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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 decisionsmake unpopular decisionsdeliver resultscreate 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 consistently4. Hire new employees who match the new culture5. 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
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