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Executive Summary

In formulating Shogun & PortaVaga s organizational goals, the simplicity of the P-O-L-C Framework (Carpenter, Mason. Principles of Management. Flat World Knowledge, 2009.) may be adapted. Planning 1. Vision and Mission 2. Strategizing 3. Goals and Objectives Organizing 1. Organization Design 2. Culture 3. Social Networks Leading Leadership Decision Making Communications Groups/Teams Motivation Controlling 1. Systems/Processes 2. Strategic Human Resources

1. 2. 3. 4. 5.

The recently concluded team building activities posted a lot of questions after it was concluded. What s next? is top of mind. So, the next step is gearing-up for the real strategic planning process. Since planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers are made aware of environmental conditions facing our organizations and we should be able to forecast future conditions. It also requires that managers become good decision makers. Here, the competencies of the managers must not only be hyper-specialized but must also involve (managerial) skills that would help them further the goals of their department, coach their personnel professionally, and be strategic enough to lend their capacities and ideas transparently towards the achievement of the business direction. Also, the logical sequence of formulating the business direction must be embraced. The formulation of the Mission and Vision must be forged properly before the strategic plan, tactical plan, and operational plan can even be formulated.

The business direction as a whole must be founded on the Vision and Mission of the organization and the strategies and plans must be formulated in line with them. See the proposed Mission and Vision below. Shogun Ships Mission PortaVaga We will provide superior maritime services to our principals through the deployment of qualified, environmentally-conscious, efficient, and mission & client-sensitive shorebased and sea-based crew. We will operate all vessels of our Principals according to the standards espoused by MARINA, IMO, and SIRE, putting to heart all provisions on maritime conventions on safety and environmental protection. PortaVaga aims to be the best in class and be the preferred domestic Ship Management Company employing unbeatable excellence in service, maintenance, accessibility, systems development, process re-engineering to ensure best-value and lower costto-serve transactions for our Principals. These, while ensuring compliance to maritime conventions on safety and environmental protection.

Vision

Organizing at the level of the organization involves deciding how best to departmentalize, or cluster, jobs into departments to coordinate effort effectively. Shogun & PortaVaga should consider structuring its organization from a functional departmentalization and mechanistic configuration. Functional structures group jobs based on similarity in functions. . Functional structures tend to be effective when an organization does not have a large number of products and services requiring special attention. Mechanistic structures are those that resemble a bureaucracy. These structures are highly formalized and centralized. Communication tends to follow formal channels and employees are given specific job descriptions delineating their roles and responsibilities. The main advantage of a mechanistic structure is its efficiency. Therefore, in organizations that are trying to maximize efficiency and minimize costs, mechanistic structures provide advantages. New businesses often suffer from a

lack of structure, role ambiguity, and uncertainty. With this structure, and a comprehensive job design and functional description of the duties of the employees, the communication line is simplified and the ownership of outcomes can easily be mandated and evaluated. The Management must also make sure that the employee competencies and duties are properly matched. See the proposed structure below. Aside from the organizational structure concern, another necessary factor must be given importance the organization culture. Here, since Shogun & PortaVaga is a new company, the organization culture must come from leadership competencies of the CEO and the managers. One thing must be observed and dealt with as early as now and it is the presence of groupthink . It is the psychological drive for consensus at any cost that suppresses disagreement and prevents the appraisal of alternatives in cohesive decision-making groups. It is the unanimity that contributes to blunders, oversights, and distorted decision making. When this happens to an organization, dissenting ideas might be shut down and it would pave the way to an autocratic running of the company without check and balance. An open environment for discussion must be adopted.

Leading involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives. To become effective at leading, managers must first understand their subordinates personalities, values, attitudes, and emotions. The main concern right now is the capacity of the top leaders to weigh their leadership style properly and realign it towards an approach that would intensify commitment and workforce motivation that would eventually lead to the achievement of business goals and direction. Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or to manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the manager s role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives. Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. Given these, the amount of efficiency in the systems and processes would remain dependent on the well defined business direction, organizational structure, job design, and the openness and will of the leaders to adapt to changing situational needs.

SUMMARY OF PLANNING RESULTS TOWARD A CREATION OF THE SHOGUN & PORTAVAGA CORPORATE DIRECTION

Culture/Leadership
Culture
From the Planning Session A good working environment promotes better output for employees Good rapport between leaders and staff for more open and better working relationships Differentiaiton between Shogun & PortaVaga and Shogun Recommendations Here, the major concern should be focused on a basic idea of what a good working environment is or should be. How would we define the work culture within Shogun & PortaVaga? How can we create a cohesive working environment with the individual values of the employees and the foreseeable corporate value of Shogun & PortaVaga (if there is one already)? Related to this, how would we measure the better output of employees in terms of productivity? Recommendations: y Shogun & PortaVaga should espouse a set of corporate values that the employees should incorporate in their attitude towards work. y The role of employees should be defined clearly within the boundaries of the business direction and strategies. y A set of Key Performance Indicators relative to the position and role of the employees must be established for Shogun & PortaVaga to have a clear and transparent and quantifiable measure for workforce performance and coaching. y An open door policy must be embraced within the organization must be established. All employees should have the opportunity to air out their feedback concerning work related

concerns, whether they be constructive criticisms concerning office politics or process improvement ideas. Shogun & PortaVaga needs to build around a core ideology-- core values and a sense of purpose beyond just making money. A deeply held core ideology gives a company both a strong sense of identity and a thread of continuity that holds the organization together in the face of change. A successful climate is dependent upon the leader's personal authority, perceived commitment, trustworthiness, and ability to communicate, motivate and inspire. Shogun & PortaVaga must build around three highly desirable cultures - Performance, Customer-Centric and One-Team. How can you assess if investment in culture is wise for your organisation? Start by answering these questions:

1. Do you have evidence that your competitors are faster, more innovative and leaner than you are? 2. Do good people leave, or choose not to join, your company because it is a frustrating place to work? 3. Is there an opportunity to really differentiate yourself in your industry on the quality of customer experience? 4. Do you waste time and money on starting too much, and failing to complete successfully? 5. Does your strategy fail to get implemented? 6. Have those individuals in key leadership positions shown openness to the possibility of learning and changing themselves? (This question is the key enabler and if you are one of

these individuals.)

Additional Information: Learning Anchors Reference: Barker, Carolyn & Coy, Robyn. The Power of Culture: Driving Today s Organization. McGraw-Hill, 2004.

Culture is about messages . . . so, culture management is about message management. To change a culture you have to recognise the sources of the messages your people receive about what is valued and then change them. This task is a logical and systematic process, but not an easy one. Messages come from three broad sources (outlined in table 1.1):
y

Messages from behaviour. The management team and those people considered important in your organisation are watched by others. They are role models and their behaviour is carefully observed. Their actions send messages to your people about what is expected around here'. These messages are much stronger than any spoken messages from the management team. That is why it is important for leaders to walk the talk'. Cultural messages are picked up from the walk', not the talk'. Your people will watch the decisions their leaders make, how they spend their time and the quality of their interactions with others. Since your organisation has rewarded these individuals with positions of importance, it is a reasonable assumption that their behaviours are the ones required to succeed.

Messages from symbols. Symbols are actions, decisions and situations visible to a large number of your people and to which those people attribute meaning. Often the attributed meaning goes far beyond the scope of the individual circumstance. Highly visible symbols, such as how time and money are spent, where priorities are placed, who gets promoted and how office space is assigned, are seen to represent the deeper value set about what is important around here'. Symbols provide an important leverage point for culture change, because small events can send big messages.

Messages from systems. Your organisation's systems reward, measure, manage and communicate what has been deemed as important up until this point. They direct a lot of focus and effort, and thus send cultural messages about what the organisation values. A lag time between changing culture and changing systems means that there may be a

hangover from a previous value set. Business, financial and HR processes set a cultural framework for behaviours and values. Therefore, managers such as the Chief Financial Officer may control important and often unrecognised levers for changing culture. Table 1.1: Cultural messages Source Behaviour How the cultural message is delivered
o o o o

1-on-1, in teams, in larger forums senior managers and key influencers relationships with peers, internal customers and suppliers what is said and what is done where time is spent where resources are invested physical environment what and who is rewarded, promoted, dismissed who is involved in what use of values statements rituals goal-setting, planning and budgeting reporting and measurement reward performance management process communication processes career development feedback and correction mechanisms structure

Symbols

o o o o o o o

Systems

o o o o o o o o

Culture is your business, not something you have on the side. Culture influences what we value and what we believe is important. It influences how we feel, and our motivation-it is either motivating or demotivating, depending on whether it galvanises or saps energy. Culture guides our behaviours, symbols and systems, which in turn produce outcomes that contribute to or detract from the organisation's performance. It strongly influences the decisions your people make, how they spend their time, and the nature of their interactions with people inside and outside your organisation. Figure 1.1: The influence of culture on performance

The business case for investing in cultural change is based on the fact that a positive culture can improve such performance-enhancing behaviours (summarised in table 1.2) as:
y

Speed. Decision making and execution that is on time, on budget' are strongly influenced by culture. In high-performance cultures people make rigorous decisions, with high buy-in, and stick with them through implementation. Accountability. Culture determines how seriously accountability is taken. It can establish an expectation of delivering what was promised . . . or an environment of justification, blaming and avoidance. Rigour. High-quality decisions require high-quality input, and this requires a culture where people feel free to challenge, listen to others, learn from mistakes and have

transparent, fact-based information. In many organisations these qualities are not embedded, and decision making suffers. Simplicity. Much organisational effort is channelled into people blowing their own trumpets, playing political games, burying facts and focusing on looking good rather than delivering an outcome. Simplicity occurs in cultures where these behaviours have been virtually eliminated. Collaboration. Collaboration between individuals and teams is essential to successfully service customers across complex organisational processes, and to avoid duplication of effort or silo-ed' businesses. Strong cultural norms are required to instil expectations of collaboration and thus achieve these organisational benefits. Attractiveness. Great cultures are contagious. People feel good working in organisations that have them and they want to stay; others want to join and customers can feel the vibe. Table 1.2: Performance-enhancing behaviours Behaviour Speed Outcomes
o o o

responsiveness to market changes decision making implementation consistency of delivery what gets promised gets done strategy linked to action linked to individuals lack of group think management of risk willingness to challenge lack of waffle lack of padding lack of duplication no silos group benefits override individual seamless delivery to the customer keeping the people you want strong employment brand having customers feel your people care

Accountability

o o o

Rigour

o o o

Simplicity

o o

Collaboration

o o o o

Attractiveness

o o o

Table 1.3: Three cultures that offer potential business advantage Culture Performance Culture Customer-Centric Culture One-Team Culture Descriptors achievement, accountability, focus, speed, delivery, meritocracy, discipline, rigour customer focus, service, responsiveness, external focus, relationships teamwork, collaboration, globalisation, internal customers

The Performance Culture This can be defined as: A culture in which individuals, teams and the organisation achieve what they agree to achieve. Other words that can be used for this are: accountability, achievement, focus, speed, delivery, discipline, meritocracy and rigour. In a Performance Culture people deliver on their promises. When they say I can do this', whether it is to meet an annual target or fulfil a commitment to complete a report by Friday, it occurs. Rewards and consequences are aligned to delivery. The results are speed and focus because people are conscious of what they commit to; they assess risks more carefully and complete what they start. This provides confidence that what is targeted will be achieved. Table 1.4 provides a vivid description of such a culture. As you read through it, think about how building such a culture might increase performance and business opportunities for your organisation. Table 1.4: Characteristics of a Performance Culture Clarity
y y y y y

Vision, strategy and priorities framework agreed and communicated Vision, strategy and priorities stay consistent long enough to determine their success Roles defined with tight performance measures and indicators (metrics) and targets for each individual Individual contribution to strategy and team targets defined explicitly Trade-offs surfaced and resolved by the team

Discussions end in next-step actions Top-down stretch targets communicated at commencement of budgeting process Rigorous debate prior to target sign-off, none afterwards Open debate on balance between stretch and risk Individual objectives include target and stretch figures Stretch bar lifted every year Uncapped over-achievement bonuses for individuals The line is held in the face of non-delivery-no excuses Figures on major performance indicators and measurements available at least monthly Individual performance transparent to the team-indicators, measurements and milestones No surprises-mistakes and non-delivery communicated Individuals do what they say they will, they deliver on promises Meetings start and end on time Plan for steps and risks (how it will be delivered) carried out against each target Individuals held accountable for outputs with authority to design inputs Management Information Systems (MIS) used to identify non-delivery immediately Rapid correction, with alternative steps put in place in the case of performance variation Individuals held accountable despite the failure of others to deliver (interdependencies) Delivery and non-delivery acknowledged Current performance and potential plotted for all employees Promotions made against succession plans-internal promotions preferred, fast tracking common Individuals who do not meet financial targets and behavioural standards dismissed-no more than one year of non-performance Reward structure allows for large variation between top and bottom performers Complete alignment of reward and performance

Stretch

y y y y y y y

Transparency

y y y

Personal responsibility

y y y y y y y

Meritocracy

y y y y

y y

Teamwork

y y y y y

Strategy and prioritisation agreed together, implemented individually Tactics for addressing non-performance by individual areas discussed by the team Over-compensation by other areas and/or sharing resources expected Individual bonuses only paid if team of which individual is a member achieves targets Once decisions are made, they are stuck to

Would you benefit? Signs that your organisation would benefit from building a Performance Culture include:
y y y

y y

a lack of focused strategy, doing a little of too many things, failure to invest primarily in one area and gain a competitive advantage there failing to stop something, remaining in an unprofitable sector/product for too long, not cancelling projects that are not turning out well a decision that took too long to make, and the accompanying rework associated with further researching or redrafting the proposition; the loss of competitive advantage, or cost reduction, caused by this individuals being allowed to under-perform over a long period of time, and the impact of this on the area they lead overuse and misuse of consultants, who often seem to end up almost running the show, in the absence of a disciplined, accountable internal team equipped to use external expertise wisely over-optimistic or over-conservative goal-setting, resulting in under-performance.

Business benefits Adopting a Performance Culture will provide the following business benefits:
y y y y y

increase in the overall performance capability of your organisation decrease in the risk that you will not achieve performance targets increase in speed of decision making and execution greater focus, doing fewer things very well, and completing them becoming the employer of choice for high achievers.

Harnessing your strengths These characteristics will facilitate building a Performance Culture. Do they already exist in your culture?
y y y

a desire to win the pursuit of excellence genuine effort and hard work.

Other motivators include:


y y

frustration with a lack of focus and speed a performance crisis.

Leadership beliefs The leadership team must be prepared to champion the following beliefs:
y y y y y

There are no excuses-by taking personal responsibility you can find a way around obstacles to deliver. The employment contract is a contract for outputs, not just effort. Transparency of individual performance and its consequences is fair. Procrastination is as costly as making a wrong decision and correcting. Holding on to non-performers is unfair to them and their team-mates.

Leadership values The leadership team must have the following values:
y y y y

meritocracy integrity (my word is my bond) truthfulness transparency.

The Customer-Centric Culture This can be defined as: A culture in which an intimate understanding of the customer drives everything. Other words that can be used for this are: customer focus, service, responsive, externally focused, relationships. The Customer-Centric organisation is designed from the outside in. Everybody understands the customer and can see how the customer will be affected by what they do. There is a strong conviction that customer satisfaction will deliver more sales. The driver for decision making is whether what is proposed will make it easier, faster, cheaper or more pleasurable for the customer. With this single-mindedness an extraordinary amount of waffle and activity-itis' just falls away. Everyone is turned in the same direction. Table 1.5 provides a picture of a culture geared to make an organisation a winner in the customer satisfaction stakes. As you read through it, think about how building such a culture might increase performance and business opportunities for your organisation. Table 1.5: Characteristics of a Customer-Centric Culture Empathy
y y y y y y

People love to help and they show empathy for the customers' point of view People act in the interests of the customer, show curiosity and enthusiasm, and are willing to take a stand for customers Staff are diverse, reflecting the broader community People are recognised for going the extra mile for customers Listening is a valued skill; feedback is seen as a chance to learn and adapt People connect with the customer on a practical and personal level Leaders are in touch' with customer issues; create a future from a profound understanding Insights include the diversity of customer needs and profiles and a focus on future possibilities Front-line staff and leaders get customer feedback Thinking ahead for customer, short term and long term Everything is viewed through customer eyes Customer advocacy highly respected Flat structure

Insight

y y y y y y

Openness

y y y y y y y

Everyone has a clear line of sight to the customer Processes demonstrate trust in staff, trust in customers High delegation/authority/autonomy/at front line Knowledge shared openly between areas Complaints are learning opportunities Continuous improvement of customer-facing technology, process and interactions Information is easily and openly shared with the customertransparency, plain English, truth and speedy responses are hallmarks When things go wrong the whole organisation stands together to fix it for the customer Environment facilitates cross-organisation communication; discourse about customers is shared horizontally Deep internal processes link to the customer Leaders are seen at customer interfaces, senior staff rotate through customer-facing loci Seat of knowledge about customers, present and future, lies high in company, not at the edges Celebrations are of customer-related achievements Rituals are based on relationships Job design geared to customer satisfaction Mind-set and behaviours have the customer experience constantly at their heart Decisions and attitudes have the customer top of mind' Systems and environments are designed to maximise the customer experience Customer values come first, even when it costs the companyvalues such as honesty, openness, trustworthiness, fairness, integrity and pride Bias toward relationship is brought to life from the top Leaders explain business strategy in terms of the customer Behaviours, systems and symbols show people matteremployees, customers and other stakeholders All projects face the customer Energy, money and time expended on thinking ahead to continuously improve experience Explicit, vivid service excellence goals Training and development linked to business strategy for

Common purpose

y y y y y y y y

Living values

y y y y

Priority no. 1

y y y y y y

customer experience Performance measured against customer-facing behaviour

Would you benefit? Signs that your organisation would benefit from building a Customer-Centric Culture include:
y y y

high customer turnover plus a high cost for winning new customers the complexity of too many products, and the associated costs of training, tracking, servicing, manufacturing and processing new market entrants and customers finding alternative ways of meeting a need that previously was fulfilled by you.

Business benefits Adopting a Customer-Centric Culture provides the following benefits:


y y y y

facilitates customer loyalty, enabling you to win the customer retention game positions you to quickly pick up and respond to changes in customer needs builds pride at every level of the business, especially the front line forces empowerment and simplicity of process that in turn reduces cost.

Harnessing your strengths The following characteristics will facilitate building a Customer-Centric Culture. Do they already exist in your culture?
y y y

a front line whose loyalties lie with the customer more than with the organisation a relationship bias; a liking for people humility; a lack of arrogance.

Other motivators include:


y y

products that are much of a muchness in the customer's eyes the removal of an artificial facilitator of performance, such as favourable regulation or barriers to entry.

Leadership beliefs The leadership team must be prepared to champion the following beliefs:
y

Those closest to the customer know more about their needs than the leadership team.

y y y

It is possible to satisfy customers and have low costs. Customer perception is the truth (the customer is always right). One day, a competitor will emerge who cracks the customer satisfaction challenge in your industry.

Leadership values The leadership team must have the following values:
y y y y y

listening honour relationship learning reliability.

The One-Team Culture This can be defined as: A culture in which the good of the whole is placed ahead of the good of the individual or subgroup. Other words that can be used for this are: global, collaborative, internal customer, teamwork, supportive. Your challenge may not be quite as great, but do not underestimate what it takes to create this economically attractive culture in your organisation. Table 1.6 provides a vivid description of such a culture. As you read through it, think about how building such a culture might increase performance and business opportunities for your organisation. Table 1.6: Characteristics of a One-Team Culture Big picture
y y

y y

Group goals and how each area fits in understood Problems are resolved with the big picture in mind-areas do not design short-term solutions which leave difficulties for the broader business Performance management system acknowledges sacrifice made for the good of the group Trade-offs surfaced and explicitly resolved

Individuals are encouraged to move across the organisation in career development Mind-set exists that the other's intentions are good One area does work on behalf of another One area does not succeed at the expense of another unless this is explicitly discussed A job is done once for the whole group unless there are strong reasons for local variation When priorities are agreed, individual areas do not initiate activities outside these parameters Peer behaviour review is a key component of performance evaluation Information is shared freely Opportunities are spotted by one area and given to another to capitalise on (e.g. cross-selling) Shared accountability-areas that are struggling are given help (resources, ideas) by others Rapid correction with alternative steps put in place in the case of performance variation-one team will compensate for another When a decision is made, individuals speak and act supportively of it Teams operate selflessly on behalf of other teams Every team member understands the others' individual roles Performance requirements for one role are discussed with another where efforts may appear in conflict-tensions are managed explicitly Individuals are held to account for different Key Performance Indicators (KPIs) by different leaders within a matrix structure Conflicting priorities caused by the matrix are resolved openly and constructively Individuals are trusted to play their role without interference Fewer meetings; distinctions between information sharing and decision making clear Peers negotiate directly with each other to deliver what each requires KPIs signed off by dependant colleagues are at least as high in priority as delivery to the boss

Trust

y y y y y y

Support

y y y y

y y

Individual accountability

y y

y y y y

Reliability

y y

y y

My word is my bond' is a commonly held value and practice Delivery and non-delivery acknowledged Best practice is transferred quickly Formal processes to bounce ideas off colleagues are in place Frequent feedback on behaviour and performance Post-implementation reviews occur on projects and initiatives Experience is valued and requests for help common

Learning

y y y y y

Would you benefit? Signs that your organisation would benefit from building a One-Team Culture include:
y y y y y y

additional costs of duplication of effort delays caused by decisions made then revisited cost of non-alignment to strategy, of getting into things that are not on purpose' lack of information flow between areas resulting in lost opportunities (e.g. cross-selling) performance of one area achieved at the expense of the performance of another failure to deliver the synergies of a merger of companies or divisions.

Business benefits Adopting a One-Team Culture would provide the following business benefits:
y y y y y y

Customers experience a seamless service and cross-business processes work effectively. Best practice is picked up across the group, so standards rise quickly. Activities are done once for the group; effort is not duplicated unless there is a strong business rationale. A much leaner cost base can be achieved. Resources are easily focused where most needed-under-performing areas, opportunities for quick market wins. Mergers between companies, divisions or teams occur quickly, and planned synergies are realised.

Harnessing your strengths The following characteristics will facilitate building a One-Team Culture. Do they already exist in your culture?
y y

a love of new ideas a desire to be involved

y y

caring; a human touch a social environment.

Other motivators include:


y y

serious budget cuts, meaning people simply have to depend on each other a common enemy.

Leadership beliefs The leadership team must be prepared to champion the following beliefs:
y y y

What goes around comes around-helping others succeed will facilitate my own success. Most people are well intentioned; their actions have a worthy motivation, even if I do not yet know what it is. Vive la diffrence.

Leadership values The leadership team must have the following values:
y y y y y

generosity cooperation trustworthiness openness diversity.

Leadership
From the Planning Session Leaders are/should be: Open and approachable Must be caring regardless of employee status Must make the necessary adjustments/revamps on positions to maximize one s skill Respects functions and need of employees to show innate skills & capabilities Malasakit system Recommendations Recommendations: y Leadership is not the property of one
person but is distributed throughout the group. Respecting roles, boundaries and contributions from all group members is the way that organisations stay healthy.

y y y

The core leadership values of the supervisors and managers must be set in line with the business strategy of Shogun & PortaVaga. Leadership skills orientation, in terms of business processes must incorporate and serve the goals of the business strategy that will be implemented. The supervisors and managers must lead in the formulation of their business units strategic plans under the guidance of the main business direction of Shogun & PortaVaga. The supervisors must embrace the responsibility in bridging individual differences and reshaping office politics. The leadership role doesn t end with the supervisors and managers within the confines of the office, it must also extend to the ships organization and processes. In the end, the main goal should be the creation of a leadership culture that would revolve within the life of the organization. There is a need to retool the capacity of the supervisors and managers in the following areas: strategic thinking, strategic planning, decision making, executive coaching and feedback, negotiation skills, leadership skills, project management, and strategic planning. The success or failure of cultural

change will depend on the attitude of the leadership team. They must be prepared to champion the beliefs and values that underpin the emerging culture. So, if you are in a leadership position, it is important to pick a cultural focus for which you have a natural affinity. Each cultural bias has certain beliefs and values that are so fundamental to it that you should undertake some serious selfexamination to ascertain your capacity to walk the talk'. Leadership Reference: Carpenter, Mason. Principles of Management. Flat World Knowledge, 2009.

If management is defined as getting things done through others, then leadership should be defined as the social and informal sources of influence that you use to inspire action taken by others. It means mobilizing others to want to struggle toward a common goal. Great leaders help build an organization s human capital, then motivate individuals to take concerted action. Leadership also includes an understanding of when, where, and how to use more formal sources of authority and power, such as position or ownership. Increasingly, we live in a world where good management requires good leaders and leadership. While these views about the importance of leadership are not new (see Views on Managers Versus Leaders ), competition among employers and countries for the best and brightest, increased labor mobility (think war for talent here), and hypercompetition puts pressure on firms to invest in present and future leadership capabilities.

Processes and System


From the Planning Session Compliance Management: y Clarify department objectives y Compliance to processes y Proper documentation of voyage y SOPs formalized to manuals y Record Handling y Monitoring of contracts y Business intelligence and market competitor analysis y Should have clear reporting lines and coordinating lines y Crew accountability y Risk analysis y Should have objective evaluation y Report of department goals y Set policy and standards y Performance evaluation should be in line with the objectives, company values, career enhancement and attainment of department goals y Recommendations Business units should have a good grasp of the following: A) Resource Planning. A Resource Plan summarizes the level of resources needed to complete a project. A properly documented Resource Plan will specify the exact quantities of labor, equipment and materials needed to complete your project. This Resource Planning template also helps you gain approval from your Sponsor, ensuring their buy-in. A Resource Plan is created during the Resource Planning phase of the project. Anyone responsible for Project Resource Management will need to create a comprehensive Resource Plan, to ensure that all of the resources needed to complete the project are identified. By implementing proper Resource Planning practices, it also helps you with budgeting and forecasting project expenditure.

Human Resources: y Resource planning system y Budget system y Record Handling y Key Performance Indicators for employee evaluation y Efficient procurement process y Efficient delivery service (service vehicle for delivery) y Projection of commercial activities y Business intelligence and market competitor analysis y Should have clear reporting lines and coordinating lines y Timely payments to sub-contractors y Efficient processing of VOs, POs, and VPF

B) Risk Management Planning. A Risk Plan outlines the foreseeable project risks and provides a set of actions to be taken to both prevent the risk from occurring and reduce the impact of the risk should it eventuate. C) Quality Management Planning. The purpose of the Quality Management Plan is to describe how quality will be managed throughout the lifecycle of the project. It also includes the processes and procedures for ensuring quality planning, assurance, and

y y y y y

y y y y y y y y

Risk analysis Should have objective evaluation Report of department goals Set policy and standards Performance evaluation should be in line with the objectives, company values, career enhancement and attainment of department goals Should have competitive employee benefits and package Should ensure quality of service Should have code of discipline Should have a program for staff development Should ensure good public relations and analytical skills Crew incentive program Recruitment of additional staff knowledgeable in crewing Have highly skilled, competent, motivated and well paid personnel

control are all conducted. All stakeholders should be familiar with how quality will be planned, assured, and controlled. y D) Schedule Management Planning. The purpose of the schedule management plan is to define the approach the project team will use in creating the project schedule. This plan also includes how the team will monitor the project schedule and manage changes after the baseline schedule has been approved. This includes identifying, analyzing, documenting, prioritizing, approving or rejecting, and publishing all schedulerelated changes. E) Procurement Management Planning. This Procurement Management Plan sets the procurement framework for this project. It will serve as a guide for managing procurement throughout the life of the project and will be updated as acquisition needs change. This plan identifies and defines the items to be procured, the types of contracts to be used in support of this project, the contract approval process, and decision criteria. The importance of coordinating procurement activities, establishing firm contract deliverables, and metrics in measuring procurement activities is included. F) Scope Management Planning. This plan documents the scope management approach; roles and responsibilities as they pertain to project scope; scope definition; verification and control measures; scope change control; and the project s work breakdown structure. Any

Technical/Marine Management: y Upgrade vessel equipment y Proper documentation of voyage y Downtime of vessels y Should have own shipyard for repair y Risk analysis y Should have objective evaluation y Report of department goals y Set policy and standards y Performance evaluation should be in line with the objectives, company values, career enhancement and attainment of department goals y Vessel Dry-docking Program (Avoid Emergency Repairs/ Improve Target Dry-docking Schedule/ Budgeting Consistent Monitoring/

Implementation of PMS y y y y Centralize Documentation/ Recording Minimize the Cost SIRE Compliance Work should be based on Maritime Industry Standards/ OCIMF/ ISGOTT/ IBC Code/ IGC Code, etc. Close monitoring of vessel performance to maximize vessel utilization Improve Crew Capacity y y Strict SMS Compliance/ Keeping vessel records/ History Close monitoring of cargo/ Proper accounting of Cargo/ Ensure no pilferage) y

project communication which pertains to the project s scope should adhere to the Scope Management Plan. The Human Resource Unit should formulate and have a Performance Review template to create a more credible and objective evaluation of the employees. It must also measure job satisfaction in such tangible areas as pay, benefits, promotional opportunities, and working conditions, but also to gauge how individual and group behavior patterns influence corporate culture, both positively and negatively. In general, the unit managers and supervisors, aside from being well versed in the different planning scope and approaches should, in turn, provide diligent support in the formation of the business direction and strategic plan of the company through being resolute and keen on their own units inclusive planning. Improvement and focus on employee safety. Targets should be based on Maritime standards. May even target zero accidents.

Need to set effective standard s for seafarers conditions of work to ensure that they work under acceptable conditions where their health and safety and the safety of the ships on which they work on are assured. How do we develop our own strategic approach and translate it to operational actions?

Need to develop sustainable training programs and interventions for the continuous development of the staff and crew to gain a competitive workforce performance. Need to integrate and form a Marketing Unit to create and handle marketing strategies that would propel the business direction forward. The marketing unit should also lead in the client, partner, and customer management area. Also, the unit should implement a regular competitor analysis that would inform the business direction and strategic plan of Shogun & PortaVaga.

High-level objectives are developed that reflect the overall strategy of the company. Business objectives are then developed at the department level to support overall company objectives. And every employee has individual objectives that support overall strategies. The accumulation of activities that takes place in each business process is what ultimately determines a company s success. So process must be analyzed to ensure that they support key business objectives. Process analysis is particularly useful in ensuring the accomplishment of business objectives relating to customer service, efficiency, effectiveness, and profitability. Reference: Jacka, Mike & Keller, Paullete. Business Process Mapping. John Wiley & Sons, Inc., New Jersey, 2009.

Structure
y y y y From the Planning Session Must be independent but aligned with partner company Should be flexible Functional roles must be observed Well defined organizational structure that will yield high productivity from all units. Operational set-up should be standard within the two organizations Recommendations We should make sure that the following are taken into consideration: y Reporting relationships that are currently in place. Reporting and authority relationships that you hope will be implemented in the future. Optimum ratios of supervisors/managers to subordinates. Suitable level of autonomy/empowerment to be granted to employees at various levels of the organization (while still recognizing individual capacities for independent work). Structures that will produce greatest worker satisfaction. Structures that will produce optimum operational efficiency. Incorporation of core leadership values and executive coaching across the hierarchy of the organization. Is your team complete, or are there gaps still to be filled? Is your organizational structure sound, with job descriptions and logical responsibilities for all the key members? It is far better to define and identify a weakness than to pretend it doesn't exist. Specify where the team is weak because of gaps in coverage of key

y y

management functions. How will these weaknesses be corrected? How will the more important gaps be filled? y Do any managers or employees have "noncompete" agreements? Who is on your board of directors? What do the members contribute to the business? Who are your major stockholders? What is their role in management?

Organizational Structure Reference: Carpenter, Mason. Principles of Management. Flat World Knowledge, 2009. Building Blocks: 1) Centralization:

Centralization is the degree to which decision-making authority is concentrated at higher levels in an organization. In centralized companies, many important decisions are made at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question. Decentralized companies give more authority to lower-level employees, resulting in a sense of empowerment. Decisions can be made more quickly, and employees often believe that decentralized companies provide greater levels of procedural fairness to employees. Job candidates are more likely to be attracted to decentralized organizations. Because centralized organizations assign decision-making responsibility to higher-level managers, they place greater demands on the judgment capabilities of CEOs and other high-level managers. Many companies find that the centralization of operations leads to inefficiencies in decision making. However, centralization also has its advantages. Some employees are more comfortable in an organization where their manager confidently gives instructions and makes decisions. Centralization may also lead to more efficient operations, particularly if the company is operating in a stable environment. Centralize strategic approach to business with the participation and input of the managers and supervisors, while, the operations processes must be decentralized.

2) Formalization: Formalization is the extent to which an organization s policies, procedures, job descriptions, and rules are written and explicitly articulated. Formalized structures are those in which there are many written rules and regulations. These structures control employee behavior using written rules, so that employees have little autonomy to decide on a case-by-case basis. An advantage of formalization is that it makes employee behavior more predictable. Whenever a problem at work arises, employees know to turn to a handbook or a procedure guideline. Therefore, employees respond to problems in a similar way across the organization; this leads to consistency of behavior. While formalization reduces ambiguity and provides direction to employees, it is not without disadvantages. A high degree of formalization may actually lead to reduced innovativeness because employees are used to behaving in a certain manner. In fact, strategic decision making in such organizations often occurs only when there is a crisis. A formalized structure is associated with reduced motivation and job satisfaction as well as a slower pace of decision making.

3) Hierarchical Levels:

Another important element of a company s structure is the number of levels it has in its hierarchy. Keeping the size of the organization constant, tall structures have several layers of management between frontline employees and the top level, while flat structures consist of only a few layers. In tall structures, the number of employees reporting to each manager tends to be smaller, resulting in greater opportunities for managers to supervise and monitor employee activities. In contrast, flat structures involve a larger number of employees reporting to each manager. In such a structure, managers will be relatively unable to provide close supervision, leading to greater levels of freedom of action for each employee. Research indicates that flat organizations provide greater need satisfaction for employees and greater levels of self-actualization. While employees report that flat structures are better at satisfying their higher-order needs such as self-actualization, they also report that tall structures are better at satisfying security needs of employees.

4) Departmentalization: Organizational structures differ in terms of departmentalization, which is broadly categorized as

either functional or divisional. Organizations using functional structures group jobs based on similarity in functions. Such structures may have departments such as marketing, manufacturing, finance, accounting, human resources, and information technology. In these structures, each person serves a specialized role and handles large volumes of transactions. For example, in a functional structure, an employee in the marketing department may serve as an event planner, planning promotional events for all the products of the company. In organizations using divisional structures, departments represent the unique products, services, customers, or geographic locations the company is serving. Thus each unique product or service the company is producing will have its own department. Within each department, functions such as marketing, manufacturing, and other roles are replicated. In these structures, employees act like generalists as opposed to specialists. Instead of performing specialized tasks, employees will be in charge of performing many different tasks in the service of the product. Each type of departmentalization has its advantages. Functional structures tend to be effective when an organization does not have a large number of products and services requiring special attention. When a company has a diverse product line, each product will have unique demands, deeming divisional (or product-specific) structures more useful for promptly addressing customer demands and anticipating market changes. Functional structures are more effective in stable environments that are slower to change. In contrast, organizations using product divisions are more agile and can perform better in turbulent environments. The type of employee who will succeed under each structure is also different. Research shows that when employees work in product divisions in turbulent environments, because activities are diverse and complex, their performance depends on their general mental abilities.

Two Configurations: Mechanistic and Organic Structures The different elements making up organizational structures in the form of formalization, centralization, number of levels in the hierarchy, and departmentalization often coexist. As a result, we can talk about two configurations of organizational structures, depending on how these elements are arranged. Mechanistic structures are those that resemble a bureaucracy. These structures are highly formalized and centralized. Communication tends to follow formal channels and employees are given specific job descriptions delineating their roles and responsibilities. Mechanistic organizations are often rigid and resist change, making them unsuitable for innovativeness and taking quick action. These forms have the downside of inhibiting entrepreneurial action and discouraging the use of individual initiative on the part of employees. Not only do mechanistic structures have disadvantages for innovativeness, but they also limit individual autonomy and self-determination, which will likely lead to lower levels of intrinsic motivation on the job.

Despite these downsides, however, mechanistic structures have advantages when the environment is more stable. The main advantage of a mechanistic structure is its efficiency. Therefore, in organizations that are trying to maximize efficiency and minimize costs, mechanistic structures provide advantages. Mechanistic structures can also be advantageous when a company is new. New businesses often suffer from a lack of structure, role ambiguity, and uncertainty. The presence of a mechanistic structure has been shown to be related to firm performance in new ventures.

In contrast to mechanistic structures, organic structures are flexible and decentralized, with low levels of formalization. In Organizations with an organic structure, communication lines are more fluid and flexible. Employee job descriptions are broader and employees are asked to perform duties based on the specific needs of the organization at the time as well as their own expertise levels. Organic structures tend to be related to higher levels of job satisfaction on the part of employees. These structures are conducive to entrepreneurial behavior and innovativeness.

Key Takeaway The degree to which a company is centralized and formalized, the number of levels in the company hierarchy, and the type of departmentalization the company uses are key elements of a company s structure. These elements of structure affect the degree to which the company is effective and innovative as well as employee attitudes and behaviors at work. These elements come together to create mechanistic and organic structures. Mechanistic structures are rigid and bureaucratic and help companies achieve efficiency, while organic structures are decentralized, flexible, and aid companies in achieving innovativeness.

Target: To be a Learning Organization

A learning organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge. In learning organizations, experimenting, learning new things, and reflecting on new knowledge are the norms. At the same time, there are many procedures and systems in place that facilitate learning at all organization levels. In learning organizations, experimentation and testing potentially better operational methods are encouraged. This is true not only in response to environmental threats but also as a way of identifying future opportunities. Learning organizations are also good at learning from experience their own or a competitor s.

To learn from past mistakes, companies conduct a thorough analysis of them. Some companies choose to conduct formal retrospective meetings to analyze the challenges encountered and areas for improvement. To learn from others, these companies vigorously study competitors, market leaders in different industries, clients, and customers. By benchmarking against industry best practices, they constantly look for ways of improving their own operations. Learning organizations are also good at studying customer habits to generate ideas.

Other References: Jain, Subhash. Marketing: Planning and Strategy. South Western Publishing, 1999. Inc.com Hbr.org