Strategic Leadership & Corporate Culture

7/28/2019 Strategic Leadership & Corporate Culture

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Made By:

Avinash kumar

Pooja Jain

SukritiEsha Narang

Ashutosh Sharma

Vishu Gaba


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Strategic Leadership

Ability to lead towards the achievement of itsobjectives.

Tasks involved are:

Anticipate, envision, maintain flexibility and empower

others to create strategic change.

Strategic Leaders


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Levels of Strategic Leaders

Corporate Level

Business Level

Functional Level

Operational Level


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Role Of Strategic Leaders

CEO

Chief architectoforganizationalpurpose

Organizationalleader

Chief

administrator Communicator

oforganizationalpurpose

Top Manager

Implementationof strategies

Periodicevaluation ofperformance

Assist the BOD

Form

committees,work groups,etc.

Business LevelExecutives

Profit centers ordivisional heads

Authority withina SBU

Coordination ofdifferent SBUs

Review of

performance ofSBUs

Functional &Operational Mgrs

Implements thedecisions ofcorporate &business levelmanagers

Followers ofpolicy guidelines


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Tasks of Strategic Leaders Determining strategic

direction.

Effectively managing the organizational resources.

Sustaining an effective organizational culture.

Emphasizing ethical practices.

Establishing balanced organizational control.


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Styles of Strategic LeadersAutocratic

Democratic

Laissez- Faire Nurturing-Task


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QuizWhat leadership style suits best for an organization?

Which leadership style is suitable for introducing asmaller change?

Which leadership style is suitable for introducing a bigchange?


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Corporate Culture

It is a set of assumptions that members of anorganization share in common.

The beliefs and behaviors that determine how a

company's employees and management interact and

handle outside business transactions.

A company's culture will be reflected in its dress code,business hours, office setup, employee benefits,

turnover, hiring decisions, treatment of clients, client

satisfaction and every other aspect of operations.


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Corporate Culture is often referred to as Organizational

DNA or Organizational Soul.

It is the fundamental contributor of the success or failureof corporate strategies.

Reflected in companys

values, business principles and ethical standards

relationships with stakeholders

approaches to people management and problem

solving


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Impact of Culture on Corporate Life Culture affects not only the way managers behave

within an organization but also decisions they make

about the organization's relationship with its

environment and its strategy.

Corporate Culture acts as strength- Facilitatecommunication, decision making and control and

create cooperation and commitment.

Corporate Culture is a weakness- employees do not

have high sense of commitment, loyalty and sense ofidentity.


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Impact of Culture on two different groups of

organizationsDimensions

Nature of desired

managerial skills &

capabilities

Actual performanceor results achieved

Multinational

subsidiaries

Professional

Qualifications and

rank

Seniority ,conformity

to values and

loyalty

Family businesses &

NRIscompanies

Demonstrated skills,

depth and quality

of knowledge

Innovation, thinking

and upgradation

of knowledge


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Managerial style of

planning &

decision making

Management

systems adopted

Nature of

management

control

Information gathering,

bureaucratic mode

of functioning, risk

aversion and non-entrepreneurial

decision making

Use of elegant,

sophisticated and

rational systems

which degenerate

due to low usage

Comprehensive,

formal and written

reporting

Selective information

usage and intuitive

and quantitative

decision making ofentrepreneurial

nature

Reliance on business

sense and no-frills

systems geared to

quick action

Primary use of verbal

reporting and

remedial action


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Strategy Culture Relationship

Strategy drives focus and direction while culture is the

emotional, organic habitat in which a companysstrategy lives or dies

Strategy is just the headline on the companys storyculture needs a clearly understood common language

to embrace and tell the story that includes mission,vision, values, and clear expectations

Strategy lays down the rules for playing the game, andculture fuels the spirit for how the game will be

played Strategy is imperative for differentiation, but a vibrant

culture delivers the strategic advantage
http://www.torbenrick.eu/blog/culture/8-steps-to-create-a-great-corporate-culture/http://www.torbenrick.eu/blog/change-management/storytelling-an-important-part-of-change-management/http://www.torbenrick.eu/blog/culture/value-statements-can-be-real-business-drivers/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/business-improvement/build-a-culture-that-supports-strategy-implementation/http://www.torbenrick.eu/blog/culture/value-statements-can-be-real-business-drivers/http://www.torbenrick.eu/blog/change-management/storytelling-an-important-part-of-change-management/http://www.torbenrick.eu/blog/culture/8-steps-to-create-a-great-corporate-culture/


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Approaches to create strategy-supportive culture

To Ignore Corporate Culture

To Adapt Strategy Implementation to Suit CorporateCulture

To Change the Corporate Culture to Suit Strategic

Requirements

To Change the Strategy to Fit the Corporate Culture


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CORPORATE POWER AND POLITICSAlliances and coalitions in organizations

compete for resources

Power impacts organizational life work attitude

motivation

communication

retention

Knowing how power functions is important


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WHAT IS POWER? Interpersonal (or intergroup) relationship in which one

individual (or group) can cause another individual (or

group) to take an action that it would not otherwise take.

Involves changing the behavior of another

person A has power over person B if B believes A can

force B to comply.


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POWER/LEADERSHIP/

AUTHORITY RELATIONSHIPPower is closely related to leadership and authority

Leadership

Authority Power


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TYPES OF POWERReward Power- arises from the ability of managers to

reward positive outcomes

Coercive Power (punishment power)- arises from the

ability of managers to penalize negative outcomes

Legitimate Power (authority)-arises from the ability ofmangers to use position to influence behavior


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Referent Power (charisma)- arises from the ability of

managers to create liking among subordinates due to

charisma or personality

Expert Power- arises from the managers competence,

knowledge and expertise that is acknowledged by others


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POLITICSThose activities taken within organizations to acquire,

develop, and use power and other resources to obtain

ones preferred outcome in a situation where there is

uncertainty of outcome.


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POLITICS The use of power to influence

decisions that achieve desired

outcomes.1. Self-interest

2. Decision-making process

Uncertainty & disagreement


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Why do we have politics? Different ideas, values, interests and goals

Limited resources (money etc.)

Outcome is not clearly defined


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The Dark Side of

Power and Politics

Power and politics often havenegative connotations because

people associate them with

attempts to use organizational

resources for personal advantage

and to achieve personal goals at

the expense of other goals.


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The Bright SideManagers can use power to controlpeople and other resources so that

they cooperate and help to achieve an

organizations current goals.Managers can use power to engage in

politics and influence the decision-

making process to help promote new,

more appropriate organizationalgoals.


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Strategic Use of Power and PoliticsMintzbergs view

Corporate politics is neither inherently good nor bad

Though most of the times corporate politics leads todivisiveness that is not good for an organization, yet there

are times when it needs to be shaken up in order to bring

in changes

Politics and power have a definite role to play in strategyimplementation


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Mintzberg says that the organization must..pull apart

before it can pull together again

In other words, strategists need to know when to use powerand politics to get things done and when to shun politics

and use of power to maintain harmony.

Politics and power affect the way strategy is implemented

and formulated


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Tactics to deal with power and

politics First of all, to accept the inevitability of politics being

there in the organization

Understand how an organizations power structure works,

who wields real power and influence and who are the

individuals and groups whose opinions carry weight and

cannot be disregarded

To be sensitive and alert to political signals emanatingfrom different parts of the organization


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To know when to tread softly and rely on coalition

management and consensus building and when to push

through decisions and actions

To lead strategy and not to dictate it, being patient till

consensus emerges

To let most negative decisions emerge as a group consensus

rather than as a directive from the top To gather support for acceptable proposals and let the

unacceptable ideas die a natural death


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To reward organizational commitment and penalize negative

or indifferent attitude

To practice principled politics and use openness and honestyto counter and unprincipled politics

Strategic Leadership & Corporate Culture

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