Organizational Culture Implementation - Principles and Practical Tools (Part Two)

What are the keys to effectively implementing organizational culture? Who are the stakeholders in my process?

In the previous article, we described a company that recognized the need to reexamine its culture. It also identified the foundational elements of its culture and how it aligns with its business purpose. How is this accomplished? Where does one begin? I will present a number of principles:

Let's begin with right timing

Typically, the need to define organizational culture arises in two scenarios. The first is when a company grows. While the exact number of employees isn't critical, the dynamic encountered is one where the founders, who were instrumental in shaping the culture based on their own personalities, are no longer able to have a daily hands-on interaction with all or most employees. In some cases, they may have traveled to the US to expand the business. Often, at this stage, there will already be managers acting as intermediaries between them and the rest of the staff. The second scenario is when there's a need to support a strategic change, as demonstrated in the previous article – such as the shift from hardware to software, for example. In this case, we establish organizational culture as the driving force that enables the desired organizational change.

Is it right to invite all employees to be part of this process?

In smaller companies at their inception, it's quite common to involve all employees to discuss questions like "What sets us apart" and "What will ensure the success of our vision." In more established or more centralized companies, the work is expected to be driven by the management team. Regardless, a business is not a democracy, and the responsibility for decision-making must rest with the company's management. Another effective variation is to "invite" key individuals from various groups and different management levels to participate in the process. The common denominator among these individuals is that they are identified as outstanding employees who embody the company's values well – serving as role models for many others. There's no doubt that involving non-executive key personnel in the process will enhance the perceived impact of the outcomes and ease the implementation of new culture or values.

This article won't delve into the internal process of defining organizational values. This process involves a comprehensive analysis of the business vision alongside discussions about more abstract concepts like "What makes us unique as a company" and "Which behaviors we appreciate and which ones we don't." The process, when done effectively, might also include dilemmas of behaviors that present conflicts between two values – aiming to define the company's authentic DNA sharply and clearly. Here's a link to a post that describes in detail the process of determining a company's values.

Leadership is what you do, not on what you say

Let’s think of a leader who strongly advocates commitment to product quality delivered to customers. There is a deal on the table which might change the course of the company and she needs to decide whether to supply an undercooked product in order to meet delivery deadlines? Will she stick to her values or compromise her principles?

Another leader commits to his team that one of the company's three values is teamwork. But this leader is also engaged in nasty political battles with the other executives. Can a culture of teamwork develop within such a group?

Continuous discussions within management teams and a constant "sensing" of human resources are vital to uphold that "walk the talk" principle, and to correct course when there's a disconnect between the declared values and actual leadership behavior, are essential.

Translating values (which are at a high level) into behavioural models

Organizations use terms like "competency model" or "success elements" to specify which behaviors align with the company's culture and lead to personal and organizational success. These behaviors are employed in various stages, such as recruitment as a sorting factor (interview questions will be based on the same behavioral model derived from the company's values), as a measure of excellence (selecting outstanding employees), as a criterion for promotion to more senior roles, and so on. This is a crucial key to embedding organizational culture since, unlike slogans on walls or computer screens, encountering culture and values in key processes (how interviews are conducted, who gets promoted, who was granted a trip to Paris by the CEO) indicates that the organization takes its values seriously.

Do the rituals and routines practiced within the organization reflect its culture and values?

If your organizational culture is rooted in a strong results-oriented approach, it's vital to ensure that the feedback people receive and their compensation packages reflect their individual achievements. In one of the technology companies I've worked with, which is among the most successful in Israel, the organizational culture is built on an exceptional level of trust between individuals and the company, as well as long-term relationships (minimal turnover in a competitive market). This organization emphasizes consistency and loyalty, so the most significant event of the year isn't the beach party or the grandiose kick-off. The most elaborate and meaningful event is the one where employees are recognized for completing 15, 20, and 25 years in the company. In an industry where the leading motto is that staying in the same place for more than five years is "dull and weak," this organization generates a true identity and uniqueness that undoubtedly contributes significantly to its business excellence.

The physical and technological dimensions certainly play a role – this could easily be the subject of a full post…

Most of the discussion so far has focused on behavioral and leadership elements. The design of the physical space indeed holds significance in the implementation of culture: an organization structured with long corridors, double-occupancy rooms, and enclosed meeting rooms will support different values compared to an organization with an open space layout and glass-walled meeting rooms. In some organizations, the hierarchy is reflected by the size and location of the VP’s personal office, while in others, all employees, including the CEO, share the same space. The latter promotes much more open communication across all levels. Leadership in such an environment will be based more on leadership qualities (vision, emotional influence), unlike traditional management solely based on authority.

Technology – the variety of tools and applications for planning and collaboration is immense. The choice of tools adopted also has a noticeable cultural impact. Whether to use stable, top-secured tools or to prefer startup-style tools characterized by innovation and advanced user experience. Mac or PC, iPhone or Samsung – each decision carries a cultural implication, and it's important that it aligns with the other behavioral and leadership elements.

It's hard to overstate the impact of organizational culture on company's business success. I believe it's somewhat analogous to the link between an individual's personal values and their achievements – individuals with different sets of values can attain high levels of success, even within the same profession. This happens when values are well-defined, consistent over time, and aligned with the individual's personal vision. Whether you're a manager or a human resources professional, always prioritize organizational culture.