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424 PART 5: THE LEADER AS SOCIAL ARCHITECT
organizational ceremonies, and offi ce layout—all the things one can see, hear,
and observe by watching members of the organization. Consider some visible
artifacts of culture at John Lewis, one of Britain’s most successful retailers.
People working in John Lewis stores are typically older than staff members at
other retailers and are called partners, not employees. Everyone shares in com-
pany profi ts and has a say in how the business is run. The entrance to leaders’
offi ces is small and functional rather than ostentatious, and stores exude an air
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of simplicity, calmness, and order. At a deeper level of culture are the expressed val-
ues and beliefs, which are not observable but can be discerned from how people
explain and justify what they do. These are values that members of the organi-
zation hold at a conscious level. For example, John Lewis partners consciously
know that dependability, service, and quality are highly valued and rewarded in
the company culture.
Some values become so deeply embedded in a culture that organizational
members may not be consciously aware of them. These basic, underlying as-
sumptions are the deepest essence of the culture. At John Lewis, these assump-
tions might include (1) that the company cares about its employees as much as
it expects them to care about customers, (2) that individual em-
Action Memo
ployees should think for themselves and do what they believe is
right to provide exceptional customer service, and (3) that trust and
As a leader, you can pay attention to
honesty are an essential part of successful business relationships.
organizational culture and develop an
Assumptions generally start out as expressed values, but over time
awareness of how cultural values, norms,
they become more deeply embedded and less open to question—
the organization.
and beliefs infl uence people’s behavior in
organization members take them for granted and often are not even
aware of the assumptions that guide their behavior, language, and
i
patterns of social nteraction.
Importance of Culture
When people are successful at what they undertake, the ideas and values that led
to that success become institutionalized as part of the organization’s culture. 9
Culture gives employees a sense of organizational identity and generates a com-
mitment to particular values and ways of doing things. Culture serves two impor-
tant functions in organizations: (1) it integrates members so that they know how
to relate to one another, and (2) it helps the organization adapt to the external
environment.
Internal Integration Culture helps members develop a collective identity and
know how to work together effectively. It is culture that guides day-to-day work-
ing relationships and determines how people communicate in the organization,
what behavior is acceptable or not acceptable, and how power and status are
allocated. Culture can imprint a set of unwritten rules inside employees’ minds,
which can be very powerful in determining behavior, thus affecting organizational
performance. 10
Many organizations are putting increased emphasis on developing strong
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cultures that encourage teamwork, collaboration, and mutual trust. In an
environment of trust, people are more likely to share ideas, be creative, and be
generous with their knowledge and talents. At the Container Store, a chain of
retail stores that sells boxes, garbage cans, shelving, and just about anything
else you might need to organize your home, office, or car, the culture encourages

employees to do whatever needs to be done. Simple maxims like “treat people
the way you want to be treated” and “be helpful to others” are granted policy
status at the Container Store. Cultural values that promote open communication,