Corporate Culture and Leadership Pertemuan 26

2. Corporate Culture and LeadershipPertemuan 26 Matakuliah : J0114/Manajemen Pemasaran Tahun : 2008

3. Learning Outcome Students are able to describe steps required to develop and expand corporate culture for the success of experiential marketing

4. Material Outline: • Leading the effort to establish a strategy-supportive culture • Keeping the organization responsive and innovative • Exercising ethics leadership

5. Leading The Effort to Establish A Strategy-Supportive Culture • Managers with responsibility for crafting and executing strategy have to be out front in establishing a strategy-supportive organizational climate and culture • Conservative incrementalism seldom leads to major cultural adaptations • The single most visible factor that distinguishes successful culture-change efforts from failed attempts is competent leadership at the top

6. Leading The Effort to Establish A Strategy-Supportive Culture • A “stakeholders are king” philosophy that links the need for culture change to the need to serve the long-term best interests • Challenging the status quo with very basic questions: • Are we giving customers what they really need and want? • Why are not we taking more business away from rivals? • Why do our rivals have lower costs than we do? • How can we drive costs out of the business and be more competitive on price?

7. Leading The Effort to Establish A Strategy-Supportive Culture • Creating events where everyone in management is forced to listen to angry customers, dissatisfied strategic allies, alienated employees • Making a compelling case for why the company’s new direction and a different cultural atmosphere are in the organization’s best interest • Initiating substantive and forceful actions to flush out the undesirable cultural traits and replace them with the desired new ones. • Recognizing and generously rewarding those who exhibit new cultural norms

8. Keeping the organization responsive and innovative • Generating fresh ideas, identifying new opportunities and developing products and services are not solely managerial tasks. • Empowering champions: • Individuals and groups have to encouraged to be creative, hold informal brainstroming sessions, let their imaginations fly in all directions • Everybody must be expected to contribute ideas • People with maverick ideas or out of the ordinary proposals have to be tolerated and given room to operate

9. Keeping the organization responsive and innovative • Managers have to induce and promote lots of “tries” and be willing to tolerate mistakes and failures • Strategy managers should be willing to use all kinds of ad hoc organizational forms to support ideas and experimentation • Strategy managers have to see that the rewards for successful champions are large and visible • Leading the process of developing new capabilities: • Changing customer preferences and competitive conditions • Managing human skills, knowledge bases, intellect

10. Exercising ethics leadership • Three things to do: • Conduct an annual audit of each manager’s efforts to uphold ethical standards • Conduct an annual formal reports on the actions taken by managers to remedy deficient conduct. • Require all employees to sign a statement annually certifying that they have complied with the company’s code of ethics.

11. Exercising ethics leadership • Strong enforcement of a corporate code of ethics by itself is not sufficient to make a company a good corporate citizen. • Forms of corporate citizenship and socially responsible decision making can be demonstrated in some ways such as: • Operating a safe workplace • Taking special pains to protect the environment, • Taking an active role in community affaires, • Interacting with community officials

12. Conclusions: • Building a strategy-supportive corporate culture is important to successful strategy execution • A work climate and organizational esprit de corps that thrive on meeting performance targets and being part of a winning effort. • An organization’s culture emerges from why and how it does things the way it does, the values and beliefs that senior managers espouse, the ethical standards expected of organization members, the tone and philosophy underlying key policies and the traditions the organization maintains.