1. Management of Engineers and Technology
Organizational Politics
Business Focus

2. 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

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

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

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

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

7. 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?

8. 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

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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

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

18. 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

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

20. 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