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 maître d' chat with and entertain the diners. In fact, the maître 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.
![]() |
|
![]() |
|
![]() |
|
![]() |
Driving down the road our eyes frequently scan the vital... Read More
Ten or so years ago, an international consultant, specializing in... Read More
This article relates to the Job Security competency, commonly evaluated... Read More
Motivation is a term that is so widely used, yet... Read More
Leslie was the new manager of the group. She was... Read More
Define the Problem First. It seems obvious, but how many... Read More
The use of cultural awareness training has increased rapidly in... Read More
When you are acclaimed for excellence during times of crisis... Read More
Most executives view offshore outsourcing most of all as a... Read More
You're so excited you're practically bouncing off the walls. This... Read More
Out of the box thinking is a popular fad today.... Read More
Everyone knows that an agenda is the key to an... Read More
According to a Gallup Poll, 80 percent of employees said... Read More
I've often heard managers say - "My door is always... Read More
As a child, you probably heard, "to thine own self... Read More
Color is a big factor effecting all indoor... Read More
Bad hiring decisions cost organizations, both in dollars and lost... Read More
Do you want to measure your workers' level of satisfaction?... Read More
Managing Client Relationships: Even the best run organizations occasionally run... Read More
"He Hate Me" was the nickname of Rod Smart, a... Read More
1. Let people know what you expect. If people know... Read More
Remember the 80:20 rule? You may not get everything perfectly... Read More
Mary Poppins describes a style of management which has for... Read More
Kinds of Workplace ConflictsLet's start by identifying where conflicts happen.... Read More
Everyday a business owner, CEO, or manager somewhere is complaining... Read More
What is a Virtual Assistant? A Virtual Assistant is a... Read More
The challenge of managing difficult managers can be rather daunting,... Read More
Outsourcing has become a controversial issue and a hot topic... Read More
Talk to as many consultants as you can before hiring... Read More
Here's an easy quiz to check the health of your... Read More
If you have company delivery vehicles at your small or... Read More
What behaviour maximises the chances of thinking of great ideas?... Read More
Imagine the following scenario - you pay a visit to... Read More
Doing business and meeting the needs of workers is increasingly... Read More
It happens over and over in businesses every day.Within large... Read More
Bar Charts and the Information ChallengeWhether one is an unknown... Read More
I've always been fascinated by situations where art imitates real... Read More
In a competitive world with the need for businesses to... Read More
The title of this article sounds like simple advice, but... Read More
As the business world enters a period of hyper-competitiveness, every... Read More
Go into any bookstore and you will find a big... Read More
What behaviour maximises the chances of thinking of great ideas?... Read More
Companies are welcoming a diverse range of employees (The Sunday... Read More
Once working and focused in tune with what they do... Read More
Introduction"High performing HR function affects bottom line nearly 10%"- A... Read More
Creativity can be defined as problem identification and idea generation... Read More
Every meeting is a laboratory where you can observe and... Read More
INTRODUCTIONThe typical approach executive teams use to cascade, or roll... Read More
It used to be that only the largest multi-nationals needed... Read More
Are you ready to raise money for your startup?Leslie Mitts,... Read More
This week I was asked to speak at an internal... Read More
Each year many people create a list of resolutions designed... Read More
There are seven essential elements to successful business communication:StructureClarityConsistencyMediumRelevancyPrimacy/RecencyPsychological Rule... Read More
Supervisor-employee relations are a critical part of a work place... Read More
Pssst, want a stock tip that will make you rich?... Read More
Sometimes.In fact making some small changes to the circumstances when... Read More
Fear, Incentives and GrowthZig Ziglar says that there are three... Read More
Another fallacy ingrained in the minds of most marketing managers... Read More
In numerous programs I've conducted on performance appraisals, with Human... Read More
Let's begin by singing the jingle from an old US... Read More
Integrity is very important to me, and I try hard... Read More
Fundamentals in Place? There is a designated place for everything... Read More
The Old Way ? Command and ControlAlthough workplaces and management... Read More
Much of the literature and advice on implementing business change... Read More
Business IntelligenceBusiness Intelligence has become a very important activity in... Read More
You know, this would be a great business if it... Read More
Business Management |