Bài giảng Crafting & Executing Strategy - Ch 11: Corporate culture and leadership: keys to good strategy execution

CHAPTER 12CORPORATE CULTURE AND LEADERSHIP: KEYS TO GOOD STRATEGY EXECUTIONSTUDENT VERSIONINSTILLING A CORPORATE CULTURE CONDUCIVE TO GOOD STRATEGY EXECUTIONCorporate CultureIs the meshing of shared values, beliefs, business principles, and traditions that imbues a firm’s operating style, behavioral norms, ingrained attitudes, and work atmosphere.Is important because it influences the firm’s actions and approaches to conducting business.KEY FEATURES OF A FIRM’S CORPORATE CULTUREStrength of peer pressure to conform and observe normsActions and behaviors encouraged and rewardedTraditions and stories and “how we do things around here”How the firm treats its stakeholdersFeatures of a Corporate CultureValues, principles, and ethical standardsin actual useManagement practices and organizational policesAtmosphere and spirit embodied in the firm’s work climate How managers and employees interact and relate to one another12–3TRANSFORMING CORE VALUES AND ETHICAL STANDARDS INTO CULTURAL NORMSRecruit and hire applicants with values and ethics compatible to those of the firm.Incorporate the values statement and the code of ethics into orientation and training programs.Have senior executives frequently reiterate and stress the firm’s values and ethical principles.Use values statements and codes of ethics as benchmarks for the firm’s polices and practices.12–4TRANSFORMING CORE VALUES AND ETHICAL STANDARDS INTO CULTURAL NORMS (CONT’D)Use core values and ethical principles when evaluating each person’s job performance.Encourage all employees to help enforce the observance of core values and ethical standards.Periodically have ceremonial occasions to recognize individuals and groups who display the firm’s values and ethical principles.Institute strict ethics enforcement procedures.12–5PERPETUATING THE CULTUREScreening and selecting new employeesSystematic indoctrination of new membersVocal support by senior managersRewarding those who display cultural normsCeremonies honoring employeesTelling and retelling of the firm’s legendsPerpetuating the Culture12–6FORCES THAT CAUSE A FIRM’S CULTURE TO EVOLVENew challenges in the marketplaceMerger or acquisitionof another firmShifting internal conditionsCauses of Cultural ChangeDiversification into new businessesNew or revolutionary technologiesRapid growth of the firm12–7DEVELOPMENT OF A STRONG CULTURECommitment by the firm to ethical behaviorFounder or strong leader with strong valuesStrong CultureClosely aligning corporate culture with the requirements for proficient strategy execution merits the full attention of senior executives.12–8HEALTHY CULTURES THAT AID GOOD STRATEGY EXECUTIONGood Strategy ExecutionAdaptive CulturesHigh-Performance CulturesCommitment to achieving stretch objectives and accountabilityWillingness to accept change and take on challengesPerformance12–9UNHEALTHY CULTURES THAT IMPEDE GOOD STRATEGY EXECUTIONChange-resistant culturesIncompatible SubculturesPoliticizedculturesUnhealthy CulturesInsular, inwardly focused culturesUnethical and greed-driven culturesPoor Strategy ExecutionPoor Performance12–10MAKING A COMPELLING CASE FOR CULTURE CHANGESelling the ChangeExplain why and how certain behavioral norms and work practices are obstacles to good execution of strategic initiatives.Explain how new behaviors and work practices will be produce better results.Cite reasons why the current strategy has to be modified, if the need for cultural change is due to a change in strategy.12–11SYMBOLIC CULTURE-CHANGING ACTIONSTop executive and upper management behaviorsCeremonial events to honor exemplary employeesPhysical symbols that represent the new cultureChanging the culture of an organization12–12HOW LONG DOES IT TAKE TO CHANGE A PROBLEM CULTURE?Changing a problem culture is never a short-term exercise.A sustained and persistent effort to reinforce the culture at every opportunity through word and deed is required.It takes time for a new culture to emerge and prevail; it takes even longer for it to become deeply embedded.Fixing a problem culture and instilling a new set of attitudes and behaviors can take two to five years.12–13LEADING THE STRATEGY EXECUTION PROCESSLeading Strategy Execution Requires:Staying on top of what is happening and closely monitoring progress.Putting constructive pressure on the organization to execute the strategy well and achieve operating excellence.Initiating corrective actions to improve strategy execution and achieve the targeted performance results.12–14STAYING ON TOP OF HOW THINGS ARE GOINGManagement by Walking Around (MBWA)Is used by leaders to stay informed about how well the strategy execution process is progressing.Involves spending time with people at company facilities, asking questions, listening to their opinions and concerns, and gathering firsthand information about how well aspects of the strategy execution process are going.12–15LEADING THE PROCESS OF MAKING CORRECTIVE ADJUSTMENTS A thorough analysis of the situationGood business judgment in deciding what actions to takeGood implementation of the corrective actionsMaking corrective actionssuccessfully requires:12–16