Culture is shaped by assumptions and beliefs
In his book ‘Organisational Culture and Leadership’ – Edgar H. Schein argues that each business has its own ‘corporate identity’ – “culture is to a group what personality is to an individual”. He defines culture in terms of espoused beliefs and values, mental models, rituals, symbols, history and basic underlying assumptions – and it manifests itself in “how things are done around here”.
Any business exists because people come together to do something they cannot do alone – solve a problem, or meet a need, or it may be simply to make money together. The relationships which form in service of that are informed and shaped both by how they think about whether people are purely self-interested, and whether they are coming together to do any more than make money.
In a purpose-led business there is clarity and a shared belief about the better world that arises from the success of the business, and that the core business is a network of relationships where people are committed to a shared worthwhile endeavour: this shapes strategy, determines priorities and guides decision taking. The business is seeking to create value for society, not only financial returns. This belief also shapes the culture, as defined by Schein at the start of this section.
An organisation that believes that the purpose of the business is to have a positive impact on people and planet, with profit as one outcome, and that the dignity of all is respected, has a very different culture to that of an organization that believes that the purpose of the business is to make a profit and that people are primarily motivated by money, status and power.
These two key assumptions about the purpose of business and people are the foundations of our thinking and can be explored more in: What is the role of business in society? and What it is to be a human
Assumptions about people
Of crucial importance is the operative assumptions or beliefs about people and what motivates them.
Respect for the dignity of people – each person is a someone not a something – is core to Blueprint’s thinking and is discussed in detail in: The starting point: each person is a someone not a something.
A narrow and limiting view of people still lies at the core of the practices, processes and systems of many organizations – namely, the view that people are best assumed to be essentially self-interested and motivated by money, status and power. We are all malleable therefore these assumptions can become self-fulfilling when any of us finds ourselves in a context where everyone else is out for themselves. Motivation is highly complex and multifaceted, and there is a growing body of evidence which supports the view that people are not atomised individuals motivated purely by self-interest. Money, power, status matters of course, but three other things it seems are crucial:
- We are fundamentally relational as well as individual, with a desire to cooperate and belong, to care for others and be cared for
- We seek meaning and want to contribute to the world through our lives and our work
- We seek through work ideally to grow, gain autonomy and in some way to realise our potential
Impact of assumptions on culture
The core assumptions and beliefs in the business reveal how people in the business think about people, how they think about the role of the business and what it exists for and the character of people that the business wants to attract and retain. All of these shape the culture – how it feels to be associated with the business, how people in the business are expected to behave and the experience of interacting with the business.
These assumptions about purpose and people become practical when we look closely at the operating model of a business, and what is seen as core to success. For instance, how choices are made about product design and innovation, quality and pricing, and customer service. Or how employees are treated in terms of delegation and responsibility, flexibility of work and personal development. Reward schemes also send strong signals about what the organisation really values, and what counts as success.
In our course Challenging assumptions & beliefs, we discuss why we think it is important to start with assumptions and beliefs in seeking to create a shared understanding of what purpose means for a business and how to explore these in your organisation.