In the interest of full disclosure, I have been employed by both organizations mentioned. Both employment situations have ended, and I currently have no further business with either organization. I do continue to develop relationships inside these organizations and have great hope for both businesses to further succeed. It is hoped that the commentary here promotes and helps, as nothing said here should be taken as derogatory. The comments come from research of more than a decade in both organizations, long discussions with employees, vendors, stakeholders, and other customers of both organizations. If either organization would like to comment, their full and unedited commentary will be posted in following discussions.

Creating a culture follows a basic set of principles, namely the example of the leaders, including their words and actions, followed by repetition and the passage of time (Tribus, n.d.). Tribus (n.d.) specifically places the core and creation of organizational culture in the example of the leaders regardless of whether the leader is a leader or a manager by action and word. Hence, the example of the leaders and managers remains more potent to organizational culture than any other single item. As an example of this, Quicken Loans has “ISM’s” which the entire organization is expected to live creating the culture of the business. These Quicken Loans “ISM’s” are exemplified first by the leaders, supervisors, directors, managers, to front-line and new hires from the first interaction with Quicken Loans.

We need clarity here: a leader is never a manager and a manager never leads. While a leader might have duties similar in nature to a manager, the point of focus in the leader is to build others, while the manager’s focus will be to protect and defend their own patch of ego. A leader welcomes inputs, allows freedom, and generates followers. A manager throttles all organizational communication, refuses to accept responsibility or accountability, and destroys any who might be perceived as a threat. An overabundance and overreliance upon managers has been the major cause of problems in business for 40+ years. The dearth of leaders and leadership remains a core organizational cancer for many businesses, to the detriment of all societies, associations, and environments.

To create a culture specific to adaptability, several additional key components are required, namely, written instructions, freedom, and two-directional communication in the hierarchy (Aboelmaged, 2012; Bethencourt, 2012; Deci and Ryan, 2000; and Kuczmarski, 1996 & 2003). Again, the example of Quicken Loans “ISM’s” remains important and applicable. Quicken Loans has an “ISM’s” book available for free to any visitor and any office. This printed material forms a contract with the vendors, customers, visitors, etc., who desire a copy to judge the organization on each of the “ISM’s” printed. The same information is part of the Quicken Loans website. ISM’s remain subject to change to improve the entire organization. Ability to change is a key quality required for all organizations and cultures.

Alvesson and Willmott (2002) add another component to this discussion. As the organizational culture takes hold of an individual employee, the employee begins to embody the culture, for good or ill, in their daily interactions both personally and professionally. This hold develops into an identity adding another level of control from the organization over the employee binding them to the organization. The identity control becomes a two-edged sword, as the employee will form loyal opposition that can be misinterpreted to be intransigence, and the loss of that employee causes other employees to question their identity and the organizational culture. Or the opposite, the cultural hold is one that breeds desire to not only onboard the culture but personally invest in the organizational culture, and the employee experiences a positive feedback loop building trust in the organization.

Two examples, two separate cultures, two distinct differences in employee attitudes and behaviors are as follows. University of Phoenix has a problem with organizational culture being mentioned from the first day of training, such as employees discussing “how things used to be” and “desiring a return to previous cultures and leaders.” This attitude forms its own culture, creating distrust, and invalidating organizational change. Other attitudes and managerial expressions reinforce this negativity to the detriment of all employees, customers, vendors, and stakeholders. Regardless of the printed statements to the contrary, changes have not become embodied in the organization and the example is telling.

The second example is Quicken Loans. Talking with previous employees reveals a favorable rating of the organization. Talking with current employees on any level reveals a personal favorite “ISM” that speaks to them as a motivating influence for improving daily. The same holds true for decision-makers; many of the vendors and most of the longer-term customers all share a similar “ISM” experience. Example makes the difference!

Quicken Loans and University of Phoenix are creating a culture attuned to the kind of organization they desire, what the organizational leaders communicate, how leaders are seen exemplifying the organizational culture, and building that culture one employee at a time until that employee then begins to sponsor other employees into the organization’s culture. For good or ill, the same process of example propels the organization towards growth and development or trouble and market share loss. The organizational leader must set clear goals, define the vision, and obtain employee buy-in prior to enacting change, then exemplify that vision after the change (Deci and Ryan, 1980, 1985, & 2000). To change an organizational culture, this process must be followed.

Key to this process is Tribus’ (n.d.) [p. 3-4] “Learning Society” vs. “Knowing Society.” The distinction is crucial and the organizational culture must be learned and the process for continually learning honed and promoted to protect the culture from variables both internal and external. A “Learning Society” adapts, builds, grows, and is continually flexing in change akin to a finely crafted sword. A “Knowing Society” is overrun with bureaucracy and managers, fails to grow, cannot flex in change, and remains brittle under a polished exterior, which consequently stresses that exterior causing problems to erupt in a multitude of different areas taxing already tight resources and impacting future ability to adapt to change.

© 2016 M. Dave Salisbury
All Rights Reserved

References

Aboelmaged, M. (2012). Harvesting organizational knowledge and innovation practices: An empirical examination of their effects on operations strategy. Business Process Management Journal, 18(5), 712-734.

Alvesson M, & Willmott H. (2002, July) Identity regulation as organizational control: Producing the appropriate individual. Journal Of Management Studies 39(5): 619-644. Available from: Business Source Complete, Ipswich, MA. Accessed July 27, 2014.

Bethencourt, L. A. (2012). Employee engagement and self-determination theory. (Order No. 3552273, Northern Illinois University). ProQuest Dissertations and Theses, 121. Retrieved from http://search.proquest.com/docview/1294580434?accountid=458. (prod.academic_MSTAR_1294580434).

Deci, E. L., & Ryan, R. M. (1980). The empirical exploration of intrinsic motivational processes. In L. Berkowitz (Ed.), Advances in experimental social psychology (Vol. 13, pp. 39–80). New York: Academic Press.

Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. New York: Plenum.

Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11, 227–268.

Kuczmarski, T. (1996). What is innovation? The art of welcoming risk. Journal of Consumer Marketing, 13(5), 7-11.

Kuczmarski, T. (2003). What is innovation? And why aren’t companies doing more of it? What Is Innovation? And Why Aren’t Companies Doing More of It?” 20(6), 536-541.

Tribus, M. (n.d.). Changing the Corporate Culture Some Rules and Tools. Retrieved from: Changing the Corporate Culture Some Rules and Tools Web site: http://deming.eng.clemson.edu/den/change_cult.pdf

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