Organisational Culture and Performance
Organisational Culture and Performance

Organisational Culture and Performance

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Thoughts on the “Organisational Culture and Performance: An Evidence Review” report by Eric Barends and Denise Rousseau

Arguably, culture is a bit like the weather. It surrounds us and, in some respects, informs or modifies our behavior. But the idea that one specific type of weather will consistently produce one type of response or performance seems flawed. Therefore, it is no surprise that this report recognizes there is something called culture, but we can’t quite define it. Similarly, there is something called performance which we also struggle to define, making finding a correlation between the two particularly challenging.

The reason I believe we can’t specifically define culture is that it’s nebulous. It’s a combination of everything we say and do. When we aggregate this, we end up with something inaccurate. For example, we might say the average family has 2.4 children, but clearly, no family has 0.4 of a child. Through aggregation, we lose nuance because no family is perfectly average in terms of gender, age, race, culture, or religion. So, in the aggregation, we create something that’s false, which doesn’t really exist, making it very difficult to draw correlations with it.

Regarding performance, this too poses another challenge. What constitutes good performance for one organization might be considered poor for another. Is it productivity, efficiency, quality, speed, value, or profit maximization? Quality can mean very different things. Indeed, quality is intended to mean different things. It allows us to define a level of quality such that a cheap BIC Biro has quality appropriate to its price, market, and customer demand, whereas a Montblanc fountain pen also has quality but targeted at a different market, a different price point, using different components, ostensibly for a different purpose. However, the utility of both, in that they both write, is the same. Here we see they have something in common, yet their performance metrics are very different.

Notwithstanding this, it is still worth pursuing an understanding of culture. But perhaps we should move the issue to look at your culture. Not to examine all families that constitute the 7 billion people on the planet, but maybe just your family, and what does and does not work in your family or organization.

Likewise, looking at the generality of performance could be confounding. But if you’re examining performance for your rowing team, what that constitutes for your crew, in your boat, on your waters, given your weather and circumstances, and your course—that is something with clear boundaries and greater control.

So overall, I do think there is value in trying to understand the correlation between culture and performance, but I believe it has to be done in a well-focused way, looking at the individuals, the teams, and the organizations, rather than at this broad, nebulous concept of the entire world.

Key bullet points from the “Organisational Culture and Performance: An Evidence Review”

1. Rationale for Review: The review explores the longstanding claim that organisational culture is a key driver of organisational success, examining whether culture can be clearly defined, measured, and linked to performance.

2. Search and Selection of Studies:
Utilized multiple databases to gather studies from 1980 to 2019.
Focused on quantitative, empirical studies related to workplace settings.
Excluded cross-cultural studies, national cultures, and subculture effects.

3. Main Findings:
Definitional Ambiguity: No consensus on what constitutes ‘organisational culture’; it is considered an anthropological construct with various definitions.
Measurement Challenges: Discrepancies in how organisational culture is measured; popular tools lack consistent construct validity.
Link to Performance: Studies show mixed results on the culture-performance link; overall, the relationship is found to be weak.
Cultural Change: Limited evidence on the effectiveness of interventions aimed at changing organisational culture to boost performance.

4. Specific Observations:
Some cultural elements are linked to specific performance outcomes, but these links vary and are generally inconsistent across different studies.
Organisational culture as a predictor of performance is relatively weak compared to other factors like general mental ability and leadership.

5. Conclusions:
The evidence does not robustly support a strong link between organisational culture and performance.
Organisations should be cautious in investing heavily in culture change initiatives aimed at enhancing performance based on the current evidence.

6. Methodological Notes:
Studies varied widely in their methodological rigor and often relied on self-reported data which could bias results.
Meta-analyses included indicated that while some studies found positive effects of certain cultural traits on performance, these were not universally replicated.

7. Implications for Practice:
Given the weak and inconsistent links found, it suggests that direct interventions in culture may not always result in improved performance outcomes.
Future research and practice should consider a more nuanced approach to studying and influencing organisational culture.

This report highlights the complex relationship between organisational culture and performance, emphasizing the need for rigorous methods in studying and interpreting culture’s role within organizational settings.

Tim HJ Rogers
Consult | CoCreate | Deliver

I support people and teams to grow, perform and succeed unlocking potential as a partner Consultant, Coach, Project and Change Manager. Together we can deliver projects and change, and improve the confidence, capacity, drive and desire of the people I work with.

ICF Trained Coach | MBA Management Consultant | PRINCE2 Project Manager, Agile Scrum Master | AMPG Change Practitioner | Mediation Practitioner | BeTheBusiness Mentor | 4 x GB Gold Medalist | First Aid for Mental Health | Certificate in Applied Therapeutic Skills

#people #process #performance #projects #programmes #pmo #change #processimprovement #projectmanagement #changemanagement #workshops #mediation #coach #icfcoach #mentor #facilitation #training #jersey #channelislands

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