Stakeholders, Values,

Culture
And Mission Statement

© PROF KUAH 2020

STRATEGIC ANALYSIS
MODEL
External Internal
appraisal appraisal
BASIC DESIGN SCHOOL MODEL
Threats & Strengths &
opportunities weaknesses
in environment of organization
Key success Distinctive
factors competences
Creation
of
Soc strategy
i erial
resp al Manag
ons
ibili values
ty

Evaluation
and choice
of strategy

Implementation
of strategy
© PROF KUAH 2020
 MBA
CORPORATE Stakeholders

STRATEGY
© PROF KUAH 2020
TYPES OF STAKEHOLDER
shareholders profit to distribute
managers growth & prestige
(profit only a contri.
factor)
workers pay & conditions
customers product quality
suppliers payment & continuity
local community jobs, good citizen

© PROF KUAH 2020

POWER OF STAKEHOLDER
Managers Government
formal and informal
regulations, contracts,
powers, time in job,
company culture, can permissions sought
hire and fire Investors
Employees Significant
essential skill, unions – shareholders?
is worker cooperation Pressure Groups
needed
Customers and e.g. Friends of the earth
suppliers
How important are they?
© PROF KUAH 2020
CONFLICTING
OBJECTIVES?
• commercial company missions
– compromise reflecting balance of power
– a managerial wish-list
• not-for-profit organisations
– conflict of objectives is a major problem for:
• hospitals
• education institutions
• charities
• arts bodies

© PROF KUAH 2020

COMMON CONFLICTS

GROWTH VS PROFITABILITY

CONTROL VS INDEPENDENCE

COST EFFICIECY VS JOBS AND MORALE

VOLUME/MASS MARKET VS SPECIALISATION & QUALITY

© PROF KUAH 2020

POWER

© PROF KUAH 2020

A stakeholders analysis may provide understanding on
how an organisation’s strategic intent may be driven by
stakeholders’ values.

  STRATEGY STRATEGY STRATEGY

A B C

Stakeholder 1   
     
Stakeholder 2  XX 
   
Stakeholder 3 O  XXX
   

Stakeholder 4   X
   

© PROF KUAH 2020

 STRATEGY AND SUCCESS
Strategy Formulated
Appropriate Inappropriate

Excellent
Success Rescue or
Ruin
Strategy
Implemented

Poor Trouble Failure

© PROF KUAH 2020

 MISSION STATEMENT TO
REFLECT VALUES
senior
senior
managers
managers

change in strategic direction

Internally Externally
(mostly) (to a lesser extent)
leadership public image
morale investors
standards customers
(Klemm & Sanderson) suppliers
© PROF KUAH 2020
AN EFFECTIVE
LEADERSHIP
Advantages
TOOL?
– can be used to build company culture
– different cultural approaches
– Positive effect on performance?
Disadvantages
– time consuming to draw up
– considered “banal and obvious”
– can produce cynicism amongst staff

© PROF KUAH 2020

 MBA
CORPORATE McKinsey 7S

STRATEGY
© PROF KUAH 2020
MCKINSEY 7S

Appeared in Peters and Waterman’s In Search of

Excellence, and was taken up as a basic tool for their
management consultancy by McKinsey.
Organisational diagnostic tool, and excellent way to
understand how an organisation operates.
Managers should take into account of how the 7 factors
operate to drive the implementation of a strategy.
As all 7 factors inter-relates and affects each other,
managers must act in parallel.

© PROF KUAH 2020

MCKINSEY 7S
• Hard S
• Strategy
• Structure
• Systems

• Soft S
• Shared Values
• Skills
• Staff
• Style

© PROF KUAH 2020

MCKINSEY 7S

Strategy: What are the plan for allocation and

utilisation of scarce resources to align with identified
goals in view of the environment, customers and
competition?
Structure: How is the organisation setup, and the way
SBU relate to each other? What is the optimum structure
to enable us to achieve this strategy?
Systems: What are the procedures, processes, and
routines that characterise the way work is done, and
systems in place like financial systems, HR appraisal and
reward systems and information systems.
© PROF KUAH 2020
Shared Values: What the organisation stands for and is
working towards:- its central values and attitudes.
Style: Cultural style of the organisation and how
managers work towards their goals? Management style of
the organisation and how manager behaves?
Staff: The number and types of personnel in the
organisation.
Skills: Distinctive capabilities of personnel and that of
the organisation as a whole.

© PROF KUAH 2020

The 7S model can be used in a wide
variety of situations:
 Improve the performance of a company;
 Examine the likely effects of future changes within a
company;
 Align departments and processes during a merger or
acquisition; or
 Determine how best to implement a proposed strategy.

© PROF KUAH 2020

 Culture

© PROF KUAH 2020

BUSINESS CULTURE: IT’S THE WAY WE DO
THINGS AROUND HERE!

The beliefs, customs, practices and ways of thinking that are shared through
people being and working together
“The way we do things round here”

working practices, routines and rituals, dress codes,

etiquette, timekeeping, heroes and heroines

© PROF KUAH 2020

THE ROLE OF CULTURE
Culture can be a major source of resistance in an organisation
Culture can assist with motivation and learning
Strong & appropriate cultures can assist in defining desired
behaviour
Culture can impact on strategy implementation

© PROF KUAH 2020

TWO CULTURES

Schein (1984) describes two very

different organisations
'Coming to a New Awareness of Organizational Culture' Sloan Management Review,
1984.

© PROF KUAH 2020

ORGANISATION A
OPERATES ON THE
ASSUMPTION THAT:
ideas come ultimately from individuals
people are responsible, motivated and capable of
governing themselves
nevertheless, in practice, truth can only be arrived at by
fighting things out in groups
such fighting is possible because members of the
organization see themselves as a family who will take
care of each other. It is therefore safe to fight and be
competitive.
© PROF KUAH 2020
ORGANISATION B
OPERATES ON THE
ASSUMPTION THAT:
truth comes ultimately from older, wider experienced and
higher- status members
people are capable of loyalty and discipline in carrying out
directions
relationships are basically lineal and vertical
each person has a niche in the organization that cannot be
invaded
the organization is responsible for taking care of its
members.
© PROF KUAH 2020
IN ORGANISATION A:

there are open office landscapes, few

closed doors, people milling about,
intense conversations and argument
and a general air of informality.

© DR ADRIAN KUAH 2010

IN ORGANISATION B:
there is a hush in the air. Everyone is in an office with closed doors,
nothing is done except by appointment and prearranged agenda.
When people of different ranks are present there is real deference and
obedience. An air of formality permeates everything .

© DR ADRIAN KUAH 2010

 MBA
STRATEGIC 4 Culture Styles

MANAGEMENT
© PROF KUAH 2020
 HANDY (1975)’S CULTURE
Culture Diagram Structure
Power Web

Role Greek
Temple
Task Net

Person Cluster

© PROF KUAH 2020

POWER CULTURE

There are few rules and procedures, little

bureaucracy. Control is exercised by the centre
largely through the selection of key individuals, by
occasional forays from the centre or summonses to
the centre.
It is political organisation in that decisions are
taken very largely on the outcome of a balance of
influence rather than on procedural or purely
logical grounds.
© PROF KUAH 2020
POWER CULTURE

A Power culture is frequently found in small

entrepreneurial organisations, traditionally in the
robber-baron companies of nineteenth-century
America, occasionally in today's trade unions,
and in some property, trading and finance
companies.

© PROF KUAH 2020

ROLE CULTURE

They are coordinated at the top by a narrow ban of

senior management, the pediment.
The role, or job description, is often more important
than the individual who fills it. Individuals are
selected for satisfactory performance of a role, and
the role is usually so described that a range of
individuals could fill it.
Position power is the major power source, personal
power is frowned upon and expert power tolerated
only in its proper place.
© PROF KUAH 2020
 ROLE CULTURE
The organisation will succeed as long as it can operate
in a stable environment.
When next year is like this year, so that this year's
tested rules will work next year, then the outcome will
be good.
Where the organisation can control its environment, by
monopoly or oligopoly, where the market is stable or
predictable or controllable, or where the product-life is
a long one, then rules and procedures and programmed
work will be successful.
© PROF KUAH 2020
TASK CULTURE

The task culture is the one preferred, as a personal choice to

work in, by most managers, certainly at the middle and junior
levels. It is the culture which most of the behavioural
theories of organisations point towards with its emphasis on
groups, expert power, rewards for results, merging individual
and group objectives.
It is the culture most in tune with current ideologies of
change and adaptation, individual freedom and low status
differentials.
It is not, however, always the appropriate culture for the
climate and the technology.
© PROF KUAH 2020
PERSON CULTURE

Barristers' chambers, architects' partnerships, hippie communes,

social groups, families, some small consultancy firms, often
have 'person' orientation.
Control mechanisms, or even management hierarchies, are
impossible in these cultures except by mutual consent.
Computer people in business organisation, consultants in
hospitals, architects in city government - often feel little
allegiance to the organisation but regard it rather as a place to
do their thing with some accruing benefit to the main employer.

© PROF KUAH 2020

 Cultural Web

© PROF KUAH 2020

CULTURAL WEB

The Cultural Web identifies six interrelated

elements that help to make up what Johnson and
Scholes call the "paradigm" - the pattern or
model - of the work environment. By analyzing
the factors in each, you can begin to see the
bigger picture of your culture: what is working,
what isn't working, and what needs to be
changed.

© PROF KUAH 2020

 CULTURAL WEB
Stories - Who and what the company chooses to
immortalize says a great deal about what it
values, and perceives as great behavior.
Rituals and Routines - The daily behavior and
actions of people that signal acceptable behavior.
Symbols - The visual representations of the
company including logos, how plush the offices
are, and the formal or informal dress codes.
Organizational Structure – Formal hierarchy
and the unwritten lines of power and influence
Control Systems - The ways that the
organization is controlled,the way they are
measured and distributed within the organization.
Power Structures – Informal and Formal Powers
within organisation

© PROF KUAH 2020

 SO WHAT IS CULTURE?
Summarising the above, culture:
encompasses attitudes, beliefs, values &
orientations
relates to learned behaviour
is developed over time
is a system of shared ideas

IT’S THE WAY WE DO THINGS AROUND HERE!

© PROF KUAH 2020

 CULTURAL DIAGNOSIS
• Diagnosing context and change problems
• Using Cultural Web
– Diagnostic tool to understand culture
– Covers hard and soft aspects
• Org, Power Structures and Control Systems (hard)
• Symbols, Stories and Routines (soft)
– Can be used to analyse changes needed for
strategic success
• Map current and required culture

© PROF KUAH 2020