2.1. GM Perspective F23

Module 2: Big Picture Mindset
Topic 2.1: GM Perspective
GenTech 4FT3 Strategic Management

©2023 Created for GENTECH 4FT3 by A. MacKenzie & L. Smith, SEPT-McMaster University 1
Topic Snapshot
• What is a strategy?
• The General Management Perspective
• Balancing Operating Performance & Organizational
Health
• Four Key Performance Objectives of the GM
What is Strategy?
• Strategy is a dynamic series of goal-directed plans
and actions that align an organization’s capabilities
and resources with the opportunities and threats in
its environment so the enterprise can create and
sustain value
Strategic Management Comes Down to
Making Choices
• Strategic choice is tension
It’s a dynamic balancing act
between what the between entrepreneurship
organization needs to do and the business plan
given the environment
AND
• What it can do given its
Management
capabilities
AND
• What it wants to do given it Marketing Operations
value/preferences
Four Characteristics of Strategic
Management
• Interdisciplinary • Internal Focus
– It focuses on the whole – Understands the resources
organization, rather than any and capabilities the
functional part organization does or does not
• External Focus have
• Interaction of organization • Future Direction of the

with external environment Organization, includes;
– Decisions
– Economy
– Planning
– Competitors
– Shifts or changes in products
– Market demographics
or markets
Strategic issues are: ambiguous, complex and uncertain!
The Diamond-E Snapshot
Management
Strategy Environment
Marketing Operations
• Lots of models conceptualize this link, however in this course we will

concentrate on using the Diamond-E Model
• Models help you analyse business cases by systematically dissecting
them
General Management Perspective
Role - Enterprise Value Creation
What Managers Do - Four Functions
Source: Daft & Marcic (2012)

Understanding Management [8th Ed]
Management Levels in the Organizational
Hierarchy
Source: Daft & Marcic (2012)

Understanding Management [8th Ed]
First-Line Mangers vs Middle Managers
FIRST-LINE MANAGERS MIDDLE MANAGERS
• Directly responsible for • Responsible for setting objectives
production of goods or services that are consistent with top
• Employees who report to first- management’s goals and translating
line managers do the them into specific goals and plans
organization’s work for first-line managers to implement
• Spend little time with top • Responsible for coordinating
managers in large organizations activities of first-line managers
• Technical expertise is important • Establish target dates for
products/services to be delivered
• Rely on planning and
administration, self-management, • Ability to develop others
teamwork, and communication • Rely on communication, teamwork,
competencies to get work done and planning and administration
competencies to achieve goals
Top Managers (aka - General Manager)
• Responsible for providing the overall direction of an
organization
– Develop goals and strategies for entire organization
– Spend most of their time planning and leading
– Communicate with key stakeholders—stockholders, unions,
governmental agencies, etc., company policies
– Use of multicultural and strategic action competencies to lead firm is
crucial
Source: Daft & Marcic (2012) Understanding Management [8th Ed]
Acumen differences between Functional
& General Managers
FUNCTIONAL MANAGER GENERAL MANAGER
• Specialist • Generalist
• Manage Costs • Profits
• Shorter Term Perspective • Longer Term Perspective
• Narrower Scope • Broader Scope
• Operational • Strategic
All Managers Need Three Essential Skills
Conceptual Skills – cognitive ability to see the

organization as a whole system (aka - big picture
thinking)
Human Skills – the ability to work with and through
other people
Technical Skills – the understanding and proficiency in
the performance of specific tasks
Relative Skills at Different Levels of Mgt.
Source: Robbins, Coulter & Langton (2011)

Fundamentals of Management [6th CDN Ed]
Helping You Develop the GM Perspective
• Strategic Management is about how an enterprise achieves
and sustains a high level of success, and the role of the
general manager in this process.
– Throughout the course we are going to use analytical tools and
conceptual frameworks that aid in the development of strategic
understanding.
– The intent is to sharpen your skills at developing robust judgments in
the face of uncertainty and complexity - linking actions, analysis and
successful outcomes
The GM Perspective
Roadmap!
Goals of the Enterprise
• Profits
• Social responsibility
Broadly Categorized as
• Customer satisfaction
“Operating Performance”
• Efficiency
1. Profitability
• Return on assets, equity
2. Financial Position
• Maximize shareholder value
3. Market Performance
• Market share
• Portfolio balance (these are often described as the
“hard” or quantitative measures)
• Operating performance
Profitability
Typical Examples:
• Profit Margin (gross &
operating)
• Return on Assets
• Return on Equity
• Stock Price
Financial Position
Typical Examples:
• Leverage ratio (debt to
equity)
• Liquidity Ratio (current
& quick)
• Activity Ratio (e.g. asset
& inventory turnover)
Market Performance
Typical Examples:
• Growth rate of sales
• Market share (units &
revenue)
• New products as % of
sales
Source: http://www.planprojections.com/projections/product-lifecycle/
Organizational Health
Organizational Health is Displayed through…

often neglected: • Work attitudes
• Internal view of performance • Org culture (e.g. mechanistic
• Softer measures or organic)
• Can impact financial well- • Job motivation
being • Job satisfaction
• Assumed it will take of itself • Accidents rates
• Employee tardiness,
(these are often described as the “soft” absenteeism
or qualitative measures) • Employee turnover
Relating Operating Performance &
Organizational Health Measures (2020)
Quadrant 2 Quadrant 1
Organization Health
+ Underachieving Desired State

(WeWork) (Google, Salesforce.com)
Quadrant 4 Quadrant 3
- Crisis Troubled
(Sears Holdings) (Amazon)
- +
Operating Performance
Source: Crossan, Rouse, Fry & Killing
(2011) Strategic Analysis & Action [8th Ed]
The GM Challenge
• Taking the organization from Quadrants 4, 3 or 2 and moving it
to Quadrant 1.
• Understanding that no matter what quadrant an organization
is in there is constant change, such as;
– Employees – Competition
– Societal shifts – Economic shift
– Government policy – Technology solutions
The Job of the General Manager
• GM must be aware of the
changes and the need to adapt
strategic plans by; Setting
Direction
1. Setting new direction

2. Building capabilities
3. Implementing change
4. Assessing performance Assessing
Performance
GENERAL
MANAGER
Building
Capabilities
Implementing
Change
Source: Crossan, Rouse, Fry & Killing

(2011) Strategic Analysis & Action [8th Ed]
Setting Direction – How?
• Mission statements
• Core organizational values
• Goals
• Key performance indicators
(KPIs)
• Developing implementation
plans
– Timelines
– Accountability (consequences
& rewards
Building Capabilities – How?
• Selection practices that

attract, motivate and retain
superior staff
• Orienting new staff
• Continuous training and
upgrading
• Cross training
• Broad exposures within the
organization
• New technology
Implementing Change – How?
• Business processes and/or

structures
• Changing personnel
• Personal behaviours
• Clearly conveying the
urgency for change
• Over-communicating the
reason(s) for change
• Setting milestones
Assessing Performance – How?
• Measure key result areas

that reflective of new
directions
• “What gets measured gets
done”
• Rewarding and punishing as
required
©2023 Created for GENTECH 4FT3 by A. MacKenzie & L. Smith, SEPT-McMaster University End 28

2.1. GM Perspective F23

Uploaded by

Copyright:

Available Formats

2.1. GM Perspective F23

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2.1. GM Perspective F23

Uploaded by

Copyright:

Available Formats

Module 2: Big Picture Mindset

Topic 2.1: GM Perspective

GenTech 4FT3 Strategic Management

• Interaction of organization • Future Direction of the

Strategic issues are: ambiguous, complex and uncertain!

• Lots of models conceptualize this link, however in this course we will

Source: Daft & Marcic (2012)

Source: Daft & Marcic (2012)

Source: Daft & Marcic (2012) Understanding Management [8th Ed]

Conceptual Skills – cognitive ability to see the

Source: Robbins, Coulter & Langton (2011)

Organizational Health is Displayed through…

+ Underachieving Desired State

1. Setting new direction

Source: Crossan, Rouse, Fry & Killing

• Selection practices that

• Business processes and/or

• Measure key result areas

You might also like