In this chapter students will be able to: Be able to identify the key features of a company’s corporate culture, understand how and why a company’s culture can aid the drive for proficient strategy execution and operating excellence, learn the kinds of actions management can take to change a problem corporate culture. | CHAPTER 12 CORPORATE CULTURE AND LEADERSHIP: Keys to Good Strategy Execution Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. INSTILLING A CORPORATE CULTURE THAT PROMOTES GOOD STRATEGY EXECUTION Corporate Culture Is the meshing of shared values, beliefs, business principles, and traditions that imbues a firm’s operating style, behavioral norms, ingrained attitudes, and work atmosphere. Is important because it influences the firm’s actions and approaches to conducting business. Key Features of a Firm’s Corporate Culture Strength of peer pressure to conform and observe norms Actions and behaviors encouraged and rewarded Traditions and stories and “how we do things around here” How the firm treats its stakeholders Features of a Corporate Culture Values, principles, and ethical standards in actual use Management practices and organizational polices Atmosphere and spirit embodied in the firm’s work climate How managers and employees interact and relate to one another Perpetuating the Culture Screening and selecting new employees Systematic indoctrination of new members Vocal support by senior managers Rewarding those who display cultural norms Ceremonies honoring employees Telling and retelling of the firm’s legends Perpetuating the Culture Forces That Cause a Firm’s Culture to Evolve New challenges in the marketplace Merger or acquisition of another firm Shifting internal conditions Causes of Cultural Change Diversification into new businesses New or revolutionary technologies Rapid growth of the firm Company Cultures Can Be Strongly or Weakly Embedded Strong-Culture Firm Has deeply rooted widely-shared values, behavioral norms, and operating approaches. Insists that its values and principles be reflected in the decisions and actions taken by all company personnel. Weak-Culture Firm Lacks values and principles that are consistently preached or widely shared. Has few or no traditions, beliefs, values, common bonds, or . | CHAPTER 12 CORPORATE CULTURE AND LEADERSHIP: Keys to Good Strategy Execution Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. INSTILLING A CORPORATE CULTURE THAT PROMOTES GOOD STRATEGY EXECUTION Corporate Culture Is the meshing of shared values, beliefs, business principles, and traditions that imbues a firm’s operating style, behavioral norms, ingrained attitudes, and work atmosphere. Is important because it influences the firm’s actions and approaches to conducting business. Key Features of a Firm’s Corporate Culture Strength of peer pressure to conform and observe norms Actions and behaviors encouraged and rewarded Traditions and stories and “how we do things around here” How the firm treats its stakeholders Features of a Corporate Culture Values, principles, and ethical standards in actual use Management practices and organizational polices Atmosphere and spirit embodied in the firm’s work climate How managers and employees interact and
