Wednesday, November 28, 2012

A New Strategy on Diversity: Aligning Leadership and Organizational Culture

The Diversity Initiative

Speaking at a National Naval Officers Association Conference, Chief of Naval Operations Admiral Mike Mullen stated "diversity continues to be a leadership issue and critical to the Navy's future success." Everyone is familiar with the traditional challenges of diversity. However, concepts of diversity have evolved from inclusion and tolerance, to managing diversity, and recognizing the link between diversity and the emerging complexity of organizations such as the Navy. "A complex environment is one characterized by multiple critical elements that differ significantly." Complexities such as joint collaborations, emerging technology, and globalization contribute to the challenges of organizational diversity within the Navy. Culture is not created by declaration; it derives from expectations focused on winning. We can only have a culture that encourages performance if we recruit the right people, require them to behave in a way that is consistent with the values the Navy espouses, and implement processes that will allow the Navy to be successful.

Differences of any kind make the task more complex. Differences such as proficiency in the use of technology or differences among warfare communities (i.e. Supply Corps, Aviators, Surface, etc.) will contribute to organizational complexity. If the Navy wishes to remain competitive in this complex environment, we must adopt "complex managerial strategies" drawn from multiple strategies.

A New Strategy on Diversity: Aligning Leadership and Organizational Culture

If we accept that the leader's job is to inspire and support the collective responsibility to create a better future for the Navy, then what are the tools to effectiveness? What characteristics must naval leaders have for this mission? There are key principles we must consider while striving to improve leader-follower relationships. First, organizational design affects culture which in turn impacts strategy formation. Second, leaders must have an understanding of their organization's culture in order to identify the obstacles to effective leadership. Finally, by aligning the Navy's organizational design and diversity strategy with culture leaders can modify their behavioral styles for desired outcomes by utilizing tools that engage sailors. In summary, I will identify obstacles to diversity and measures of effectiveness that commanders can implement to manage diversity.

IMPACT OF ORGANIZATIONAL DESIGN ON DIVERSITY

The task of managing diversity in today's rapidly changing environment is becoming progressively more difficult. Of course increasingly dissimilar kinds of people are entering the Navy and demanding different treatment. But some underlying forces are also present and pushing toward needed unity. Some of the reasons that spurn the need for diversity management include: "misunderstanding or distortion of affirmative action requirements," the expectation that "only one group needs to change," or an "appearance of 'political correctness' that can put off those with differing views."

Though the increased existence of cultural differences within the Navy is a fact, there is also a culture that is already present. The Navy is a subculture of identifiable traditions and a strong national culture. This cultural foundation forms a viable base for mutual action, trust and support. It can help commanders build unity among their sailors. "The reporting relationships, business practices, policies, and even the physical structure of any workplace are based on the cumulative experiences of that organization." The culture we know today is a result of the people who have made up the Navy over time, the larger culture they have created, and the total context in which we operate.

Leadership for diversity is an integrative activity that proposes one value system, one culture, around which many people can gather to accomplish useful results. "[Diversity management] requires the ability to think and act in certain ways, and that is what ensures that it is doable." The Navy must accept the good values and reject those values and behaviors that are undesirable. Many cultures include values, ideals or behavior that work against effective, coordinated performance. While most would agree in that understanding the role of culture and other variables is important in a range of arenas.

However, in practice people often report that they experience "great discomfort when confronted with the need to discuss these issues and even greater discomfort when the discussion leads to an examination of the social inequities that are associated with membership in certain groups." For example, American society typically does not accept cultural values that regard punctuality as unimportant or that condone nepotism; nor does it condone bribery, child labor or a host of other determined values or behaviors. These examples of unacceptable values are inimical to efficient interpersonal relationships.

As more people are entering the Navy with different cultural backgrounds, the pressure is on the corporate culture of the Navy to change. "In an effort to recruit and keep top-tier employees of all races and both genders, Fortune 500 companies have begun to address diversity issues in the workplace." Established business expectations, rites and rituals will have to be altered for the new but different sailor; and some of the present cultural systems may need to be discarded. Navy leaders have a special responsibility with regards to diversity. "Not only must you develop yourself to handle the many diverse situations that occur in the workplace, you also are called upon to be a diversity leader-- to help create a climate that values diversity, fairness, and inclusion." As the Navy continues its transformation into the 21 century, leaders must consider how diversity will affect our strategic planning and policies.

IMPACT OF DIVERSITY ON STRATEGY FORMATION

The most important attribute of any planning team is its diversity. This diversity, however, is not about being politically correct or sensitive to a broad representation of sailors. The impact of diversity on strategy formation is not just to avoid age or gender discrimination lawsuits. Successful strategic planning depends on the team's ability to ask new questions, perceive new insights, and imagine new solutions. It's difficult for a group of individuals who share similar backgrounds, thinking styles, and experiences to think new thoughts. "Strategy innovation is a creative process, with a goal to identify markets, products, and business models that may not yet exist."

"A lack of genuine diversity may be the biggest obstacle to improved performance within the [Navy]." If wardrooms are full of too many similar people, from similar backgrounds, who have ascended through similar routes then our diversity strategy is bound for failure. "The best ways for any organization to affirm that it has sufficient diversity is to ensure that the top management team is comprised of individuals with varied sets of skills."

ALIGNING STRATEGY & DESIGN WITH CULTURE

The Navy must create a new value system that supersedes values that are now inappropriate due to increased diversity. Of course all Americans should be open to new values and alternative ways to behave. But we need to match these alternative prospects with what we have now and only change when we are sure the change will add to the organizational design - new visions and values should not take us away from clear societal goals. Naval leaders must be in the vanguard of this change. They shape new cultures and redefine what's acceptable within the Navy and for their sailors.
The goal of the Navy's new Diversity initiative is about drawing the best talent from all aspect of American culture.

The Navy's diversity initiative provides a strategic framework that is broken down into four areas; recruiting - who the Navy brings in; training and development - how the Navy instills values; organizational alignment - how the Navy continues the momentum of cultural change; and communications - how the Navy informs the fleet of where we're headed. Admiral Mike Mullen's address during the Total Force Diversity Day made it clear that the importance of diversity at every level in the Navy is a "strategic imperative" and reminded the attendees that the Navy is engaged around the globe. His efforts remind us that the Navy's diversity strategy rests on the shoulders of our leaders and will only be as strong as their capacity to strive for successful results.

LEADERSHIP BEHAVIORS FOR DESIRED OUTCOMES

Two Scholars on leadership, James Kouzes and Barry Posner, conducted research on follower expectations by surveying thousands of business and government executives. They asked open-ended questions such as "What values do you look for and admire in your leader?" Four characteristics have consistently stood out among the rest: honesty, vision, competence, and inspiration. Leaders need to develop skills in accepting and using different people and methods to add to the Navy's capacity to survive in a growing and increasingly complex world. We need to suppress feelings of fear and antagonism and increase the capacity to accept differences. Most importantly, we need to be proactive in seeking leadership training in situations of cultural diversity.

Honesty

"It's clear that if people anywhere are to willingly follow someone - whether it be into battle or into the boardroom, the front office or the front lines - they first want to assure themselves that the person is worthy of their trust." Creating and maintaining a culture conducive of trust is becoming more difficult today. The character of the Navy is changing: becoming more diverse and less harmonious. The people coming into our organizations enter with different values and customs. These cultural differences in the people making up the Navy pose major problems in developing a culture of trust. Diversity itself makes the task of developing leadership more difficult.

Every sailor must put off falsehood and speak truthfully, "for we are all members of one body." Honesty is achieved through Discretion and truthfulness. Discretion keeps our minds and focus on sound judgment, giving serious attention and thought to what is going on. It will carefully choose our words, attitudes, and actions to be right for any given situation, thus avoiding words and actions that could result in adverse consequences. Truthfulness means being straight with others and doing what is right. "It's after we have contemplated our own actions, measuring how they align with our values, intentions, and words, that we are most likely to make a contribution of integrity to the world."

Forward-Looking

From an organizational perspective, "leaders need to continually put the vision and mission (related to the purpose) in front of followers." Sailors must understand the organization's vision and know their role in support of the mission. Sailors expect leaders to have a "sense of direction and concern" for the future of the Navy. The leader's role is to build a team out of different individuals. We distinguish leaders by the fact that they provide the vision around which group consensus can be sought. Leaders can lead only united, compatible colleagues who, in essence, volunteer to accept the leader's values and methods. This is contrary to the prevalent view that a consensus-seeking process can ascertain vision. Common visions result from articulation by one person of ideals that the larger group can come to accept. The growing diversity in the Navy challenges the leader's ability to lead "unless he or she can induce increasingly diverse people to accept common values, one vision and similar perspectives."

Competence

Leadership is more than commanding authority and giving orders, it is people who understand and practice the art of listening and who make building trust a priority. In order to assure a productive work environment where sailors take responsibility, Navy leaders must posses and effectively demonstrate competence. Competent leaders have the ability to bring out the best in others. To enlist in another's cause, sailors must believe that the person is competent and able to guide us in the right direction. "We must see the leader as capable and effective."

Inspiration

Inspiration is the psychological feature that arouses someone to take action toward a desired goal. "Inspiring Leadership speaks to our need to have meaning and purpose in our lives." Stimulation of the mind (spiritually and emotionally) to a high level of feeling or activity can only be accomplished through inspiration. Commanders can inspire sailors by relying not on their own understanding but rather on something greater than themselves. As the Apostle Paul declared "... we speak, not in the words which man's wisdom teacheth, but which the Holy Ghost teacheth; comparing spiritual things with spiritual."

Commanders inspire commitment by looking inward first, becoming aware of how they feel, and communicating a personal vision of the future based on personal knowledge of the past and realistic experience in the present. Focusing on the themes of your own consciousness should be what really drives leaders. "Leaders who develop their message only on the basis of what others might want invariably play to others and only try to please them." Reactions to leaders will be different depending on the focus of the communication. If leaders only perform to others' standards, sailors may be entertained, but if leaders communicate with authentic passion, sailors will respond with excitement and grasp a new and real possibility from an authentic experience.

Dynamics of Diversity

The success of the Navy's increased efforts in diversity will require a firm understanding of the dynamics of diversity. Many diversity strategies are successful because they take into account the 'Dynamics' that contribute to the need for diversity management programs. The merging of job ratings, problems with co-workers, and technology can contribute to dynamics.

Technology, for example, allows the Navy to operate globally with coalition forces, but the sailors must become adept in dealing with cultural differences without non-verbal cues provided by face-to-face communications received by liaison officers. The relevance of diversity management initiatives also affects these dynamics. Different corporate or social cultures must co-exist - such as one group with the same functional expertise of a merged job rating seeks dominance of those who are skilled in other fields, resulting in talent mass exodus. The dynamics of diversity has made it increasingly important for the Navy not only to "minimize cultural errors but also to understand and work with people of various backgrounds."

Champions of Diversity

Because of the nature of hierarchy and use of power and authority within the Navy, the process of managing diversity must begin at the top. Seeing a direct relationship between diversity and mission readiness, former Chief of Naval Operations Admiral Vern Clark expanded the traditional Navy's focus of diversity beyond race and gender, and folded in a "Sailor's creativity, culture, ethnicity, religion, skills and talents." As managing diversity moves to the forefront of the Navy's organizational development, processes must be developed that allow the commitments to become institutionalized within the organizational structure. Efforts devoted to education and awareness must be closely followed by processes that create systematic change. One recommended model is "champion of diversity model". Under this model, the Navy would identify the elements of the culture and climate that leads to the development of an educated, committed, and systematically supported group of Navy leaders of the diversity change process. Whether it is education, training, or simple awareness Navy leaders have to 'champion' diversity.

MEASURE WHAT MATTERS

Diversity Management is about how we make decisions in situations where there are critical differences, similarities, and tensions. Roosevelt Thomas, author of Building on the Promise of Diversity, identified three critical questions that will help any organization in the journey towards diversity. First, what is a quality decision? A "quality decision", according to Thomas, is one that helps to accomplish three important goals: mission, vision, and strategy. Second, what constitutes significant differences, similarities, and tensions? Another way of asking this question is how do leaders know what mixture if diverse? Are we concerned about race, gender, ethnicity, geographic origin, religion? How do leaders know what level of diversity is right for their organization? We can't tell just by looking at people. We must first specify which dimensions we consider significant. And for every significant dimension, the first core question should be how different or similar are the members of the mixture? Leaders must know what mixture they currently have and identify which dimensions are important. The third question Thomas suggested is: Where could we use "strategic diversity management?" Once leaders have identified the potential gaps, they can then begin to recruit to fill them.

The Chief of Naval Personnel stood up the "Fleet Diversity Council" which meets semi-annually to discuss the diversity strategy for our sailors and civilian employees. It provides a forum for unfiltered dialogue about diversity related initiatives and issues and whether or not they are working. The council provides feedback to the Chief of Naval Operations as well as communications to the fleet. Throughout this I've made it clear that diversity is a leadership issue. This is largely due to both the wide variety of diversity that there is in the Navy, and the impact that diversity can have on so many aspects of organizational and individual behavior. However, this does not remove the responsibility from individual sailors nor the requirement for life long learning.

We've Still Got a Lot to Learn

My experience of diversity training has often been that people attend such training with the view that there is little that they can learn about diversity. So there is a challenge to us all to assess what we still have to learn about diversity and to meet that challenge with openness and a willingness to learn. "People will only effectively learn about diversity if they are prepared to take risks in their learning." It is not a comfortable feeling to learn that we have prejudices we need to deal with. It is not easy to find that our own view of the world is just one of many, and those other views are equally valid. We all have a great deal to learn about diversity. Not just a better understanding of the reality of diversity in the Navy, but also the issues that this raises. If our Navy is to be a reflection of our society, then naval leaders must strive to understand the reality of diversity in our society as well.

_______________________________________________

1. Chief of Naval Operations (August 12, 2005)on "Diversity is a Leadership Issue." 33rd annual National Naval Officers Association (NNOA) Conference in New Orleans LA. Chief of Naval Operations Public Affairs http://www.news.navy.mil/local/cno/

2. Thomas, R. R. (1996). Redefining Diversity. New York, NY: AMACOM Books. p. 192.

3. Hamm, J. (May 1, 2006). The Five Messages Leaders Must Manage. Boston, MA: Harvard Business Review Article. p. 3.

4. Thomas, (1996) "Redefining Diversity": p. 192.

5. Karsten, M. F. (2006). Management, Gender, and Race in the 21st Century. Lanham, MA: University Press of America, Inc. p. 96-103.

6. Cross, E. Y. and White, M. B. (1996). The Diversity Factor. Boston, MA: McGraw-Hill. p. 25.

7. Thomas, R. R. Jr. (2005). Building on the Promise of Diversity: How We Can Move to the Next Level in Our Workplaces, Our Communities, and Our Society. Saranac Lake, NY, USA: AMACOM. P. 103. Retrieved July 9, 2006, from http://site.ebrary.com/lib/regent/Doc?id=10120209&ppg=121.

8. Robinson, John D.(Editor). (2003). Diversity in Human Interactions : The Tapestry of America. Cary, NC, USA: Oxford University Press, Incorporated. P. 8.

9. Pollar, Odette. (1994). Dynamics of Diversity: Strategic Programs for Your Organization. Boston, MA: Course Technology Crisp. P. 9.

10. Lieberman, Simma. (2003). Putting Diversity to Work: How to Successful Lead a Diverse Workforce. Menlo Park, CA, USA: Course Technology Crisp. P. 38.

11. Johnston, Robert E. (2003). Power of Strategy Innovation: A New Way of Linking Creativity and Strategic Planning to Discover Great Business Opportunities. Saranac Lake, NY: AMACOM. p. 86.

12. Stern, Stefan (2006). A Vigorous 'Human Audit' is Good for the Top Table. Financial Times, June 26, 2006. p. 79.

13. Weinzimmer, Laurence G. (2001). Fast Growth: How to Attain It, How to Sustain It. Chicago, IL, USA: Dearborn Trade, A Kaplan Professional Company. p. 134.

14. Chief of Naval Operations (CNO) Adm. Mike Mullen addressed a packed audience at the Naval Air Systems Command Total Force Diversity Day June 29, 2006 at Patuxent River, MD. CNO Calls "Diversity a Strategic Imperative." from Chief of Naval Operations Public Affairs http://www.news.navy.mil/local/cno/

15. Kouzes, J. M. and Posner, B. Z. (2002). The Leadership Challenge. San Francisco, CA: Jossey-Bass. p. 24.

16. Kouzes, "The Leadership Challenge": p. 27.

17. Holy Bible (1985). King James Version Study Bible. Grand Rapids MI: Zondervan. Ephesians 4:25.

18. Sherman, Stratford (2003). Rethinking Integrity. Leader to Leader, No. 28

19. Winston, Bruce (2002). Be a Leader for God's Sake. Regent University, School of Leadership Studies. Virginia Beach, Virginia.

20. Kouzes, "The Leadership Challenge": p. 28.

21. Fairholm, Gilbert W. (1998). Perspectives on Leadership: From the Science of Management to Its Spiritual Heart. Westport, CT: Greenwood Publishing Group, Incorporated. p. 103.

22. Kouzes, "The Leadership Challenge": p. 29.

23. Kouzes, "The Leadership Challenge": p. 31.

24. Holy Bible (1985). King James Version: I Corinthians 2:13.

25. Pearce, Terry (2003). Leading Out Loud: Inspiring Change through Authentic Communication. San Francisco, CA. John Wiley & Sons, Inc. p. 16.

26. Karsten, Management, Gender, and Race in the 21st Century: p. 100.

27. Suich, K. (2004). Navy Diversity Directorate Formed. Navy Personnel Command, Public Affairs. Story Number: NNS040625-20. Retrieved Electronically 24 June 2006 http://www.navy.mil/search/display.asp?story_id=13469.

28. Cross, "The Diversity Factor": p. 57.

29. Thomas, (2005). "Building on the Promise of Diversity": p. 103 - 105.

30. In support of the CNO's Strategy for our People, the Chief of Naval Personnel has stood up the Fleet Diversity Council. It will provide a forum for unfiltered feedback to the CNO about diversity related initiatives and issues, and how they are working or not working in the fleet. http://www.npc.navy.mil/CommandSupport/Diversity/Fleet+Diversity+Council.htm

31. Clements, Phillip Edward. (2006). Diversity Training Handbook: A Practical Guide to Understanding and Changing Attitudes. London, GBR: Kogan Page, Limited. P. 100.

A New Strategy on Diversity: Aligning Leadership and Organizational Culture
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Lieutenant Ken Rice is an Active Duty Naval Officer stationed in Norfolk VA. He is currently assigned to Commander, Naval Surface Force's Warfare Requirments Directorate as the FORCEnet Requirements Officer. Lieutenant Rice is responsible for the program analasys and budget oversight for Information Technology Transformation for the Surface Fleet. He is currently enrolled at Regent University working towards a Doctorate in Strategic Leadership.

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Friday, November 23, 2012

Creativity and Innovation Management - Personality Testing

Whilst tests measuring the creative or innovative personality exist, there are a number of inherent flaws. Some are noted below:

a) Whether a creative or innovative type exists at all is highly contentious. Creativity can be defined as problem identification and idea generation - universal abilities. Creativity can be defined as producing a number of ideas, a number of diverse ideas and a number of novel ideas - universal abilities. Traits are not stable or transferable across situations. Motivation is a critical factor.

b) Due to the numerous relevant definitions of creativity and innovation, it is clear that a number of differing and distinct competencies are involved. It is unlikely (or rare) that all competencies are present in single individual.

Creativity and Innovation Management - Personality Testing

c) Creativity is a cognitive process and case dependent. Not all people produce equal quantities of ideas across tasks and, importantly, the same people do not produce equal quantities of ideas across tasks.

d) Too many assumptions are made. Some have been indicated : the assumption that creativity and innovation are stable and transferable across situations ; motivation and competencies are not accounted for etc etc etc.

e) Collaboration, networking and such are ignored. Intellectual cross pollination results in a higher degree of creative output than is produced by individuals alone.

f) The generalisability, variability and reliability of the test paramters can be disputed.

These topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com.

You can also receive a regular, free newsletter by entering your email address at this site.

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Creativity and Innovation Management - Personality Testing
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Kal Bishop MBA, is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

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Tuesday, November 20, 2012

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning

The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. The fast food market is forecast to maintain its current growth expectations, with an anticipated Compound Annual Growth Rate (CAGR) of 2.3% for the five-year period 2005-2010. This is expected to drive the market to a value of .6 billion by the end of 2010. Drivers of growth include increasing numbers of Americans in the workplace, which reduces the amount of time spent on preparing meals at home. In 2010, the United States fast food market is forecast to have a value of .6 billion, an increase of 12.1% since 2005.

Forecast Volume

In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions (Figure 1). This represents an increase of 5.3% since 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning

Success Factors

Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Subway ® represents a poignant example of a fast food franchisee ready for success in the future fast food market. Their strategies transcend the fast food market and apply to many other markets and products.
SWOT Analysis

Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

Size and number stores and channels Menu reflects demand for fresh, healthy and fast. Use of non-traditional channels. Partnering with the American Heart Association. Worldwide brand recognition. Customizable menu offerings. Low franchisee start up costs. Franchisee training is structured, brief and designed to assure rapid start-up and success.
Weaknesses

Décor is outdated. Some franchisees are unhappy. Service delivery is inconsistent from store to store. Employee turnover is high. No control over franchise saturation in given market areas.
Opportunities

Continue to Grow Global Business. Update décor to encourage more dine-in business. Improve Customer Service Model. Continue to expand channel opportunities to include event wagons. Improve franchisee relations. Experiment with drive-through business. Expand packaged dessert offerings. Continue to revise and refresh menu offerings. Develop more partnerships with movie producers and toy manufacturers to promote new movie releases through children's menu packaging and co-branding opportunities.
Threats

Franchisee unrest or litigation. Food contamination (spinach). Competition. Interest Costs. Economic downturn. Sabotage. Law Suits.
Competitive Analysis

Subway is not without competitive pressures. Chief competitors include Yum! Brands, McDonalds, Wendy's, and Jack in the Box. Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries. Four of the company's highly recognizable brands, KFC, Pizza Hut, Long John Silver's and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the brand names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy's International (Wendy's) operates three chains of fast food restaurants: Wendy's (the third largest burger chain in the world), Tim Horton's, and Baja Fresh. Wendy's operates over 9700 restaurants in 20 countries, has been included in Fortune magazine's list of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The increase in sales of the sandwiches has been a result of decreases in consumer interest in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and steaks.

Current Marketing Program

A new breed of restaurant is making big gains against the market-saturated hamburger establishments. Termed "fast-casual," these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches.

Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway's marketing program addresses these expectations through a number of approaches. The most notable were the television commercials featuring Jared. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. Subway also markets through a national sponsorship in events such as American Heart Association Heart Walks and local events such as triathlons, and children's sports teams.

The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market. Does your marketing strategy bind brand recognition to products that support your market's future direction?

Fast Food Market Forecast - The Subway Example of Strategic Product Positioning
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Reference

Datamonitor Industry Market Research, (July, 2006), United States Fast Food

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Mr. McCarty has a proven record of accomplishment in strategic leadership roles for fortune 500 companies. He is an award winning performer in the areas of large-scale operations leadership, strategic planning, senior project management, and significant contributions to the bottom line. Michael has successfully leveraged his leadership skills to provide keen insight, vision, direction, and executive support to financial services firms, information technology firms, and the automotive, credit, and insurance industries. He has been particularly effective in start-up and turnaround situations.

Insisting on integrity, self-reliance, resourcefulness, and ingenuity, Mr. McCarty is an action and solution oriented leader capable of making strong financial contributions to the bottom line. Operational leadership in the areas of process improvements, cost analysis, and innovative revenue generation characterize soundly this veteran executive's distinguished career. For more on Mr. McCarty, please refer to http://www.leadershippinnacle.com

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Friday, November 16, 2012

Lao Tzu - "Give a Man a Fish, Feed Him For a Day. Teach a Man to Fish, Feed Him For a Lifetime"

Back in ancient Chinese times, sometime between the 4th and 6th century BC, Lao Tzu was the founder of taoism, the mystical 'way' or 'path' that many have followed since.

And with him came the many sayings for which he is renowned.

One of the best known is the one quoted above, "Give a man a fish; feed him for a day. Teach a man to fish; feed him for a lifetime", which has a wonderful analogy with the modern world of management today.

Lao Tzu - "Give a Man a Fish, Feed Him For a Day. Teach a Man to Fish, Feed Him For a Lifetime"

The metaphor of feeding someone and that sufficing to get them through one day, and one day alone shows that people can only be helped so far. If we help them and do things for them all the time, then they rely on us, which is not only unhealthy for their development of skills, but also potentially dangerous, if we are not there to help them one day, their very future is at risk.

The principle whereby we rely totally on the support, guidance and even nurturing of someone else, for too long a period, is typical of many modern management environments. The old-style 'command and control' management processes lead to employees only being required or even able to do what they were told, which puts great pressure on those doing the telling.

Not only that, but where employees are not provided with stimulating work and aren't asked to challenge themselves mentally, this often leads to demotivation and then higher absence rates, as well as employee turnover that such boredom precipitates.

Lack of stimulation=boredom=frustration=leave to find something else.

Let's look at the flip side, where we 'teach a man to fish'. Not only does the man become self-sufficient and be able to survive without being provided for, but he has a sense of achievement and fulfillment. How good does an angler feel as he pulls a fish from the water?

Much better than when one is placed generously in front of him, merely to eat. Sure it may be good, for a while, to be provided for, but human psyche is bigger than that in a healthy human being. People need to be valued for who they are.

So - we 'teach them to fish'. In the workplace, by teaching out people new skills, we validate them for who they are and the contribution they are able to make. They know they are useful and valued and with this confidence they do more. They learn that to stretch themselves is good. That they have within themselves untapped resources which show off the potential they have always had, now released.

Indeed 'teaching them to fish' realizes not just the material potential they have, but catalyses even bigger capabilities in them. Their development muscle has been stretched and exercised, so it becomes bigger and more capable.

The business upside for 'teaching our people to fish'? Well, managers are able to offload some of their tactical workload to others who relish the opportunity. This frees managers to do more with more of their people.

A workplace environment that becomes the breeding ground for capable, committed and excited employees, straining at the leash to do more. Managers enable their business to become a developmental mixing bowl of ideas and capability like nothing before.

In a business world where the embodiment of excellent management is an operation that works at least as well (and sometimes better!), when the manager is absent is to be acknowledged as the purest quality.

And with that level of capability developed, all because the manager taught his people 'how to fish', business thrives.

How Lao Tzu would smile if he saw how his little saying was as important, in the hurly-burly of the business world today, as it was all those years ago!

Lao Tzu - "Give a Man a Fish, Feed Him For a Day. Teach a Man to Fish, Feed Him For a Lifetime"
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(c) 2008 Martin Haworth is the author of Super Successful Manager!, an easy to use, step-by-step weekly development program for managers of EVERY skill level. You can get a sample lesson for free at http://www.SuperSuccessfulManager.com

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Tuesday, November 13, 2012

Managing Organizational Change - Using Innovation For Business Growth

The life cycle that is within any business consists of a variety of changes, growth spurts and the need to keep everything stable. As a business grows and changes, is also the need to ensure that the opportunities are taken care of effectively. Managing organizational change in the correct manner is one that allows for everyone who is working within the business to have the opportunity to grow with the business and to do so without resistance or difficulties with the changes.

A business can go through several effective organizational changes, all which are designed to enhance a business and to helps it grow. However, the need for change is sometimes stopped or moves into a yield because of employees, leaders and individuals that don't completely understand the change. Along these lines, the culture may not be as accepting of the alterations that are taking place within the organization, which can lead to discomfort and individuals who are no longer satisfied with the work place. Making sure that this is taken care of first ensures that the right change moves into any business.

The main component that any organization will want to look at when moving towards organizational change is to use innovation when building what is needed within a company. This provides specific needs to take place within the business without having as much resistance as would take place otherwise. Starting by seeing where individuals are in relation to the company provides the best insight into this. For example, taking surveys or filling out a questionnaire will help to see where an organization and it's employees are at.

Managing Organizational Change - Using Innovation For Business Growth

After there is a complete analysis of the employees, leaders and individuals that are within the work area, there can then be a plan of action to begin implementing the necessary changes to help with business growth. When doing this, the leaders will need to use a step by step process that will help everyone in the business to understand what is occurring. This includes training, knowledge, research and step by step plans to get everyone moving onto the same page. This is where the innovation comes in, so that everyone in the company is comfortable with the changes that occur.

If you are in a business that wants to see how the implementation for managing organizational change occurs, than you can begin by looking at concrete examples of companies who have effectively grown into a new image and internal environment. For example, McDonalds has used concepts with organizational change to ensure that employees benefit from the changes, combined with innovation of the procedures used to build substantial growth for the entire company, from customers to individuals that are affiliated with the restaurant.

Making sure that you are able to build your business through different time frames, as well as through resistance, is what will ensure business growth. Understanding the abilities needed for managing organizational change ensures that everyone within the work area will stay comfortable and will have the ability to continue to move forward with the organization. The result will be the ability for the business to reach it's full capacity within the market and to continue to grow as a company.

Managing Organizational Change - Using Innovation For Business Growth
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Thursday, November 8, 2012

Promotion "Above the Line" and "Below the Line"

Promotion can be loosely classified as "above the line" and "below the line" promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion.

The terms 'below-the-line' promotion or communications, refers to forms of non-media communication, even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.

Some of the ways by which companies do BTL (below the line) promotions are by exhibitions, sponsorship activities, public relations and sales promotions like giving freebies with goods, trade discounts given to dealers and customers, reduced price offers on products, giving coupons which can be redeemed later etc.

Promotion "Above the Line" and "Below the Line"

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising.

A definition of below-the-line sales promotion given by Hugh Davidson:

'An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration'.

Methods of below the line sales promotion

1. Price promotions

Price promotions are also commonly known as" price discounting". These can be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the following examples of the use of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer

- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate - this is the proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down.

3. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased. It works best for

- Subscription-based products (e.g. magazines)
- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer.
Customers often view these schemes with some suspicion - particularly if the method of obtaining a refund looks unusual or onerous.

6. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

7. Point-of-sale displays

Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets.

SOME INTERSTING EXAMPLES OF BTL PROMOTION

Most of the big brands are following the suit of BTL promotion because of rising prices of media based promotion, advertising clutter and increased impulse purchasing.

Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding informative workshops and free tests for students which give a direct interaction of these institutes with the target customer and hence a suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events through out the country in which companies can put up their stalls, display banners and posters and arrange for some fun activities. These events give the companies a platform at very low price to promote their brand and increase visibility among target consumer. These companies also give discount coupons to winners in the games, which in turn boost the sales of the products and ensure that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advise from a doctor would hold more value as compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions.

Promotion "Above the Line" and "Below the Line"
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Mr. Amarendra B. Dhiraj is a frequent speaker at internationally renowned global events, CEO/CTO/CIO Roundtables, Technology Conferences and Symposiums. He hosted and organized the Executive Technology Leadership Forum. He specializes in strategy, innovation, and leadership for change. His strategic and practical insights have guided leaders of large and small organizations worldwide.

Amarendra Bhushan has been named to lists of the European Management Guru and is named as “Europe's youngest management Guru” and one of the “Top most influential business thinkers in the world”. http://www.theerce.com, http://www.indogreek.org The Economic Times, CNBC, moneycontrol

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Wednesday, November 7, 2012

4 Strategic Planning Tools For Business Model Innovation and Business Strategy Design

There are strategic planning tools for pretty much any objective a business executive can conceive of. However, for managers and entrepreneurs wishing to innovate their business model, it can be challenging making the leap from conventional thinking to the sort of creative but realistic thinking from which the next generation of sustainable profits can develop.

Knowing the types of tools you can use for various kinds of business strategy tasks can you get far more innovative results from your strategy development sessions while cutting the time it takes to arrive at good business models.

Tools for Mapping and Dominating Uncontested Market Spaces

4 Strategic Planning Tools For Business Model Innovation and Business Strategy Design

1. Strategy Canvas

The Strategy Canvas is a tool first introduced in the book, "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It is a chart that plots the positions of business competitors relative to the factors important to the customer marketplace. The horizontal axis plots the factors of competition (hopefully established through customer knowledge), and the vertical axis plots the degree of offering or service level.

Using this chart differences between current and potential business competitors can be graphically portrayed. The primary point of the strategy canvas is to illustrate divergence between market and business strategies as it relates to customer needs. By using a strategy canvas, you can create a new value innovation that breaks the conflict between low cost and differentiation - the heart of blue ocean strategy.

The strategy canvas is also a great tool for USP development.

2. Strategic Control Point Index

This is a tool used to assess the level of strategic control a business has in its industry relative to competing businesses and organizations. It was best articulated by management consultant Adrian Slywotzky in "The Profit Zone" (a book which I highly recommend). The strategic control point index classifies these control points according to the level of "profit-protecting power" they confer to a business.

Simply put, it is a simple description of the path to monopoly power (or at least near-monopoly) in any business design. The profit protecting power of these strategic control points go from "None", "low", "medium" to "high". Some examples of strategic control points given by Slywotzky include:

10 to 20 percent cost advantage in commodity product (low) One-year product development lead (slightly higher, but still low) Two-year product development lead (medium) Brand, copyright (slightly higher, but still medium) Customer relationship ownership (High) String of superdominant market positions (Higher) Management of the Value Chain (Even higher) Standards Ownership (Highest)

3. 6 Paths Framework

This analytical tool is another from "blue ocean strategy" and masterfully gives strategists a way to think across the "six conventional boundaries of competition" to systematically construct new assumptions and stimulate product or business design breakthroughs. The idea is that one of these unconventional ways of looking at the competitive landscape may crack open a strategic breakthrough.

a) Look across industries - Compete with alternatives and substitutes for your product/service rather than those you think are your competition.

b) Look across strategic groups - Look at how your new strategy can be developed between the naturally assumed strategic boundaries in your industry.

c) Look across the chain of buyers - Consider how you can change the game by changing the defined "primary buyers.

d) Look across complementary products and services - Thinking about the whole system of your customer's typically solution (in which your current offering might be just a small part).

e) Look across functional or emotional appeal - Examine how you may be able to create a new value curve by adding emotion to a functionally oriented industry, or removing stripping out emotion and reducing a product or service to its functional core.

f) Look across time - Adjust your time horizon to a different point or cycle than is typical in the rest of your industry.

4. Business Design Matrix

The business design matrix is a great analytical tool that you can use to help understand and analyze "at a glance" the business models of your competitors. It is largely derived from the work of Dr. Adrian Slywotzky. The criteria across which you analyze your competitors as well as your own organization include:

Customer selection Profit Capture System(s) Differentiation / Strategic Control Scope of offerings and presence

These core four considerations provide a foundation for deciding marketing strategy - a foundation upon which a larger business strategy can comfortably rest.

4 Strategic Planning Tools For Business Model Innovation and Business Strategy Design
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Tuesday, November 6, 2012

Values in the Workplace

What are values in the workplace and why are they important?

To answer this we need to start with a definition of corporate values. Corporate values can be defined in much the same way as we defined individual values:

A corporate value is an abstract concept that a corporation is willing to embrace at the expense of corporate comfort.

Values in the Workplace

Essentially, corporations set their values with the expectation that their leaders will model the values and their employees with buy into the value system and use the values as a vehicle to travel towards the company's mission and vision. In doing so, they must ensure that the values they pick are truly the values that will be modeled in every circumstance. Any deviation from these values by the leadership in the company can have serious short term and long term implications.

Essentially the corporation's values are its very foundation.

Companies having shared values that are consistently modeled within the organization results in:

Employees focused on what is important to the organization Less stress on individuals Less tension between individuals and departments Enthusiasm in the workplace Pride in work Direction in the workplace Less bureaucracy Positive attitudes Positive momentum

One does not have to look too far to find examples of companies that did not have proper alignment around a value system and paid the price in the marketplace;

WorldCom Enron Bre-X

Fortunately there are many examples of companies that have built themselves around their values;

Disney Home Depot Walmart Starbucks

According to William C. Taylor and Polly LaBarre in their book Mavericks at Work, companies should use values to help define a corporate purpose because "high minded values can drive cutting edge corporate performance".

They went on to say that "Great companies are built on genuine passion, plus a day to day commitment to great execution. Employees won't feel the passion, and can't maintain the operating discipline, unless they feel good about what the company sells and the values that it stands for."

I recently heard of an excellent example of this from a friend of mine. He told me that they had a client that was calling into their customer support center and was very abrasive and abusive to the staff that he was talking with. As a result there were a number of staff who refused to talk to this client when he called. On one occasion this client called for technical support and was so abusive over the phone that the customer care representative was reduced to tears.

My friend is the head of this customer support group and he told me that his company values their employees and that they state this as one of the company values. When he was made aware of this situation and the fact that it had been going on for some time, he set up a meeting with this abusive client and gave him his money back for his customer support contract and told him that he did not want him as a client any longer.

This is a great example of a company and its leadership modeling the values that they state. Many other companies would value the revenue more than the employees and would try to find ways to keep this abusive client at the expense of their employees and at the expense of their own reputation.

Employees immediately take note when positive actions of the corporation align with the stated corporate values. This provides positive energy and motivation for employees.

William C. Taylor and Polly LaBarre go on to say that ...But they great companies understand that what it means to be great is as much about values as virtuosity, as much about what makes people tick individual's Strength Zone as how much they know. and that ...the most powerful way to create economic value is to embrace a set of values that goes beyond just amassing power, and that business, at its best, is too exciting, too important, and too much fun to be left to the dead hand of business as usual. (Bracketed text is my insertion.)

John C. Maxwell takes this concept one step further and indicates that in today's high paced, high stress, high stakes world, ONLY companies that are firmly founded on a value system that is properly modeled and adhered to can be successful. He stated;

The only way you can increase speed and stay on course, is everyone knowing and living the company's values. John C. Maxwell

So we can see that it is extremely important for leadership in an organization to always model the values that they state. Failure to do this will results in the employees losing confidence in the organization and its leadership. As Ralph Waldo Emerson says 'Your actions are speaking so loudly, I cannot hear what you are saying".

This alignment around corporate values empowers the employees and the corporation as a whole to drive forward towards the achievement of their goals using an agreed upon and consistent vehicle for their progress - this vehicle is Corporate Values.

Don't forget to register at www.strengthzone.ca and take the free online Values Strength Zone® profile.

Values in the Workplace
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A graduate from the University of Alberta in 1989 with a B.Sc. in Electrical Engineering, David M. Taylor is a professional engineer with eighteen years of electrical engineering and project management experience. Over the past ten years, he has held project management and leadership roles, working with management and staff to improve overall performance in the development and implementation of business and project execution standards in North America, Europe and Asia.

David is the author of Strength Zone: Discover Your Place of Maximum Effectiveness and the CEO of Strength Zone Inc.

http://www.strengthzone.ca

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