Corporate cultureA source of competitive advantage

Prepared by: Walid SAAFAN

Dec 2014

Objective

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Discuss Corporate Culture‘s role in building&

sustaining Competitive Advantage

Content

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1. STRATEGY?

2. Corporate CULTURE

3. Culture importance

4. Culture change

5. Corporate Culture as a source of Competitive Advantage

STRATEGY?

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Perform SIMILAR ACTIVITIES better

then rivalsCorporate culture_Dec., 20145

O.E. Necessary but NOT SUFFICIENTCorporate culture_Dec., 20146

M.Porter

Easy EMULATION

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Productivity Frontier

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being DIFFERENTCorporate culture_Dec., 20149

“Creation of a

UNIQUE and

VALUABLEposition, involving a

DIFFERENT set

of activities”.

Corporate culture_Dec., 201410

M.Porter

Mission, Vision, Values

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Corporate culture_Dec., 201412

Long term

Shareholder value

Value chain

Vision

Organization capital

Human capital

Information capital

Value

proposition

Fin

ancia

lC

usto

mer

Inte

rnal

Learn

ing

& g

row

th

Corporate CULTURE

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Corporate culture_Dec., 201414

“a pattern of shared basic

assumptions that was

learned by a group as it solved

its problems of external

adaptation and internal

integration, that has worked

well enough to be considered

valid and, therefore, to be

taught to new members as the

correct way to perceive, think,

and feel in relation to those

problems”

Edgar H. Schein

Corporate culture_Dec., 201415

16 Corporate culture_Dec., 2014

Corporate culture_Dec., 201417

Professional discipline

Unit functions

Geographical locations

Employee age and experience

Culture importance

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19 Corporate culture_Dec., 2014

Corporate culture_Dec., 201420

“what keeps me awake at

night are the intangibles. It’s

the intangibles that are the

hardest thing for a

competitor to imitate, so my

biggest fear is that we lose

the culture, the spirit. If we

ever do lose that, we will

have lost our most important

competitive asset.” Gary C. KellySouthwest Airlines, CEO

Corporate culture_Dec., 201421

Right decisions

Appropriate behaviors

Deal with work

Speed and efficiency

organization's receptiveness to change

attitudes of outside stakeholders

22 Corporate culture_Dec., 2014

Global Innovation 1000 study, Booz& Company 2011

23 Corporate culture_Dec., 2014

Culture & Change survey, Booz& Company 2010

24 Corporate culture_Dec., 2014

Global Innovation 1000 study, Booz& Company 2011

25 Corporate culture_Dec., 2014

Culture CHANGE

26 Corporate culture_Dec., 2014

Circumstances

Stakeholder expectations

The demographics of the organization

The organization’s objectives

New technologies

Negative outcomes

27 Corporate culture_Dec., 2014

Culture & Change survey, Booz& Company 2010

28 Corporate culture_Dec., 2014

Culture & Change survey, Booz& Company 2010

Self ASSESSMENT

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7

HIRING the right people

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7

EQUIPING the people

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1

2

3

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7

setting EXPECTATIONS

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1

2

3

4

5

6

7

getting OUT of the way

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2

3

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5

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7

show APPRECIATION

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2

3

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7

letting people GO

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2

3

4

5

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7

36 Corporate culture_Dec., 2014

O.C. as a source of

Competitive Advantage

37 Corporate culture_Dec., 2014

BELOW normal performance

NORMAL performance,

SUPERIOR performance

38 Corporate culture_Dec., 2014

Temporary Superior performance

39 Corporate culture_Dec., 2014

Sustained Superior performance

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valuable

rare

imperfectly imitable

Culture and Sustained Superior financial performance

41 Corporate culture_Dec., 2014

Culture & Change survey, Booz& Company 2010

Q & A

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Corporate culture_Dec., 201443

Walid SaafanEng., DBA (cand.), SFO, XPP, BSC Certified professionalHead of Strategy and Corporate Development

Walid.saafan@gmail.comeg.linkedin.com/in/walidsaafan

+20 111 333 4161

References

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“What is Strategy”,

Michael E. Porter – Harvard Business Review Product no. 4134.

The global innovation 1000 “Why Culture Is Key”

Strategy+Business, Issue 65 Winter 2011.

Organizational Culture – Why Does It Matter

Kenneth Desson, Joseph Clouthier - November 3, 2010

Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?

Jay B. Barney, The Academy of Management Review, Volume 11, Issue 3 (Jul., 1986), 656-665

“Culture Eats Strategy for Breakfast.”

Miles Anthony Smith