How to Build an Organisational Culture
CREATING A STRATEGY-SUPPORTIVE CULTURAL FIT
- Changing culture to fit a new strategy is a tough executive challenge
- Especially when prevailing culture is entrenched & unhealth
(Senior) executives must personally lead efforts to create a strategy-supportive culture!
CREATING A STRATEGY-SUPPORTIVE CULTURAL FIT
STEP 1
Diagnose which facets of present culture are strategy-supportive & which are not
STEP 2
Talk openly & candidly about aspects of culture needing change
STEP 3
Follow talk with swift, visible action -
SUBSTANTIVE CULTURE- CHANGING ACTIONS
- Benchmarking & best practices
- Set world-class performance targets
- Stake out new business positions
- Bring in new blood, replacing traditional managers
- Make major reorganizational moves
- Change reward structure
- Increase commitments to employee training
- Reallocate budget, downsizing & upsizing
SYMBOLIC CULTURE- CHANGING ACTIONS
- Eliminate executive perks & emphasize frugality
- Require executives to spend time talking with customers & understanding their wants
- Alter practices identified as cultural hindrances
- Visible awards to honor heroes
- Ceremonial events to praise people & teams who “get with the program”
ESTABLISHING ETHICAL STANDARDS AND VALUES
- A strong culture based on ethical principles has positive impact on long-term strategic success
- Corporate ethics & value programs make ethical conduct a way of life
- Approaches to establishing ethical standards
- Word-of-mouth indoctrination & power of tradition
- Written documents
Topics Generally Covered in Value Statements & Codes of Ethics and/or Value Statement
- Customer Importance
- Commitment to Quality
- Commitment to Innovation
- Respect for Individual Employee
- Importance of Honesty
- Duty to Stockholders
- Duty to Suppliers
- Corporate Citizenship
- Protecting the Environment
- Honesty Observing the Law
- Conflicts of Interest
- Fairness in Selling/Marketing
- Using Inside Information
- Supplier Relations & Purchasing
- Corrupt Practices
- Acquiring Information
- Political Activities
- Use of Company Assets
- Proprietary Information
- Pricing, Contracting, & Billing
HOW TO IMPLEMENT VALUES & A CODE OF ETHICS
- Incorporate values statement & ethics code into employee training programs
- Screen out job applicants not exhibiting desired values & ethical traits
- Communicate values & ethics code to all employees
- Endorsement of values & ethics code by CEO
- Insist all managers be personally involved in instilling values & ethics
- Promote word-of-mouth indoctrination by peers in work situations
BUILDING A SPIRIT OF HIGH PERFORMANCE INTO THE CULTURE
- Companies with a spirit of high performance
- Emphasize achievement & excellence
- Have a results-oriented culture
- Pursue policies & practices inspiring people to do their best
- Desired outcome -
- Produce extraordinary results with ordinary people
BUILDING A SPIRIT OF HIGH PERFORMANCE INTO THE CULTURE
- Emphasize an intense people orientation
- Belief in worth of the individual
- Treat employees with dignity & respect
- Willingness to train each employee
- Strong commitment to job security & promotion from within
- Encourage employees to use initiative & creativity
- Set clear performance standards
- Utilize rewards & punishment to enforce high performance standards
- Hold managers responsible for employee development
- Grant employees autonomy to excel & contribute
- Make champions out of people turning in winning performances
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