The oak tree

Organisational Culture: A Systemic Approach

Published:
October 3, 2024
Author:
Paula Paterson

Systems thinking is a holistic approach to understanding complex environments by examining the interconnectedness and interdependencies of elements within a system. Rather than analysing components in isolation, it focuses on how elements interact and influence each other, shaping the behaviour and outcomes of the system as a whole. This approach is highly relevant in the study of organisational culture, which is itself a complex system made up of various dynamic and interconnected elements.

Organisational culture refers to the shared values, norms, behaviours, and beliefs that define how people within an organisation interact and work together. When viewed as a system, organisational culture consists of interrelated components that collectively influence employee behaviour, decision-making, and organisational performance. These components do not operate in silos; instead, they form an interconnected web of elements that shape the overall environment and outcomes within the organisation.

Key Elements of Organisational Culture

1. Values and Beliefs: Core principles that guide actions and decisions within the organisation. They represent what the organisation stands for and influence the behaviours of its members.  

2. Norms and Behaviours: Informal rules and shared expectations that govern how individuals behave in the workplace. These norms emerge from the organisation’s values and shape daily interactions.  

3. Leadership: Leadership sets the tone for the organisation’s culture. Leaders influence the reinforcement of values, provide direction, and shape the cultural evolution through their actions and communication.  

4. Communication: The way information is shared across the organisation plays a vital role in building trust, transparency, and collaboration, which are crucial for sustaining a healthy culture.

5. Structure and Processes: The formal and informal processes that define how work is done, how decisions are made, and how individuals are expected to collaborate. This includes everything from hierarchical structures to informal networks.

Interconnections in the System

The strength of systems thinking lies in recognising the interconnections between these elements. In organisational culture, these elements do not function independently but are intricately linked:

Feedback Loops: Organisational culture operates through feedback loops, where outcomes from actions feed back into the system, reinforcing or altering behaviours. For example, when leadership promotes open communication, it reinforces a culture of transparency and trust, which can then increase employee engagement and productivity.

Adaptation: Culture as a system adapts to internal and external changes. For instance, an economic downturn may prompt a shift in values towards cost-efficiency and austerity, influencing decisions at all levels of the organisation.

Emergence: The culture of an organisation is not directly controlled by any one individual; it emerges from the collective interaction of its elements. Small changes in leadership behaviour, policy, or structure can have wide-reaching effects on the culture over time.

Balancing and Reinforcing Dynamics: Organisational culture can have both stabilising (balancing) and amplifying (reinforcing) effects. A strong set of shared values may stabilise the organisation by maintaining consistent behaviour during times of uncertainty, while positive feedback from successful initiatives may reinforce the existing culture, making it more resilient.

Systems Thinking and the FidesOak® 5 Elements of High-Performing Teams

The FidesOak® HPT® framework identifies five key elements of high-performing teams: psychological safety, team cohesion, leadership, information sharing, and vision and goal sharing. These elements align closely with systems thinking and the dynamics of organisational culture.

1. Psychological Safety: Psychological safety is essential for enabling open communication and risk-taking, which are critical for innovation and adaptability in the organisational system. It strengthens the norms and behaviours by encouraging employees to voice their ideas and concerns without fear of retribution, fostering a culture of trust and transparency.

2. Team Cohesion: Team cohesion emerges from shared values and beliefs and is reinforced through mutual support and alignment within the team. Cohesion is a key factor in how well an organisation’s system operates, as it enhances collaboration and collective problem-solving.

3. Leadership: Leadership is a central element in both systems thinking and the FidesOak® framework. Leaders influence the overall culture by setting the vision, reinforcing values, and fostering the conditions for psychological safety, cohesion, and effective information sharing.

4. Information Sharing: In the systems view, communication is a vital feedback mechanism. Open and transparent information sharing allows for the free flow of ideas and feedback, reinforcing trust and adaptability. Effective communication aligns teams around shared goals and enables better decision-making.

5. Vision and Goal Sharing: A shared vision and common goals provide a sense of purpose and direction for the team, aligning individual and collective actions. This ensures that all elements of the cultural system work toward the same strategic objectives, enhancing overall performance and cohesion.

By applying systems thinking to these five elements, organisations can better understand how to create and sustain high-performing teams. The interconnections between leadership, communication, and shared goals help create a self-reinforcing loop, fostering a culture of trust, collaboration, and high performance.

References

• Senge, P.M. (1990). The Fifth Discipline: The Art and Practice of the Learning Organization. Doubleday.

• Schein, E.H. (2010). Organizational Culture and Leadership. Jossey-Bass.

• Edmondson, A.C. (2018). The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. Wiley.

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