Leadership, Culture, Values & Trust PART 1 - Newsletter 6

‘Amazing things happen when you make people feel they are valued as individuals”. Herb Kelleher, President Southwest Airlines

What is an organisational culture? I like the statement made by an executive a number of years ago: “I can’t define it, but I know it when I see it”.?

Perhaps more useful is the statement that: “Organisational culture refers to the system of shared meaning held by its members that distinguish that organisation from another” (E.H Schein, Organisational Culture and Leadership (San Francisco: Jossey-Bass, 1983) p. 168). This system of shared meaning is comprised of a core set of values, which together, constitute an organisation’s culture.?

Each organisation has a dominant organisational culture, the core values of which are shared by the majority of the organisation’s members. This does not however, mean that numerous sets of sub-cultures do not exist. It is the dominant culture that gives an organisation its corporate personality. A strong culture is one where the core values are intensely held and widely stated.?

It is clear that organisational values cannot just be aspirational alone. They must also be simple and measurable. If they cannot be defined and measured, the employees are far less likely to believe in them and then “drive them”. It would be a shame not to optimise an organisation’s culture when all the organisation has done is fail to articulate and break down its values into measurable components.?

Organisational cultures always vary, but are essentially an outward expression of a core set of common internal characteristics:

1.?????Corporate history: the organisation’s trajectory inevitably creates patterns of behaviour for good or for bad. Savvy employees see this for the positive and are attracted to companies that rank highly in trust and loyalty.?

2.?????Dynamics of emergence: cultures change over time and evolve.

3.?????Human evolution: these affect a culture, whether for positive or negative.

4.?????Mix of employees: and their resultant interaction.

5.?????Organisational expressions: such as messaging, corporate communications etc.

In essence, a corporate culture starts with the combined sum total of the value of its people and the resultant power generates the fuel for the forward propulsion of the company.

The seeds of a corporate culture are sown from day one. A crucial part of a successful organisational culture is ensuring that its employees are satisfactorily motivated and engaged. Every organisation is only as good as its staff. To really excel, a company needs people who share the corporate vision with supporting commitment. Trust is a big aspect in building a “culturally astute” business. Employees must be able to trust their boss and the vision set for the company. Conversely, bosses have to be able to trust their employees to execute the plan they envision the business needs. Mutual confidence is therefore essential.?

The most successful companies in the world are those, which make their entire team feel like they are a critical and integral part of the company’s success. This requires creating a culture of accomplishment and sharing in the ups and occasional inevitable downs. A corporate culture is truly cemented when the whole company feels like it has a purpose.?

A good corporate culture needs a strong leader, who in turn, needs good followers and an entrenched environment where positive cultural influences can develop.

Leadership models have changed over the years from (a) dictatorial (command and control); to (b) inspirational (hero); (c) supportive; to (d) equitable leadership which values everyone in the organisation regardless of position.?

Leadership is a key influence on maintaining and developing an organisation’s culture. Leaders need to understand that even the strongest teams need to feel appreciated. A company’s inspiration and drive must filter down from its leader to its people who operate at the “coal face”. Despite all the ups and downs of corporate life, if the employees share the corporate passion, they are much more likely to work together for the common good. As with any successful business, employees drive the organisation through the vision and culture set by the boss.?

A company is only as good as the sum of all its parts: its people, its culture and its practices. If cultural values are not constantly measured and connected to the company’s performance i.e. performance evaluation and reward system, those values will not resonate and vibrate throughout to enable the dynamics of success.?

All levels of a company must be balanced in the corporate culture through a conscious and ongoing blend of the values held dearest to the company. With all the right elements held in place:?

1.?????Ingenuity is given the space to foster and overcome adversity;

2.?????Employees tend to want to be virtuous rather than negative; and

3.?????A spirit of quality and achievement will tend to permeate.?

See you in July