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Organizational Culture. What is the definition of “Culture”?. Definition. Culture is the summation of the beliefs, values and behaviors of a group of people in an organization or community. It dictates how they act and behave in particular situations, and in the general conduct of their lives. .
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Organizational Culture • What is the definition of “Culture”?
Definition • Culture is the summation of the beliefs, values and behaviors of a group of people in an organization or community. It dictates how they act and behave in particular situations, and in the general conduct of their lives.
What does “Culture” do? • an organization’s culture will affect its reputation, image, brand, and even its performance. • When we mention IBM, we immediately think of a specific culture. The same is true of successful companies such as GE, Motorola, Sony, Toyota, etc.
What does “Culture” do? • An organization’s culture also attracts and repels people with similar or conflicting cultures. As such, it helps in recruiting the right individuals, and rejecting the unsuitable ones. It makes the job of training and assimilating new recruits easier, and encourages coaching and the development of succession planning, promotions, creation of new positions, etc.
Peak Operating Performance Strategic Management (Direction) Human Capital Management (Critical Resource) Process Management (Infrastructure)
Strategic Management • “The ability of an organization to use information to drive change and cause competitive advantage”
Strategic Management (Doing the Right Thing) • How an organization defines itself determines its future. • Plan and take action in the present to improve future performance. • Strategic change is driven by data-supported analysis and information, not intuition • Performance improvement is always a value proposition
Strategic Management(continued) • All strategic decisions and actions must be filtered through an organizational value screen to maintain integrity, and a strategic objectives screen to optimize resource utilization. • Measurement must provide a balanced picture of all the elements that affect performance, and must include leading indicators, not merely lagging indicators
Strategic Management(continued) • Leaders must see themselves as being responsible for taking their organizations into the future and communicating that future with conviction and confidence. They must not be caretakers or defenders of the present… managers are responsible for optimizing the current paradigm, not leaders.
Process Management • “The ability of an organization to design and operate processes and systems in a way that produces the desired outcomes, every time”
Process Management(Doing Things Right) • Focus is always on the customer’s desired outcomes, the process is then designed and constructed to produce those outcomes, every time. • Problems are eliminated through a system of prevention, not inspection, sorting or detours. • Measurement is critical to the performance of all processes. Measures should be in real time, always tie to organizational performance goals. • Continuous process improvement is everyone’s responsibility
Human Capital Management • “The ability to create a work environment in which individuals and teams can optimize performance”
Human Capital Management(Enabling People to Perform) • People are an organization’s most important asset, therefore they must be viewed as a capital investment having a certain and substantial ROI, not as a consumable resource or expense. • Develop and invest in people… create a competitive advantage. • The competencies of the people should be determined by, and aligned with, the vision, mission and strategic objectives of the company.
Human Capital Management(continued) • A process must exist for attracting, hiring, training, retaining and leveraging the needed human capital. • The organization must have a set of values that permeate every facet of organizational life and represent the first, and most important, screen during the hiring process. • Compensation, reward and recognition systems should reinforce behavior that optimizes individual and team performance.
Human Capital Management(continued) • Work environment where performance shortfalls and mistakes are viewed as process failures, not opportunities to blame. As a result communication is accurate and candid • Measurement is essential to performance in the human capital arena. • People are led, processes are managed… a true leader knows this!
