Management of Engineers and Technology Organizational Politics Business Focus

Principle 1: Mastering Relationships People are central to business Employees, boss, coworkers Suppliers, customers, regulators Family, friends, community People need to be… Led Motivated Accommodated Organized

Politics Playing politics is about: Sharing power Influence without authority Outside the formal organization Protecting and supporting Yourself Your area of responsibility Your subordinates

Political Participation Avoidance (limits potential) Neutral (not affected) Active Practitioner (politics as a tool) Politician (politics as an end) Climber (politics as a weapon)

Political Negatives Unethical or dirty politics Kissing up to the boss Relationships outside of the organization (family, friend, etc.) Politics take precedence over productivity

Political Tools Alliances Trading Competition for resources Common goals Mutual benefit Trading Positive – back scratching Negative – back stabbing Competition for resources Information is power

Is Your Organization Political? Functional structure Hidden power structure Political structure (committees) Reward system Salary Advancement (power) Can you find out at a job interview?

Hone Your Political Skills Recognize the political landscape Hidden organization Hidden agendas Current “hot buttons” Improve your chances Emulate successful people Build relationships Be willing to trade

Political Missteps Stepping on toes Burning bridges The end run “Secret” affair or relationship Spies

Themes Successful managers are good political practitioners Avoiding politics limits potential Political missteps damage careers Level of politics varies between organizations Political skills can be developed Not all politics are dirty or bad

Principle 2: Seeing the Big Picture Financial goals of business Short and long term Uncertain environment Formulate and carry out plans to Defuse threats Take advantage of opportunities Achieve goals Meet needs of various constituencies

Now You’re in Business Money is Managers must be money-savvy The fuel that keeps the organization running The incentive for people to work The incentive for investors Managers must be money-savvy Engineers tend to be tech-savvy

Financial Health Generating profit Generating cash Generating capital Producing goods and services costs less than what they bring in Generating cash More cash comes in than goes out Timing is critical Generating capital Replacement of declining assets Growth

(Assets, People, Knowledge) Business Flow Diagram Investors $ $ Add Value (Assets, People, Knowledge) Suppliers Customers $ $ Environment

Business Models Start-up Stable Growing Heavy investment, borrowing Payments greatly exceed income Stable Stable investment, little borrowing Income exceeds payments Growing Increased investment and/or borrowing Income still substantial

Financing a Business Debt financing Equity financing Borrow money (collateral), pay interest Short or long term Sell bonds (ratings), pay interest and face value Equity financing Sell shares of ownership Provide return on investment Share growth Dividends

Business Metrics Income (sales) Cash flow, reserves Debt Profit Market share Orders “in the pipeline” Inventory On-time deliveries

Bad Practices In good times In bad times Ignoring cash flow Ignoring investors Ignoring opportunities Not anticipating bad times In bad times Laying off good people Not making critical investments

Open Book Management Sharing financial information with Employees Customers Suppliers Investors People know the true situation Kills misconceptions Motivation Decision making

Summary Money is important in business Managers must be financially proficient Money is not more important than relationships Financially stable companies make good employers, customers, suppliers, and citizens