bfbm(13-2016) doing business differently
TRANSCRIPT
Prof.Dr.Aung Tun Thet
Great Companie
s Think Differentl
y
Business
• Sole purpose to make money - more the better• Narrow image• Focus on maximizing short-term profits • Delivering returns to shareholders• Decisions expressed in financial terms
Business
• Sole purpose to make money - more the better• Narrow image• Focus on maximizing short-term profits • Delivering returns to shareholders• Decisions expressed in financial terms• Lopsided logic
Business
• Command resources that influence world for better or worse • Strategies shape lives of employees, partners,
and consumers
Great Business
• Intrinsic part of society• Make money• How • Enduring institutions• Invest in future • Build people and society
Great Business
• Different logic• Social or institutional• Firms, society and people not afterthoughts • Core to purpose
Institutional Logic
• Companies more than generating money• Vehicles for accomplishing societal purposes • Providing meaningful livelihoods
Institutional Logic
• Value measured not just in terms of short-term profits or paychecks • Also in terms of how it flourish over time• Build enduring institutions
Institutional Logic
• Use societal value and human values as decision-making criteria• Corporations have purpose
Institutional Logic• Meet stakeholders’ needs • Produce goods and services that improve lives of
users• Provide jobs • Enhance workers’ quality of life• Develop strong network of suppliers and business
partners;• Ensure financial viability
Corporate Leaders• Define firm around purpose and values• Produce societal value• Balance public interest with financial returns
Great Companies• Expand investments to include:• Employee empowerment• Emotional engagement• Values-based leadership• Societal contributions
Globalization• Increase speed of change• More competitors from more places produce
surprises and shocks• High premium on innovation• Human imagination, motivation, and
collaboration
Globalization• Aligning corporate objectives with social values
business imperative• Cultural fit and local appropriateness
Corporate Leaders• Builders of social institutions • Institutional logic place alongside economic or
financial logic • Radically change leadership and corporate behavior
Institutional Logic
Six Principles
Institutional Logic
Common Purpose
Long-TermFocus
Emotional Engagem
ent
Partnering with Public
Innovation
Self-Organizat
ion
1. Common Purpose
• Coherent identity• Companies grow, acquire, and divest• Coherence amidst diversity, proclaiming • United for people to rise
1. Common Purpose
• Establishing clear institutional values • PepsiCo “Performance with Purpose”• Shift from “fun for you” to “better for you” to
“good for you”• Institutional grounding - larger than
transactions or business portfolios to provide purpose
1. Common Purpose
• Meaning making central function of leaders• Build and reinforce organizational culture• Name change but identity and purpose live on
2. Long-Term Focus
• Great companies sacrifice short-term financial opportunities if incompatible with institutional values• Invest in human capital • Invested heavily in “emotional integration” -
social bonding and feeling of being “one”
3. Emotional Engagement
• Emotions play major role• Moods contagious – affect absenteeism, health,
and levels of effort and energy• People influence one another
Procter & Gamble
• Purpose, Values, and Principles cornerstone of culture• Evoke strong emotions in employees • Give meaning to company’s brands• Elevated purpose - improving lives of consumers
- into business strategy: improving more lives in more places more completely
Great Companies
• Think of themselves as social institutions• Work emotionally compelling and meaning • Top leaders exemplify and communicate purpose
and values• Everyone owns them• Values embedded in tasks, goals, and
performance standards
4. Partnering with Public
• One paradox of globalization • Need for local connections• Public-private partnerships
5. Innovation
• Attention placed on social needs generate ideas that lead to innovations• Antibacterial concrete• Water-resistant concrete• Road surface material from old tires• Saltwater-resistant concrete
6. Self-Organization
• Employees make choices • Informal relationships• Spontaneous actions
6. Self-Organization
• Knowledge of social structure and informal networks• Closer cross-functional teamwork
6. Self-Organization
• Multidirectional pathways for resource and idea flows• Informal, self-organizing, shape-changing,
and temporary networks more flexible and make connections more quickly• Matrix organizations• Potent force for change
Six Principles
• Interrelated • New kind of capitalism • Win-win opportunities • Creating value for both business and society
Leaders Great Companies
• Tell different story • Produce new models for action • Restore confidence • Change the world
Things Successful 21st
Century Companies
Doing Differently
1. Assume they do not know everything
• Attitude towards knowledge static and closed to outside
• 21st century companies create knowledge by interacting with environment
Involve everyone in improvement work
• In traditional corporations management design and roll out improvements
• In 21st century companies• Everybody
responsible for improvement work
Experiment in Product Development• Traditional corporations • Squeezing out every penny of profit • Know markets they operate in • Excel in existing markets
Experiment in Product Development• Struggle in:• Creating new markets • Creating products that disrupt existing markets
Experiment in Product Development• Cutting-edge companies• Listen to potential customers • Explore whole marketplace • Experiment • Find emerging markets • Learn continuously
Experiment in finding new ways of working
• Traditional corporations • Apply best practices • Compliance
Experiment in finding new ways of working
• Cutting-edge companies • Discover next practices• Experiment• Adaptability
Experiment with management and
organization• Traditional corporations• Structure ever-present• Below C-suite level• Very little changed in how work actually done
Experiment with management and
organization• Cutting-edge companies• Role of management, organizational structures
and C-suite questioned• Experiment
Conclusion
• Experiment defining term • Constantly seek better products and business
models• Better ways of working and better ways of
organizing • Maximize impact
Nine Things Highly
Successful Business Do Differently
9 Things
1. Forget about state of economy
2. Offer something new3. Stop guessing4. Embrace technology5. Build list
6. Provide value7. Embrace mixed
media marketing8. Keep learning9.Stop doing it all
yourself
Corporations Doing Things Differently in
Good Way
GOOGLE• Most widely used and
recognized brand on planet• Innovative marketing
strategies • Insanely popular search
engine• Embedded itself into pop
and business cultures
GOOGLE• Noteworthy for working
environment• Employees have flexible
workdays• Foster responsibility and
creativity• Forward-thinking work
environment
APPLE
• Most dazzling and innovative company in history • Most innovative company in
the world every year since 2005
APPLE
• Steve Jobs’ volatile temperament• Pursuit of perfection• Beautiful, elegantly-
designed and intuitive products
APPLE
• Created ultimate in user experience • Putting out quality products • “Pushing the envelope”• Giving people tools they didn’t
even realize they wanted!
AMAZON
• Revolutionized publishing industry• Kindle e-reader line • Low-cost, easy-to-purchase
options
AMAZON
• Push own limits • New ways to innovate• Jeff Bezo willing to try and
invent
UBER
• Much-needed alternative to regular taxi transportation• Users download Uber app• Put in credit or debit card
information
UBER
• Requesting taxis immediately • Search for drivers • Offer different car styles• Cheapest (comfortable) option• Simplicity and ease of
process brilliant
Thank You!