Wednesday, November 24, 2010

Culture as a Tool of the General Manager

Strong culture is one of the most powerful tools that a skilled manager can wield. As his or her
organization grows, it soon becomes impossible for the general manager personally to be involved in
every important decision, such as who to hire or promote, when to kill an ageing product line, or
whether to bid or not bid on a particular order. The most the manager can hope for is that all of the
people making decisions in the organization will make them in a way that is consistent with the goals
of the company. The sum of the many autonomous decisions made by various employees must have
the cumulative effect of taking the organization where the manager wants it to go. The only way this
can happen is if the organization has developed clear priorities that employees instinctively employ
as criteria in their dispersed decision-making activities. In other words, strong culture is essential to
consistent decision-making as the organization’s size and scope expand.
Similarly, it becomes impossible for the general manager to participate in or oversee every process
that solves problems and creates value in the organization, such as the new product development
process or the process for following up on new sales leads. Inevitably, as an organization grows,
these things must be done by more and more people, and yet the manager must ensure that the
quality of the output of each of these processes is consistent with the company’s strategic goals.
Again, a strong culture—within which the best ways of getting the job done are instinctively assumed
by all members of the organization—is a powerful tool by which effective managers ensure
consistency.

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