“Culture” is the broad term for all the soft aspects of business that are often the sustainable source of competitive advantage. It includes the mental models, core values, management styles, history, stories, nature of personal relationships and motivations of employees.
Even if 2 companies had the same assets, processes, structure and systems they would operate in different ways and diverge over time due to their different ‘software’.
When is it useful?
A companies culture should ideally fit and reinforce its strategy. No strategy will work if it requires a radically different culture to succeed; on the other hand, culture is dynamic
How do you do the analysis?
A Useful framework for culture consists of separating it out into the manifestations of “how we do things round here”:
- Dress Code
- Decsiion Making style
- Conflict resolution procedure
- Status levels
I want to know more
Gareth Jones and Coffee – Culture
How can you adapt this concept?