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
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, 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 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
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

Promote cooperation and information sharing
• Teamwork
• Cross-functional teams
• Knowledge and information sharing systems