Kế hoạch kinh doanh - Defining characteristics of corporate culture

Corporate Culture and LeadershipScreen graphics created by:Jana F. Kuzmicki, Ph.D.Troy University-Florida Region Defining Characteristics of Corporate CultureCore values, beliefs, and business principles Ethical standardsOperating practices and behaviors defining“how we do things around here”Approach to people management“Chemistry” and “personality” permeatingwork environmentOft-told stories illustratingCompany’s valuesBusiness practicesTraditionsA company’s culture is manifested in . . . Values, business principles, and ethical standards preached and practiced by managementApproaches to people management and problem solvingOfficial policies and proceduresSpirit and character permeating work environmentInteractions and relationships among managers and employeesPeer pressures that exist to display core valuesIts revered traditions and oft-repeated storiesIts relationships with external stakeholdersIdentifying the Key Featuresof Corporate CultureFounder or early leaderInfluential individual or work groupPolicies, vision, or strategiesOperating approachesCompany’s approach to people managementTraditions, supervisory practices, employee attitudesOrganizational politicsRelationships with stakeholdersWhere Does CorporateCulture Come From?Types of Corporate CulturesStrong vs. Weak CulturesUnhealthy CulturesHigh-Performance CulturesAdaptive CulturesConduct business according to a clear, widely-understood philosophy Considerable time spent by management communicating and reinforcing valuesValues are widely shared and deeply rootedHave a well-defined corporate character,reinforced by a creed or values statementCareful screening/selection of newemployees to be sure they will “fit in”Characteristics ofStrong Culture CompaniesCharacteristics of Weak Culture CompaniesLack of a widely-shared core set of values Few behavioral norms evident in operating practices Few strong traditionsNo strong sense of company identityLittle cohesion among departmentsWeak employee allegiance tocompany’s vision and strategyHighly politicized internal environmentIssues resolved on basis of political cloutHostility to changeAvoid risks and don’t screw upExperimentation and efforts toalter status quo discouraged“Not-invented-here” mindset – company personnel discount need to look outside forBest practicesNew or better managerial approachesInnovative ideasDisregard for high ethical standards and overzealous pursuit of wealth by key executivesCharacteristics of Unhealthy CulturesStandout cultural traits includeA can-do spiritPride in doing things rightNo-excuses accountabilityA results-oriented work climate in which people go the extra mile to achieve performance targetsStrong sense of involvement by all employeesEmphasis on individual initiative and creativityPerformance expectations are clearly identified for all organizational membersStrong bias for being proactive, not reactiveRespect for the contributions of all employees Characteristics ofHigh-Performance CulturesWillingness to accept change and embrace challenge of introducing new strategiesRisk-taking, experimentation, and innovation to satisfy stakeholdersEntrepreneurship is encouraged and rewardedFunds provided for new productsNew ideas openly evaluatedGenuine interest in well-being of all key constituencies Proactive approaches toimplement workable solutionsHallmarks of Adaptive CulturesA company’s culture can contribute to – or hinder – successful strategy executionA culture that promotes attitudes and behaviors that are well-suited to first-rate strategy execution is a valuable ally in the strategy execution processA culture where attitudesand behaviors impedegood strategy execution is ahuge obstacle to be overcome Culture: Ally or Obstacleto Strategy Execution?Fig. 13.1: Changing a Problem CultureA culture based on ethical principles isvital to long-term strategic successEthics programs help make ethical conduct a way of lifeExecutives must provide genuine supportof personnel displaying ethical standardsin conducting the company’s business Value statements serve as acornerstone for culture-buildingOur ethicsprogramconsists of . . .Grounding the Culture inCore Values and EthicsFig. 13.2: The Two Culture-Building Roles of aCompany’s Core Values and Ethical StandardsFig. 13.3: The Benefits of Cultural Norms StronglyGrounded in Core Values and Ethical PrinciplesEstablishing a Strategy-Culture Fit in Multinational and Global CompaniesInstitute training programs toCommunicate the meaning of core values andExplain the case for common operatingprinciples and practicesCreate a cultural climate where the norm is toAdopt best practicesUse common work proceduresPursue operating excellenceGive local managersFlexibility to modify people managementapproaches or operating stylesDiscretion to use different motivational and compensation incentives to induce personnel to practice desired behaviorsDevelop a broad network of formaland informal sources of informationTalk with many people at all levels Be an avid practitioner of MBWA Observe situation firsthandMonitor operating results regularlyGet feedback from customersWatch competitive reactions of rivalsRole #1: Stay on Top of What’s HappeningSuccessful leaders spend time Mobilizing organizational energy behindGood strategy execution andOperating excellence Nurturing a results-oriented work climatePromoting certain enabling cultural driversStrong sense of involvement on part of company personnelEmphasis on individual initiative and creativityRespect for contributions of individuals and groupsPride in doing things rightRole #2: Put Constructive Pressure onCompany to Achieve Good ResultsTop management intervention isrequired to establish better or newResource strengths and competenciesCompetitive capabilitiesSenior managers must lead the effort becauseCompetencies reside in combinedefforts of different work groups and departments, thus requiring cross-functional collaborationStronger competencies and capabilitiescan lead to a competitive edge over rivalsRole #3: Promote Stronger CoreCompetencies and CapabilitiesRole #4: Display Ethics Leadership and Lead Social Responsibility InitiativesSet an excellent example in Displaying ethical behaviorsDemonstrating character andpersonal integrity in actions and decisionsDeclare support of company’s ethics codeand expect all employees to conductthemselves in an ethical fashionEncourage compliance and establish toughconsequences for unethical behaviorOur ethicscode is . . .Role #5: Lead the Process ofMaking Corrective Adjustments Requires decidingWhen adjustments are neededWhat adjustments to makeInvolves Adjusting long-term direction, objectives, and strategy on an as-needed basis in response to unfolding events and changing circumstancesPromoting fresh initiatives to bring internal activities and behavior into better alignment with strategyMaking changes to pick up the pace when results fall short of performance targets