Establishing a culture of continuous improvement

This article will provide an overview of organisational culture and how it is created and the practical steps that can be taken in order to shape it. An organisation's culture has a significant impact on its ability react to market changes, create innovative products and services, and adopt efficient processes and practices. This paper is for managers in a variety of organizations who want practical advice and information that will help them create an environment that allows them to adopt continuous improvement methods such as Six Sigma, Lean and Continuous Improvement.

Definition of Organizational Culture

A company's culture is a collection of all the beliefs, values, assumptions, principles and myths that guide individuals and groups in their thinking, decisions, and performance. Edgar Schein (MIT), who is credited for inventing the term "Corporate Culture", stated in his book Organizational Culture & Leadership (2nd edition, 1992, Jossey-Bass), that culture is "a basic set assumptions that defines what we pay close attention to, what it means, and how we react emotionally to what's happening."

Schein stated that an organisation's culture can also determine the actions taken in response to different situations. Schein's definition clearly demonstrates that managers who want to make radical changes to the organisation's 'norms' must understand, influence, and eventually change its culture.

Another definition of culture is "The way we do business around here." This simple definition captures the reality of an organisation's culture as it manifests in the behaviours and thought patterns of individuals and groups. These collective behaviours affect the strategy, objectives, and day-to-day operation of organizations.

This is how it works: Organisational culture can have a positive or negative impact on all you do, regardless of whether you want it.

Description of Culture

Over time, an organization's culture is learned. This culture can be taught to new employees via formal training programs, but it is most easily absorbed by stories, myths and shared behaviors within teams. Five aspects define the culture of an organization.

Values

These are the methods by which people evaluate certain activities, behaviours, and qualities as good or poor. They are based on how individuals or modi di dire perceive an organisation.

- Beliefs

These are a reflection of an individual's understanding and appreciation of how their team and organization works, and the likely consequences of any actions they take. Some people, for example, will adhere to strict rules in order to get ahead. Others may resist taking on risks because they believe that risk minimization is the best way to manage a process. How a person behaves directly depends on what they believe.

Myths

These stories are often legends or persistent stories that give clues or signals about team members' expected behaviours. Many myths are based on fiction mixed with truth, and can become embellished over the years.

Traditions

These are events that have a repeating significance. They include celebrations, parties, and other activities that help to preserve cultural values. Traditions are a way to show groups what is important to the organization.

- Norms

These informal rules are used to guide the day-to-day work of an individual, including dress code, work/life balance and communication styles. People accept norms as the "way things are" even though they are not often written down.

Edgar Schein explained how the five elements of culture discussed above can manifest at three levels within an organization.

- Level 3 - Surface Manifestations & Artefacts

These are the most visible, accessible forms of culture. These are the norms and traditions that a team or organization uses to define their culture. They include how conflicts are handled, decision making processes, working hours and formality.