43. EFFECTIVE DECISIONS “Executives are not paid for doing things they like to do. They are paid for getting the right things done - most of all in their specific task, the making of effective decisions.”
The first five are tangible The last three are intangible Must set goals for all eight Must also consider the time frame
Unique Production House, building, aircraft carrier, power plant Mass Prod. – Old Style Uniform production “Any color as long as it is black” Mass Prod. – New Style Use uniform parts to create diversified products – current cars Process Production Oil refinery Different Mgmt principles are required for the three types of production, and the firm will maximize output only if it understands the principles that relate to its method of production
Doing an excellent job is good But managers must not lose sight of the big picture Too many managers say that there job is Managing the engineering staff, or supervising the accounting staff The response needs to be “I am helping the company’s engineers satisfy customer needs and wants” “I am providing financial information to top mgmt so they can make good decisions”
Usually prepared and reviewed annually “The greatest advantage of MBO is that it makes it possible for a manager to control his own performance. Self Control means stronger motivation – a desire to do the best rather than just enough to get by” The hand out is of this Chapter, and also mentions GE’s traveling auditors
Dan Schaeffer probably should read the section on the relationship between the CEO and the Board GE has Crotonville and the New Manager Development Course
“ The most mature and most cogent statement on Scientific Management is still the testimony Taylor gave before the House of Representatives in 1912.” LWS - Foreman has the toughest job. Workers view him as mgmt. Mgmt views him as a worker
A mission stmt has to focus on what the instituion really tries to do, and then do it so that everybody in the organization can say, “This is my contribution to the goal” Mission for an emergency room “To give assurance to the afflicted” Mission involves hard choices – Needs are unlimited Must always be ready to innovate How to Pick a Leader What are the strengths (not weaknesses!) of the candidates What is the key challenge of the institution Look at the candidates for character/integrity Girl Scouts Setting Goals Max De Pree Leadership Max De Pree is also a member of the Board of Fuller Theological Seminary
A mission stmt has to focus on what the instituion really tries to do, and then do it so that everybody in the organization can say, “This is my contribution to the goal” Mission for an emergency room “To give assurance to the afflicted” Mission involves hard choices – Needs are unlimited Must always be ready to innovate How to Pick a Leader What are the strengths (not weaknesses!) of the candidates What is the key challenge of the institution Look at the candidates for character/integrity Girl Scouts Setting Goals Max De Pree Leadership Max De Pree is also a member of the Board of Fuller Theological Seminary
Napoleon said that to wage a war you need three things Money, money, money Mission and plans are good intentions But need strategies to convert what you want to do into accomplishments. Strategy Clearly define a Goal That goal must be converted into specific results, specific targets, specific audience, specific market area Develop marketing plans and efforts Communication and training Logistics – What resources are required? When and How will you measure results Northwestern Defining the Market Amer Heart Assoc Building the Donor Constituency Amer Heart Assoc says that have different marketing campaigns for different neighborhoods
Basic Dos and Donts Dissent is Essential; Feuding and Bickering is Not Don’t tolerate discourtesy Do build the organization around information and communication Do take responsibility for upward communication Do build mutual trust Standard Setting Placement and Appraisal Do have an Outside Focus Effective Decisions Opportunity vs. Risk Need For Dissent “ If we always both agree, one of us is not needed” Conflict Resolution MARY PARKER FOLLETT From Decision to Action
The Effective Board Tell the Board 110% of the Bad News, 90% of the Good News
What do you want to be remembered for Read about Joseph Schumpeter on page 202