Today I was part of a group discussion at the Clutch Events Project Management Technology Summit in Melbourne, where someone asked the question ‘what is organisational culture’.
For me – that’s an easy question to answer: organisational culture is the manifestation of individual behaviour at scale.
It is an emergent quality that is the sum of the actions of the people that contribute to it.
When people behave in ways that are supportive and demonstrate ethical decision making, then their organisation’s culture will reflect that.
You can plug in different behaviours and the output will reflect them accordingly. Hence when behaviours are individualistic or geared towards profit at the expense of all else, the organisational culture will form accordingly.
So the second question that naturally arises is: what are the key factors that influence organisational culture?
If you’re willing to accept my argument about culture emerging from individual behaviour, then there are two critical factors that I believe outweigh all others.
The first of these is the organisation’s statement of purpose. Whether this is a single sentence or is expressed through a set of a dozen leadership principles, the organisation’s purpose provides a test that can guide workers in their decision making, simply by offering the opportunity to ask, ‘does this action align to our purpose’.
This makes the defining of purpose and principles something that must be considered with great care, as they can influence critical actions right through the workforce and will go a long way to shaping its culture.
The second factor is the behaviour of the leadership group. Culture may emerge from behaviour throughout the organisation, but it is set from the top, which means that the behaviour of senior leaders is critical to shaping the culture
If leaders preach inclusivity and supportiveness but behave in an opposite fashion, workers below them will mimic the behaviour, not the rhetoric. Worse still, they will understand that the leadership is duplicitous, and the resultant culture will reflect all this trait.
These realisations arose thanks to a research project I was engaged in several years ago, when I had the chance to examine numerous businesses up close and pose the question of why some were able to undergo successful transformations, and others weren’t.
Amongst the findings was the realisation that organisations which were able to transform successfully had a strong statement of purpose that workers could align with, even in those times when the transformation was directly disrupting their lives. When they could see that result of disruption would enable them to better serve their purpose, then disruption became something they were more willing to put up with.
which led me to my final contribution to yesterday’s discussion – never discount the importance of organisational culture as a factor in successful transformation programs.