You Might Not Always Get What You Want

What does it mean to have a "Formal Culture" and an "Informal Culture"?

Have you ever instituted a new policy or procedure into your organization, spent countless hours and dollars trying to drive the initiative throughout the organization, only to see it fall flat? Organizations large and small face a similar problem -- how to make their organization become what they envision it to be.

When organizational experts refer to the overall performance of an organization, they often use the word “culture”. While there is disagreement on the exact definition of organizational culture, most would agree that it includes the values and behaviors that the majority of participants engage in; what most of the people believe and do most of the time. This is called the “informal culture” as compared to the “formal culture”, or what the leadership wants the culture to be. It makes no difference if your organization is a large corporation, a small “mom and pop”, a non-profit, or an educational institution, each of you have a formal and informal culture. One aspect of great organizations is that they close the gap between the two cultures so that “what’s going on - out there” very much resembles the vision of leadership.

“Informal Culture is what

most of the people believe and do

most of the time.”

You may wonder if these great organizations close this culture gap by hiring the “right people”, or if they do something more intentional to close this gap. The answer quite simply is both. Great organizations start with great people, but they also understand and affect the other aspects of their culture.

The Best Organizations

The best organizations don’t stop with simply creating rules and policies, they do much more to impact the everyday behavior of their employees. If you’ll refer back to our August 2012 Post on the role of contextual factors in industrial safety incident prevention, the very best bosses and organizations understand that human performance is a result of complex systems. Organizational factors such as rules, policies, and reward systems are only a portion of the complex system that drives human performance. The best organizations understand that it is also people, both the individual and intact teams, plus surroundings that drive their overall performance. If the employee base has failed to implement a new directive from leadership, there could be several reasons affecting this. It could be that employees don’t understand the new initiative, operational pressures contradict the initiative, they don’t have the equipment necessary to make it happen, or a myriad of other factors. The very best organizations are those that are able to gather field intelligence detailing actual performance and factors driving the performance, and then institute corrective measures that enable the workforce to align their own performance with the vision of leadership.

So what does that mean for you if you are in an organization with a gap between your formal and informal cultures? We would first encourage you to perform a cultural analysis to get a better understanding of your informal culture. With this knowledge you will be able to understand what contextual factors are driving the performance of your employees. This information will allow you to initiate corrective measures to close the gap between your formal and informal cultures. The best organizations don’t make the mistake of simply focusing on changing people, they focus on the entire context to enable those on board to perform to a higher standard.

Your Culture Gap is Showing

The Gap between your Formal and Informal Cultures is as simple as 'Follow the Leader' Companies often express frustration that their operations fail to live up to the standards set forth for itself.  These companies are essentially describing gaps between their formal (company standard) and informal (what actually happens) cultures.  While many factors contribute to this gap, such as communication, size, number of locations and hiring practices, maybe the single most prevalent force in driving informal culture is the behavior of front line managers and supervisors.

One important characteristics of a “Best Boss” is leading by example.  On the surface, this seems like a straightforward and common characteristic of many bosses, but let’s look deeper.  How does the significance of this characteristic extend beyond just the personal esteem in which we hold the boss to the point that it actually impacts the success of the entire organization?

A workplace is an extremely complex and dynamic organism and the workers themselves will only act in ways that make sense to them in the moment.  If the actions of supervisors suggest that certain behaviors are acceptable, even if they fly in the face of company policy, the employees will be prompted to act in the same manner as their leader.  Even worse, if the boss is allowed to pick and choose which rules to follow, he or she is giving unspoken permission for others to do the same.

Let’s look at a specific example.  There is a manufacturing company that has very high safety standards, including the proper use of PPE (Personal Protective Equipment).  The plant manager is well known to show up on the manufacturing floor wearing his Nike training shoes and a hat of his favorite football team.  While he may try to justify not wearing PPE in his own mind, what he fails to recognize is the precedent he is setting for the workforce.  After all, if the boss can wear his tennis shoes on the plant floor, why can’t the others?  Not only is he not modeling the proper standard, he has now set the precedent that the standards themselves are simply suggestions and not to be taken seriously.

Some of you may be asking yourself, “but what if I make a simple mistake and now I’m leading the entire team down the wrong road?”  There is actually no better time to demonstrate the characteristic of leading by example than when you make a mistake.  Simply stating your mistake and the steps that you are going to take to rectify the situation shows that you do in fact care about the standards of the company, and most importantly, that you are willing to hold yourself accountable to the standards.  The resulting impact on informal culture is that the formal culture will be seen as worthy of being embraced and that everyone is able - especially leaders - and prepared to redirect and be redirected for performance that doesn't match the desired culture.

We won’t go into detail in this post about what leaders do to redirect bad performance, in themselves or others, but you can click here to read an archived newsletter on that topic.