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Introduction to Culture

What is culture?

The shared values, behaviors, goals, and social environment of an organization.

Culture Will Make or Break an Organization

Culture is powerful! Check out what happened to Scandinavian Airlines System (SAS):
  • 1980 - One of the least punctual airlines (14/17 of European airlines). Extremely centralized organization.
    • Profit of ~$17 million.
  • 1981 - ​Jan Carlzon becomes CEO: focused on culture and alignment, reinforcement of values, and decentralization
  • 1982 - Rated 1/17 European airlines.
    • Profit of ~$54 million
  • 1983 - In early 1984, SAS was selected as "Airline of the Year" for 1983.
Here is the actual presentation used by Jan Carlzon to launch the changes to SAS! See where you can spot the focus on culture. Also you gotta love the drawings!
"Leadership is stewardship. It's temporary, and you're accountable."
- Andy Stanley, Pastor
The true test of a leader is what happens AFTER they leave an organization. You're responsible for building the systems of success, the people in your organization are responsible for its success.
"Culture eats strategy for breakfast."
- Peter Drucker, "the founder of modern management"
Culture can help organizations overcome massive technical or other strategic hurdles (especially when compared with competitors), or it can absolutely cripple organizations, or at least prevent them from realizing their true potential.
"Treading water is not an option."
- Mark Miller, author of Culture Rules
Your organization is either getting better or getting worse. There is no in between! You cannot "tread water" and stay in one place. Make sure you're swimming FORWARD!

Culture, Recruitment, and Retention

The well-known adage is "people don't quit jobs, they quit bosses."

​We'd add: "... and culture." Don't believe us? Follow the data!

A survey of 5,000 adults in 4 countries found...

56% agreed with the statement "a strong workplace culture is more important than salary for job satisfaction."
  • 52% for age 45+
  • 65% for millennials
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Check out these other statistics:
  • 77% consider a company's culture before applying for a job
  • 73% would not apply unless its values aligned with own
  • 65% company's culture is one of the main reasons for staying
  • 74% would look for a job elsewhere if their current company's culture deteriorates

Real-World Examples

Meet the organizations we'll learn from in this course!
Sierra Soccer Team
A high school varsity soccer team. Made it quite far in the state tournament last year, but graduated many of their star players. Not seen as a contender for the state championships this year...
Blunder Mifflin Company
A regional paper company in a declining industry saddled by a bloated office staff. Struggling with profitability and customer service, possibly stemming from morale among the workforce.
Sharpe First Aid Squad
A volunteer first aid squad in Sharpe, New Jersey. Struggling with petty, interpersonal politics and with attracting volunteers, much of the call volume is covered by the same 10-12 people (in a town of 10,000).

Tl;dr Top Tips:

  • If you don't prioritize culture, your employees will penalize you (by leaving or worse...) and your organization will suffer.
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