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

(Jim Collins, HBR, Jan. 2001)

Levels of Leadership

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 systems 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 organizations 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, What 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 ProductivityFocused 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 peoples 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, Breakpoints

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 risktaking

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 Teamwork Cross-functional teams Knowledge and information sharing systems

Promote cooperation and information sharing