When asked what does organisational culture mean, we often get the response that it is how people relate to each other in a business. The more astute person may even respond by saying it is the set of unspoken agreements between people or the underlying assumptions of the business.

These answers are all correct in part, but they are very people focused to keep culture in the domain of Human Resource departments. If these people oriented definitions of organisational culture are all there is to it, then culture remains allusive and intangible for the owner / leader of the business. If a leader was aware they had cultural issues in the business, they certainly would have difficulty in knowing what to do about it. Justifying spending money on correcting culture is difficult when it is not known how this expenditure will bring economic return to the business.

Clear Perceptions makes the intangible tangible. What if organisational culture is more than just a people issue? We view culture as the interrelationship between different functional areas of the business.

If this is culture, then what is a ‘Healthy’ culture? Healthy culture is the willingness to challenge your own assumptions, but also how effectively you are integrating the key areas of the business. Are you absolutely clear about your vision for the business or do you consider your business objectives to be your vision? If you feel you are clear about your vision, is the vision informing how each area of your business operates? Does your financial performance reflect health?

By linking all areas of the business back to vision and integrating them effectively, this will eliminate operational inefficiencies, guide how money is spent, inform your recruitment choices, have your brand more consistently and effectively communicated to the market, inspire commitment and innovation in your employees, gives employees a context big enough, so they feel safe enough to speak up and take responsibility – all of which will ultimately improves decision making, increases cash inflows and reduces unnecessary cash outflows. These results are tangible. This is a healthy culture.

You can find more information about culture change on our clear culture page.

This type of leadership behaviour sets the scene for an avoidance clear culture. Senior executives learn how to avoid problems, conflicts, differences of opinion and often group-think can set in. Group think is a type of dysfunction in an organisation that encourages like-minded people and prohibits differences. A good example of a leader who inadvertently encourages group-think is one that recruits clones of himself. Even when this tendency is pointed out to the leader, he recruits what he thinks is the opposite of himself only to realise years later that the senior executive who was chosen for his difference actually had the same pattern of ‘avoidance’ even though it looked different on the outside.

Avoidance culture has many forms and is very complex to resolve. This type of culture is difficult to identify because on the surface it looks as if everything is fine. People are ‘nice’ and friendly and it often feels safe. However, below the surface, things are not as they seem. Even when a facilitator goes looking there is so much denial, cover up, and we can do it by ourselves attitude that anyone who wants to make a difference is sabotaged.

The way forward through this maze is by working with the owners, senior decision makers or the Board on vision, purpose, strategy and business objectives. This intervention must be facilitated by a competent professional outside the organisation who has both the credentials and the strength to do the hard yards all the way through to resolution.

Examples of the kinds of organisational issues a company with an avoidance culture face are:

• Gossip is rife in the company;
• “He said / she said” style of communication;
• Employees and Senior Managers justifying poor performance;
• Declining Gross Profit Margin;
• Track record of missing key performance targets;
• Visible symptoms of organisational decline, such as, reducing sales, declining margins, cash flow restrictions.

You can read more about culture change at out Clear Culture page.

lilac hill invitation

LILAC HILL CRICKET FESTIVAL 2008
The Clear Perceptions corporate marquee was filled with CP clients and staff at the annual event at the beginning of the cricket season in November. Guests and staff had a ball enjoying the match and each other’s company. True to Clear Perceptions form, we considered the deeper questions, like ‘how is business strategy similar to a game of cricket?’ Attendees gathered to hear the Managing Director Sharon Faye acknowledge each and every one.

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