Corporate culture a source for competitive advantage
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Transcript of Corporate culture a source for competitive advantage
Corporate cultureA source of competitive advantage
Prepared by: Walid SAAFAN Dec 2014
Corporate culture_Dec., 20142
Objective
Discuss Corporate Culture‘s role in building&
sustaining Competitive Advantage
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Content 1. STRATEGY?2. Corporate CULTURE3. Culture importance4. Culture change5. Corporate Culture as a source of Competitive
Advantage
Corporate culture_Dec., 20144
STRATEGY?
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Perform SIMILAR ACTIVITIES better then rivals
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O.E. Necessary but NOT SUFFICIENTM.Porter
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Easy EMULATION
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Productivity Frontier
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being DIFFERENT
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“Creation of a UNIQUE and
VALUABLE position, involving a DIFFERENT set
of activities”.
M.Porter
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Mission, Vision, Values
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Long termShareholder value
Value chain
Vision
Organization capital
Human capital
Information capital
Value proposition
Fina
ncia
lC
usto
mer
Inte
rnal
Lear
ning
& g
row
th
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Corporate CULTURE
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“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
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16 Corporate culture_Dec., 2014
Corporate culture_Dec., 201417
Professional disciplineUnit functions
Geographical locationsEmployee age and experience
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Culture importance
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 decisionsAppropriate behaviors Deal with work Speed and efficiencyorganization's receptiveness to changeattitudes of outside stakeholders
22 Corporate culture_Dec., 2014Global Innovation 1000 study, Booz& Company 2011
23 Corporate culture_Dec., 2014Culture & Change survey, Booz& Company 2010
24 Corporate culture_Dec., 2014Global Innovation 1000 study, Booz& Company 2011
25 Corporate culture_Dec., 2014
Culture CHANGE
26 Corporate culture_Dec., 2014
CircumstancesStakeholder expectations
The demographics of the organizationThe organization’s objectives
New technologiesNegative outcomes
27 Corporate culture_Dec., 2014Culture & Change survey, Booz& Company 2010
28 Corporate culture_Dec., 2014Culture & Change survey, Booz& Company 2010
Corporate culture_Dec., 201429
Self ASSESSMENT
1
2
3
4
5
6
7
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HIRING the right people
1
2
3
4
5
6
7
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EQUIPING the people
1
2
3
4
5
6
7
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setting EXPECTATIONS
1
2
3
4
5
6
7
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getting OUT of the way
1
2
3
4
5
6
7
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show APPRECIATION
1
2
3
4
5
6
7
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letting people GO
1
2
3
4
5
6
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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valuablerare
imperfectly imitable
Culture and Sustained Superior financial performance
41 Corporate culture_Dec., 2014Culture & Change survey, Booz& Company 2010
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Q & A
43 Corporate culture_Dec., 2014
Walid SaafanEng., DBA (cand.), SFO, XPP, BSC Certified professionalHead of Strategy and Corporate Development
[email protected]/in/walidsaafan
+20 111 333 4161
Corporate culture_Dec., 201444
References
“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