INDIAN INSTITUTE OF MANAGEMENT M ANAGEMENT BANGALORE PGP Elective: Strategic Leadership Instructor: Professor J. Ramachandran Executive Assistant: Ahmed Khan (
[email protected] [email protected];; Tel# 26993028)
The Strategic Leadership course has been designed as an advanced strategy course for those who aspire for leadership roles. This is not, in conventional terms, a leadership course. While informed by the traditional behavioral literature on leadership in organizations (i.e. motivating people to work well, etc.), the focus in this course is on leadership of organizations (i.e. shaping the firm’s strategic choices). Further, while it builds on the conceptual and analytical tools learnt in the core course on strategy, the analytical thrust of class discussion in this course will not be on seeking explanations of firm performance but on understanding why a firm makes a specific (sequence of) strategic choice(s). choice(s). It provides a platform to debate contentious issues that impact the strategic choices of firms such as the on-going trade-off between profitability and perpetuity. The principal effort is to engage you with the dynamic aspects of leading organizations – the simultaneous pursuit of advantage, opportunity and ambition. Towards this the course brings you upfront and close to the challenges faced by the leadership teams in a wide range of organizations (small & large, Indian and foreign, single and multi-business etc.) across a wide range of industries (automotive to modern art) coping with a variety of strategic and organizational contexts (battling late mover disadvantage, overcoming resource constraints, navigating through conflicting interests, negotiating change). This should not only inform you of the nature of challenges and complexities you are likely to confront in future leadership positions, but more importantly, offer you an opportunity to acquire the requisite judgment skills that would help you negotiate your leadership journey with success. Thus, the learning objectives of the course are: 1. To develop a conceptual and contextual understanding of the drivers of strategic choice(s). 2. To cultivate a capacity for judgment, or strategic choice making under uncertainty, that builds upon the capacity for analytical problem solving developed in the core courses in the program.
Pedagogy The course will employ the case method of instruction. Cases simulate reality, as closely as is possible in the restricted environs of the classroom, and help you experience the interaction between concepts and actions in managerial decision making. Critically, it offers you the opportunity to exercise ‘judgment’ without the concomitant risks that accompany real leadership leadership jobs. 1
Grading The course grade will be based on the following: Class Participation Mid Term Examination Group Project
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Class Participation: I encourage you to actively participate in class - speak up instead of keeping quiet! I am known to cold call students! Good class participation is, in great parts, a function of your preparation. Good case preparation requires you to mentally “get inside” the organization, step into the shoes of the decision-maker and experience the attendant emotions and challenges. Seek support for your arguments from the case facts and where data is missing, make reasonable assumptions. The readings assigned for the case will provide you with broad conceptual inputs required for dealing with the major issues in the case. I would recommend you to prepare for cases in groups, as this would provide you with opportunities to be highly familiar with issues and make nuanced notes even before you get into the class. Once in class, be alert to the emerging discussion and take the initiative to share your thoughts with others as we work jointly to resolve the issues. Class participation will be assessed on the usual criteria of quality and relevance. “Air time” per se would not lead to a better grade! I will look for consistency in participation across different sessions, rather than concentrated participation in one or few sessions. To facilitate marking of your grades for class participation, I request you to occupy the seat assigned for you in the class. Mid Term Examination: It will be a case based exam. Group Project: The Group Project has been designed to enable you to apply the learning from the course. Under this broad umbrella objective, Groups of 3 [I will agree to 4, albeit very reluctantly] students will study a phenomenon of interest to them. For example, consider the transformation in the automotive industry in the last two decades. The issues investigated could range from drivers of structural changes in the industry [e.g., the dramatic transformation in the passenger car segment of the industry]; understanding incumbent firm behavior [e.g., why has Ashok Leyland lagged behind Tata Motors in the commercial vehicles segment of the automotive industry]; entry behavior of multinationals [e.g., why are American majors Ford and GM struggling in the market, while their Asian rivals Hyundai, Honda and Toyota are doing better]. Alternately you could engage with issues of great contemporary interest. These could include making recommendations to, say, Vishal Sikka, the new CEO of Infosys on how to transform the company. Assess whether Sun Pharma should have acquired the troubled Ranbaxy? Help Cyrus Mistry 2
develop a strategy for sustaining the Tata Group over the next 100 years. The above is only an indicative list. Feel free to be imaginative and suggest interesting themes. Each group is expected to email the name of the group members, their roll numbers and three chosen themes in the decreasing order of preference to Ahmed Khan (
[email protected] ) by XXX hrs on XXX day, month, year. Project themes [if there are clashes] would be allocated on first-come first-served basis. We will confirm your group project themes no later than by by XXX hrs on XXX day, month, year. As part of your research you are expected to primarily rely on secondary data. I would encourage you to go beyond information / data available through Google and on the company websites. Make sure that you use the excellent databases (e.g., Factiva, EBSCO, Prowess, Capitaline etc) that are made available at the Institute. Industry reports, interviews/speeches of CEOs etc., may prove to be valuable sources. The source of all data/information used in the project report should be explicitly acknowledged with footnotes/endnotes and a complete list of references. You need to submit two copies of your final report - email the soft copy to Ahmed Khan (
[email protected] ) and submit the hard copy to your program office. There is no particular restriction on the length of the final report. Brevity will be welcome; but not at the cost of clarity! A maximum 15 pages (single spaced, Times Roman 12 point, excluding exhibits) would be a good target to aim for. Final Project reports are due no later than by XXX hrs on XXX day, month, year.
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Course Schedule Introduction Session 1
Strategic Leadership Framework Aldi: The Dark Horse Discounter Discussion Questions: Should Wal-Mart be worried about Aldi? Should Aldi be worried about WalMart? What is Aldi’s strategy? Does it have a competitive advantage? Or is at a disadvantage? In locating its stores, should Aldi avoid locating close to a Wal-Mart store?
Readings:
Integrative Thinking 2.0: A User’s Guide to Your Opposable Mind , Riel & Martin, Rotman Management, 2014. Bringing Science to the Art of Strategy, Lafley, Martin, Rivkin, & Siggelkow , HBR, 2012. Putting Leadership Back Into Strategy, Montgomery , HBR, 2008.
The Content of Strategic Leadership Building and Leveraging Advantage
Session 2
Park Hotels: Designing Experience Discussion Questions: How well has Priya Paul done? Do you think the company has a competitive advantage? Is it sustainable? Why? Why not? What recommendations will you make to her and her top management team?
Readings:
Mastering the “Name Your Product Category” Game , Suarez & Grodal , MIT Sloan Management Review, 2015 In Praise of Dissimilarity, Gibbert & Hoegl , MIT Sloan Management Review, 2011. Can you say what your strategy is? Collis & Rukstad, HBR, 2008.
Session 3
The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire Discussion Questions: Should the Board of Pixar accept a Disney bid? Why? What value does Disney bring to Pixar? Conversely, what value does Pixar bring to Disney? Why not
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continue with the current contract model? If Disney does acquire Pixar what challenges to do you foresee and how would you meet them? Readings:
Transient Advantage, McGrath, HBR, 2013 Uncommon Sense: How to Turn Distinctive Beliefs into Action, Goddard, Birkinshaw, & Eccles, MIT Sloan Management Review, 2012 Desperately Seeking Synergy, Goold & Campbell , HBR, 1998
Session 4
Bharat Forge Limited: Forging Leadership Discussion Questions: How has BFL managed to emerge as a leader in the global forgings industry? Does the company’s decision to invest in building huge capacity ahead of demand make sense? Why did the company restructure its finances and spin off its assets into a separate company? What are the implications of its acquisition of CDP and CDP AT? What next?
Readings:
The liabilities of origin: an emerging economy perspective on the costs of doing business abroad, Ramachandran & Pant, Advances in International Management, 2010 Managing differences: The central challenge of global strategy, Ghemawat , HBR, 2007 Staircases to growth, Baghai et al , The McKinsey Quarterly, 1996.
Session 5
Dr.Reddy’s Laboratories: A Road L ess Travelled Discussion Questions: Analyse the key strategic choices made by Dr. Reddy’s Laboratories. Do you think the strategy is appropriate for a pharmaceutical company based in an emerging market like India? Why or Why Not? Would you consider Dr. Reddy’s to be at an inflection point in 2005? Should the leadership team change the company’s strategy? Why? Why not? If yes, what should the new strategy be?
Readings:
Have you tested your strategy lately? Bradley, Hirt and Smit , The McKinsey Quarterly, 2011 Strategy as Active Waiting, Sull , HBR, 2005 Strategic dissonance, Burgelman & Grove, California Mgmt Review, 1996
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The Content of Strategic Leadership Sensing and Seizing Opportunity
Session 6
Saffronart.com - Bidding for Success Discussion Questions: What created the opportunity for Saffronart? Did Minal and Dinesh Vazirani adopt the right business model to capitalize on this opportunity? What should they do next?
Readings:
The Opportunity Paradox, Bingham, Furr, & Eisenhardt , MIT Sloan Management Review, 2014 The New Psychology of Strategic Leadership, Gavetti, HBR, 2011. Understanding Cultural Industries, Lawrence and Phillips, Journal of Management Inquiry, 2002
Session 7
Indian Software Industry: Changing Landscape Discussion Questions: What factors enabled the Indian software industry to become a global industry? What were the various inflection points in the industry’s path to attain a global status? Do you think 2015 is an inflection point? What should the industry do? And Why?
Readings:
Legitimacy beyond Borders: Indian Software Services Firms in the United States, 1984 – 2004, Pant & Ramachandran, Global Strategy Journal, 2012. How Industries Change, McGahan, HBR 2004 Strategy as ecology, Iansiti & Levien, HBR, 2004
Session 8
Cognizant Technology Solutions: Seamless Integration Discussion Questions: Assess the performance of Cognizant over the years? What do you think has been the key driver(s) of the company’s success? Would you also – like the Goldman Sachs team – pick Cognizant as your top pick in the IT Services Space? Why? Will it still be your pick in 2015? Why?
Readings:
Fair Process: Managing in the Knowledge Economy, Kim & Mauborgne, HBR 2003 Designing Organisations That Are Built to Change: Worley and Lawler , Sloan Management Review, Fall, 2006 Who has the “D”? How clear decision roles enhance organizational performance, Rogers & Blenko, HBR 2006
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Session 9
Open
Session 10
Fabindia: Crafting Success Discussion Questions: Is Fabindia successful? What role has the company’s philosophy played in its success? Should the company have entered the Organic foods space? Body care products? Furniture space? Do you agree with Bissell’s plans to set up community owned supplier region companies? What next?
Readings:
The Higher Ambition Leader, Foote, Eisenstat, & Fredberg, HBR, 2011 Creating shared value, Porter & Kramer, HBR, 2011
Mid Term Exam
The Content of Strategic Leadership Defining and Embedding Ambition
Session 11
i-Flex Solutions Limited: Winning Unconventionally Discussion Questions: How has i-flex emerged as a global leader in the banking solutions space? What role has the company’s guiding principles played in its success? Also evaluate Rajesh Hukku and his team. How would the Oracle acquisition impact the future strategies of i-flex?
Readings:
Paradoxical Leadership to Enable Strategic Agility, Lewis, Andriopoulos & Smith, California Management Review, 2014. The Power of Collective Ambition, Ready and Truelove, HBR 2011 Building Ambidexterity into an Organization, Birkinshaw and Gibson, MIT Sloan Management Review, Summer 2004
Session 12
Ranbaxy Laboratories Limited: Changing Aspirations Discussion Questions: How did Ranbaxy become global generics major? Assess the contributions of the various CEOs? Do you agree with Malvinder Singh’s decision to sell to Daiichi? Do you think Daiichi made the right call in buying the company?
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Readings:
Designing Trustworthy Organizations, Hurley, Gillespie, Ferrin & Dietz , MIT Sloan Management Review, 2013 Managing the Right Tension, Dodd & Favaro, HBR 2006
Session 13
Fujifilm: A Second Foundation Discussion Questions: Evaluate Fuji's transition from from analog photography to digital imaging. How was the firm's behavior shaped by its identity? In its sea rch for a second foundation Fuji has entered a broad range of businesses. What criteria should Komori use to screen opportunities? Should Fuji exit any of its legacy businesses? If Fuji's identity is no longer 'imaging and information' what should it be?
Readings:
The Art of Strategic Renewal, Binns, Harreld, O’Reilly, & Tushman , MIT Sloan Management Review, 2014 Why good companies go bad, Sull, HBR 1999
Session 14
Bajaj Auto Limited: Distinctly Ahead Discussion Questions: What is the nature of the competitive challenge that Bajaj Auto faces? Do you agree with Rajiv Bajaj’s s trategy? Should Bajaj Auto re-enter the scooter segment of the two wheeler industry that it once dominated? How would you compare and contrast the leadership of Rahul Bajaj and Rajiv Bajaj? What have been their respective contributions to the company?
Readings:
From Purpose to Impact: Figure our passion and put it to work, Craig and Snook , HBR 2014 What is the theory of your firm? Zenger , HBR, 2013
The Context of Strategic Leadership
Session 15
Multinational Context Hindustan Lever Limited: On the Path to Growth Discussion Questions: Assess the performance of Hindustan Lever over the years? Specifically, do you agree with the strategy adopted by the immediate past two Chairmen? What were their strategic and organizational challenges? What advice would you give the new team at the helm?
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Readings:
Managing executive attention in the global company’ , Birkinshaw, Bouquet, & Ambos, MIT Sloan Management Review , 2007 What is a global manager, Bartlett & Ghoshal , HBR, 2003 Tap Your subsidiaries for global reach , Bartlett & Ghoshal , HBR 1986
Session 16
High Growth Context ITC Limited: India First Discussion Questions: How has ITC performed over the years? Why has the relation between ITC and BAT so contentious? Have the various Chairmen “done their best for BAT interests in India”? What are the strategic and organizational challenges confronting ITC as of 2012? Do you think the company is well positioned to achieve its aspiration of being the No.1 FMCG Company in the country?
Readings:
Strategy: The Uniqueness Challenge, Zenger, HBR, 2013. Managing in Different Growth Contexts, Prats, Sosna, & Velamuri, California Management Review, 2012 Finding your next core business, Zook, HBR, 2007
Session 17
Transformation Context Transforming the Tata Group: Ratan Leadership Discussion Questions: What is your assessment of Ratan Tata’s leadership of the Tata Group?
Readings:
Sessions 18/19
Readings:
Beyond Institutional Voids: Business Groups, Incomplete Markets and Organizational Form, Manikandan and Ramachandran, Strategic Management Journal, 2015. Why Conglomerates Thrive (Outside US), Ramachandran, Manikandan & Pant , HBR 2013 The right way to restructure conglomerates in emerging markets, Khanna & Palepu, HBR, 1999
Capital Market Context Other People’s Money What We’ve Learned from the Financial Crisis, Fox , HBR 2013 What Good Are Shareholders? , Fox & Lorsch, HBR, 2012. Capitalism for the Long Term, Barton, HBR, 2011 Innovation Killers: How Financial Tools Destroy Your Capacity to Do Things, Christensen, Kaufman, & Shih, HBR, 2008
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Conclusion Session 20
Strategic Leadership & You Robinhood Discussion Questions: What challenges does Robinhood face? What should he do?
Readings:
From “Economic Man” to “Behavioral Economics”, Fox , HBR, 2015. Before You Make That Big Decision, Kahnemann, Lovallo, & Sibony , HBR, 2011 The Judgment Deficit, Bhide, HBR, 2010 How will you measure your life, Christensen, HBR, 2010
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Faculty Profile J. Ramachandran is Professor of Strategy at the Indian Institute of Management Bangalore. His research focuses on the growth and governance challenges of business groups and multinational subsidiaries. His work has been published in the Harvard Business Review , Strategic Management Journal, Global Strategy Journal, Journal of Product Innovation Management , Advances in International Management, Best Paper Proceedings of the Academy of Management USA, IIMB Management Review, Vikalpa and Economic and Political Weekly . Professor Ramachandran is the first Bain Fellow in India. Other recognition for his work includes: the IMD FDC Award for Best Paper in Strategy / IB Theory from the Academy of Management USA; the Tata Steel-IIMB award for best case on corporate social responsibility; best case awards from the European Foundation for Management Development [EFMD], Association of Management Development Institutions in South Asia [AMDISA], The Central and East European Management Development Association [CEEMAN], and Association of Indian Management Schools [AIMS] as well as best teacher awards at IIM Bangalore. A qualified Chartered and Cost Accountant, and a Fellow of the Indian Institute of Management Ahmedabad, Professor Ramachandran has been a Visiting Professor at INSEAD, Fontainebleau, France, the Wharton School of the University of Pennsylvania, USA; and the Carlson School of Management, University of Minnesota, USA. He has also served Indian Institute of Management Bangalore as a member of the Board of Governors. Professor Ramachandran is also actively engaged with the practice of management. He is presently Chairman of Redington (India) Limited and Aditya Auto Products and a member of the Board of Reliance Communications, Sasken Communication Technologies, Allcargo Logistics, ECU-line NV Belgium, and MVP International, USA.
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