How can I change my corporate culture?

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Working with the ideas of John Kotter and James Heskett, authors of Corporate Culture and Performance, IBM undertook an investigation and found that the more “adaptive” an organization’s culture, the better it performed in twenty-two key processes. How do you develop an adaptive culture? IBM recommends following these steps:

* Make the external internal. Most organizations have a vision, and all organizations have values. In an adaptive culture, employees not only understand the vision, they act on it. IBM’s study uncovered two techniques for achieving the kind of employee participation—tie performance evaluations to the goals of the company, and have executives internalize the vision and values and demonstrate them in their deeds.

* Communicate. A hallmark of adaptive culture is strong, clear, and repeated communications from the top, including the CEO, CFO, and CIO.

* Be externally focused. Many managers are too busy talking to each other to notice their customers and their employees, and their emphasis is on order, control, and risk reduction. But no company can afford to take its eye off the customer, and managers need to encourage innovations and appropriate risk-taking. Inhibitive cultures stifle creativity; people are generally afraid to take risks because of the fear of failure and punishment. In an adaptive culture, employees are willing to take risks and think creatively. Managers should encourage this.

* Be realistic. Don’t expect to develop an adaptive culture overnight. It takes a long time, but the results will make it well worth the time and effort.



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