In 2014, “culture” was the word of the year
by the Merriam-Webster online dictionary.
That year various public mostly searched the meaning of “culture”. But unfortunately, with this data, one does not get information about the cause of such interest. I also cannot remember any world-important events that would potentially source such interest. However, this info stuck with me because I would have never guessed that culture could be a term of so much interest.
According to William Haviland, a world-known anthropology professor, “culture is not observable behaviour, but rather the values and beliefs that people use to interpret experience and generate behaviour, and that is reflected in their behaviour” (Minkov, M., Cross-Cultural Analysis, ch. 1, 2013). As such, culture is inseparable from society.
What is organisational culture?
If we transfer this culture – society relation to a business environment, we come to a similar relationship of organisations and their cultures. Just as there is no society without culture, there is no organisation without it as well. Figuratively speaking, organisational culture represents an organisation’s bloodstream, what reflects its exceptional importance.
As often is the case, there is no unambiguous definition of organisational culture. Some define it rather simply The way we do things around here, using the words of the late Martin Bower, who turned the globally renowned consulting house McKinsey & Company into what it is today. On the other hand, others define organisational culture in more detail, similar to the aforementioned definition.
In essence, organisational culture represents a set of values, beliefs, and behaviours that collectively reflect an organisation’s true face and spirit. Consequently, it directly affects how individuals and the organisation as a whole approach work.
Awareness of its importance
Everything that happens on the surface in the life of any organisation – from everyday events to overall business performance – is in large part an immediate effect of organisational culture. In the long run, it directly affects business results and profits, and even the organisation’s survival. Unfortunately, many managers are unaware of this and ignore the importance of knowing and managing their organisation’s culture.
Until a few years ago, I wasn’t much of an exception either. Although I have been familiar with the term since my faculty days, my professional development has long sought a path to true discernment and, in a sense, recognition of the importance and strength of the influence the organisational culture has on its internal and external environment.
Today I know that to achieve organisational goals, the organisation’s culture is as important as the strategy, if not more.
From today’s perspective, having twenty years of truly diverse work experience behind me and possessing substantial knowledge on this topic, it is unclear to me how I managed to achieve some results in the first place (let alone successfully) without paying due attention to this particular aspect of the organisational life. I would say that I have skillfully used intuition, common sense and knowledge from other complementary areas. Still, I am equally aware that many of the efforts invested over the years might have borne fruit faster and more strongly if I knew the things I know today.
Organisational culture needs to be managed
Just as people reflect projects, they also make up organisations. It is they who, with their individual values, beliefs and interactions with each other, create a culture of the organisation in which they work.
It is a mistaken belief that the organisation’s leadership creates culture. Yes, it can set the desired course of action and define an acceptable framework of conduct; however, in accordance with that or despite that, people who make up the organisation at all its levels and work positions will collectively create a dominant organisational culture and subcultures.
This shows how organisational culture needs to be consciously managed, as otherwise, it will manage us, that is, our organisation. But that does not mean that the desired type of culture can be imposed. Changing the existing culture, or establishing the desired one, is a process, not a one-off act. It requires time and conscious, active efforts on the way to achieving goals. But, at the same time, it is a path that brings multiple rewards – from a healthy work environment to better business performance.
Knowledge about organisational culture has become necessary
Traditionally, the organisational culture would be viewed as the so-called soft element of an organisation. However, more and more management experts believe that successful business management in this day and age implies and necessarily includes organisational culture. At the same time, they put its importance alongside strategy and organisational design. Therefore, knowledge about it represents a new hard skill of successful managers, whether they operate in an organisation of 5 or 1000 employees.
This is further potentiated by the so-called VUCA (Volatility, Uncertainty, Complexity, Ambiguity) age we presently live in. The more uncertain the time and circumstances in which we operate, the greater the strength and impact of organisational culture. It is up to us to choose in which direction (positive or negative) it will work.
Traditional, hard approaches to governance are no longer appropriate; slowly but surely, they are becoming ineffective. Therefore, we can no longer hope for solid results if we do not include awareness of the importance of organisational culture and efforts that directly affect its development and management in everyday business. It has become impossible to successfully manage businesses and people without acknowledging the foundations on which they exist.
The power of (positive) organisational culture
Although there are different, multidimensional classifications of organisational culture, there is also a distinction based on one dimension. One of them is strength. In other words, we distinguish between a strong and weak culture. A strong organisational culture can have both positive and negative sign. Therefore, for the culture to be a companion of the strategy and a friend of the organisation, and not work against them, the goal is to establish and nurture a positive organisational culture.
A positive organisational culture will inevitably strengthen the organisation. Some studies have shown that it can increase the organisation’s productivity by as much as 30-40%. On the other hand, a negative, toxic organisational culture can diminish it by just as much. The range between these extremes is quite extensive, and the organisation’s business results will settle within it.
Personally, I find this information to be very impressive. I think it brilliantly shows the real strength of organisational culture.
The formula for long-term business success
A positive organisational culture is a matter of conscious choice and decision. It will help both the people and the organisation to thrive simultaneously and develop in the right direction. It emphasises collectivity and unity around values while fostering mutual trust and appreciation, acting towards a common goal, authenticity of managers and other employees, innovation, outstanding results, etc.
At its core, the formula for long-term business success is simple. A strong, positive organisational culture directly affects higher productivity, which then affects greater profitability. And that is why both people and the organisation can thrive at the same time.
If you need support to properly evaluate the culture and subcultures present in your organisation and successfully initiate changes in the new direction, and you wish to enjoy the benefits of a positive organisational culture, AMM CONSULTING is the expert who can help you with that. It creates the desired outcomes by combining practical experience and knowledge about organisational culture with complementary expertise concerning other areas of organisational life (such as leadership, coaching, project management, strategy, etc.).
Choose AMM CONSULTING – because results are what counts!
