sustainable culture

CREATING A SUSTAINABLE ORGANIZATIONAL CULTURETERM PAPER – ORGANIZATIONAL BEHAVIOUR

ORGANIZATIONAL BEHAVIOUR II - TERM PAPER - ORGANIZATIONAL CULTURES

O.Amulya

T.Sairam Singh

What Is Organizational Culture?


Characteristics:

1. Innovation and risk taking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

What Is Organizational Culture? (cont’d)


What Is Organizational Culture? (cont’d)


What Is Organizational Culture? (cont’d)Culture Versus Formalization◦ A strong culture increases behavioral consistency and can act as a substitute for

formalization.

Organizational Culture Versus National Culture◦ National culture has a greater impact on employees than does their organization’s culture.

◦ Nationals selected to work for foreign companies may be atypical of the local/native population.


What Do Cultures Do?


Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-

interest.

4. Enhances the stability of the social system.

What Do Cultures Do?


Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and mergers

Keeping Culture AliveSelection◦ Concerned with how well the candidates will fit into the organization.

◦ Provides information to candidates about the organization.

Top Management◦ Senior executives help establish behavioral norms that are adopted by the organization.

Socialization◦ The process that helps new employees adapt to the organization’s culture.


Sustaining Organizational CultureThree forces play a particularly important part in sustaining a culture

Selection

Actions of top management

Socialization activity




The Building Blocks of a Sustainable Organizational Culture…


A Shared and Compelling Purpose

A Captivating Vision

Shared Core Values

Artifacts and Traditions


Why the business does what it does…the “purpose” or “mission” of the organization represents the reason why the business is here

It is either the glue that binds people or the solvent that pulls them apart…Purpose binds the collective efforts of individuals to a common and captivating reason for performing…it provides a shared sense of identity and self worth

A Shared and Compelling Purpose ….

A Captivating Vision ….

It’s your organizational aspirations…Vision is the dream of the organization…it the journey and the ultimate destination for what you do!

It funnels creative energy toward a singular destination…Vision provides a compelling goal that channels the forces of an organization’s

It has the power to inspire…A vision inspires, motivates and


Shared Core Values ….They are the beliefs that frame how a business acts…Values are the shared beliefs your organization has…they are the foundation for your identify

They align purpose and vision by driving attitude and behavior…Values are a tool that align the attitudes and behaviors of an organization…values drive attitude… attitude influences behavior… and behavior drives outcomes.

They establish synergy between different people and their organization…Values help create an environment of “like-minded” individuals


Artifacts and Traditions ….They are the physical manifestations of your culture…artifacts are the tangible physical reminders of your mission, vision and values

Hall of Fame New York Athletic Club, NY, NY

Wooden Award – Los Angeles Athletic Club, Los Angles, CA

They are are the practices, rituals and standards that portray your organization…traditions codify who you are to employees and customers

World Class Games – World Class Fitness, Russia

Gods & Goddesses Awards – Telos Fitness, Dallas, TX

Star Service Awards – ClubCorp, Dallas, TX



Five Steps to Creating a Culture that Sticks… a Case Study


Step #1: Match Culture and Strategy

Before embarking on a strategy understand whether it aligns with the culture…ask yourself and your team, “Will the culture support the strategy”…if not something has to change!

Strategies: Hyper-growth in maturing market

Develop new revenue sources

Streamline the organization

Cultural Hurdles: Bureaucratic, Autocratic , Siloed, complacency

Challenge: to established empowered teams, to become more transparent, to spark innovation, to install ownership and accountability for performance

Step #2: Focus on a Few Critical Shifts in Behavior

What behaviors were most affected by the culture, both positive and negative…

Positive: Pride in company

Passionate talent

Desire to be the best

Negative: Siloed and no trust of others

Lack of communication and transparency

Lack of innovation

The small changes which we made visible to everyone…

Open door, regular sharing of information

Creation of intercompany teams

Establishing framework of trust by trusting without question


Step #3:Honor the Strengths of the Culture

Our Strengths:

Pride

Passion

Tenure

Industry leaders

How we shared stories:

Monthly stories on internet

Traveled to clubs and share stories

One story at every meeting at every level

One-on-one storytelling with cultural leaders

By honoring those who exemplify the culture


Step #4: Integrate Formal & Informal Intervention Some Formal Intervention Strategies taken…

Codified the culture with a mission, vision and values

Created physical tools to share the mission vision and values such as screen saver on every computer, coffee cups for each employee, pens with the motto, posters in the club and a culture page on the internet

Established transparent metrics and then a competition for the clubs based on those metrics

Had formal kick-off meetings to introduce the culture

Discussed the culture in monthly letter from the CEO and in the quarterly general employee meetings

CEO and members of the culture council visited clubs and told stories

Created leadership committee, innovation committee, culture leaders and change committee

Some Informal Intervention Strategies taken…

Council members became role models

Unexpected recognition for employees who modeled the culture

Created cross-functional work groups

Social outings for the leaders

Executive committee became the key influencers

Right gossip was encouraged


Step #5: Measure & Monitor Cultural Evolution What should be measured and monitored…

Business performance…KPIs

Critical behavior…what are people exhibiting

Milestones…outcome of and process toward goals

Underlying beliefs…attitudes

What we measured, monitored and recognized…

KPI’s weekly, monthly and quarterly (usage %, member survey scores, employee survey scores, sales, EBITDA margins, revenue %)

People’s behavior (360 feedback, quarterly evaluations, observation, involvement, etc.)

Milestones (outcomes of initiatives and also process of initiatives)

Attitude & beliefs (observation and outcomes)


Case: google


Google CaseIt’s really the people that make Google the kind of company it is. They hire people who are smart and determined, and favor ability over experience. Although Googlers share common goals and visions for the company, they hail from all walks of life and speak dozens of languages, reflecting the global audience that they serve. And when not at work, Googlers pursue interests ranging from cycling to beekeeping, from Frisbee to foxtrot.

Google strives to maintain the open culture often associated with startups, in which everyone is a hands-on contributor and feels comfortable sharing ideas and opinions. In our weekly all-hands (“TGIF”) meetings—not to mention over email or in the cafe—Googlers ask questions directly to Larry, Sergey and other execs about any number of company issues. Googles offices and cafes are designed to encourage interactions between Googlers within and across teams, and to spark conversation about work as well as play.



In Conclusion ……Culture represents the heart and soul of an organization…it is the brand, the roadmap, the final measurement stick of greatness or mediocrity

Great cultures are built on a common mission, vision and values, supported by legends and tradition, and carried forward by storytellers and leaders.

“A people without knowledge of their past history, origin and culture is like a tree without its roots.”

Author unknown


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