EIS—A guide for executives

Although the use of executive information systems (EIS) is increasing, many senior executives have such mixed feelings about them that there is an ‘EIS paradox’. Information managers and software suppliers believe this is because senior executives are intimidated by information technology, but this does not hold up to scrunity. The EIS paradox occurs because of failure to explain coherently how EIS fit with other aspects of the organizational database and what EIS can and cannot do for a senior executive and his or her organization. This article is designed to close the ‘information gap’ about EIS specifically for senior executives. The change in terminology from ‘data processing’ to ‘information technology’ is symptomatic of a change in the way in which computers are used. Rather than being the mere province of the data professional, information technology as exemplified by EIS can be applied to tasks where judgement and selectivity are required. The crucial point about EIS is, however, that computing can complement and increase managerial qualities of imagination and intelligence but not replace them.     

Corporate planning—A systems view

This paper examines the, often disregarded, fact that the very inprecision of language often obscures basic underlying conceptual differences between corporate planning as expressed in theory and in practice. Few of the claims that confusions result both from a lack of explicit definitions and from the lack of differentiation between ‘theories of planning’ and ‘theories in planning’.

The purpose of this paper is to propose such a theory of corporate planning through discussion of the following topics: (1) Problems in concepts of corporate planning; (2) The concept of an approach of corporate planning; (3) Propositions that form the basis of a theory or model of planning, relying heavily on a systems framework; and (4) a proposed corporate planning system.     

Corporate environmental policy in Shell

In the last decade there has been a radical change in public attitudes to the environment—a change initiated by a young ‘green’ movement, which, years ago, was trying to make its real concern heard in both government and industry. Governments were seen to have little concern for the environment, and industry was typecast in the role of the dirty polluter. Most significantly, the three parties were seen as sitting in separate camps. Over the years, however, we in industry were forced to think our actions through towards their logical environmental conclusion. We were forced to develop an environmental appreciation which we did not have some time ago. In turn, the environmentalists and governments started to realize that industry is an essential player in society, and that balances can be struck which benefit both society and the environment. We have much to be grateful to these green pioneers for, even if we sometimes find that difficult to admit. This process resulted in industry, government and the ‘green’ movement learning to talk to each other. Dialogue, is most important if we are to ensure the continuation of a world fir for our children and grandchildren to grow up in. Dialogue ensures that the tide of change continues. In that process business should become part of the environmental solution, the provider of the resources needed to improve our world for the better rather than being portrayed as the problem.     

Corporate strategy and entrepreneurial vision

The author here describes her conception of strategic vision from the basis of which she has developed a successful business using information technology and a scattered work- force working from their own homes or from a neighbourhood work centre. She defines her term ‘corporate planning by vision’ and outlines its strengths and weaknesses.     

Developing realistic scenarios for the environment: Lessons from Brent Spar

Why did Shell—renowned for its scenario planning—find itself so badly adrift with the Brent Spar? And why, later in 1995, was it wrong-footed again in Nigeria? The answers reflect deep currents already clear to the company's scenario writers in the 1980s, but retaining their ability to surprise. The authors conclude that Shell's scenarios have been ‘individualist’, ‘hierarchist’ or some combination of the two; none have adopted an ‘egalitarian perspective’. They also suggest that the ‘Values Shift’ scenario—developed for European Partners for the Environment—may hold clues to future shifts in business strategy.     

R & D and corporate planning in government

David Peretz is in charge of the Economics Section of the Inter-Bank Research Organization, London. Before that he served as an administrative civil servant in the Ministry of Technology, being for some of that time attached to the Programmes Analysis Unit (PAU) at Harwell, and concerned with studies of the organization of government industrial R & D establishments.

This article is based on a paper submitted—in their personal capacities—by the author and James Robertson (Director of IBRO) to the Government in February 1972. This paper was in turn inspired by the Government's publication of Lord Rothschild's report on ‘The Organization and Management of Government R & D’.

Like other large organizations, governments are having to come to grips with the interaction between long range planning and R & D activities. Changes are called for both in the methods of choosing priorities for R & D projects and in the organization of the Government's own research resources. The implications of ‘corporate’ planning for Government science have yet to be fully recognized.     

New business development in mature firms

New business development (NBD) is one of the main strategic options for the ‘mature’ company. The authors discuss the reasons why NBD should be considered and suggest a framework for developing new businesses. The results of a two year investigation of a sample of 14 UK companies' NBD initiatives are presented. Half of the sample have either abandoned or are reducing their new business activities. The reasons are manifold and relate to a failure to define specifically the role of the NBD initiatives; a lack of appreciation of the risks, long time spans for development and the high financial commitment associated with NBD; a weakening of the mainstream business (this in itself suggesting that companies often leave NBD ‘too late’); and a naive approach toward marketing. Some lessons for mature companies' future involvement in NBD are drawn.     

Bridging the awful gap between strategy and action

This article describes the lessons learned from a study carried out within British Telecommunications as part of the author's doctoral research programme. It was found that strategy was formulated and implemented, with direct action taken and resources commited, by Divisional managers at all three organizational levels in BT so that implementation did not always follow the lines intended by the HQ strategic planners. Implementation was found to be an interactive rather than a rational/sequential process. Marked variations in practice were observed and explanations for these are offered. The relative success of the strategies differed widely, both overall and within the divisional field units. The manner of implementation and factors managers perceived to help and hinder it were studied. Success or failure was felt to hinge on getting a few basics right: resources, organizational ‘fit’, historical performance and the expectations it generated (track record), information and support, market acceptance, technical competence, consistent goals and top management support.     

The increasing power of store brands: Building loyalty and market share

An important evolution in the retailing industry is the growing success of store brands. Still, their level of penetration varies widely across countries and industries. We provide an operational measure to quantify the power of store brands along two dimensions: the intrinsic loyalty of their customer base, and their conquesting power to attract potential switchers. Based on their position along these two dimensions, we classify store and national brands as ‘Giants’, ‘Misers’, ‘Fighters’ or ‘Artisans’. We use the proposed operationalization to evaluate the absolute and relative strength of Albert Heijn, the leading Dutch store brand, in 19 product categories.     

Building an innovative organization

Morton L. Mandel, CEO of Cleveland-based Premier Industrial Corporation, with brothers Jack and Joe, started selling automotive fasteners out of garage 50 years ago. Today, Premier's sales are running at a record $650m clip. The market value of the Mandel brothers' publicly-traded Premier shares earns all three a place on Forbes' list of the 400 wealthiest Americans. The family still holds about 60 per cent of the stock. Mort Mandel believes that gives the company independence and the ability to concentrate on nuts and bolts rather than politics. Mandel's nuts and bolts approach to managing has created stunning success—after-tax margins twice the average of Premier's industry, return on assets of 24 per cent, return on investment above 30 per cent, earnings per share compounded in excess of 17 per cent for the past 5 years, shareholders' equity that has grown close to 10 per cent annually for 20 years, and debt of less than 3 per cent of net worth. Mandel says it's simple: Treat customers as though they have the ‘right’ to superior service. Behave ethically, professionally and personally. Do good. Invest in people. Execute, execute, execute. What he calls Management 101. We suspected it wasn't quite that simple, and we wanted to know how he created a company that repeatedly outperforms its industry and many others, how he sustains a culture that generates 5000 written profit improvement ideas a year from Premier's 5400 employees. So we asked him some questions about his views on management and leadership that produced refreshing insights into the power, purity and timeless applicability of ‘management basics’. This interview was conducted at Premier's unpretentious executive offices, located in the Midtown Corridor of Cleveland, Ohio, a privately-sponsored urban renewal project inspired by Mort Mandel, who practices his preachings about ‘doing good’.     

Managing organizational change—A strategic approach

Developing the competence, commitment and capacity for change of people is a vital element in the creation and maintenance of competitive advantage and should be an integral part of the strategic equations and business plans of any firm. This theme, examples of ‘good’ practice, and strategies to implement a strategic approach to people have been explained and developed in a brief case ‘action pack’ produce by the authors of this article for the MSC and NEDO. Key factors identified in the development of the three ‘C’s are effective leadership, involvement and good employee communications, stress on performance management, appropriate reward systems and training and development.     

Defining and Dimensionalising Diversity:: Evidence from Corporate Websites across Europe

The corporate ‘diversity statement’ is a new tool increasingly used by large companies to promote diversity management policies on their websites. Through an examination of these on-line texts, we identify how companies construct the meaning of ‘diversity’ through its dimensions. Few companies actually define diversity. However, dimensions of diversity cover a wide-ranging set of individual differences, not just gender and race but other visible and less visible differences that might lead to discrimination in the workplace. By comparing statements from 241 top companies in eight countries (Finland, France, Germany, Netherlands, Norway, Sweden, Switzerland and the UK), we reveal how the definition of ‘diversity’ and its dimensions as used on websites varies across Europe.     

Long term planning for coal

The Interim Report of the Coal Industry Examination was published in June 1964, representing the result of Tripartite discussions between the Government, the National Coal Board and the unions. One of the principal conclusions of this report was that the government endorsed the Board's long-term ‘Plan for Coal’ as a broad strategy for the industry. It is perhaps appropriate, therefore, to review at the present time the kind of considerations which needed to be taken into account in drawing up a long-term ‘Plan for Coal’.     

Some hints on financing new technologies

To survive we must invest in new technology. Investing in the ‘new’ contains an element of risk, and costs may be higher than predicted; but, this paper argues, the benefits are also much higher than expected. There is a growing number of sources of finance to assist in the financing of new technology. These are reviewed, together with advice on sources of more information.     

Brief case: Shareholder dominance—Time to ask if the emperor has any clothes

The Corporate governance and short-termism debates are both linked to the role of shareholders in business. George Binney has been working on these issues and believes strongly that ‘creation of wealth for shareholders’ is an inappropriate purpose for many companies. He recognizes that companies must provide shareholders with a competitive return for the risks they take in the same way that a company must provide customers with competitive products. But he rejects the current vogue for making shareholder satisfaction the guiding purpose of business.     

Do your planning processes meet the reality test?

Sophisticated planning systems and touted techniques have never been a guarantee of success to a business. We believe this is because there has been too much focus on the content of strategy rather than the underlying process, and because the process is often poorly matched to the nature of the problem. For strategic situations the issues are usually complex and unpredictable with many unknowns and a large human factor, typical of the problem category defined as ‘wicked’. This article identifies a set of seven fundamental process principles for dealing with such problems. The principles are a starting point in the effort to codify the ‘art’ of successful strategic planning. Several examples of the use of the principles in business contexts are provided.     

Government economic planning in the United Kingdom

The present system has its origins in the 1961. Plowden Report, which spawned both the Public Expenditure Survey and the Medium Term Assessment. The ramifications and requirements of the former provide the hard backbone of U.K. planning; formal indicative planning has not been attempted since the National Plan of 1965. Instead, the Medium Term Assessment provides a feasible range of scenarios for the next 5 years, circulated only within the Treasury but used as background for the main public expenditure and other economic policy decisions, for advice given to nationalized industries, and for information given to NEDO. However, the emphasis in Government relations with the private sector has shifted firmly away from indicative planning to the ‘bottom-up’ approach of the Industrial Strategy. This general framework appears likely to endure.     

Manpower planning at national and company level

Discussions of manpower planning take place in the context either of national plans or of company plans. From time to time the view has been expressed that the coverage and the time scale of these two types of planning are so different that there is nothing in common between them. This paper considers whether, in practice, ‘manpower’ is really so different from ‘personnel’. After all, the individuals regarding whom both plans are made are the same people; in both cases the planners are concerned with the posts they are to fill, with their salaries and with their mobility.     

Planning for technological innovation part I. Investment in technology

In the modern industrial age, investment can no longer be seen purely in terms of expenditure on hardware or ‘tangible’ investment; the knowledge content or ‘intangible’ investment is equally important. Of course, intangible investment was always a feature of the manufacturing business but in earlier times the additional effort was mostly supplied by the entrepreneur. The complexity of modern technology, the multidisciplinary skills required and the sheer speed of change have altered this; except possibly in the new venture companies. It follows that a full understanding of the effects of technological change on industry can only be obtained if all aspects of investment are identified and measured. It is then possible to determine how much of its resources any particular industry is allocating to its promotion of products for the future, and whether this has changed significantly over time.

This paper therefore is concerned with the totality of investment, its size, content and economic importance.     

Engineering or metal-bashing?—Changing the image

This paper is concerned with the image of two large engineering firms, both based in the UK, but with global ambitions rapidly being realized. In both cases, the firm's image had conveyed the impression of a Midland's ‘metal-basher’, a traditional engineering firm manufacturing a wide range of uncomplicated products. In neither case was this image an accurate reflection of the firm's businesses, and in neither case was the image deliberately cultivated. However, in one case senior management saw the metal-bashing image to be so incompatible with global aspirations that it was deliberately expunged. In the other, the same image was deemed less damaging to international aspirations and no specific efforts were made to change it. The paper examines some of the strategic implications of making such a change, and considers some of the lessons that might be derived for organizational change in general. Senior managers in both companies were interviewed over a two-year period and their views are recorded in quotation throughout the paper.