Culture and Leadership in

Implementing Strategy

BUILD A STRATEGY-SUPPORTIVE
CORPORATE CULTURE

What Makes Up a Companys Culture?
Where Does Corporate Culture Come
From?
How Is a Companys 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 whats 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