Culture: Is it important? What is it? How to manage it.

Engineer Your Tomorrow CC © 2015Engineer Your Tomorrow CC © 2015
Is it
important?
What is it?
How to
manage it.

Engineer Your Tomorrow CC © 2015
2
Codifying and socialising culture | Designing integrated talent management architecture
info@eyt.co.za | T: +27 (0) 11 782 9256 | www.eyt.co.za

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Questions we’ll answer in this presentation…

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1. IS CULTURE IMPORTANT?
2. WHAT IS CULTURE?
3. How do I manage culture?

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2. WHAT IS CULTURE?

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Source: Booz & Company 2013 Global Culture & Change Management Survey
In a Global Culture and Change Management Survey distributed by Booz &
Company to understand CEO perceptions of culture and change management,
CEOS were asked: “Is culture important?”
These responses were given:
•  84% said culture is critical to business
success
•  60% said culture is more important than
strategy or operating model
•  45% said culture is not effectively managed
•  51% said their business’ culture is in need of
overhaul
How we
compete
How we “run
the business”
How we interact
and work
Business
Strategy
CultureOperating
model
IS CULTURE IMPORTANT?

7
682%
282%
901%
756%
16% 36%
74%
1%
Revenue
Growth
Workforce
Growth
Stock Price
Growth
Net Income
Growth
Strong cultures vs. weak cultures
Performance change 1977 – 1988*
Strong Cultures Weak Cultures
•  Drive consistent values and
behaviours
•  Align the organisation
•  Motivate employees
Strong cultures:
The strongest cultures also:
•  Fit with their business
strategy
•  Are adaptive to their
business environment
Source: “Corporate Culture & Performance” J.P. Kotter & J.L. Heskett, The Free Press 1992
IS CULTURE IMPORTANT?

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•  Nothing distinguishes a company
like its culture – it cannot be
copied.
•  Culture can be a differentiator
and a source of competitive
advantage.
•  Enterprise culture is powerful
because people take their cues
as to what is tolerated.
is a strategic asset

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1.  Many global CEOs seem to
think so.
2.  It seems to be part of how
organisations win in their
markets.
3.  It is a strategic differentiator
that is impossible to copy.
Summary:
Is culture important?

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2. WHAT IS CULTURE?

These artefacts are the evidence of culture.
11*Based on the work of Edgar Schein
Your organisation has a culture…

* John Kotter 12
How we do things impacts employees and external
customers, positively or negatively.
What is culture?

Customer Need
(rational and emotional)
Culture Customer Experience
What people want
How people experience each
other and the organisation
How people respond to
customer needs
(delivery)
13Engineer Your Tomorrow CC © 2015
All organisations exist to serve a customer need. It is through culture that an
organisation tries to meet its customer need. How the organisation meets the
customer need results in a customer experience.

1.  Culture is how we do things around
here.
2.  You have a culture, it is demonstrated
in how people behave, towards each
other and your customers.
3.  Culture creates your customers’
experience and therefore their loyalty
to your business.
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Summary:
What is culture?

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2. WHAT IS CULTURE?

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If you can measure it,
you can manage it.

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Measure and evaluate your efforts
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1 2
4
Codify your
culture and
manage like a
strategic asset
Use formal
mechanisms to
enable and embed
Use informal
mechanisms to
motivate and engage
Get senior
leaders to bring
the culture to life
How do I manage culture?

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Articulate “how we do things around here” in a
measurable way.
Use a Culture Code

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Latent
(not visible)
Manifest
(visible)
Expression of purpose, values and mindset
Shared perspective that determines
responses and interpretations
Principles that guide decision
making and actions
Deep and lasting reason
for our existence
Behaviours
Mindset
Values
Purpose
This is The Culture Code model
(fill in the sections with your organisation’s information)

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Sample Culture Code: Consulting firm
Latent
(not visible)
Manifest
(visible) Behaviours
Mindset
Values
Purpose
To codify and socialise group culture
Integrity
Family
Freedom
Systems Thinking
Learning
Working Smart
Making it easy to connect
- I challenge the status quo when necessary
- I seek out learning opportunities
- I influence outcomes
- I prioritise time to think
- I review information from diverse sources, extract key
issues and use this information to understand the full context
- I identify and address problems by systematically and
carefully developing and evaluating solutions
- I prioritise actions based on integrative analysis and
problem-solving
- I listen to understand the task need without interrupting
- I listen for the emotion
- I respond appropriately to the combinaton of task and
emotion
- I proactively provide information
- I consider the information needs of others
- I manage other’s expectations in terms of delivery
- I link information in a step by step way that allows a
problem and solution to be understood
- I set realistic deadlines
- I keep my promises
- I keep promises made by my team

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I connect
•  I listen to hear the task and
emotional need
•  I keep quiet at the
appropriate times to
enhance the group
interaction
•  I respond to the task and
the emotional need
I reflect
•  I take responsibility for my
personal learning
•  I seek out feedback from
others
•  I consider my contribution
to the group
I share
•  I give feedback to others
•  I disclose my personal
experiences
•  I am generous with my time
and resources
I honour my
commitments
•  I develop and act on a plan
to connect, reflect and
share
•  I do what I say I will, when
I said I would
Sample Culture Code: Learning Institution
Latent
(not visible)
Manifest
(visible) Behaviours
Shared
perspective
Values
Purpose
To cultivate and empower a network of globally engaged
leaders committed to positive change through dialogue
and action.
Perseverance
Courage
Inspiration
Humility
Respect
Engage and learn to transform

Customer Need
Culture Customer Experience
What people want
How people experience each
other and the organisation
How people respond to
customer needs
(delivery)
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Behaviours
Mindset
Values
Purpose

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What is the difference between
values and behaviours?
Values = invisible = not measurable
Behaviours = visible = measurable

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A culture code defines desired culture
Talent management reinforces and sustains
culture

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• Organisational
Structure
• Role Profiles
• Behavioural
standards
• Recruitment
Strategy/Processes
• Selection Process
• Onboarding
Framework
• Recognition
Programme
• Performance
Management
Process
• Learning Frameworks
• Compensation Philosophy
• Succession Planning
• Career Pathing
Foundation
Grow
Keep
Find
• Mindset
• Value alignment
• Core behaviours
Culture
Talent Management Architecture
Talent management reinforces
and sustains culture.

• Organisational
Structure
• Role Profiles
• Behavioural standards
• Recruitment Strategy/
Processes
• Selection Process
• Onboarding
Framework
• Recognition
Programme
• Performance
Management Process
• Learning Frameworks
• Compensation Philosophy
• Succession Planning
• Career Pathing
Foundation
Grow
Keep
Find
• Mindset
• Value alignment
• Core behaviours
Culture
All people processes, policies and procedures should support the culture
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Behaviours
Mindset
Values
Purpose

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1.  Clearly articulate your culture in a
culture code.
2.  Reinforce your culture through
talent management architecture.
3.  Measure your culture so that you
can take information-based
decisions.
4.  Role model the culture you want
to have.
Summary:

28Engineer Your Tomorrow CC © 2015
“The only thing of real importance that leaders do is to create and manage
culture... If you do not manage culture, it manages you, and you may not
even be aware of the extent to which this is happening.”
EDGAR SCHEIN

Engineer Your Tomorrow CC © 2015 29
is an important
is
Codify your to make it

and
Reinforce and sustain through aligned

REMEMBER…

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About EYT

31
Codifying and socialising culture | Designing integrated talent management architecture
info@eyt.co.za | T: +27 (0) 11 782 9256 | www.eyt.co.za

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