Construct of organisational culture

An organisation is a microcosm of a society which it operates in. Firms are operated by a diverse set of people, drawn from highly complex social, economic and psychological backgrounds. Each individual employee brings with him the baggage of personal values, beliefs and experiences to the organisation. No wonder, firms which do not consider 'designing organisational culture' as a top organisational priority, tend to fail consistently to accomplish positive economic returns.

Culture can be defined as the way people in an organisation behave, by the organisational factors that form those behaviours (i.e., the way we do things around here) - including formal unwritten norms as well as implicit ways people work, interact to achieve results. In many organisations there is a gap between the 'existing culture' and the 'desired culture'. Desired culture is the culture essential to support and advance firm's business strategy and goals. In an ideal culture-building model, everyone in the organisation is equally responsible for cultivating the desired culture.

Organisational culture is what defines all business outcomes. It impacts quality and consistency of employee and organisational performance.

It is a true and unique identifier of a successful business. Functions of an organisation like input-process-output can be replicated by any other company; however, culture remains unique. It is the culture and its essence that differentiates one organisation from the other.

Construct of culture

Organisational vision is the prime factor that impacts organisational culture. There are many others like mission, values, beliefs which form critical influencing factors. Employee orientation, systems, guidelines, policies, processes, training and traditions also directly impact the culture of an organisation.

It is quite shocking that many organisations do not care to factor-in the humongous positive impact of standardised systems and processes on their bottom line and efficiencies, even today.

All organisations have a definitive culture. However, it can be a disempowering one or an empowering one. In plain language, a winning culture or a losing culture.

Culture by default

By default, unregulated behaviours, workplace conduct, communication process and operational processes over time builds an organisational culture. You can experience the culture of an organisation from the way a call is picked by the front office telephone operator, to all the way - how the board meetings are conducted, and everything in between.

Culture is the personality of an organisation. It is the true identity of an organisational body. It can be left to chance, by allowing it form its own

personality and identity 'by default', or it can be designed to suit the firm's macro-objectives, nurtured for a powerful identity, achieve powerful results and to increment shareholder value.

If an organisation proactively doesn't design its organisational culture. Random 'by default' culture evolves. As this culture is not consciously aligned to organisational goals, it mostly works against organisational purpose.

Culture by design

Profit is not a bad word. In fact, profit is one of the prime reasons that a business exists. Only those firms who are confused between charity and commercial organisations tend to undermine the importance of organisational culture.

Firms which do not focus on the culture of their organisation, actually lack focus on productivity, product quality, employee growth, business sustenance, incrementing shareholder value and profits. Mostly, organisations which are not designed with a culture of integrity, profitability and efficient product delivery will fail.

In contrast, highly successful businesses which sustain and thrive understand the quantifiable impact organisational culture has on every single constituent of the business. These firms right from their inception design, deploy, nurture and permeate a highly effective organisational culture across their organisation.

Its critical to ensure behavioural alignment and desired culture across every function of the organisation like administration, sales, finance, logistics, procurement, distribution, HR, IT and others.

Multiple constructs

One size doesn't fit all. Organisational culture design is a customised intervention. Uniqueness of an organisation and its core competence is exhibitive of its true nature through its stated culture.

For example – Amazon's explicitly pronounced culture is centred around 'Operational speed & Accuracy'. The 'feedback response loop' is the assessment instrument to test the performance outcomes of its organisational culture across functions on a daily basis. One can test and assess the quantifiable results of a well-designed organisational culture.

Another example is Google - Google's culture is designed to promote creativity, innovation, risk taking and disruption. Everything from ergonomic workplace design, recruitment methods, new recruit orientation, fund allocation and corporate decision making is driven through their culture attributes.

No wonder, Google has consistently held its position as a global market leader in its segment. It has through its culture expanding its business consistently to unthinkable digital utilities.

Designing organisation culture is a serious task of self-assessment, core-competence and future direction. Organisations, which wish to excel in their space, lead their market segments over-time or be a global market leader, prepare their body and mind through designing and deploying a powerful organisational culture.

ARR model

There are many efficient models which enable designing and deployment of culture in organisations. However, here is one which can be used for a broader framework.

Adaptive – In fast paced, demanding, connected organisations operating in interdependent economies, it's important to build an organisational culture which is ready to adapt to constant change.

Responsiveness – Learning continuously to respond rapidly, with open and free flow of information. Encouraging experimentation through accountable autonomy and transparency. To be responsive to fluid situations across all organisational functions.

Responsible – Being accountable to the vision and mission of the organisation with ethical corporate governance, social consciousness, profit-centricity and sustainability awareness.

In conclusion, lack of documented business model, invisible business strategy, undefined roles, multiple power centres, subjective resolutions, unregulated behaviours, knee-jerk reactions, lack of diagnostic control systems, unaccountable macro-decisions, faulty profit-formula, ill-designed processes, by default organisational culture all together constitute a deadly concoction for assured organisational failure.

Start-ups, small, mid-size and even large firms can fall into this negligence trap of operating without a custom designed organisational culture, causing irreparable damage to customer, employee and shareholder value.

(A collaborative article by K Krishna Sagar Rao, a Harvard Business School certified strategist and Lax Gopi Shetty, a Management Systems expert)