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Being Proactive About Culture, by Richard Nelson
The editorial from Issue Eleven of our newsletter.
Our experience and research suggests that organisational culture is a domain that is risky to leave untended. Businesses that ignore it will be less successful than those that treat it with respect. This is because culture is created by people’s shared experience, which happens whether or not the leadership attempts to address the development of culture.
In the early stages of an organisation’s development, when size is likely to be small, the founder’s influence is more pervasive and the culture will be more likely to be shaped in line with their desires. But as the organisation grows, the founder’s personal influence will be naturally diluted across increasing numbers of people. If the leadership of the organisation changes, it can have difficulties in engaging people in a new strategic direction if the nature of the culture has not been considered.
So what are the implications for management? Clearly, recognising the importance of culture as part of the agenda of managing the organisation is critical. This requires managers to understand the culture if they are to harness its characteristics in the pursuit of their objectives. If a substantial change is planned then understanding the detailed nature of the culture becomes imperative for success. Culture involves working practices and the underlying beliefs in relation to such practices. It will also include the habitual style of engagement that the organisation has operated with its stakeholders, most critically its customers.
Managing change without understanding the culture is likely to negatively affect the morale and motivation of employees and damage the customer relationships that the employees have established. Being respectful and proactive about the culture can reap big dividends. Managers who demonstrate an understanding of the culture are more likely to quickly engage the commitment of their people to the goals they want to achieve. If they want to implement substantial change through a large organisation, then they need to update their current understanding of culture with meticulous detail. This will enable managers to use the relevant aspects to help the change and modify any resistant parts to ensure an ultimate fit.
Click here for a profile of Richard Nelson.