Michael Porter theory can help you build a more competitive management strategy
Michael Porter theory focuses on several major models. The most practical are Expectancy Theory and Value Chain Analysis.
Through Expectancy Theory, Porter codified the major factors that impact an employee's motivation to perform. He stated that numerous factors fuel an employee's efforts to reach an organizational goal, including the expectation that performance will yield positive rewards and that rewards will match effort. Through Value Chain Analysis, Porter defined effective supply chain management, presenting a model which categorizes the activities that form a company's product-delivery system as either Primary or Support activities and showing how they work together to build profit. Both models, along with Porter's more complex Five Forces model, form the heart of Michael Porter's Strategic Management Theory.
In order to properly understand Porter's Leadership Theory, you need to focus on the following information:
- You need to gain as much knowledge as possible on Porter management theory.
- You may need to hire a business consultant who is thoroughly comfortable with management theories.
- You should find tools that allow you to put Porter's theory into action.
Gain a thorough understanding of Porter management theory
Numerous websites provide valuable information about Porter theory. In addition to diagrams and summaries of Porter management principles, you'll find various videos and instructional materials that can help you develop the background knowledge and practical expertise to put Michael Porter's theories to work for your company.
Harvard Business Publishing offers a well-produced 13-minute video interview with Michael Porter in which he expounds his Five Forces Theory and discusses his latest article on the topic. (For a link to the article, please see Best Sites to Learn More, at the end of this guide.) The Business Open Learning Archive guides you through Porter's Expectancy Theory, providing a diagram, discussion questions, exercises and tips for applying Porter's theory.
Hire a consultant to help you put Porter's management theory into practice
Consultants with knowledge and experience in the management theory of Michael Porter can guide you in maximizing the benefit of his principles in your own company's unique environment.
Inforte, a firm which offers business strategy e-consulting based on the management theory of Michael Porter, has also reportedly been endorsed by Porter himself. Accenture, a firm with offices in 23 states, provides strategy consulting services which can help you put Porter's theories to work to increase your company's profitability.
Look for tools that will help you put Porter theory to work
Widely available online tools and resources can help you more easily implement Michael Porter management principles. Software programs, information and services are some of the valuable resources you'll find for your business.
The Institute for Enterprise Architecture Developments (IFEAD) features numerous tools to help you optimize your business strategy. The site also offers Porter's What is Strategy? zipped file for download to help you maximize operational effectiveness. Ten3 offers various e-coaching and e-course materials, including a mini-course in strategic management which covers Porter theory.
- Be sure to take advantage of as many online tools and resources as possible to develop a clear understanding of the value that Porter's theory can have for your company.