The Key Components of Culture Change
By Patti Phillips and Clarence Cudanes
We often describe each business as a unique combination of a few key elements: strategy, structure, systems, processes, people, and culture. Of these, the last is perhaps the most perplexing. Seen to be lacking the material and visible character of the other factors, culture has traditionally been seen by many to be inaccessible — difficult to plan, define or to change.
Despite culture being underestimated and undermanaged by some to the organization’s deficit, studies have linked strong cultures to improvements in productivity, employee performance, ability to attract top talent, and reduction in turnover and absenteeism. As early as 1992, John Kotter and James Heskett published the book Corporate Culture and Performance that showed a dramatic positive difference in companies with established performance enhancing cultures in metrics such as stock price and net income. More recently studies by Gallup and IBM show similar effects of positive cultures and employee experiences on a wide range of business results including productivity and profitability.
In reality culture is both material and visible in both its experience and its results. It is revealed in three basic things: what is said, what is decided, and what is done. Leading culture change requires defining the desired cultural traits…
