Culture change through leadership Amanda Singleton Group Executive: Corporate Communication Telkom Challenges facing SA leaders Satisfying shareholders Launching into the global arena while and also Attending to the diverse needs of a complex network of stakeholders Addressing local transformation challenges Telkom’s evolution 1996 Licensed (with a 5-year exclusivity) under new Telecoms Act 1997 Partial privatisation 2002 End of exclusivity 1991 Commercialisation 2003 IPO 2004 Competition Why is corporate culture so important? • To survive and prosper in a ever-changing environment, adaptability is key • SA industries need more than gradual adjustment to changing circumstances; we need to shift paradigms • The central challenge: to create and lead an adaptive enterprise Why is corporate culture so important? • No CEO can single-handedly make changes to an organisation’s genetic code • Lasting organisational transformation requires a change in people – A fundamental shift in ‘the way we do things around here’ – Corporate culture change is a prerequisite for successful business transformation • Culture is important: – because it powerfully influences the behaviour of employees – because it is difficult to change and – because its near invisibility makes it hard to address directly The emergence of culture Group Interaction Positive Results Norms of Behaviour Shared Values CULTURE A strong corporate culture = values widely shared amongst employees The value of common values • Values provide the roadmap to the vision – shape the culture needed to realise the vision • Values mould the behaviour – defines the corporate culture • Corporate Culture should accommodate multi culturalism – Umbrella for diverse cultures, languages, backgrounds and national norms • Values have value only when: – they are commonly understood – they are unanimously subscribed to – they are lived by everyone Telkom’s value system • We value people and their diversity • We are performance driven • We are customer focused • We create shareholder value • We are a model corporate citizen • We act with integrity in everything we do The strategic fit communication communication communication “Vision” (to be) Current situation “As is” A Telkom example • Vision: – To be a world-class communication company • Strategic Goal: – To invest in our employees • Value: – We value our people and their diversity • Behaviour needed: – – – – – – – – No stereotyping, prejudice and discrimination in the workplace Fair recruitment, an appreciation for the EE imperative Making full use of the skills of all employees Open communication on development needs Regular discussions on performance and improvement areas Coaching, mentoring and personal development Creation of opportunities for personal growth Retention of critical skills Changing corporate culture 1. Articulate the company’s vision as a concise word picture describing what the organisation aspires to become – Keep it simple, motivational and realistic 2. Develop enterprise strategy as “what to focus on” in achieving the vision 3. Design a set of values 4. Identify behaviours needed from management and employees to execute strategy 5. Communicate all of this in coherent and compelling ways 6. Drive for total contextualisation down to an individual level – The role of every line manager is key Leadership is critical Committed leadership and clearly defined corporate values distinguish major cultural changes that succeed, from those that fail. The single most visible factor that distinguishes major cultural changes that succeed from those that fail is competent leadership at the top … . Only with leadership does one get the boldness, the vision and the energy needed to create large and difficult changes … John P. Kotter & James L. Heskett What culture change demands of Executive Leadership 1. Conceptual Leadership • Chief sense makers for the organisation – Providing insights about the business and markets • The ability to provide direction – defining a vision • The ability to bring vision to reality – Creating strategy to close the gap between vision and current reality • The skill to reconnect organisational life with organisational purpose – “Where are we going and why”; – “What is our company’s role in society”; – “What is the context and meaning of this change in strategic direction” “Without vision, direction and a sense of purpose, it’s difficult to harness the energy, passion, commitment, and perseverance needed to transform” What culture change demands of Executive Leadership 2. Personal Commitment • Leadership is in the first place, PERSONAL • Leadership is about truly living the company’s values • Leadership is setting an example, being a role model • Leadership is consistency between what is SAID and DONE. “One of the most important ways executives can demonstrate their commitment and credibility comes through how they work within their own teams” What culture change demands of Executive Leadership 3. Communication • Effective communication is the oxygen for new-breed leadership • Communication is not one-directional – Engage strategically – Listen hard – Create an environment that allows candid feedback/ criticism • Communication needs to be regular – In good times and bad – Never skip scheduled engagements • Communication has to be open and honest – Own up: take personal responsibility for hard decisions – Resist the urge to spin – it always backfires “People need to hear directly from the leader” The time has come . . . For leaders to step forward and show real leadership Questions?