1 - FULFILLS KEY ROLES

(MINTZBERG, 73)

INTERPERSONAL ROLES
FIGUREHEAD LEADER LIASON

INFORMATIONAL ROLES
MONITOR DISSEMINATOR SPOKESPERSON

DECISIONAL ROLES
INNOVATOR / ENTREPRENEUR (PLANNER) DISTURBANCE HANDLER (CRISIS MANAGER) RESOURCE ALLOCATOR (SLICING-THE-PIE) NEGOTIATOR (BARGAINER)

2 PROVIDES CORPORATE LEADERSHIP

ARTICULATES A TRANSCENDENT GOAL FOR THE FIRM

PROVIDES A VISION OF THE FUTURE SEES THE FIRM NOT AS IT ISBUT AS IT CAN BECOME

COMMUNICATES HIGH PERFORMANCE STANDARDS

SHOWS CONFIDENCE IN SUBORDINATES PROVIDES GOALS, AUTONOMY, MENTORING

PRESENTS A ROLE FOR OTHERS TO IDENTIFY WITH

SETS AN EXAMPLE IN BEHAVIOR AND DRESS COMMUNICATES VALUES CLEARLY IN WORDS & DEEDS

3 PROVIDE OPERATIONAL AND FINANCIAL LEADERSHIP

OPERATIONAL LEADERSHIP

Operating policies include everything from hiring personnel to supervising the work of manufacturing workers to signing contracts with business partners.

FINANCIAL MANAGEMENT
They cover critical decisions regarding budgeting, cost accounting, financial accounting and corporate finance Budgeting and cost accounting help a company rein in waste and limit excessive spending

4 MANAGES STRATEGIC PLANNING

INITIATES/MANAGES THE STRATEGIC PLANNING PROCESS

A strategy is a plan of action designed to achieve a particular goal Devise operating policies, identify investment opportunities and devise tactics to outmatch the competition

SEEKS INFORMATION
LONG-RANGE PLANNING STAFF DIVISIONAL (SBU) MANAGERS FUNCTIONAL AND DEPARTMENTAL MANAGERS TOP MANAGEMENT TEAM

THE MASTER STRATEGIST CEO personally shapes the plan Depends on skills and vision of one person

DELEGATE IT TO OTHERS Uses a planning staff or task forces Lack of top-down direction and leadership COLLABORATIVE APPROACH Involve key people --- seek group consensus Can political games and compromises be avoided?
THE CHAMPION APPROACH Encourage subordinate managers to develop their own strategies Will a coherent, unified strategy emerge?

THE PLANNING STAFF SHOULD: Help gather and organize information Analyze industry and competitive conditions Administer annual reviews of strategy Distribute information on the firms strategic performance THE PLANNING STAFF SHOULD NOT: Prepare strategic plans for someone else to implement Seize the responsibilities of operating managers Make strategic decisions POTENTIAL PROBLEMS: A planning staff cannot be held accountable for results because they have no authority to implement. Non-acceptance by managers who do not feel ownership in the strategic plan

DETERMINE AND APPROVE THE ORGANIZATIONS MISSION AND STRATEGIC OPTIONS

EVALUATE AND INFLUENCE KEY MANAGEMENT DECISIONS AND ACTIONS

MONITOR AND EVALUATE THE ENVIRONMENT SURROUNDING THE ORGANIZATION MONITOR AND EVALUATE THE OVERALL PERFORMANCE OF THE ORGANIZATION

BOARDS DIRECT THE AFFAIRS OF THE FIRM, BUT DO NOT MANAGE THEM

PHANTOM BOARD May not even meet! Never knows what to do. No involvement. RUBBER-STAMP BOARD (Ceremonial 8 %) Permits officers to make all decisions Votes the officers recommendations No board agenda MINIMAL REVIEW BOARD (Passive 21 %) Reviews issues brought to its attention by the officers Members are notified what is on the agenda.but often come unprepared NOMINAL PARTICIPATION BOARD (Somewhat Active 45 %) Reviews performance of selected key decisions independently Occasionally questions officers actions and strategies Informal groups form within the board

ACTIVE PARTICIPATION BOARD (Very Active 21 %) Has active board sub-committees Conducts its own audits Gathers information about the organization independently Questions officers regularly on a wide variety of topics Makes final strategic decisions

CATALYST BOARD (Critical Contributor 5 %) Takes a leading role in establishing and modifying the mission, objectives, and strategies of the organization Has very active strategic planning sub-committees Officers do not propose or formulate strategiesbut are expected to implement them for the board