Major Leadership Challenges in Organizations

1. Major Leadership Challenges in Organizations Sahar Radwan-Kamaly Hadi Mohamed Salem Lucille Perreault Alanna Racine Florentina Macovei Pierre Page Azzam Abuelhassan

2. Agenda • Case study objective • Review of leadership approach • Silicon Pro – Start up • Intelerad – Growth • HP – Mature • Conclusion and recommendations

3. Case Study Objective • Effectively recognize, analyze and present the various leadership styles within the life cycles of an organization • Review the leadership styles and approaches of three high tech businesses • Determine the leadership impact on the organizational structure, incentive plan, decision making process and culture

4. Leadership • The ability to positively influence people and systems to have a meaningful impact and achieve results • “Leadership is the art of accomplishing more than the science of management says is possible.” ( Collin Powells)

5. Setting and sharing a vision Change agent Focusing on the customer Supporting teams and groups Sharing information Solving problems, making decisions Responsible and accountable Ethical Passionate Leadership Competencies

6. SiliconPro Company profile • Founded in 2003 - Kanata • Consulting company focuses on: • Provides wide range of IC ( Integrated Circuits ) • Design services and IC infrastructure components • Presently has two contracts and developing two products • No profit during the first two years • 8 employees including the president • Key client - Nortel

7. Overview

8. Strategy • To create and optimize circuits for clients at a reduce cost to accelerate the development process of complex ASIC (Application Specific Integrated Circuit) • SiliconPro helps its clients achieve 10% of their design efficiencies of final timing targets

9. Culture/Leadership Strategy Organizational Life Cycle Transformational (revolutionary) • Leadership Style • Directive • Organizational Culture • Production • Leadership Style • Logical • Organizational Culture • Quality • Leadership Style • Supportive • Organizational Culture • Supportive • Leadership Style • Inspirational • Organizational Culture • Creative Transactional (evolutionary) Product Differentiation Focus Niche Cost Focus Cost Leadership

10. Staffing Strategies Organizational Life Cycle • Specialists • Risk avoiders • Anticipative • Process motivated • Predictable • Change resistant • Discipline • Functional differentiation • Risk containment • Proactive but reactive • Change questioning • Discipline by route • Functional grouping • Risk reduction • Some planning • Results/process tradeoffs • Change accepting • Team discipline • Generalists • Risk takers • Reactive • Improvisers • Results motivated • Change promoting • Undisciplined Product Differentiation Focus Niche Cost Focus Cost Leadership

11. Organizational Structure • Entrepreneurial: Flat structure representative of a start up company • Technology: Simple • Environment: unstable, highly uncertain

12. Culture and leadership Quality Creative Risk Taking Production Supportive Team Work Technical Social Organizational Culture

13. Conclusion &recommendation Appropriate Caution Risky

15. Industry: Medical Devices (radiology) Headquarters: Montreal Founded: 1999 Company type and size: Private, 200 employees, growth Products: Picture Archiving Computing System (PACS) Teleradiology Systems Service: Customer care and support 24/7 Solution to manage multiple workflows across numerous facilities (i.e. private radiology clinics or multi-site hospitals) Intelerad Company Profile

16. PACS created: Montreal General Hospital, associated with McGill University Business opportunity: hospitals eager to leave radiology films behind Founders of Intelerad: leaders in computer science engineering and biomedical engineering (employees of Montreal General Hospital and McGill University) Intelerad branding: data migration, integration, product architecture and user-friendliness Ranked #1 two years in a row (2007/2008) the KLAS Ambulatory Award Background/opportunity

17. Overview

18. Market Segment: Private radiology clinics and mid size hospitals Market Advantage: Commitment to innovation and attention to customer feedback Global market for PACS is expected to reach $4.4 billion by 2010 (growing market) #1 in the ambulatory radiology market Market Environment

19. Growth Intelerad Medical Systems ranks among the 2008 Deloitte Technology Fast 50 listing of the fastest growing Canadian technology companies With over 500 installations worldwide, Intelerad excels at handling the demands of wide area networks and complex workflows Revenues 2009 1999

20. Executive Organizational Chart

21. Board of Directors

22. Strategy First and foremost “Innovators” Joint venture alignment (to support turn key solutions) Invest in S&M Invest in R&D Create & stabilize support model

23. Leadership & Culture Follows Strategy Organizational Life Cycle Transformational (revolutionary) • Leadership Style • Directive • Organizational Culture • Production • Leadership Style • Logical • Organizational Culture • Quality • Leadership Style • Supportive • Organizational Culture • Supportive • Leadership Style • Inspirational • Organizational Culture • Creative Transactional (evolutionary) Product Differentiation Focus Niche Cost Focus Cost Leadership 2014-10-14 23

24. Leadership & Staffing Follows Strategy Organizational Life Cycle • Specialists • Risk avoiders • Anticipative • Process motivated • Predictable • Change resistant • Discipline • Functional differentiation • Risk containment • Proactive but reactive • Change questioning • Discipline by route • Functional grouping • Risk reduction • Some planning • Results/process tradeoffs • Change accepting • Team discipline • Generalists • Risk takers • Reactive • Improvisers • Results motivated • Change promoting • Undisciplined Product Differentiation Focus Niche Cost Focus Cost Leadership

25. Leadership, Structure & Decision making

26. INFORMATION,DECISION MAKING FOLLOWS STRATEGY Organizational Life Cycle • Proactive • Deductive • Structured process • System based • Internal focus • Deliberate • Continuous • Compartmentalized • Planning and guessing • Experience anchored • Formal systems and executive by function • More internal • Organized • Regular silos emerging • Some planning • Experience based • Formulize by functions • More organized • Regular sharing by skills and functions • Reactive • Inductive • Informal • External focus • Spontaneous • Sporadic • Widely shared Product Differentiation Cost Focus Cost Leadership Focus Niche

27. Staff and Mgmt: calculated annually based on individual and corporate results (3 – 4 %) Sales Personnel: calculated quarterly based on sales results National benchmarking salaries and incentives (targeting 50 – 70 percentile) Staff option plans ??? Phasing out next 3 – 4 years Incentive Plans 2014-10-14 27

28. Structural Style Organizational Life Cycle • Lack of Market Research (Adapt) • SBU • Matrix • Lack of Market Flexibility (Control) • Divisional Structure • Lack of Market Fit (Align) • Functional bureaucratic • Lack of Market Match (Invent) • Entrepreneur Product Differentiation Focus Niche Cost Focus Cost Leadership 2014-10-14 28

29. Centre of Gravity Supply Flow • Both a manufacturer of our product and a service delivery organization • Intelerad is a “Customer Oriented” organization

30. Conclusion &recommendation Appropriate Caution Risky

31. HP company profile • Founded in 1939 • Technology solutions provider to: consumer , business and institution globally • Leading global provider in computing, imaging solutions and services for business and home services • Market leader in printers and low-end servers, but trails Dell in PCs and IBM in services • World’s largest IT companies- Revenue totaling $113.1 billion at and 325,000 employees • Strategic Advantage – leader in providing mission-critical services and support across all operating systems and to IT infrastructure, including storage, system software, and the network

32. Overview

33. Core Business Segments 2007 Revenues of Business Segment • Technology Solutions Group (TSG) • - Enterprise Storage and Servers (ESS) • - HP Services (HPS) – Consulting, Outsourcing services, Personal Systems Group (PSG)  • Imaging and Printing Group (IPG) • HP Financial Services (HPFS)

34. Strategic Alternatives Snapfish Restructuring 7-company Acquisitions Divestiture Horizontal Integration – Acquisition/Merger R&D center expanding

35. HP Financials • Profitability • Profit Margin (ttm): 6.78% • Operating Margin (ttm): 9.18% • Management Effectiveness • Return on Assets (ttm): 6.87% • Return on Equity (ttm): 20.77% • Income Statement • Revenue Per Share (ttm): 48.537 • Revenue Growth (lfy)³: 1.20% • Gross Profit (ttm)²: 28.77B • EBITDA (ttm): 14.72B • Diluted EPS (ttm): 3.20 • Balance Sheets • Total Cash Per Share (mrq): 4.696

36. Executive Organizational Chart

37. Bill Hewlett & David Packard 1938 – 1997

38. Carly Fiorina 1999 to 2005

39. Mark Hurd 2005 till Now

40. Leadership Follow Culture Organizational Life Cycle • Leadership Style • Directive • Organizational Culture • Production Transformational (revolutionary) • Leadership Style • Logical • Organizational Culture • Quality • Leadership Style • Supportive • Organizational Culture • Supportive • Leadership Style • Inspirational • Organizational Culture • Creative Transactional (evolutionary) Product Differentiation Focus Niche Cost Focus Cost Leadership

41. Leadership, Structure, and Decision making

42. Leadership, staffing, and Incentives

43. HP Training • Training • HP committed to the development of each employee • HP Certified Professional Program • HP Partner Learning -Partner training - Certification - Service qualification • Leaders – training Leaders program • E- learning tools

44. Benefits and Incentives • HP benefits • Stay healthy and secure (medical benefits, insurance • Achieve your retirement and financial goals • Enjoy time away from work – payed vacation • Educational Program • Travel and others discounts

45. Information Decision Making Analytic(Achievement) Conceptual(Recognition) LowStructure Directive(Power) Behavioral(Affiliation) HighStructure Task People VALUES ORIENTATION

46. STRUCTURE FOLLOWS STRATEGY • SBU/ Matrix Divisional Structure • Functional • Structure Entrepreneur Product Differentiation Focus Niche Cost Focus Cost leadership

47. INFORMATION/DECISION MAKING FOLLOWS STRATEGY • Proactive • Deductive • Structured process • System based • Internal focus • Deliberate • Continuous • Compartmentalized Organizational Life Cycle • Planning and guessing • Experience anchored • Formal systems and executive by function • More internal • Organized • Regular silos emerging • Some planning • Experience based • Formulize by functions • More organized • Regular sharing by skills and functions • Reactive • Inductive • Informal • External focus • Spontaneous • Sporadic • Widely shared Product Differentiation Cost Focus Cost Leadership Focus Niche

48. Center of Gravity HP Computer Services HP Printing Servers

49. Summary

50. HP strategies for the Future Focusing in services and in special in cloud computing Spin off the computer division Management pay attention to people and innovation and stop cutting cost Introduce Ethics and Morale when Executive compensation are calculated Returning to the HP Way when company innovate and have new product for market Continuing focusing in customer and quality of the products