Organizational culture refers to the unwritten, unspoken, but powerful “rules of the game” that determine appropriate ways to “think, act and feel.” The culture determines the employee experience and the degree to which mission and values are realized.
Colleen Barrett, president of Southwest Airlines, stated, “The Southwest Airlines culture... is our essence, our DNA, our past, our present and our future...If another company somehow managed to hire all of our fantastic employees, that company might see its best performance but still wouldn’t match up to Southwest.”
Think of a triangle separated into three layers. The bottom layer (foundation) is the mission. The next layer up represents the values, and the top layer is culture, which serves as a reality check. Many organizations develop their mission and values, but never check if they are aligned with reality as lived by the employees. A healthy culture that is aligned with mission and values is critical to success because a positive member experience depends on a positive employee experience.
An institution’s culture may help or hinder its growth. For instance, the goal to be an agile, high-tech organization is unlikely to be realized if decisions are made through slow deliberation by risk-averse committees.
One way to research, analyze and understand one’s culture is a culture assessment workshop but there is a simpler, two-step method:
Talk to new employees who have not yet been assimilated into the culture. Ask them what distinguishes the institution from others they know. How are decisions made, and how does the process differ from that in other organizations?
Analyze the tools that are used to make decisions and test the assumptions that dictate how decisions are made.
Culture is a key component of organizational success. It can be an engine of growth or a brake that halts forward momentum. Which one thrives in your credit union?
Neil Goldman is Senior Partner of Member Research. He can be reached at 310-643-5910 or by email at ngoldman
