Let's Get Strategic
My favorite course so far this semester (and arguably the MHRM program so far—although I’m finding it remarkably difficult to choose between it and my former favorite Organizational Development & Change) is Strategic Management of Human Assets taught by Professor Steffanie Wilk. The course is required in the MHRM core curriculum, but what makes it different than most MHRM core classes in structure is that many MBAs choose to take it as an elective. We have the option to take it during the day (Tuesday & Thursday 1:00-2:30 PM) and Thursday evenings (Thursdays 6:15-9:30 PM). I personally chose to take the daytime option because I was excited to learn from and interact with some MBA students I don’t as often get to interface with.
In short, the class is about strategically aligning human resources policy, practice, and decision-making with the strategy of the organization. During the first week of class, we defined the three primary strategies by which businesses compete: cost, quality, and innovation. We took some time the first week to define what each of these strategies can look like (and not look like) based on industry, sector, and product, and then we dove right into debate about competitive advantage. Some insider thoughts from Jen's notebook:
Business seeks to find efficiencies to ultimately provide a lower cost product or service than competitors (example: Costco)
Business focuses on quality of product or service and precise "moves" hinge upon how customers define quality (example: Wendy's)
Business focuses on differentiating products or creating new product lines to leverage new markets (examples: Amazon & Apple)
a condition that, when present, makes magic
In other words, your competitive advantage differentiates you from competitors, makes money, and is sustainable over time. In other, other words, it's the secret sauce of the organization.
We are currently in the midst of what Professor Wilk likes to call “Airplane Week.” We are discussing the commercial airline industry and how two distinct airlines—Southwest and JetBlue—compete using their respective strategies and competitive advantages. Today we debated what, precisely, differentiates Southwest from competitors and how the strategy impacts culture, recruiting, hiring, training, rewards and performance management processes.
I was genuinely fascinated by the discussion, and impressed with the effort it takes for organizations like Southwest to appear like they function effortlessly in day-to-day operations. And, I'm already looking forward to Thursday when we'll talk about JetBlue and how they approached the competitive landscape as a start-up airline in the late 90s.