Leveraging corporate culture for competitive advantage internal communications


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There is a need to align internal communications with the external in order to properly align corporate strategy with operational strategy. A good internal communication system helps to build the right culture for attainig strategic objectives.

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Leveraging corporate culture for competitive advantage internal communications

  2. 2. OUTLINE OF PRESENTATION• Objective of presentation• Corporate Culture defined• Relevance of corporate culture in management• Managing corporate culture in a change process• Implications for managers• Model of discourse and conclusion
  3. 3. OBJECTIVES OF PRESENTATION• To understand what corporate culture is• To determine and understand the significance of corporate culture for organisational performance and the achievement of corporate objectives• To understand how corporate culture can be best managed to effectively support strategic business objectives
  4. 4. WHAT IS CORPORATE CULTURE• Ideal corporate culture is a pattern of basic assumptions that has worked well enough to be considered valuable, and therefore taught to new members as the correct way to perceive, think and act in relation to official matters and corporate issues• Corporate culture is the personality and identity of the organisation• It is the sum total of the shared values and ethos which govern decision making and actions within an organisation
  5. 5. JUSTIFICATION…• Corporate entities tend to have distinct or specific shared characteristics or organizational behaviour which makes for differentiation and identity.• Given the fact that organisations in the same sector are likely to have similar process, however the salient factor which makes for attitudinal differentiation is corporate culture• This can be observed in the values, norms, traditions and service orientation of organisations
  6. 6. ELEMENTS / CHARACTERISTICS OF CORPORATE CULTURE• BELIEFS: These are the consistent or integrated values and expectations that provide a framework for shaping what people hold to be true or false, relevant or irrelevant, good or bad• BEHAVIOUR : These are observable actions that constitute the way people operate on day to day basis
  7. 7. ELEMENTS…• ASSUMPTIONS: These refer to the unconscious rationale for continuing to apply certain beliefs or specific behaviours• PHILOSPHY: This refers to policies set forth by organisations to guide behaviour, whether expressly stated (mission statement) or not• RULES: These refers to strict guidelines on how to get along in an organisation• ORGANISATIONAL CLIMATE: This represents the general environment and socio- psychological atmosphere within which organisational members interact
  8. 8. MANIFESTATION…• DOMINANT CULTURE: This is a set of core values shared by a majority of organisational members. This could include concerns for quality, customer service, loyalty etc.• SUB-CULTURE: This is a set of values shared by a small minority. Sub- cultures can weaken and undermine organisational goals if they conflict with the dominant culture
  9. 9. INDICES OF THE STRENGHT OF CORPORATE CULTURE• The indices of the strength of corporate culture are: – SHAREDNESS: The degree to which organizational members have the same core values – INTENSITY: The degree of the commitment of members to the core values• Two major factors that determine the strengths of corporate culture are: – The orientation of members to group goals – Reward structure prevailing in the system
  10. 10. RELEVANCE OF CORPORATE CULTURE IN MANAGEMENT• Peters et. al.(1984), in their study of excellent companies in the U.S.A, discovered that outstanding performers, over a long time, exhibit a strong corporate culture• These business leaders adopt value disciplines which will be suited to their work process and corporate culture.• Successful business leaders are increasingly recognising that one of their competitive weapons is their corporate culture• They recognise that corporate culture is a critical factor in long term economic success. For these business leaders, the name of the game is competitive differentiation via the vehicle of corporate culture
  11. 11. CORPORATE CULTURE AND BUSINESS SUCCESS• A positive corporate culture binds, directs and reinforces positive action• The stronger the corporate culture and the more directed and focused it is towards the organisations strategic and market requirements, the less would be the need for policy manuals, charts or documented procedures and values• This because members of the group are more likely to align their actions to the share values and goals of the organisation
  12. 12. CORPORATE CULTURE AND BUSINESS FAILURES• Poor performing companies do not have strong culture, such companies are usually dysfunctional• An organisation’s culture will invariably determine the nature and direction of management practices• A weak culture is not likely to engender the desired sense of belonging which causes an immersion into the corporate goal
  13. 13. INFLUENCE OF CORPORATE CULTURE ON MANAGEMENT PRACTICES• The relationship between corporate culture and management practices are evident in: – Motivation – Decision-making – Performance and reward management – Communication – Leadership – Teamwork
  14. 14. MANAGING CORPORATE CULTURE IN A CHANGE• PROCESS Today’s business environment is described as turbulent, unpredictable and rapidly changing. This type of business environment has established a compelling need for cultural change• The challenge which corporate culture poses for organisations is to manage it effectively, create change or adapt to change and do so quickly or lose ground• Studies have shown that many business organisations have failed in their bid to introduce strategic changes dictated by economic realities. The causes of such failure in effectively managing corporate culture for long term business goals
  15. 15. EFFECTS OF CORPORATECULTURE MISMANAGEMENT• Inadequate understanding of organisations underlying culture• Basic differences in the values which the existing corporate culture stresses and the values required to drive the new strategic change• Insufficient commitment of time and resources to cultural change effort perceived to be desirable
  16. 16. CORPORATE CULTURE AND STRATEGIC CHANGE IMPERATIVES• Given that strong corporate culture can affect the ability of a business organisation to adopt strategic changes, the following options for managing a strong culture in a change management process are: – Ignore the culture – Manage round it – Attempt to change dysfunctional elements of culture to fit strategy – Change the strategy
  17. 17. WEIGHING THE CORPORATE CULTURE OPTIONS IN CHANGE MANAGEMENT1& 2OPTION 1 – “IGNORE THE CULTURE” - The inextricable link we have established between corporate culture and organisational performance makes this an unenviable and unattractive optionOPTION 2 – “MANAGE ROUND IT” - Organisations make no attempt to change culture but selects only those strategic changes which have the least possibility of being resisted by the existing culture - This option might force organisations to compromise what is strategically desirable for what is convenient This might work where -Dysfunctional aspect of culture is weak -There is a considerable area of congruence between current culture and strategic needs
  18. 18. WEIGHING THE CORPORATE CULTUREOPTIONS IN CHANGE MANAGEMENT 3• OPTION 3 – “CHANGE DYSFUNCTIONAL ELEMENTS OF CULTURE” -This is the option which is strategically desirable and attractive because this ensures that culture effectively supports corporate strategy
  19. 19. DEMANDS OF EMPLOYING THE THIRD OPTION• Employing this option involves the following steps: - Conduct environmental analysis - Conduct internal analysis - Decide on strategic focus - Understand character of current culture and consolidate its strength - Determine aspects of culture that would be dysfunctional to achievement of strategic objectives - Initiate and implement a culture change programme
  20. 20. WEIGHING THE CORPORATE CULTUREOPTIONS IN CHANGE MANAGEMENT 4• OPTION 4 – “CHANGE THE STRATEGY”• Similar to option 2, except that the change to be effected in strategy is fundamental• Again, desirable strategic choice might be compromised
  21. 21. IMPLICATIONS FOR MANAGERS• Understand your culture and implications for business strategy• Merge your organisation’s value discipline with the corporate culture• Articulate desirable cultural values• Persistently communicate your ideal cultural values• Continuously improve cultural values through socialisation
  23. 23. THANK YOU