Talking about organizational culture is like trying to describe and understand paranormal expressions of the deceased, i.e. ghosts. While you might be able to describe it to some degree, understanding it is more elusive. Like ghosts, the culture of an organization isn’t seen as much as felt. Unlike ghosts, however, organizational culture determines the relative health of the organization. In full disclosure: I don’t believe in ghosts but in searching for a metaphor that would help communicate, this is what seemed well known enough to be understandable to most who will read these thoughts.
Who is affected by organizational culture? Everyone who works at that organization as well as those who come into contact with the organization either as customers or vendors. No one escapes the invisible tendrils of culture. Employees, of course, are affected most, although usually in subtle and ambiguous ways that may not be recognized. From parking spaces to office size, from dress to speech, who eats with whom, priorities and perks, and virtually every interaction, culture exerts its effect.
Vendors are affected by the organization’s culture, both in choice, i.e. who gets to be a vendor, and in how that vendor is dealt with by the organization. While the culture of the vendor can affect the organizational culture of a company with which they do business, the effect is generally the other way around.
Customers are also affected by the organizational culture. One only has to read stories of the impact of the culture of Chick-fil-A, Southwest Airlines, and Disney, to mention a few, to see that the culture of the organization can have a profound effect upon its customers, and its bottom line. One thing is clear ORGANIZATIONAL CULTURE is king.
As has been quoted by others, “culture eats strategy for breakfast.” Sadly, many leaders spend too little time focusing on their organization’s culture, which is a bit squishy, focusing instead on strategy or other more easily understood and managed aspects of the business. This is called poor leadership.
In my next post on this subject, I’ll expand on ways to identify an organization’s culture.