Organizational Culture

ORGANIZATIONAL CULTURE
Leadership and how your people work together

In looking at the organizational culture of a family business, we are assessing behaviors that are important to creating a strong effective staff and competent leadership.

Values and Beliefs in Your Organization's Culture

Values and Beliefs describe a family business' commitment to its constituencies: customers, shareholders, employees, the community, vendors, etc. Values describe the standards and ideals that a company holds in high regard. They provide a framework for implementing strategic initiatives.

• Values Integration

  • Consistently reinforcing standards in company communication mediums
  • Values are clearly defined
  • Company practices, systems, and processes are carefully aligned with values
  • Values are consistently communicated
  • Employees understand critical importance of standards
  • Carefully considering values during the strategic planning process
• Values Credibility

  • Ensuring values are not compromised
  • No strategy is adopted that might violate company standards
  • Values are reviewed periodically to maintain relevance
  • Ensuring employee day-to-day experiences are consistent with values
  • Confronting behaviors that violate values and standards
  • Cynicism is virtually absent

Leadership

Different leadership styles are available depending upon concern for profit or concern for production. An imbalance in the concerns tends to sway the leader to a less effective style. Click here to see the grid of leadership styles.

• Management Modeling

  • Management "walks-the-talk"
  • Managers are viewed as role models
  • Management styles are aligned with values and consistent across division/ departments
  • High level of confidence in senior leadership
  • Senior managers are viewed as honest and ethical
• Strategic / Tactical Balance

  • Tactical and strategic skills among managers are equally emphasized
  • Line managers understand the "big picture"
  • Managers understand the broader implications of their decisions
  • Managers can effectively communicate the company's strategic plan to their staff
• Empowerment in Organizational Culture

  • Balancing authority and control
  • Encouraging employee involvement
  • Decisions made without unnecessary or authoritarian approval process
  • Decisions driven to the lowest appropriate levels
• Developmental Coaching

  • Delegation is a motivational tool
  • Managers consider employee's self-esteem during coaching/ counseling
  • Managers take the time to recognize a job well done
  • Managers encourage initiative
  • Coaching is viewed as developmental vs. punitive
  • Employee goals/ aspirations are taken into consideration
• Building Effective Teams

  • Managers promote teamwork
  • Team participants are excited about and committed to their goals and objectives
  • Cross-functional communication is promoted
  • Meetings are well planned and highly participative

Human Resource Systems and Your Organizational Culture

Human Resource Systems within the organization's culture define how a company recruits, trains, challenges, and inspires its employees in the pursuit of its strategic intent.

• Selective Recruitment

  • Considering only high-caliber candidates
  • Evaluating candidate compatibility with company culture
  • Interviewing skills are a company strength
  • Obtaining boss and peer input for critical hires
  • Evaluating managers on their ability to recruit top talent
• Employee Orientation

  • Providing a comprehensive orientation program
  • Emphasizing values and beliefs
  • Senior managers participate in the process
• Does Your Organizational Culture Encourage Continuous Learning?

  • Training is a company priority
  • Providing employees with the necessary training to perform at optimum levels
  • Training programs have a positive impact on organizational performance
  • Aligning training programs with strategic goals
  • Training programs are well designed and structured
  • Spending a strategically proportionate amount of money on training
  • Carefully designing a succession plan
• Performance Management
  • Performance management system is results-oriented
  • Ensuring mutually agreed upon goals
  • Accountabilities and timeliness are clear
  • Interim performance reviews are standard practice
  • Performance evaluations are comprehensive and substantiated
• Reward systems

  • Rewarding appropriate skills and behaviors
  • Rewards are fair and equitable
  • Rewards are worth the effort
  • Promotions are deserved
  • Rewarding team performance greater than or equal to individual performance

Organization Character is Part of Your Organization's Culture

• Informal Communication - Part of Your Organizational Culture?

  • Open exchange of ideas without fear of reprisal
  • Using conflict or disagreement constructively
  • Establishing an "open-door" policy
  • Balance of technology and face-to-face communication
• Organization Feedback

  • Establishing methods for internal feedback
  • Recognizing the value of employee input
  • Encouraging employees to offer their ideas and opinions
  • Communicating the results of the feedback
• Adaptability to Change Vital to Organizational Culture

  • Company is proficient at change management
  • Ensuring that all employees understand the reasons for the change
  • Ensuring that all employees understand the process and methods that will be used to implement the change
  • Employees expect change
  • Ability to respond and adapt to change