Synergy Development and Use Dr. Fred Mugambi Mwirigi JKUAT.

Synergy Development and Use

Dr. Fred Mugambi Mwirigi

JKUAT

Introduction

Businesses and business units cannot afford to operate in silos

A lot of capacity is lost because of failure to develop and harness intra-business and inter-business synergy

Businesses and business units must identify and harness synergies in order to optimize their performance

Chapter 16 - Organizational Issues PPT 16-3

KenyaSoftware Marketing HR

ICT Production

Functional Silos

Nigeria

TrainingProjectors Rwanda S. Africa

Product Silos Country Silos

The Silo World

Hardware

Silo-Driven Problems

1. Misallocation of resources

2. Lack clarity & linkage

3. Competence not diffused across silos

4. Success is not leveraged across silos

5. Communication and cooperation weak


A Framework for Analyzing Organizations

People Structure

Systems Culture

People Structure

Systems Culture

External AnalysisExternal Analysis

StrategyStrategy

Internal AnalysisInternal Analysis

PerformancePerformance

Obtaining Information about Organizational Components

Structure What is the organization’s structure? How decentralized

is it? What are the lines of authority and communication? What are the roles of task forces, committees,

organizations, or similar mechanisms?



Systems How are budgets set? What is the nature of the planning system? Does it

happen in all silos? How is inter-silo planning coordinated? What are the key measures used to evaluate

performance? How does the accounting system work? How do product and information flow?



People What are the skills, knowledge, and experience of the

firm’s employees? What is their depth and quality? What are the employees’ expectations? What are their attitudes toward the firm and their jobs?



SharedValuesSharedValues

Norms of BehaviorNorms of Behavior

Symbols andSymbolic Action

Symbols andSymbolic Action

Obtaining Information about Components

Organizational Culture

Figure 16.3

OrganizationalCulture


Culture Are there shared values that are visible and accepted? What are these shared values and how are they

communicated? What are the norms of behavior? What are the significant symbols and symbolic activities? What is the dominant management style? How is conflict resolved?


Silo-Spanning Objectives


Dysfunctional objectives

Centralize Standardize Reduce the number of

divisions or agencies Singularity

Appropriate objectives— to improve

Silo-spanningprograms & offerings

Brand consistency & linkage Resource allocation and sharing Marketing competence Communication & cooperation

Prerequisites for Building Synergies

Sobering Implications: Identify the real need for synergy and the intended outcomes as a result of the synergy

Common goal: focus on a common and relevant purpose, shared activities and minimize or eliminate time spent on nonessential concerns and issues

Interdependence: realize the need for unified action to maximize the participation of each key player

Stages in Synergy Development

1. Interacting

2. Appreciative Understanding

3. Integrating

4. Implementing

Interacting

Synergistic communication occurs when diverse perspectives, ideas, meanings, attitudes, feelings, and values are expressed and received openly and honestly in a supportive environment.

Appreciative Understanding

This is a nurturing atmosphere characterized by people who recognize and value their distinct frames of reference regarding the task at hand.

Integrating

Only when appreciative understanding is established can individuals seek ways to merge or combine their separate views into mutually supportive patterns for thinking and acting.

It is during this integration phase that individuals invent and experiment with creative ways to move beyond their current thinking.

Implementing

Merely finding innovative approaches to integrate various viewpoints is not enough.

It is only through active planning, goal setting, discipline, and consistent application of various change facilitating methods that a transition can be successfully achieved.

Without a structured implementation plan, the likelihood is low that a synergistic advantage will occur

Leadership Roles in Synergy Building

Get the CEO on Board Get the right people Cross-silo teams Get easy wins Be facilitator/consultant Engage the business units Deliver excellence Balance central opportunities with local needs



In conclusion

• The organizational levers are structure, systems, people, and culture. Each must be congruent and support the business strategy.

• Decentralization with powerful silo groups can inhibit synergy and efficiency.

• For marketing, it leads to misallocation of resources, confused brands, inhibited cross-silo offerings and programs, weak marketing staffs, the failure to leverage success, and inadequate cooperation and communication.

The organizational structure lever provides the option to centralize selectively, use teams and networks, use matrix reporting structures, and to employ a virtual organization.

Thank you

Synergy Development and Use Dr. Fred Mugambi Mwirigi JKUAT.

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Transcript of Synergy Development and Use Dr. Fred Mugambi Mwirigi JKUAT.