OUBS MBA Strategy module

In October I completed the Strategy module of the OUBS MBA - very interesting module that stays at a ‘helicopter view’ of organisational strategy. The course uses a Johnson and Scholes model of Analysis, Choice and Implementation as a basis and examines the links between strategy, structure and systems in some detail. The course residential brings this together very well and clarifies how the models may be used to ‘funnel down’ from the analysis to arrive at the issues around implementation. Why such a focus on implementation? I think it’s clear to most of us that CEOs who fail tend to fail on execution not strategy. All strategies work to some extent but a failure to execute is a relatively common problem.

Next course is the ‘Making a Difference’ 12 month module. This new course has received some bad press. The objective is to start with self-analysis as a manager and propose how your strengths and weaknesses can be managed and put to use on a project that will make a difference to your organisation. This type of course addresses the criticism that MBA schools turn out knowledgeable but inexperienced managers - to succeed in this module you have to learn and demonstrate experience. So far I am interested and believe this is a positive subject as part of an MBA

Work 4 hours a week

Interesting article in the IHT on the book by Timothy Ferriss: (http://www.iht.com/articles/2007/11/12/business/workcol13.php). I think the essence of the book calls for us to drop our tech gadgets, ignore email and start calling people on the phone. This idea is not particularly new except that Ferriss believes that he can reduce the work week to 4 hours by this method (http://www.fourhourworkweek.com/). Working as I do in the land of the 35 hour week (theoretically) it is interesting to see hard working Americans taking an interest in this idea. The 4 hour week is taking it too far but it does remind me that I spend a good part of my day on email. The email questions and answers are not wasted time but in part a symptom of functional and global organisational structures. Global processes, a VP in Seattle, colleagues and functional managers based in WA, Iowa, and Singapore etc require this method of working and time zones make using the telephone difficult. However an alternative would be to specialise by site – live by global rules but manage locally and autonomously. Instantly meetings, travel and conferences would reduce freeing us focus on concrete tasks such as product development, sales, marketing and production. This would lead to increases in efficiency. There is a trend in global organisations to move away from global, functional, headquarter based structures to transnational structures with local autonomy. This ‘centres of excellence’ model has recognised advantages - one of which is to reduce dependence on email to get things done.

Corporate Social Responsibility in Indonesia

I read in the WSJ that Indonesia is planning a CSR (Corp Social Responsibility) tax to oblige corporations to pay a certain % of profits or revenue to “good causes”. The view that corporations have such wide responsibilities is increasingly accepted by governments and NGO’s. It takes stakeholder theory to its logical limit: making world citizens all equal stakeholders in every corporation. This is a form of Utopia. Milton Friedman stated in the NYT (1970) that "there is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game”. Yes we are all stakeholders in our corporations but we do not have equal rights. Owners invest in corporations to make a return. The Agent – Principal relationship must be respected. Agents must act in the interests of their Principals or why would the Principals entrust them with their money? To take CSR too far is to risk the basis of investment in private industry and thus the economy itself. Countries (or Governments) such as Indonesia who insist on their rights before those of Principals will find that the latter group may wish to invest elsewhere. Unfortunately the harm that this causes will affect a wide group of stakeholders - the citizens of these countries.