Changing Corporate Cultures

A strong culture happens when everyone in a company understands and does what it takes to deliver the productivity, relations, and quality consistent with its brand promise. Indeed, in the current age of integrated branding, organizational culture is often referred to as the internal brand. In these terms, an internal brand is the set of organizational values that are linked to the external brand promise, with internal processes, systems, and behaviors reflecting these values.

When the values of organizations are effectively interwoven into the sinew of organizational behavior, they can provide clearer guidance for employees on how to behave and operate than HR policy manuals can. Paul recalls a workshop where ideas about HR mandates covering work practices were being explained. During a break he overheard a conversation between employees in which one said, "Those things will never happen, it's not the way things are done around here." That particular person had been with the organization for just seven weeks, and he could already see what was real and what was wishful thinking by HR.

Regardless of what corporate executives state publicly, the beliefs and behaviors of most employees are quickly and profoundly influenced by the existing culture of a company. Sam Walton, founder of Wal-Mart, the world's biggest retailer, was known to say that it takes only a week or two before employees begin treating customers the same way as they are treated by their employer. ^[9]

This presents both a challenge and an opportunity. The dynamic impact of culture on brand development demonstrates the risks of a top-down approach to organizational culture change. When mandated from the top, change is often met with significant resistance. The failure to align organizational behavior with desired values often occurs because the root determinants of behavior have not been considered. Gaining commitment to values demands dealing with the deeply embedded and widely held beliefs that sit at the subconscious level of a company.

Here's a telling example. Some years ago the New Zealand Fire Service decided to shift its focus from "putting out fires" to "fire prevention." The fire service emphasized educating the public about the causes and consequences of fires. It encouraged the use of smoke detectors and sprinkler systems. To reflect the new direction and brand, this shift required redirecting resources, changing operational processes, and adjusting employment relations.

Although for most of the public this was an entirely rational shift consistent with the purpose of the fire service, it met with significant resistance from the bulk of firefighters. The new direction was inconsistent with their subconscious organizational beliefs about the fire service and their role in it. They had joined the fire service for the challenge of firefighting to save lives and property. In between emergencies, they saw their role as waiting in readiness. Years of disharmony between management and staff followed this attempted brand shift.

Such experiences teach us that leaders of organizations need to develop approaches where change is shaped through and by people, not in spite of them. Too often management forgets that shifting employees to a different path is better achieved through inclusion and inspiration, rather than insistence. Consequently, when leaders want to create genuine culture change, they need to ask three questions about the proposed solution:

• Has the defined change been coherently derived from and integrated with the company's business strategy?

• Are we using an engaging, intelligent, and inspiring approach to gain buy-in from staff and management?

• How is the culture to be maintained and supported after initial change intervention(s)?

^[9]As cited in an interview with John Huey and Geoffrey Colvin. Jack Welch/ Herbert Kelleher Broadcast, Fortune, November 18, 1998.