Tuesday, July 27, 2004

Culture beats strategy. It also starts lots of conversations.

It seems several out in blogland have picked up on the "People far wiser..." post, incuding the nice folks at ecademy.com. (Sorry, you have to sign up to get to the forums.)

Anyway, it only makes sense that somebody [Adriaan Wagenaar] asked the good question:
In discussing Culture and strategy issues, one is often reflected in the other. I meet organizations who want a Cultural Change and after long discussion we find out they actually were looking for a 'corporate remote control' to change others, not themselves. I also meet organizations that present their corporate behaviour as 'culture' while they basically are speaking about how they make things happen.

So I think it is most interesting to look at how culture (a particular belief system) shows up in strategy and how strategy shows up in a culture.
Yeah, where are the examples? Good for him.

I suggested an American example would be Progressive Insurance...
Their cultural mix dictates that Intrinsic Goods, rather than instrumental ones, are the product they offer. Their auto insurance claims process is built around the fact that smashing into another person is a psychological trauma for many people. Their claims response people are there, on scene whenever possible or necessary, ASAP with a calming demeanor, your sanity in mind, a blanket, a hot cup of coffee--a guide in the situation.

Spell that COMPASSION, not I-N-S-U-R-A-N-C-E.

That big C is a huge Intrinsic Good like Love or Faith--rare, but you can't live without them. Progressive knows this and knows their rarity makes them all the more leverageable as a business purpose.

To me, this is not crass: I need insurance, I desire compassion in my life and for my loved ones. When do I want both? When I need them most.

That is how corporate culture moves from flavor of the month buzzword, to real, meaningful and--GASP--sustainable, competititve advantage.

They get it. They make buckets of money at it. And they aren't embarrassed to tell their mothers what they do.
In fact, they can't wait.

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