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Can Culture Be Measured?

by Gail Finger
Edizen Senior Consultant

We all recognize that every organization has its own distinct culture. But can culture be measured? At Edizen, this question represents an area of research that we have been following closely.

Organizational culture can be defined as the underlying beliefs, values and assumptions that drive how work gets done. In the past, attempts to describe company culture have produced results that were more academic than practical. But new research has identified that it is possible to describe and measure company culture, and its impact on the bottom line. What’s more, a practical method has been developed to measure key metrics. The method consists of two tools called the Denison Culture Survey and the Denison Leadership Survey.

As a Senior Consultant at Edizen, I have become certified in the Denison method. Our goal is to offer these valuable tools to clients as a way to provide insights that link organizational culture to the bottom line.

Over the past 15 years, Daniel Denison, Ph.D., a consultant and professor of Organizational Development has conducted a great deal of research on the topic of organizational culture and the impact on performance and effectiveness. He is the partner and co-founder of Denison Consulting and is world renown for his work. A Professor of Management and Organization at IMD in Lausanne Switzerland, Dr. Denison is the author of several books including Corporate Culture and Organizational Effectiveness published by John Wiley in 1990. Most recently, he published The Denison Organizational Culture Survey and the Denison Leadership Development Survey based on a comprehensive study of 950 businesses of divergent sizes and sectors. In the Denison Method, he identifies the four traits of organization culture.

Mission – Is the company clear about why they exist and where
they are going?
Involvement – Do employees embrace the defined mission? Can they see the link between their jobs and the mission, and are they willing to give their all to achieve it?
Adaptability – Do employees fully understand the needs of their customers and are they able to respond to changing marketplace demands?
Consistency – Are there efficient and effective systems, structures, and processes in place to maintain focus on the mission?

Denison asserts that these elements of culture are manifested in a set of organizational behaviors. Since behaviors are observable, it is therefore possible to measure company culture.

Measuring culture can help leaders assess why their organizations may or may not be reaching financial and mission specific goals. It also can be used to track progress along the way so that leaders can be confident in their decision-making. In addition, knowing how executives and managers are performing in the four key culture areas can be invaluable in identifying where to invest training and development dollars.

Company culture is no longer a purely academic concept. Tools now exist to measure the behaviors associated with company culture, assess how your organization compares to the most successful ones, and focus your resources in ways that will give you the greatest return. Whether you want to invest in using an on-line assessment tool or not, it is important to find a way to understand how your organization measures up when looking at the four key culture traits of mission, involvement, adaptability and consistency.

Gail Finger is an organizational, leadership and management consultant with over 20 years of experience in the areas of human motivation, performance, and the psychology of change. She offers a wide array of services and programs that result in a highly motivated and productive workforce. They include leadership and management coaching, change management, team development, pre-employment assessments, and a variety of educational and experiential seminars.

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