solutions to problems Conflict members waste time
fighting for power and position
Meet social needs of members Risky shift group will take risky
decisions because individuals not
responsible anymore
Support for members Cautious need for agreement and
consensus means no new thinking
45
Team Development - Tuckman
46
Nine Team Roles - Belbin
47
Building Effective Teams
Appoint a good team leader
48
Performance evaluation of teams
1. Identify & communicate objectives for team
- Specific, Measurable, Attainable (Agreed), Relevant (Resourced),
Time bound
2. Assess deliverables
- Extant: has it been done?
- Effectiveness: KPIs for outcomes:
- Efficiency: time, resources, waste
- Economy: cost, earnings, profitability
3. Assess enabling steps for performance
- team membership: recruitment, training, development of roles
- establishment of processes and procedures
4. Qualitative aspects
- emotional health of team (turnover, morale, complaints)
- attitudes of stakeholders to team (surveys on satisfaction)
5. Decide evaluation methods
- use of Internal Audit department
- set up information gathering approach (management reports, web
questionnaires, staff appraisal system, user group meetings)
49
Motivating and Driving
Performance
50
Theories of Individual Motivation
Maslow - The Hierarchy of Needs
Personal
Progression
51
Theories of Individual Motivation
52
Improving Individual Motivation
Supervision and Leadership
o Appoint and train good manager/supervisor
o Appropriate management style
Job Design
o Job rotation: allow individual to switch tasks
o Job enlargement: give the individual more tasks
o Job enrichment: increase the responsibility and skills in the job
Payments systems
o Tie aspects of pay to role performance (output, attendance, punctuality)
o Provide pay progression on basis of performance
o Remove unfairness in pay systems
53
Improving Team Motivation
Identify and communicate objectives for team
Set performance measures
- budget targets
- times for delivery of activities (response to calls, time to process applications)
- service quality targets (customer satisfaction, error rate)
Payments and rewards systems
- mixture of individual and group bonuses
- non-financial benefits (flexible working, additional vacation, health and pension benefits)
Give recognition for effort
- to individuals
- to the team (parties, time off)
Address factors leading to low motivation
- poor supervision
- unnecessary rules
- job insecurity
- conflict
54
Coaching and Mentoring
Seeks to improve personal performance and progression
Coaching
o One to one meetings of person with a coach
o Encourages reflection and self-discipline of individual to removal of
blockages to better performance
Mentoring
o Periodic meetings with more senior person from same function/career
o Individual shares work problems and mentor makes constructive
suggestions on how to overcome them
o Motivational because mentor acts as a role model
o Mentor encourages reflection on experiences and personal learning
55
Organizational Culture
and Change
56
Organizational Iceberg
57
Impacts of Culture
Affects behaviour of the individual
o Willingness to accept responsibility
o Effort to change or improve things
o How loyal and bonded they are to the organisation
o Attitude and obedience to management
o How customers and suppliers are perceived
58
Types of Culture
Handy/Harrison model
Culture influences the patterns of behaviour and decision making
59
Cultural Web
The culture is created and maintained by 6 factors The way things
are done and
what is
acceptable
Johnson and
Scholes
60
McKinsey: 7 S Model
The culture (or shared values) are created and maintained by 6 factors
The way things
are done and
what is
acceptable
61
Key Relationship Skills
62
Communication
Schramm 1957
63
Communication
The Media
The Message
Personal conversations
Instructions
Email
Good/Bad news
Social media/messaging
Technical data
Group meetings
Promotion/Advertising
Teleconferences
Calls to action/motivation
Public address
Discipline/criticism
Letters
Requests for help
Reports
Press announcements
64
Meetings
Types Steps for an effective meeting
Publish results/minutes
65
Improving Meetings
Problem Solution
66
Influence and Persuasion
Approach
67
Six Weapons of Influence - Cialdini
Reciprocity Authority
If we supported or given to someone in the We are more influenced by people in authority
past they will feel the need help us now due to respect and trust in their role
Commitment/Consistency Scarcity
People who have supported something in People will want something more if they are
the past will find it hard to stop supporting afraid to miss out
it now
Social proof
The opinion of other people affect and
influence us
Liking
We are more influenced by people that we
personal like
68
Negotiation
1. Prenegotiation
- establish negotiation team
- establish desired timescale for negotiation/resolution
- assess likely aims/position of counterparty
- identify own aims and position (must-haves, nice-to-haves)
- develop support for position (arguments, data, stakeholders)
- plan structure of proposals
- frame negotiation issues with counterparty
- agree negotiation mechanism with counterparty (location, participants, aims, rounds & pathways)
2. Negotiation
- identify areas of agreement and disagreement
- establish aims and argument/justification of counterparty
- probe counterparty for areas of concession, weakness & poor logic
- identify blockages to disagreement and seek to resolve
3. Post-negotiation
- resolve formal written statement of agreement
- plan implementation
- agree follow up meetings/communication to maintain relationship
69
Types of Conflict
Vertical HQ
Power and status: ones
at bottom jealous of ones Finance
at top
Function
Ideology: different
values eg bottom focus
on customer but top Division Division Division
focus on profit A B C
Distance: ones at
bottom feel isolated in
big organisation
Scare resources: ones
Horizontal
at bottom think the top is Goal incompatibility: want different things or competing for
a waste of resources same thing
Task interdependence: one feels let down by the other
Reward system: one can only benefit at the expense of the
other
Environment: all are under pressure
Group loyalty/differentiation: group needs to have an
enemy
70
Managing Conflict
Conflict reduction
o Build on areas of agreement
o Negotiation
o Have third-party mediators
Conflict resolution
o Eliminate root causes of conflict
o Find benefits for both sides in collaboration
71
Change Management
72
Impacts of Change
Changes to job roles Disagreement with change
o Less jobs/more jobs o Not necessary
o New duties and skills o Wrong reasons
o Different hours of work o Will not work
o Less/greater responsibility
Conflict
Changes to teams o Fight for available jobs
o Loss of workmates o Fight for status and power
o New leaders o Attempts to disrupt the change
o New team members
New skills
o Old skills may be unwanted
o New skills needed
73
Resistance to Change
Misunderstanding
74
Types of change
Transformation: fundamental
change in culture and beliefs
75
Ice Cube Model (3 step model)
Stages in a planned approach to change The way
things are
done and
Announce change
what is
Explain reasons
Set timetable acceptable
Show effects/benefits
Give training Explain process and steps
Change job roles
Introduce new Staff learn to live with
systems/procedures change
Procedures/systems
Team grow to like changed modified following feedback
situation
Team wants to make the Change fully implemented
change a success
Changed system now
business as usual
Kurt Lewin Payments based on it
Recruitment based on it
76
Further Approaches
77
Change Management
78
Projects
Characteristics of a project
A unique undertaking
79
Project Constraints
80
Project Life Cycle
81
Stage 1 Project Initiation
1. Identification/realisation of a need
2. Feasibility study/assessment
3. Risk assessment
82
Feasibility Assessment
Business feasibility Technological feasibility
Social feasibility
Stakeholder support/reaction
83
Feasibility Assessment
Steps in Project Risk Assessment
Previous experience of similar projects Low impact x low likelihood = low risk
Identify potential impact of each risk 5. Set up ways to monitor risk during project
Incident logs
84
Risk Management
Transfer risk
Likelihood
Low High Insure
Avoid risk
Reduce risk
Transfer Avoid
Improve controls
Accept/absorb risk
85
Project Team
86
Skills of a Project Manager
Stakeholder awareness
Team leadership
Persuasion Expert knowledge
Communication Time management
Negotiation Personal resilience
Conflict management Problem solving
87