Thursday Edition

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What's Culture Got To Do with It?

A beautifully crafted strategy can fail when the employees in various divisions within an organization clash. Logically, we think that strategy should drive behavior, but, in reality, it's the culture—underlying norms, values, belief systems—that dictates how effectively people work together. Employees' behavior has direct impact on the bottom line, costs, revenue streams, level of productivity, customer satisfaction, even the brand—every aspect of the business is affected. If strategy and culture are not aligned, the culture may support behaviors that conflict with what has to get done—and actually block execution of the strategy.

If your strategy is to create synergies and economies of scale, while the culture is one where people work autonomously and in silos, the strategy could be impossible to achieve. And it only gets more complicated in a world where mergers, acquisitions, and alliances shape the corporate landscape. We know all too well that even with a respectful courtship, the expected benefits of merging two corporate cultures often fail to materialize. If only companies could simply snap together like plastic building blocks!

The most important asset in every company is the esprit de corps: the motivation and passion of each employee ... and ... their willingness to collaborate together on whatever strategic projects are critical for growth. At a time when 55% of the U.S. workforce is "actively disengaged" in their work at an annual productivity cost of $328 billion, understanding this esprit de corps element can greatly increase financial success. (Gallup Research, 2005.) How do you change this and bring culture into alignment with strategy?

Juli Ann Reynolds posted this on 02/16/07.

Comments

Tom,

I work in Bangalore, India where the culture is deeply rooted in the DNA. With the emerging Globalization trends happening here, the society is going through a transformation and so is the “work culture”.

With the advent of American culture brought in by thousands of American companies, there is direct clash between both cultures. Several customs and practices are so different that it might have adverse effects. For egs:-Women employees feel insecure when company parties serve alcohol and they react by avoiding the parties altogether.

Hence, I feel the company cannot define one culture worldwide. It should clearly define and emphasize “Values” and tenets and leave the work culture to be decided by the employees.

What do you think?

Thanks,
Arun

Posted by Arun.PC at February 17, 2007 1:30 AM


Great question Juli Ann and I think the answer is all about leadership.

‘Culture’ and ‘alignment’ will never be compatible unless leaders CREATE the culture through leading by example (and by that I mean leaders at the top and at every ‘level’ of the organisation) Front line staff are far too smart to work hard if leaders do not lead by example. Demonstrable examples of leadership underline and embed ‘culture’ and are the best way to get people ‘onside.’ Leaders must have integrity, humility and empathy with front line staff. That will ensure front line staff respond in the way we want them to. Otherwise the front line staff will do exactly as their supposed ‘leaders’ do and that is to go through the motions ticking boxes.

Integrity breeds integrity – humility breeds humility - lies breed lies.

Posted by Trevor Gay at February 17, 2007 5:46 AM


If the strategy depends on collaboration, communication, participation and inclusiveness then all barriers to that have to be identified and removed. They can be physical walls or walls created by organizational design and structure, or walls created by how one person behaves towards another. But taking them down would be the first step to alignment.

Posted by mary wynne-wynter at February 17, 2007 10:48 AM


Hate to mention the name Jim Collins in the same room as Tom but his 'solution' is to get the right people in the organization and the wrong people out before trying to implement a strategy. Motivating / hearding the wrong people is a near impossible task and better avoided in lieu of fitting the right people with a strategy they get and believe in.

Posted by Steve at February 18, 2007 10:31 PM


Read Robert Dilts' book From Coach To Awakener. He discusses at length the importance of connecting vision with identity, with values and beliefs, and with skills and behaviours. The whole set has to match and different leadership skills are required at each link in this chain to support, encourage, and challenge organisations and individuals.

Posted by Sean Owen-Moylan at February 19, 2007 4:29 AM


Tom
Do you think the culture of advertising agencies prevents them from understanding the changing marketplace and who makes the buying decisions? I recently watched the Super Bowl, hyped for its commercials, and while none were particularly outstanding, what struck me was that they were not only aimed at men, but many would actually alienate women.

Since the viewership of the Super Bowl is 40 percent women, this seems like a very poor business decision.

I wrote an article posted on marketingprofs.com titled, "Advertisers Are Still Missing the Mark with Women."

I know you have long talked to corporations about women being economic opportunity number one, but it appears most still don't get it.

What are your thoughts?

Posted by Gerry Myers at February 19, 2007 6:39 PM


Has anyone read, "A Journey into the Heroic Environment" by Rob Lebow. This is an excellent outline of a people system and culture change methodology geared towards 8 principal values. These values were determined by over 17,000,000 people in 40 different countries. Great read.

Posted by Ken Andrus at February 20, 2007 8:18 AM


I think it is Schein who said that in mature organizations there is little time spent thinking on organizational culture. The culture that is, is the the one that brought the organization where it is today. So there is no need to do something about it. If it ain't broke why fix it?

Looking at one’s culture is looking at oneself. Taking a good look in the mirror is always difficult. The leader has a big impact on the culture, so he or she has to look first. Reflection and time to do so are needed, as are courage and honesty.

Posted by Pepita at February 20, 2007 9:25 AM



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