Session 20
description
Transcript of Session 20
McGraw-Hill/IrwinMcGraw-Hill/IrwinStrategic Management, 10/eStrategic Management, 10/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Leadership and Culture
Session 20Session 20
12-2
Learning Objectives1. Explain the relevance of vision and performance in
helping leaders clarify their strategic intent2. Define and illustrate the value of passion and
selection/development of new leaders as means to shape their organization’s culture
3. Define and explain what is meant by organizational culture, and how it is created, influenced, and changed
4. Explain two roles organizational leaders have in an organizational culture
5. Describe ways leaders influence organizational culture
12-3Strategic Leadership:Embracing Change
• The leadership challenge is to galvanize commitment among people within an organization as well as stakeholders outside the organization to embrace change and implement strategies intended to position the organization to succeed in a vastly different future
12-4
Clarifying Strategic Intent• Leaders help their company embrace change by
charting strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve
• Leader’s vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership
12-5
“I have vision and the rest of the west wears
bifocals”
Butch Cassidy circa 1870
12-6
“By the end of this decade I commit this nation to
putting a man on the moon”
John F. Kennedy 1961
12-7
“By the turn of the century there will be more computers than
televisions in the U.S.”
????
12-8Recruiting and Developing Talented Operational Leadership
• New leaders will each be global managers, change agents, strategists, motivators, strategic decision makers, innovators, and collaborators if the business is to survive and prosper
• Today’s need for fluid, learning organizations capable of rapid response, sharing, and cross-cultural synergy place incredible demands on young managers to bring important competencies to the organization
12-9
Organizational Culture• Organizational culture is the set of important
assumptions (often unstated) that members of an organization share in common
• Every organization has its own culture • Assumptions become shared assumptions through
internalization among an organization’s individual members
12-10
Characteristics Describing Culture
• Individual autonomy• Structure• Support• Identification• Performance reward• Conflict tolerance• Risk tolerance
12-11
Origins of Culture
• History
• Environment
• Staffing
• Socialization
12-12Culture and Competitive Advantage
Culture Must:
Generate Specific Value for the Firm
Be Rare
Not easily imitable
12-13
Shaping Organizational Culture• Passion, in a leadership sense, is a highly
motivated sense of commitment to what you do and want to do
• Leaders also use reward systems, symbols, and structure among other means to shape the organization’s culture
• Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about
12-14
Shaping Organizational Culture• Emphasize key themes or dominant values• Encourage dissemination of stories and legends about core
values• Institutionalize practices that systematically reinforce
desired beliefs and values• Adapt some very common themes in their own unique
ways• Manage organizational culture in a global organization:
– Social norms– Values and attitudes– Religion– Education
12-15
Primary Embedding Mechanisms
• What leaders pay attention to, measure and control• Leaders reactions to critical incidents/organzational crises• Mentoring - Deliberate role modeling, teaching, coaching• Criteria for the allocation of rewards and status• Criteria for recruitment, selection, promotion, retirement
and excommunication
12-16
Secondary Embedding Mechanisms
• Organizational design and structure• Organizational systems and procedures• Design of physical space, facades, buildings• Stories about the important events and people• Formal statements of organizational philosophy,
creeds, charters
12-17
McKinsey 7-S Framework
Shared Values (culture)
Strategy
Staff
Systems
Style
Structure
Skills(management) (leadership)
(management)
12-18
The Role of the Organizational Leader
• The leader is the standard bearer, the personification, the ongoing embodiment of the culture, or the new example of what it should become
• How the leader behaves and emphasizes those aspects of being a leader become what all the organization sees are “the important things to do and value.”
12-19
Ethics• Ethical standards are a person’s basis for
differentiating right from wrong • The culture of an organization, and particularly the
link between the leader and the culture’s very nature, is inextricably tied to the ethical standards of behavior, actions, decisions, and norms that leader personifies
12-20Manage the Strategy-Culture Relationship
• Link to mission
• Maximize synergy
• Manage around the culture
• Reformulate strategy or culture
12-21
Remember: Culture Eats Strategy for
Breakfast!
12-22
Culture, Structure, Leadership and Reward
Systems should be Strategy Based
12-23
celebrate, point out, document, ritualize, measure and reward
behaviors/skills/actions that achieve efficiency, innovation,
product quality or customer responsiveness.