05 April 2009

Working as a business coach and executive mentor in the Midlands and London, company organisational culture for business owners and directors is a subject that is always in the background but is constantly at work within communication, recruitment, promotion and of course politics. This short description explains how the Denison Organisational Culture model provides a structure where you can discover exactly what your company’s culture is and where it might need to be changed. After reading this article, you will: have a process to follow when discovering what your company culture is be able to compare it with other companies in your sector and size understand which areas your company is strong in and what areas the company is weak in recognise the type of people your company needs to be successful have a structure to work within when identifying target markets and core customers Organisational Culture - Denison Model© Organisational Culture refers to the underlying beliefs, values and assumptions held by members of the organisation, and the practices and behaviours that exemplify and reinforce them. Some aspects of organisational Culture, such as individual behaviour and grew norms are very visible. “ Working hard”, “ dressing conservatively”, “ looking knowledgeable”, “ acquiescing to authoritarian figures” or “acting friendly to customers” are aspects of cultures that are easy to observe. Other aspects of culture are harder to observe, since they represent the invisible assumptions, values and core beliefs of individuals. Examples of this less visible level of culture might be the belief in the importance of “ doing things right the first time”, “ being honest and ethical in all transactions”, “ giving very good value for money”, “ looking after number one” or “ going beyond expect patience to satisfy the customer”. The messages that come from an organisation's culture are closely linked to the organisation strategy and management practices and have a great impact on the people who work there. For this reason, it is very important to understand those aspects of your organisation's culture that may have an influence on its performance. The Denison Organisational Culture survey is based on 15 years of research on over 1,000 organisations and 40,000 individuals. It uses 60 items to focus on for cultural traits that are significant impact on the organisational performance in areas such as profitability, quality, sales growth, innovation and employee satisfaction. Survey measures each of these for cultural traits in three indexes. These traits and indexes are defined below: Mission - Defining a meaningful long-term direction for the organisation: Vision - The organisation has a shared view of its desired future state. It embodies core values and captures the hearts and minds of the organisation, while providing guidance and direction Strategic Intent and Direction - The organisation's plan to make their “mark in their industry”. Clear strategic intentions convey the organisation's purpose and make it clear how everyone can contribute Goals and Objectives - a clear set of goals and objectives can be linked to the mission, vision and strategy and provide everyone a clear direction in their work.   Consistency - Defining the values and systems that are the basis of a strong culture: Core values - Members of the organisation share a set of values, which create a strong sense of identity and a clear set of expectations Agreement - The organisation is able to reach agreement on critical issues. This includes the underlying level of agreement and the ability to reconcile differences when they occur Coordination and Integration - Different functions and units of the organisation are able to work together well to achieve common goals. Organisational boundaries do not interfere with getting work done. Involvement - Building human capability, ownership and responsibility: Empowerment - Individuals have the authority, initiative and ability to manage their own work. This creates a sense of ownership and responsibility towards the organisation Team Orientation - Value is placed on working cooperatively towards common goals to which all employees feel mutually accountable. The organisation relies on team effort to get work done Capability and development - The organisation continually invests in the development of employees skills in order to stay competitive and meet ongoing business needs Adaptability - Translating the demands of the business environment into action: Creating Change - The organisation is able to create adaptive change. The organisation is able to read the business environment, quickly react to current changes and anticipate future changes Customer Focus - The organisation understands and reacts to the customer and anticipates their future needs. It reflects the degree to which the organisation is driven by a concern to satisfy the customer Organisational learning - The organisation receives, translates and interprets signals from the environment into opportunities for encouraging innovation, gaining knowledge and developing capabilities. For more information on this excellent Organisational Culture model, which can be used to measure, quantify and be used to change your organisation, please contact me William Barron at william@creatinginsight.co.uk in the first instance and also go to www.denisonculture.com...