Encyclopedia of Leadership

thrive; inappropriate assumptions will cause it to wither—often working harder at

what no longer works. [☛1.9 Paradigms]

➠ Cultures are notoriously hard to change. The starting point is understanding the cur-

rent culture. [☛5.2 Major Change]

➠ Increasingly, organizations are working internationally. Not understanding your own

organizational culture and how it may differ from other international cultures can be

disastrous for your organizational success, and devastating for the employees who rep-

resent your organization. [☛8.9 Cross-Cultural]

➠ Organizations are becoming increasingly diverse. If the diversity is to be a source of

increased effectiveness, the current organizational culture must be prepared.

➠ Many mergers or takeovers looked great from a financial and asset point of view, yet

became disasters when the organizational cultures could not be so easily merged.

What are some elements of organizational culture? Here are some common elements, with

a short explanation.

118 SECTION 4 TOOLS FORDESIGNINGPRODUCTIVEPROCESSES ANDORGANIZATIONS

Think of IBM and you think of Tom Watson Sr.; GE and Jack Welch; Mary Kay Cosmetics and

Mary Kay Ash; and so forth. Every organization has its strong heroes, who also define the stories

and meaning of the culture.

Often called myths, these are the stories that are told during coffee breaks and other informal

situations. For example, one consulting organization revelled in how much its members trav-

elled. Travel stories abounded, for example, super-frequent travellers holding up planes at the

gate. What does that tell you about what is important in that organization?

Meetings are but one bastion of rituals—from who attends what, to who can be late and who

cannot be late, to who starts the meeting, to how discussion is closed. Other rituals—and all

organizations have them—include humor, beer and pizza Fridays, clothing, and all-employee

communication meetings.

Read a part of your organization’s Policy Manual and ask yourself, “What is actually done

around here compared to official policy?” Every organization has an informal culture-in-

practice, usually much stronger than the formal espoused culture.

As this book is being written, the “in” culture term is branding. Does this tell you something

about leadership culture? The term is refitted from advertising and the consumer industry,

where products and services like Ford, Heinz, Microsoft, and Andersen Consulting can capitalize

on their brands.

Creating meaning is best explained through the story of three medieval stonemasons cutting

stones for a cathedral. When asked, “What are you doing?” the first answered, “I am cutting a

stone.” The second said, “I am shaping a keystone to support the main arch.” The third

answered, “I am building an edifice to God.” A key skill of leaders compared to managers is the

ability to create meaning, often tying even what might seem a trivial task to the success of the

organization. It’s sobering to think that people will do almost anything for leaders who can

create meaning. [☛1.6 Boards of Play, 2.6 Clarifying Purpose]

Heroes

Stories

Rituals

The formal versus

the informal

organization

Branding

Meaning

Element What this element includes