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

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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

Corporate culture_Dec., 201415

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

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

+20 111 333 4161

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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