MNG3702 Assignment 2
Question 1 “Organisations will not survive over the long term without the ability to learn
and adapt to changing environments.” There are various mechanisms that organisations
can use, in combination, to become a learning organisation. Apply any FIVE of these
mechanisms to the Michelin company throughout its history of publishing the Michelin
guide. In your answer, you need to identify the mechanism and then apply it to the
company. (10 marks, of which one mark is awarded for correctly identifying the
mechanism, and one mark is awarded for the correct application of the mechanism to the
company) [10 marks]
Mechanism 1: Continuous Improvement
Identification: Continuous improvement involves an ongoing effort to enhance products,
services, or processes to increase efficiency and quality.
Application to Michelin: Michelin has consistently improved the Michelin Guide since its
inception in 1900. Initially a simple guide for motorists, it evolved to include anonymous
restaurant reviews, a star rating system, and Bib Gourmand awards. This continuous
enhancement reflects Michelin's commitment to improving the guide based on feedback and
changing consumer expectations.
Mechanism 2: Knowledge Management
Identification: Knowledge management refers to the process of creating, sharing, using, and
managing the knowledge and information of an organization.
Application to Michelin: Michelin's extensive use of anonymous inspectors to gather detailed
reviews and the subsequent compilation and dissemination of this information in the Michelin
Guide is a prime example of effective knowledge management. This process ensures that the
company maintains high standards and consistency in the information it provides.
Mechanism 3: Strategic Leadership
Identification: Strategic leadership involves guiding an organization by setting clear goals,
making strategic decisions, and inspiring others to achieve these goals.
,Application to Michelin: Jean-Dominique Senard’s leadership in restructuring Michelin and
transforming its culture to focus on empowerment, responsibility, and accountability is a clear
example of strategic leadership. His initiatives helped align the company’s operations with its
long-term vision and adapt to a rapidly changing environment.
Mechanism 4: Organizational Culture
Identification: Organizational culture encompasses the values, beliefs, and behaviors that
contribute to the unique social and psychological environment of an organization.
Application to Michelin: The shift in Michelin’s organizational culture under Senard, from a
bureaucratic to a more collaborative and trust-based model, significantly impacted how the
company operates. This cultural transformation allowed employees to take on more
responsibilities, innovate, and contribute to the company’s success, aligning with the principles
of a learning organization.
Mechanism 5: Employee Empowerment
Identification: Employee empowerment involves giving employees the authority, tools, and
information they need to make decisions and contribute to the organization's success.
Application to Michelin: Senard’s restructuring initiative empowered Michelin employees by
decentralizing decision-making and allowing them to manage their schedules, set targets, and
take responsibility for their performance. This empowerment fostered a more dynamic and
responsive work environment, crucial for the company’s adaptation and growth.
References
● Daft, R.L., Benson, A., & Henry, B. (2020). Management. 2nd ed. Hampshire: Cengage.
● Michelin statistics [2023]: Figures and charts. Available online.
● Michelin. Britannica. Available online.
● Michelin. People, Profit, Planet.
Question 2 “Resource allocation is an important aspect in strategy implementation.”
Explain the strategic project management framework as a resource allocation framework
that can assist a company to align its projects and programmes with its formulated
strategies. In your answer, you need to discuss the framework and the apply it to the
Michelin company during the period when Jean-Dominique Senard was appointed as
CEO and the changes he made to the company. (16 marks, of which 2 marks will be
awarded to phase 1 of the framework; 2 marks to phase 2, 10 marks to phase 3, and 2
marks to phase 4) [16 marks] 7 MNG3702 Assignment 2, semester 2
Strategic Project Management Framework
, The Strategic Project Management (SPM) framework is a comprehensive approach that
integrates project management principles with strategic planning and implementation. It helps
organizations align their projects and programs with their strategic objectives, ensuring effective
resource allocation and successful strategy execution. The framework consists of four phases:
strategic planning, portfolio management, project management, and benefits realization.
Phase 1: Strategic Planning
Explanation: Strategic planning involves defining the organization’s vision, mission, and
long-term goals. It sets the direction for the organization and identifies the strategic objectives
that need to be achieved.
Application to Michelin: When Jean-Dominique Senard was appointed CEO, he initiated a
strategic planning phase to redefine Michelin’s vision and mission. He aimed to transform the
company’s culture by focusing on empowerment, responsibility, and accountability. This new
strategic direction was essential for aligning the company’s goals with its operational practices
and ensuring long-term success.
Phase 2: Portfolio Management
Explanation: Portfolio management involves selecting and prioritizing projects and programs
that align with the organization’s strategic objectives. It ensures that resources are allocated to
the most critical initiatives that will drive strategic success.
Application to Michelin: Senard prioritized projects that would support the cultural
transformation at Michelin. This included initiatives aimed at decentralizing decision-making,
improving employee engagement, and enhancing operational efficiency. By carefully selecting
and prioritizing these projects, Senard ensured that resources were allocated to the most
impactful initiatives that aligned with Michelin’s strategic goals.
Phase 3: Project Management
Explanation: Project management involves planning, executing, and monitoring projects to
ensure they are completed on time, within budget, and meet the desired objectives. It includes
defining project scopes, setting timelines, allocating resources, and managing risks.
Application to Michelin: Under Senard’s leadership, Michelin implemented several key
projects to drive the company’s transformation:
1. Decentralization of Decision-Making:
○ Planning: Defined clear objectives for decentralizing decision-making, including
specific roles and responsibilities for employees at various levels.
○ Executing: Implemented training programs to equip employees with the
necessary skills and knowledge to make informed decisions.
Question 1 “Organisations will not survive over the long term without the ability to learn
and adapt to changing environments.” There are various mechanisms that organisations
can use, in combination, to become a learning organisation. Apply any FIVE of these
mechanisms to the Michelin company throughout its history of publishing the Michelin
guide. In your answer, you need to identify the mechanism and then apply it to the
company. (10 marks, of which one mark is awarded for correctly identifying the
mechanism, and one mark is awarded for the correct application of the mechanism to the
company) [10 marks]
Mechanism 1: Continuous Improvement
Identification: Continuous improvement involves an ongoing effort to enhance products,
services, or processes to increase efficiency and quality.
Application to Michelin: Michelin has consistently improved the Michelin Guide since its
inception in 1900. Initially a simple guide for motorists, it evolved to include anonymous
restaurant reviews, a star rating system, and Bib Gourmand awards. This continuous
enhancement reflects Michelin's commitment to improving the guide based on feedback and
changing consumer expectations.
Mechanism 2: Knowledge Management
Identification: Knowledge management refers to the process of creating, sharing, using, and
managing the knowledge and information of an organization.
Application to Michelin: Michelin's extensive use of anonymous inspectors to gather detailed
reviews and the subsequent compilation and dissemination of this information in the Michelin
Guide is a prime example of effective knowledge management. This process ensures that the
company maintains high standards and consistency in the information it provides.
Mechanism 3: Strategic Leadership
Identification: Strategic leadership involves guiding an organization by setting clear goals,
making strategic decisions, and inspiring others to achieve these goals.
,Application to Michelin: Jean-Dominique Senard’s leadership in restructuring Michelin and
transforming its culture to focus on empowerment, responsibility, and accountability is a clear
example of strategic leadership. His initiatives helped align the company’s operations with its
long-term vision and adapt to a rapidly changing environment.
Mechanism 4: Organizational Culture
Identification: Organizational culture encompasses the values, beliefs, and behaviors that
contribute to the unique social and psychological environment of an organization.
Application to Michelin: The shift in Michelin’s organizational culture under Senard, from a
bureaucratic to a more collaborative and trust-based model, significantly impacted how the
company operates. This cultural transformation allowed employees to take on more
responsibilities, innovate, and contribute to the company’s success, aligning with the principles
of a learning organization.
Mechanism 5: Employee Empowerment
Identification: Employee empowerment involves giving employees the authority, tools, and
information they need to make decisions and contribute to the organization's success.
Application to Michelin: Senard’s restructuring initiative empowered Michelin employees by
decentralizing decision-making and allowing them to manage their schedules, set targets, and
take responsibility for their performance. This empowerment fostered a more dynamic and
responsive work environment, crucial for the company’s adaptation and growth.
References
● Daft, R.L., Benson, A., & Henry, B. (2020). Management. 2nd ed. Hampshire: Cengage.
● Michelin statistics [2023]: Figures and charts. Available online.
● Michelin. Britannica. Available online.
● Michelin. People, Profit, Planet.
Question 2 “Resource allocation is an important aspect in strategy implementation.”
Explain the strategic project management framework as a resource allocation framework
that can assist a company to align its projects and programmes with its formulated
strategies. In your answer, you need to discuss the framework and the apply it to the
Michelin company during the period when Jean-Dominique Senard was appointed as
CEO and the changes he made to the company. (16 marks, of which 2 marks will be
awarded to phase 1 of the framework; 2 marks to phase 2, 10 marks to phase 3, and 2
marks to phase 4) [16 marks] 7 MNG3702 Assignment 2, semester 2
Strategic Project Management Framework
, The Strategic Project Management (SPM) framework is a comprehensive approach that
integrates project management principles with strategic planning and implementation. It helps
organizations align their projects and programs with their strategic objectives, ensuring effective
resource allocation and successful strategy execution. The framework consists of four phases:
strategic planning, portfolio management, project management, and benefits realization.
Phase 1: Strategic Planning
Explanation: Strategic planning involves defining the organization’s vision, mission, and
long-term goals. It sets the direction for the organization and identifies the strategic objectives
that need to be achieved.
Application to Michelin: When Jean-Dominique Senard was appointed CEO, he initiated a
strategic planning phase to redefine Michelin’s vision and mission. He aimed to transform the
company’s culture by focusing on empowerment, responsibility, and accountability. This new
strategic direction was essential for aligning the company’s goals with its operational practices
and ensuring long-term success.
Phase 2: Portfolio Management
Explanation: Portfolio management involves selecting and prioritizing projects and programs
that align with the organization’s strategic objectives. It ensures that resources are allocated to
the most critical initiatives that will drive strategic success.
Application to Michelin: Senard prioritized projects that would support the cultural
transformation at Michelin. This included initiatives aimed at decentralizing decision-making,
improving employee engagement, and enhancing operational efficiency. By carefully selecting
and prioritizing these projects, Senard ensured that resources were allocated to the most
impactful initiatives that aligned with Michelin’s strategic goals.
Phase 3: Project Management
Explanation: Project management involves planning, executing, and monitoring projects to
ensure they are completed on time, within budget, and meet the desired objectives. It includes
defining project scopes, setting timelines, allocating resources, and managing risks.
Application to Michelin: Under Senard’s leadership, Michelin implemented several key
projects to drive the company’s transformation:
1. Decentralization of Decision-Making:
○ Planning: Defined clear objectives for decentralizing decision-making, including
specific roles and responsibilities for employees at various levels.
○ Executing: Implemented training programs to equip employees with the
necessary skills and knowledge to make informed decisions.
