What is Corporate Culture and Why Is It Important?
| The organization’s set ways of approaching problems and conducting activities and its pattern of "how we do things around here." | |
| The legends and stories that people repeatedly tell about company happenings and company taboos and political do’s and don’ts. | |
| The values, ethical standards, and business principles that management preaches and practices. | |
| The intangibles of a firm’s work environment and atmosphere and the values and beliefs shared by most of the org’s members. |
| Systematic introduction of new employees in the culture’s fundamentals; | |
| Constant reiteration of core values by senior mangers and group members; |
| Have very distinct values, beliefs, rituals, operating styles, and work atmospheres; | |
| Have senior managers who persist in reinforcing the culture through both work and deed; | |
| Are committed to winning employees over to the established values and beliefs; | |
| Work diligently at causing employees to observe cultural norms; | |
| Promote good strategy execution where there is good fit with the strategy and hurt execution where there is poor fit; |
| Nurtures and motivates people to do their jobs in ways conductive to effective strategy execution; | |
| Provides structure, standards, and a value system in which to operate; | |
| Provides a system of informal rules and peer pressures regarding how to conduct business internally and how employees should go about doing their jobs; | |
| Promotes strong employee identification with the company’s vision, performance targets, and strategy. |
| A politicized internal environment; | |
| Hostility to change and to people who champion new ways of doing things; | |
| Aversion to looking outside the company for superior practices and approaches; |
| Strong management concern for the well-being for stakeholders; | |
| Receptiveness to risk-taking, experimentation, and innovation; | |
| A proactive approach to coping with the challenges of changing business conditions; | |
| A spirit of doing what’s necessary to ensure long-term org’l success; | |
| Top management that undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders; |
| Is one of the toughest managerial tasks; | |
| Involves diagnosing which facets of the present culture are strategy-supportive and which are not; | |
| Requires active leadership by the CEO and other senior executives, including pushing for new behaviors and communicating the reasons for cultural change; | |
| Entails both substantive and symbolic actions to transform the culture. |
| Replacing old-culture managers with new-breed managers; | |
| Changing long-standing policies and operating practices and making major changes in budgets and resource allocation; | |
| Leadership by example on the part of the CEO and other senior executives; | |
| Using company gatherings and ceremonial occasions to praise individuals and group that display the desired cultural traits and behaviors. |
| Are experts in the use of symbols to build and nurture a strategy-supportive culture; | |
| Serve as role models for the rest of the org and spend a lot of time coaching others how to be like them; | |
| Do a lot of managing by walking around; | |
| Have charismatic personalities and inspire others to follow their lead; |
| The management practice of informally communicating with employees; | |
| Getting out into the field to see what is happening; |
| Shaping the values and beliefs which undergird the corporate culture; | |
| Bringing culture into strong alignment with strategy; |
| A stakeholder-are-king philosophy that links the need to change to the need to serve the best long-term interests of the firm’s key constituencies; | |
| An openness to new ideas; | |
| Challenging the status quo with very basic questions—Are we really giving customers what they want? How can we be more competitive on cost? Where will the company be in five years if it just sticks with its present business? | |
| Creating events where everyone in mgt is forced to listen to angry customers, alienated employees, and disgruntled stockholders. |
| Promoting a culture that accepts continuous adaptation to changing conditions; | |
| Generating a dependable supply of fresh ideas from managers and employees; | |
| Being a leader in developing new org’l capabilities; | |
| Empowering people who are willing to champion new technologies, operating practices, better services, and new products. |
| Fast-moving, high technology businesses; | |
| Businesses where product life cycles are short; | |
| Widely-diversified corporations where opportunities are varied and scattered; | |
| Businesses where product differentiation via continuous product improvement is key. |
| Tolerating radicals’ ideas and proposals and giving mavericks room to operate; | |
| Tolerating mistakes and failures and not punishing those people whose ideas don’t succeed; | |
| Using such ad hoc org’l forms as task forces, venture teams, performance shootouts, and projects staffed with volunteers to develop and test new ideas and explore opportunities; | |
| Providing large, visible rewards for successful champions. |