© 2007 john wiley & sons chapter 15 - organizational issues ppt 15-1 from silos to synergy—...

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Chapter 15 - Organizational Issues PPT 15-1

From Silos to Synergy—Harnessing the Organization

Chapter Fifteen

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.

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USCopiers Sales Advertising

Sponsorship Digital

Functional Silos

France

MedicalImaging

Projectors

HDTV

Far East Africa

Product Silos Country Silos

The Silo World

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Silo-Driven Problems

Misallocation of marketing resources

Silo-spanning brandslack clarity & linkage

Silo-spanning offerings & programs are missed or mishandled

Marketing management competence is diffused

Success is not leveraged across silos

Communication and cooperation weak

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A Framework for Analyzing Organizations

Figure 15.2

People Structure

Systems Culture

People Structure

Systems Culture

External AnalysisExternal Analysis

StrategyStrategy

Internal AnalysisInternal Analysis

PerformancePerformance

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Obtaining Information about Organizational Components

Structure

• 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?

Figure 15.3

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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 do product and information flow?

Figure 15.3

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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?

Figure 15.3

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SharedValuesSharedValues

Norms of BehaviorNorms of Behavior

Symbols andSymbolic Action

Symbols andSymbolic Action

Organizational Culture

Figure 15.3

OrganizationalCulture

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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?

Figure 15.3

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Silo Spanning Objectives

Dysfunctional objectives

Centralize Standardize Reduce the number of

divisions or agencies

Appropriate objectives— to improve

Silo-spanningprograms & offerings

Brand consistency & linkage Resource allocation Marketing competence Communication & cooperation

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The CMO—On Getting Traction

• Get the CEO on Board• Get the right people• Cross-silo teams• Get easy wins• Be facilitator/consultant• Engage the business units• Deliver excellence• Balance central opportunities with local needs

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Overview of Strategic Market Management

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A Business StrategyA Business Strategy

Where to CompeteThe product-market investment decision

How to CompeteValue Assets & Function area

proposition competencies strategies and programs

A Business Strategy

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Overview of Strategic Market Management

External Analysis• Customer Analysis• Competitor Analysis• Market/submarket Analysis• Environmental Analysis

Internal Analysis• Performance Analysis• Determinants of strategic options

Strategic Analysis OutputsStrategic Analysis Outputs

Strategy Identification, Selection, and Implementation

Strategy Identification, Selection, and Implementation

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Strategy Development: A Discussion Agenda

Customer Analysis Who are the major segments? What are their motivations and unmet needs?

Figure 15.5

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Strategy Development:A Discussion Agenda

Competitor Analysis Who are the existing and potential competitors? What strategic groups can be identified? What are their sales, share, and profits? What are the growth trends? What are their strengths, weaknesses, and strategies?

Figure 15.5

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Market Analysis How attractive is the market or industry and its submarkets? What are the forces reducing profitability in the market,

entry and exist barriers, growth projections, coststructures, and profitability prospects?

What are the alternative distribution channels

and their relative strengths? What industry trends are significant to strategy? What are the current and future key success factors?


Figure 15.5

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Environmental Analysis What environmental threats, opportunities,

and trends exist? What are the major strategic uncertainties

and information need areas? What scenarios can be conceived?

Figure 15.5

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Internal Analysis What are our costs, strategy, performance, points of

differentiation, strengths, weaknesses, strategic problemsand culture?

What is our existing business portfolio? What has been our level of investment in our various

product markets?

Figure 15.5

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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?

Figure 15.5

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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?

Figure 15.5

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Figure 16.5

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Competitor Analysis Who are the existing and potential competitors? What strategic groups can be identified? What are their sales, share, and profits? What are the growth trends? What are their strengths, weaknesses, and strategies?

Figure 16.5

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Market Analysis How attractive is the market or industry and its submarkets? What are the forces reducing profitability in the market,

entry and exist barriers, growth projections, cost structures, and profitability prospects?

What are the alternative distribution channelsand their relative strengths?

What industry trends are significant to strategy? What are the current and future key success factors?


Figure 16.5

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Environmental Analysis What environmental threats, opportunities,

and trends exist? What are the major strategic uncertainties

and information need areas? What scenarios can be conceived?

Figure 16.5

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Internal Analysis What are our costs, strategy, performance, points of

differentiation, strengths, weaknesses, strategic problemsand culture?

What is our existing business portfolio? What has been our level of investment in our various

product markets?

Figure 16.5

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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?

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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?

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Growth Strategies

• Energize the business

• Leverage the business

• Enter new business product/markets

• Go Global

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Why Strategic Market Management?

• Precipitate the consideration of strategic choices.

• Help a business cope with change.

• Force a long-range view.

• 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.

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Key Learnings

• 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 do 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.

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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).

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“All progress is initiated by challenging current conceptions and executed by

supplanting existing institutions.”

- George Bernard Shaw

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“Those that implement the plans must make the plans.”

- Patrick Hagerty,Texas Instruments

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“This report, by its very length, defends itself against the risk of being

read.”

- Winston Churchill

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“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.”

- Lee Iacocca

© 2007 john wiley & sons chapter 15 - organizational issues ppt 15-1 from silos to synergy—...

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