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Corporate culture A source of competitive advantage

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Corporate culture A source of competitive advantage Prepared by: Walid SAAFAN Dec 2014


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Objective Corporate culture_Dec., 2014 2 Discuss Corporate Culture‘s role in building& sustaining Competitive Advantage


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Content Corporate culture_Dec., 2014 3 STRATEGY? Corporate CULTURE Culture importance Culture change Corporate Culture as a source of Competitive Advantage


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STRATEGY? Corporate culture_Dec., 2014 4


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Perform SIMILAR ACTIVITIES better then rivals Corporate culture_Dec., 2014 5


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O.E. Necessary but NOT SUFFICIENT Corporate culture_Dec., 2014 6 M.Porter


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Easy EMULATION Corporate culture_Dec., 2014 7


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Productivity Frontier Corporate culture_Dec., 2014 8


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being DIFFERENT Corporate culture_Dec., 2014 9


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“Creation of a UNIQUE and VALUABLE position, involving a DIFFERENT set of activities”. Corporate culture_Dec., 2014 10 M.Porter


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Mission, Vision, Values Corporate culture_Dec., 2014 11


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Corporate culture_Dec., 2014 12 Long term Shareholder value Value chain Vision Organization capital Human capital Information capital Value proposition Financial Customer Internal Learning & growth


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Corporate CULTURE Corporate culture_Dec., 2014 13


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Corporate culture_Dec., 2014 14 “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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Corporate culture_Dec., 2014 15


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16 Corporate culture_Dec., 2014


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Corporate culture_Dec., 2014 17 Professional discipline Unit functions Geographical locations Employee age and experience


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Culture importance Corporate culture_Dec., 2014 18


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19 Corporate culture_Dec., 2014


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Corporate culture_Dec., 2014 20 “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. Kelly Southwest Airlines, CEO


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Corporate culture_Dec., 2014 21 Right decisions Appropriate behaviors Deal with work Speed and efficiency organization's receptiveness to change attitudes of outside stakeholders


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22 Corporate culture_Dec., 2014 Global Innovation 1000 study, Booz& Company 2011


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23 Corporate culture_Dec., 2014 Culture & Change survey, Booz& Company 2010


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24 Corporate culture_Dec., 2014 Global Innovation 1000 study, Booz& Company 2011


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25 Corporate culture_Dec., 2014 Culture CHANGE


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26 Corporate culture_Dec., 2014 Circumstances Stakeholder expectations The demographics of the organization The organization’s objectives New technologies Negative outcomes


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27 Corporate culture_Dec., 2014 Culture & Change survey, Booz& Company 2010


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28 Corporate culture_Dec., 2014 Culture & Change survey, Booz& Company 2010


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Self ASSESSMENT Corporate culture_Dec., 2014 29 1 2 3 4 5 6 7


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HIRING the right people Corporate culture_Dec., 2014 30 1 2 3 4 5 6 7


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EQUIPING the people Corporate culture_Dec., 2014 31 1 2 3 4 5 6 7


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setting EXPECTATIONS Corporate culture_Dec., 2014 32 1 2 3 4 5 6 7


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getting OUT of the way Corporate culture_Dec., 2014 33 1 2 3 4 5 6 7


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show APPRECIATION Corporate culture_Dec., 2014 34 1 2 3 4 5 6 7


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letting people GO Corporate culture_Dec., 2014 35 1 2 3 4 5 6 7


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36 Corporate culture_Dec., 2014 O.C. as a source of Competitive Advantage


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37 Corporate culture_Dec., 2014 BELOW normal performance NORMAL performance, SUPERIOR performance


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38 Corporate culture_Dec., 2014 Temporary Superior performance


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39 Corporate culture_Dec., 2014 Sustained Superior performance


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Corporate culture_Dec., 2014 40 valuable rare imperfectly imitable Culture and Sustained Superior financial performance


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41 Corporate culture_Dec., 2014 Culture & Change survey, Booz& Company 2010


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Q & A Corporate culture_Dec., 2014 42


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Corporate culture_Dec., 2014 43 Walid Saafan Eng., DBA (cand.), SFO, XPP, BSC Certified professional Head of Strategy and Corporate Development Walid.saafan@gmail.com eg.linkedin.com/in/walidsaafan +20 111 333 4161


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References Corporate culture_Dec., 2014 44 “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


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