INSTILLING A STRATEGY-
SUPPORTIVE CORPORATE
CULTURE
AYCAN GÜRLEYEN
BURÇİN SOYDEMİR
DENİZ KAHYAOĞLU
ELİF KARAKUYU
SELİN AVCI
Defining Characteristics of
Corporate Culture
Beliefs and ideas about what kinds of goals
members of an organization should pursue
and ideas about the appropriate kinds or
standards of behavior organizational
members should use to achieve these goals.
It’s described as the personality of an
organization or simply as “how things are
done around here” it guides how emploees
think, act and feel.
Key Features Of Corporate
Culture
Values,business principles, ethical standarts
Management and problem solving
Official policies and procedures
Work environment
Relationships between managers and
employees
Relaitonship with external stakeholders
Core values
We believe
We promote
that open We value
customers communication people
We are
come first We are
passionate
an agile for making a
team difference
The concept of “open
innovation” plays an important
role in Henkel’s research and
We put our development strategy. We value,
customers at the
challenge and
center of what
reward our
we do.
people.
We drive excellent We build our future on
sustainable financial our family business
performance. foundation.
We are committed to
leadership in
sustainability.
Where Does Corp. Culture Come
From?
How Is a Company’s Culture
Perpetuated?
Selecting new employees who will “fit” in
Systematic indoctrination of new employees
Senior management efforts to reinforce core values,
beliefs, principles, key operating practices
Story-telling of company legends
Ceremonies honoring employees who display
cultural ideals
Visibly rewarding those who follow cultural norms
Forces Causing Culture to
Evolve
Customers
Techonogical changes
Market and Competition
Economic Crisis and Macroeconomic Trends
Expansion
Globalization
Dominant Culture And
Subculture
Dominant Culture: Subculture:
Core values shared by Mini cultures defined
the majority of the departmentally or
members. geographically.
Distinct personality.
Dominant Culture And
Subculture
Types of Corporate Cultures
1) Strong vs. Weak Cultures
2) Unhealthy Cultures
3) High-Performance Cultures
4) Adaptive Cultures
1) Strong vs. Weak Cultures
STRONG WEAK
Have a distinct mission Lack of a distinct
Values are widely mission
shaped Lack of shaped values
Have a well defined Few strong traditions
character of the Unwilling Employees
company Lack of sense of
Supportive employees belonging and trust
Sense of belonging Conflicted values
and trust between departments
Creating a Strong Company
Culture
STEP 1: UNDERSTAND
STEP 2: TAKE ACTION
STEP 3: INVOLVE
STEP 4: COLLABORATE
STEP 5: DEMAND ACCOUNTABILITY
2) Unhealthy Cultures
Avoid risks and don’t screw up
Experimentation and efforts to alter status
quo discouraged
Issues resolved on basis of political clout
Disregard for high ethical standards and
overzealous pursuit of wealth by key
executives
3) High-Performance
Cultures
Strong sense of involvement by
all employees
Emphasis on individual initiative
and creativity
Performance expectations are
“People really matter.
clearly identified for all Organisational results
organizational members stem from high
performance. People only
Strong bias for being proactive, perform well when they
not reactive operate in a culture which
nurtures and supports
Respect for the contributions of them and helps them to
work towards the
all employees achievement of their
ambitions.”
4) Adaptive Cultures
Risk-taking, experimentation,
and innovation to satisfy
stakeholders
Entrepreneurship is
encouraged and rewarded
New ideas openly evaluated
Actual interest in well-being
of all key constituencies
Any changes in operating
practices and behaviors
Culture: Ally or Obstacle to
Strategy Execution?
A culture that promotes A culture where
attitudes and behaviors attitudes and behaviors
that are well-suited to hinder good strategy
first-rate strategy execution is a huge
execution is a valuable block to be overcome
ally in the strategy
execution process
Benefits of a Tight Culture-
Strategy Fit
A deeply embedded culture tightly matched to the
strategy
A culture imbedded with values and behaviors that
facilitate strategy execution promotes strong
employee commitment to the company’s
Vision
Performance targets
Strategy
The Risks of Strategy-Culture
Conflict
Conflicts between Conflict when a
culturally-approved company’s culture is
behaviors and out of sync with what is
behaviors needed for needed for strategic
good strategy execution success, the culture has
send mixed signals to be changed as
rapidly as can be
managed
Changing a Problem Culture
Substantive Culture-
Changing Actions
Replace key executives strongly associated
with old culture
Promote individuals who have desired
cultural traits and can serve as role models
Push hard to implement new-style work
practices and operating procedures
Revise policies and procedures in ways to
drive cultural change
Grounding the Culture in
Core Values and Ethics
Ethics programs help make ethical conduct a
way of life
Value statements serve as a cornerstone for
culture-building
A culture based on ethical principles isvital to
long-term strategic success
Approaches to Establishing
Ethical Standards
Word-of-mouth indoctrination and tradition
Annual reports and Websites
Greater management understanding of
rolethese statements play in culture building
Renewed focus on ethical standardsstemming
from recent corporate scandals
The Benefits of Cultural Norms Strongly
Grounded in Core Values and Ethical
Principles
Establishing a Strategy-Culture Fit in
Multinational and Global Companies
Communicate the meaning of core values
Use common work procedures
Pursue operating excellence
Give local managers
LEADING THE STRATEGY-
EXECUTION PROCESS
Leading the Strategy-Execution
Process
Top executives must be leading the process
and driving the pace of progress
Entire management team must work diligently to
engageall employees
Key Roles in Leading the Strategy-
Execution Process
Gather information
Evaluate the progress being made
Be diligent and adept in spotting gridlock
Reveal problems and issues
Achieve performance targets
Making Corrective Adjustments
Requires deciding
When adjustments are needed
What adjustments to make
Promoting fresh initiatives
Process of Making Corrective
Adjustments
Varies according to the situation
Crisis situation
Non-crisis situation
Success in initiating corrective actions
hinges on thorough analysis of the
situation
