Fitting in

Are you in touch with your company’s
culture? If you’re considering a
career move, are you taking into account that organization’s culture?

“Organizational culture is comprised of
the assumptions, attitudes, experiences,
beliefs, values, norms and tangible signs of
the organization’s members and their behaviors,” says Dana Gibson, Ph.D., CPA,
president of National University. “From
organizational values develop organizational norms or guidelines that prescribe
appropriate behavior by employees.”

During the interview process and upon
joining an organization, a person will
quickly sense the particular culture.

Smart Business asked Gibson how
important it is to identify and fit in with an
existing corporate culture.

Do executives place enough emphasis on
corporate culture?

Most high-level executives understand
corporate culture, but many are not convinced of its impact on their job. Studies
indicate, however, that culture does indeed
have a huge impact on an organization.
Popular business books reinforce this. In
his book ‘Good to Great: Why Some
Companies Make the Leap … and Others
Don’t,’ Jim Collins identifies one of the
qualities of a great company as a strong
culture. In their book ‘In Search of Excellence,’ Peters and Waterman note
that a key to high performance is culture.
In a study of some 200 companies over 11
years, Kotter and Heskett found that a
strong sense of corporate culture is an indicator of stronger financial performance.
The research is highlighted in their book,
‘Corporate Culture and Performance.’
Executives who don’t recognize the importance of culture will undermine their own
effectiveness and that of the entire organization.

If preparing to transition, how can an executive evaluate the culture in the organization
he or she is considering?

There are many listening and observation
tactics that can help you determine the dynamics of an organization. During the
interview process, look around. Look at
the clothing, the types of furniture and how
it is arranged, the facilities — the cafeteria,
the boardroom. Listen to the stories the
people tell and the experiences they brag
about. What are their rituals? What types of
symbols — e.g., the Mary Kay Pink Cadillac
— do they value? Review the reward systems, the employee orientation and training documents. Is there a formal or informal hierarchy? Is it in line with your personality and style?

How can the executive determine if he or she
fits in?

If you’re a hierarchical person trying to
blend into an entrepreneurial type of company, it’s probably a mismatch. Understand
your leadership style and organizational
personality. What type of organizational
dynamics are you comfortable with? On
the other hand, there are situations where
a board wants to bring in someone with a
different style to move the organization to
a different place. Senior leadership is
responsible for strategy, and it’s almost
impossible to achieve strategic goals without a culture that is aligned. If an executive
is being brought in to lead the company in a new direction, it will require deliberate
effort to change the culture.

What happens when it’s not a good fit?

We’ve seen several high-profile media
stories of CEOs who have had to step
down. It happened with Carly Fiorina at
HP and Bob Nordelli at The Home Depot.
In certain scenarios, the culture is so firmly entrenched that it would be near impossible to change direction. For example, if
the Ritz-Carlton, which has been focused
on the customer for many years, were to
try to shift its focus to cutting costs, the
employees might not budge. When culture
is good, the organization stays on track. If
it has to change, top management must
clearly understand what needs to be done.

Do corporate cultures change?

Cultures develop over time. In most cases, organizational culture ‘grows up’
over the years without a plan; other times,
the direction is very deliberate. Often, the
culture is a reflection of the original
founders and is very ingrained. Can it
change? Absolutely. However, be cautious.
There are numerous examples of failures.
The most successful changes have resulted
from long, deliberate efforts on the part of
the senior staff. Some organizations try a
revolutionary approach rather than an evolutionary approach. It can happen that way,
but that scenario usually involves a lot of
turnover — although, in some cases, that is
the intention.

Obviously there is no one key to success.
The advice would be to 1) set the mission
and values and determine how they target
culture, and 2) identify/build in symbols,
training and rewards and communicate
what is important to the organization.

Culture doesn’t change overnight, but it
doesn’t have to take years. It depends on
how strong the culture is and what type of
shift you want to achieve.

DANA GIBSON, Ph.D., CPA, is president of National University,
La Jolla, Calif. Reach her at (858) 642-8802 or [email protected].