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O
rganizational culture
affects nearly all company share. Since these beliefs general- those who are inside of the cul-
endeavors, from the exe- ly function at an unconscious ture and live it every day, part-
cution of strategy to the accept- level, they tend to be taken for nered with the more objective
ance and implementation of new granted by organizational insiders. perceptions and observations of
processes. The culture is likely to Culture tends to be felt by those someone outside of the culture.
influence risk managers’ capacity within it, yet remains invisible. The outsiders are more likely to
to form partnerships with the While it’s rather obvious that observe things that insiders take
businesses, to participate in the organizations vary in their look for granted. They can look for the
development of business strategy, and feel, the nature of these dif- patterns in behaviors and the sur-
and to introduce risk frameworks ferences often remains elusive prises or unexpected events. The
into the company. Organizational and difficult to define Therefore, insiders can attempt to help the
culture assessment, then, should assessment of the culture is diffi- outsiders decipher what the
become a fundamental part of any cult at best. Nevertheless, even events and surprises mean.
strategy. the invisible can be brought to The primary role of the out-
light with the right assessment siders is to gather data concerning
Culture Defined process. what goes on in the organization
Practically speaking, organiza- through systematic observations.
tional culture is “the way we do Insider and Outsider Roles in They collect information through
things here.” Culture is composed the Assessment Process interviews and focus groups, and
of the values, basic assumptions Thorough and useful assess- they review strategic plans, news
and beliefs, and ways of working ments of an organization’s culture releases, internal memos, newslet-
© 2003 by RMA. Kathleen Miller
3
Assessing Your
Institution’s Culture
information to be gathered can be problem, your data collections will levels. A straightforward method
quite extensive, target your data be more focused. You will concen- for gathering this data is to ask
collection by focusing on an trate on assessing the causes of the people throughout the organiza-
assessment goal. problem and how the culture con- tion why they are doing what they
Have you identified problems tributes to these causes. Always are doing. Assessors frequently
that must be addressed? Or do ask yourself how you will use the will ask people to comment on
you see new opportunities that data once you collect it. If you some aspect of the artifacts. For
you suspect would require a cul- can’t answer that question, you example, if those higher in the
ture change? Are you interested in may be wasting your time in col- hierarchy are located on different
assessing your current culture’s lecting the data in the first place. floors from those who are lower in
ability to support a new organiza- the hierarchy and interact only
Step 3—Determine how you
tional strategy or direction? formally, the assessor might ask
will collect the data. Once you
For example, perhaps you are people throughout the organiza-
have pinpointed the data that you
considering establishing a more tion why this is the case. As peo-
need, you must determine how to
robust risk management strategy ple answer this question, the
collect it. Unfortunately, collect-
that would require tighter integra- assessor will continue to probe for
ing useful data on a culture isn’t
tion of the processes into the the underlying assumptions.
always a straightforward process.
overall structure of the organiza- Employees might tell the assessor
In most cases, outsiders should be
tion. In this case, the culture that the company has chosen to
involved in the data collection. An
assessment would be targeted organize the offices by level so
outsider is anyone who is not part
towards all aspects of the culture that the officers of the company
of or directly affected by the cul-
that could affect your ability to can access each other more easily.
ture under study. Of course, you
carry out this strategy. They may say that the officers
will need to work closely with the
need to confer with each other on
Step 2—Identify the types of outsiders to point them in the
strategic issues frequently. The
data that you need to collect. right direction, assist them in col-
assessor might point out that the
Once you have determined why lecting data, and help them inter-
senior officers are rarely in their
you are collecting data in the first pret the data.
offices at the same time, thus
place, you must outline the types In general, as assessor begins
making spontaneous conferences
of data that will serve your purpos- by looking at the more visible cul-
unlikely. By drawing attention to
es best. For example, if your pur- tural markers or artifacts. For
this inconsistency, the assessor is
pose is to assess the organization’s example, if you are interested in
likely to get at the underlying rea-
readiness for a new, more integrat- assessing orientation toward
sons for segregation by floor.
ed risk assessment strategy, your power, you may want to look first
Perhaps the interviewees then
data collection will be fairly exten- at the visible signs, such as how
will say that the officers are locat-
sive. You might want to study how offices are positioned. Are the
ed on the higher level floors to
decisions get made, where the offices separated by level in the
protect them from interruptions
sources of power lie, and how peo- hierarchy? Are there differences in
from their subordinates. They
ple relate to power relationships. the sizes of the offices? How do
may go so far as to say that they
You would want to look at commu- people at various levels in the
believe all organizations have
nication flows within the organiza- hierarchy communicate with each
ways of protecting their senior
tion and how people relate to other? The purpose of collecting
leaders from those lower in the
cross-functional responsibilities. artifactual data is to get a sense of
organizations. At this point, the
You may want to assess core values the look and feel of the culture
assessor has gotten to a basic
pertaining to risk and how these regarding the target issue.
assumption about power in the
values influence actions. Next, assessors may want to
organization. People within this
On the other hand, if you are collect data at the second and
culture believe that those who are
trying to fix an organizational third, or values and assumptions
at the top of the hierarchy must