1. Organisational culture
as a driving force
Dusan Basalo, Senior partner
Prague, September 2016

3. Organizational Culture:
Organisational culture as a driving force
Organizational Culture:
The basic assumptions, shared values and beliefs that guide the way organizational members behave toward each other and approach their work.

4. Culture vs. Structure Structure Culture Management Leadership Vision
Organisational culture as a driving force
Culture vs. Structure
Management
Leadership
Vision
Mission
Values
Objectives
Principles
Structure
Culture
Strategies
Styles
Plans
Behaviours
Results
Predictability
Change

5. Organisation chart

6. Organisational culture as a driving force
Climate
Culture

7. Culture vs. Structure Culture Climate
Organisational culture as a driving force
Culture vs. Structure
Culture
Understanding (beliefs, values, assumptions)
“What way of work is expected from employees around here?”
Climate
Perception (sensory)
“How things are done around here?”

8. Organisational culture as a driving force
Challenger

9. Organisational culture as a driving force
Columbia
According to investigator’s report, tragedy occurred as a consequence of NASA organizational culture

10. Organisational culture as a driving force
Influence of organisational culture on long-term financial results of a company
Research Kotter and Heskett
Lasted for 11 years with over 200 companies of different size
Identified substantial statistical correlation betwean organisational culture and financial results

11. Culture and business results
Organisational culture as a driving force
Culture and business results
Adaptive
(Constructive)
Unadaptive
(Defensive)
Revenues
682%
166%
Work Force
282%
36%
Stock Price
901%
74%
Net Income
756% 1%
Corporate Culture: Kotter & Heskett 1992

12. Two General Types of Culture
Organisational culture as a driving force
Two General Types of Culture
Defensive Cultures - Inactive/Reactive
- How people see you is more important than what you do
- Focus on blame
Maintain the status quo
Constructive Cultures - Proactive
- Fosters innovation
- Reinforces personal responsibility and accountability
- Values performance

14. Defensive Culture Systematically undermines long term performance.
Organisational culture as a driving force
Defensive Culture
Systematically undermines long term performance.
Prevents the organization from identifying and implementing strategies and tactics that are needed to compete in an increasingly competitive world.
Turf wars drive decisions.
Win or lose based on beating your associates rather than competitors.
How you look, not what you accomplish is most important.

15. Defensive Culture Syndrome
Organisational culture as a driving force
Defensive Culture Syndrome
Achieve a dominant market position due to success, vision or luck.
Success leads to more success.
Begin believing its because of their brilliance.
Arrogance sets in.
Internal focus begins to build a bureaucracy.
Deterioration of long-term performance.
It’s always someone else’s fault.

17. Constructive Culture Everyone is expected to provide initiative.
Organisational culture as a driving force
Constructive Culture
Everyone is expected to provide initiative.
Low distortion in communication.
People are encouraged to be decisive, take moderate risks, take initiative and be accountable.
Grow people rather than use them as career advancement tools.

18. Constructive Culture Pursue standard of excellence.
Organisational culture as a driving force
Constructive Culture
Pursue standard of excellence.
Externally focused -- beat competitors not each other.
Open, candid discussion and decision-making.
Non-political atmosphere.
Leadership vs. Management
facilitating goal accomplishment rather than monitoring activities.

19. ’How Culture Works’ Preferred Culture Actual Culture Espoused
Organisational culture as a driving force
’How Culture Works’
Organisational
Quality
Customer Service
External Adaptability
Group
Teamwork
Co-ordination
Co-operation
Individual
Motivation
Performance
Satisfaction
Stress
Structures
Roles
Influence
Decision-making
Systems
Selection
Training
Appraisal
Rewards
Technology
Job Design
Complexity
Interdependence
Espoused
Direction
& Vision
Philosophy
Mission
Goals
Strategies
Values
Preferred Culture
Actual
Culture
Skills/
Qualities
Leadership
Communication
Bases of power
‘How Culture Works’ Model
Copyright © 1997 Robert A Cooke PhD

20. When it should be changed?
Organisational culture as a driving force
When it should be changed?
Mergers
Change in ownership/management structure
Major change in processes
Big changes in the market
Strategy change …

22. Top management workshops
Organisational culture as a driving force
Top management workshops
Vision and mission
Current culture
Ideal culture
(Culture measurement among employees)
Values
Behaviours (leadership) principles and indicators

23. Leadership Equity Assessment - LEA™
Organisational culture as a driving force
Leadership Equity Assessment - LEA™
Based on the research of Gallup company - the most extensive research on motivation and engagement of employees that has ever been carried out
Supplemented by the latest data from last year's survey done by Persona Global company
Takes into account 13 key areas for organizational culture, motivation and engagement of employees
Gives a clear picture and recommendations for improving these areas

24. Workshops for Culture change agents
Organisational culture as a driving force
Workshops for Culture change agents
Employees with personal values similar to defined organizational values
Employees with behaviors according to defined organizational behaviors
Employees with strong personal credibility
Training: How to promote new culture and react during projects and meetings

25. Organisational culture as a driving force
Internal campaign

26. Organisational change sub-projects and shadowing
Organisational culture as a driving force
Organisational change sub-projects and shadowing
Sub-projects for:
Selection of new employees and induction process
Career path and criteria for promotions
Values and behavior principles: how to spread it
Efficiency of processes and meetings
Innovation, engagement, company branding …
Consultants do shadowing during those meetings

27. Organisational culture as a driving force
Zappos story

28. Organisational culture as a driving force
IKEA story

29. Organisational culture as a driving force
Thank you!