MBA 755-Reflections on Module 1 Concepts

What’s distinctive about the renewal stage of the organizational lifecycle?

The renewal stage is the “point of no return” for a business. It will either renew and reinvigorate or it will move into decline and closure.

What organizations that you are familiar with seem to be in the renewal stage? Why do you think so?

SBC/AT&T is a prime example. Many years ago, the telephone industry was broken up by the government and “Ma Bell” ended up being a series of independent, regional telephone service providers. In recent years, after a series of mergers and buyouts, SBC has now become known as AT&T. The old telephone service of days gone by is no longer viable. Through all these mergers, the “new” AT&T has added services to stay competitive with cable companies, who are now offering their own phone service. The “new” AT&T offers the ability to purchase home phone service, long distance phone service, cellular (formerly Cingular), and television (currently via Dish Network). They are also experimenting in some markets with fiber optic television delivery. This company shows definite signs of renewal in trying to adapt to meet the needs of the day.

What characteristics make a leader effective during this phase?

The leaders in this phase are strong decision makers. They know how to make the tough decisions that have to be made in order to move forward. Another important aspect of these leaders is that they are able to pull the company together. They are effective at communicating the news needed but keeping everyone focused on what needs to be done.

How would you recognize an organization in this stage?

Age is one factor. A review of product offerings/markets can also tell you if products are being renewed or declining.

Which of the conceptual tools for renewal presented in this module are of particular interest to you? Why?

I will have to research this question more. I’m not sure what “conceptual tools” this is referring to.

What else do you think that you will need to know in order to use these conceptual tools in your own work?

See previous question.

How could you use the ideas from the renewal stage to help you in your professional life?

My current business is one that is moving into the renewal phase. The ideas that we will review during this segment will be beneficial to help me understand what to watch for in our business. It should also allow me to make more educated decisions as to product design and marketing ideas that I have input on.

September 30, 2007 | Filed Under MBA 755 | 1 Comment 

MBA 745 - Reflections on Module 5 Concepts

How comfortable are you as a leader in a mature organization?

I have more comfort in this level than some of the earlier ones. The mature organization requires more creative thinking on the part of the leader. Just like in the creation phase, which is probably my strongest phase, the ability to create solutions for the changing marketplace will drive the business further. At the mature point, though, there is a need for a little more organizational skills to manage the day-to-day of an aging business. That’s where my challenge comes in.

Did you feel that you could concentrate on improving efficiencies while remaining flexible to the ideas of your team members?

In general, yes. Our team was fairly supportive of one another’s ideas, so it wasn’t hard to focus on keeping our company efficient. Our business approach was to be the best cost provider. We focused our R&D monies into driving down our production costs while still maintaining the product the customer wanted. In the end, it proved to be the winning strategy.

Are you attempting to expand your knowledge base with or increase your depth in the focus you select to study?

Yes. I actually spent some time interviewing a person in the field about a week ago to gain more direction. I’m finding that there’s a lot of “directional” opportunity that needs to be researched more. In other words, once into the field, there are many directions that a person can choose to go.

September 16, 2007 | Filed Under MBA 745 | Leave a Comment 

MBA 745 - Reflections on Module 4 Concepts

What is your belief concerning one person performing the multiple roles of creator, accelerator, and sustainer? Do you feel you are capable of performing all of these roles? If not, which do you think fits you best?

I believe that one person can indeed perform these multiple roles, but it may not always be advantageous. In fact, it could be detrimental. Take Walt Disney, for example. Upon his death, the creative genius behind the Disney Company was gone. Disney struggled for years to try and recover after this loss. I think I could perform all these roles if necessary, but I would try and find someone to assist if t all possible. My strength is in the creative portions of the business, therefore creator and also sustainer are my best areas.

Do you think it is possible to avoid making the decision of whether to rejuvenate the business or close it, indefinitely? If so, how? If not, why?

While it might be possible, it is not recommended. It is my opinion that putting the decision off will just force the company into a decision. If a company is failing, putting off the decision to close just delays the inevitable. Most good business owners know when to “cut their losses” and move on.

September 9, 2007 | Filed Under MBA 745 | Leave a Comment 

MBA 745 - Reflections on Module 3 Concepts

In mature organizations, there is quite often a need to reduce labor surpluses. What would you suggest as other means by which to accomplish this objective rather than with layoffs?

One of the frequently used methods is to try and take advantage of natural attrition. When an employee is let go due to poor performance, a person quits their position, or someone retires, the company can choose to not replace the outgoing employee. This can cause additional workload on remaining employees, but if managed properly, this can become an efficient method of cost cutting without mass layoffs.

If by chance your mature organization established a “no layoff” policy, what advantages would this provide the company? Are there disadvantages? Which would you advocate and why?

No layoff policies may be great at improving morale. The challenge is that something of this nature can hinder the company when push comes to shove. Not having the ability to layoff employees may require cost cutting measures in other areas that could affect quality. It could also require complete termination of positions. I think that companies should not create such a bind as this policy would create. They should look at methods of incentives for employees to keep them besides guaranteeing them no layoffs will take place.

We know that fast growing companies need more working capital than those growing more slowly or not at all, as in mature companies. What strategy would you use to ensure sources of cash as incoming cash flow is delayed, and fixed costs continue, and paydays come every week?

Companies that are well established are often in strong cash positions and low in debt. It is possible that the company might establish short term debt instruments in order to maintain payroll or paying suppliers when cash flow runs low. The best position is to try and establish a cash position that will always meet operational overhead expenses for at least one to two months. This allows for customer invoicing to be received and replenish the cash hoppers.

September 2, 2007 | Filed Under MBA 745 | Leave a Comment