OnApril24,2016,Prof.EdwardG.KrubasikvisitedschoolofmanagementinFudananddeliveredanexellentspeech“ValueCreationthroughRestructuring,InnovationandGrowth”tothestudent.

Prof.EdwardG.KrubasikbeginhistopicfromCreatingValueinManufacturingandSeviceBusinessesthroughRestructuring,InnovationandGrowthPrograms.Theconceptwasillustratedbylotsofcaseslike:Integratedrestructuringprogramformergerinmarketcrisis,AssetManagementProgramtofightcashshortage,:Innovationasaleverinrestructuring,GrowthProgramswithaccountteams,etc.TheEVAwasalsoacriticalpointtoemphasize.Letusneverforget:Companiesarefoundedtoservecustomers,(notasemploymentagencies,notasplaygroundforinvestors).Maingoalistoprovidevaluetothecustomer.Companiesneedskilledemployeesandcapital.Turningsharholder-valuethinkingintoamoregeneralvaluecreationobjective:Acompanycanbeprofitablebecauseitprovidesvaluetocustomers,enablingittoprovidevaluetoshareholders,employees,communityandtheglobaleconomy.

Thecontentsfollowedthegoals,actions,consequencessection.Therearethreesegmentswecanlookinto:Costreductionpotentialidentifiedthroughbenchmarking.Simultaneousrestructuringandgrowth.Catchupwithcompetitorsthroughwavesofproductivityimprovementprograms.ThentheProf.Speakaboutthe:Integratedrestructuringprogramformergerinmarketcrisis,includingSelectthebestteamforadivisionalorganization,setroughtargetsfollowedbybenchmarking,developanintegratedprogramforalldivisions.Agreeonyearlytargetmatrixwithequalaspiration,etc.

Managementreactiontocrisiswasanotherimportantpartofthespeech.Startoverallrestructuring,withassetmanagementprogramenvolvingtheentireorganization.SupportCEOwithprogrammanagementofficetoleadtheeffort.Setrestructuringtargetstoachieveprofitabilityat2/3sales,ifnosalesrecoverymorerestructuring.Startmassivecashmanagementprogramwithtargetsfordivisionsandfunctions.Mobilizeallasssetmanagementlevers.UseDegreeofImplementationmethodusedtotrackprogress.RestructuringandGrowthProgram.ThenweusetheEconomicValueAddeddrivertree.Theassetperformanceisdrivenbythreemainprocesses.

Innovationisthetopicthatmoststudentareinterestedin.Innovationcreatesvalueviagrowth,costreduction,assetreduction.Innovationiscoreofsuccessfulturn-arounds.Typicalinnovationinturn-aroundforelectronicsystems.CreatingValuethroughInnovation.GrowthlessonsonInnovationLeadcustomerinput:AcustomerchallengingR&Dhelps(Germanindustrialmodel).LearnfromsolutionprovidersRegulation:Competitionstimulatesinnovation.Earnyourrighttogrow:Profitablegrowthisrequired.Coverthelow-end,innovateinNICs.Stay-aheadoflow-costcompetitorsbysolutions,service,customerorientation.

Lasttopicisaboutservice.Serviceswillincreaseinindustrializedeconomies.Servicesarereplacingindustryasthelargesteconomicsector.Servicesectoralreadydominatestheemploymentmarket,ServicesectorislargestinUSA,followedinEuropebyFranceandUK.EUcountrieslostouttotheUSinproductivitygrowthandjobcreation.Trendtowardssolutionandlife-cycle-orientedservices.ITservicesprovidehighestvalue-creationpotential.Serviceispeoplebusiness,productivityprogramsneedorganization-wideinvolvement.

Attheendpartofthespeech,manyquestionswereraisedfromthestudentsabouttheChineseeconomyandInnovationsituationinChina.Prof.EdwardG.Krubasikansweredallthequestionswithgreatinsights.AllthestudentsweresatisfiedwiththisexellentspeechandwereexpectingtoattendingProfessor’slecturenexttime.

Theprofessoralsoexpressedthewishtovisitschoolofmanagementinnearfutureandlookingforwardtohavefurthercommunicationwithourstudents!

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FudanMBAProgram

Apr25,2016