Download (Organizational) (leadership)

Session 20
Leadership and Culture
McGraw-Hill/Irwin
Strategic Management, 10/e
Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
12-2
Learning Objectives
1. Explain the relevance of vision and performance in
helping leaders clarify their strategic intent
2. Define and illustrate the value of passion and
selection/development of new leaders as means to shape
their organization’s culture
3. Define and explain what is meant by organizational
culture, and how it is created, influenced, and changed
4. Explain two roles organizational leaders have in an
organizational culture
5. Describe ways leaders influence organizational culture
Strategic Leadership:
Embracing Change
•
12-3
The leadership challenge is to galvanize
commitment among people within an organization
as well as stakeholders outside the organization to
embrace change and implement strategies intended
to position the organization to succeed in a vastly
different future
12-4
Clarifying Strategic Intent
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Leaders help their company embrace change by
charting strategic intent—a clear sense of where
they want to lead the company and what results
they expect to achieve
Leader’s vision—an articulation of a simple
criterion or characterization of what the leader sees
the company must become to establish and sustain
global leadership
12-5
“I have vision and the rest
of the west wears
bifocals”
Butch Cassidy circa 1870
12-6
“By the end of this decade I
commit this nation to
putting a man on the moon”
John F. Kennedy 1961
12-7
th
20
“By the turn of the
century
there will be more computers
than televisions in the U.S.”
????
Recruiting and Developing Talented
Operational Leadership
•
The New Leader: global managers, change
agents, strategists, motivators, strategic
decision makers, innovators, and
collaborators if the business is to survive and
prosper
12-8
12-9
Organizational Culture
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Organizational culture is the set of important
assumptions (often unstated) that members of an
organization share in common
Every organization has its own culture: can be
functional or dysfunctional.
Assumptions become shared assumptions through
internalization among an organization’s individual
members
12-10
Attributes of an Org’s Culture
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•
•
•
•
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Degree of Individual autonomy
Organizational Structure: groups/arranges workers
Level of Warmth/ Personal Support
Willingness of Employees to Identify as Member
Performance reward: Meritocracy or Not?
Conflict tolerance: Reward Good Tries or Just
Performance
• Risk tolerance: Ready, fire, aim; Do something even
if it’s wrong. At least then we’ll know.
12-11
Origins of Culture
• History
• Environment
• Staffing
• Socialization
Culture and Competitive
Advantage
Culture Must:
Generate Specific Value for the Firm
Be Rare
Not easily imitable
12-12
12-13
Shaping Organizational Culture
•
•
Passion, in a leadership sense, is a highly
motivated sense of commitment to what you do
and want to do
Leaders also use reward systems, symbols, and
structure among other means to shape the
organization’s culture
12-14
Primary Embedding Mechanisms
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•
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What leaders pay attention to, measure and control
Leaders reactions to critical incidents/organzational crises
Mentoring - Deliberate role modeling, teaching, coaching
Criteria for the allocation of rewards and status
Criteria for recruitment, selection, promotion, retirement
and excommunication
12-15
Secondary Embedding Mechanisms
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•
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Organizational design and structure
Organizational systems and procedures
Design of physical space, facades, buildings
Stories about the important events and people
Formal statements of organizational philosophy,
creeds, charters
12-16
McKinsey 7-S Framework
Strategy
Structure
Systems
Shared
Values
(culture)
Skills
Style
(Organizational)
(leadership)
Staff
(Human Capital)
12-17
The Role of the Organizational Leader
•
The leader is the standard bearer, the
personification, the ongoing embodiment of the
culture, or the new example of what it should
become
•
How the leader behaves and emphasizes those
aspects of being a leader become what all the
organization sees are “the important things to
do and value.”
Manage the Strategy-Culture
Relationship
•
Link to mission
•
Maximize synergy
•
Manage around the culture
•
Reformulate strategy or culture
12-18
12-19
Remember: Culture
Eats Strategy for
Breakfast!
12-20
Culture, Structure,
Leadership and Reward
Systems should be
Strategy Based
12-21
celebrate, point out, document,
ritualize, measure and reward
behaviors/skills/actions that
achieve efficiency, innovation,
product quality or
customer responsiveness.