Hill &. Jones, (2001) defined it as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization."
Given that definition it is easy to see why Culture is so important, and why positive, cooperative and supportive cultures offer better chances of success than negative, political, self interested ones!
Other words people use for culture are: "the glue", "the way we do things", "the heart of our company", "how we work together", "our mojo", "our biggest competitive advantage", "our rules and norms", "those things that guide our behaviour"...
The Zone uses Values as a way to align and 'unlock' the potential of an organisations culture. Values of course are not ALL that culture is, so it is important to make sure that people and customer processes also support your desired culture - and most importantly that leadership, brand, culture and customer experience all line up. We support and guide you through this process.
Has anyone quantified the importance of culture?
There are lots of studies that show how important culture is for organisational performance and today there is little argument by experts that culture and performance are linked.
A 2003 Harvard Business School study reported that culture has a significant impact on an organization’s long-term economic performance. The study examined the management practices at 160 organizations over ten years and found that culture can enhance performance or prove detrimental to performance. Books by management gurus such as Collins and Poras, Kotter and studies by consulting firm McKinsey all point to the positive impact of culture on performance.
Actual results vary from study to study, with some showing a 10-15% increase in performance with some as high as 30%. They measures used include EBITDA, staff turnover, safety record, innovation, time to market and employee engagement.
How do you start?
We recommend you start at the top. Without top level engagement and commitment culture change programmes don't work and don't survive. It is not another management fad, it is at the heart of your organisation, it is your glue and your mojo.
Typically the process will take a couple of years to embed into your DNA and even longer to become a real organisational habit.
The MacLeod report provides an interesting and informative start and focuses on Employee Engagement - the outcome of a great culture (and often used interchangeably).
MacLeod Report: http://www.bis.gov.uk/files/file52215.pdf
Think of it like moving to a healthier lifestyle - diet, exercise, work-life balance, family, friends, study, relaxation, travel - it is a multi-faced journey. It won't always go smoothly, it will seem hard at the start, but the end result is worth it - not only for you but everyone around you. Finally your change will often inspire others too - what better in life than being a role model, or a role model organisation!
Enjoy and let us know if we can help.
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