
Best Definition of "Corporate Culture"
If you ask 10 people to define "organizational culture," you will get 11 different answers!
Fortunately, from my consulting and writing on leadership and organizational change, I created my definition of organizational culture:
"Corporate culture is how every employee knows she or he must act ? even if no one is watching."
Knowing your company's culture proves crucial for multiple reasons, including:
+ Only organizational changes that fit into your company's culture will succeed.
Changes not fitting into the culture will fail and not achieve desired results.
+ Hire employees who fit into the corporate culture. That is, "Do not try to fit a square peg into a round hole!"
Fastest Way to Uncover Your Organization's Culture
From my consulting experience, I devised a super-quick way to uncover an organization's culture: Discover the story all employees know and tell other employees. In fact, hearing the company's signature story is a right-of-passage for new employees. Hearing the story implicitly tells a new employee the actions and values the organization expects.
Here are two examples taken from my book entitled, Absolutely Fabulous Organizational Change?: Strategies for Success from America's Best-Run Companies.
1st Story: Ritz-Carlton-Hotel Company
Leonardo Inghilleri, senior vice president of The Ritz-Carlton-Hotel Company, told me this story often is repeated among his company's employees.
"Ladies & Gentlemen Serving Ladies & Gentlemen"
When he was 14 years old, Horst Schulze -- currently president of The Ritz-Carlton Hotel Company -- worked in as an apprentice waiter in a very fine restaurant in his native Germany. Initially, he saw himself as a "servant."
Then, he realized the fine restaurant was staffed by highly skilled professionals. For example, he looked in awe as he repeatedly saw the maītre d' chat with and entertain the diners. In fact, the maītre d' spoke many languages. So, he spoke German to the German diners, French to the French guests, and English to the English customers. He also expertly helped diners with their food and wine choices.
From this experience, it dawned on Horst Schulze that a luxury establishment is composed of ladies and gentlemen serving ladies and gentlemen. He instilled this insight into The Ritz-Carlton Hotel Company where he now is president.
Ritz-Carlton's Culture
Company president Horst Schulze's experience gives rise to The Ritz-Carlton Hotel Company's customer care motto which precisely expresses its corporate culture: "We Are Ladies and Gentlemen Serving Ladies and Gentlemen." Note: The company's culture perfectly dovetails with Ritz-Carlton's big, exciting, compelling vision: "Our key goal is to be the premier worldwide provider of luxury travel and hospitality products and services."
2nd Story: Intuit
Brooks Fisher, vice president and general manager of Intuit's consumer internet business, told me Intuit's signature story is the following:
"Follow Me Home"
Scott Cook, founder of Intuit, was so focused on understanding and fulfilling the customers' needs that he invented "Follow Me Home." He would go to a store where Intuit's software was being sold. Then, while a customer was buying Intuit software, he would ask if he could follow the customer home. At the home, he would watch how the customer installed and used the software.
Intuit's Culture
Given Intuit's story, what is the company's culture -- or main focus? Fisher says the story conveys Intuit's culture which is "The customer always is first." And, as Fisher puts it, "That's how you win." Note: The story also precisely meshes with Intuit's big, compelling vision: "Our key goal is to revolutionize how people do financial work."
Hire Applicants Who 'Fit Into' Your Company's Culture
You know it proves difficult to "fit a square peg into a round hole." Likewise, companies need to hire applicants who 'fit into' their organizational culture.
For instance, one company I consult to is ultra-customer service oriented with super-friendly employees. When we did benchmarking studies for this company with the Abilities & Behavior Forecaster? Test ? to customize the Forecaster? Test to help hire the best ? we discovered successful employees in every job scored high on two of the test's scales:
+ Helping People Motivation, i.e., customer service-orientation
+ Friendliness
Such customer service-focused and super-friendly employees 'fit into' the company's culture, and prove most likely to succeed.
Message = Don't bet against your organizational culture when you aim to hire the best. Fortunately, you can do by
1. benchmarking your "superstar" employees in each job ? by having them fill-out a validated pre-employment test to discover their "benchmark" test scores
2. focusing on hiring applicants whose test scores are similar to your company's "superstar" employees' test scores
Now, You Can Uncover Your Organization's Culture
To discover your corporate culture, you simply need to uncover the story that
1. employees hear in their first week on-the-job and repeat to new employees
2. perfectly conveys how all employees must act ? even when no one is watching!
Usually, the story is about the company's founder. It typically conveys insights and actions that lead to remarkable, profitable success.
© Copyright 2005 Michael Mercer, Ph.D., http://www.DrMercer.com
Michael Mercer, Ph.D., is a speaker, book author and founder of The Mercer Group, Inc. He delivers 50 speeches and seminars annually at companies and conferences. His five books include (a) Absolutely Fabulous Organizational Change? and also (b) Hire the Best -- & Avoid the Rest?. Dr. Mercer developed a widely used pre-employment test ? Abilities & Behavior Forecaster? Test ? which helps companies choose productive applicants. You can (1) get a free subscription to his Management e-Newsletter at http://www.DrMercer.com or (2) call him at 847-382-0690.
AP - Israel's government says it will press ahead with its military offensive in the Gaza Strip despite a U.N. Security Council resolution calling for a cease-fire.
AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.
AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.
AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.
AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.
AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.
AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.
AP - Just minutes after George W. Bush took the oath of office eight years ago, he signed papers formally nominating 13 Cabinet-level officials. Several hours later, the Senate, meeting in a special Saturday session, confirmed seven Cabinet secretaries, including the heads of the key posts at State, Treasury and Defense.
AP - Tim Tebow enjoyed the battering-ram runs. He liked the old-school jump pass. Drawing a rare penalty, that really made Tebow's day. With No. 1 Florida about to finish off No. 2 Oklahoma 24-14 for the BCS championship Thursday night, Tebow was flagged for unsportsmanlike conduct.
Reuters - Steep falls in European industrial output underlined the severity of the world economic crisis on Friday and more grim news was on the way with the United States expected to report the biggest monthly job cuts in more than 30 years.
Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip on Friday, defying a U.N. Security Council resolution calling for an immediate ceasefire.
Reuters - Russia's state-controlled gas monopoly said a deal to monitor gas exports via Ukraine would be signed on Friday, allowing for the resumption of supplies to Europe cut off by Moscow's price row with Kiev.
Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.
Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.
Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.
Reuters - An analysis of proposals to overhaul U.S. health care by President-elect Barack Obama and members of Congress suggests it is possible to insure all Americans without significantly raising total health spending.
AFP - Israel and Hamas launched heavy air strikes and rocket attacks on each other Friday, ignoring a UN Security Council order on the warring rivals to end their conflict.
AFP - Russian gas deliveries to Europe could resume later Friday, the head of Russia's state gas firm said, raising hopes for an end to a transit dispute with Ukraine that has left several European states without gas at a moment of bitter cold.
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