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