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THE LEADERSHIP ROLE IN CULTURE BUILDING, EMBEDDING, and EVOLVING

Ningky MunirSekolah Tinggi Manajemen PPMJune 2009

NKY - STM PPM 2

CULTURE BEGINNING

• Cultures basically spring from three sources:

1. The beliefs, values, and assumptions of founders of organizations;

2. The learning experiences of group members as their organization evolves;

3. The new beliefs, values, and assumptions brought in by new members and leaders

NKY - STM PPM 3

FOUNDERS ARE THE MOST IMPORTANT

• They choose the basic mission and the environmental context in which the new group will operate;

• They choose the group members and bias the original responses that the group makes in its efforts to succeed in its environment and to integrate itself

NKY - STM PPM 4

MICROSOFT VS APPLE

Values: how do we want to act toward achieving our vision?

Bill Gates is a workaholic who still often works 18 hours a day. His terminal values for Microsoft are:•Excellence,•Innovation, and •High Quality

Steve Jobs is an aggressive, demanding, temperamental person. His values for Apple are:•Aggressiveness,•Innovation, and •Performance

NKY - STM PPM 5

THE PROCESS OF CULTURE FORMATION

1. Founder(s) have an idea of a new enterprise;

2. Founder(s) bring in one/more other people and creates a core group that shares a common goal and vision with the founder(s);

3. The founding group begins to act in concert;4. Others are brought into the organization, and a

common history begins to be built

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Features of the CorporateCulture at Microsoft

• Long work hours of programmers

• Emotional peaks and valleys inencountering and overcoming coding problems

• Exhilaration of completing a complex program on schedule

• Satisfaction of working on cutting-edge projects

• Rewards of being part of a team responsiblefor a popular new software program

• Tradition of competing aggressively

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PRIMARY EMBEDDING MECHANISMS

1) What leaders pay attention to, measure, and control on regular basis;

2) How leaders react to critical incidents and organizational crises;

3) How leaders allocate resources;4) Deliberate role modeling, teaching, and coaching;5) How leaders allocate rewards and status;6) How leaders recruit, select,

promote and excommunicate.

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SECONDARY ARTICULATION AND REINFORCEMENT MECHANISMS

1. Organizational design and structure;2. Organizational systems and procedure;3. Rites and rituals of the organization;4. Design of physical space, facades, and buildings;

5. Stories about important events and people

6. Formal statements of organizational philosophy, creeds, and charters

World’s Best Practice

Guess :Which one is the fastest growing market now in the world ?

A) Romanian

B) Vietnam

C) Indonesia

D) Columbia

Guess :Which one is the fastest growing market now in the world ?

Columbia – from a center for drugs trafficking and ‘mafia heaven’ to

a reviving economic countries.

How did they do that ?

World’s Best Practice

Meet the people who shape the nation….

World’s Best Practice

Fernando Arbelaez, 32Vice Minister of Agriculture

Manuella Jarmillo, 28 Investment Manager,Private Equity Firm

Federico Jimeno, 26Government Investor Relation

Arnoldo Casa, 27Chief Economist - Bank

Nicolas Uribe, 30Congress Member

Sergio Upegul, 30Senior PartnerStock Firm

Christina Plazas, 29Member of City CouncilBogota

Nicolas Santos, 28Restaurant Chains