CULTURE often applies to countries. It defines a set of shared values, norms, and beliefs for a particular society. Sociologists refer to culture as the way a tribe “lives its life.” Thus are Filipinos known for their hospitality culture (they give up the best room in the house for a guest) that sets them apart as outstanding caregivers and service workers.
Corporate culture is also a shared set of values and beliefs limited to an organization, especially as it deals with outside parties like customers and competitors.
Are there common traits and beliefs that distinguish one set of corporate employees from other groups? The belief and value systems are not always written down and, even when they are, they are filed away along with the mission statement and the company motto — “Our most valuable asset is our people.”
It is practice and behavior that more accurately define corporate culture. And unfortunately, it is improper behavior that distinguishes one organization from another. The behavior and conduct of individuals in an organization, condoned by its leadership, determine the prevailing corporate culture.
The customer is not always right. He can be a pest with his complaints about the service. Are such complaints attended to with a sense of urgency? (Please stay on the line until you are rescued by ennui.) Complaints are dysfunctional and they eventually sort themselves out in a year or two. Let the other company get the pest.
Getting ahead is based on political maneuvering. Pleasing the boss, and those who please him, is important in order to be noticed. So, try and see who is important to the boss and get his slippers when he needs them. Never mind meeting targets and addressing service reliability.
What about teamwork? It’s not important what gets accomplished when employees are focused on the task. The key to every success is who gets the credit. It is best to be the first to report a win, without alluding to the one responsible for it. The other side of this pursuit for credit is finding the scapegoat to blame in case of a fiasco.
How does the company handle the emergency needs of employees? When an employee or her mother gets sick and requires expensive medical treatment, is the item just posted in the digital hub with prayers and donations solicited? (Please pass the hat.)
Corporate culture is defined by actual behavior, not by a written document. It follows child-rearing practices of what deeds and attitudes are rewarded or punished. The compensation system (especially variable pay and merit increases) has a big impact on defining corporate culture. The value system is enhanced or compromised by the carrot and the stick, and how these are dispensed.
Corporate culture is associated with the incumbent CEO whose attitudes and behavior define what is acceptable or not. His own conduct serves as a model for the rest. (Is he a bully or a nurturer?)
So, a new CEO or even one appointed in transition (until a new CEO is found) must find out what the set of beliefs and values currently are, and whether to preserve or overhaul them.
A survey is one way to capture the opinions of different stakeholders in the organization to be converted to charts and statistics. Do the lower levels feel they can influence decisions at the top? The survey provides what consultants call a “base line,” or the present situation, preferably dire and in need of intervention. This is like a medical diagnosis of a very sick patient. Why else does one need a cure, or a doctor for that matter? The survey is the starting point for any transformation. (This is always the prescription.)
The process of defining the corporate culture does not mean abandoning other critical activities like selling products, attending to customers, reducing headcount, and taking care of the bottom line. These are ongoing, even with the many meetings that the definition of the corporate culture will entail. Is the process of transformation disruptive? Do earthquakes cause buildings to shake?
In the end, “modeling” is what defines corporate culture. The behavior of the CEO (or the actual leader, if the CEO is merely titular) determines the values of his direct reports and those who report to them. Corporate culture starts at the top… and ends at the bottom.
Tony Samson is chairman and CEO of TOUCH xda
