5
Enterprise Culture

5.1. The importance of enterprise culture for performance

Since the advent of globalization and global awareness of strategic issues, which are linked to the appearance of the Internet, systemic uncertainty has grown to the point where top quality is not only the way to generate social recognition but also to adapt to a shifting environment. This applies to individuals as well as organizations. Adapting to socially valorized standards does not suffice anymore; we must be free of these staples in order to be better connected, free of thinking patterns in order to be more innovative. The ability to innovate, to find new solutions to unpredictable problems that arise, is becoming an essential quality. Insofar as today’s concern is customer personalization, we are no longer concerned with the mass production of identical products, characteristic of industrial capitalism. We are now concerned with the production of products that can be adjusted to the particularities of a certain customer or environment. The best-adapted enterprises cultivate adjustment and permanent innovation.

For Elliot Jacques from the Tavistock Institute in London, enterprise culture is defined by its way of thinking and acting, which is more or less shared and must be learned and accepted (Jacques 1997). For Maurice Thévenet, enterprise culture is “a set of shared references in the organization, constructed throughout its history in response to problems encountered by the enterprise” (Thévenet 2010).

Enterprise culture is the combination of different cultural “materials” with very specific characteristics, such as values, symbols, myths, rites and taboos, all aligned with purposes contributing to the company’s global performance.

5.1.1. New criteria for enterprise performance

Today, an enterprise’s ability to foster creativity among its members is a determining element of success. The ability to innovate, create new concepts and produce ideas has become an essential competitive advantage. Therefore, we must offer another entrepreneurial model than the one that currently prevails in the majority of traditional organizations.

It is an economy of adaption where the ability to execute is what makes the difference; the source of added value becomes the ability to create new things (technological, managerial and organizational innovations, among others). The most ideal environment for innovation is a cooperative environment, as is verified by the artistic world or scientific research. What becomes a decisive factor in terms of entrepreneurial success is the ability to make one’s employees work together as collaboratively as possible.

5.1.2. A key factor in performance

We no longer aspire to merely conceive innovative products, but to become intrinsically innovative and capable of providing new solutions to every new situation. Innovation cannot only be a matter of know-how; it also has to be a matter of attitude. In this respect, it is no longer quantities of knowledge that are a deciding factor but the quality of the relationships between the actors with this knowledge, namely, the individuals of an organization. The ability to reconfigure these relationships in order to produce a new product or a new custom-made solution becomes a decisive factor. This collective intelligence is at the heart of winning enterprises’ culture. The challenge for all companies is no longer to instantly conceive the most performance processes for realizing products and services, but to create the right conditions under which the entire organization collaborates constantly and agilely, working to attain this quality.

5.1.3. Can an enterprise’s culture stifle progress and innovation?

Enterprise culture constitutes a coherent body that cements relationships between individuals and generates a sort of charter that employees must adhere to, under penalty of being rejected. This culture is just as strong as the enterprise is old, prosperous and dominant in its sector. The weight of this culture can become a true burden that prevents personal initiatives, complicating enterprise regroupment operations or acting as a factor of discouragement. We can take the French port industry and press as an example: having a very strong and very rigid culture, often reinforced by a long trade union tradition, they have not been able to adapt to changes in the world economy and have lost their leadership or are sometimes endangered. Conversely, enterprise culture must be an asset for the enterprises’s performance. Companies from very different sectors have understood this well. For example, Toyota by widely deploying the Lean Management, Essilor by encouraging employee participation in the company’s capital, or Google in developing the brand’s attractiveness to young people, have all succeeded in creating a culture that is strong but adaptable to their environment, which has contributed largely to their success.

5.1.4. Enterprise culture: a sustainable resource and a competitive advantage

Forming a sustainably innovative enterprise involves a culture that incites individuals to become actors engaged in their fate. It is a matter of considering individuals, as Eugénie Vegleris says: “Wherever there is a human, everything is possible, the best as well as the worst. It is by focusing on the best that we awaken the best” (Vegleris 2006). Thus, a culture of responsibility that takes us from hierarchical obedience to responsible autonomy is a true asset for the enterprise to succeed in competing in a new environment.

This culture must be founded on solid pillars:

  • – A culture of liberty: respect for the individual in their choices, actions, diversity and granted confidence, far from the temptation of formatting and dominating them.
  • – A culture of dialog: the promotion of healthy and transparent of perspective and exchanges building consensus.
  • – A culture of responsibility: forgetting about dirigiste and infantilizing management based on “carrots” and “sticks”. We must strive to create an environment of recognition and pleasure that fosters involvement and creates permanent motivation.
  • – A culture of collaboration: implementing “learning” approaches.

5.2. Case study: assessing the maturity of enterprise culture

5.2.1. H3O

H3O agreed to test the questionnaire and evaluate its maturity in terms of sustainable development. The following rubric concerning the enterprise culture was provided to illustrate the method.

The test was conducted by the authors in the form of discussions with the president of the firm, whom we thank sincerely. The maturity evaluations obtained in this way correspond to perceptions, which would, of course, need to be confirmed by precise audits.

H3O is a very operational consulting firm which also has interim managers notably in the agri-food sector.

Enterprise culture is an important aspect of diagnostics done prior to all of H3O’s missions. It often reveals differences between managers’ perceptions of their enterprise and those of their teams compared to the reality that we perceive on the field.

This can cause problems with governance and the strategy’s translation, which H3O helps to correct.

Table 5.1. H3O: overview of the maturity of the digital transformation focus. Summary of results of the detailed evaluation grid from the guide “Performance durable de l’entreprise : quels indicateurs pour une évaluation globale ?”1

H3O Overview of the culture focus Non-existent Discovering Deploying Under control Optimized Comments
×
The culture is in line with the business strategy. × It is necessary to reduce discrepancies between the way managers perceive the enterprise culture and the way its employees perceive reality at the ground level.
The business has identified, analyzed and measured its culture. × Analysis of the enterprise’s culture makes it possible to characterizeways of living and being in the company.
The business’ values are identified, shared, and recognized by all employees across all services and hierarchical levels. × The enterprise culture fosters each employee’s involvement with responsibilities and recognition within the ecosystem.
Communication, training, collaborative tools, recreational areas, etc. are used to accompany changes towards the target culture. × In practice, firms on a human scale focus more on the image leading their internal image rather than focusing on tools to develop this culture.
The enterprise culture is open to change and innovation (agility, room for error, speed in decision-making, speed in implementation), and the digital transformation is used as a lever for change. × Developments in the enterprises’ culture make up the aspect most sensitive to change among all projects.

Some managers, notably in SMEs, tie their name to a company by associating themselves with it. Culture allows for a way of characterizing the lifestyle within the enterprise. Culture sometimes deeply impregnates the enterprise and makes it difficult to transform with regard to new challenges for the enterprise and its employees.

The enterprise must foster the involvement of each and every one of its employees with recognition internally and within the ecosystem.

Taking culture into account allows us to naturally place humans once again at the center of the enterprise. Regardless of the position that they occupy, every person should be considered as an actor with competencies and able to address challenges originating from the strategy’s translation at the person’s level. There are fundamentals that must not be forgotten!

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