JAMES B. AVEY PHD

Identifying Uses for Resources

“Resources” are used to execute strategy and create value

What is a resource?How do we know it is a resource?

We know positive cash flow is a resource, what else? Example, the internet was just as powerful when it

first came out as it is now…but we have many more business models using it now. How did they miss it at first? What are we missing now?

“Resources” are used to execute strategy and create value

Often we chase “resources” and end up wasting our money.

Or else we miss an opportunity to leverage a resource and realize it too late (e.g., Hollywood video and Blockbuster vs. Netflix).

Example- Jason Bourne and a phonebook

Bush at a kindergarten reading, receiving first notification that the WTC

has been attacked

Vacationers at Phuket exploring exposed beach from quake induced

inverse-tide

Café in Phuket

Time Magazine Recovered Photo

Premise for today

It is not easy to see if something is a resource or not.

Even if you sense something is a resource, it is not easy to figure out HOW to utilize it in the most optimal way.

Today’s Task

Come up with a way to evaluate if something is a resource to you (or your group of peers).

After you have your criteria, I’ll give you a “resource” and you decide how to use it.

In your groups, prepare a list of criteria/rubric now. You have 10 minutes.

ENTER THE RESOURCE

When you are done with the evaluation method….

Today’s Task

Your resource: You have 30 seconds of phone time with someone from

the 14th century. You can tell them anything but they can’t answer any

questions. You will not screw up the world or your existence by

what you say. You have no idea what kind of person they are or

where they are other than 14th century and English speaking

Today’s Task

You have 5 minutes to prepare and then a group member will use the resource (phone in this case) for the class to observe.

Start now

Run the exercise

Criteria

What team was the most innovative?

In what way did their criteria differ from others?

Did anyone change their plan after the first group? How does this sensemaking exist at the strategic level in organizations?

Conclusion

Resources will not be recognized without scanning the internal and external environment.

Even with scanning, it is not easy to see if something is a resource nor is it easy to figure out to use it after it has been recognized.

There has to be a systematic and self correcting way to evaluate potential resources which also accounts for the sensemaking process.

10 minute break

Tower Exercise

Tower Exercise

In the previous exercise there was a known resource but and unknown goal. Thus, how to leverage the resource was very open.

In this exercise there is a known goal and several known resources but it is unclear with combination of resources in content and in process is optimal.

Tower Exercise

In organizations, you often have a clear goal (e.g., maximize shareholder value) and a set of resources you are familiar with. The challenge is what resources to use at what time in what order that optimally (not functionally) accomplishes your goal.

Today, this is what you will do.

Tower Exercise

What you see before you are “resources” for your firm

Your mission, to make the tallest tower possible using only these resources.

You don’t have to use them all but you can only use these.

Tower Exercise

Just as in business, you will have time (10 minutes) to strategize how you will accomplish your mission.

However, you will NOT be permitted to touch your resources for the 10 minute strategizing session.

After 10 minutes you may start your tower. You will have an additional 10 minutes of “building” time.

The group with the tallest free standing not hanging) tower wins.

The winning group will have 50 extra credit points

(profit) to administer as they see fit (profit sharing) to individuals, groups or

the entire class.

Warning

Any group that touches their resources before 10 minutes will be disqualified.

Any group using other resources will be disqualified.

The professor reserves the right to change the rules at any point.

No instructions will be given beyond this point until the exercise is done.

Begin Now

What happened?

When you were strategizing, what types of things did you plan?

Did you plan content? What assumptions did you make about what resources would work?

Did you plan process?In the planning stage, did anyone emerge as

a leader? How? Why did you follow? Did they seem like they had some type of expertise?

Was there a “strategy” to win?What was it? Did it help?

What happened?

How did you know when to start building?Did a different leader emerge in the building

phase? Why? How?Did you look at what others were doing? Did

it help?Did you try to prevent people from looking at

what you were doing or create a “Trojan horse”?

What happened?

Did you try to sabotage another group?Did you try to build a partnership? Who kept track of the clock?Who felt like they didn’t do much? Why?

Winning Group

What will you do with your 50 points?

Why?

Conclusions

Resources (content) are not easily identified.The optimal process for leveraging those

resources is not easily identified.Leadership is individual, partnered and

group.Leaders can steer you wrong.As conditions change and knowledge

increases, so strategy must change. You will often not execute what you originally

planned to execute.

Tower Exercise Take 2

Remember….

The medieval phone?

The tower?

Lessons learned?

Tower Exercise

Last time we had a clear goal, to make the tallest tower possible.

In organizations however, you often have a clear goal (e.g., maximize shareholder value) and a set of resources you are familiar with BUT the nature of the game changes in the middle of the process. The challenge is what resources to use at what time in the environment in what order that optimally (not functionally) accomplishes your goal.

Today, this is what you will do.

Today…

…we learn how the market is fickle.

Tower Exercise

What you see before you are “resources” for your firm

Your mission, to make the tallest, strongest or most wind resistant tower possible using only these resources.

You are not sure what the market (me) wants, tallest, strongest (holding weight) or most wind resistant.

You don’t have to use them all but you can only use these.

Tower Exercise

Just as in business, you will have time (10 minutes) to strategize how you will accomplish your mission.

However, you will NOT be permitted to touch your resources for the 10 minute strategizing session.

After 10 minutes you may start your tower. You will have an additional 10 minutes of “building” time.

The group with the free standing tower that meets the market demands wins.

The winning group will have 25 extra credit points

(profit) to administer as they see fit (profit sharing) to individuals, groups or

the entire class.

Warning

Any group that touches their resources before 10 minutes will be disqualified.

Any group using other resources will be disqualified.

The professor reserves the right to change the rules at any point.

No instructions will be given beyond this point until the exercise is done.

Begin Now

What happened?

When you were strategizing, what types of things did you plan?

Did you plan content? What assumptions did you make about what resources would work?

Did you plan process?In the planning stage, did anyone emerge as

a leader? How? Why did you follow? Did they seem like they had some type of expertise?

Was there a “strategy” to win?What was it? Did it help?

What happened?

How did you know when to start building?Did a different leader emerge in the building

phase? Why? How?Did you look at what others were doing? Did

it help?Did you try to prevent people from looking at

what you were doing or create a “Trojan horse”?

What happened?

Did you try to sabotage another group?Did you try to build a partnership? Who kept track of the clock?Who felt like they didn’t do much? Why?

Winning Group

What will you do with your 50 points?

Why?

Conclusions

Resources (content) are not easily identified.The optimal process for leveraging those

resources is not easily identified.What the market wants is not easily identified.

Often, no one tells you.Leadership is individual, partnered and group.Leaders can steer you wrong.As conditions change and knowledge increases, so

strategy must change. You will often not execute what you originally

planned to execute.