The official BLOG of the corporate culture institute in Vienna.

2008-03-20

What is Corporate Culture?

Successful movies jump right into the action rather than telling the whole story how they got there up front. They postpone this necessary explanation to a later stage in the film.

I think after two posts we have to come up with some definition work here too. - So, what is corporate culture about? Corporate culture first and foremost is a culture. It is a culture which expresses the values of a corporation.

But, what is a culture, anyway? To put it simple it is “The way we do things around here.” Or to cite one of the more renowned sources: “It consists of a set of symbols, ceremonies, and myths that communicate the underlying values and beliefs of that organization to its employees.” (Dr. William G. Ouchi)

This is the very core: the common values of a group of people, a collective, make up the driving forces of a corporation. These values are typically communicated via symbols, ceremonies and myths – and rituals I would like to add.

Well that’s fine. But that’s not all. Besides the fact, that a plethora of different definitions, there is something missing: the link to the organization itself. So following Andrew van de Ven, we should add: “Culture can be viewed as a form of control in that it sets the premises of decision and action.” It means, that cc determines the way of leadership within a corporation, the interaction of peers on the same organizational level and its behaviour directed to the outside world, customers, suppliers, shareholders and other stakeholders.

On the other hand a corporation’s culture can be assessed by analysing the nature of individuals’ vertical and horizontal relationships within that corporation and to its environment.
Here we have found a starting point for further investigation and we should follow it. Corporate culture is not just an odd folkloristic add-on. If it is “the way we do things around here” those way can be broken down to elementary actions and examined one by one.
My claim here is: “Corporate culture can be measured.”

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