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Transcript of Corporate Culture
Louis V. Gerstner, Jr. former CEO IBM Culture flows from the very top.
Comprised of four disticnt categories:
Values What kind of culture do you work in? in summary... Include slang, dress codes, design of office, etc.
Typically the quickest indicator of corporate culture
Business professional vs. Hawaiian shirts Symbols Can be past or present, real or imaginary
Meant to exhibit the desired traits of employees
Represent the model or ideal of the organization Heroes Formal
Meeting structure, office policies, receptionist greeting
Company events, office taboos, casual Fridays Rituals Tend to be the most important category of culture
Embedded in the daily actions of employees
Must be demonstrated by those with power
Can be positive (sustainability) or negative (profit at any cost) Values How Do We Change A Corporate Culture? CEO must be the driver of change
CEO and Senior Mangement must define the corporate strategy Plan to get where the company wants to go
Road map to accomplish that vision
Must be clearly communicated to employees Corporate Strategy What kind of Culture is needed to execute strategy?
Define that culture
What kind of Culture do we currently have?
Gather the clues (symbols, heroes, rituals, values)
Tenured, new, and retired employees
Round robin listing
Affinity diagrams Now Change the Culture What is being communicated?
Family life? Underlying Values Productivity over quality vs. quality over productivity
Keep rituals, reinforce new values
Culture of entitlement
Bonuses because bonus time of year
Bonuses based on performance
Promotions based on tenure
Promotions based on performance It Takes Time 6-18 months
Several years in larger corporations Human Resources Hire based on new culture
Specific job duties defined that promote new values Existing Employees Facilitators must creatively measure progress
Go overboard in rewarding behaviors that exhibit new culture
Employees strongly opposed to new culture may have to go Successful Shift of Culture 50 years without profit
Corrado Passera Poste-Italiane Full Understanding of Company
Communication & Delivery
Visible How? Result Corporate culture is about giving people a sense of identity, increasing their commitment, shaping behavior, and reinforcing corporate values. Leaders shape and reinforce the culture by what they do, how they react to crisis, how they reward and punish people, and how they behave. Culture can be changed if current members buy into the new set of values, newcomers with the desired values are added, and current members who resist the change are removed. Poste-Italiane Profitable
Smoother Operations Successful Creation of Culture 1998
Larry Page & Sergy Brin Right people - GLAT TestExhibit openness from day 1Level Playing fieldValue Innovation & creative projectsPhysical atmosphere Right people - GLAT TestExhibit openness from day 1Level Playing fieldValue Innovation & creative projectsPhysical atmosphere Google Result Happy People = Better Product
Happy Customers Create Happy Staff
Efficiency Effectiveness & Innovation “One of the most positive, influential, all-encompassing, productivity-inducing environments the world has ever seen”
Kevin Ryan, VP of SearchEngineWatch.com Google Right people - GLAT Test
Exhibit openness from day 1
Level playing field
Value innovation & creative projects
Physical atmosphere Google How? Jeffery Immelt almost finished . . . how about an example? how do you do it? What is Culture?