2. Contents
1. Introduction to Organizational Culture
2. How Does Culture Matter in Business?
3. Practical Approach to Culture Building / Culture Evolution Framework
4. Leading Culture Change within Organization
3. Introduction to organizational culture
Culture is self sustaining patterns on behaving, feeling, thinking & believing
that determine “how we do things around here”
Self sustaining - culture has inertia
With out a really strong & persistent force, it won’t change its course
Culture can be an asset that enables, energizes and enhances human behavior
and when wisely utilized it can accelerate and sustain business results
At its worst, culture can be a drag on productivity and emotional commitment.
It can lead to under performance & undermine long term success
Every winning culture has a unique personality and soul that cannot be invented or
imposed. Company’s character needs to be discovered from within
A company’s key to success is in its heart and soul
4. Components of Culture (1/2)
Vision
Values
Practices
People
Narrative
Place
A great culture starts with a vision or mission statement
They guide a company’s values and provide it with purpose
A vision statement is a simple but foundational element of culture
A company’s values are the core of its culture
While a vision articulates a company’s purpose, values offer a set of
guidelines on the behaviors and mindsets needed to achieve that vision
Values lose importance unless they are manifested in a company’s practices
If an organization professes, “people are our greatest asset,” it should also be
ready to invest in people in visible ways
No company can build a coherent culture without people who either share its
core values or possess the willingness and ability to embrace those values
Greatest firms in the world have some of the most stringent recruiting policies
Every organization has a unique history / story
The ability to unearth that history and craft it into a narrative is a core element
of culture creation
Open architecture more conducive to certain office behaviors, like
collaboration
Place - whether geography, architecture, or aesthetic design - impacts the
values and behaviors of people in a workplace
6. How does culture matter in business? – (1/2)
Coherent Business
Strategy
Organization Culture
Structural breakdown
between corporate, BUs,
and support functions
Responsibilities and
decision rights across
groups
Performance measures
Critical systems and
processes
Value creation choices
articulated in mission,
vision, targets, and
business objectives
A company’s products,
brands, and customer
Relationships
All centered on a
coherent set of
capabilities
Behavioral norms
Long-standing attitudes
and beliefs
Lived values
Accepted style and
approach - common
understanding
Symbols - visual
identifiers and stories
How will we compete? How will we run the
business?
How will we energize
our people?
7. How does culture matter in business? – (2/2)
Culture of an organization is the principle source of its competitive advantage & brand
differentiation
Value driven organizations are the most successful organizations
Values & behavior drive culture
Culture drives employee fulfillment
Employee fulfillment drives customer satisfaction
Customer satisfaction drives shareholder value
8. Practical Approach to Culture building / Culture Evolution
Framework (1/2)
A deeply embedded culture does not change very much / very fast.
Major culture replacement requires extensive programs / structural re-design (often hard
and often fail)
In most cases you don’t need to worry about the entire culture in your organization
Whenever we deal with culture, we have to break down culture to the person level
Start with changing behaviors, not mind sets
Focus on those cultural elements that are most relevant to the specific performance
improvement behaviors with which you are concerned
Identify which Groups of individuals are likely to be in a position to influence the
relevant cultural priorities
Use formal & informal mechanisms to make people behave differently even before they
believe
Research suggests b/w 66% to 75% organizational culture change efforts fail
9. Practical Approach to Culture building / Culture Evolution
Framework (2/2)
Culture evolution framework to effectively deal with cultural change in organizations
BusinessObjectives
2.
3.
4. 5.
Culture “FROM” and
“To”
Understand current culture
Define aspirations
Define cultural priorities to be
addressed
Build on strengths
Critical few behaviors
Identify the critical few
behaviors that will make the
biggest difference toward
your cultural aspiration
Culture evolution
program
Design tailored culture
evolution program
Create implementation work
plan
Start pilot before roll-out
Ensure sustainability
Measure
progress
Identify
appropriate
ways to
measure
progress and
to understand
whether the
Culture
evolution
program works
10. Leading culture change within an organization
Underlying
assumptions
Culture at Org. is
inherently strong
This initiative is not
aimed at a major
overhaul of the
existing culture
Objective -
address concern
elements identified
through culture
audit & build a
stronger culture
Identify what our
culture lacks
Already clear from the culture
audit / ESS
Define ideal cultural
aspirations / attributes
Clarity needed on what should
we stand for to realize our vision
Behavioral indicators
outlined
Behavioral manifestations
consistent with your culture to
drive superior business results
Vision / Values
Deployment
Values are deployed with Vision /
Mission. Special interventions for
concern elements in culture
Set expectations about necessity for change / how will it result in success
Align the leadership team around a common vision and required behaviors
A culture of accountability rather than spend energy on formal cultural change
Encourage leadership to walk the talk. Clarify roles & accountabilities performance metrics
Communicate and celebrate
SuccessFactors
1.
2.
3.
4.