Making cultural change work

Build a Corporate Culture That Works

There’s a widespread understanding that managing corporate culture is key to business success. Yet few companies articulate their culture in such a way that the words become an organizational reality that molds employee behavior as intended. All too often a culture is described as a set of anodyne norms, principles, or values, which do not offer decision-makers guidance on how to make difficult choices when faced with conflicting but equally defensible courses of action. The trick to making a desired culture come alive is to debate and articulate it using dilemmas. If you identify the tough dilemmas your employees routinely face and clearly state how they should be resolved—“In this company, when we come across this dilemma, we turn left”—then your desired culture will take root and influence the behavior of the team. To develop a culture that works, follow six rules: Ground your culture in the dilemmas you are likely to confront, dilemma-test your values, communicate your values in colorful terms, hire people who fit, let culture drive strategy, and know when to pull back from a value statement.

Harvard Business ReviewErin Meyer

The article from the Harvard Business Review, written by Erin Meyer, emphasizes the importance of effectively managing corporate culture to drive business success. Despite the common acknowledgment of its significance, many companies fail to articulate their culture in a way that genuinely influences employee behavior. Meyer outlines six guidelines for building a robust corporate culture:

1. Base culture on real-world dilemmas: Instead of using abstract values, companies should identify and articulate responses to specific dilemmas employees face. This approach makes the desired culture actionable and practical in guiding daily decisions.
2. Move from abstraction to action: Test your cultural principles against real-life scenarios to ensure they guide behavior effectively. Discard or refine principles that don’t pass this test.
3. Use vivid and memorable descriptions: Employ colorful, concrete images and provocative statements to make cultural values memorable and impactful.
4. Hire for cultural fit: Ensure that new hires align with the company’s cultural values. This alignment is crucial for achieving the desired behaviors within the organization.
5. Align culture with strategy: Cultural values should support the company’s strategic objectives. Use dilemmas to clarify how employees should make decisions that advance these goals.
6. Acknowledge limits and exceptions: Recognize that there will be situations where cultural values may not apply. Define these limits explicitly to provide clear guidance.