Section 003 Schedule Section 006 Schedule • Wednesday, May 26 • Wednesday, May 26 – University Funding Crisis/OUS budget (7,3) – PSU Reputation/Image ( 9, 1) – Academic Dishonesty (9, 10) – Inconsistent Instructor Quality ( 11, 2) – Dissatisfied students/morale/complaints ( 6,2) – Campus Safety and Security ( 5, 12) • Wednesday, June 2 • Wednesday, June 2 – PSU Reputation/Image (8,5) – University Funding Crisis/OUS budget ( 7, 8) – Inconsistent Instructor Quality (12,11) – Academic Dishonesty ( 3, 6) – Campus Safety and Security (1,4) – Dissatisfied students/morale/complaints ( 4, 10) BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Section 002 Schedule PSU Problem Solving Process 1. Position • Tuesday, June 1 – Dissatisfied students/morale/complaints ( 2, 5) 2. Sense – PSU Reputation/Image ( 3, 11) – University Funding Crisis/OUS budget ( 12, 10) 3. Uncover – Campus Safety and Security ( 1, 6) 4. Solve – Academic Dishonesty (7, 9) – Inconsistent Instructor Quality ( 4, 8) 5. Build Build the Business Case for Your Solution 6. Achieve BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Build A Business Case Who Does It? • What is a business case? • The problem solving team or a representative subset – A formal presentation of the problem solution/s that have been developed – Diversity is good – Reviewed by some sort of decision making – A range of stakeholders authority • Activities – Solid logic – In-depth outcome analysis – Supporting evidence – Short and long term consequences – A good test to see whether you need more research – Review adherence to Mission/Vision/Values BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 1
First – Ethical Screening Values Versus Ethics • Test it against business values. What is a • Is the solution ethical? What does ethical value? mean? How would you define ethics? – A principle, standard or quality considered – Ethics – a system of values that people use to worthwhile or desirable. determine whether actions are: – Values contribute to our system of beliefs, ideas • right or wrong and opinions. • fair or unfair – A value is a core from which we operate. • moral or immoral – Business values are beliefs, business principles and – Business ethics - the application of ethical ways of doing things that govern company standards to business behavior. operations and the behavior of organization members. BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Corporate Values Corporations As Citizens • Are the values real or published? • Analyze your solution based on a broader set of societal ethical principles – Enron valued: • Communications • Consider all of the stakeholders • Respect – Customers • Integrity – Suppliers • Excellence – Competitors – What did they really value (at least some of the – Communities and societies senior management)? • Money and profit – at the expense of customers, shareholders and employees BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Encouraging Ethical Behavior Making Ethical Decisions • How can you encourage ethical behavior? • Are ethical and legal the same thing? – Define and communicate ethical standards – Legality is the lowest common denominator – Educate and train • Four tests of your decision: – Case discussions and exercises – Is my solution the best thing for the most people? • Is unethical behavior always conscious and – What if everyone did what I want to do? What explicit? kind of a world would it be? – Am I treating others the way I would want to be – Bounded ethicality – people sometimes act in ways treated? that are inconsistent with their ethical standards – What if my decision were advertised on a – Identify and understand psychological tendencies billboard? in order to better guarantee ethical behavior BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 2
Presenting The Case PSU Problem Solving Process 1. Position • What are some of the questions you might get asked when you are making a recommendation? 2. Sense – What will it cost? – What are benefits? 3. Uncover – How long will it take? 4. Solve – Who’s going to do it? – What’s likely to go wrong? 5. Build Build the Business Case for – Who do we blame when it does? Your Solution 6. Achieve BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Cost/Benefit Analysis Cost/Benefit Analysis • It’s a tool that will help you decide whether it’s worth • CBA is most often applied to complex, large scale implementing your solution. projects – but can be applied carefully to others. • Evaluation and analysis can be as much art as science. – You may have already done it while comparing different alternatives, or… – Estimates often rely on past projects, experience of the project members, and rules of thumb. Team members may – You will include it in your “case” as support for your also be biased. recommendation • It can be difficult to compare one-time and long term • Key questions that it will answer (periodic) costs and benefits. – Do the benefits outweigh the costs? – Consider payback time. – Is it worth the time and money to implement – Determine a timeframe for the analysis. • Simply put – add up the value of the benefits of a • You should consider both tangible and intangible costs course of action, and subtract the costs. and benefits. BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Types Of Costs & Benefits Tangible Versus Intangible • Tangible • Common Claim – Concrete and easily quantifiable – If you can’t measure it, it doesn’t exist. – Ongoing versus one-time (present value) – For example – the cost of my new tractor was a one-time • Reality financial cost. – Costs are typically tangible, hard and financial. • Intangible – Difficult to measure, and almost impossible to measure – Benefits are hard and tangible, but also often soft precisely: and intangible. • Employee satisfaction, customer satisfaction. – Relative values and crude measurements are often the best – Be careful – often intangible will outweigh the you can get – but often good enough for business decisions. tangible – especially in strategic 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 BA 301, Nobles, Fall 2009 3
Here’s An Example Tangible Costs • The scenario: • Types of costs – Small, neighborhood copy shop owner – Electricity for lights and equipment – The question? – The cost of heat • Should he remain open until 11 PM, or should he close – The assistant manager’s salary an hour earlier – If he closes at 10, he saves all this money – What data does he need? • Cost of that last hour - $23.00 • Costs of operating during that last hour • How much money he makes in that last hour BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Tangible Benefits What are some intangibles? • What is his profit in the last hour (based on the • Employee satisfaction – Assistant Manager cost of making the copy – not counting can be with family at night. electricity, etc.). • Employee safety – higher crime at night. – 460 copies in that last hour times 5.5 cents profit • Customer satisfaction – occasionally a key per copy customer needs copies at night. – He makes $25.30 – Is it worth it? BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 Another Example Tangible Costs • New computers: • Scenario: – 10 with software @ $1,225 each – A sales director is deciding whether to implement – 1 server @ $1,750 – 3 printers @ $600 each a new computer-based contact management – Cabling and installation @ $2,300 system. – Sales Support Software @ $7,500 • Training Costs: – He doesn’t have many computers and his – Computer introduction – 8 people @ $200 each salespeople are not that computer literate. – Keyboard skills – 8 people @ $200 each – Sales Support System – 12 people @ $350 each – He knows that he can increase contact numbers • Other Costs: and give better customer service with the system. – Lost time: 40 man days @ $100 per day Efficiency will be improved. – Lost sales through disruption: estimated @ $10,000 – Lost sales through first month inefficiency: estimated @ $10,000 – What should he do? BA 301, Nobles, Fall 2009 BA 301, Nobles, Fall 2009 4
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