10 Culture Leadership Strategy

8/6/2019 10 Culture Leadership Strategy

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Culture & Leadership

Strategy

By

Pramodh GeorgePreethy Purushothaman

Preethy Sara John


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STRATEGIC LEADERSHIP


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Leadership Leaders

o People who can influence the behaviors of

others without having to rely on forceo People who are accepted as leaders by others

What leaders actually doo Using non-coercive influence to shape the

groups or organizations goalso Motivating others behavior toward goalso Helping to define organizational culture


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Leadership Power and Leadership

o Legitimate poweris granted through the organizational

hierarchyo Reward poweris the power to give or withhold rewardso Coercive poweris the capability to force compliance by

means of psychological, emotional, or physical threato Referent poweris the personal power that accrues to

someone based on identification, imitation, loyalty, or

charismao Expert poweris derived from the possession of information

or expertise


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Leadership Using Power

o Legitimate request Compliance by a subordinate with a managers request because

the organization has given the manager the right to make therequest

o Instrumental compliance A subordinate complies with a managers request to get the

rewards that the manager controlso Coercion

Threatening to fire, punish, or reprimandsubordinates if they do not do something

o Rational persuasion Convincing subordinates that compliance

is in their own best interest


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Leadership Using Power (contd)

o Personal identification

Using the referent power of a superiors desiredbehaviors to shape the behavior of a subordinate

o Inspirational appeal Influencing a subordinates behavior through an

appeal to a set of higher ideals or values (e.g.,

loyalty)o Information distortion

Withholding or distorting information(which may create an unethical situation)to influence subordinates behavior


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Leadership styles

Authoritative

This leader is given the power to make decisions alone, having totalauthority. This leadership style includes close supervision whenpeople perform certain tasks. Participative

This style involves the leader including one or more people in the

decision making process (determining what to do and how to do it).However, the leader maintains the final decision making authority. Free-rein

In this style, the leader allows the people to make their owndecisions. However, the leader is still responsible for the decisionsthat are made. This style allows greater freedom and responsibility.

You need competent people around you.


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StrategicLeadership and theStrategicManagementProcess

Effective StrategicLeadership

Strategic IntentStrategic Mission

SuccessfulStrategic Actions

Formulation ofStrategies

Implementationof Strategies

StrategicCompetitiveness

Above-average Returns

Shapes theFormulation of

and

Influence

YieldsYields


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Strategic Leadership

Requires the managerial ability to:o Anticipate and envisiono Maintain flexibilityo Empower others to create strategic change as

necessary

Strategic leadership is:o Multi-functional work that involves working

through otherso Consideration of the entire enterprise rather

than just a sub-unito A managerial frame of reference


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Strategic Leadership (contd) Effective strategic leaders:

o Manage the firms operations effectively

o Sustain a high performance over timeo Make better decisions than their competitorso Make candid, courageous, pragmatic

decisionso

Understand how their decisions affect theinternal systems in use by the firmo Solicit feedback from peers, superiors and

employees about their decisions and visions


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Visionary

Chief

Entrepreneur &Strategist CapabilitiesBuilder

Resource Acquirer &Allocator

CultureBuilder

ChiefAdministrator &

StrategyImplementer

ProcessIntegrator

Coach

CrisisSolver

Taskmaster

Spokesperson

Negotiator

Motivator

Arbitrator

ConsensusBuilder

PolicymakerPolicy

Enforcer

Mentor

HeadCheerleader

Numerous Roles of StrategicLeaders


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Chief

Strategy Implementer1. Stay on top of whats happening2. Put constructive pressure on

company to achieve good results3. Lead development of stronger corecompetencies and competitive capabilities4. Exercise ethics leadership and lead socialresponsibility initiatives

5. Take corrective actions to improve overall strategicperformance


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Role #1: Stay on Top of Whats Happening

Develop a broad network of formaland informal sources of information

Talk with many people at all levels Be an avid practitioner of MBWAo Observe situation firsthand

Monitor operating results regularly Get feedback from customers

Watch competitive reactions of rivals


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Role #2: Put Constructive Pressure on

Company to Achieve Good Results

Successful leaders spend timeo Mobilizing organizational energy behind

Good strategy execution and

Operating excellenceo Nurturing a results-oriented work climateo Promoting certain enabling cultural drivers

Strong sense of involvement on part of company personnel Emphasis on individual initiative and creativity Respect for contributions of individuals and groups

Pride in doing things right


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Role #3: Promote Stronger CoreCompetencies and Capabilities

Top management intervention isrequired to establish better or newo Resource strengths and competencieso Competitive capabilities

Senior managers must lead the effort becauseo Competencies reside in combined

efforts of different work groups anddepartments, thus requiringcross-functional collaboration

o Stronger competencies and capabilitiescan lead to a competitive edge over rivals


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Role #4: Display Ethics Leadership andLead Social Responsibility Initiatives

Set an excellent example ino Displaying ethical behaviorso Demonstrating character and

personal integrity in actions and decisions

Declare support of companys ethics codeand expect all employees to conductthemselves in an ethical fashion

Encourage compliance and establish tough

consequences for unethical behavior

Our ethicscodeis . . .


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Roles of a Manager inEnforcing Ethical Behavior

Set an excellent ethical example Provide training to employees

about what is ethical and what isnt Declare unequivocal support of ethics code Act as final arbiter on hard calls

o Remove people from key positionsif found guilty of a violation

o Reprimand people lax in monitoring ethical compliance


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Structuring an Ethics Complianceand Enforcement Process

Form an ethics committee to give guidance onethics matters

Appoint an ethics officer to head complianceeffort

Establish an ethics hotline/Web site employeescan use too Anonymously report a possible violationo Get confidential advice on a

troubling ethics-related situation Conduct an annual ethics auditto measure extent ofo Ethical behaviorando Identify problem areas


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Key Approaches toEnforcing Ethical Behavior

Have mandatory ethics trainings for employees Openly encourage employees to

report possible infractions viao Anonymous calls to a hotline or

o Posting to a special company Web site Conduct an annual audit to assess

o Each managers efforts to uphold ethical standardso Actions taken by managers to remedy deficient conduct

Require all employees to sign a statement annually

certifying they have complied with the ethics code Make sure ethical violations carry appropriate

punishment, including dismissal for egregiousviolations


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Role #5: Lead the Process ofMaking Corrective Adjustments

Requires decidingo When adjustments are neededo Whatadjustments to make

Involveso

Adjusting long-term direction, objectives, andstrategy on an as-needed basis in response tounfolding events and changing circumstances

o Promoting fresh initiatives to bring internalactivities and behavior into better alignment with

strategyo Making changes to pick up the pace when results

fall short of performance targets


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Exercise of EffectiveStrategic Leadership


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Key Strategic Leadership Actions:Determining Strategic Direction

Determining strategic direction involvesdeveloping a long-term vision of thefirms strategic intento Five to ten years into the futureo Philosophy with goalso The image and character the firm seeks

Ideal long-term vision has two parts:o Core ideologyo Envisioned future

S


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Key Strategic Leadership Actions:Exploiting and Maintaining Core

Competencies

Core competencieso Resources and capabilities of a firm that

serve as a source of competitive advantage

over its rivalso Leadership must verify that the firms

competencies are emphasized in strategyimplementation efforts

o

Firms must continuously develop or evenchange their core competencies to stayahead of competitors


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Seven Leadership

Competencies Emotional Intelligence

Integrity

Drive

Ability to perceive,express, regulateemotions in self and

others Refers to the truthfulness

and ability to translatewords into deeds

Inner motivation topursue goals.


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Seven Competencies Leadership motivation

Self-confidence

Intelligence

Knowledge of thebusiness

Socialized power used toaccomplish goals.

Belief in ones own skills

and abilities. Cognitive ability to

process large amounts ofinformation.

Understanding of thecompanys environmentto make intuitivedecisions.


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Corporate Culture

Corporate Culture is the collection ofbeliefs , expectations and values learned

and shared by a corporations membersand transmitted from one generation ofemployees to another.


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Attributes Integration Intensity


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Impact of Corporate Culture ABB (Asea Brown Boveri AG) MEI(Matsushita Electrical Industrial

Corporation) ABBOTT LAB.(Sedan & SUV) GM (Delta Small Car Program)

P&G -Gillette


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Managing Different Cultures Integration (Renault & Nissan) Assimilation(Maytag & Admiral)

Separation(Boeing & McDonnell-Douglas)

Deculturisation(AT&T -NCR)

Daimler Chrysler-Mitsubishi Tricon Global Restaurant-Pepsico


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Strategy CultureCompatibility

Key Strategic Leadership Actions:


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Key Strategic Leadership Actions:Sustaining an Organizational Culture(contd)

Changing a firms organizational cultureis more difficult than maintaining ito Effective strategic leaders recognize when

change in culture is needed Shaping and reinforcing culture requires:

o Effective communicationo Problem solving skillso Selection of the right peopleo Effective performance appraisalso Appropriate reward systems


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Key Strategic Leadership Actions:Emphasizing Ethical Practices

Effectiveness of processes used toimplement the firms strategies increases

when based on ethical practices Ethical practices create social capitaland goodwill for the firm


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Conclusion Strategic Leadership should be utilized to have a

positive impact to the Organization and improves its

corporate culture.


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References Concepts in Strategic Management &

Business Policy, Thomas L. Weelen &

J.David Hunger (12th Edition)


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Thank You !

10 Culture Leadership Strategy

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