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Can the culture of a company be dictated by top level management?

This question is part of the Focus Human Resources Roundtable: How Organizational Culture Affects Organizational Performance on April 4, 2011

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Debbie Laskey MBA
Marketing & Brand Strategist, Consultant
Posted on May 11, 2011

Sorry, but I disagree. I have worked in a variety of industries in both the for-profit and non-profit arenas, and I have seen the gamut of corporate cultures. CEO's and senior leadership teams behave in a certain manner, and this behavior sets the tone and standard for corporate culture. If the senior leadership teams are afraid to speak their minds, the CEO leads with an iron fist. Each level on the org chart acts less and less confident - and this all goes back to the CEO. On the other hand, if a CEO is open-minded, confident, and openly asks for feedback and contributions without threat of termination, yelling, or other unprofessional outbursts, the leadership teams beneath the CEO will act in a similar manner, thus creating a corporate culture that is positive, results-driven, and forward-thinking.

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Hendrie Weisinger
Psychologist, B-School Prof, Author, Consultant

If you are equating "dictate" with "order," I don't think you would find an effective CEO or executive who would answer affirmative. Creating corporate culture is a popular subject in the executive education programs I am part of so I hear lots of thoughts. "Not dictate," top CEOs would say, but "Model."

Indeed, the attributes of a corporate culture start at the top but to be ingrained, they must be modeled by those who preach them. A CEO who wants to build an ethical culture better make sure his behavior and attitudes reflects the ethics he supports.
I remember my consulting experiences with Intell---Andy Grove was running the show at the time and he created a very work tough high performance culture. He was the firt to work and frequently the last to leave. He walked the walk, is the cliche.
Analogous--Parents who want their kids to be respectful and kind better act the same.
So, top management cannot dictate a culture, but they can model the behaviors that reflect the culture desired in hope that it will inspire their troops to do the same.

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Guy Farmer
Unconventional Training, Team Building & Effective Communication
Posted on May 11, 2011

Great question Britten. I'd add that the company culture is created by what CEOs do rather than what they say. When CEOs behave in a kind, open, empathic, collaborative way they set the tone for the rest of the organization. I've noticed that a frequently missing piece is for the CEO to actually establish an ongoing dialogue about the kind of organization she is trying to create. Ongoing training and discussion helps people practice the desirable behaviors and develop the new culture.

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Eric Britten
President, Britten & Associates, LLC
Posted on May 13, 2011

Very interesting answers!

Debbie says, "CEO's and senior leadership teams behave in a certain manner, and this behavior sets the tone and standard for corporate culture."

Hendrie says, " ....... they must be modeled by those who preach them. A CEO who wants to build an ethical culture better make sure his behavior and attitudes reflects the ethics he supports."

Guy says, " ..... the company culture is created by what CEOs do rather than what they say."

John says, "If you use dictation in a more liberal sense in that it is a tone and example set by the CEO and others in the C-suite, then yes, culture must be dictated by top level management."

Bob begins by saying, "Top management definitely dictates the culture of the organization.". Then he adds, "On the other hand, if there is a well ground culture in an organization, it must be supported from the top levels."

At this mpoint, the pervasive sentiment seems to be that company culture is reflective of the actions and behaviors of those in the C-suite.

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John  Prpich
Owner/Employee, Talent Blueprint
Posted on May 16, 2011

If not top management then who, certainly not the employees or the other levels of management, that would be akin to the tail wagging the dog. The challenge I see is the difference in what leadership wants or believe the culture to be and what it really is, this is where the opportunity lay.

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John Jorgensen
Freelance Consultant/Educator
Posted on May 12, 2011
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I think the answer to this lies in how you interpret dictate. If you uses dictate in its literal sense, then no the CEO cannot command what the culture is in an organization. I was associated in the past with an organization where the top official said "we will have an open door communication policy" but he was never approachable on any issue or question and would not discuss any business related item with anyone. Needless to say, the company did not reflect his "dictation".

If you use dictation in a more liberal sense in that it is a tone and example set by the CEO and others in the C-suite, then yes, culture must be dictated by top level management. Without top level support, any effort to set a tone or culture will die and wither.

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No, I have worked with corporate presidents who thought they could, but the culture is directed from the bottom up - what the savvy executive CAN do, is listen to the employees, actively engage them in what needs to remain the same and what needs change and influence those results. Culture change is a slow process, and typical of any change, if not embrased - there will be push back, and undermining of the changes.

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Douglas  Ross
Founder , Principle Dynamics
Posted on May 13, 2011
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Eric
I would agree but I think that is only part of the answer. Culture is reactive and reflective. The actions and behaviors of the C level are only part of the answer. The impact of workplace polices and practices, the history, product maturity and penetration , standard operating procedures , and departmental structures also show up in the culture. If an accounting practice is cumbersome, wasteful and inefficient due to accountability and transparency legislation, then this also shows up in the culture.

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Eric Britten
President, Britten & Associates, LLC
Posted on May 13, 2011
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Doug: Very good points. Culture really isn't very simple, is it? As a matter of fact, many companies are just finding out how complex it really is. There are some who feel that culture can be carefully engineered through organizational values, principles, and management behaviors. Recently, Chalie Judy made a presentation from the HR perspective that focused on making organizations culturally relevant to their workforces. He cited many of the activities of the Top 100 Companies to Work For. Thank you for your added perspective.

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Douglas  Ross
Douglas Ross Replied on May 16, 2011

Eric
We see this from a similar framework. Culture is an outcome of management strategies, systems, processes. You can change the culture by working on the culture. You change the culture by doing the work of the organization on itself -policies, procedures processes, structures etc. To address the idea that organizations need to be made relevant to the culture starts with the admission of where they are not relevant, Many employees see that elements of leadership are out of touch with their employees and many customers witness companies that are out of touch with their customers. They are profitable in spite of themselves.

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Hendrie Weisinger
Psychologist, B-School Prof, Author, Consultant
Posted on May 13, 2011
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It seems everyone is baskically saying the same thing; a corporate culter is created by actions, not words. Those CEOs who model the "desired culture" have the best chance of having it created. Indeed, this is common knowledge for corporate culture gurus.

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Steve Browne
Executive Director of HR, LaRosa's, Inc.
Posted on May 16, 2011
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I think you pose a great question Eric. I think top management does dictate culture, but it may not be intentional. Often they set the norms that people will need to follow (i.e. the infamous denim at work argument), or they may allow behavior, such as managers who aren't good with people but they're great producers, which also alter/affect a culture.

On the very positive side though, top management can drive and create a phenomenal culture which is engaging, inviting and consistent. In order to do this though, I would argue that they need to have a strategic, integrated HR effort to make sure that they have someone who can be their captain in moving the culture forward.

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Douglas  Ross
Founder , Principle Dynamics
Posted on May 16, 2011
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John
What is your opinion on employees and other levels of management being held responsible for cultural change? If a dysfunctional culture exists, is it solely the responsibility of leadership?

For example, a new authoritarian and bull headed boss was appointed by corporate to lead our company. .

He visited the floor (unionized shop) and saw something he didn't like. He asked the employees to change it and they responded without a word (his reputation preceded him).

It costs us hundreds of thousands of dollars to fix the problem he created.

Later, I sat in as the front line leader of this group told his employees that although it was good to obey commands, it was not good to obey commands that hurt the company. He said that they knew better what would happen and they allowed the leader to look foolish.

In fact it was an act of sabotage to allow what happen to happen and not what the authoritarian leader really wanted to happen. He wanted success. Success was good for all of us. They took advantage of his ignorance. Was it a good lesson for him -perhaps but it still made us all look bad..

The employees and the front line leader agreed they should have done the right thing and explained the probable outcomes to the leader.



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John Jorgensen
John Jorgensen Replied on May 16, 2011

Not sure which John you were talking to, so I will go ahead with my reply. What do you think that boss was doing? He was setting the culture he wanted in the company he was hired to run. Do you really think that a "authoritarian and bull headed" boss would listen to employess explain why they defied his orders? Not sure employees below the top can change a culture if it is contrary to how the ultimate authority sees it.

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Douglas  Ross
Founder , Principle Dynamics
Posted on May 16, 2011
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John Jorgensen
Thank you. I think the boss was trying to establish himself and set the tone for his leadership. In this case he chose incorrectly. Mistakes happen to everyone.

I agree that we must follow the ultimate authority; however, it is the duty and responsibility of people who are doing the job to inform, advise and alert the leader to consequences of actions.

Everyone in an organization is responsible to surface the truth so that a leader can deal with reality effectively, regardless of his/her style.

If the people had done that and the leader then ignored them and ordered them, then I would agree with you but in this case, the people , who were protected by a union, did not follow through on their responsibility and therefore are accountable and responsible for damages.

This would then mean they are responsible also for changing the cultural if it was in the benefit of all.

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Bob McKenzie
President, McKenzieHR, LLC
Posted on May 12, 2011
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Having been through a number of top management changes throughout my career, I would say the answer is a definitive "YES." Top management definitely dictates the culture of the organization. Why do you think a new CEO often fires the direct reports and replaces them with people he or she has worked with in the past? Most times, I have seen a 180 degree change in the culture that confuses employees as they are not sure what they are supposed to do with the new leadership.

The organization should hire someone whose beliefs compliment the culture of the company. Unfortunately, this does not happen all the time and employees go into a cultural shock during the transition and many don't make it.

On the other hand, if there is a well ground culture in an organization, it must be supported from the top levels. If not, there is chaos. I have been there - I know.

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