Changing Organizations: The Role Of Organizational Culture

Organizational culture was the hot topic of the management literature of the 1980s. New techniques for assessing and changing culture appeared in the organization development (OD) field, and a wide range of consultants on culture appeared almost overnight (some promising to change a firm's culture almost as fast). A great deal of research on culture was performed some to determine exactly what it was, some to find out how to measure and change it. The good news is that we have learned a lot about what culture is; we now have some good instruments for measuring it. The bad news--and the harsh reality--is that we have also learned that it cannot be changed easily or quickly.

Before going further, I will posit an explanation of "organizational culture." I rely on Edgar Schein's (1985) widely accepted definition, which identifies three levels of cultural phenomena: basic assumptions, values, and artifacts. Basic assumptions are the circumstances taken for granted in an organization as the "correct" way of doing things. They lie at the deepest level of culture and are the hardest to change. One basic assumption Schein found in an engineering firm dealt with decision making: the individual employee was valued as the key source of ideas, but the ideas still had to be assessed by the employee's work group--all relevant parties--before they were accepted.

The values of the firm are at the next higher level of culture, according to Schein. These refer to a sense of what "ought" to be. An example of a value might be the belief that on-the-job experience is the best form of training. Given this value, and assuming employees successfully learn their jobs this way, there would be little reliance on structured training programs.

At the most superficial level, artifacts are the overt behaviors and other physical manifestations of culture. They can usually be observed directly and are easier to change than assumptions and values. Artifacts include, among other things, procedures followed, technology used, and ways of communicating. Unfortunately, changing the artifacts generally does not yield a change of culture. To do that, one must eventually reach the values and (preferably) the basic assumptions.

Given this definition of organizational culture, let me now summarize the conclusions I have drawn from my own experience (and my review of the literature) on this topic. We can measure culture; therefore we can identify and understand any one organization's unique culture. Being able to measure culture, however, does not mean we can change it quickly as a prelude to transforming and improving the organization. We must learn about a company's existing culture--identify and understand it--to bring about any real change. I discuss each of these points in greater detail below.