Theory of Constraints

ARE 112 – Winter 2017
I.
Notes #9 – Careers – Managers - Leaders – Last Notes!
Class Notes
1.
2.
3.
II.
Exam #2
Analysis assignment cancelled
Final exam
Careers
The future depends on what you do today - Mahatma Gandhi
A. Law school book – but good for most fields of study
B.
MBA programs – UCLA as an example – From class profile on UCLA’s web page
C.
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Notes #9 – Careers – Managers - Leaders – Last Notes!
C. Professional programs that generally do not require 4 to 5 years of experience:

Master’s degree or certificates in accounting:
o UC Davis
o California State University system
o Golden Gate University in San Francisco
o University of Santa Clara
o Community colleges

Master’s degrees in finance

Master’s in data analytics

MBA from “second tier” schools

MBA-like programs for recent graduates – mostly on the east coast:
http://www.fuqua.duke.edu/programs/other_programs/mms_foundations_of_business/
D. Related costs
III.
1.
Minimal subsidy from institution so essentially full cost
2.
Employer financial support
The Starbucks Book – Onward
1.
Limited reading notes
2.
Look at it as a “synthesis” rather than an “analysis” of an organization.
3.
The Goal and the IBM book were for analytical in nature.
4.
Review: Planning and Controlling – A Manager’s Environment
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a.
From Anthony’s hierarchy: Getting resources to achieve goals
b.
From The Goal: Implementing solutions
c.
From the IBM book: Implementing a strategy
d.
From the Starbucks book – Link between solutions (operations) and strategy
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ARE 112 – Winter 2017
IV.
Notes #9 – Careers – Managers - Leaders – Last Notes!
A Manager’s Task
A. Mintzberg article in course pack
1.
Day-to-day realities of managers
2.
Point that procedures do not drive the organization
3.
People – actually persons – drive procedures and then the organization is driven to succeed.
B. Mintzberg’s typology for managers
1.
2.
3.
V.
Decisional
a.
Entrepreneur
b.
Disturbance handler
c.
Resource allocator
d.
Negotiator
Interpersonal
a.
Figurehead
b.
Leader
c.
Liaison
Informational
a.
Monitor
b.
Disseminator
c.
Spokesperson
Related Manager’s Skills
1.
Think about the SKA’s previously discussed – you can learn skills
2.
Conceptual skills
3.
Human skills
4.
Technical skills
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ARE 112 – Winter 2017
Notes #9 – Careers – Managers - Leaders – Last Notes!
Example of a Manager’s Responsibility: “Building and maintaining a competitive advantage”
VI.
A. Manager’s environment
1.
More process related than project related
2.
Contingency theory
B. Framework for competitive advantage
1.
Efficiency
2.
Quality
3.
Innovation
4.
Responsiveness to customers
“Management is doing things right; leadership is doing the right things” – Peter Drucker
VII.
Review and Importance of the Study Leadership – General Comments
A. Short Note: This topic is important for you for a least two reasons:
 First, as a manager or as a consultant or as analyst you will be asked to assess the
quality of leadership in an organization and you need an introduction to the topic.

But more important, in the early part of your careers – in education, business,
government, nonprofits – you want to be able to assess the qualities of leadership.
They are very different from ownership. This will be for you and maybe for your
friends important as you may find the workplace frustrating: “If you sleep with
dogs, you get fleas.”
Note: Ownership does not confer leadership: “Born on third and thinks they hit a
triple.”
B. Some definitions:
1. Dictionary definition: leadership (noun) 1. The position or function of a leader. 2. the period
during which a person occupies the position of leader: during her leadership very little was
achieved. 3. a. the ability to lead. b. (as modifier): leadership qualities. 4. the leaders as a group
of a party, union, etc.: the union leadership is now very reactionary. This dictionary definition
of leadership focuses on the position (singular or collective), tenure and ability of leaders. As
such, it misses key points about the purpose and hallmarks of effective leadership. So we want
to get to the verb form – to lead. to guide to show the way to pilot to go in front to direct to
command
2.
Peter Drucker: "The only definition of a leader is someone who has followers." To gain followers
requires influence but doesn't exclude the lack of integrity in achieving this. Indeed, it can be
argued that several of the world's greatest leaders have lacked integrity and have adopted values
that would not be shared by many people today. http://www.druckerinstitute.com/
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3.
Notes #9 – Careers – Managers - Leaders – Last Notes!
John C Maxwell :
"leadership is influence –
nothing more, nothing
less." This moves beyond
the position defining the
leader, to looking at the
ability of the leader to
influence others - both
those who would consider
themselves followers, and
those outside that circle.
https://www.youtube.com/watch?v=aPwXeg8ThWI
ASSIGNMENT: Watch the video – 30 minutes – before next class session
4.
Warren Bennis : "Leadership is a function of knowing yourself, having a vision that is well
communicated, building trust among colleagues, and taking effective action to realize your own
leadership potential." https://en.wikipedia.org/wiki/Warren_Bennis
VIII. Theory of Leadership
A. General Theories – A Framework
1.
Characteristic or trait theory: action and task oriented
2.
Behavioral or psychological theory: need for power and accomplishments
and low need for affiliation or friends
3.
Situational and contingency theory: the times or conditions produce the
leaders
4.
Functional leadership theory: whatever is necessary for group needs is taken
care of’ Thus, a leader can be said to have done their job well when they
have contributed to group effectiveness and cohesion
B. Some concepts as we need a working definition
1. Leadership:
a. A process
b. inspiring others
c. to work hard
d. to accomplish a goal
e. In other words: “You manage things, you lead people.”
f. And “The present moment is the domain of the manager. The future is
the domain of the leader.” – Quote from one of the HBR articles
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2.
Notes #9 – Careers – Managers - Leaders – Last Notes!
Where does leadership fit in the management structure? Think about:
a. Alex
b. Jonah
c. Peach
d. Lou
e. Dr. Meliones
3.
The “Integrity Line” – how are people inspired
Honest
Consistent
Humble
Selfless
Where leaders should be
Where leaders don’t want to be
Dishonest Inconsistent Conceited
C. Styles of leadership: they are not exclusive but can overlap
a. Autocratic: command and control
b. Human relations: people over tasks
c. Laissez-faire: do the best you can and don’t bother me
d. Democratic style: people and tasks together
D.
Cooperation vs. collaboration – where leadership counts.
IX. HBR Articles
A. “What Make a Leader”
https://www.youtube.com/watch?v=HTfYv3IEOqM
Watch this video by next class session.
B. What Leaders Really Do”
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Selfish
ARE 112 – Winter 2017
Notes #9 – Careers – Managers - Leaders – Last Notes!
Below is the diagram giving you some idea of the development of “leadership” as a critical success factor
for contemporary organizations.
This is a simplistic view of the change in business organizations. But it’s purpose is to show that the
importance of leadership in the organizational domain is fairly recent.
~ 1870
~ 1930
~ 1950
Classical School
Behavioral School
Management Sciences School
Importance of Ownership
Railroads
Oil
Manufacturing
Political Power
Capital Formation with Public
Shares and Stock Exchanges
Importance of Management
Development of the MBA
and Business Schools
Importance of Leadership
Leadership Development
Programs
Concentrated Power
Corporate Power
Executive Power
Regional/National Markets
International Markets
Global Market not Markets
Compete with labor resources
Compete with assets resources
Compete with information
resources
X. Back to an HBR Article: “What Make a Leader”
A. Emotional intelligence (EI) – sometimes known as emotional quotient (EQ) - components:
1.
Self-awareness
2.
Self-regulation
3.
Motivation
4.
Empathy
5.
Social Skills
B. Emotional intelligence
tools and barriers
1.
Communications
a. Source/encoder
b. Signal
c. Decoder/destination
2.
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Need for more information and more complex information
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ARE 112 – Winter 2017
Notes #9 – Careers – Managers - Leaders – Last Notes!
XI. HBR Article: “What Leaders Really Do”
1.
Setting direction
2.
Aligning people
3.
Motivation
XII.
Leadership Tool: Path-Reward (Theory of) Leadership Example
1.
Directive behavior
a. Can be “what to do”
b. Can be “what needs to be done”
c. Articulates the goals
2.
Supportive behavior
a. Exhibits Maslow hierarchy
b. This is the empathy part
3.
Participative behavior
a. Asking for feedback on tasks and
goals
b. Listening to advice on tasks and
goals
4.
Achievement behavior
a. Stretch goals
b. Realistic rewards
c. http://www.bain.com/infographics/how-leaders-inspire/?utm_source=February-2017-BainInsigh2017ts&utm_medium=Newsletter&utm_campaign=how-leaders-inspire-infographic –
copy on Canvas
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