What is organisational culture?

At its most basic level, organisational culture is the ‘personality’ of the organisation.  Organisational culture is comprised of assumptions, values and norms which are demonstrated not just espoused.  Culture is also evident in the tangible signs of the organisation, including technology and the way it is used, processes, what people wear and the physical layout of the workplace.  Members of an organisation soon come to sense the unique culture of their organisation. Culture is one of those terms that’s difficult to express distinctly, but everyone knows it when they sense it.  Organisational culture is often defined as the ‘unspoken rules’ and norms of behaviour – ‘the way we do things around here’.  

There is no single definition for organisational culture, but one we find useful as Brandheart is:

Organisational culture is a system of shared assumptions, values, beliefs, customs, rules (often unwritten) and philosophy which governs how people behave in organisations.  These shared values have a strong influence on the people in the organisation and dictate how they dress, act, and perform their jobs. 

Every organisation develops and maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the organisation.

Organisational culture is demonstrated in:

1. The way in which the organisation conducts its business, how employees and customers are treated and how it interacts with the wider community.
2. How decisions are made, including the development of new ideas and the freedom of personal expression in decision-making.
3. How information and communication flows through the organisation’s hierarchy. 
4. The behaviours of leaders.
5. How committed employees are towards collective objectives/organisational direction and change.

The concept of culture is particularly critical when attempting organisation-wide change.  Experienced change leaders know that successful business transformation is enabled or hindered by the organisation’s culture.  Therefore, business transformation must not only include changes to structures, processes and systems, but also transforming the corporate culture as well.  That’s one of the reasons that many strategic leaders now place as much emphasis on identifying values, purpose and identity as they do goals and strategy.