Corporate Culture and

Leadership
Strategic Management & Leadership

3 Jul 2015

Learning Objectives
Be

able to identify the key features of a

companys corporate culture
Understand why a companys culture can aid
the drive for proficient strategy execution
Learn the kind of actions management can
take to change a problem corporate culture
Understand what constitute effective
managerial leadership in achieving superior
strategy execution

10 Basic Tasks of Strategy

Execution Process
Staff the
organization
with the right
people for
executing
strategy
Exercise strong
leadership to
propel strategy
execution
Instill a
corporate
culture that
promotes good
strategy
execution
The reward and
incentives
directly to
achievement of
strategic and
financial target

Build the
organizational
capabilities
required for
successful
strategy
execution

The action
agenda for
executing
strategy

Install
information and
operating
systems that
support strategy
execution
activities

Establish a
strategysupportive
organizational
structure

Allocate
sufficient
resources to the
strategy
execution effort
Institute policies
and procedures
that facilitate
strategy
execution
Adopt best
practices and
business
processes that
drive continuous
improvement

INSTILLING A CORPORATE CULTURE

THAT PROMOTES GOOD STRATEGY
EXECUTION

The meshing together of shared

values, beliefs, business principles,
and traditions into a style of operating,
behavioral norms, ingrained attitudes,
and work atmosphere defines a
companys corporate culture

Identifying the Key Feature

of a Company Corporate
Culture
The

values, business principles, and ethical

standards that management preaches and
practices
People management, policies and
procedures, and operating practices
The atmosphere and spirit that pervades
the work climate
The way managers and employees interact
and relate to one another
The strength of peer pressure to do things
in particular ways and conform to expected
norms
The actions and behaviors that are
explicitly encouraged and rewarded by
management

The Role of Core Values

and Ethics
A companys culture is grounded in and
shaped by its core values and ethical
standards

The Two Culture-Building Roles of a

Companys Core Values and Ethical
Standards

Transforming Core Values and

Ethical Standards into Cultural
Norms
1. Giving attention to values and ethic in recruiting and
2.

3.

4.
5.

6.

7.

8.

hiring
Incorporation the statement of values and the code
of ethic into orientation programs for new employees
and training for managers and employees
Having senior executive frequently reiterate the
importance and role companys values and ethical
principles
Using values statement and codes of ethical conduct
as benchmark
Making the display of core values and ethical
principles a big factor in evaluating each persons
performance
Making sure that managers, from the CEO down to
frontline supervisors, are diligent in stressing the
importance of ethical conduct
Encouraging everyone to use his or her influence in
helping enforce observance of core values and
ethical standards
Periodically having ceremonial occasions to recognize

The Role of Stories

A significant part of a companys culture is captured

in the stories that get told over and over again to
illustrate to newcomers the importance of certain
values and the depth of commitment that various
company personnel have displayed

Perpetuating the Culture

1.
2.
3.
4.
5.
6.

By screening and selecting new employees that

will mesh with the culture
By systematic indoctrination of new members in
the cultures fundamental
By the efforts of senior managers to reiterate core
values in daily conversation and pronouncements
By telling and retelling of company legends
By regular ceremonies honoring employees who
display desired cultural behaviors
By visibly rewarding those who display cultural
norms and penalizing those who dont

Forces That Cause a Companys

Culture to Evolve
Culture arent static just like strategy and
organization structure, the evolve. New
challenge in the market place, revolutionary
technologies, shifting internal condition tend
too breed new way of doing things and, in
turn, drive cultural evolution

Company Cultures Can be

Strongly or Weakly
Embedded
A

strong implanted corporate culture ends

up having a powerful influence on behavior
because so many company personnel are
accepting of cultural traditions and
because this acceptance is reinforced by
both management expectations and coworkers peer pressure to conform to
cultural norms.
Two factors involved:
A founder or strong leader who established core
values, principles and practice
A sincere long standing company commitment to
operating the business according to these
established tradition and values
A

weak company culture breed no strong

employee allegiance to what the company
stands for or to operating the business in
well-defined ways. As consequence, weak

Why Corporate Cultures Matter to

the Strategy Execution Process
A

strong culture that encourages action,

behaviors, and work practices conducive to
good strategy execution adds significantly to
the power and effectiveness of a companys
strategy execution effort
There are 3 ways:
A culture that is well matched to the requirements of
the strategy execution effort focuses the attention of
employees on what is most important to this effort
Culture-induced peer pressure further induces
company personnel to do things in a manner that
aids the case of good strategy execution
A company culture that is consistent with the
requirements for good strategy execution can
energize employees, deepen their commitment to
execute the strategy flawlessly, and enhace worker

Healthy Cultures That Aid

Good Strategy Execution
High

performance culture

Pride in doing thing right

No-excuse accountability
Result oriented
Adaptive

Culture

As a companys strategy evolve, it is

a definite ally in the strategyimplementing, strategy-executing
process as compared to resistance to
change

Unhealthy Cultures That

Impede Good Strategy
Execution
Change

resistance culture
Politicized culture
Insular, Inwardly focused culture
Unethical and greed-driven
culture
Incomptible Subculture

Changing a Problem
Culture: The Role of
Leadership
When

strong is unhealthy or
otherwise out of sync with the
actions and behaviors needed to
execute the strategy successfully,
the culture must be changed as
rapidly as can be managed
The single most visible factor that
distinguished successful culturechange efforts from failed attempt
is competent leadership at the top

Steps to take in changing a

problem culture
Figure

12.2

Substantive Culture-Changing
Actions
Replacing the executive
Promoting individuals
Appointing outsiders
Screening all candidates

for new

position
Personnel attend culture-training
program
Designing compensation incentives
Revising policies and procedures

Simbolic Culture-Changing
Actions
Top

Executive take to lead by

example
Holding ceremonial events to single
out and honor people whose action
performance exemplify what is called
for in the new culture

LEADING THE STRATEGY

EXECUTION PROCESS

The strategy execution process must

be driven by mandates to get things
on the right track and show good
result and show good result

Staying on Top of How Well

Things Are Going
Management

by Walking Around (MBWA) is

one the techniques that effective leaders
use to stay informed about how well
strategy execution process is progressing

Putting Constructive Pressure on

Organizational Units to Execute the
Strategy Well and Achieve
Operating Excellence
Treating

employees as valued partners

Fostering an esprit the corps
Empowerment
Making champion out of the people who
spearhead new ideas
Stretch objective and clearly and
communicating an expectation
Using the tools of benchmarking best
practices, business process reengineering,
etc
Using the full range of motivational
techniques and compensation incentives

Leading the Process of Making

Corrective Adjustments
Success

in making corrective
action hinges on:
A Thorough analysis of the situation
The exercise of business judgment
Good implementation