Strategic Leadership & Corporate Culture (1)

7/28/2019 Strategic Leadership & Corporate Culture (1)

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Made By:

Avinash kumar

Pooja Jain

SukritiEsha Narang

Ashutosh Sharma

Vishu Gaba


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What is Strategy

Strategy = Big + Specific + Actionable

What is Leadership

Leadership = Focus + Movement + Mentoring

Leading Strategically=

Find the strategic vision

Make it clear, specific, strong

Maintain the vision

Manage towards the vision

Communicate the vision


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Strategic Leadership Ability to lead towards the achievement of its

objectives.

Tasks involved are:

Anticipate, envision, maintain flexibility and empowerothers to create strategic change.

Strategic leadership provides the vision anddirection for the growth and success of an

organization.


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Levels of Strategic Leaders

Corporate Level

Business Level

Functional Level

Operational Level


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Role Of Strategic Leaders

CEO

Chief architectoforganizationalpurpose

Organizationalleader

Chief

administrator Communicatoroforganizationalpurpose

Top Manager

Implementationof strategies

Periodicevaluation ofperformance

Assist the BOD

Form

committees,work groups,etc.

Business LevelExecutives

Profit centers ordivisional heads

Authority withina SBU

Coordination ofdifferent SBUs

Review of

performance ofSBUs

Functional &Operational Mgrs

Implements thedecisions ofcorporate &business levelmanagers

Followers ofpolicy guidelines


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Tasks of Strategic Leaders Determining strategic direction.

Effectively managing the organizational resources.

Sustaining an effective organizational culture.

Emphasizing ethical practices.

Establishing balanced organizational control.


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Styles of Strategic LeadersAutocratic

Democratic

Laissez- Faire Nurturing-Task


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QuizaA Any guesses???What leadership style suits best for an organization?

Which leadership style is suitable for introducing asmaller change?

Which leadership style is suitable for introducing a bigchange?


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CORPORATE CULTURE

It is a set of assumptions that members of an

organization share in common.

The beliefs and behaviors that determine how acompany's employees and management interact and

handle outside business transactions.

A company's culture will be reflected in its dress code,

business hours, office setup, employee benefits,

turnover, hiring decisions, treatment of clients, client

satisfaction and every other aspect of operations.


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Corporate Culture is often referred to as Organizational

DNA or Organizational Soul.

It is the fundamental contributor of the success or failure

of corporate strategies.

Reflected in companysvalues, business principles and ethical standards

relationships with stakeholders

approaches to people management and problemsolving


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Impact of Culture on Corporate Life

Culture affects not only the way managers behavewithin an organization but also decisions they make

about the organization's relationship with its

environment and its strategy.

Corporate Culture acts as strength- Facilitate

communication, decision making and control and

create cooperation and commitment.

Corporate Culture is a weakness- employees do nothave high sense of commitment, loyalty and sense of

identity.


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Impact of Culture on two different groups of

organizationsDimensions

Nature of desired

managerial skills &

capabilities

Actual performanceor results achieved

Multinational

subsidiaries

Professional

Qualifications and

rank

Seniority ,conformity

to values and

loyalty

Family businesses &

NRIscompanies

Demonstrated skills,

depth and quality

of knowledge

Innovation, thinking

and upgradation

of knowledge


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Managerial style of

planning &

decision making

Managementsystems adopted

Nature of

management

control

Information gathering,

bureaucratic modeof functioning, risk

aversion and non-

entrepreneurial

decision making

Use of elegant,sophisticated and

rational systems

which degenerate

due to low usage

Comprehensive,

formal and written

reporting

Selective information

usage and intuitive

and quantitative

decision making of

entrepreneurial

nature

Reliance on businesssense and no-frills

systems geared to

quick action

Primary use of verbal

reporting and

remedial action


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Strategy Culture Relationship

Strategy drives focus and direction while culture is theemotional, organic habitat in which a companysstrategy lives or dies

Strategy is just the headline on the companys story

culture needs a clearly understood common languageto embrace and tell the story that includes mission,vision, values, and clear expectations

Strategy lays down the rules for playing the game, and

culture fuels the spirit for how the game will beplayed

Strategy is imperative for differentiation, but a vibrantculture delivers the strategic advantage
http://www.torbenrick.eu/blog/culture/8-steps-to-create-a-great-corporate-culture/http://www.torbenrick.eu/blog/change-management/storytelling-an-important-part-of-change-management/http://www.torbenrick.eu/blog/culture/value-statements-can-be-real-business-drivers/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/culture/value-statements-can-be-real-business-drivers/http://www.torbenrick.eu/blog/change-management/storytelling-an-important-part-of-change-management/http://www.torbenrick.eu/blog/culture/8-steps-to-create-a-great-corporate-culture/


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Approaches to create strategy-supportive culture:

To Ignore Corporate Culture

To Adapt Strategy Implementation to Suit Corporate

Culture To Change the Corporate Culture to Suit Strategic

Requirements

To Change the Strategy to Fit the Corporate Culture


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CORPORATE POWER AND POLITICSAlliances and coalitions in organizations

compete for resources

Power impacts organizational life work attitude

motivation

communication

retention

Knowing how power functions is important


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WHAT IS POWER? Interpersonal (or intergroup) relationship in which one

individual (or group) can cause another individual (or

group) to take an action that it would not otherwise take.

Involves changing the behavior of another

person A has power over person B if B believes A can

force B to comply.


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POWER/LEADERSHIP/

AUTHORITY RELATIONSHIPPower is closely related to leadership and authority

Leadership

Authority Power


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TYPES OF POWERReward Power- arises from the ability of managers to

reward positive outcomes

Coercive Power (punishment power)- arises from the

ability of managers to penalize negative outcomes

Legitimate Power (authority)-arises from the ability ofmangers to use position to influence behavior


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Referent Power (charisma)- arises from the ability ofmanagers to create liking among subordinates due to

charisma or personality

Expert Power- arises from the managers competence,

knowledge and expertise that is acknowledged by others


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POLITICSThose activities taken within organizations to acquire,

develop, and use power and other resources to obtain

ones preferred outcome in a situation where there is

uncertainty of outcome.


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POLITICS The use of power to influence

decisions that achieve desired

outcomes.1. Self-interest

2. Decision-making process

Uncertainty & disagreement


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Why do we have politics? Different ideas, values, interests and goals

Limited resources (money etc.)

Outcome is not clearly defined


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The Dark Side of Power and Politics

Power and politics often have

negative connotations becausepeople associate them with

attempts to use organizational

resources for personal advantage

and to achieve personal goals at the

expense of other goals.


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The Bright Side

Managers can use power to control

people and other resources so that they

cooperate and help to achieve anorganizations current goals.

Managers can use power to engage in

politics and influence the decision-

making process to help promote new,

more appropriate organizational goals.


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Strategic Use of Power and PoliticsMintzbergs view

Corporate politics is neither inherently good nor bad

Though most of the times corporate politics leads todivisiveness that is not good for an organization, yet there

are times when it needs to be shaken up in order to bring

in changes

Politics and power have a definite role to play in strategyimplementation


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Mintzberg says that the organization must..pull apartbefore it can pull together again

In other words, strategists need to know when to use power

and politics to get things done and when to shun politics

and use of power to maintain harmony.

Politics and power affect the way strategy is implemented

and formulated


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Tactics to deal with power and

politics

First of all, to accept the inevitability of politics being

there in the organization

Understand how an organizations power structure works,

who wields real power and influence and who are the

individuals and groups whose opinions carry weight and

cannot be disregarded

To be sensitive and alert to political signals emanating

from different parts of the organization


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To know when to tread softly and rely on coalition

management and consensus building and when to push

through decisions and actions To lead strategy and not to dictate it, being patient till

consensus emerges

To let most negative decisions emerge as a group consensus

rather than as a directive from the top

To gather support for acceptable proposals and let the

unacceptable ideas die a natural death

To reward organizational commitment and penalizenegative or indifferent attitude

To practice principled politics and use openness and

honesty to counter and unprincipled politics

Strategic Leadership & Corporate Culture (1)

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