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Organizational Culture
Is Your Culture Working for You? A Key Productivity Lever
Before assessing if your culture is working for you, culture needs to be defined. Culture is described as the social environment in which employees can thrive and achieve superior, long-term business success. Starbuck's CEO Howard Schultz has this to say on corporate culture: "If people relate to the company they work for, if they form an emotional tie to it and buy into its dreams, they will pour their hearts into making it better... I pour my heart into every cup of coffee and so do my partners at Starbucks."
What comprises culture? There are many pieces to an organization's culture, but most company environments begin with the leaders' message translated into the organization's directives or Strategic Intent. Strategic Intent (SI) is made up of several elements which help define where an organization is going and how it intends to operate while achieving its desired outcomes. The generally accepted components of an organization's SI are:
- Vision
- Mission
- Values (or Beliefs)
- Core Competencies
- Long-Term Goals
- Short-Term Initiatives
The first three items provide the direction for a company or organization's social environment or culture. The vision and mission, specifically, provide a touchstone for what the company stands for and hopes to achieve; this is what the organization is committed to doing. The values describe how the organization's individuals will conduct themselves in achieving the vision and mission set forth. These fundamentals will form the corporate message and systemic structure and process must be developed to align with these principles. If this occurs, in concert with leadership's continued modeling of the values, a robust and extraordinary culture will evolve. Individuals in an organization will understand what they are working for and why, and will commit to high performance to achieve something greater than themselves.
Despite the somewhat obvious need to gain alignment on the organization's strategic goals and how they'll be achieved, this component is oft neglected. This is especially true as an organization undertakes a course which is a directional shift from their previous path. The leaders may adjust financially and operationally, but , if needed, not shift culturally. The latter is the people element---the productivity lever. This begins with the leader; he or she needs to check their current message... is it aligned with their future direction? If not, what in the message necessitates further explanation or discussion to stay in alignment? Does the message need to shift? What does the message need to be to drive the results necessary? How can a win-win be created between the company's new strategy and the goals of the individual and their view of the company?
Once that exercise is complete, an inventory needs to be made to determine if the new direction is supported by the existing structure -- policies and processes. If not, how can they come into alignment? Does new structure need to be created?
Finally, the company's core competencies need to be assessed relative to the achievement of the goal. Does the existing culture support development and growth of these competencies? If not, what needs to shift?
Strategic Intent (corporate message) Leadership must reinforce message verbally and through modeling supported behaviors. This is the foundation for the culture to form.
Structure and Process built or realigned to support message Structure and process must be put in place to reinforce expected behaviors and to support high standards. Must dynamically check policies and processes for alignment with SI. Culture evolves from the values supported by the SI as well as the gaps that exist.
Core competencies reviewed to assure alignment with achievement of strategic goals. Assume that, within the organization, core competencies exist to meet the demands of the enterprise to be undertaken. Are those competencies well-supported by the existing culture?
Assure that, within in the organization, the core competencies exist to meet the demands of the enterprise to be undertaken. Are those competencies well-supported by the existing culture?
As any organization evolves or shifts to respond to its market, competitors, technological enhancements or any other opportunity or threat, it needs to always check the state of its culture. Can the culture of today support the challenges of tomorrow? If it can, is the structure and process support in place to reinforce the culture in the way you need it to? Said differently, your corporate message sets a direction, but your policies can , for instance, be at odds with your company's cultural values.
An aligned and robust culture does not guarantee success in meeting organizational requirements, but, without it, the company, department, or team is missing a key performance lever. Fortune magazine surveyed businesses with stellar reputations and drew this conclusion: "The one thing that set the top-ranking companies in the survey apart is their robust cultures."
So, back to the initial question, is your culture working for you? This question does not need to be asked in the context of change or risk, it can be asked at any time. Is the social environment of the organization (or department or division-specific culture) in support of your desired outcomes? Is the message a good one, but the structure of support for the message non-existent as you move down the organizational ladder? What would it take to create a strong, cohesive vision and mission, supported by the values necessary to exceed expectations?
It takes leadership and attention to the message. It takes a strong knowledge of the core competencies required to achieve the results and the corporate values necessary to drive behavior in support of those competencies. It takes constant nurturing of the message and the culture it creates. It takes recognition that as the organization shifts, cultural adjustment is as central to achieving peak execution as operational and financial fine tuning.
If this discussion on culture, and its associated assessment, have spurred you to investigate the alignment between these and your business objectives, Cain-Stanley & Company, Inc. can aid you in understanding how a strongly aligned culture can support you in the high performance you seek. We can assess the current culture relative to your business goals and offer suggestions for improved alignment. Additionally, we can support your organization further by aiding in the implementation of the suggestions. We are passionate about helping businesses create a win-win environment that supports the objectives of the individual and delivers the results necessary to the organization.
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