Organizational culture is often defined simply as “How we get things done around here.” The definition of corporate culture is also frequently cited as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization – or if you prefer: the sum of the beliefs, values, customers, and behaviors that collectively create the organizational climate and results.

Our favorite working definition that relates to changing organizational culture: How we get things done that either accelerates (or hinders) our vision, strategy and competitive advantage. (if you are not achieving competitive advantage or executing your strategy well, chances are it’s an issue related to your organizational culture.)

Simply put, if old intelligence centered around WHAT you did (strategy, technology, products); new intelligence is HOW you do it (culture.)

Changing organizational culture is a potent strategy to align people in a disruptive era characterized by rapid change and digital transformation.

(in other words, evolve or die, as Darwin might say.)

When done right, organizational culture is difficult for competitors to copy.

Society is navigating massive disruption in workplace expectations and environmental conditions (compared to the business landscape 50 years ago, towards the end of the Industrial Era.) Experts suggest we are approximately 50 years into a societal revolution known as the Digital Era. Everything about our society is undergoing transformation to adapt – including economic, social, political, business and family norms and values.

Changing organizational culture means becoming high-speed, agile, virtual, balancing business and family/personal needs – and perhaps most importantly to the younger generations – a freedom culture dominated by individual empowerment and choice.

Transforming how, when, where and with whom we work is the realm of culture change in today’s world.

A truth about business is “What gets measured, changes.” Organizational culture is a key health barometer of your business. Not only CAN it be measured – it definitely SHOULD be a top priority of executives to choose an appropriate measurement tool before embarking on any meaningful organizational culture change effort. There are multiple assessment philosophies and approaches on the market today. Denison and OCAI are the longest standing and most prominent. Denison measures behaviors and management practices that link to performance. OCAI measures the perception of the culture today, in comparison to what leaders want it to become.

Any system can change – the question is “Will leaders do the real work?” Measuring organizational culture is an essential element of a sound culture change strategy – and, given that culture change is a long-term process it is best done in measurable and digestible stages.

Otherwise, the process will lose momentum as leaders cannot see the tangible impact of their efforts.

Your culture determines who you can hire, who stays and who goes, how leaders lead, which in turn affects how customers and employees feel every day.

Changing organizational culture can often feel like a threat to employees – who often view it as a top-down leadership-driven activity that has little transparency (and is more about optimizing the bottom line than caring for people.) Employees care MOST about the organizational culture (versus leaders) because they live in it. They are typically faced with the most problems and issues from cultural tensions and mismatches between the stated values and goals versus the reality.

Any change to organizational culture should address the very real issues and pressures that are felt on your front lines every day. Increasingly, employees choose companies that are actively investing in and working on this element of changing organizational culture.

The millennial generation is the majority of the workforce and is expected to be 75-80% of the workforce by 2025. They will choose freelance status and opt-out of toxic workplaces.
Customers increasingly choose companies with a sound culture.
Transparency (#MeToo) is here to stay; in a Glassdoor world it is difficult to hide or overcome a toxic corporate culture to attract good talent.

The ability or an organization to attract and retain good people, foster teamwork and creativity, develop leaders, lead continuous change, is more important than ever – organizational culture is the best predictor of your capacity to accomplish this.