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Leadership and Corporate Culture. What is Leadership?. Why is the Leader Important to An Organization?. Levels of Leadership (Jim Collins, HBR, Jan. 2001). Highly capable individual Contributing team member Competent manager
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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 Development • Leadership skills • Management skills • Communication skills • Problem identification and solving skills • Strategic development and execution skills
Leadership Commitment(Donald N. Sull, HBR, June 2003) • Strategic frame • Resources • Processes • Relationships • Values
Definition of Culture • Observable • Artifacts and behaviors: symbols, awards, stories, heroes, slogans, ceremonies • Not Observable • Values and beliefs • Underlying assumptions
Purpose of Culture • Organizational socialization • Formal • Informal • Behavioral conformity • Values and beliefs • Behaviors
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
Strategies to Create A Culture for Productivity Improvement?
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 Change Initiative? • Senior Managers • Middle Managers • Front-Line Staff
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