|Culture of the Organization
Culture of the Organization is identified as one of
the 39 subject areas (facets) of Asset
Management as defined by the IAM and GFMAM.
DefinitionA system of shared assumptions, values, and beliefs, which governs (have a strong influence) on how people behave in the organization. It expressed itself in how people dress, act, and perform their jobs.
Elements of Culture
Listed below are some of the key artefacts of the culture of an organization:
Type of Cultures
Listed below are some examples of different types of organizational cultures
Culture manifests in how the organization perceives:
Challenges with Culture
Listed below are some of the key challenges emerging from or facing the culture:
Artefacts of Culture
Listed below are some of the management principles associated with organizational structure
Just as organizational structures contain a variety of vertical and horizontal elements, so too do organizational cultures contain many mixtures and compounds. Several studies have been conducted by psychologists, sociologists and management consultants to develop methods that classify different types of cultures. We are familiar with the difficulties associated with personality tests that attempt to capture the many nuances of human personality, such as extroverted. vs. introverted, arrogant vs. shy.
Listed below are seven cultural dimensions that can be used to develop a cultural profile of an organization. Each of these dimensions represents a spectrum extending between two polar opposite positions.
Every organization will occupy a position along each of these spectrums and that position will change over time depending on factors such as the people within the organization and the challenges facing the organization.
The following figure provides a conceptual illustration of the leadership team considering the different dimensions that make up the culture of their organization.
Culture vs. Structure
Sometimes the structure dominates the culture and sometimes the culture dominates the structure. Ideally, both culture and structure should be managed holistically.
There is a well known quote from Peter Drucker that says “Culture eats strategy for breakfast”. What this means is that some of the best O&M plans can be defeated if the organization is not ready to adopt the plan. It is a waste of time to attempt to force a plan onto an organization if the organization has strong cultural values that are at odds with the plan.
The O&M team needs to understand the difference between the structure and culture as these aspects of the organization can have a major influence on success or failure.
There are ptions for making changes to structures and cultures of an organization and reveal how O&M strategy should always invite culture to sit down for breakfast.
Ask yourself the following questions:
Fig. Some of the key elements that underpin the culture of an organization.
Fig. Leadership reflecting on the different manifestations of the organization's culture.
Fig. Functional silos will defeat the organization. Instead: integration, collaboration and alignment are some of the critical success factors.
Fig. Subjectivity and bias always play a role when people are involved in decision-making.
Fig. Asset management is hard work and requires sustenance. Culture and strategy are two essential ingredients of the asset management recipe.
Fig. It all starts with people.
Fig. I. Care is reconciling the conflicting opinions and interests of the different owners and stakeholders, including positions that are dichotomized as: reactive vs. proactive; optimistic vs. pessimistic; short-sighted vs. long-sighted; etc.
Fig. A facilitated workshop of asset owners, managers and operators intended to generate critical thinking around asset monitoring, performance and continual improvement.
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