Organizational Culture John Collins

What is Organizational Culture Defines common beliefs, values, and behaviors of a group. Ground rules / governing norms are what separates these groups from random crowds. Organization culture (or aspects of it) can be invisible. The unwritten rules or ‘just how things are done around here’

Importance of Org. Culture Awareness Awareness of and managing organizational culture helps companies perform consistently and in a predictable way. National cultures can help shape organizational culture. Business is conducted by people so understanding both are essential. Positive organizational change and can not take place without transforming or modifying organizational culture.

Org. Culture and Leadership 4 elements beyond national culture Structural stability Depth Breadth Patterning or integration 5 shared assumptions describe dimensions of culture External Adaptation Internal integration Assumptions about reality and truth Assumptions about the nature of time and space Assumptions about human nature and relationships

Managing Culture & Strategic Change Companies can not make successful strategic shifts without addressing culture systems 4 Step process managers work through Grow Shared Awareness Confusion over what to do Create strategic vision Experimentation in execution Enhance flexibility Create a top manager position to question assumptions Use outside directors Hire some management from the outside Encourage flexible thinking in subordinates

Leading with Cultural Intelligence 4 Types key areas of cultural skill Cultural Drive Sincere willingness to learn and appreciate differences Cultural Knowledge Becoming familiar with another culture Cultural Strategy Applying the cultural knowledge in different environments Time, context, individualism, power distance, uncertainty avoidance Cultural Action Integrated and adapted approach

Exercise #1 Objective : Gather the team to answer these questions that can help give explicit identity to a company’s invisible culture. About what financial objectives do we have strong beliefs based on history? Are those beliefs related to one another? What other goals are important? What is the appropriate scope to competitive activity? Is there an earlier experience rooting those beliefs? Do they reflect an accurate assessment of company’s competence? What broad guidelines do we believe should guide managers in competing? Are these guidelines still valid in today’s environment? What beliefs are held about employees’ contribution to company success? What do employees expect in exchange for their effort?

Exercise #2 Objective:  Gain practice researching and anticipating challenges when doing business with other cultures. If you have access to GlobeSmart – select a country of interest (not your home country) and print out the following tips for the selected country: Establishing Credibility Presenting Ideas Effective Leadership Style Discuss the differences between your culture and how you would adapt your approach for greater success. (If you do not have GlobeSmart, Brazil is provided for you.)