I remember learning about this model some 20 years ago and it opened my mind and influenced my understanding of how business works. Before then I had been trained to improve performance by looking at the systems, processes and inefficiencies. It was the world of lean and streamlining, cost cutting and restructures. It was a mechanical approach to business, yet no business operates without an environment filled with rituals, customs, influencers, loyalties and the human aspect.
I see so many Managers rush to fix without knowing the root cause or context in which the problem evolves. The fixer is really just putting a plaster on the issue, not really solving the environmental or cultural factors that enabled the problem to arise. So before you rush in to fix the "problem", take a look at the environment in which the problem exists. As you read this lesson, try to see the wider causes and influences on your business blocks.
The Cultural Web identifies six interrelated elements of organisational culture that help to make up what Johnson and Scholes call The paradigm: What the organization is about, what it does, its mission, its values.
The Cultural Web Analysis helps you to understand the way employees interact with each other, how they handle their work, how decisions are made and you get things done. By deep diving into the six elements, you get an idea about the organisational culture and how it formed. You can then make decision about what to keep and what to do about the blocks and barriers to success.
Stories - The stories of events that are constantly talked about within the organisation. They are kept alive by the employees and are passed along to newcomers. You hear about past heroes, successes, failures and the people you want to watch out for. If you listen closely, you will hear the underlying values and cultural norms within the organisation. Is the tyrant the hero or the villiain? Is the compassionate leader revered or mocked? The stories reveal much about the values that apply within the organisation.
Symbols - The symbols are about recongisable expressions of the organisation. Are you known for an iconic building, a legendary Christmas party, generous company packages or the dress code? Do they reinforce behaviours or engrain the old world or new world you want to create?
Power Structures - The most powerful people within an organisation are deemed to have the most direct influence on the core assumptions and ideas within an organisation. Who are your influencers? Who hold the power? Do they hold power through hierarchy and fear or through charisma and integrity? The leaders often hold most power, and others look to them to see "how things are done around here", but also notice other influencers, perhaps the long standing members of staff, the famous people, the feared and loved.
Organisational Structures - Hierarchy and structure have huge impact on the culture. How are decisions made? How many levels of responsibility are there and what are the "rules" to reach them? Are you a flatter structure or traditional multi layered, strict system?
Control systems - This is concerned with how things get done. This includes the financial systems, who holds the budget, how it is set, how is performance managed, the quality systems and rewards. How these rewards and punishments are determined and how these are distributed within the organisation also falls under control systems.
Rituals and Routines. Often overlooked but incredibly powerful. Rituals are the events of an organisation in which they emphasise what is truly important to them and how they handle matters. For example, what happens when people join or leave the company? Do you celebrate births and marriages, special birthdays and show support for people going through a hard time? Do you invest in training, have coaches or handle promotions? Do you have charity days, dress down days or willingly give and receive feedback? These customs create a sense of belonging and group norms.
A case study
I worked with a client who was struggling to retain talent. The organisation had existed for 50 years or so, previously being a government owned entity. Many of the employees had started as apprentices and were now reaching their retirement decade. They had introduced their children into the "family", believing it to be a job for life, steady, comfortable and stable.
As technology, science and customer demands advanced, the leaders realised that they needed new skills and expertise and worked hard to attract new talent: only to have them leave after a year or two. This was the problem. Their perceived solution was to give career paths, a few perks and benefits and hope for the best.
Within a week of working with them I could see the real issues.
The stories - I was told by everyone about the Financial Director who ran the organisation with fear and control. I learned of mass redundancies with a ruthless cull over 10 years ago. I heard how week the Managing Director was because he was "nice" and had "good intentions" in a belittling way. The message I was being onboarded with was that this was a cold, uncaring, ruthless place driven by fear.
The controls - every decision was made by the board, but final say was by the FD as he held the budget. Bonuses and promotions had to be approved by committee and only the favourites who played the game were rewarded. It was highly bureaucratic and any innovation was quashed.
Power structures - everyone's role was banded and people were openly told that "you aren't paid to think" or "that's not within your pay grade". The senior leaders didn't sit within their functions, instead they all sat on one floor which was locked to outsiders. They had priority parking, their own canteen and perks. Their wing was nicknamed the dragons lair.
Symbols - the reception area was slick, bright, modern and comfortable. The meeting rooms were modernised with posh coffee machines and biscuits galore. Yet as soon as your passed through the back door, it was like stepping into the 1980's. The paint was beige, the furniture was old, tired, and beige and the filing cabinets were beige. It was depressing. It gave a clear message about who was important and who was not.
The reason for the talent leaving was clear. What they thought they were getting and what they actually got once they passed through the public face of the company were totally different. They were mis-sold in every way. They were talented, bright and ambitious people who had the confidence to get another job as soon as they could.
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