Culture and Leadership in

Implementing Strategy

BUILD A STRATEGY-SUPPORTIVE
CORPORATE CULTURE

 What Makes Up a Company’s Culture?
 Where Does Corporate Culture Come
From?
 How Is a Company’s Culture Reinforced?
 What Forces and Factors Cause Culture
to Evolve?
Culture and Strategy Execution:
Ally or Obstacle?
 Culture can contribute to -- or hinder
-- successful strategy execution
 Requirements for successful strategy
execution may -- or may not -- be
compatible with culture
 A close match between culture
and strategy promotes effective
strategy execution
Why Culture Matters:
 Benefits of a Good Culture-Strategy Fit
 Shape mood and temperament of the work force
 Provide standards, values, informal rules and peer
pressures
 Strengthen employee identification with the
company, its performance targets, and strategy
 Stimulates people
 Optimal condition: A work environment that
 Promotes can do attitudes
 Accepts change
 Breeds needed capabilities

Types of Corporate Cultures
Strong vs. Weak Cultures
Unhealthy Cultures
Adaptive Cultures
Strong vs. Weak Cultures
 Characteristics of a Strong Culture
 How does a Culture become Strong?
 Leader who establishes values
 A deep, abiding commitment to espoused
values and business philosophy
 Genuine concern for well-being of
Customers, Employees, Shareholders
 Characteristics of a Weak Culture


Unhealthy Cultures

 Characteristics of Unhealthy or Low
performance Cultures
 Politicized internal environment
 Hostility to change
 Promotion of managers more concerned
about process and details than results
 Aversion to look outside for superior
practices




Adaptive Cultures
 Introduction of new strategies to achieve superior
performance
 Strategic agility and fast response to new
conditions
 Risk-taking, experimentation, and innovation to
satisfy stakeholders
 Proactive approaches to implement workable
solutions
 Entrepreneurship encouraged and rewarded
 Top managers exhibit genuine concern for
customers, employees, shareholders, suppliers

Diagnose which facets of present culture are strategy-
supportive and which are not

Clearly define desired new behaviors and specify key
features of “new” culture

Talk openly about why aspects of present culture need to
be changed

Follow with swift, visible actions to modify culture -
include both substantive and symbolic actions



Creating a Strong Fit
Between Strategy and Culture

 Value Statements/Codes of Ethics
 Training programs
 Applicant screening
 Communication
 Management involvement and oversight
 Strong endorsement by CEO
 Word-of-mouth
Instilling Values and Ethics
in the Culture
Strategic Leadership

 What Roles may a Strategic Leader
take?
Strategic Leadership: Leadership
Roles of the Strategy Implementer
1. Stay on top of what’s happening
2. Put constructive pressure on organization to
achieve good results
3. Keep organization focused on operating excellence
4. Lead development of stronger core competencies
and capabilities
5. Exercise ethical leadership and social responsibility
6. Take corrective actions to improve overall strategic
performance
Transformational Leadership
“The Leadership Challenge” Practices
Model
the
Way
Inspire a
Shared
Vision
Challenge
The
Process
Enable
Others
To Act
Encourage
The
Heart
Idealized
Influence
Individualized
Consideration
Inspirational
Motivation
Intellectual
Stimulation
Transformational Leadership