organizational culture and leaders

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  • 1. The organizational culture andleadersAn invisible force in the organisationWarsaw, May 5th 2013
  • 2. ! Founder : Thomas J. Watson (1914), Thomas J. Watson Jr. T. J. Watson was a salesman and a marketer, who le< NCR to set up IBM. He felt himself as a entrepreneur and had never built a pure engineering company. ! Successors: T. Learson, F. Cary, J. Opel, J. Akers ! CharismaPc leader: Louis Gerstner (1993) Gloried markePng expert, who already had been successful in American Express, was accepted by the whole organizaPon of IBM. He did not change a culture, but reinvented it, consequently IBM regained its market posiPon.
  • 3. ! Michael Woodford history ! Woodford started working in Olympus in 1981 (KeyMed) ! On September 30th, 2011 he became CEO (rst not Japanese CEO in the history of Olympus) ! On October 14th, 2011 he was called o from CEO a
  • 4. ! Jorma Jaakko Ollila (1992 - 2006): CEO, who is a founder of Nokia Mobile ! Successor: Olli-Pekka Kallasvuo (2006) ! Current CEO: Stephen Elop (2010) Is it going to be an economic success? Are they going to regain 90% of the company value, which Nokia has lost recently?
  • 5. ! Founders: Steve Jobs and Steve Wozniak (1976) Engineers, who set up a company with desire to develop educaPonal products for children, user-friendly and funny. ! Successor: John Sculley (1986), M. Spindler, G. Amelio ! CharismaPc leader: Steve Jobs (1996) Jobs return recreated space for engineers , who were neglected by Sculley (he moved to Apple from Pepsico Co.). Jobs linked Apples original assumpPons with a markePng knowledge, that might have been missing previously. He created a company with the highest market value in the world.
  • 6. What do they have in common? ! InternaPonal corporaPons. ! Engineering companies, parPcipants of the biggest infrastructural projects. ! In 2000 each of them had a division of mobile telephony, bringing prots at the whole organizaPons scale. To date, these divisions have been either sold or closed by each of them. Coincidence?
  • 7. Is there one explanaPon to ALL presented cases? Have you ever encountered the situaPon, that project with the best BUSINESS CASE, led by an outstanding manager has collapsed? Why the same manager is successful in one company, while in other is considered to be a loser (like Sculley from Apple, who was classied by Conde Nast on 14th place in the ranking of the worst CEO in the USA) Maybe the power of the organiza,onal culture is the answer to these quesPons?
  • 8. What I would like to speak about today?! Concept of organizaPonal culture according to Prof. Schein. ! Leaders in culture creaPng, forming, developing and changing. ! Culture levels and its signicance to members of the organizaPon. ! How can you assess organizaPonal culture? ! OrganizaPonal change. How can you do it more eecPvely? ! Q & A
  • 9. QuestionWhat is your first thought when someonespeaks about organizational culture?
  • 10. What is IT?! Many conrm that IT (culture) exists, but each of them perceives IT completely dierent. ! Topic of academic discussion. ! Common used words referring to culture: ! noPceable similar behaviour among people ! norms exisPng in the organizaPon ! espoused values ! groups philosophy ! rules of the game ! climate ! skills and experience ! thinking habits, theorePcal models, paradigms ! common meaning ! metaphors and integraPng symbols ! formal rituals and ceremonies
  • 11. ArtefactsWhat you see and what you dont see at the first glance.
  • 12. ArtefactsNoticeable level of culture! What a new member sees, hears and feels when he or she enters the organizaPon. ! Include an oces architecture, used devices and a technology, a language, a creaPon, a style of dressing, rituals and ceremonies. ! OrganizaPonal structures and processes, moPvaPon systems, way of communicaPon, taking decisions and escalaPon of problems. ! Easy to observe, but dicult to understand why all these are, as they are.
  • 13. Company beliefs and valuesWhat you see and what you dont see at the first glance.
  • 14. Espoused valuesCompanys beliefs and values! Companys mission and vision. ! Strategy, targets, philosophy. ! Managers explanaPon. ! Internal rules, procedures, audit recommendaPon. ! Business ethics code. ! May be congruent or not with the other members behaviour or other artefacts.
  • 15. Tacit underlying assumptionsWhat you see and what you dont see at the first glance.
  • 16. Tacit underlying assumptions! O
  • 17. Organizational cultureFormal definition proposed by ScheinOrganiza,onal culture is a model of common tacit underlying assumpPons, which a group learned during solving problems of ! external adaptaPon and ! Internal integraPon, which was enough eecPve to be admimed as correct (proper), for that reason are told over to new members as an appropriate way of percepPon, thinking and feeling with regard to these problems.
  • 18. Worth reflecting! About your family, ethnic and naPonal group, where you have been brought up, about educaPonal path to understand the main forces, which inuenced your values and way of working. ! What groups, clubs and associaPons do you formally and informally belong to, inuence your current values and norms? ! Think about your work, its history and tradiPon and how they relate to your values? Considering about organizational culture, think firstly about your personality
  • 19. Culture and leadershipTwo sides of the coin! Leaders create culture, when they create groups and organizaPons, starPng from the rst founder, who executes his own idea in his own imposed way. ! Culture once created, will dene criteria of leadership. ! When organizaPonal structure becomes dysfuncPonal, primary leaders task is to nd out not working elements of exisPng culture and change them.
  • 20. CultureHierarchicalAssump,ons ExecuPve culture (execuPve) Finance is rst focus; feeling of loneliness during decision taking; good organizaPon doesnt need so many people; company view through reports lenses; run company by procedures, which are considered as basic tools. Engineering/project culture (manager) Ideal world is an elegant machine and perfect processes, which dont need people; people are problems, because they make mistakes; work is puzzle solving. Working culture (operator) We are the crucial companys assets; success depends on our knowledge, skills and engagement; regardless of how perfect is our company, we face unexpected situaPons; teamwork; we depend on managers, who allocate resources, trainings and machines.
  • 21. CultureOccupational! While organizaPon grows, funcPonal departments (nance, lawyers, marketers, salesmen, technology) create their own cultures (creaPng occupaPonal cultures). ! Dierences in occupaPonal cultures are strengthen by silos organizaPon. ! Dierences in occupaPonal cultures are most visiable in projects teams where members belong to dierent departments. PresidentVP Sales VP Marketing VP FinanceVPAdministrationVP LegalDirectors Directors Directors Directors DirectorsManagers Managers Managers Managers ManagersStaff Staff Staff Staff Staff
  • 22. Organizational cultureAn invisible force steering organizations! OrganizaPonal culture is neither good nor bad. It is neutral. ! Culture can not be measured by survey, in percentage or in numbers. ! There are neither stronger nor weaker organizaPonal culture. ! The deeper organizaPonal change, the deeper cultural assumpPons (less conscious) show their power. ! At course of developing organizaPon some assumpPons become naturally dysfuncPonal. It is leaders task to correct them.
  • 23. Organizational cultureSupport or brake during organizational change?! Companies take decisions mostly on hard data. ! O
  • 24. Organizational changePsychologic and sociological processes! Stage 1 Unfrozen: CreaPng moPvaPon to change ! Awareness of necessity of change ! CreaPng survival anxiety or guilt" ! CreaPng psychological safety during