V REPORT IN BUSINESS POLICY

Æ BY: AILEEN LACSON-BAGASAN

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V INTERPERSONAL ROLES
~ FIGUREHEAD
~ LEADER
~ :LIAISON
V INFORMATIONAL ROLES
~ MONITOR
~ DISSEMINATOR
~ SPOKESPERSON
V DECISIONAL ROLES
~ INNOVATOR / ENTREPRENEUR (PLANNER)
~ DISTURBANCE HANDLER (CRISIS MANAGER)
~ RESOURCE ALLOCATOR (SLICING-THE-PIE)
~ NEGOTIATOR (BARGAINER)
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V ARTICULATES A TRANSCENDENT GOAL FOR THE FIRM

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

V COMMUNICATES HIGH PERFORMANCE STANDARDS

~ SHOWS CONFIDENCE IN SUBORDINATES
~ PROVIDES GOALS, AUTONOMY, MENTORING

V PRESENTS A ROLE FOR OTHERS TO INDENTIFY WITH

~ SETS AN EXAMPLE IN BEHAVIOR AND DRESS
~ COMMUNICATES VALUES CLEARLY IN WORDS & DEEDS
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V INITIATES/MANAGES THE STRATEGIC PLANNING PROCESS

V SEEKS INFORMATION
~ LONG-RANGE PLANNING STAFF
~ DIVISIONAL MANAGERS
~ FUNCTIONAL AND DEPARTMENTAL MANAGERS
~ TOP MANAGEMENT TEAM
 


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

   

Uses a planning staff or task forces
Lack of top-down direction and leadership


 

Involve key people --- seek group consensus
Can political games and compromises be avoided?

   

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 firmǯs strategic performance

THE PLANNING STAFF SHOULD NOT:

Prepare strategic plans for someone else to implement
Usurp the responsibilities of operating managers
Make strategic decisions

POTENTIAL PROBLEMS:
V A planning staff cannot be held accountable for results because they
have no authority to implement.

V Non-acceptance by managers who do not feel ownership in the

strategic plan
V DETERMINE AND APPROVE THE ORGANIZATIONǯS MISSION AND
STRATEGIC OPTIONS

V EVALUATE AND INFLUENCE KEY MANAGEMENT DECISIONSAND

ACTIONS

V MONITOR AND EVALUATE THE ENVIRONMENT SURROUNDING

THE ORGANIZATION

V MONITOR AND EVALUATE THE OVERALL PERFORMANCE OF THE

ORGANIZATION


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V  

May not even meet!
Never knows what to do.
No involvement.

V


 
 (Ceremonial Ȃ 8 %)
Permits officers to make all decisions
Votes the officersǯ recommendations
No board agenda

V 
 
 (Passive Ȃ 21 %)
Reviews issues brought to its attention by the officers
Members are notified what is on the agendaǥ.but often come unprepared

V  
  
 (Somewhat Active Ȃ 45 %)
Reviews performance of selected key decisions independently
Occasionally questions officersǯ actions and strategies
Informal groups form within the board
V  
  
 (Very Active Ȃ 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

V   
 (Critical Contributor Ȃ 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 strategiesǥbut are expected to
implement them for the board
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HIGH






 

INVOLVEMENT
BY TOP MGMT
   

LOW
------------------------------------------------------
LOW HIGH
INVOLVEMENT BY
BOARD OF DIRECTORS
V EXECUTIVE
V FINANCE
V AUDIT
V NOMINATING
V COMPENSATION
V STRATEGIC PLANNING
V INVESTMENT
V ETHICS AND SOCIAL RESPONSIBILITY
BOARD MEMBERSHIP
Inside Members
Outside Members
Affiliated Non-Management
Independent
Co-determination
Interlocking Directorates

BOARD SIZE
Private (8 members, meets 4 times/year)
Public (13 members, meets 6-7 times.year)

NOMINATION
CEO
Board Committee

ELECTIONS
Simultaneous vs. Staggered Terms
Straight vs. Cumulative Voting
*5 % Is willing to challenge management when necessary
67 % Has special expertise important to the company
57 % Is available outside meetings to advise management
41 % Has expertise on global business issues
3* % Understands the firmǯs key technologies and
processes
33 % Brings external contacts that are potentially valuable
to the firm
31 % Has detailed knowledge of the firmǯs industry
31 % Has high visibility in his or her field
18 % Is accomplished at representing the firm to
stakeholders
1ȄBOARDS HELD TO HIGHER STANDARDS OF CONDUCT
Society will pay more attention---lawsuits for negligence

2ȄDIRECTORS WILL FEEL RESPONSIBILITY FOR/TO THE

CORPORATION AS A WHOLE
Not just to the stockholders

3ȄGREATER ACTIVITY IN STRATEGIC PLANNING

4ȄMORE TRAINING AND ORIENTATION OF BOARD MEMBERS TO

THEIR DUTIES
Certification of directors for their board responsibilities

5ȄMORE USE OF NOMINATING COMMITTEES TO SELECT

CANDIDATES FOR DIRECTOR POSITIONS

6ȄDIRECTORS WILL BE MORE INDEPENDENT OF THE CEO