Section 003 Schedule Section 006 Schedule Wednesday, May 26 - - PDF document

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BA 301, Nobles, Fall 2009

Section 003 Schedule

• Wednesday, May 26

– University Funding Crisis/OUS budget (7,3) – Academic Dishonesty (9, 10) – Dissatisfied students/morale/complaints ( 6,2)

• Wednesday, June 2

– PSU Reputation/Image (8,5) – Inconsistent Instructor Quality (12,11) – Campus Safety and Security (1,4)

BA 301, Nobles, Fall 2009

Section 006 Schedule

• Wednesday, May 26

– PSU Reputation/Image ( 9, 1) – Inconsistent Instructor Quality ( 11, 2) – Campus Safety and Security ( 5, 12)

• Wednesday, June 2

– University Funding Crisis/OUS budget ( 7, 8) – Academic Dishonesty ( 3, 6) – Dissatisfied students/morale/complaints ( 4, 10)

BA 301, Nobles, Fall 2009

Section 002 Schedule

• Tuesday, June 1

– Dissatisfied students/morale/complaints ( 2, 5) – PSU Reputation/Image ( 3, 11) – University Funding Crisis/OUS budget ( 12, 10) – Campus Safety and Security ( 1, 6) – Academic Dishonesty (7, 9) – Inconsistent Instructor Quality ( 4, 8)

BA 301, Nobles, Fall 2009

• 1. Position
• 6. Achieve
• 3. Uncover
• 5. Build
• 2. Sense
• 4. Solve

Build the Business Case for Your Solution

PSU Problem Solving Process

BA 301, Nobles, Fall 2009

Build A Business Case

• What is a business case?

– A formal presentation of the problem solution/s that have been developed – Reviewed by some sort of decision making authority – Solid logic – Supporting evidence – A good test to see whether you need more research

BA 301, Nobles, Fall 2009

Who Does It?

• The problem solving team or a representative

subset

– Diversity is good – A range of stakeholders

• Activities

– In-depth outcome analysis – Short and long term consequences – Review adherence to Mission/Vision/Values

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BA 301, Nobles, Fall 2009

First – Ethical Screening

• Is the solution ethical? What does ethical

mean? How would you define ethics?

– Ethics – a system of values that people use to determine whether actions are:

• right or wrong
• fair or unfair
• moral or immoral

– Business ethics - the application of ethical standards to business behavior.

BA 301, Nobles, Fall 2009

Values Versus Ethics

• Test it against business values. What is a

value?

– A principle, standard or quality considered worthwhile or desirable. – Values contribute to our system of beliefs, ideas and opinions. – A value is a core from which we operate. – Business values are beliefs, business principles and ways of doing things that govern company

• perations and the behavior of organization

members.

BA 301, Nobles, Fall 2009

Corporate Values

• Are the values real or published?

– Enron valued:

• Communications
• Respect
• Integrity
• Excellence

– What did they really value (at least some of the senior management)?

• Money and profit – at the expense of customers,

shareholders and employees

BA 301, Nobles, Fall 2009

Corporations As Citizens

• Analyze your solution based on a broader set
• f societal ethical principles
• Consider all of the stakeholders

– Customers – Suppliers – Competitors – Communities and societies

BA 301, Nobles, Fall 2009

Encouraging Ethical Behavior

• How can you encourage ethical behavior?

– Define and communicate ethical standards – Educate and train – Case discussions and exercises

• Is unethical behavior always conscious and

explicit?

– Bounded ethicality – people sometimes act in ways that are inconsistent with their ethical standards – Identify and understand psychological tendencies in order to better guarantee ethical behavior

BA 301, Nobles, Fall 2009

Making Ethical Decisions

• Are ethical and legal the same thing?

– Legality is the lowest common denominator

• Four tests of your decision:

– Is my solution the best thing for the most people? – What if everyone did what I want to do? What kind of a world would it be? – Am I treating others the way I would want to be treated? – What if my decision were advertised on a billboard?

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BA 301, Nobles, Fall 2009

• 1. Position
• 6. Achieve
• 3. Uncover
• 5. Build
• 2. Sense
• 4. Solve

Build the Business Case for Your Solution

PSU Problem Solving Process

BA 301, Nobles, Fall 2009

Presenting The Case

• What are some of the questions you might get

asked when you are making a recommendation?

– What will it cost? – What are benefits? – How long will it take? – Who’s going to do it? – What’s likely to go wrong? – Who do we blame when it does?

BA 301, Nobles, Fall 2009

Cost/Benefit Analysis

• It’s a tool that will help you decide whether it’s worth

implementing your solution.

– You may have already done it while comparing different alternatives, or… – You will include it in your “case” as support for your recommendation

• Key questions that it will answer

– Do the benefits outweigh the costs? – Is it worth the time and money to implement

• Simply put – add up the value of the benefits of a

course of action, and subtract the costs.

BA 301, Nobles, Fall 2009

Cost/Benefit Analysis

• CBA is most often applied to complex, large scale

projects – but can be applied carefully to others.

• Evaluation and analysis can be as much art as science.

– Estimates often rely on past projects, experience of the project members, and rules of thumb. Team members may also be biased.

• It can be difficult to compare one-time and long term

(periodic) costs and benefits.

– Consider payback time. – Determine a timeframe for the analysis.

• You should consider both tangible and intangible costs

and benefits.

BA 301, Nobles, Fall 2009

Types Of Costs & Benefits

• Tangible

– Concrete and easily quantifiable – Ongoing versus one-time (present value) – For example – the cost of my new tractor was a one-time financial cost.

• Intangible

– Difficult to measure, and almost impossible to measure precisely:

• Employee satisfaction, customer satisfaction.

– Relative values and crude measurements are often the best you can get – but often good enough for business decisions. – For example – Sheryl won’t worry about me as much on the new tractor with a roll bar and seat belts!

BA 301, Nobles, Fall 2009

Tangible Versus Intangible

• Common Claim

– If you can’t measure it, it doesn’t exist.

• Reality

– Costs are typically tangible, hard and financial. – Benefits are hard and tangible, but also often soft and intangible. – Be careful – often intangible will outweigh the tangible – especially in strategic decisions.

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BA 301, Nobles, Fall 2009

Here’s An Example

• The scenario:

– Small, neighborhood copy shop owner – The question?

• Should he remain open until 11 PM, or should he close

an hour earlier

– What data does he need?

• Costs of operating during that last hour
• How much money he makes in that last hour

BA 301, Nobles, Fall 2009

Tangible Costs

• Types of costs

– Electricity for lights and equipment – The cost of heat – The assistant manager’s salary – If he closes at 10, he saves all this money

• Cost of that last hour - $23.00

BA 301, Nobles, Fall 2009

Tangible Benefits

• What is his profit in the last hour (based on the

cost of making the copy – not counting electricity, etc.).

– 460 copies in that last hour times 5.5 cents profit per copy – He makes $25.30 – Is it worth it?

BA 301, Nobles, Fall 2009

What are some intangibles?

• Employee satisfaction – Assistant Manager

can be with family at night.

• Employee safety – higher crime at night.
• Customer satisfaction – occasionally a key

customer needs copies at night.

BA 301, Nobles, Fall 2009

Another Example

• Scenario:

– A sales director is deciding whether to implement a new computer-based contact management system. – He doesn’t have many computers and his salespeople are not that computer literate. – He knows that he can increase contact numbers and give better customer service with the system. Efficiency will be improved. – What should he do?

BA 301, Nobles, Fall 2009

Tangible Costs

• New computers:

– 10 with software @ $1,225 each – 1 server @ $1,750 – 3 printers @ $600 each – Cabling and installation @ $2,300 – Sales Support Software @ $7,500

• Training Costs:

– Computer introduction – 8 people @ $200 each – Keyboard skills – 8 people @ $200 each – Sales Support System – 12 people @ $350 each

• Other Costs:

– Lost time: 40 man days @ $100 per day – Lost sales through disruption: estimated @ $10,000 – Lost sales through first month inefficiency: estimated @ $10,000

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BA 301, Nobles, Fall 2009

Tangible Benefits

• Tripling of mail shot capacity: estimated @ $20,000 per

year.

• Ability to sustain telesales campaigns: estimated @ $10,000

per year.

• Improved efficiency and reliability of follow-up: estimated

at $25,000 per year.

• Improved customer service and retention: estimated @

$15,000 per year.

• Improved accuracy of customer information: estimated @

$5,000 per year.

• More ability to manage the sales operation: estimated @

$15,000 per year.

BA 301, Nobles, Fall 2009

Results

• Total cost: $57,000
• Total benefits: $90,000 per year
• Payback time: $57,000/$90,000 = 8 months
• Even though the estimate of benefits can be

subjective – given the short payback time, it would be a good decision

BA 301, Nobles, Fall 2009

What Are The Intangibles?

• Personnel discomfort with a new system.
• General organizational disarray with new

procedures and processes.

• Happier, more organized salespeople.
• Employee attitudes about management

investment in personnel.

• Others?

BA 301, Nobles, Fall 2009

Cost/Benefit Summary

• Cost/Benefit analysis is a powerful, widely

used and relatively easy tool for deciding to implement a decision.

• First, work out how much the decision will

cost (don’t forget opportunity costs).

• Where costs or benefits will be received over

time – work out the time it will take for the benefits to outweigh the costs.

BA 301, Nobles, Fall 2009

Feasibility Analysis

• The solution may have merit, but can you do it – is it feasible?
• Dimensions of analysis:

– Economic, organizational, technological, and legal.

• For example – economically, do you have the budget and cash

flow to handle the solution?

• Operationally, do you have the people or the expertise to

implement the solution?

• Technologically, maybe the technology required won’t be

ready in time.

• Legally, make sure the solution doesn’t oppose existing

contracts or legal agreements.

BA 301, Nobles, Fall 2009

Activity 5.2

• Read the scenario – student considering a job

in Phoenix. Go or stay – do a Cost/Benefit Analysis.

• Determine a time frame – 2 years, 3 years,

more?

• Brainstorm all tangible and intangible costs

and benefits – determine which is the best

• ption.
• Follow the instructions in the Activity

Handout.

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BA 301, Nobles, Fall 2009

Activity 5.2

Portland Phoenix Tangible Costs Rent $$$ $$$ Other??? $$$ $$$ Tangible Benefits Salary $$$ $$$ Other??? $$$ $$$ Net Tangible ?? ?? Intangible Costs Delayed Degree xx Intangible Benefits Family Pride xx

BA 301, Nobles, Fall 2009

• 1. Position
• 6. Achieve
• 3. Uncover
• 5. Build
• 2. Sense
• 4. Solve

Build the Business Case for Your Solution

PSU Problem Solving Process

BA 301, Nobles, Fall 2009

Presenting The Business Case

• KNOW your audience

– Who they are – What they care about – Backgrounds and experience – Current conflicting or supporting issues – Relationships and structures

BA 301, Nobles, Fall 2009

Presenting The Business Case

• KNOW how people are persuaded

– Aristotle claimed that there are three reasons for persuasion:

• Personal credibility - ethos
• Emotional appeals - pathos
• Logical arguments - logos

BA 301, Nobles, Fall 2009

Presenting The Business Case

• KNOW your argument

– A proposition is just an assertion until evidence is presented to support it. – Forms of evidence:

• Facts – empirically verifiable (statistics are one form)
• Examples – descriptions of individual events
• Testimony – authoritative opinion that interprets or

judges

BA 301, Nobles, Fall 2009

Proposal Outline

• Background/Situation Analysis

– Provide context for the issue or problem – Use historical perspective, where necessary

• State the Problem/Issue/Question/Opportunity

– Clear and concise – Why it’s worthy of attention – Supporting information, where necessary

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BA 301, Nobles, Fall 2009

Proposal Outline

• The proposed solution/plan

– Be precise about how it solves the problem – Support claims with logic and evidence, but don’t

• verwhelm with data

– Describe rejected alternatives where relevant

• Conclusion

– Sum up the problem and the solution – Discuss outcome measurement – how will you know you’ve been successful

BA 301, Nobles, Fall 2009

Oral Presentation Tips

• Consider your audience type – are they…

– Friendly? – they like you and your topic – Neutral? – they are calm and rational; their minds are made up but they think they are objective – Uninterested? – they have short attention spans; they may be there against their will – Hostile? – they want to take charge or to ridicule the speaker; they may be defensive, emotional

BA 301, Nobles, Fall 2009

Oral Presentation Tips

• Capturing attention in the introduction

– A promise – Drama – Eye contact – Movement – Questions – Demonstrations – Samples/gimmicks – Visuals – Self-interest

BA 301, Nobles, Fall 2009

Oral Presentation Tips

• Building audience rapport

– Effective imagery – analogies, metaphors, personal anecdotes – Verbal signposts – previewing, summarizing, switching directions – Nonverbal messages – look professional, animation, punctuate your words, get out from the podium, vary your expressions

BA 301, Nobles, Fall 2009

PowerPoint

• What’s so good about it?

– Economical, flexible and easy to prepare – Good for last minute changes – Multimedia – images, animation, video

• But…

– Some say that PowerPoint is turning the nation’s businesspeople into a “mindless gaggle of bullet- pointed morons.”

BA 301, Nobles, Fall 2009

Gettysburg Cemetery Dedication

Abraham Lincoln

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BA 301, Nobles, Fall 2009

Agenda

• Met on battlefield (great)
• Dedicate portion of field - fitting!
• Unfinished work (great tasks)

BA 301, Nobles, Fall 2009

Review of Key Objectives & Critical Success Factors

• What makes nation unique

– Conceived in Liberty – Men are equal

• Shared vision

– New birth of freedom – Gov’t of/for/by the people

BA 301, Nobles, Fall 2009

Summary

• New nation
• Civil war
• Dedicate field
• Dedicated to unfinished work
• New birth of freedom
• Government not perish

BA 301, Nobles, Fall 2009

PPT is Still A Great Tool

• Slides should summarize your main points
• You should add value to what’s on the screen
• Look at the audience, not the screen
• Leave the lights as bright as you can
• Use a remote control
• Use other formats – whiteboard, handouts
• Bring backups!

BA 301, Nobles, Fall 2009

Present Like Steve Jobs

• 1. Set the theme.
• 2. Demonstrate enthusiasm.
• 3. Provide an outline.
• 4. Make numbers meaningful.
• 5. Try for an unforgettable moment.

Courtesy: Carmine Gallo, Business Week

BA 301, Nobles, Fall 2009

Present Like Steve Jobs

• 6. Create visual slides.
• 7. Give ‘em a show.
• 8. Don’t sweat the small problems.
• 9. Sell the benefit.

10.Rehearse, rehearse, rehearse.

Courtesy: Carmine Gallo, Business Week

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BA 301, Nobles, Fall 2009

• 1. Position
• 6. Achieve
• 3. Uncover
• 5. Build
• 2. Sense
• 4. Solve

Build the Business Case for Your Solution

PSU Problem Solving Process