1. BMA533: Structural Leadership (Class # 5) Fall, 2005

2. Tonight’s agenda  Structural Frame: Introduction  Citibank & Dyno

3. A Structural View  Metaphor: complex machine  Leader: analyst, architect  Strategy: do your homework, analyze, design new approach, implement  Focus: data, logic, structure, plans, policies,

4. One side of structure: Letterman at GE

6. Another side of structure: Joe Clark in his first day in a new job

8. A Structural View  Metaphor: complex machine  Leader: analyst, architect  Strategy: do your homework, analyze, design new approach, implement  Focus: data, logic, structure, plans, policies,

9. Alfred P. Sloan at General Motors  Appointed CEO 1923  In first year, GM’s share dropped from 20 to 17%; Ford’s increased to 55%  GM passed Ford 5 years later  Structure Sloan inherited: feudal baronies  One option: functional organization

10. Appe nd ix 1. St ra te gi c C on te xt — Co nti nu ed B.C. Ministry of Management Services

11. Alfred P. Sloan at General Motors  Appointed CEO 1923  In first year, GM’s share dropped from 20 to 17%; Ford’s increased to 55%  GM passed Ford 5 years later  Structure Sloan inherited: feudal barony  One option: functional organization  Structure he built: product divisions with strong central staff

12. Options for dividing the work:

14. Integration: pulling it together  Formal vs. informal  Vertical Authority Policies, procedures, rules Systems (accounting, I.T.,etc.) Incentives  Lateral Committees, teams, task forces Coordinating roles Networking

15. Why cases?  Virtual tour: learn from immersion in different issues and contexts  Application of theory to practice  Diagnostic skills: increase ability to size up situations and develop strategies  Test your ideas against others’ ideas

16. Citibank  Overall, what grade would you give Reed and White for their change effort at Citibank?  Why?  What, if anything, should they have done differently?

17. Citibank and Dyno Software  Citibank and Dyno both emphasize structure and metrics. Are they getting similar results?  Why or why not?