Revolution at Oticon A/S

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NORWEGIAN SCHOOL of MANAGEMENT
Full Time MBA Program - Leadership 2
Autumn 1999
Professor Mark P. Kriger
Office: 32-20
Office Hours: Wednesdays 13:00 - 14:30 and by appointment
Phone: 67-55-72-67
COURSE MATERIALS
1) ** Iverson, K. Plain Talk: Lessons from a Business Maverick, John Wiley, Inc., 1998.
2) ** Beckhard, R. & R.T. Harris, Organizational Transitions: Managing Complex
Change, 2nd edition, 1987. (B&H)
3) ** Kouzes, J.M. & B.Z. Posner, The Leadership Challenge: How to Keep Getting
Extraordinary Things Done in Organizations, 1995. (K&P).
4) Leavitt, Pondy, & Boje, Readings in Managerial Psychology, 4th ed., 1989. (LPB)
(from Leadership 1) . – selected portions
5) Mintzberg, H. Structure in Fives: Designing Effective Organizations, 1993. (from
Leadership 1)
.
Cases and Reprints:
 Fred Henderson - HBS Case #480-043
 Renn Zaphiropoulos - HBS Case #480-044
 Donna Dubinsky and Apple Computer, Inc. (A) - HBS Case #9-486-083
 Revolution at Oticon A/S (A) - ECCH #494-016-1
 Cray Research, Inc. - HBS Case #385-011
 The Body Shop International - HBS Case #392-032
 "Managing Your Boss,"Gabarro & Kotter, HBR reprint #80104.
 “Leading Change: Why Transformation Efforts Fail,” Kotter, HBR reprint #95204
 "The Hidden Side of Organizational Leadership," L.B. Barnes & M.P. Kriger, SMR.
 “Making Sense of Managerial Wisdom,” by L. Malan & M.P. Kriger, JMI.
**
= Need to purchase.
COURSE CONTENT
Leadership 2 builds on Leadership 1, but emphasizes more the issues involved in realizing
and implementing change in organizations through and with others. The focus is both on
organizational change and on getting things done. An overall strategic perspective is present
in Leadership 2 in terms of the organizational level change focus as well as the means for
creating organizational adaptation and flexibility.
The aims of Leadership 2 are: (1) to understand the challenges facing leaders and managers
engaged in efforts of organizational change and transformation; (2) to develop leadership
skills for the implementation of change in organizations; (3) to learn how to perform
organizational assessments oriented towards change; and (4) to learn how to generate and to
defend detailed action plans.
This course is designed to increase your ability to perform strategic assessments for an
institution, (or a division or unit within an institution.) This includes: (1) being able to sort
out (from the available information) the important from the not-so-important; (2) being able
to articulate and be explicit about action alternatives; and (3) being able to put it all together
into a course of action which describes not only what to do but also how to do it and when.
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To achieve these objectives, the course is designed as an integrative course; that is, it will
encourage you to keep in mind and draw upon all the functional areas: marketing,
accounting, finance, operations management, management information systems, human
resource management, and organizational behavior. Our focus will be on the leadership
skills, tools, and vantage-point needed to effect change in organizations.
GRADED ASSIGNMENTS
There will be two written case analyses and a final term paper. The due dates for the written
assignments are noted below in this syllabus. Grading will be: 1) 20% for each of the two
case analyses, 2) 40% for the final leadership/ change paper (written in groups), and 3) 20%
for class participation. I will attempt to grade every student on participation each class. High
quality preparation for class and intelligent, active participation is expected. I will also
attempt to give priority to first-time contributors at each session, and to keep any individuals
from dominating the class sessions.
LEARNING OBJECTIVES
You are expected to leave the course able to analyze complex organizational situations and
create detailed recommendations for action. The course learning objectives are:
1. To develop your ability to analyze complex business situations by extracting the
significant factors and relevant data;
2. To further your understanding of both leadership and the role of the leader in change
situations;
3. To develop your skills in presenting business-level analyses and plans of action, both
orally and in writing;
4. To develop your skills in making decisions and achieving results;
5. To increase your understanding of the organizational decision-making process and the
dynamics of organizing with particular emphasis on the potential and limits for achieving
directed change.
METHOD
My belief, based on past experience, is that all of you have much to offer. Thus, the structure
of the class will be interactive in nature using a variety of learning methods. Preparation,
analysis, and discussion of cases, readings, and exercises will expose you to the major issues,
problems, challenges, and realities of formulating and implementing organizational level
change strategies. The cases, readings, exercises, and class discussions will build on each
other so that knowledge and skills gained in one topic will be useful later.
CASES
A common reaction to a case is: "I don't feel that I have enough information." Unfortunately,
this will also be true for many of your future "real-world" business decisions as well. You
must still select a course of action. This will require you to make reasonable assumptions.
The class readings, discussions with classmates, prior courses, and a lot of reflective thinking
will help. Unless requested to do so, you are not to collect information about a company,
situation, or industry beyond what is in the case.
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The following list of questions can help you check the logic of your analysis and
recommendations in preparing a case for class or a paper:
1. Have I identified the major issues?
2. Are my assessments accurate?
3. Are my recommendations relevant to desired goals and objectives?
4. Is the solution feasible given available resources and time constraints?
5. Is there consistency between the analysis and recommendations?
6. Are my assumptions reasonable?
7. Are the time sequence and priorities realistic?
8. Are there contingencies for undesirable or difficult to predict events?
9. What is the likelihood of the solution being accomplished?
10. Is there an appropriate balance between reward and risk?
* 11. Have I used theories and frameworks to deepen my analysis and reasoning?
* 12. Is there a good balance between depth and breadth of analysis and ideas?
* = Pay especial attention to these.
CLASS CONTRIBUTION
The class discussions will allow for further development of your analysis and
recommendations. In active discussion of cases in class this course is intended to be different
from some of your other courses; it is meant to be more open-ended and inductive. Keeping
this in mind, you should feel free to challenge others, defend your point of view, and seek
advice when necessary. The instructor will often be mainly a discussion leader whose major
role is to orchestrate the flow of discussion and to record the comments and debate.
Solutions of class members may differ considerably and yet all be reasonable.
Evaluation by the instructor will be based on the extent to which your oral contribution assists
the class in its decision-making process, the degree to which you further class discussion
(either by providing a fruitful line of reasoning or by raising key questions), and your
articulation of ideas. You should think the problems through clearly and logically but also
use your intuition and feelings. Quality of contribution, not mere quantity, will be the
criterion. Worthwhile contributions are constructive, well-reasoned, supported by the facts,
and presented in an intelligent, articulate manner.
FINAL PAPER WITH TEAM PRESENTATIONS
Topic: Choose a minimum of five (5) theories, frameworks or theorists from the course
readings. Apply them to an analysis of 1) the proactiveness and effectiveness of leadership
present or lacking and 2) the changes needed in an organization of your choice. Be sure that
there are adequate published sources available on the company and change situation you have
chosen.
Guidelines: The paper should be 12 to 14 pages long, typed and double-spaced with no
smaller than 12 point type and with margins wide enough for me to write in (2.5 cm).
Creation of exhibits which help to integrate your thoughts and findings are encouraged. Be
sure to make assumptions explicit. No more than 40% of the paper should be describing the
situation - the rest should be analysis and recommendations.
The Team Presentations will be on December 8 & 15 and will each be 20 to 25 minutes in
length. All team members are to participate and present.
You may be asked to fill out a group evaluation form which assesses each person’s
contribution to the final group paper. This form will be held confidential between the
evaluator and the instructor though the average of the evaluations for an individual may be
disclosed to the other team members.
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CLASS SCHEDULE
Session/Date
#1
Topic and Assigned Material
13:00-16:00 Wednesday 20/10
Course Overview and Introduction:
The Subtleties of Change and Leadership
Readings:
1. B & H, chap. 1, pp.1-9.
2. Iverson, Introduction, pp. 3-10.
Case: Metcorp A/S
Questions to prepare:
1. What is going on in the case as regards:
a. leadership - who is exercising it, who should be exercising it, and in what ways?
b. effective or ineffective management?
2. Who is at fault and why?
a. Mr. Post?
b. Mr. Manson?
c. Mr. Larsson?
d. The plant managers?
e. The plant purchasing agents?
3. What are the problems facing each of the above?
4. What should Mr. Post do now (at the end of the case)?
5. What should Mr. Manson do?
#2
13:00-16:00 Wednesday 27/10
The Hidden Sides of Leadership
Readings:
1. B & H, chapters 2 - 4: 10-44.
2. Iverson, chapters 1 & 2.
3. Daft & Lengel, chap. 1, pp. 9-28: “Fusion Leadership”
Due: one page proposal of company, leader, and change situation for final paper.
The proposal should address: 1. Why you have chosen the company, leader, and situation for
the final paper; 2. A brief list of sources available from an initial library search.
Case: Fred Henderson
Questions to prepare:
1. What are the key elements in Fred's style? 2. Why does Fred behave the way he does?
3. How effective a leader/ manager is Fred? Why? 4. Would you like to work for Fred?
#3
13:00-16:00 Wed. 03/11
Leadership, Change and Influence
Readings: 1. B & H, chaps. 5 & 6.
2. Iverson, chapters 3 & 4.
3. Malan & Kriger, “Making Sense of Managerial Wisdom”
Case: Renn Zaphiropoulos
Questions to prepare:
1. What are the key elements in Renn's style?
2. Why does Renn behave the way he does?
3. How effective a leader/ manager is Renn? Why?
4. Would you like to work for Renn?
5. What explains the similarities and differences between Fred and Renn as change agents
and as leaders?
6. Who is the better change manager? The better leader?
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#4
13:00-16:00 Wednesday 10/11
Creating Deep Organizational Change
Readings: 1. B & H, chaps. 7 & 8.
2. Iverson, chap. 5 & 6.
3. "Managing Your Boss," HBR reprint
4. "The Hidden Side of Organizational Leadership" by Barnes & Kriger, SMR reprint
Case: Donna Dubinsky (A)
WRITTEN CASE ANALYSIS #1 DUE: 4 pages maximum, typed and double-spaced, plus
a maximum of five (5) exhibits). To be written in pairs or threes.
1. What is your diagnosis of the situation and the strengths and weaknesses of the company
at the time? Why was Dubinsky so successful initially?
2. What are the real problems? Create a Readiness-Capability Assessment Chart (see B&H,
p.63). What are the implications of this chart?
3. What actions should be taken and by whom? Create a Responsibility Chart (see B&H,
p.105).
4. What is your prediction as to what Campbell will decide to do and why?
#5
13:00-16:00 Wednesday 17/11
Leadership and Organizational Vision
Readings: 1. B & H, chaps. 9 & 10.
2. Kotter, “Leading Change: Why Transformation Efforts Fail,” HBR reprint.
3. LPB, 72-87: "On the Folly of Rewarding A, While Hoping for B"
4. Iverson, chapters 7 & 8.
Case: Revolution at Oticon A/S (A): Vision for a Change-Competent Organization
Questions to prepare:
1. What is Kolind's vision? Be as clear as you can.
2. What are the plusses and minusses of Lars Kolind's vision from the standpoint of:
a. the industry and the company as of 1990?
b. your own personal values and preferences for the type of organization you would
like to work in?
3. What is your assessment of Kolind's plan and process to merge the two cultures?
4. Why has the resistance intensified in reaction to Kolind's vision? In what ways is the
restructuring truly radical? Not radical enough?
5. What should Kolind do now (at the end of the case) to:
a. address the current revolt?
b. establish long term health and creativity in Oticon? List specific action steps to be
taken with time frames.
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#6
13:00-16:00 Wednesday 24/11
Leadership and Scenarios for the Future
Readings:
1. Iverson, chapter 9 & Epilogue.
2. Schwartz, “The Pathfinder’s Tale”(pp.3-16) & “Steps to Developing Scenarios” (219-234).
***** APPLIED BOOK REVIEW DUE: (20%) - 5 pages maximum, typed and doublespaced. To be written in pairs. *****
The Iverson book is to be assessed and applied using the following questions as guidelines:
1. How does this book extend thinking and practice in the field of leadership and
organizational change? What are the underlying (implicit) conceptual maps and approaches
taken by the book? Create a theory or framework of organizational effectiveness from the
Nucor case as presented in this book. (2/3)
2. What are the relative strengths and weaknesses of the book? How does this book help you
to be a better leader, manager, or change agent? (1/3)
#7
13:00-16:00 Wednesday 01/12
Organizational Culture and Change
Readings:
1. LPB, 278-296: "The Role of the Founder in Creating Organizational Culture"
2. LPB, 636-654: "Symbols, Patterns, and Settings: An Optimistic Case for Getting Things
Done"
Case: Cray Research, Inc.
1. Assess the strengths and weaknesses of Cray Research's culture, vision, organizational
design and structure.
2. What administrative problems and organizational challenges must be addressed to
maintain their distinctive success and in what time frames?
3. In light of your assessment (items 1 & 2), what are your recommendations to Rollwagen?
#8
13:00-16:00 Wednesday 08/12 Leadership, Values, and Change in the 21st
Century:
Gaining Deep Commitment in Organizations
Readings:
1. LPB, 665-678: "Choosing Strategies for Change"
2. LPB, 224-233: "Leadership is a Language Game"
Presentations by teams
Case: The Body Shop International
1. What is Anita Roddick really trying to accomplish? What is her real aim?
2. How does she and her leadership team achieve such deep commitment?
3. What are your recommendations to Ms. Roddick?
4. How critical is Ms. Roddick to the organization, what is her leadership style (see Figure
2.1 in Fusion Leadership), what do you predict would happen if she left the company?
#9
13:00-16:00 Wednesday 15/12
Leadership & Change Projects
Final Papers due and remaining Presentations by teams
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