Strategic Management

Two essay questions 2-4 pages long; senerios…instruction on top of the page…will post one for one witer and one for another writer….both questions are due by 12 noon Monday, August 19…notes are provided…willing to pay $25 for each, with a total of $50

STRATEGIC MANAGEMENT

INSTRUCTIONS: 2-4 PAGES LONG; TYPED – DOUBLE SPACED, 12 PT MAX, 1” MARGINS MAX. PLEASE REMEMBER THAT GOOD GRAMMAR AND SPELLING ARE EXPECTED. ALSO, YOUR ANSWERS SHOULD BE WELL ORGANIZED AND CONTAINS SPECIFICS BASED ON THE CONCEPTS AND ANALYSES WE HAVE STUDIED.

You are the new CEO of a single-entity business that provides financial services to the insurance industry. The previous CEO left the organization “under a cloud” – nothing was ever proved, and he received the “normal” severance package.

Your early perception of the organization indicates there may have been some ethics problems in upper management. It appears no laws were broken, but it may be that some older employees did not receive expected and /or promised raises in pay. It is difficult to know this for sure because the company’s Performance Evaluation system has never been formalized.

The apparent ethics problems at the top have left many employees with an uneasy feeling. It has also resulted in an attitude on the part of many that retribution will be swift if an employee reports an ethics-related problem to management. It has been noticed that absenteeism has increased over the past 9 months. Also, employee turnover appears to be on the rise.

As CEO, what plans will you make and what actions will you take to overcome the apparent problems so a new strategic plan can be successfully implemented? This plan includes the introduction of a major new product. Also include the steps you should take to introduce the new strategic plan to the employees.

1

CHAPTER 12CHAPTER 1

2

CORPORATE CULTURE

AND LEADERSHIP: KEYS

TO GOOD STRATEGY

EXECUTION

CORPORATE CULTURE
AND LEADERSHIP: KEYS
TO GOOD STRATEGY
EXECUTION

CORE CONCEPT

♦ Corporate culture refers to the shared values,

ingrained attitudes, core beliefs and company

traditions that determine norms of behavior,
accepted work practices, and styles of

operating.

12–2

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

12–

3

TRANSFORMING CORE VALUES AND ETHICAL
STANDARDS INTO CULTURAL NORMS

� Recruit and hire applicants with values and

ethics compatible to those of the firm.

� Incorporate the values statement and the code

of ethics into orientation and training programs.

� Have senior executives frequently reiterate and
stress

the firm’s values and ethical principles.

� Use values statements and codes of ethics as

benchmarks for the firm’s polices and practices.

12–4

2

TRANSFORMING CORE VALUES AND ETHICAL
STANDARDS INTO CULTURAL NORMS (CONT’D)

� Use core values and ethical principles when

evaluating each person’s job performance.

� Encourage all employees to help enforce the

observance of core values and ethical
standards.

� Periodically have ceremonial occasions to

recognize individuals and groups who display

the firm’s values and ethical principles.

� Institute strict ethics enforcement procedures.

12–

5

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

Perpetuating
the Culture

12–

6

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 grow th
of the firm

12–7

♦ 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 behavioral
norms.

COMPANY CULTURES CAN BE
STRONGLY OR WEAKLY EMBEDDED

12–8

3

DEVELOPMENT OF
A STRONG CULTURE

Commitment

by the firm to

ethical
behavior

Founder or

strong leader

with strong
values

Strong
Culture

Closely aligning corporate culture with the requirements

for proficient strategy execution merits the full attention

of senior executives.

12–9

WHY CORPORATE CULTURES MATTER TO
THE STRATEGY EXECUTION PROCESS

� A culture well matched to the requirements of the
strategy execution effort focuses the attention of
employees on what is most important to this effort.

� Culture-induced peer pressure induces personnel to do
things in a manner that aids good strategy execution.

� A culture consistent with the requirements for good

strategy execution can energize employees, deepen
their commitment to execute the strategy, and enhance
worker productivity.

12–10

HEALTHY CULTURES THAT AID
GOOD STRATEGY EXECUTION

Good Strategy
Execution

Adaptive

Cultures

High-Performance
Cultures

Commitment to
achieving stretch

objectives and

accountability

Willingness to accept
change and take on

challenges

Performance

12–11

UNHEALTHY CULTURES THAT IMPEDE
GOOD STRATEGY EXECUTION

Change-resistant
cultures

Incompatible
Subcultures

Politicized
cultures

Unhealthy

Cultures

Insular, inw ardly
focused cultures

Unethical and greed-
driven cultures

Poor Strategy
Execution

Poor Performance

12–12

4

FIGURE 12.2 Changing a Problem Culture

12–13

MAKING A COMPELLING CASE
FOR CULTURE CHANGE

� Selling the Change

● Explain why and how certain behavioral norms and
work practices are obstacles to good execution of
strategic initiatives.

● Explain how new behaviors and work practices will
be produce better results.

● Cite reasons why the current strategy has to be
modified, if the need for cultural change is due to a
change in strategy.

12–14

SUBSTANTIVE CULTURE-CHANGING
ACTIONS

� Replace key executives who are stonewalling needed
organizational and cultural changes.

� Promote individuals who advocate for cultural shifts and
can serve as a role model for the cultural behavior.

� Appoint outsiders with the desired cultural attributes to
high-profile positions.

� Screening candidates for positions carefully, hiring only
those who appear to fit in with the new culture.

� Mandate that all personnel attend culture-training.

� Design compensation incentives that boost the pay of
teams and individuals.

12–15

HOW LONG DOES IT TAKE TO CHANGE
A PROBLEM CULTURE?

� Changing a problem culture is never a short-term
exercise.

� A sustained and persistent effort to reinforce the culture
at every opportunity through word and deed is required.

� It takes time for a new culture to emerge and prevail; it
takes even longer for it to become deeply embedded.

� Fixing a problem culture and instilling a new set of
attitudes and behaviors can take two to five years.

12–16

5

LEADING THE STRATEGY EXECUTION
PROCESS

� Leading Strategy Execution Requires:

● Staying on top of what is happening and closely
monitoring progress.

● Putting constructive pressure on the organization
to execute the strategy well and achieve operating
excellence.

● Initiating corrective actions to improve strategy
execution and achieve the targeted performance
results.

12–17

STAYING ON TOP OF HOW
THINGS ARE GOING

� Management by Walking Around (MBWA)

● Is used by leaders to stay informed about how well
the strategy execution process is progressing.

● Involves spending time with people at company
facilities, asking questions, listening to their opinions
and concerns, and gathering firsthand information
about how well aspects of the strategy execution
process are going.

12–18

MOBILIZING THE EFFORT FOR
EXCELLENCE IN STRATEGY

EXECUTION

� Treat employees as valued partners.

� Foster an esprit de corps that

energizes members.

� Use empowerment to create a fully

engaged workforce.

� Make champions out of the people
who spearhead new ideas and/or

turn in winning performances.

12–19

MOBILIZING THE EFFORT FOR
EXCELLENCE IN STRATEGY

EXECUTION (CONT’D)

� Set stretch objectives that require personnel to

give their best in achieving performance targets.

� Use benchmarking, reengineering, TQM, and

Six Sigma to focus attention on continuous
improvement.

� Use motivational techniques and compensation

incentives to inspire, nurture a results-oriented

work climate, and enforce high standards.

� Celebrate individual, group, company successes.

12–20

6

A FINAL WORD ON LEADING
THE PROCESS OF CRAFTING
AND EXECUTING STRATEGY

� It is difficult to separate leading the process of executing
strategy from leading the strategy process.

� Crafting, implementing, and executing strategy is a
continuous process that requires much adjusting and
fine-tuning of the strategy to fit changing circumstances.

� The tests of strategic leadership are whether the firm

has a good strategy and business model, whether its
strategy is competently executed, and whether the firm
is achieving its performance targets.

� If these three conditions exist, then the firm has good
strategic leadership and is a well-managed enterprise.

12–21