3. STRATEGY…
"Strategy is the direction and scope of an
organization over the long term, which
achieves advantage in a changing environment
through its configuration of resources and
competences with the aim of fulfilling
stakeholder expectations"
4. Every organization has to manage its strategies
in main three areas;
• The organization's internal resources;
• The external environment within which the
organization operates;
• The organization's ability to add value to what
it does.
5. CULTURE....
Set of shared values, attitudes…
‘a way of life’…. Patterns of ‘how we do things
around here’, the company lore…
Unique to business philosophy, principles &
strategy…manifested in
values, practices, standards & policies..
Can originate anywhere but usually by
founders & leaders
6. • Culture is the social glue.
• Culture provides boundary-defining
roles.
• Culture conveys a sense of identity for
organization members.
• It serves as a “sense-making” and control
mechanism that guides and shapes the
attitudes and behavior of employees.
7. LEADERSHIP…
• Leadership is fundamental aspect of strategic
management and paramount in strategy
implementation.
• The ability to anticipate, envision, maintain
flexibility and empower others to create
strategic change.
8. • Strategic thinking, Strategic acting and
strategic influencing are key skills for a leader.
– Eg:
• It is leaders' responsibility to formulate
strategy and create a strategic intent to drive
the organization for results.
• Leaders can fit culture to strategy or fit the
strategy to culture compromising performance
9. • Culture of an organization is the central thesis
of organizational strategy and
implementation.
• To ensure successful Strategy formulation,
implementation and the
evaluation/measurement, need Strategic
leadership
• Leadership runs like a thread through all
functions of management to integrate them
into a cultural of excellence.
• Understanding culture is desirable for all but is
a must for leaders
10. • Johnson, emphasis that:
• Individuals are surrounded by four different
cultures, namely national/regional,
organizational field, organizational and
functional/divisional
• It is important to understanding all four
frames of culture in order to be successful in
the business environment.
– Eg: McDonald's approach to enter and
operate in India
11. • Organizational culture is created by the
strategic leadership.
• The founder imprints values and management
styles on the organization that lasts for a long
time.
• Good for a certain period but be stifling over
the long haul
– Eg: Walt Disney's conservative influence on
the company
12. company's
leadership style managers
increases
integration and attracts new
improves managers and
coordination employees
bonds them to the
organization and
increases their
commitment
13. • Strategic leadership affects
organizational culture as well, through
the way they delegate authority and
divide up task relationships.
–Eg: Michael Dell keeps his
organization flat & has decentralized
authority to lower-level managers.
14. Conclusion…
It is pivotal for any leader to have a cultural
awareness in formulation, exaction and
evaluation of strategy process for any
organization irrespective of their purpose of
existence. Ultimately it is leader's ability to
strike the right balance between Strategy,
leadership and culture to realize
organizational effectiveness.
Notas do Editor
Culture is the social glue that helps hold an organization together by providing standards for what employees say or do
Martin Luther King's "I have a Dream" changed the America's direction as a country in terms of culture, strategy as well as leadership
McDonald's menus in India do not contain pork or beef. Vegetarian and non - vegetarian food products are kept separate throughout the sourcing, supply chain, cooking and serving process.They have been successful in achieving their strategic objectives with the thorough understanding the all forms of cultures that Jonson explains.
Walt Disney's conservative influence(Holding to traditional attitudes and values and cautious about change or innovation) on the company he established continued until well after his death. Managers were afraid to experiment with new forms of entertainment because they were afraid Walt wouldn't like it. It took the installation of new management under Michael Eisner to turn around the company's fortunes and allow it to deal with the realities of the new entertainment industry environment.
leadership style established by the founder-or top management-is transmitted to the company's managers, and as the company grows, it typically attracts new managers and employees who share the same values.shared values and common culture increases integration and improves coordination among organizational members.When organizational members buy into cultural norms and values, this dynamic bonds them to the organization and increases their commitment to find new ways to help it succeed
Michael Dell, for example, keeps his organization as flat as possible and has decentralized authority to lower-level managers and employees who are charged with striving to get as close to the customer as they can. The result has been to create a cost-conscious customer service culture at Dell in which employees strive to provide high-quality customer service.