Assessing Culture, by Richard Nelson

Developing a clear understanding of an organisation's culture can be problematic. Over time, the culture will evolve as the organisational leadership, external market forces and environmental pressures change. Our article on leadership and culture describes some of the main themes involved with such cultural development.

So why would an organisation consider assessing its culture? Generally, the main cause is the need for change. Examining culture for its own sake is usually only of interest to academic researchers. Without a strong reason to change, it is difficult to generate interest for research into culture among managers and employees. Cultural assessments that are conducted without a robust purpose risk being superficial and possibly inaccurate. This is because managers' and employees' lack of interest tends to reduce quality input into the process.

However, when an organisation is facing strategic challenges and/or the need for performance improvement, it is critical to be able to make informed choices about the actions it should implement. Reviewing the dynamics of the market, especially the new opportunities, is essential, but so is an objective assessment of the organisation's internal strengths and weaknesses. The organisation's capability to take advantage of market opportunities will be heavily influenced by its ability to understand its culture. In the face of changes in the market some cultural characteristics can help an organisation achieve its aspirations; others may be more likely to be obstacles.

So for an assessment of culture to be worthwhile it is important to have a clear purpose such as a determination to reposition market focus, to make some other strategic change or to improve the organisation's effectiveness. Culture is the subject of a wide variety of definitions:the way we do things around here, the underlying beliefs and assumptions that drive people's behaviour in the organisation, the work practices and habits that shape action and so on. Clear definitions are useful but it is critical to understand that culture is not an isolated stand-alone feature of organisational life. Culture interacts with other organisational domains that influence its character as it influences theirs.

Nelson Consulting's Organisational Effectiveness Questionnaire (OEQ) assesses culture. It is based on our Model for Organisational Integration, which focuses on organisational effectiveness; the ability to maximise results within the competitive external environment. Accepting the organisation as an open system that has to interact and adapt to the forces and pressures in its chosen markets, the Model consists of five major domains: Business Purpose and Direction, Organisation Structure, Processes and Systems, Culture and People.

The OEQ is built in relation to the particular needs and circumstances of a specific organisation. Culture is assessed by examining features such as work practices, habits, beliefs and assumptions. It is also more fully understood by assessing those elements of Business Purpose and Direction, Structure, Processes and Systems and People that shape and influence culture. The OEQ is designed to enable those involved in the assessment to review current reality in relation to the organisation's desired competitive position.

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