1. Leadership and Culture
Session 11 – Part 1
Leadership and Culture

2. Learning Objectives
Explain the relevance of vision and performance in helping leaders clarify their strategic intent
Define and illustrate the value of passion and selection/development of new leaders as means to shape their organization’s culture
Define and explain what is meant by organizational culture, and how it is created, influenced, and changed
Explain two roles organizational leaders have in an organizational culture
Describe ways leaders influence organizational culture

3. Strategic Leadership: Embracing Change
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

4. Clarifying Strategic Intent
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

5. “I have vision and the rest of the west wears bifocals”
Butch Cassidy circa 1870

6. “By the end of this decade I commit this nation to putting a man on the moon”
John F. Kennedy 1961

7. “By the turn of the century there will be more computers than televisions in the U.S.”
????

8. Recruiting and Developing Talented Operational Leadership
New leaders will each be global managers, change agents, strategists, motivators, strategic decision makers, innovators, and collaborators if the business is to survive and prosper
Today’s need for fluid, learning organizations capable of rapid response, sharing, and cross-cultural synergy place incredible demands on young managers to bring important competencies to the organization

9. Organizational Culture
Organizational culture is the set of important assumptions (often unstated) that members of an organization share in common
Every organization has its own culture
Assumptions become shared assumptions through internalization among an organization’s individual members

10. Characteristics Describing Culture
Individual autonomy
Structure
Support
Identification
Performance reward
Conflict tolerance
Risk tolerance

11. Origins of Culture
History
Environment
Staffing
Socialization

12. Culture and Competitive Advantage
Culture Must:
Generate Specific Value for the Firm
Be Rare
Not easily imitable

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
Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about

14. Shaping Organizational Culture
Emphasize key themes or dominant values
Encourage dissemination of stories and legends about core values
Institutionalize practices that systematically reinforce desired beliefs and values
Adapt some very common themes in their own unique ways
Manage organizational culture in a global organization:
Social norms
Values and attitudes
Religion
Education

15. Primary Embedding Mechanisms
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

16. Secondary Embedding Mechanisms
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

17. Shared Values (culture)
McKinsey 7-S Framework
Shared Values (culture)
Strategy
Staff
Systems
Style
Structure
Skills
(management)
(leadership)

18. 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.”

19. Ethics
Ethical standards are a person’s basis for differentiating right from wrong
The culture of an organization, and particularly the link between the leader and the culture’s very nature, is inextricably tied to the ethical standards of behavior, actions, decisions, and norms that leader personifies

20. Manage the Strategy-Culture Relationship
Link to mission
Maximize synergy
Manage around the culture
Reformulate strategy or culture

21. Remember: Culture Eats Strategy for Breakfast!

22. Culture, Structure, Leadership and Reward Systems should be Strategy Based

23. celebrate, point out, document, ritualize, measure and reward
celebrate, point out, document, ritualize, measure and reward behaviors/skills/actions that achieve efficiency, innovation, product quality or customer responsiveness.