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The Impact of Corporate Culture on the Execution of Strategy at a Telecommunications Company

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The Impact of Corporate Culture on the Execution of Strategy at a Telecommunications Company THE IMPACT OF CORPORATE CULTURE ON THE EXECUTION OF STRATEGY AT A TELECOMMUNICATIONS COMPANY Joanna P. Lee B. Sc. in Computing Science, Simon Fraser University, 1997 Gary Perkins B. A. in Psychology, Simon Fraser University, 1999 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration Management of Technology Program O Joanna P. Lee and Gary Perkins 2005 SIMON FRASER UNIVERSITY Spring 2005 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the authors. APPROVAL Name: Joanna P. Lee and Gary Perkins Degree: Master of Business Administration Title of Project: The Impact of Corporate Culture on the Execution of Strategy at a Telecommunications Company Supervisory Committee: Dr. Mark Frein Senior Supervisor Adjunct Professor, Faculty of Business Administration Dr. Michael Brydon Second Reader Assistant Professor, Faculty of Business Administration Date Approved: SIMON FRASER UNIVERSITY Partial Copyright Licence The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its circulating collection. The author has further agreed that permission for multiple copying of this work for scholarly purposes may be granted by either the author or the Dean of Graduate Studies. It is understood that copying or publication of this work for financial gain shall not be allowed without the author's written permission. Permission for public performance, or limited permission for private scholarly use, of any multimedia materials forming part of this work, may have been granted by the author. This information may be found on the separately catalogued multimedia material and in the signed Partial Copyright Licence. The original Partial Copyright Licence attesting to these terms, and signed by this author, may be found in the original bound copy of this work, retained in the Simon Fraser University Archive. W. A. C. Bennett Library Simon Fraser University Burnaby, BC, Canada ABSTRACT Corporate culture can be either an asset or a liability to an organization depending on the nature of the internal and external environments within which a company finds itself. This paradox can pose a daunting obstacle for those organizations seeking to navigate increasingly competitive industries. In this paper we study a telecommunications company faced with the need to develop a sustainable high-performance culture yet burdened with an aging, unionized workforce among other challenges. We consider organizational culture theories by Beer and Schein before concluding that the environment must first be stabilized before integrating Beer's organizational capabilities to complement the already ongoing economic value driven change. The objective of this initiative is to further harness the human potential within the company and leverage not just the technical skills and experience but the attitudes, beliefs, and values that will confer long-term competitive advantage. DEDICATION Joanna P. Lee To my wonderful husband Pat for his unlimited patience, support and sacrifice as I pursued my goals. I could not have made it through these last two intensive years without you. Your respect and love have allowed me the freedom to grow and become a better person. Also, to my dear friend Ana, who has always believed in me. Your support and encouragement through all the tough times meant so much. Thank you. Gary Perkins To my beautiful wife Lisa for her unwavering support in all that I do. I simply cannot put into words the appreciation I have for your assistance and sacrifice in helping me to achieve my objectives. Your strength and determination are truly inspirational. And to my family and friends, thank you for your encouragement and for being so understanding. May your lives be blessed with health, happiness, and success throughout your many endeavours. ACKNOWLEDGEMENTS We would like to acknowledge the support from our employers and supervisors throughout the course of study for the MOT MBA program. We would also like to thank all the professors of the MOT MBA program for their insightfulness, dedication and willingness to educate and assist us in becoming better leaders. Special thanks go to our project supervisor, Dr. Mark Frein, and our second reader, Dr. Michael Brydon, for their guidance and support in completing this project. TABLE OF CONTENTS Approval ......................................................................................................................................... ii ... Abstract ......................................................................................................................................... 111 Dedication....................................................................................................................................... iv Acknowledgements .........................................................................................................................v Table of Contents........................................................................................................................... vi ... List of Figures ............................................................................................................................. VIII List of Tables ..................................................................................................................................ix Glossary ...........................................................................................................................................x 1 Introduction ..............................................................................................................................1 2 External Analysis .....................................................................................................................5 2.1 Economic Environment .................................................................................................. -5 2.1 .1 Competitive Environment ................................................................................ 6 2.1.2 Competitive Strategy ...................................................................................... -7 2.2 Political, Legal and Regulatory Environment ................................................................. 9 2.3 Technological Environment .......................................................................................... 12 2.4 Cultural and Sociological Environment ........................................................................ 13 2.4.1 Consumers ..................................................................................................... 13 2.4.2 Corporations .................................................................................................. 15 3 Internal Analysis ....................................................................................................................17 The Corporation ............................................................................................................. 17 Organizational Structure ................................................................................................ 20 Technology and Operations Structure ........................................................................... 21 Organizational Strategy .................................................................................................22 Technology and Operations Strategy ............................................................................25 Organizational Culture ..................................................................................................27 Technology and Operations Culture ..............................................................................31 Record in Achieving Financial Objectives ....................................................................32 Employees ..................................................................................................................... 35 Union .............................................................................................................................36 Employee Skills and Morale .........................................................................................40 Recent Downsizings ......................................................................................................43 RecognitionRewards Systems ......................................................................................44 Training Programs .........................................................................................................46 Recent Organizational Changes ....................................................................................47 Core Competencies ........................................................................................................50 3.16.1 Employee Knowledge and Skill ..................................................................... 51 3.16.2 Physical Technical Systems ..........................................................................
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