What is Culture? Its Relevance to Organizational Performance The Source Of Sustainable Advantage?

2 Key Organization Leverage Points

3 The “Triple Helix” of Organizational Change

4 Strategy Strand

5 Architecture Strand

6 What is Culture? Culture is a pattern of basic assumptions that have been invented, discovered or developed by an organization as it learns to cope with its problems. It is a compendium of meanings given to the practices which have worked over time to resolve issues of external adaptation and internal integration Culture is taught to new members through myths, stories, examples, admonitions, consequences, rewards and subtle nuances of personal and group interaction. New members assimilate these assumptions, meanings and values as the "right" way to think, perceive, feel and behave The assumptions of the culture become invisible in the sense that they have dropped from awareness. Once invented, discovered or developed they become part of the "background" which is taken for granted; culture is "given" by the past and is not available for questioning in normal discourse

7 What is Culture (Continued)? At the same time, culture gives meaning to the chaotic events of life, it orders the world and tells us what to focus on, what to treat as important information and what is irrelevant noise. Without a set of shared practices and assumptions organization itself would be impossible "Scholars, consultants and managers... often get into debates about whether it is enough to change the structure of an organization... or whether one must change people's attitudes and perceptions as well. From the perspective of organizational culture one will recognize that both structure and attitudes are artifacts of the culture....Without confronting the underlying assumptions... the organization will simply revert to its prior way of operating....Culture will pervade everything Edgar H. Schein Organizational Culture and Leadership

8 The Elements of a Culture That Limit or Constrain And Could Thwart the Future Strategy Here are some place to start looking to heighten awareness of the existing culture and its match with vision, mission and strategy: The “Ten Commandments ” – thou shall and thou shall not What you pay Lip Service to, and don’t live Behaviors that are tolerated/rewarded Habits of the past that will clash with any future intentions Beliefs that are inaccurate or just plain wrong Assumptions that are untested and unsupported by facts The Mindset shaped by self-protection and fear Values lived that conflict with espoused values Energy and Mood

9 Some Examples of Cultural Elements That Limit The Cultural Virus

10 Culture Elements That Support Leaders

11 A Tip: To Support Culture Change Don’t work to “fix” the elements of the existing culture that you don’t want given your intentions, vision and future strategy Instead, live the culture, behaviors and practices you want Let the existing cultural elements that don’t support your future atrophy and die of neglect Be the change you want to see in your organization [Example: Gandhi]