152.200 contemporary management

Department of Management

(Manawatu & Wellington)

152.200

Contemporary Management 15 credits

Administration Guide

Single Semester, 2010

Extramural

Paper Co-ordinator Dr Craig Prichard

Acknowledgement

I’d like to thank my friends, colleagues and former students of this and other papers for permission to use some of their stories and accounts of organizational events in the case studies and illustrative content found in this paper.

THIS MATERIAL IS PROTECTED BY COPYRIGHT AND HAS BEEN COPIED BY AND SOLELY FOR THE EDUCATIONAL PURPOSES OF THE UNIVERSITY UNDER LICENCE. YOU MAY NOT SELL,

ALTER OR FURTHER REPRODUCE OR DISTRIBUTE ANY PART OF THIS COURSEPACK/MATERIALS TO ANY OTHER PERSON. WHERE PROVIDED TO YOU IN ELECTRONIC FORMAT, YOU MAY ONLY PRINT FROM IT FOR YOUR OWN PRIVATE STUDY AND RESEARCH. FAILURE TO COMPLY WITH

THE TERMS OF THIS WARNING MAY EXPOSE YOU TO LEGAL ACTION FOR COPYRIGHT INFRINGEMENT AND/OR DISCIPLINARY ACTION BY THE UNIVERSITY.

http://copyright.massey.ac.nz/cll.html#copywarn

http://copyright.massey.ac.nz/cll.html#copywarn�

152.200 Cont. Mgmt Administration Guide i

Contents

Page

Brief Course Diary .......................................................................................................... 1

Kia ora & Welcome ........................................................................................................ 2

Paper Co-ordinator .......................................................................................................... 3

The Paper: 152.200 Contemporary Management ........................................................... 5

Prescription................................................................................................................. 5

Aims & Objectives ..................................................................................................... 5

Learning Outcomes .................................................................................................... 5

Resources ........................................................................................................................ 6

Required Text ............................................................................................................. 6

Engaging with Contemporary Management ................................................................... 7

Stream......................................................................................................................... 8

Weekly Web Tutorials .............................................................................................. 9

Multi-media Presentations and Email ...................................................................... 10

Studying ........................................................................................................................ 11

Overview of Course Content .................................................................................... 12

Extended Course Diary ................................................................................................. 13

Assessment .................................................................................................................... 17

Assessment Criteria .................................................................................................. 18

Assignment Presentation and submission ................................................................ 19

Lateness & Extension Policy.................................................................................... 20

Contents ...................................................................................................................... 1

Brief Course Diary ..................................................................................................... 1

Kia ora & Welcome.................................................................................................... 2

Paper Co-ordinator ..................................................................................................... 3

The Paper: 152.200 Contemporary Management ...................................................... 5

Resources ................................................................................................................... 6

Engaging with Contemporary Management .............................................................. 7

Studying ................................................................................................................... 11

Overview of Course Content ................................................................................... 12

Extended Course Diary: ........................................................................................... 13

Assessment ............................................................................................................... 17

Assessment Criteria .................................................................................................. 18

Assignment Presentation and Submission................................................................ 19

152.200 Cont. Mgmt Administration Guide ii

Lateness & Extension Policy.................................................................................... 20

Assignment 1 25% ............................................................................................... 21

Assignment 2 25% .............................................................................................. 22

Examination 50% .............................................................................................. 23

Plagiarism ................................................................................................................. 24

Copyright Regulations.............................................................................................. 25

Referencing .............................................................................................................. 26

Creating a reference list for your report and presentation ........................................ 26

Massey University Library ....................................................................................... 27

Support Services ....................................................................................................... 29

In case of emergency ................................................................................................ 30

152.200 Contemporary Management Administration Guide 1

Brief Course Diary

See stream for full diary and resources: http://stream.massey.ac.nz/

Wk Online Tutorial Topic and Important Dates

1 Tut.1: 8-9.30pm, February 24, Wednesday http://connect.massey.ac.nz/contemporarymgmt/

Introductions (Stream, Connect, Peers and different Conversations)

2 Tut.2: 8-9.30pm, March 3, Wednesday http://connect.massey.ac.nz/contemporarymgmt/

Critical Study of Mgmt Practice, Theory and Research. Questions:

• What is a ‘critical study’? • How are we to be ‘critical’? • What trends and developments should we study?

3 Tut.3: 8-9.30pm, March 10

Wednesday

Academic Management knowledge (theory and Research) Trend 1: ‘Environment and strategy’ (What is strategy?)

4 Monday March 17 (Tut.4: 8-9.30pm )

Popular Management knowledge Trend 1: ‘Environment and strategy’ (Responding to a sustainability crisis: ‘Green to Gold’)

5 March 24 (Tut.5: 8-9.30pm ) Practitioner management knowledge Trend 1: ‘Environment and strategy’(Peter’s leaky buildings)

6 March 31 (Tut.6: 8-9.30pm) Academic Management knowledge (theory and research) Trend 3. ‘Technology and change’(theory and research)

Mid-Semester Break April 2-April 18

Assignment 1 Theory and Research Report due by noon Monday April 19

7 April 21 (T7: 8-9.30pm) Popular Management knowledge Trend 3: ‘Technology and Change’ (Social Media and Organizations)

8 April 28 (T8: 8-9.30pm) Practitioner management knowledge trend 2: ‘Technology and change’ (Technology and new businesses)

9 May 5 (T9: 8-9.30pm) Academic Management knowledge Trend 3: ‘Structure and culture’( theory of structure and culture)

10 May 12 (T10: 8-9.30pm) Popular Management knowledge Trend 3: ‘Structure and culture’ (TV management knowledge - the apprentice and surviver)

11 May 19 (T11: 8-9.30pm) Practitioner management knowledge Trend 3: ‘Structure and Culture’ (Policing structure and teams)

12 May 26 (T12: 8-9.30pm) Drawing the three conversations together (critical analysis of 152200)

Assignment 2 Management Practice Exercise due by Noon on May 31

Examination Friday 11 June, 2010 - Morning

http://connect.massey.ac.nz/contemporarymgmt/�



Kia ora & Welcome

Welcome to 152.200 Contemporary Management. This course has been completely

redesigned for 2010. I’m excited about this course and this year’s programme. Here’s

why:

• It’s practical! It provides an introduction to management practice and to

particular trends in practice.

• It’s analytical! At its core the paper is a critical analysis of the different forms

of management knowledge (academic, practitioner and popular) all of which

address management and organizational problems and issues.

• It’s theoretical! It provides a critical introduction to selected theories of

managing and organizing.

This Administration Guide outlines the requirements of the paper but the paper is

based mostly on its stream site: http://stream.massey.ac.nz/ . Please make sure you

visit this site in the first week of the course. You will also need to get access to or

purchase the textbook (Hatch, 2006). Try to get this as soon as possible so that you

can progress with your study. Before we go further, let me introduce myself . . .

http://stream.massey.ac.nz/�


Paper Co-ordinator

Craig Prichard As well as coordinating 152200 Contemporary Management in 2010 I will also coordinating the postgraduate paper ‘152707 Leading Change’. Alongside my teaching I have a research interest in the critical analysis of organizing processes. The key question here is why do certain management and organizational practices take particular forms, how are they maintained or how are they changed. To address this I’m involved in range of empirical projects that include, among other things, analysis of computer visualization, organizational affectivity, academic journal publishers and private finance companies. Outside of work, paid work at least, my wife and I are kept occupied (!) by our three children (aged 16, 12 and 8). I also manage squeeze in some time to play music and I try to get out regularly on my recumbent bike. What else is there? I come from a family that were once mostly farmers and small business owners and who are now mostly wage and salary earners in large organizations (some multinationals). I was born in the little agricultural service town of Waverley in South Taranaki and as I grew my family moved north – pushed by rural population decline and lured by the opportunities of the larger towns. I went Canterbury University in the early 1980s. Later studied journalism at ATI (now Auckland University of Technology) and worked as a reporter on provincial daily newspapers in the late 1980s before heading overseas. At the time newspapers were making the transition to direct entry computer technology. They were also confronting the (continuing) downward trend in daily newspaper circulation. Strangely enough these issues became the focus of my first research job in the UK in early 1991. During something of an overly long ‘OE’, I became attached to three universities as researcher, PhD student and lecturer. I reflect on all this now and wonder if it might be better to consider change to be the stable unvarying feature of


people’s lives, and stability to be, that which makes for all the barriers and complications? I’d be interested in your reflection on this point as we move through the course. There are a number of ways of communicating with me (and your colleagues) during the course: 1. Email (anytime). Messages of a personal nature should go directly to:

[email protected] . All discussion points should be sent to the stream site forum (as appropriate) all general queries and discussion points should go to: [email protected]. This second address is the address for our course email list. Your Massey supplied email address will be added to this list just before the course starts. The list is the primary source of course communication and will be the fastest way to get a reply to queries (you can try the phone but I’m not always in the office).

2. Online Tutorials (weekly): This is where we will be doing most of our ‘same time’ interaction. As a web-based course you will need an internet connection. If you’ve not got broadband then I’d strongly suggest an upgrade to broadband. A headset (with microphone) or webcam, with built in microphone, is strongly recommended as an essential piece of equipment for the course. These will be used during the weekly meetings (instructions are below).

3. Telephone. This might work, but if there’s no reply please leave a message and I’ll ring back as soon as I can. The best thing way to ring me is dial the Massey Auckland, Wellington or Palmerston North numbers (below) and key in extension number: 2244.

The Massey numbers: a. Palmerston North: 06 3569099 b. Wellington: 04 801 5799 c. Auckland: 09 414 0800. And if all else fails please send mail to

Postal address: Craig Prichard Department of Management PN214 Massey University Private Bag 11 222 Palmerston North, 4410

mailto:[email protected]�



The Paper: 152.200 Contemporary Management

• Course Credit Value: 15 credits • Semester: Single (Start: Monday 22 February, End: Friday June 18) • Mode: Extramural (Location: Manawatu) • Prerequisite(s): Any 100-level paper • Exam date: June 11, morning • Contact Course: none (weekly online tutorials) Prescription A critical study of selected trends and recent developments in management theory, research and practice.

Aims & Objectives

• To provide knowledge and understanding of organizations, theory

management processes and the influence of environmental forces;

• To exhibit and evaluate a diversity of management approaches;

• To assist students gain an appreciation of the differences between and

contribution of management theory, research and practice

Learning Outcomes Students who successfully complete this paper will be able to:

• Critically interrogate management concepts and theories relevant to

contemporary business decision making.

• Demonstrate the value of management concepts and implications for

contemporary practice.

• Apply knowledge of management ideas to contemporary organizational

issues.


Resources

Required Text

Hatch, M J (with Cunliffe, A L) (2006). Organization Theory: Modern, Symbolic and

Postmodern Perspectives. (2nd Ed). Oxford: Oxford University Press.

Order your textbook from:

Bennetts University Book Centre Freepost 118333 Massey University Palmerston North Telephone: (06) 354 6020


Engaging with Contemporary Management

Stream 152200 Contemporary Management will be using Massey’s learning management system, Stream, in 2010. The course’s stream site is the primary location for course. The site hosts key materials (beyond the textbook and two separate readings), course presentations, recordings of tutorials, discussion fora and is the site for the submission and return of assignments. The course is structured into 11 weekly topics. At the beginning of each week a short presentation covering the key points and frameworks for that topic will be posted to the stream site (and flagged via email). From the middle of February login to the site at this address: http://stream.massey.ac.nz/

Weekly Web Tutorials At the core of this course are weekly online course meetings/tutorials. The dates for each of these are at the front of this guide (in the brief course diary) and in the detailed section below. The tutorials/meetings will be held on Wednesday evenings between 8-9.30pm. To join the meeting/session put the following address in your web browser’s address space and hit return: http://connect.massey.ac.nz/contemporarymgmt/




When you visit this site you will see the following:

To enter the room simply enter your login details or take the ‘enter as a guest’ option

(shown). You do not need your Massey username and password to use this option. If

you do take the ‘guest’ option, you will then be prompted for your name. Enter your

first name only.

Next click ‘enter room’. The course coordinator will open the meeting room five

minutes before the start time. If you do not get access straight away just wait a few

moments (it’s a bit like knocking on the door – someone will answer). The next image

shows you what you will (typically) see when you enter the room.


In order to listen to the lecture you will need to plug in your headphones or turn on

your computer’s speakers. Once everyone is familiar with this we will then work on

using the meeting rooms to communicate using microphones and webcams. In our

experience most users get easy access to the Connect meetings (although there have

been instances when corporate firewalls block this so best to check with your

network administrator if you are going to use a work computer).

Part of the first session on February 24 will involve an introduction to the meeting

environment. There is also a ‘pre-flight’ check for using the software at the following

site: http://elearning.massey.ac.nz/ . It would be helpful to take a look at look at this

before the meeting. Go to this address: http://elearning.massey.ac.nz/ and click on

the ‘Connect pre-flight check’.

Web Tutorial Structure The focus of each tutorial will be the materials for the particular week of the course.

Each session will likely include a short presentation, an exercise (typically a case

study) and a round of Q&A. There will also be time to discuss assignments. These

sessions will be recorded so that those not able to attend the event can catch up

afterwards.

Attendance at these meetings is highly recommended. However no material in these

electronic discussion forums is examinable, nor will participation or lack of

http://elearning.massey.ac.nz/�

http://elearning.massey.ac.nz/�


participation be assessed in anyway. However, interaction using this meeting

environment is a powerful means of engaging with the substantive and administrative

elements of this paper. Our experience has been that those students who attend

regularly are significantly more ‘in tune’ with the course and this makes a significant

contribution to their assignment work. But if you can’t make the sessions please do

not despair! A recording of each meeting will be available to everyone after the

meeting. And a series of presentations - that are not time specific - will also be

available (see next note).

Multi-media Presentations Associated with the online sessions will be a series of short, multi-media presentations that use the Adobe presenter application (audio-enhanced PowerPoint slides). These will be made available via the course’s Stream site (with links distributed via email also). We will use the email list to provide the links to these. The presentations are introductions to and discussion of the materials for the key sections of the course.

Email Alongside the course’s stream site a separate email distribution listserver will also be used for this course. Your Massey supplied email address will be automatically added to the list just before the first semester’s begins. This will allow you to communicate and collaborate with others taking the paper and to receive notices and information from the course coordinator. The address for sending message to the course is: [email protected] .



Studying

Learning, as the philosopher and physicist Michael Polanyi suggested, is a process of

‘pouring ourselves into things’ or ‘folding the outside into ourselves’ (1969:183). It

takes time and attention to the task at hand and at first new concepts and ways of

thinking can seem strange and complex. Over time however what initially seemed

incomprehensible and inaccessible will begin to ‘make sense’. 152.200 Leading

Change is a challenging programme. Please note that the time commitment for a 15-

credit paper is around 12 hours of study time each week during the semester. This

includes time spent reading the study materials, attending the tutorial, listening to

presentations and course videos (e.g. practitioner knowledge), and preparing your

assignments. Here are some suggestions as to what you might include in your 12

hours per week.

Essential:

• Complete the assignments • Read all of the course materials, textbook chapters and supplied readings. • View course presentations and practitioner videos and meeting recordings (if

you are unable to attend the live meetings)

Valuable: • Attend the online meetings. • Contribute to the course discussion forums.


Overview of Course Content

This page provides an indispensible overview of the underlying structure of the course. This is essential reading! This course asks students to engage with three types of knowledge. These are:

• Practitioner/managers’ knowledge (includes manager’s experiential knowledge and organizational practice)

• Popular management knowledge (includes guru texts, popular TV and web resources)

• Management research and theory (Analytical and empirical research findings produced by academics working within various traditions)

Each type of knowledge can be understood as a different kind of conversation. As with conversations we encounter in everyday life (you might be competent in ‘computer’ or ‘plumbing’ or ‘farming’ for example) each conversation has its particular vocabularies, ways of contributing/speaking, and its particular forms of knowledge – assumptions, traditions, authority relations. These organize what counts as valid and reliable. For example the claims found in academic ‘conversations’ tend to be governed by assertions of logical coherence and empirical support. Practitioner conversations meanwhile tends to be grounded on claims to experience, membership or position in key networks and organizations. Popular knowledge about management and organization, e.g. on TV, in movies, magazines and on the web, might be simply based on what ‘sells’, is ‘watched’, or viewed (we will be exploring each of these forms of knowledge in the course). The aim of the course is to undertake a critical study of selected trends and recent developments in management theory, research and practice. To do this we will be studying, critically (more on what this means in our second week), three broad organizational topics: ‘environment and strategy’, ‘technology and change’, and ‘structure and culture’. We will be looking at each of these via our three conversations: practitioner conversation/knowledge about management and organizations, popular knowledge about management and organizations, and academic knowledge about management organizational knowledge.


Extended Course Diary:

WEEK 1 Topic: Introduction Reading: Examples of practical, popular and academic forms of knowledge (see

stream site) Exercise: Exercise: Do you speak practitioner/popular/academic management?

(see stream for details) Tutorial: Wednesday February 24 8-9.30pm: http://connect.massey.ac.nz/contemporarymgmt/ WEEK 2 Topic: Critical analysis and the analysis of a form of knowledge? What is critical analysis How to analyse a form of knowledge?

• Rhetoric • Scepticism toward tradition, authority, objectivity • Context of production • Relations of production • Vocabulary and positions

Readings: Mingers, J (2000) ‘What is it to be Critical? Teaching a Critical Approach to Management Undergraduates’, Management Learning 31(2):219-237 Chapter 2, ‘Histories, Metaphors and Perspectives in Organization Theory’ in Hatch, M. J. (2006) Organization Theory, Oxford: Oxford University Press Exercise: Doing critical analysis of management knowledge (see stream for details) Tutorial: Wednesday March 3, 8-9.30pm at: http://connect.massey.ac.nz/contemporarymgmt/




WEEK 3 Topic: Academic Knowledge 1. Environment and Strategy Reading: Strategy and environment Exercise: Critical Analysis of practitioner knowledge recording (see stream for

details) Tutorial: March 10 (Tut. 3 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 4 Topic: Popular Knowledge 1: Environment and Strategy Reading Green to Gold (segment) Exercise: Critical Analysis of popular knowledge of Sustainability Strategy Tutorial: Monday March 17 (Tut.4: 8-9.30pm ) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 5

Topic: Practitioner Knowledge 1: Environment and Strategy Reading Video of Paul Jackman’s interview Exercise: Critical Analysis of Practitioner Knowledge (see stream for details) Tutorial: March 24 (Tut.5: 8-9.30pm ) http://connect.massey.ac.nz/contemporarymgmt/

WEEK 6

Topic: Academic Knowledge 2: Technology and Change Reading: Chapter 5 ‘Technology’ from Hatch, M J (2006) Organization Theory,

Oxford: Oxford University Press pp 127-160 Exercise: Critical Analysis of Academic Knowledge 2 (technology) Tutorial: March 31 (Tut.6: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/






Mid-Semester Break April 2-April 18

Assignment 1 due by noon Monday April 19-

Report: Critical Analysis of Strategy Knowledge

(see stream for details)

WEEK 7 Topic: Popular Knowledge 2: Technology and Management Reading : Social organization and Web 2.0 http://www.thesocialorganization.com/about-the-social-organization.html Exercise: Critical comment (posted) on popular knowledge of social media and

organization knowledge Tutorial: April 21 (T7: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 8 Topic: Practitioner Knowledge 2: Technology and Management Reading: Video of practising manager. Technology and Managing Exercise: Critical analysis of practitioner knowledge Tutorial: April 28 (T8: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 9 Topic: Academic Knowledge 3: Structure and Culture Reading Chapter 6 ‘Organizational social structure’ and Chapter 7,

‘Organizational Culture’ from Hatch, M J (2006) Organization Theory, Oxford: Oxford University Press pp 161-199 and pp 200-240

Exercise: Critical analysis and comparison of organizational structure and culture.

Tutorial (9): May 5 (T9: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/

http://www.thesocialorganization.com/about-the-social-organization.html�





WEEK 10 Topic: Popular Knowledge of Structure and Culture Reading: The Apprentice and Survivor (Videos) Exercise: Critical Analysis of popular knowledge of Structure and Culture Tutorial: May 12 (T10: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 11 Topic: Practitioner Knowledge 3: Structure and Culture Reading: Video of Dave Thornton (Police Structure and Culture) Exercise: Critical Analysis of Practitioner Knowledge Tutorial: May 19 (T11: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/ WEEK 12 Topic: Bring it all together. Critical Analysis of the Course Reading: No reading (assignment 2 preparation) Exercise: Critical Analysis of 152200 Cont. Mgmt Tutorial: May 26 (T12: 8-9.30pm) http://connect.massey.ac.nz/contemporarymgmt/

Assignment 2 due by Noon on May 31

‘Management Practice Exercise’

Format: Presentation based on Case Study

Examination

Friday 11 June, 2010 - Morning





Assessment

Requirements Assessment Due Date Percentage Value

Assignment 1 (Report) April 19 25

Assignment 2 (Exercise) May 31 25

Examination June 11 50

To complete this paper you will need to attain at least 50 percent of the available marks. Most of you will meet an acceptable and competent standard of work throughout the semester and some will maintain an excellent standard. There are no ‘quotas’ on any of the categories, so make use of the information available to you and aim for the top.


Assessment Criteria

Aside from some particular assessment criteria noted below, assignments will be graded on the following broad criteria:

• Structure • Content • Reading • Evidence of thoughtful, independent analysis • Presentation

A mark of 50% indicates an adequate performance and is a C grade pass for this paper. Grades are as follows:

Grade Evaluation

A+ Exceptional

A Outstanding

A- Excellent

B+ Very good

B Good

B- Competent

C+ Satisfactory

C Adequate

D Flawed (fail)

E Deficient (fail)


Assignment Presentation and Submission

All assignments must be typed using a word processing application and be submitted

to the Stream site in electronic format. Do not hand in hard copies and do not email

copies to the course coordinator. Your assignments must be grammatically correct,

correctly referenced, and professionally presented in the appropriate format. Here are

a list of particular presentation guidelines:

1. The first page of your assignment must be a copy of the supplied assignment

coversheet (see stream site for copy)

2. Your assignment file must be named with the course number, the assignment

number and your name e.g. ‘152200_Assign_1_Jo_Sixpack.doc’.

3. Use A4 page size in portrait orientation. 4. Leave a 5cm margin on the left to allow room for marker’s comments.

Comments will be inserted using Word’s comment function. 5. Use a 12 point font – preferably Times New Roman or Arial. 6. Use 1.5 line spacing. 7. Ensure you reference according to APA specifications (discussed later in this

guide). 8. Each page should be numbered in one continuous sequence. 9. Submission: To submit your assignment login at the course’s stream site:

http://stream.massey.ac.nz . The submission pages for each assignment are found at

the top of the stream site’s main page.

1. Click on the submission icon . This loads a page with the

assignment details. Go to the bottom of the page.

2. Click on the ‘BROWSE’ button. Select the file from the location on your

computer (please use file name format as noted above).

3. Click ‘OPEN’.

4. You are now back on the submission page so click ‘UPLOAD THIS

FILE’

5. Please check that the assignment now appears on the page.

Note: If you have any problem please contact the course coordinator.



Lateness & Extension Policy

Lateness: Students are expected to submit their assignments by the due date. Assignments submitted more than a week after the due date will not be accepted or marked unless agreement for late submission has been made with the course coordinator prior to the assignment deadline. Extensions: We recognise that sometimes there are unforeseen situations such as serious illness and family crises that affect your ability to complete your assignments. In these situations you may request an extension. You will be expected to submit your request for an extension to the paper co-ordinator before the due date. You may also need to provide the paper co-ordinator with appropriate documentary evidence of the reason that the extension is needed (e.g. a doctor’s certificate). Marking Turnaround: Students can expect assignment submitted by the due date to be marked within 21 days of submission.


Assignment 1 25%

Topic: Critical Analysis of Strategy Knowledge (academic, popular or practitioner)

Format: Report (addressed to a fictional manager/supervisor/boss) Due Date: April 19 (submit to stream site assignment page) Description: See full description on stream site.

Length: 1000 words maximum

Particular assessment guidelines:

• Clear, direct and illuminating prose

• Clear presentation of the target of analysis,

• Clear presentation of the type of critical analysis

• Bulk of report deal with the analysis of the ‘target’

.


Assignment 2 25%

Topic: Management Practice and Technologies (Case Study) Format: Presentation (audio enhanced slide show)

Due Date: May 31 Length: Commentary should be no longer than 1000 words maximum

Requirements: See full description on Stream site

Particular assessment guidelines:

• Appropriate tone and address

• Clear and direct analysis of management problem

• Appropriate, creative and practical responses to the presented

problem that draws on different forms of knowledges presented in

the course.


Examination 50%

Date: June 11 Morning (three hours)

Format: Three short answer questions Details: Some guidance on the questions to be answered in the exam will be

given in the final week of the course (tutorial and on stream site).


Plagiarism

‘Plagiarism is …’ Copying or imitating the language, ideas, thoughts, or writing of another author and passing off the same as the student’s original work. Students should take particular note of the following:

College Policies Plagiarism is not permitted. Questions of suspected plagiarism will be immediately referred to the Head of

Department for investigation. Students suspected of plagiarism will have the opportunity to discuss the case with

the lecturers, Head of Department, and other relevant persons prior to any college action being taken or recommended.

Confirmed plagiarism will be dealt with severely. A penalty equal to the marks allotted to the work may be imposed. Depending on circumstances, a more severe penalty may be applied.

To summarise plagiarism What exactly is plagiarism? Plagiarism is a form of cheating. Plagiarism is using someone else’s ideas or words and saying they are your own.

If you use material from a text and do not acknowledge the source, you are committing plagiarism. Specifically, these behaviours are often regarded as plagiarism: Copying directly from a text, acknowledging the source but pretending that you

are paraphrasing. Paraphrasing or copying directly from a text without acknowledging the source. Copying from another student’s assignment with or without the student’s

knowledge. The following behaviours are regarded as misconduct: Submitting the same assignment in two different papers. Getting someone else to write an assignment for you.

You are also involved in misconduct if you: Let another student copy from your own work. Write an assignment for another student.

The University has severe penalties for intellectual dishonesty. The penalties for plagiarism are severe and may range from a zero grade for an assignment through to exclusion from the examination and the course.

You have been warned! Contact the Student Learning Centre for information on how to avoid plagiarism.


Copyright Regulations

Please remember that as a student you breach the Copyright Act if you photocopy an entire book, or a significant proportion of a book, without the permission of the copyright owner. The only time you can copy a book freely is if that book is no longer in copyright (which will not be until 50 years after the death of the author and/or 25 years after the book was published). It is also a breach of the law to obtain photocopies from other people. As a student you can make one copy of a small proportion of a book so long as you make the copy only for your private research and study. You are free to make a copy of an article from a journal for your private study or research. Massey University reminds you of your obligations under the Copyright Act 1994. You must be familiar with the information posted in the Library near photocopy machines. Remember too that electronic or digital copies are subject to essentially the same limitations as photocopies.


Referencing

Referencing is an important part of all work you will do at university. The reference system enables you to indicate the source of facts and opinions without interrupting the flow of your argument, and it enables a reader to check and pursue these citations quickly and economically. These guidelines are based on the APA (American Psychological Association) referencing system. For further details on APA referencing please refer to either Manalo et al. (2002) or Emerson (2005). Alternatively, visit the Massey Library’s Online Reference Resources section (http://library.massey.ac.nz/findit/onlinereference resources.htm) or APA (www.apa.org).

Creating a reference list for your report and presentation

All references cited in the text of your report or presentation must be reported in full standard bibliographical form under a heading References at the end of the assignment (report or presentation). The references should be arranged alphabetically by author’s surname. When listing references, all lines except the first should be indented five spaces (typically one tab stop). Note the use of italics, capitalisation, punctuation and order of elements. For journal articles, the title of the journal, and the volume number, should be italicised. For a book, italics should be used for the title. If your word processor or printer cannot do italics, underline these elements.

http://library.massey.ac.nz/findit/onlinereference%20resources.htm�


Massey University Library

The Library provides resources and help to support your study. Please contact us if you need help finding information or requesting Library material. Phone: 0800 MASSEY (0800 627 739) ask for Library Email: [email protected] Distance Library Service

The Distance Library Service delivers course-related Library materials to students who are eligible (students studying predominantly extramural or block mode courses in a semester). For key information about using the Distance Library Service, see the Library For Extramurals section of our web site http://library.massey.ac.nz/massey/library/the-library-for/the-library-for-extramurals/the-library-for-

extramurals_home.cfm, and the printed Library Services for Extramurals brochure. If you are uncertain about your eligibility, and/or you need a copy of the brochure, please contact the Distance Library Service. How the Distance Library Service can help:

• Books: We deliver course-related books to your home and pay return postage within New Zealand for the books we send out.

• Photocopies: We photocopy study materials and post them to you, including journal articles, copies of three previous exam papers, and chapters of books not available for loan. Note: The Library must comply with the Copyright Act which restricts the amount that can be copied (normally one chapter or article, or 10 percent from any one publication).

• Subject Searches: If you are having trouble finding information, we can help with advice on how to search. We may also be able to get you started by carrying out a brief search on your behalf and sending you a list of useful material to select from.

• Studying outside New Zealand: We will supply materials to help you with your studies, but there may be some restrictions. Please contact us for more information.

When you are using the Library from a distance it is especially vital to plan ahead to allow plenty of time just in case the material or assistance you need is not immediately available.


Library Web Site (http://library.massey.ac.nz)

You can use the Library web site to find useful resources by: • searching the Library catalogue to find and request books,

journals, theses and more held at any of the Massey Libraries • using Subject Guides (for article databases, encyclopedias and

dictionaries, web sites in major subject areas) • searching Article Databases (subject access to journal and

newspaper articles often full-text online) • printing copies of past exam papers

You can also Log in to your MyLibrary record online to check your due dates, renew your books, view your reading history and request items from the catalogue.

For advice on finding information see the How to Find section at: http://library.massey.ac.nz/massey/library/help-and-instruction/how-to-find/how-to-find_home.cfm

Using the Library in Person

You’re welcome at any of the Massey Campus Libraries - in Auckland, Palmerston North (Turitea and Hokowhitu) and Wellington. Services available from these Libraries include access to computers and photocopiers, Information Desks where you can get help in using Library resources, research consultations for postgraduate students and EndNote support. All Massey libraries provide help and support, but not all resources are held in every Library. Extramural students resident in Hawke’s Bay may join the Twist Library at EIT and borrow in person. ID and proof of enrolment is required. EndNote

EndNote is specialised software for storing and managing bibliographic references/citations. It allows you to:

1 Create, store, and manage your references 2 Import and store references from electronic databases 3 Annotate, sort and search your references 4 Create bibliographies instantly in a variety of bibliographic styles 5 Insert citations into your Microsoft Word documents.

See the EndNote page for further information http://library.massey.ac.nz/massey/library/help-and-instruction/endnote/endnote_home.cfm


Support Services

For a detailed description of all support services at Massey University, please refer to the General Information section at

the front of your Extramural Handbook.

Student Learning Centre Phone: (06) 350 2251 Fax: (06) 350 5760 Email: [email protected] Website: http://learning.massey.ac.nz/ Wellington: (04) 801 2794 extn 6843 Albany: (09) 443 9700 extn 9434

Support for Students with Disability Freephone: 0800 MASSEY (0800 627739) and ask for Disability Services Email: [email protected] Support for Maori Students Tracey Hepi-Eparaima Phone: 06 350 5799 ext 7245 Fax: 06 350 5608 E-mail: [email protected]

Support for Pacific Students Freephone: 0508 544 331 extn 7186 Auckland: 09 4140800 extn 7186 Wellington: 04 8015799 extn 7186

Extramural Students’ Society Phone: 06 3544331 Freephone: 0508 544 331 Fax: 06 350 5650 Email: [email protected] Web: http://exmss.massey.ac.nz

http://learning.massey.ac.nz/�





In case of emergency

Are you having doubts, sudden feelings of incompetence, and awful realisations of time running out? Are you, in other words, thinking of withdrawing? Before you do, ask yourself Will I regret this later? Will I feel better after a cup of coffee/the baby has gone to sleep/the weather

has improved? Should I write to or phone my paper coordinator?

Tell yourself I’ve got this far, I might as well finish. I have the right kind of reasons to ask for an extension of time for the

assignment. There are people around who can help if I ask.

Do Talk about it with your paper coordinator. Often students withdraw because,

working in isolation, they do not realise that other students are having the same problems and in fact, compared to others, they are doing very well.

Discuss withdrawing with your family, your employer or others important to you.

Get on with what needs to be done now (leave future tasks to the future). If after that you find you have no alternative but to withdraw then... Check the Extramural Handbook. Note what date you need to withdraw

before if you don’t wish to have the paper recorded as a failure. Please contact the Massey University Contact Centre phone 0800

MASSEY(0800 627739) to withdraw. Contact your paper coordinator too, if you possibly can. We are interested to

hear what your problems have been, and whether there is some way we can make it possible for you to take this paper again in a future year.

The only way you can be withdrawn or change your course is to contact the Massey University Contact Centre on 0800 MASSEY (0800 627739). Writing to the paper coordinator or tutor does not officially withdraw you from a paper. However, if you are thinking about withdrawing, please email or talk to Craig first.

Department of Management

(Manawatu & Wellington)

152.200

Contemporary Management 15 credits

Course Readings

Single Semester, 2010

Extramural

Paper Co-ordinator

Dr Craig Prichard

THIS MATERIAL IS PROTECTED BY COPYRIGHT AND HAS BEEN COPIED BY AND SOLELY FOR THE EDUCATIONAL PURPOSES OF THE UNIVERSITY UNDER LICENCE. YOU MAY NOT SELL,

ALTER OR FURTHER REPRODUCE OR DISTRIBUTE ANY PART OF THIS COURSEPACK/MATERIALS TO ANY OTHER PERSON. WHERE PROVIDED TO YOU IN ELECTRONIC FORMAT, YOU MAY ONLY PRINT FROM IT FOR YOUR OWN PRIVATE STUDY AND RESEARCH. FAILURE TO COMPLY WITH

THE TERMS OF THIS WARNING MAY EXPOSE YOU TO LEGAL ACTION FOR COPYRIGHT INFRINGEMENT AND/OR DISCIPLINARY ACTION BY THE UNIVERSITY.

http://copyright.massey.ac.nz/cll.html#copywarn

The Course Administration Guide and the Course Stream Site provide a week by week timetable for the course. The key readings are found in the course textbook. Below are two separate readings required for the course.

Reading 1 for Week 2: Mingers, J (2000) ‘What is it to be Critical? Teaching a Critical Approach to Management Undergraduates’, Management Learning 31(2):219-237.

Reading 1 for Week 4. Excerpt from: Esty, D and Winston, A (2009) Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, Wiley.

3

Reading 1 for Week 2: Mingers, J (2000) ‘What is it to be Critical? Teaching a Critical Approach to Management Undergraduates’, Management Learning 31(2):219-237.

4

John MingersWarwick University, UK

What is it to be Critical?Teaching a Critical Approach to Management Undergraduates

Abstract Developing our students’ abilities to be critical is important but what does it meanto be critical? Is it just the cognitive skills of critical thinking or should it involve more rad-ical re-examination of management knowledge and practice from a Foucauldian orHabermasian perspective? This article addresses the issue of what it is to be critical by reflect-ing on the development of an innovative core course for final year management students con-cerned with critical management issues. The first section outlines the specific educationalcontext and the structure of the course as a whole. Then the article explains the underlyingtheoretical framework that was developed which identified four aspects of being critical—scep-ticism towards rhetoric, tradition, authority, and objectivity. The teaching material associ-ated with this part of the course is discussed next. This looks at two real situations, one thedebacle of the Taurus stock exchange system, and the other an ongoing legal case concerningracial discrimination that is being documented on the web. The article concludes with a moretheoretical discussion of the relation between this particular course and critical managementmore generally.

It is not practicing criticism either to validate the status quo or to join up with a priestlycaste of acolytes and dogmatic metaphysicians . . . [t]he realities of power and authority—as well as the resistances offered by men, women, and social movements to institutions,authorities, and orthodoxies—are the realities that . . . should be taken account of by crit-icism and the critical consciousness. (Said, 1983: 5)

The field of management as an academic subject is very broad, covering many disci-plines, taking place in many different organizational settings, and ranging from pureresearch into management practices to what is simply training for management. Thecorresponding academic literature is full of theoretical debate, empirical studies,and practical guidance for effective management. It lacks, however, much by way ofconsidered reflection about the practice of management education itself. By that Imean the theoretical and practical bases of our pedagogical activity. This articlemakes a contribution by addressing the question of what we might mean by a ‘criti-cal’ approach to management education. It does this by reflecting on a specific and

Management LearningCopyright © 2000 Sage Publications

London, Thousand Oaks, CAand New Delhi

Vol. 31(2): 219–237

1350–5076[200006]31:2; 219–237; 0131475

http:\\www.sagepub.co.uk

practical example—the development of an interdisciplinary, core course for finalyear undergraduates on a range of management degrees at Warwick Business School(WBS).

At the undergraduate level, WBS1 has three major BSc programmes—Management Sciences, Accounting and Finance, and International Business—as wellas numerous joint degrees with other departments. Traditionally the major pro-grammes had emphasized disciplinary-based core courses in the first two years whilein the third (and final) year students choose a range of electives. This meant that inthe final year there was no common core course for all students on a programme,nor was there much inter-disciplinary teaching throughout the three years. A majorreview identified these issues and proposed the development of a compulsory corecourse across all three programmes (nearly 200 students).

The specification of the new course was ambitious in that it should involve all thedisciplines in an integrated manner, be academically rigorous and at the same timebe participative and based on student-centred learning, and should develop the stu-dents’ practical skills in presentations, report-writing and group work. A group ofacademics from across the School produced an initial proposal specifying a frame-work for how the course would operate, and the core idea that it should be aboutdeveloping in the students a critical approach to management. A title was agreed—‘Critical Issues in Management’—but just what the term ‘critical’ connoted to the dif-ferent people involved is very much the subject of this article. Once accepted by theuniversity, the rather bare proposal was passed on to the staff who would actuallyflesh out and teach the course in its first year, some of whom had also worked on theinitial proposal.

The article begins with a general discussion of the nature of critical managementeducation and the difficulties and contradictions inherent in developing suchcourses within the current academic environment. The next section describes thedevelopment of an underlying framework, four aspects of critique, to support thecourse. This was necessary because there are many possible interpretations of the term ‘critical’—critical thinking, critical issues, critical theory, critical systems,critical management studies—each of which stems from a particular milieu andcarries its own disciplinary and political connotations. The framework, drawing on arange of sources including Habermas and Foucault, identifies four different aspectsof ‘being critical’—scepticism towards rhetoric, tradition, authority, and objectivity.Then the course itself is described in more detail, including an illustration of theframework applied to a case study. Finally, the success of the course is evaluated afterits first year of operation.

Critical Management Education

In order to contextualize the course, it is useful to outline what might be meant bycritical management education in general. Perhaps the most fundamental questionsconcern the relationship between management education and other arenas of man-agement such as management practice, management research, the experience ofliving in/with organizations, and the critical and emancipatory potential. Grey andFrench (1996) argue that management, in a wide sense, has become of centralimportance to the world and its societies, and it therefore must become the subject

220 Management Learning 31(2)

6

of critical evaluation. Management education and research are crucial for the devel-opment and reproduction of management practices and so must also come underscrutiny. The prevailing view within business schools and management departmentsis the utilitarian one that management education is primarily concerned withenhancing managerial effectiveness. Grey and French contrast this managerialistview with a critical view that we should decouple management education from man-agement activity in order that the claims and practices of management can be calledinto question. One should be able to study management as a practice without itbeing training for management, in the same way that one can study politics withoutbeing trained to be a politician. In this view, higher education should withdraw frommanagement training all together. A variant of this might be that both should existwithin academe but develop in separate ways, with particular institutions clearly spe-cializing in one or the other (Thomas, 1997). An alternative view, discussed below, isthat a new perspective on management education should be developed, based on amore critical evaluation of its role and importance within society as a whole.

Moving down to the level of individual courses, Grey and French (1996) suggestthat most of them embody a positivist stance, assuming that there is a given andunquestionable body of valid knowledge that must be presented and then masteredby the student. The teaching approach is largely didactic and, although this is nowchanging towards more student-centred methods that stress practicality, role-playing,participation and so on, this is still within a context that does not problematizeknowledge itself. In contrast, Grey et al. suggest that a critical approach should startwith the students’ own lived experiences—not to make the transmission of knowledgemore effective, but to ‘provide a basis for a critical reflection on experience as ameans of subverting such knowledge’ (Grey, Knights and Willmott, 1996: 100). Thepoint here is to raise very fundamental questions about the status and validity of man-agement theory and the extent to which it privileges only one, primarily functional-ist, view of knowledge.

Grey et al. recognize the problems of this approach, both practical and theoreti-cal. Practically, there is the inevitable tension of teaching a critical course within acontext of degree programmes that are largely positivist in the above sense. This isexacerbated by the current political and economic climate (in the UK anyway) ofreduced funding, students incurring more and more debt, greater emphasis on rel-evance (to industry), practicality and skills, and increasing measurement of univer-sity performance by crude indicators. Theoretically, there is the almost inherentcontradiction that we are encouraging students to question the validity of knowledgeand authority and yet by that very choice imposing our visions upon them.

Willmott (1997) has made a strong case for a particular form of critical man-agement called critical action learning. This combines the practical stance ofaction learning (Revans, 1982) with the more sociological viewpoint of criticaltheory. Action learning moves from the traditional perspective that education isthe de-contextualized transmission of abstract and universal knowledge and expert-ise, to the view that learning should be a process of self-development, in whichknowledge is acquired through its relevance to the real-life engagements andstruggles of the learner. Critical action learning allies to this the recognition thatindividual experiences and learning always occur within institutional and socialcontexts, and that these both engender and constrain through relations of powerand signification.

Mingers: What is it to be Critical? 221

7

Where does our Critical Issues in Management (CIM) course stand with respect tothese distinctions? First, it is clear that it actually embodies within it the centraldichotomy between utilitarian and critical management education. Is it primarilyconcerned with problematizing management knowledge or with improving theeffectiveness of our students in their management careers? The answer is that it tries,perhaps unsuccessfully, to do both. This is partly because of its institutional context.Warwick Business School, like most university management departments, is both abusiness school concerned with effective management and a centre for research intomanagement. Individual members of faculty may be more committed to one aspectthan the other, but often have to embrace both—for instance, teaching on an MA inCritical Management and an MBA—simply because of the demands of the job. CIMis the construction of a wide circle of staff and so inevitably incorporates a range ofdisciplinary and political views. Indeed, it could be argued that to some extent thereis a deliberate vagueness in its specification so as to allow all those involved to feelcomfortable. It has been put across to students mainly in effectiveness terms—thatcritical questioning will lead to better management decisions—but it is hoped that asthey progress through the course they will themselves question this rationale more.

To what extent does this tension and ambiguity undermine the claim that thecourse is an example of critical pedagogy? There are several possible responses. Themost obvious is perhaps that smuggling in critical ideas is the best that can be man-aged in the current circumstances. Any attempt at raising the students’ critical aware-ness is better than none. A more deliberative response is to see it as a ‘Trojan horse’strategy, disguising a subversive critical intent within a course apparently concernedwith management effectiveness. A third, and in some ways attractive, approach is toargue against the supposed contradiction between the utilitarian and critical models.Does the course have to be either one or the other?

The assumption is that either one adopts the presuppositions of management asconventionally defined (and thus supports the status quo), or one must be antagon-istic toward all management as an activity. Should we not instead move beyond a cri-tique of management toward developing a critical practice of managing—‘aqualitatively different form of management: one that is more democraticallyaccountable to those whose lives are affected in so many ways by managementdecisions’ (Alvesson and Willmott, 1996: 40). This might involve focusing attentionaway from management as a class-based hierarchy towards managing as an activity thatwe all do, in our personal and occupational lives, and that is done to us. Seen in thislight, the course could be a first step toward synthesizing the often competingdemands of morality (our duties and responsibilities towards others), ethics (our con-cern with our own worth and self-identity), and pragmatics (the need to be effectivein our activities) (Habermas, 1992, 1993b; Mingers, 1997).

The second issue is the extent to which CIM could claim to be critical in prob-lematizing the status of knowledge. Chia and Morgan, in a rather abstract and theor-etical work, argued that education should develop the philosopher-manager, ‘thecritical thinking manager who persists in the vigilant deconstruction or “de-signing”of hitherto self-evident social and management concepts and categories’ (Chia andMorgan, 1996: 41). Here, I would argue that the course certainly aims at this withinthe inevitable practical constraints outlined above. It is clearly addressed within thefour aspects of being critical (discussed in more detail below) in terms of the critiquesof authority and objectivity. The critique of authority denies the hegemony of a


8

single legitimate viewpoint or interest, promoting instead the acceptance of aplurality of positions. The critique of objectivity denies the assumption of pure,value-free knowledge and introduces the Foucauldian notion of power/knowledge.Both of these theoretical ideas are developed practically in various case studies.Whether it is wholly successful in actually generating a high degree of reflexivity andscepticism in the students will be discussed in a later section. And, if it does, it is notclear how both students and staff will react to the self-referential contradiction ofusing our authority to require them to be sceptical of authority.

The third issue concerns questions of contradictions in the teaching approach.For example, we are essentially forcing the students to participate in seminars byusing assessment rather than allowing their participation to be given freely. We haveto accept that this is less than ideal, a justification being that it supports the widerbenefit of having a non-lecture, student-based course. We hope the material will beinteresting enough for the students to want to participate, but this may well be anarea for future developments. Our experience so far, as might be expected, suggeststhat those students in a seminar who are giving presentations do engage very suc-cessfully with the material but those who are not tend to opt out. In a way we are plac-ing the students in a very contradictory position—expecting them to become criticalbut at the same time to adhere to our rules.

A related issue is the extent to which we, the (older) lecturers, can understand theexperiences and reality of present-day students. We choose and present material thatappeals to us, assuming it will work equally well for them. However, Spaul (1997)reports that students are much more motivated by examples close to their ownexperience (rather than business cases), and are more interested in computer,video, and graphical material than traditional texts, for example making a videorather than writing an essay for assessment. A similar point is made by Thompsonand McGivern (1996) who use a wide range of narrative literature to stimulate reflec-tion and interest in the students. A more generalized version of this problem is theextent to which our version of being critical is itself biased, representing a particularrationalistic, universalistic and gendered view. This is an important debate concern-ing the nature of rationality itself that cannot be pursued in detail here except tonote that such criticisms have already been registered within Habermasian criticaltheory itself (Benhabib, 1992; Habermas, 1994; Young, 1990), sparked in part byclashes with the Foucauldian perspective.

What is a Critical Approach? A Framework for Critical Learning

This section moves to the more specific design of the course itself, and in particularthe development of an underlying framework encompassing different aspects ofbeing critical. The group of people developing the course were generally senior aca-demics but of a fairly disparate nature—professors of Finance, Strategic Marketing,Industrial Relations, and Local Government; lecturers and senior lecturers fromAccounting, Operational Research, Information Systems; and a senior researcher inCorporate Governance. As might be expected, such a group embodied a very widerange of intellectual and ideological positions, and discussions were wide-rangingbut seldom acrimonious. The practical details of the course (described below) wereagreed relatively quickly. What was not so clear, however, was the core intellectual


9

foundation of the course—what was meant by a critical approach? Here a variety ofviews were held. Certainly, as the title implied, there was the idea of critical, as in cru-cial or vital, issues facing management and organizations in the future. There wasalso a commitment to critical thinking as in the ability to evaluate the validity andstrength of arguments and proposals. But beyond this there was the idea of adoptinga critical stance towards the accepted, managerialist, assumptions underpinningmost management education and thereby problematizing the status of managementknowledge. It was also felt important to raise issues such as the nature and effects ofpower in organizations; the relationship of organizations to local communities andto the environment; issues of race, culture and gender; and ethics and responsibility.It was this question—what is the nature of a critical approach?—that became the sub-ject of the first session of the course, and of this article.

There are many strands of thought in both the social and philosophical literaturethat can be labelled ‘critical’. These include:

1. what is termed ‘critical thinking’ (Chaffee, 1997; Hughes, 1996; McPeck, 1981;Paul, 1990; Ruggiero, 1988; Weast, 1996), that is, developing the discipline ofbeing sceptical or questioning about statements, propositions or information;

2. critical social theory as in the Frankfurt School and more particularly the work ofHabermas (1978, 1984, 1993a; Harnden, 1996) that is critical of the prevailingstructures, values, and rationalities in society;

3. two strands of thought within the management literature that draw especially onHabermas—critical management studies (Alvesson and Willmott, 1992, 1996;French and Grey, 1996), and critical systems thinking (Flood and Jackson, 1991;Flood and Romm, 1996; Jackson, 1991a, 1991b; Mingers, 1984, 1992, 1997;Mingers and Gill, 1997); and

4. the work of Foucault, especially on power and its relationship to knowledge(Foucault, 1980, 1982).

These all related to or exemplified the different aspects of being critical that wereexpressed within the group.

The problem from a pedagogic point of view was how to present these different,and quite sophisticated, notions in a way that would be meaningful to our particularstudents in the context of this course. The main constraints were, first, that many ofthe students, especially those from the Accounting and Finance course, would haveno background in social science or organizational behaviour at all. Second, beingundergraduates almost none would have experience of real-world organizationalwork and many would have been taught a very rationalistic and abstract view ofdecision-making. Third, there were to be no lectures and so any material assigned tothe students would have to be intelligible in its own right. And fourth, that this wasto be the first session of the course and so could assume no prior material. The mainconclusions were that a fairly simplistic framework would need to be developed torelate these different aspects together; that the reading material would need to beboth straightforward and interesting; that some practical activity to allow the stu-dents to apply the material would be necessary; and that the students would have tobecome aware of the messy nature of real-world decision-making to motivate theirparticipation in the course.

The rest of this section explains the response to these concerns.


10

Four Aspects of Being Critical

In everyday language, ‘being critical’ means finding fault and being negative aboutsomething. It can often be quite destructive rather than constructive, and is oftendone with a particular antagonistic motive or attitude. In developing a criticalapproach in the course, we were concerned that it should not be purely destructive;that it should be rigorous and structured; and that it should generate insights thatare valuable in taking practical action. What all of the different aspects of being criti-cal mentioned above seemed to share was not taking things for granted, not justaccepting how the situation seemed or was portrayed but questioning or evaluatingsuch claims before deciding or acting. This may seem quite simple or straightforwardbut, if done seriously, rigorously, and radically it can lead to far-reaching and unset-tling conclusions.

Four different dimensions of questioning or scepticism were identified. Therationale for these was based, by analogy, on Habermas’ (1979, 1984) theory of com-municative action, and (1992, 1993a) discourse ethics, and in particular his theory ofthe validity claims of speech acts. Habermas argues that any communicative utter-ance aimed at generating understanding and agreement implicitly raises four validityclaims—that it is comprehensible, that it is factually correct or in principle possible(truth), that it is acceptable normatively (rightness), and that it is meant sincerely(truthfulness). In our situation we are concerned with a wider range than simplyspeech acts—for example, plans, proposals, actions, and designs; and they may wellnot be communicative (i.e. oriented towards understanding) but may well be stra-tegic (oriented towards getting one’s way). In an analogous manner, we can say thatproposals for action involve implicit assumptions or validity claims that should bequestioned. First, the logical soundness of the argument and its manner ofexpression (rhetoric); second, the taken-for-granted assumptions about factual mat-ters and acceptable social practices and values (tradition); third, assumptions madeabout legitimacy and whose views should be privileged (authority); and fourth,assumptions concerning the validity of knowledge and information (objectivity).These four aspects of a critical approach are further developed below, and are illus-trated by one of the course case studies in a later section.

(i) Critical thinking—the critique of rhetoric The first sense that is considered is thatknown as critical thinking.2 At the simplest level this concerns being able to evaluatewhether people’s arguments and propositions are sound in a logical sense (Hughes,1996). Do the conclusions follow from the premises? Are the premises themselvesjustifiable? Is language being used in a fair way, or is it deliberately emotive or mis-leading? This might appear to be a simple technical skill concerned with the logicalanalysis of language, but in real situations it can become extremely difficult to fullyunderstand what is meant or claimed by some assertion, or to discover whether par-ticular claims are or are not valid.

Critical thinking can be defined more widely (McPeck, 1981) to involve a scepti-cism or suspension of belief towards particular statements, information, or norms.To think critically is not purely abstract but is always about some particular problemor domain. It therefore requires knowledge and skills specific to the problem or dis-ciplinary domain although Paul (1990) argues that critical thinking is a general skillrather than being domain specific. It should also be reflective scepticism—being


11

aware of its purpose (why am I adopting this particular attitude?) and being capableof offering alternatives. This aspect of being critical could be called the critique of rhet-oric as it is particularly concerned with the use of language.3

(ii) Being sceptical of conventional wisdom—the critique of tradition The other senses ofthe term critical that we will consider are really developments of this sceptical atti-tude, taking less for granted and questioning deeper and more fundamental assump-tions that we usually make. One of the most common assumptions we meet inorganizations (and society more generally) is that of tradition or custom—the taken-for-granted ‘way we do things around here’. Organizations and parts of organizationsdevelop particular cultures and particular practices. These may have originated forgood reasons, or simply by chance, but they tend to become accepted and, indeed,unseen. However, they may well not be the most appropriate way of doing things,either because the situation has changed, or because in fact they never were, orbecause they deny or contradict moral values such as sexism, racism or environmen-talism.

It is often not so much the long-standing practices or traditions of an organization,but assumptions that relate to a particular project or plan. These can be seen asboundary judgements (Ulrich, 1991), often set by technical experts or powerfulgroups, that limit (perhaps implicitly) what may be debated or challenged.Questioning such practices or judgements can often provoke strong reaction andthe weight of tradition and authority may well be used to support them. Trying tochange them can be extremely difficult as it will inevitably change the status quo andupset established patterns of power and authority. This can be called the critique oftradition.

(iii) Being sceptical of one dominant view—the critique of authority Another, deeper,assumption is that there should be just one right or dominant view as opposed to aplurality of different but valid perspectives. For students this is particularly difficultto accept since much of their education so far will have been aimed at teaching the‘correct’ answer, on the assumption that there is one. They will not have beenencouraged to question the validity of their teachers. However, by this stage in theirfinal year, they should be appreciating that there are genuine disagreements andunresolved issues even within academic disciplines. The situation in the organiz-ational world, which does not split itself into well-defined disciplines and problems,can be highly complex with many different stakeholders involved. These interestgroups will all have different experiences of the situation, different relationships toit, and stand to benefit or lose in different ways. Recognizing that there is a multi-plicity of perspectives, questioning the dominant view or privileged position, andtrying to ‘see the world through another’s eyes’ (Checkland and Scholes, 1990;Churchman, 1968) could be called the critique of authority.

(iv) Being sceptical of information and knowledge—the critique of objectivity The finallevel to be considered is questioning the validity of the knowledge and informationthat is available, and recognizing that it is never value-free and objective. At the sim-plest level students have to see that even seemingly objective ‘facts’ such as quantita-tive data do not simply occur but are the result of particular processes involving awhole variety of people, operations, and decisions/choices. Which factors are


12

recorded and which are not? How are they recorded or measured—there are usuallyseveral possibilities? Can important factors be measured at all or do we have to usesome surrogate? Do the non-quantifiable judgmental factors get given their dueweight (Mingers, 1989)? Even when some data have been produced, they onlybecome usable as information when someone interprets them from their point of viewand for their particular purposes. A simple table of data embodies many assumptionsand has as many interpretations as there are readers.

At a broader level it can be argued that information and knowledge always reflector are shaped by the structures of power and interest within a situation (Foucault,1980, 1988). Which problems are raised and which are not? Which decisions gettaken and which are always put off ? To what extent are particular interest groupsable to promote or suppress certain information, or shape the agendas of dis-cussions and meetings? This aspect of critical thinking can be called the critique ofobjectivity as it calls into question the whole idea of there being objective, value-freeknowledge.

This framework was fleshed out for students with readings. A set of very basic oneswere handed out (see Table 1) and references were given to the literature for the stu-dents to follow up if interested. It was also pointed out to students that being overlycritical in a real situation could be dangerous—it needed a health warning:

1. Criticism can very easily be negative and destructive. Constantly pointing out theproblems with particular proposals, especially if this is done in an unpleasant way,can have a wholly unhelpful effect both for the problem and for yourself.Criticism should always try to be constructive and you should aim to put forwardyour own positive proposals that can, in their turn, be criticized by others.

2. People generally find it hard to receive criticism—it is threatening and demoral-izing. This is especially true when younger and possibly newer people criticize


Table 1 Four aspects of being critical, and associated reading

Topic Calls into question Readings included

Introduction Alvesson and Willmott (1996, ch. 1)

Critique of rhetoric The language used, the form Hughes (1996, chs 1, 13, 14)(critical thinking) of argument, the validity of

the premises and assumptions

Critique of tradition The taken-for-granted, Goldratt and Cox (1993: traditional ways of doing 124–7)things

Critique of authority One dominant or privileged Churchman (1968, ch. 14)position. Accepts a plurality of viewpoints

Critique of objectivity The idea of objective, Mingers (1989)value-free, disinterested knowledge. Recognizes that Foucault (1982)information and knowledge are partial and power-based

13

those who are more established. It can lead to unpleasantness and unpopularity.Be sensitive and try to criticize the proposals and ideas rather than the individ-uals.

3. Finally, if you seriously challenge the existing power structures do not be sur-prised if they fight back. Think carefully of your own position.

An Overview of the Course and its Materials

The main pedagogic aims of the course, apart from the critical content discussedabove, were that it should be inter-disciplinary, should be based on participative, stu-dent-centred learning, and should develop practical skills such as presentations anddifferent forms of writing. The framework of the course was clear in principle butwas very complex in its logistical details. There were to be no lectures at all on thecourse (apart from an introduction) but only fortnightly, two-hour seminars (10 inall across two terms) at which the students would give individual and group presen-tations on a case study, and participate in discussions led by the tutor. There wouldbe roughly 20 students to a seminar group and these would be split into five sub-groups, two of which would present each week. Each student would also review abook from a list of books that the staff felt were important for management studentsto be aware of. The review would be presented orally and in writing. The assessmentfor each student would consist of four written-up case studies, the book review, anda mark allocated by the tutor for classroom performance and participation through-out the year.

Different staff members would contribute their own case studies that would thenbe taught by all members of the group. The cases were not to be too tied in to a par-ticular disciplinary background but should explore the different facets of the courseand allow an inter-disciplinary approach (see Table 2 for a list of the 10 sessions).The final session was to be different in that the case study was the CIM course itself.The students were required to present a critical evaluation of the course with arguedrecommendations for practical improvements in both the short and long term. Theresults of this review are discussed later in the article.


Table 2 Outline of the sessions and case studies

Session Topic/case study

0 Introduction to critical thinking: Decision Steel1 Critical thinking: The Taurus Debacle2 Soft systems: Middleton Mutual3 Sexual harassment: The Harassing Client4 The power of numbers: Waterford Glass5 ‘Irrationality’ at work: Managing to Survive6 Corporate citizenship: Closing a Plant—BP at Baglan Bay7 Social reporting: The Triple Bottom Line8 Sources of corporate success: The Honda Effect9 Ethical responsibilities: Whistleblowing in the Civil Service

10 Critical review of the CIM course

14

Case Study for the Critical Approach Session

This section considers the choice of case study for the first, ‘What is a CriticalApproach?’ session, and illustrates the four critiques framework outlined above. Itwas felt that, initially, the students needed a practical activity and exposure to realis-tic decision behaviour. For the latter, the best idea seemed to be a video of a real situ-ation, and the well-known ‘Decision Steel’ was used. This was one of a series of threemade in the late 1970s. It is excellent for the purpose and although it is rather oldthere does not appear to be anything similar made more recently. The students wereshown a short version of the video and asked to identify examples of the four aspectsof the critical approach.

Several possibilities were considered for the case study that the students wouldmake presentations on. Two were recent examples of major information systems fail-ures that had received much publicity, at least in the UK—the London AmbulanceDispatch System, LASCAD, (Beynon-Davies, 1995)4 and the London Stock Exchangesettlement system, Taurus, (Drummond, 1996a, 1996b). A third was a description ofthe involvement of large-scale OR models in the public enquiry about the Sizewell Bnuclear power station (Ormerod, 1997). The fourth was more unconventional. It wasan ongoing (in 1997) case in which a well-known information systems lecturer in theUS (Ojelanki Ngwenyana) was suing his university for racial discrimination after notreceiving tenure. He had established a web site5 and was making available all theinformation about the case, including both legal submissions and documentationfrom within the university.

In the event, the Taurus case was considered the most relevant and comprehen-sive. This was a massive project, initiated by the London Stock Exchange, to com-puterize the whole of its trading and settlements, something that had previouslybeen done entirely manually. Not only was it to be the first computer system, but italso involved a complete redesign of the way that stock trading was carried out, withmajor implications for a whole range of public and private institutions. In the event,Taurus was an enormous, costly, public disaster that caused much anguish both per-sonal and corporate. Unfortunately, it is only one of several, equally high-profile, ITprojects that have been major failures in recent years. The most serious probably wasthe London Ambulance Dispatch project that broke down when it was first put intoservice, possibly causing several deaths. Others include the Wessex Regional HealthIS, the Confirm travel industry reservation system, and the Mandata public serviceinformation system. One of the common features of all these experiences is a dislo-cation between the technical rationality driving the development and design, andthe social and political realities of the surrounding context. In some examples thetechnologists have pushed forward with unrealistic promises of what can be deliv-ered; in others (e.g. Taurus) the political drivers have forced unrealistic demands onthe technology. But perhaps in all of them a greater degree of critical questioningand scrutiny at an early stage may have mitigated the extent of the calamity.

One reason why the case history was chosen is the availability of information.Drummond made an extensive study of Taurus, including many interviews with par-ticipants. This is fully written up in a book (Drummond, 1996a) that describes theproject from different parties’ perspectives and contains a listing of the extensivepress coverage that was given throughout the project. But for students a short versionis available in a paper (Drummond, 1996b). They were encouraged to look up some


15

of the newspaper articles as well. The students were asked to use the case to illustratethe different types of critical thinking that could be applied to this situation.Illustrations of what they came up with are given below.

Critique of tradition or conventional wisdom In many ways this is a theme that runsthroughout the case. By ‘tradition’ I do not necessarily mean long-standing histori-cal arrangements but simply the accepted, taken- for-granted assumptions and waysof doing things that arise in any organizational group or project. Here, the mainassumption is that the project as a whole cannot be questioned. Nobody ever says‘why are we doing this’, or ‘is the whole thing really feasible?’. Even when PeterRawlins (the Chief Executive) does begin to question he is over-ruled. The prevail-ing orthodoxy becomes embodied in the institutions and procedures and becomes agiven context or boundary within which everything else proceeds. Each new problemis treated incrementally, as something to be dealt with, often by quite differentgroups, and no one really puts together the political aspirations with the technicalrealities.

Critique of authority: there are many interests and stakeholders This case is a classicexample of a situation involving many different parties with divergent and sometimesconflicting viewpoints and interests. The students should identify as many of these asthey can, try to articulate what the project looks like from that particular perspective(both from what is said in the case and from common-sense), and highlight the poss-ible conflicts and alliances between these varied stakeholders.

• The Stock Exchange whose project it is and who have put up lots of money. They facea loss of power post-Big Bang and see the project as necessary for their survival, andas enabling them to control the settlements business. In this they are in conflictwith their members, the brokers.

• Retail stock brokers who have traditionally carried out this function. They feel threat-ened by the loss of the traditional system and are having to spend a lot of moneyto come into the new one.

• Listed companies, pension funds etc. will be the major institutional customers of thesystem but they are not convinced that it will work properly and feel left out of thedecision-making process. They try to sabotage the project.

• Individual personal investors are completely ignored by the initial design but it isimportant to the government that they be safeguarded.

• The government/DTI are very interested in the long-term future of London as afinance centre, and the reputation of the UK, but do not want a system that causesa problem for the ‘small shareholder’, i.e. the voters.

• The Bank of England shares the government’s desire that London be seen as thefinancial capital of the world and is part of a pressure group of internationalbanks. It also has ultimate responsibility for regulating the stock market.

• The technical team are having to work under enormous pressure to come up with asolution to what may, in fact, be technically infeasible. They are being battered byvaried and constantly changing requirements, and an over-ambitious timetable.They are having to deal with the constraints of a ready-made package that may notbe suitable. They are highly dedicated and committed (often working 80 hours perweek) to the project.


16

• Peter Rawlins, Chief Executive, should theoretically be in a position to overview thewhole mess but in practice has even more pressing problems initially, overseeing amajor re-structuring of the Stock Exchange as a whole.

• Several other interested groups and individuals including Watson, the projectdirector; the Taurus monitoring group; the producers of the Vista software; andvarious consultancies such as Coopers and Lybrand who had their reputations tomaintain.

Critique of objectivity and power The case history (in the article) is written at quite ahigh level of generality without much detail but even so there are several instancesin the case of concern about the validity of information and of the explicit andimplicit exercise of power. The case supports quite well the Foucauldian view ofpower as ever present and ‘in action’, shaping and modulating the unfolding eventswithout it being knowingly exercised by some controlling subject. It also lends itselfto analysis in terms of actor-network theory (Callon, 1986; Law, 1986, 1992). Someclear examples of power are:

• The decision not to go for a central register because the Stock Exchange could notimpose its will on the industry.

• The adoption of a very complex design to try to meet the many conflictinginterests.

• The influence of the international banks in preventing the project as a wholebeing questioned.

• The fear of upsetting the apple cart by questioning the project so that such issueswere never even raised.

• The resistance to the project by stock brokers and clearing banks that led them toenlist the help of the government in imposing constraints on the project.

• The development of the project in the first place as a way of securing the loss ofinfluence of the Stock Exchange.

One can also see some evidence of the unreliability of available information. Therewas much, supposedly ‘objective’, quantitative information that seemed to show thateverything was all right, yet the gut feelings of several people were that there weremajor problems. Whether the information was deliberately distorted or just did notcapture the important qualitative aspects of the situation is not clear, but what isclear is that the gut feelings were right and the figures wrong.

Evaluation and Review of the CIM Course

This section provides an evaluation of the course after its first complete year. Thereare two sources for the review—an informal discussion in the seminar groups after afew weeks of the course, and an analysis of the students’ written evaluation producedafter the final session of the course.

Informal Reactions

• Considerable concern over the rather diffuse nature of the course in comparisonwith other more traditional ones. This was expressed as ‘we want lectures so we


17

know what we have to do’! Clearly it is very much a part of the philosophy of thecourse to try to develop in students an ability to take responsibility for their ownlearning, and to be able to tolerate the ambiguity of a course without tight bound-aries and a formal exam.

• Understandable concern about being assessed on presentations and classroomperformance. Training in presentation skills has been provided, and students rec-ognize its value, but inevitably presenting orally is partly personality based, andputs overseas students at a potential disadvantage. The question of assessing class-room discussion is more problematic and there was considerable debate about thisin the development team. It is difficult to do equitably, is highly subjective, favoursthose who say a lot even if it is of little value, and disadvantages those who comefrom cultures that do not encourage participation. Nevertheless, contribution andparticipation are so central to this course that it was felt that it must be assessed.

• Surprisingly perhaps, the idea of doing book reviews worried a number of stu-dents. Even after being given guidance many were uncertain of how to do one anddoubted its relevance. Yet after the event almost all students found the book theyreviewed valuable as did other members of the seminar group.

• With regard to the specific material on a critical approach, the theoretical frame-work was found to be relatively clear, and it was generally applied successfully tothe Taurus case. Some students found the case rather complex for the start of thecourse but at least that may make them aware of real-life complexity.

Analysis of Students’ Critical Reviews

In all, 30 students submitted this assessment and as they had a choice of four out of10 it was relatively unpopular. Also, as the report counted toward the overall mark,the sample may be biased towards those who felt positively about the course. Theoverall reaction among those who submitted was extremely positive towards theobjectives and style of the course. Only three (10 percent) could be said to have hada negative reaction. Examples of some comments are:

It did a good job. . . . The course was the highlight at interviews. . . . It went a long way toachieving its objectives. (#9532168)

It has undoubtedly been very successful and has comfortably achieved all of its outlinedobjectives. (#9539325)

I can honestly say that CIM has been one of the most interesting and beneficial courses Ihave taken at Warwick. (#9434460)

Virtually everyone agreed with the objectives of the course (to be discussed furtherbelow), and felt that the course had generally been successful in achieving them. Themain thrust of the responses was to point out many difficulties in the delivery of thecourse (recognizing that it was the first year) and to make practical suggestions forchanges. Some problems (and solutions) were agreed on by most people, whileothers generated opposing views.

The most frequently mentioned concerns are shown in Table 3. The mostcommon was that the 20 percent assessment weighting for classroom participationwas too little. Given the emphasis that we put on presentations and participation, andthe time the students spent on it, the general suggestion was that it should count for


18

40 percent. There is in fact a structural problem with this suggestion as the univer-sity regulations limit the amount of non-written and group-based assessment.

I will briefly describe the other concerns that were mentioned:

• The feedback given by tutors on presentations was felt to be poor and inconsistent.Some suggestions were: use standard forms (these were available but not used);have meetings after the session; get student feedback (perhaps anonymously onforms); video some. There was general agreement that seminars were more inter-esting when different perspectives were presented by the two groups, or differentquestions were addressed. Role-playing was advocated by a number of students.Having different cases each week was also mentioned. Time limits for presen-tations should be strictly enforced both to give time for discussion and as a necess-ary skill. It was felt that it was necessary to enforce more participation bynon-presenting students. Some suggestions were: going round the table; requiringnon-presenting groups to respond to the talks; getting students to chair the dis-cussion; having smaller discussion groups that then came together.

• There were various problems with the range of books for review. Particularly, thatsome were too technical or textbookish, and there was too great a range of sizesmaking it unfair. Summaries of the books should be provided and the studentsasked to concentrate on reviewing rather than summarizing.

• The group work was seen as very important but it was felt that groups should notbe self-selected, but rather constructed so as to encompass a range of backgroundsand abilities. It was also felt that the membership should be changed after a term.

• There was a demand for more lecture input, for example people from companiesto discuss real-life problematic situations; inputs on specific areas such as ethics orlaw or soft systems methodology; and more on what was meant by a criticalapproach at the beginning, especially in terms of how to tackle a case study.

While all the above are sensible suggestions reflecting the students’ experience ofthe course, of greater concern for the overall aims of the course was that virtually allthe students failed to be genuinely critical. They simply accepted the course objec-tives as given and then reviewed the delivery of the course. This raises some import-ant points.

There were in fact two quite different interpretations of the objectives made by stu-dents, and indeed different sources for them. One interpretation claimed the main


Table 3 Most frequently mentioned concerns

Concern/suggestion Number

20% for participation too little 26Lecturers to give better feedback on presentations 18Have groups present different perspectives on the case 15Enforce strict time limits on presentations 14Some books too technical/textbookish 12Enforce more participation in the discussion 11Change group membership during the year 10Too wide size variations in books 10Give summaries of books at start 9Have outside lecturers (e.g. from companies) 8Provide more input on the critical approach and ethics 8

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purpose of the course was to improve the employability of students by giving thempractical skills. Reference was made to an article about the course published in aBusiness School newsletter that certainly gave this emphasis. The majority of stu-dents, however, saw it as a combination of critical thinking and practical skills, andreferenced the five objectives given in the first course hand-out. This demonstratesboth the differences of viewpoint among the staff on the course, and the extent towhich the course itself embodies the somewhat contradictory aims of developingpractical (and marketable) skills, and developing potentially subversive critical abili-ties. It also demonstrates the way that students can inevitably (and from their view-point legitimately) subvert the intentions of the educators and in a rather ironic wayrealize the underlying aims of the course.

More seriously, the unthinking acceptance of the course objectives is a sign that,at a deeper level, the course was not wholly successful. There were many fundamen-tal issues that could have been raised—about the nature of the course; the underly-ing rationale; the views of different stakeholders (students, different members ofstaff, employers etc.); possible conflicts between the various objectives; the poten-tially contradictory nature of the course itself (authority ordering them to questionauthority etc.) and so on. That none of the students chose to do this or, perhapsworse, either did not feel they were allowed to, or even did not conceive of doing it,is testimony to the difficulty of fostering a genuinely critical attitude. Whether this isprimarily a failure of the delivery of this particular course, or whether it is a sign ofmore deep-seated social or psychological constraints will be better answered afterseveral more years of development.

Conclusions

The CIM course has been a learning experience as much for the academics involvedas for the students. Given its innovatory nature, and its complexity, I feel that the firstyear has been a qualified success. There are many lessons we have learnt, about boththe practicalities of its delivery and its underlying rationale, so that we will be able tomake it more effective in future years. Whether we will be able to develop the degreeof critical and reflective practice in the students that we hope for through this singlecourse is a matter for the future.

Notes

I would like to acknowledge the other members of staff involved in designing this course:John Benington, Paul Edwards, Anthony Lawton, Brendan McSweeney, Chris Marsden,Yasmin Merali, Tony Steele, Robin Wensley.

1. WBS has around 112 full lecturing staff organized into five disciplinary groupings—accounting and finance, operational research and systems, marketing and strategic man-agement, industrial relations and organizational behaviour, and production and servicemanagement.

2. There are several institutions concerned explicitly with promoting critical thinking. TheFoundation for Critical Thinking, Santa Rosa, California maintains resources and pro-duces videos; and a web site has an annotated bibliography:


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http://www.montclair.edu/Pages/CRC/Bibliographies/CriticalThinking.html.It is an important area within education, especially schools, and in psychology.

3. The term ‘critique’ is taken to mean a particular critical appraisal or evaluation of some problem or situation; ‘rhetoric’ is used in its general sense of the effective use oflanguage.

4. There is an interesting analysis of this case through the framework of Clegg’s (1989) ‘cir-cuits of power model’ in Introna (1997).

5. The web address is: http://www.okn.com/

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Foucault: Beyond Structuralism and Hermeneutics, pp. 208–26. Chicago: University of ChicagoPress.

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Contact Address

John Mingers is at Warwick Business School, Warwick University, Coventry CV4 7AL, UK.[email: [email protected]]


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Reading 1 for Week 4. Excerpt from: Esty, D and Winston, A (2009) Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, Wiley.

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Chapter 12 Eco-Advantage Strategy

In Michael Porter's highly regarded stra tegy model, companies gain competitive advantage by lowering costS or differentiating products. But today the traditional points of competitive differentiation are being squeezed on aU sides . Outsourcing-and the lower Jabor costs it promises-is available to almost any business, big or small. Other once unassailable sources of advantage, such as access to capital or low-cost raw materials, a re disappearing as markets go global. Competitive advantages are becoming ever more difficult to establish and maintain.

This restructured landscape requires refined business strategy. The capacity fo r innovation-bringing imagination to bear to solve problems and respond to human needs-lies at the heart of success. Companies must find new ways to break out of the pack. T hose that don't will struggle to keep up in the ma rketplace.

Environmenta l strategy offers just this sort of opportunity. As a relatively new variable in the competitive mix and a market-reshaping

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282 Putting It All Together

•

issue, (he environment presents a lens through which to examine a faci lity, company, or industry-and a way to bring fresh th inking to bear. Careful use of the environmental perspective can help to reduce COStS and risks . But it also can drive upside gains, increasing revenues and the value of hard -to-measure but im portant intangibles such as reputation. Findi ng new market spaces, satisfying Customers' needs in new ways, and just plain doing the right thing-which many important stakeholders appreciate and reward-all have the potential to add real value.

The business world is waking up to an inevitable and unavoid. able truth: T he economy and the environment are deeply intertwined. All goods depend on the bounty of Nature and the services it provides. Without careful stewardship, natura l resource constra ints will encroach on a growing number of companies and industries. Concern about these trends is driving laws, rules, and expectations that will further restrain business . The environment thus ranks as a macroissue tight up there with globalization, the Internet, and the other mega forces that keep CEOs up at night. In this new, more complicated and interconnected world, envi ronmental strategy emerges as a critical point of competitive differen tiation.

In the very near future, no company will be pos it ioned

for industry leadership and sustained profitability

without facto ring environmental issues into its

strategy.

Strategy no longer rests in the hands of narrowly focused planning teams. Toda y, every company's financial futute depends on executives who possess the abil ity for integrated thinking. The companies "in the barrel" of the Green \Y/ave adeptly incorporate the environment into their core strategy. They wo rk with a dynamic and holistic vision of how a company operates and engage the full range of sta keholders who can shape the company's future. T hey crea te enduring

26

Eco-Advantage Strategy 28:

£Co-Advantage by thinking differently, adopting tools to understand tbeir companies' environmental challenges and opportunities, and embedding attention to stewardship in their corporate values.

We see four foundational elements-an Eco-Advantage Mindset, Eco-Tracking, Redesign , and Culture-underpinning environmentdrive n innovation. In this chapter, we review how to develop these critical supports. We also explore the forces influencing companies, tbe Green-co-Gold Plays that offer a way to get ahead o f the competitive pack, and the hurdles co avoid on the wa y to Eco-Advantage.

We bring these elements together in a complete picture of environmental strategy (see figure ). The adept use of the Eco-Advantage Toolkit drives successful execution of the Green-to-Gold Plays. Natural forces and a range of players exert Significant influence on the process. Companies face many hurdles and risks of failu re on the way

Eco-Advantage Strategy

HURDLES . I

OfIGANIUTI_

27


to Eco-Advamagc. But those who persist and learn from experien find ways to innovate, create value, and build competitive advanra

THE PRESSURES: NATURAL FORCES AND PLAYERS

We sta rred this book with stories of companies at various stages 0

dealing with environmental issues. Sony, having learned a hard lesso with its PlayStation game systems, spent over $100 million building a supplier audi t system to catch problems before they emerge. BP while it was " looking for carbon," found a range of efficiency gai and discovered an aston ishing h billion plus in value waiting to he unlocked . And \Va l-Mart, GE, and Goldman Sachs, in moves tha t the companies' previous leaders might find su rreal, have launched major environmenta l initiatives. After years of neglect, considerations o f the

• environment have grown in importance. So let's return to o ur opening questio n: What 's going on?

In short, a Green Wave is sweeping the business community, propelled by two fundamental forces: (1) pollmion and natura l resource stresses and (2) a world of people who are insisti ng that the business commu nity rake action in response. These drivers are transfonnin marker dynamics. They arc rendering old ways of doing business obsolete-and impos ing challenges that every company, from multinational corporations to mom-and-pop shops, muSt face. But t . rea lignment also creates opportunities for Eco-Advantage.

The Nat ural Forces

Under the Wave lies an assortment of local, regional, national, a global environmental problems that constrain business choices :1

req uire management attention. Some of the issues in play, from wa shortages to climate change, threaten to restructure markers (as w as the planet) in fundamental ways. Others will have smaller impac. But all provide opportunities for those who respond most creatively;

In Chapter 2, we presented 10 critica l environmental issues wi which every executive must be familiar (see box for recap). So such as ozone layer depletion, are being managed pretty well a lread O thers verge on crisis. The most pressing issues, like climate chan nromi~e to affect everv business. large and small. in every indus

28

Eco-Advantage Strategy 28!

TOP 10 ENVIRONMENTAL PROBLEMS

Climate Change. The build-u p o~ greenhouse gases in the atmosphere threatens to lead to global warming and the accompanying rising sea levels, changed rainfall patterns, and increased intensity of storms. Energy. A carbon-constrained future will require a shift toward new modes of power generation and sustainable energy or new technologies for cleanly burning fossil fuels.

Water. Water-quality issues and water shortages are threatening licenses to operate and constraining business activities all around the globe. Biodiversity and land Use. Ecosystems play a critical role as life support for both humans and nature. Unmanaged development undermines this capacity through habitat destruction, loss of open space, and species decline. Chemicals, Toxins, and Heavy Metals. These contaminants crealI'! a risk of cancer, reproductive harm, and other health issues in humans, plants, and animals. Air Pollution. Smog, particulates, and volatile organic compounds pose a risk to public health, especially in the developing world where trends are worsening . Indoor air pollution is now recognized as an added problem. Waste Management. Many communities still struggle with the disposal of their solid and toxic waste, especially in countries that are industrializing and becoming more urban. Ozone Layer Depletion. Depletion has been substantially reduced by phasing out CFCs, but some substitutes continue to cause thinning of the Earth's protective ozone shield.

Oceans and Fisheries. Overfishing, pollution, and climate change have depleted fi sh stocks and damaged marine ecosystems across the Seven Seas. Deforestation. Unsustainable timber harvesting plagues many parts of the world, leading to soil erosion, water pollution, increased risk of flooding, and scarred landscapes.

Others are strategically importam for business only in certain contexts . And there are a dozen more issues with industry-specific impacts that could also be significam.

What makes these pressures a matter of business strategy is one imole truth: Our economy rests on the asset base of the na tural

29


world, not the other way around. Where resources are threatened , ripples will move through society and across the corporate world.

These issues arc complicated. Tht:" fact that the underlying science is often complex, even contradictory at times, makes the situation eveI). more volatile and environmenta l policymaking highly contested. Some publ ic policy choices cou ld drive whole industries into obsolescence. Can the coa l business survive in a carbon-constra ined world? We can be sure that those affected will not go quietly. In fact, coa l companies are working hard to shape the direction of climate change legislation or action-it's a bet-the-industry issue for them.

On the othe r side o f the ledger are companies and industries that will be crippled if we dotl't take action to stem environmental losses. The skiing industry will be juSt one sma ll symbolic economic loss if global warming and ene rgy constraints continue on their current

• path-airlines, transportation, and all energy- intensive businesses are at risk. And everyone's insurance COStS will rise if reinsurers jack up rates to handle the growing claims from climate change-related natural disasters.

The diversity of issues, variety of interests, and range of sc ienti fic uncertainties can be daunting. Bur executives can't just throw up their hands in despair and confusion. Companies need to stay on top of these challenges no matter how complex, both to reduce risk and to pounce on emerging opportunities.

SCIENTIfiC UNCERTAINTY

After a CEO powwow on climate change, Duke Energy CEO Jim Rogers said, "Forget the science debate. The regulations will change someday. And if we' re not ready, we're in trouble." He's' voicing a simple reality. There is no such thing as absolute scientific certainty. Business should not delay their response and risk being unprepared. Environmental problems will find you whether or not you care to be inconvenienced by them.

The Players

An evolv ing set of stakeholders who ca re about these issues and Uli,.lrl i,...fll1pnrp nvpr ("nrnnr:ne hehavior are addine to the momentum

30

fco-Advantage Strategy 287

behind the Green Wave. ]0 the traditional B~school strategy, com~ panies are led by charismatic leaders who make bold decisions, inOu~ c:nccd by only a handful of actors: competitors, C\lstomers, "channel s" (suppliers and distribution), and maybe government regulators. And all of these players are subservient to the almighty shareholder .

The balance of power hasn' t entirely changed, but CEOs have cause to feel like the ground is shifting beneath their feet. New stakeholders are asking tough questions about socia l and environmental perfor~

mance. Civil society in general, and environmental NGOs in particu~

lar, have emerged as forces (0 be reckoned with. Coordinated action against irresponsible corporations has never been easier thanks to e~mail) the Web, social networking, and other modern communications technologies. And activ ist shareholders, including large mainstream investment companies, have suddenly found their voice. Nervous boards now watch over the shoulders of CEOs like never before.

As difficu lt as it is, igno ring these drivers of roday's business re~

ality is even more unwise. Sure, a few remaining corporate titans still think that most environmental issues are overblown creations of some Birkensrock-wearing, tree~hugging fringe element. As misguided as this caricature may be, rhe truth is actually beside rhe point. The concern around these issues is broad enough that every director, executive, and manager must pay attention to the Green Wave. Anyone who thinks he or she can avoid it risks being drowned by the gtowing array of legal requireme nts-like those laid out in the Sarbanes-Oxley law-that mandate attention to potential "material" issues, including environmental challenges.

Our research has identified an array of 20 Grecn Wave players, some marginal for the time bei ng, but many more growing in power and importance. These stakeholders break inco five groups:

Rulemakers and Watchdogs. NGOs, regu lators, politicians, and the plaintiff's bar. The array of players in this category is expanding ~oth "vertically" and "horizontally." National regu lators in many regions, particularly the European Union, are growing more aggressive. But down the vertical scale, regional, state, and local governments are getting involved in environmental issues in ways they never have be~ fore . American states, for instance, are sening their own renewable energy goals. And U.S. mayors are agreeing, on their own, to implement the climate chanee emissions reductjons targets of the Kvoto

31


Protocol. Go up che vertical dimension and you'll see continenHvide regulations like the EU's laws on chemicals and electronics. At the largest scale, calls for global regulations on a range of environmental issues arc growing.

On the horizontal di mension we see an increasing breadth of power centers. Companies must track not on ly the requirements of govern. ments but also the demands of an incredible diversiry o f NGOs and other self·appo inted wa tchdogs (like bloggers). These new players can do great damage to a company's reputation quickly. O nline tools on ly make it easier to turn the slightest corpo rate misstep into an international incident. But the news is not all bad for companies. An explosion of partnerships has created dyna mic a lliances between fo r· mer adversaries . NGOs are working with, not against, business like never before.

• Idea Generators and Opinion Leaders. Media, think tan ks, and aca· demics. In roday's innovation·driven world, being connected to those creating knowledge, launching ideas, and shaping the political dia· logue provides a competitive leg up. To tap top thinkers, WaveRiders have launched partnerships with academic insti tutions and research centers aro und the world.

Business Partners and Compet itors. Industry associations, competi. rors, business·to·business buyers, and suppliers. Businesses are now finding ways to work together for env ironmental gain and to get ahead of the issues . The trend started 20 years ago with the chemical ind ustry and its Responsible Care program and has blossomed since.

Electronics companies have joined together to set supply chain stan· dards. Big energy users formed the Green Power Market Develop· ment Group to encourage renewable energy development. A range of paper buyers, from Staples to Toyota , fo rmed the Paper Working Group to coor-d inate the requirements they'll ask paper suppliers to

meet, in effect imposing a priva tely determined set of environmental standards.

The pressu re for change usually starts with big brands, but the effects a re fel t on obscure midsized companies caught in the web. A few yea rs ago, Home Depot changed its procurement policies to

eliminate products that origina ted in endangered forests. In response, the floo ring company Romanoff changed one of its products from

32

Eco-Advantage Strategy 289

plywood to renewable wheat straw. As President Douglas Romanoff said , "The Home Depot purchasing policy ... has produced a direct ripple effect that has resu lted in a significant change in the material we will use in the fu ture."

Consumers and Community. CEO and executive peers, consumers, kids, and communities. When an environmental boycott works, it's impressive. In the wake of the famous Brent Spar oil platform incident in the mid-1990S, a million Europeans cut up Shell credit cards. The company took notice and set off on a decade- long quest to improve stakeholder relations. And the list of those who might ca ll you out is expanding. More and more consumers are what some call "conflicted» o r "conscious" and are looking for environmental and social dimensions in thei r purchases, from food to clothes to ca rs.

Investors and Risk Assessors. Employees, shareholders, insurers, capital markets, and banks. As every executive knows, in today's know ledge-based economy, capturing the best and the brightest is nor just helpful, it's essential. Before the most talented workers invest their time and energy in a company, they increasingly ask what a potential employer stands fo r. They want to work for companies whose corporate values are in harmony with their own worldviews.

Trad itional investors have emerged as the new 8oo-pound gorilla in the environmenta l space. Led first by insurers and now joined by major banks, the financiers have started to look hard at environmental risks and liabilities. Over 60 banks have signed on to the Equator Principles, which demand thorough environmental reviews before loans are approved. But the Principles are just the starting point. Goldman Sachs, JPMorgan, Citibank, and many others are wrapping environmental conside rations into lending decisions in dramatic new ways.

ABN AMRO, one of the founders of the Equator Principles, has developed a new way of looking at its portfolio of loans. The company chart:s borrowers on a classic two-by-two matrix, with capacity to handle and mitigate environmental risks on one axis and commitment to do so on the other. In the near future, ABN AMRO hopes to graph all potential loans aga inst these criteria. Upper- right quadrant loans-with borrowers who "get it" and have the means to fix any eIIvironmental issues-would be no-brainers. Deals falling in the upper-left or lower-right quadrants would require some work on the

33

borrower's part. Loans to those in the lower- left corner-the unwill! ing and unable- wo uld not be made.

EeO-ADVANTAGE TOOLKIT ]

To be successful in integrating the environment infO business strateg , companies need to cultivate an Eco-Advantage Mindset hacked by a set of tools, including Eco-T racking, Culture, and Redesign.

Eco-Advantage Mindset

During our interviews with dozens of companies, we looked fo r what made them effective at bringing environmental considerations into the mix with Q[her business goa ls. We fou nd an overarching set of five principles tha t guided their thinking;

I. Look at the fo rest, nOt the trees . Wave Riders think broadly about • time, payoffs, and boundaries. They make decisions with the

long-term in mind, positioning themse lves for a tighter regulatory framework, rising consumer expectations, and market rea lignment driven by natural constraints. WaveRiders a lso include intangible benefits in their payoff calculations. They put a value on things like lower risk , higher employee retention, stronger cuSfOmer loyalty, and bolstered btand va lue. Finally, they think beyond their own operations and look at the whole value chain, from raw materia ls and su ppliers to cuStomer environmen tal needs and desi res to prod uct end -of- life.

2. Start at the top. All the WaveRiders have "C-Ieve!" support fo r their efforts to seek Eco-Advantage. Start with CEO commitment. That alone won 't put you over the top, but no company will get far wi thout it.

3. Adopt the Apollo 13 Principle. Don' t take no for an answer. Companies and industries have time and agai n shown incredib le creativi ty in solving seemingly intractable environmental problem~. WaveRiders focus on innovation and getting people to use an environme ntallens to think about thei r work in a new way.

4. Recognize that fee lings a re facts. Leading companies know that they have to deal with what communities, NGOs, and other stakeholders {eel the big environmental issues are. Instead of blindly

34


defending their own position or downpla ying others' concerns, they recognize the need to meet people where they stand. They don' t let outsiders dictate the agenda, but they do establish a dia logue with friends and foes alike.

5. Do the right thing. It 's amazing how often we were told that a sincere belief in doi ng what's right was behind WaveRider decisions. Va lues do matter.

Eco-Tracking

The next element o f the Toolkit is a systematic approach to capturing and using good information. Wave Riders use issue-spotting tools like the AUDIO analysis as well as Life Cycle Assessments to understand their environmental impacts. They look at the eco-consequences of their products a ll along the va lue chain , upstream and downstream.

These tools are most effective when they rest on a foundatio n of good data , ca reful planning, and an environmental management system. The best systems track dozens of metrics by region, division, factory, even down to particular production lines. And they track the same metties globally. Akan keeps a worldwide data wa rehouse on environmental performance. That wa y, all divisions work in a COIl

sistent way and are assessed against similar measures. Common data helps headquarters benchmark pe rformance, set targets, and monitor progress closely. As we mentioned in Chapter 7, we recommend a core set of metrics that track results on energy use, water and ai r pollution , waSte generation, and compliance.

Companies also need outside pe rspectives to learn whe re they stand in the world. Many WaveRiders establish relationsh ips with environmental experts. Some create advisory boa rds to "peer review" their environmental effons and stay ahead of issues that could slam them. Some invite the fox into the hen house by partnering with NGOs and other critics. No one necessarily looks forward to spenrl . ing time around a table with those who have raked them over the coals in the past, but their feedback is a va lua ble form of EeoTracking.

In the same spirit, Wave Riders also reach beyond environmental groups to work wi th communities, governments, other compan ies,

35

and any other stakeholder than can provide them with credible information on environmental issues and changing market conditions.

What gets measured gets managed. Knowledge is power.

Trite phrases perhaps, but the leading companies treat

these ideas not as throw-away lines but as calls to

actio n. They leverage data and knowledge to generate

sustained marketplace advantage.

Redesign

Tracking data helps define the playing field, but companies gain an • Eco-Advantage only when they understand environmental market

drivers, use their knowledge to dri ve innovation, and change prodUCts and processes. WaveRiders redesign their products, the spaces around them, and even their suppl y chains.

Eco-design, the second point of the Eco-Advantage Toolkit, has he lped companies like Intel and Herman Miller design out envi ronmental problems before they arise, saving time and money down the road. Factoring environmental considerations into product design also means helping cUS[Qmers reduce their environmental footprints. In a world of rising energy prices, for example, having rhe most energyefficient product on the market will often translate into rising market share.

A number of leading companies ha ve embraced green building as well. Why? Because well -designed, energy-effic ient facilities often save money, improve worke r productivity, and send a signal about corporate values.

A few companies such as IKEA are going beyond compliance audits and pressuring suppliers to change business practices. These best-in-class companies are redesigning entire value chains to reduce environmental and social impacts.

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Culture

The third leg of the Eco-Advantage support structu re centers on bu ild ing a corporate culture that promotes environmental thinking and innovation. Wh ile every business is unique, we found fou r common approaches across Wave Riders:

1. Stretch goals. WaveRiders use targets that seem symbol ic and even uncomfortable, but inspire innovation and a broad reexamination of how they do things. "The goal is zero" is one example. A few companies even discove r that "zero" is not' an unreachable number.

2. Decisionmaking tools. Top-tier companies refine traditional costbenefit analyses to allow for intangibles . They tweak interna l hurdle rates (or "pair" projects) to tip the ba lance in favor of some environmental investments. And they use Adam Smith's invisible hand, through internal markets, to guide decisions.

3. Ownership and engagement. CEO commitment gets the ball rolli ng. Engaging other senio r managers and all employees keeps it going. WaveRiders use various tools to make executives sit up and take notice of environmenta l priorities. Some are soft, like ass igning executives to be "stewards" of an environmental issue. Other tools have a decided bi te to them. GE's Session E, most notably, asks plant managers to ex plain their environmental performance in front of bosses and pee rs.

Wa veRiders also drive interest and engagement by crossfe rtilizing environmental and line managers. At lKEA, 3M, DuPont, and many others, the top environmental officials came our of line businesses. No division head can tell these experienced operational executives that they don't get it. The credibility of the environmenta l goals is greatly enhanced by sending the right messenge r.

Money and incentives focus attention, too . Many leading-edge companies build environmental key performance metrics into bonuses. At some of the globe's greenest companies-places like TK EA, 3M, and Herman Miller--deep cultural values, including a commitment to stewardshi p, motivate managers. Some companies, such as Wal-Mart, are trying to build that cul ture fast by helping employees make sustainability a part of their personal lives as well.

Finall y, awards, even if only plaques, go a long way. Ma ny WaveRiders have annua l environmental or sustainabili ty awards.

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Because the companies clearly treasure their green commitments, it's a real honor fO be singled OUt fo r environmenta l successes.

Whe the r through direct pay ince ntives or cultural

p ressure, WaveRide rs find ways to walk the talk and

a lign the ir state ments about e nvironmental

commit ment w ith o n-the-ground operational

decis ions.

4. Storytelling. Smarr companies tell the stories of their environmental goals, successes, and lessons learned fO nearly anyone who will listen. The knowledge sharing can happen through an inter·

_nal intranet of best practices or public reports. These documents inform all stakeholders, but particularl y employees, about what the company is doing right~and wrong. For internal audiences, ceo-train ing is an even more direct form of sfOrytelling. Teaching line managers how fO seek out cco-efficiency opportunities or taking middle managers through some what-if scenarios that demonstra te hard trade-offs can jump-starr innovative thinking and better decision making.

GREE N-TO-GOlD PLAYS

An Eco-Advantage Mindset, supported by the right tracking tools, a focus on redesign, and a culture of environmental stewardsh ip, lays the foundation for turning green to gold. But the real action lies in the strategies that create value, the Green-to-Gold Plays.

Like any other business strategy, our Green-to-Gold Plays aim to reduce the downsides a business faces (COSt and risk) or increase the upsides (revenue and intangible value). Unlike many others, though, these plays don ' t sacrifice responsibility in the pursuit of profit-or profit in the pursuit of responsibility. Our WaveRider companies o ffer proof every day that doing good and doing well can be symbiotic.

We've mapped the eight Green-to-Gold Plays drawn from oue study o f WaveRiders onto the two-by-rwo strategy framework we outlined

38

Green-to-Gold Plays Framework

REVENUES

• Eco-design

• Eco-sales and marketing

• Eco-defined new market space

More Certain I Short Term

COSTS

• Eco-eff iciency • Eco-expense

reduction

• Value chain eco-efficiency

INTANGIBLES

• Intangible value: Build reputation and trusted brands

RISKS

• Eco-risk control

earlier (see figure). Not surprisingly, most green business efforts to

date have focused on the lower left box. Cost reduction is extremely low risk, easy to sell internally, and often pays back quickly. It can yield competitive advantage. Bur our research suggests that, by focusing solely on the cost side, many companies are missing chances to generate broader Eco-Advantage. Most companies have not yet executed all o f the plays~they're leaving money on the table.

1. Eco-Efficiency

Cutting pollution and waste makes good business sense . Even highly efficient companies have been shocked ro discover savings they had

39


previously overlooked. O ver three decades, 3M continues to find new ways to pare costs through its 3P program, Pollution Prevention Pays. Many changes can be very simple. STMicroelectronics, for example, put in larger air-conditioner ducts, which allowed its air-circulating fan to run more slowly. T he fan now uses 85 percent less energy . In just one year, with $40 million invested in changes like these, the company saved $173 million.

Sometimes the search for eco-efficiency can leapfrog past reduction to outright elimination of a process or resource. Rohner Textil once produced its dyed, woven fibers in the same manner as everyone else in the industry. To make the fibers strong enough to weave, it would coat the yarn with chemicals, which had to be washed off later, crea.ting wastewater problems. \Vhile searching for a way to reduce chemical use, Rohner realized that humidity makes the fiber stronger. So the <company now skips the chemica l coating and simply doesn' t dry the ya rn quite as much, leaving moistu re in the fiber. Rohner cut o ut one step. shortened another, eliminated the chemicals, reduced energy use, and cut costs. A pretty good day at the eco-efficiency office.

Rohner's efficiency improvements have driven per worker productivity up 300 pe rcent over the past 2.0 yea rs. During a vicious downturn in its industry, Rohner, unlike many other companies, remained profitable.

[co-efficiency simply depends on cutting out waste and

using resources productively. Businesses that run lean

are more productive, profitable, and less polluting.

2. Eco-Expense Reduction

Efforrs to lower direct environmental COStS such as landfill fees or regulatory paperwork can also return big dividends. DuPont has saved billions on pollution control, and that's only the measurable cost of waSte. In one case, the company cut rejects from the l ycra production

i

40

fco-Adva ntage Strategy 297

line from 25 percent of volume to less than 10 percent. That focus on reducing waste saved marerial, lowered landfill costs, and freed up $l40 million in saleable product. It also meant the company could delay building another plant, saving many millions more in capira l expense. The ripples from cutting waSte and eco-expense can overflow and save money in many ways.

3. Va lue Cha in Eco-Efficiency

Companies [hat look broadly for environmental gains and use rools like Life Cycle Assessment oftcn find ways to reduce COStS throughout their value chains. The play here is to rey and caprure that value, which can be a difficult task. In Chapter 4, we talked about onc area in which companies are quite effective--distribution. IKEA and others sruff their trucks through smart package and produce design, and save money.

4. Eco-Risk Control

Wi th the rise of transparency, the risks to a business and its brand can come from anywhere. A substantial amOunt of goodwill is tied ro corporate reputation. If a distant supplier dumps waste in a ri ver or employs children, the major customer, with an international brand , may well be the one to pay the price.

Wave Riders identify potential risks and act on them as ea rl y as possible. When McDonald's pushes back on its suppl y chain to lower antibiotic use in chickens, or asks for documenta tion that ensures that cattle do not have mad cow disease, it's lowering the risk of contamina ting its brand. Intel spends millions to ship its hazardous waste from some developing countries to the United States so it can be disposed of properly. Why? Intel doesn't trust the waste-handli ng system in some countries where it o perates. And company officia ls know they' ll be blamed if somethi ng goes wrong.

WaveRiders get ahead of regulations before they get tighter. SP began its Clean Cities program and sold cleaner-burning, lower-sulfur fuels in part to get out in front o f more stringent air quality laws. "The driver was that sulfur regulations would come," BP's Chri s

41


•

Monershead told us. "Rather than deliver on ~ regulated schedul we decided to go earl y and try for a market benefit. '"

Anticipating regu lations can put a company in a position to m requirements at a lower cost than its competitors. Some co mpa ni have even obtained a competitive edge by lobbying for tighter COntra

Remember, it's o ften the relative regulato ry burden that matters.

5. Eco-Oe sign

Redesigning processes and products to cut waste and pollution is big part of Eco-Advantage. Keep in mind, tOO, that a great deal of potential ga in might lie outside the factory gates or your Own fa .. cil ities' doors. Helping customers reduce their environmental pro lems can strengthen customer loyalty and attract new sales . Reduc_ ing a product's energy use or toxicity also can add to Custom value. Like Johnson Controls, which sells entire energy management syStems, companies that find ways to lower customer burden can profit.

6. Eco-Sa les and Marketing

Marketing the green qua lities of products can drive sales. Wh Wausau Paper launched a new brand extension of "away from hom products-paper towels, toiler paper, and the like-it first certified t product line with Green Seal, an NCO specia li zing in environmen product labels. The company then rebranded the product & 050 Green Seal, puuing the certification right in the name. In an indus growing only 2. to 3 percent per year, Wausau's sa les in this mark leapt 44 percent in the first two years .

In fact, Wausau took an unusual route by focusing its marked pitch squa rely on the environmental message. Products that scre "green" to the exclusion of other qua lities often die on the shelv As Shell learned with its Pura gasoline, a product often needs to sta on other attributes first before selling the envi ronmental story. Gre we've found, is often beSt used as the "third button."

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7. Eco-Defined New Ma rket Space

Environmental vision can create new market space and value innovation. Toyota set o ut to redefine the twenty-fiest-century car and has come pretty close. Many customers now seek a hybrid, not a midsized ca r, and they'll pay a substantial premium or wa it months for a Prius in particular. Fo r these consumers, there is no substitute.

-Successful , long-lasting companies regularly redefi ne

II themselves. Environment-inspired innovation offe rs

II companies a new and exciting way to find fresh

~: express ions for the ir capab il ities.

Looking for environmentally defined market space can seem to lead companies far afield. Take John Deere's recent foray into renewable energy. The tractor maker sta rted up a business unit to help farmers harvest wind energy. Deere will offer financia l backing and consulting. This may seem an odd fit, but we see it as an interesting play. A company known for providing farmers with the too ls they need is offering to help them survive and find new revenue streams. That's value innovation!

8. Intangib le Value

Most companies are worth more than their hard assets, and in Some cases much more. Brand va lue--or corporate reputation , more generally---can be worth many billions of dollars. Any threat to that value has to be taken seri ously. From BP to GE to Wal-Man, a growing number of companies have launched campaigns to build a green ~lement into their brand. "-

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THE HAT TRICK GREEN-TO-GOLD PLAY AT ALCAN

We've set up these Green-to-Gold Plays as if they were distinct strategies. That's the easiest way to think about them and find business opportuni_ ties. But nothing says a company can't do everything-lower costs and risk and drive revenues-at the same time.

Alcan, the S20 billion Canadian aluminum and packaging company recently acquired by Rio Tinto, pulled off this impressive feat. Quick background: Producing aluminum is dirty work with large-scale environmental consequences. The industry is one of most energy-intensive in the world, and mining and smelting produce large quantities of waste, including what settles at the bottom of the big pots they use in production. This toxic residue-not surprisingly called potlining-is scraped off, which is where the environmental challenge comes in .

Nobody really knows what to do with this toxic slurry since it's not easy to recycle. Mostly it just si ts around, taking up space and creating liabilities. Alcan's Dan Gagnier estimated that just his company's backlog of flotl ining exceeded half a million tons. But that changed. Akan developed an innovative new technology to lurn potlinings into inert, recycled material. The company invE'sted S225 million in a prototype treatment facility. This breakthrough solves Akan's waste problem and may even leave the company treating its competifors' wane-for a price of course.

A5 then-CEO Travis Engen said, "We wouldn't havE' come to this without the framework of sustainability." Alcan's initial goal was to reduce an environmental burden. But executivE'S now anticipate that the new procE'SS will E'nd up lowering waste, reducing risk and liability, and gE'nerating revenues. Akan is building a real Eco-Advantage.

HURDLES

Executing a corporate environmental strategy is never easy. A range of hurdles can trip up even the most sophisticated company, making the

quest for Eco-Advantage elusive. We've identified 13 primary sources of failure in environmental stra tegy (see table ).

First we've identified failures of planning, where the focus o f the en

vironmental initiative isn't well thought out or expectatio ns are out of whack. Second, we see failures o f organization, including competing

demands placed on middle management and silo thinking, w h ich limits coordination and chi lls creativity. No wonder inertia is so often the

by-product of organ izational weakness. T hird, failures of substa nce

44

Eco-Advantage Strategy ]01

are widespread. Sometimes the problem can be traced to nOt leveraging environmental gains. In other cases, poor results come from trying to leverage claims that have toO much hot air. All of these failings are common but can be overcome by bui lding an Eco-Advantage framework and by equipping employees up and down the line with the right tools.

Eco-Advantage Hurdles

Failures of .

Planning • Seeing the trees but not the forest • Misunderstanding the market • Expecting a price premium • Misunderstanding customers • Seeking perfection • Ignoring stakeholders

Organization • Middle-management squeeze • Silo thinking • Eco-isolation of environmental professionals

• Inert ia

Substance • Claims outpacing actions • Surprises and unexpected consequences • Failing to tell the story

TYING THE FRAMEWORK TOGETHER

There's no single right way to assemble a ll the pieces of an £CoAdvantage strategy. Some of the elements in the framework we've provided wiU fit an organization perfectly, while others may not. Some are better than others at any given point in a product or company's evolution. While each has an independent logic, the major elements do work together.

The plays and tools are integrally linked and feed one another. Collectively, these plays and tools reinfo rce each other to lower business risk and increase business val ue. Exploring a company's foo tprint with a Li fe Cycle Assessment, fo r example, will identify oppo rtunities to cut waste and cost, which translates directly into lower business risk. Looking downstream and identifying ways to lower a customer's

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]02 Putting It All Together

environmental burden al so reduces everyone's risk and improves per~

formance along the value chain . And identifying new market Spaces creates added va lue and diminishes the chance of the market shifting out from under you.

GREEN TO GOLD

Eco-Advantage has a ewin logic. On one hand, the stra tegic ga ins we've identified are based on hard-edged analysis. In a world of constra ined natural resources and poll ution pressu res, the business case for environmental stewardship grows stronger every da y. Pressures on companies now come nOt only from screaming eeo-radicals, but also from trad itiona l "white-s hoe" bankers and others asking tough_ minded questions about environmental risk and liability. Those who offer so lutions to society'S environmental problems both mute theif potentia l critics and find expanding markets. As Timberland's CEO, Jeff Swartz, said about one of his company's environmental initia tives, " I can now make the fact-based case to the hardest-nosed engineer in the world .. . . That 's not limousine liberal, not self-indu lgent. It's hard-nosed business. That is the innovation we seek."

In parallel, there's a Strong va lues component to the case for corpora te envi ronmenta l ca re. The WaveRiders we've studied have made money-lots of it-by refining their business strategies to incorporate enviro nmental facto rs. But as much as they are driven by profi ts, they are a lso aware that thei r slCwa rdship helps more than the bottom line. When shore-term gains don't justify green initiatives, they are wiUing to look for long-term value fo r themselves and their workers, for their communities, and for the planet. The gold they've discovered by going green is not only about money.

More and more people in the business world see corporations playing a major role in solving the world's environmental problems. Business, they know, is our most powerful mechanism for crea ting a fu nctioning society and matching needs with gnnd!; and !;~ rvice<; . ('.nmpanies can and should be a force for good, leading the charge on ca ring for the environment and protecting our shared natural assets. Finan~ cia I and environmental success can be achieved together. With rhe right mindset and tools, companies can hand le the hard trade-offs.

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New values-centered executives are creating companies that inspire employees and customers alike. In the end, Eco-Advantage is about a new way for inspired people---executives, managers, and workers-to build companies and industries that are not juSt innovative, powerful, and great . . . but good too.

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152.200 contemporary management

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