culturedynamics impact performance
Culture dynamics are the inter-play between patterns (notes in italics in the following) of leader and operating practices and behaviors, influenced by underlying values, assumptions and beliefs. As culture strengths develop over time, counter-balancing culture patterns develop creating effectiveness. This Ying and Yang can be seen in the way highly empowered customer excellence organizations build strong Empowerment and Responsiveness culture patterns and balanced by strengthening Accountability and Learning & Development. By keeping Accountability and Learning & Development strong and working in a dynamic to support Empowerment and Responsiveness, finger pointing and blame fixing are avoided and lessons are learned and migrated to others. This delicate inter-play differentiates the organization, creating loyal customers and engaged employees.
Why are profits so weak? Our U.S. client, the sector leader in its industry, was concerned about profitability and lack of innovation so there was a plan to launch an innovation initiative. From a Culture Snapshot survey customized for the organization that assessed 22 culture patterns, a culture dynamic was identified which indicated that Risk Orientation, notably high aversion to risk, was one of the predominant responses within the culture. By mapping the inter-play between culture patterns, it was determined that weakness in Transparency (insufficient access to information for decision making) and Collaboration (sharing information across departments) and highly developed sets of beliefs and behaviors around Compliance (strong control orientation) was impacting Results Focus, creating lack of urgency and diminishing Speed to act quickly to take advantage of opportunities and respond to competitor actions.
Where to start? Our research showed that the potential for innovation was already present and leadership attention to improvements in decision making and information sharing practices could unleash new solutions to the market and release the organization from the risk aversion glue that was holding back passion and competitive spirit in the workplace. With this information the executive team asked the internal HR/OD group to facilitate interventions targeted at shifting practices and thus behaviors in targeted areas.
