In a recent virtual webinar attended by 197 participants from across academia, a primary topic of discussion was the importance of accurately diagnosing organizational culture in multilayer organizations. One of the key points emphasized during the session was the necessity of capturing the unique cultural characteristics at each organizational layer, rather than averaging the ratings. Using the Organizational Culture Assessment Instrument (OCAI) as a tool, this approach provides a more precise and actionable understanding of organizational culture. Here's why averaging the ratings across the entire organization is problematic and why it's important to assess each layer individually:
- Diverse Cultural Perceptions Different organizational layers often have distinct perspectives and experiences. Averaging these ratings would obscure these diverse perceptions and mask significant differences. Example: Senior management might rate the organization's culture as highly innovative, while frontline employees might perceive it as highly controlled (Hierarchical). Averaging these ratings would result in a misleading moderate score, which doesn't accurately represent the reality for any group.
- Tailored Interventions Each layer of the organization might require different interventions to improve or change the culture. By understanding the specific cultural characteristics at each level, tailored strategies can be developed to address the unique needs and challenges faced by each group. Example: If middle management perceives a need for a more relationship-oriented culture, while senior management is pushing for a more competitive edge, different approaches are necessary to address these divergent needs.
- Leadership and Communication Strategies Leadership and communication strategies can be more effectively designed when the specific cultural dynamics at each layer are understood. This ensures that messages and initiatives are aligned with the cultural context of each group, increasing their effectiveness and reception. Example: A communication strategy emphasizing stability and control might resonate well with layers that value a Hierarchical culture but might be demotivating for layers that thrive in an innovative culture.
- Accurate Diagnosis and Monitoring Averaging the ratings can lead to inaccurate diagnoses of cultural strengths and weaknesses, potentially resulting in misguided decisions and initiatives. Monitoring cultural changes over time also becomes more challenging if the specific nuances at each layer are not considered. Example: If only the average score is considered, a significant cultural issue in one layer might be overlooked, leading to persistent problems and a lack of progress in cultural development.
- Employee Engagement and Morale Employees at different levels need to feel that their specific cultural experiences and concerns are acknowledged and addressed. Averaging ratings can lead to a sense of alienation or neglect, negatively impacting engagement and morale. Example: Frontline employees might feel ignored if their specific cultural concerns are diluted in an average score, leading to decreased morale and engagement.
Assessing the organizational culture through the lens of the Competing Values Framework (CVF) at each organizational layer is essential for an accurate and actionable diagnosis. This approach ensures that the unique cultural dynamics and needs of each layer are understood and addressed, leading to more effective and targeted cultural interventions, better alignment with organizational goals, and enhanced employee engagement and satisfaction. Avoiding the averaging of ratings is crucial to preserving the richness and specificity of cultural insights, ultimately supporting a more nuanced and effective cultural transformation process.
I'm sharing this information with a broader audience, so if you have any questions or need further clarification, please feel free to reach out to me at [email protected].