The strength of corporate culture was somewhat ignored until recently when certain organizations (like Zappos and Google) began to dominate their markets. It was around that time that those in power started actually reading the science behind why these two companies focuses on culture might be why they were performing so well.
According to John Coleman (2013), the six components of culture are: Vision, Values, Practices, People, Narrative, & Place. Here is a favorite quotes from this article:
"The benefits of a strong corporate culture are both intuitive and supported by social science. According to James L. Heskett, culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.” And HBR writers have offered advice on navigating different geographic cultures, selecting jobs based on culture,changing cultures, and offering feedback across cultures, among other topics."
A Few Big Ideas (The nature of management, 2015)
Management often gets a bad rap, because leadership sounds much more interesting and positive, but it's management that defines an organization's culture usually. It's how the goals set by the leaders is accomplished that translates into culture.
Just a quick reminder: Management is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.
Effectively means having the intended result.
Efficiently means accomplishing the objectives with a minimum of resources.
Culture (Assumptions + Behavior) = Results
The assumptions and beliefs of employees drive behavior.
The collective behavior of employees determines results.
The results measure performance and indicate if strategic business objectives have been achieved.
📚 Read anything on HBR in this topic area: https://hbr.org/topic/organizational-culture
🎬 Watch Michael Margolis' Welcome to Get Storied and think about how powerful the stories we tell within and about our organizations can be. His vision makes me so happy (you can download a free eBook on the topic at that site). It's part of a movement focused on humanizing business. 🎧 If you understand the storytelling angle, Listen to The TED Radio Hour: Identities (each part is <15 minutes of brilliance)
📄 Explore The Community Toolbox - especially Ch. 9 Organizational Structure: An Overview
📄 Read Strong vs. Weak Organizational Cultures: Examples & Differences
🎬 Watch a relevant TED Talk. This week I recommend:
Obeng, E. (2012, June). Smart failure for a fast-changing world. [Video File]. Retrieved from https://www.ted.com/talks/eddie_obeng_smart_failure_for_a_fast_changing_world
Hill, L. (2014, September). How to manage for collective creativity. [Video File]. Retrieved from https://www.ted.com/talks/linda_hill_how_to_manage_for_collective_creativity
🎧 Try Harvard Business Review's IdeaCasts (you can click RSS then use Ctrl+F to search all episodes easier). This lesson #415 The Future of Talent Is Potential and #462 Ethical CEOs Finish First are relevant for our OB topics.
The inclusive workplace. (2015). In B. A. Brown (Course Materials), LDRV 401: Leadership in diverse environments. University of Arizona.
The nature of management. (2015). In R. C. Wittman (Course Materials), LDRV 404: Budgeting and Financial Management. University of Arizona.