I came across this statement which said, “Culture eats strategy for breakfast”. It resonated with me and I thought of writing a blog post based on my experience and learning’s on how organization’s go about identifying, building, measuring and communicating their culture.
We have learnt a lot about strategy and there is a lot of experience, academic research and content around it. However, in relative comparison to strategy, culture as a subject needs to be understood a lot better. From my experience and learning, I would suggest that “Culture is an Organizational Capability” There are four big buckets of organizational capabilities and most organizations have traditionally focused on the three big buckets; “People”, “Processes” and “Technology” the fourth bucket “Culture” is probably yet not focused upon much. Most progressive organizations and their capability building models that I have seen (whilst working for some top companies and of other benchmark companies practices) have figured out well how to identify, build and measure capabilities in the first three buckets and not so much yet in the “Culture” bucket.
To begin with it helps tremendously if you first agree within your organization that next to People, Processes and Technology the fourth bucket of Capabilities is “Culture” Once you agree then your capability building framework will require you to look at “Culture Building” in a holistic manner. Some may argue and say that “Culture” is a sub-bucket of “People”, as people are the ones who construct, live, represent and communicate an organization’s culture. It’s not an invalid argument, but from my perspective culture goes beyond just people (Behaviors and Style), for example it involves the ways of working, physical environment and design of the workplace, social mechanisms and rituals of an organization, stories that are discussed etc. Hence it may be immensely helpful to look at “Culture” as something beyond just people capabilities (knowledge, skills, competencies, behaviors and attitudes).
Culture is a modern history concept based on a term first used in classical antiquity by the Roman orator Cicero “cultura animi” (cultivation of the soul).
However, one of the many definitions of organizational culture is the behavior of humans who are part of an organization and the meanings that the people attach to their actions. Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits. It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, and even thinking and feeling. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. And now you can see the rationale why some argue that Culture is all about just people. http://en.wikipedia.org/wiki/Organizational_culture
Anyway my perspective is a bit different, but it strongly builds on this traditional definition.
How to go about building a strong organization culture, which, despite the sustained uncertainty of the economic and social environment and the ever changing strategy – can become a major pillar of strength. My 10 recommended practical steps for leaders and organisations are as follows:
1) The first step should be to assess and identify what your current organizational culture is. It takes finding out what your culture is and how you culture is perceived by internal (employees) external people (customers, talent, investors etc). There are various tools and methodologies that are there to identify your culture. One of the most powerful techniques is facilitated focus group discussions, which are similar to identifying the brand identity of the company. Also you need to asses if your culture is something that’s kept in mind by people when designing strategies, processes, systems, workplaces, policies etc
2) Ensure that there is a clear articulation and shared understanding of the organizations vision, mission and values. Then compare the “Current Culture” and clearly articulate the “Required Culture” for achieving your vision and living the values. Do a proper gap analysis and planning of “FROM” – “TO” This is most effectively done via the process of LSIP – Large Scale Interaction Process. If this is done in isolation and only at the top of the organisation or just by the HR function it well could be a false start.
3) Avoid evolving complicated culture building frameworks, keep things simple, build on and align to existing capability building framework of the company, with clear alignment to the vision, mission and values of the company. Having a clear plan of initiatives and activities to build culture is more important than having just frameworks and models. Ensure the the main components of the culture you are building are well integrated into each and every strategy, process, system, practice, policy design of your company.
4) Integrate culture building strongly with the company’s existing learning practice and function, design and detail initiatives and activities (learning offerings, coaching, mentoring etc) and make them leader led. Avoid too much of classroom and e-learning offerings around culture building – leverage the 70-20-10 learning principle. Don’t make culture building a separate and an isolated activity.
5) Whilst designing and activating culture building interventions, don’t focus only on soft part – people and their behaviors and styles. Focus also on designing and changing the hard part – workplace design, policies, social mechanism’s (meetings and its structure, rewards and recognition platforms, etc), hierarchy (Org structure and its levels), rituals (how is success celebrated, how is news communicated, etc).
6) Make Leaders lead the culture building, but make everyone responsible and accountable for it and celebrate reward and recognize success stories and role models. Don’t make the mistake of making just HR responsible for Culture building, its every leader’s responsibility. HR should facilitate the process.
7) Have a clear measurement methodology, process, tools and techniques for knowing and understanding how progress is being made and what needs to be further improved. Custom designed surveys and NPS (Net Promoter Score) are two powerful methodologies.
8) If your organization culture is your strength and a differentiator, then make sure you have a good communication plan (internal and external) to further strengthen and build on your employer branding.
9) Use your culture building plan to profile, attract and develop talent which will help you strengthen and build the riht culture. Dovetailing your culture building plan with the talent assessment, development and acquisition strategy of the company is very important.
10) Last but not the least, culture building needs investing of some money and lots of leadership commitment and their personal time. Without this investment you will achieve little.
In my opinion and perspective, if you get the above 10 steps right, you will be able to create a culture in your organization, which will eat your competitors strategy for breakfast!!
Here is some content that, I have aggregated from my favorite HBR Blogs on Culture, I have learnt a lot from reading them and critiquing them in my own mind. Hope you enjoy reading them too:
Michael Watkins on “What Is Organizational Culture? And Why Should We Care?” suggests that, If you want to provoke a vigorous debate, start a conversation on organizational culture. While there is universal agreement that (1) it exists, and (2) that it plays a crucial role in shaping behavior in organizations, there is little consensus on what organizational culture actually is, never mind how it influences behavior and whether it is something leaders can change…. read on http://blogs.hbr.org/2013/05/what-is-organizational-culture/
John Coleman on “Six Components of a Great Corporate Culture” suggests that, what makes a culture? Each culture is unique and myriad factors go into creating one, but I’ve observed at least six common components of great cultures. Isolating those elements can be the first step to building a differentiated culture and a lasting organization…. read on http://blogs.hbr.org/2013/05/six-components-of-culture/
Carolyn Dewar and Scott Keller on “Three Steps to a High-Performance Culture” suggest that, senior executives tend to think about corporate culture as a topic that’s hard to measure and hard to change. As a result, many choose not to invest in it despite all the evidence that, when skillfully managed, culture can be a powerful and enduring source of competitive advantage…. read on http://blogs.hbr.org/2012/01/three-steps-to-a-high-performa/
Deidre H. Campbell on “What Great Companies Know About Culture” suggests that, even in this unprecedented business environment, great leaders know they should invest in their people. Those companies who are committed to a strong workplace culture tend to perform well, and now they are featured prominently in a new ranking recently released by Great Place to Work Institute. Among the top performers on the 2011 World’s Best Multinational Companies list are culturally-strong technology companies such as Microsoft, NetApp, SAS, and Google….read on http://blogs.hbr.org/2011/12/what-great-companies-know-abou/
Amy C. Edmondson on “The Three Pillars of a Teaming Culture” suggests that, today’s leaders must build a culture where teaming is expected and begins to feel natural, and this starts with helping everyone to become curious, passionate, and empathic. She says, building the right culture in an era of fast-paced teaming, when people work on a shifting mix of projects with a shifting mix of partners, might sound challenging – if not impossible. But, in my experience, in the most innovative companies, teaming is the culture….read on http://t.co/5wkbbaou2G
Jason Sylva on “The Culture Cycle” James L. Heskett‘s book The Culture Cycle describes how an effective culture can account for up to half of the differential in performance between organizations in the same business. Heskett discusses how to calculate the economic value of culture through the “Four Rs” of referrals, retention, returns to labor, and relationships with customers… read on http://blogs.hbr.org/2012/06/culture-cycle-the-unseen-force/