Organizational Culture

Introduction

• Every human organization develops its own culture over time.
• Culture varies from small family businesses to large multinational corporations.
• Core values often form the foundation of these cultures.

Core Values

• Common corporate values: communication, respect, integrity, excellence.
• Values are often documented but not always practiced (e.g., Enron).
• Importance of aligning actions with values to avoid negative consequences.

Definitions of Corporate Culture

1. Way We Do Things

   • Culture is the unique way things are done in an organization.
   • Difficult for outsiders to understand without experience.

2. Core Logic and Mindset

   • Culture as the software of the mind organizing behavior.
   • Mindset must precede actions and strategies.

3. Lessons Learned

   • Culture reflects past lessons deemed important by leaders.
   • Focus on passing valuable wisdom to the next generation.

4. Behavior When Unobserved

   • Culture is what people do when they think no one's looking.
   • Reflects personal priorities, principles, and learned responses.

Iceberg Analogy of Culture

• Only 10% of culture is visible (above water).
• 90% is hidden and can cause issues if not understood (below water).
• Leaders should manage both visible and hidden aspects of culture.

Building and Passing on Culture

• Culture forms from both lessons and survival processes over time.
• Leaders need to understand and adapt past values for future challenges.
• Balance historical principles with future adaptability.

Conclusion

• Organizational culture is a critical aspect of business.
• Leaders must ensure alignment of actions with core values.
• Effective culture management is key to competitive advantage.