Implementing strategy Managing through Organizational Culture Stanford Executive Briefings Mission: Why.

. Make the world better and strategic vision. Once, theyre defined, they need to be translated into daily life. Culture helps people make decisions in their daily trade-offs. Organisational culture is a pattern of beliefs and expectations chared by the organisations members. These produce norms that (can) powerfully shape the behaviors of individuals and groups. (Stan Davis) Norms define what is appropriate and not, social rules. They have a huge impact on our behaviour and change what we do just by seeing someone elses presence! Ex: washing hands. We are very much under others control, and its not because of rules. This is where firms culture intervenes. Employee handbook: Use your good judgement in all situations. (Nordstrom) Feel free to ask any help at any time. Using owns discretion at any time. Its really successful because customer service is defined by how you deal with exceptions. Empowerment of employees, in light of strategic objectives. You need AGREEMENT (to what extent do we agree with those?) and INTENSITY (to what extent do we care about those?). Very often, you hae agreement, but no intensity = vacuous beliefs (will you stay late for a customers request? No way...) You have the dominant culture, but also enhancing, orthogonal and counter Important Organizational Norms: continuous improvement and innovation employee latitude and responsibility adaptation to change dedication to quality team work efficient and effective workflow

Harvard study shows innovation and continuous improvement (change) is really key to have good long term performance. How do promote that? Innovation requires both creativity (ideas) and implementation. Support risk taking and encourage people to challenge the status quo, but also tolerate mistakes, rejecting safe rather than sorry approach. Not promote people with great ideas and fire those with ideas who failed. Ex 3M, Minnesota. So, in a word, what you need is a Stable internalized processes geared towards innovation! How to manage organizational culture? 1. Selection process: does he fit the job, but also the overall organizational culture. Mix backgrounds, not only accountants from best universities for entry-level accountant positions. Important to select the people who you

send to hire: they select those who reflect themselves and so you need to make sure theyre with you 2. Recruitment and selection: specific organization makes people do explicit choices even before they enter the doors. Ex: join the company before you know the salary, increase commitment to the company. 3. Socialization and Training: P&G we want to make sure you understand territories, colouring a map of the world. We know youre good, but we want to ensure that you know how we do things around here, enhancing core values of the firm. Ex: 2 weeks of tradition training Walt Disney. Managing organizational culture through a reward system. Informal and formal need to be melted well: Rapid feedback Consistent and comprehensive rewards: people need to know what will be rewarded Consistent successful role models: who are successful and what are their common characteristics Adherence to transcendent values at the top: sticking in the face of adversity etc.

Conclusion: You can be successful without managing culture, but it really offers you an opportunity to imprive your business. Its a powerful force that clarifies whats important, and coordinates members efforts without the cost and inefficiencies of close supervision. They will know what trade-offs to make. Managing culture requires creating the context in which people are encouraged and empowered to do their vey best. Using selection, socialization and rewards as opportunities to convey whats important to organizational members. Organisational culture is too important to leave to chance