SEATTLE UNIVERSITY Executive Leadership Program Effective Enterprises INSTRUCTOR: Greg Magnan, Ph.D. (gmagnan@seattleu.edu) Web page: http://fac-staff.seattleu.edu/gmagnan/ MEETINGS: Pigott 426 / (206) 296-6466 / (fax: (206) 296-2083) December 10, 1999; 4:30 – 5:30 ROOM: January 20/21, 2000; 8:30 – 5:30 February 17, 2000; 8:30 – 5:30 February 18, 2000; 8:30 – 12:00 TBD Course Description This module of the Certificate is directed at providing a forum to discuss business issues and challenges facing the executive team in an organization. We will start from the perspective of the value chain and work our way through various functional topics on through to business strategy. As such, the module will include active learning in the following areas: Roles and responsibilities of general managers Transforming the firm through operational excellence Strategic uses of information technology Marketing / customer focus Managing human resources Minding the numbers, and Addressing political realities This list includes elements from all areas in a business. As firms continue to focus on core competencies, multiple functions in a firm are being asked to fulfill boundary spanning roles and coordinate with suppliers and customers in the supply chain. In addition to internal and external coordination issues, we will also address how changes in a firm’s business environment can affect its ability to remain competitive. Information technology changes and their affects on business strategy and the value chain will be of special interest. We will primarily use the case method to highlight general management issues and challenges. Cases and readings serve as vehicles to introduce complex business issues and provide general frameworks for discussion. In-class discussions are the major learning component in this module. Therefore, students must be prepared for Page 1 case and reading discussions. As in most service encounters, the quality of this service is largely driven by the quality of the “customer’s” contribution. Course Requirements 1. Case Analyses: You are required to turn in a total of two written case analyses. Each is to be doublespaced, no longer than three pages, and should use the format appearing below. Cases are due the day the case is to be discussed. You are allowed (and encouraged) to turn analyses as a small group. At least one of the cases, however, must be completed individually. You may turn in more than two and only the two highest scores will apply. Required Format: Please analyze and write-up cases using the structure outlined below. You may choose to respond as the case principals or as if you are an outside consultant to the case principals. Since you only have three pages, limit the restating of case facts to those that are important to your analysis. Section headings are a must in your analyses (use those in bold below.) 1. Executive Summary: One/two paragraph summary of key issues and recommendations. This should be a one or two (maximum) paragraph summary that can “stand apart” from the rest of the analysis. Write last, put first. NOTE: for the sections below, using a bullet point format is strongly encouraged! 2. 3. 4. 5. 6. • Organizational Profile/Overview: Brief discussion of key elements in case as they relate to your analysis, such as product/services offered, competitive priorities, industry trends, marketing issues, human resource issues, etc. Critical Issue(s): Identification of the major problem(s) and issue(s) present in the case. Alternatives: Identify the feasible solutions or alternatives available to the principals. Include some evaluation or discussion of strengths and weaknesses of each alternative (bullet format is preferable). Recommendation: Selection of preferred action. Action Items: Short list of prioritized action items for principals. Also, a good spot to address potential negative consequences of your recommendation. If appropriate, break list into short- and long-term. Note: In cases with multiple issues, you may prefer to group issue/alternative/recommendation for each issue rather than repeating items. Page 2 • 2. For the written work to be completed individually (except for cases turned in as a group), you are encouraged to discuss issues in the case with your colleagues. Participation: Students are expected to provide insightful input during case and class discussions. This requires having read the chapters, cases and articles prior to class and being prepared to participate in discussions. Contributions that advance the case discussion or build on the work of others will be rewarded. 3. Interview With Senior Executive: Task is to interview senior executive (CEO or directly reports to CEO) outside of your own organization to investigate their leadership style and philosophy. Also, the interview should provide insight in to how that style affects their role in the organization, informs them on ethical issues, and shapes the culture of the organization. Approximately seven teams of three will be formed on 12/10. Each team is expected to select the executive they wish to interview and manage the entire process. Teams will present the information and insights on the morning of our February 18, 2000 session. Presentations will be limited to 20 minutes. Grading Your final course grade will be calculated on the following basis: • • • Written analysis of 2 cases: Team Interview: Contributions to class discussion: 30 % 20 % 50 % A straight grading scale will be used: (A = 95-100, A- = 90-94, B+ = 87-89, B = 83-86, etc.) Page 3 Effective Enterprises (EXLP 511) Tentative Class Schedule Session 1 / Jan 20 / 8:30 AM – 12:00 PM “Enterprises & Value Chains” CASE: Yellowtail Marine, Inc. 1. How should Robyn spend her first hour at Yellowtail? The first day? Beyond? READINGS: Wenner, David L. and Richard W. Leber, “Managing for Shareholder Value—From Top to Bottom,” Harvard Business Review, Nov-Dec, 1989. 1. 2. What is “value”? What is SVA? How can SVA be used to increase value? How might ethical decisions be integrated into SVA? Luehrman, Timothy A., “What’s it Worth? A General Manager’s Guide to Valuation,” Harvard Business Review, May-June, 1997. 1. How are the three resource allocation decisions different? Does it make sense to always use the same tool for different problems? Session 2 / Jan 20 / 1:30 PM – 5:30 PM “Valuation” SPEAKER: Dr. Susan Shevlin, Associate Professor of Accounting, Seattle University, Albers School of Business & Economics: “Financial Statements” READINGS: SEC Chief, “The Numbers Game,” New York, September, 1998. Primary Financial Statements (Harvard Note—this is for reference purposes only and will not be discussed in class.) Gadiesh, Orit and James L. Gilbert, “Profit Pools: A Fresh Look at Strategy,” Harvard Business Review, May-June, 1998. 1. Where are the profit pools in your industry? Who are the players in those pools? Session 3 / Jan 21 / 8:30 AM – 12:00 PM Page 4 “Systems & Supply Chains” In-class Simulation READING: Magretta, Joan, “The Power of Virtual Integration: An Interview with Dell Computer's Michael Dell,” Harvard Business Review, MarchApril, 1998. 1. What does Michael Dell mean by the statement, “If you tried to divide Dell up into a manufacturer and a channel, you’d destroy the company’s unique value”? (p. 84) 2. What is Michael Dell’s role in the company? Session 4 / Jan 21 / 1:30 PM – 5:30 PM “Leading Change” CASE: Granite Rock Company READINGS: Heifetz, R.A. and D.L. Laurie, “The Work of Leadership,” Harvard Business Review, Jan-Feb, 1997. 1. 2. Which of the six principles do you think will be most difficult for leaders to master? Why? How about for you? Which of these principles were used by Bruce at Granite Rock? Kotter, John P., “What Leaders Really Do,” Harvard Business Review, May-June, 1990. 1. How is the job leading different from that of managing? Kotter, John P., “Leading Change: Why Transformation Efforts Fail,” Harvard Business Review, March-April, 1995. Argyris, Chris, “Empowerment: The Emperor’s New Clothes,” Harvard Business Review, May-June, 1998. 1. Does Argyris’ view complement or contradict Kotter? Session 5 / Feb 17 / 8:30 AM – 12:00 PM “Information” Page 5 CASE: Barnes and Noble vs. Amazon.com (A) 1. Who will be the on-line leader? Will they be profitable? READINGS: Ghosh, Shikar, “Making Business Sense of the Internet,” Harvard Business Review, Mar-Apr, 1998. Evans, Phillip and Thomas S. Wurster, “Getting Real about Virtual Commerce,” Harvard Business Review, Nov-Dec, 1999. Session 6 / Feb 17 / 1:30 PM – 5:30 PM “Globalization” SPEAKER: Dr. Barbara Parker, Associate Professor of Management, Seattle University, Albers School of Business & Economics. CASE: Levi Strauss & Global Sourcing (A) 1. READING: Should Levi continue business in China? Haas, Robert, “Values Make the Company: An Interview with Robert Haas,” Harvard Business Review, Sep-Oct, 1990. “Managing Services” CASE: Shouldice Hospital Limited READINGS: Heskett, James L., et al., “Putting the Service Profit Chain to Work,” Harvard Business Review, Mar-Apr, 1994. Session 7 / Feb 18 / 8:30 AM – 12:00 PM Executive Interview Presentations (20 minutes each) Page 6