Leadership and Corporate Culture
What is Leadership?
What is Leadership?
Ability to
persuade others to do things for the good of the organization
make difficult decisions
make unpopular decisions
deliver results
create long-term commitments
Why is the Leader Important to An Organization?
Why is the Leader Important?
Establishes vision Develops and implements strategies Allocates and controls resources Chooses key employees Shapes culture Affects organizational performance Projects image to the public
Levels of Leadership (Jim Collins, HBR, Jan. 2001)
Highly capable individual Contributing team member Competent manager Effective leader – catalyzes commitment to
and vigorous pursuit of a clear & compelling vision, stimulate high performance
Executive – builds enduring greatness through humility and professional wills
What are the Leadership Traits of Highly Productive Organizations?
Leadership Traits of Highly Productive Organizations
Attention to details Highly ethical and moral Embracing simplicity & disdain for waste Long-term focus Humility Coaching leadership style Trust and believe in others
Management Practices That Work (Nohria, et al., HBR, 2003)
Primary
Strategy, Execution, Culture, Structure
Secondary (Two of Four)
Talent, Leadership, Innovation, Mergers
and Partnerships
Leadership Development
Leadership skills
Management skills
Communication skills
Problem identification and solving skills
Strategic development and execution
skills
Leadership Strategies for Productivity Improvement?
Leadership Strategies for Productivity Improvement
Create a clear and simple vision Build a culture supported by core values Assembles an effective management team Apply a consistent business strategy Avoid layoffs Develop a motivated workforce Use system’s approach to eliminate waste
Leadership Commitment(Donald N. Sull, HBR, June 2003)
Strategic frame
Resources
Processes
Relationships
Values
What Is Corporate Culture?
What Is Corporate Culture?
Corporate culture is an organization’s value system and its collection of guiding principles
Values are often seen in conjunction with mission or vision statement
Culture is reflected by management policies and actions
Culture and values are strongly influenced by the top executive
Purpose of Culture
Organizational socialization
• Formal
• Informal
Behavioral conformity
• Values and beliefs
• Behaviors
Definition of Culture
Observable
• Artifacts and behaviors: symbols, awards,
stories, heroes, slogans, ceremonies
Not Observable
• Values and beliefs
• Underlying assumptions
Dominant Orientation of Culture
Market and financial-oriented: defined in terms of
customers needs and financial performance
Materials- or product-oriented: defined in terms of
the material it works with or the product it makes
Technology-oriented: defined in terms of the
technology that it uses
People-oriented: defined in terms of how employees
are hired and treated
“Best” Values
They have a “grab-you-by-the heart” quality
They often precede and drive strategy
They are put into place by living them
They enable people at every level to become leaders
They are consistent with the everyday values to which most people aspire
They get managed as proactively as strategies, plans, and budgets.
Robert Waterman, Robert Waterman, What America Does RightWhat America Does Right
What Are the Foundations of A Productivity-Focused Culture?
Foundations of A Productivity-Focused Culture
Survivor mentality
Productivity through people
Respect for people
Creating reality from expectations
Challenging targets with resource commitment
Managing change
Developing capabilities
Foundations of A Productivity-Focused Culture (Continued)
Committed to constant change, innovation,
and value-added operations - continuous
improvement: productivity improvement is a
direction, not a destination
Committed to be a “world-class organization” -
to be better than the best
Being prepared to keep moving on
Strategies to Create A Culture for Productivity Improvement?
Strategies to Create A Culture for Productivity Improvement
Inspire all employees to achieve high performance
Empower employees to make decisions and seek improvements
Reward employees based on individual and group performance
Create a challenging but satisfying work environment
Follow a clear set of values
Managerial Culture Reinforcement Actions
The behaviors managers measure and control
Managers’ reactions to crises
Modeling and coaching of expected behaviors
Criteria for allocation of rewards
Criteria for selection, promotion, and
termination of employees
Actions to Change Culture
1. Change people’s behaviors through reward,
training, policies, etc.
2. Justify the new behaviors using new culture
artifacts: stories, symbols, rituals, heroes.
3. Communicate the new artifacts widely and
consistently
4. Hire new employees who match the new culture
5. Remove employees whose behaviors deviate
from the new culture values
Making Radical Change
Anticipating,
exploiting, and
creating
“breakpoints”
Paul Strebel, Paul Strebel, BreakpointsBreakpoints
Organizational Transformation Process (John Kotter, Leading Change)
1. Establishing a sense of urgency
2. Creating the guiding coalition
3. Developing a vision and strategy
4. Communicating the change visions
5. Empowering employees for broad-based action
6. Generating short-term wins
7. Consolidating gains and producing more change
8. Anchoring new approaches in the culture
Strategies to Help Employees Embrace A PI Initiative?
Senior Managers
Middle Managers
Front-Line Staff
Strategies to Help Senior Managers Embrace A PI Initiative
Relate a single, compelling message
Put initiative at top of agenda
Provide financial and non-financial
incentives
Identify owners/champions
Establish clear stretch targets
Strategies to Help Middle Managers Embrace A PI Initiative
Delegate real decision authority
Provide feedback on status of initiative
Achieve measurable milestones on time
Provide sufficient resources
Reward successes and encourage risk-
taking
Strategies to Help Front-Line Employees Embrace A PI Initiative
Provide effective training
Make technology and tools available to
employees
Clearly reward excellent performance
Encourage employee suggestions and
feedback
Organizational Design for Productivity Improvement
Simplify
• Reduce the number of layers
• Reduce and eliminate bureaucracy
• Empower employees Promote cooperation and information sharing
• Teamwork
• Cross-functional teams
• Knowledge and information sharing systems