Leadership and Corporate Culture

1. Leadership and Corporate Culture

2. What is Leadership?

3. 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

4. Why is the Leader Important to An Organization?

5. 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

6. 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

7. What are the Leadership Traits of Highly Productive Organizations?

8. 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

9. Management Practices That Work (Nohria, et al., HBR, 2003) • Primary • Strategy, Execution, Culture, Structure • Secondary (Two of Four) • Talent, Leadership, Innovation, Mergers and Partnerships

10. Leadership Development • Leadership skills • Management skills • Communication skills • Problem identification and solving skills • Strategic development and execution skills

11. Leadership Strategies for Productivity Improvement?

12. 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

13. Leadership Commitment(Donald N. Sull, HBR, June 2003) • Strategic frame • Resources • Processes • Relationships • Values

14. What Is Corporate Culture?

15. 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

16. Purpose of Culture • Organizational socialization • Formal • Informal • Behavioral conformity • Values and beliefs • Behaviors

17. Definition of Culture • Observable • Artifacts and behaviors: symbols, awards, stories, heroes, slogans, ceremonies • Not Observable • Values and beliefs • Underlying assumptions

18. 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

19. “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

20. What Are the Foundations of A Productivity-Focused Culture?

21. 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

22. 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

23. Strategies to Create A Culture for Productivity Improvement?

24. 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

25. 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

26. 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

27. Making Radical Change • Anticipating, • exploiting, and • creating “breakpoints” Paul Strebel, Breakpoints

28. 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

29. Strategies to Help Employees Embrace A PI Initiative? • Senior Managers • Middle Managers • Front-Line Staff

30. 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

31. 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

32. 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

33. 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