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This is about why the organization does what it does. This gives meaning & direction to the enterprise & organization value. This is its spirit. The 3 elements of this are:
Identity & Reputation:This is about having a mission/ purpose that is understood by all in its entirety that instils a sense of pride in the people. When this is strong, it creates a certain personality of the organization/ entity that makes it like a magnet – attracting some & not some others. This enhances the probability of getting the right people on board who find meaning for a long time with the organization/ entity. When this is absent/ weak, the chances of wrong people coming on board or people not feeling a sense of connection could be higher leading to higher attrition.
Values & Behaviours:This is about what the organization values; display of those values by individuals at all levels through their behaviours and decision making in accordance with those values. These again reinforce the “magnet” of the organization/ entity and give clarity about what behaviours will be valued in the organization. When values that enable business are commonly known and practiced, it makes working in the organization/ entity that much easier and is likely to bond those whose personal values resonate with those of the organization/ entity. In the absence of clearly articulated values or a shared understanding of the same, people are likely to behave differently and thus there could be pockets of sub cultures in the organization/ entity. This will reduce the effectiveness of the enterprise & organization value eventually.
Norms & Practices:This is about how mission/ purpose & values are brought alive through rituals, language & images and other innovative methods to create a work culture that reflects the organization identity. All this enables higher ownership amongst people and builds a culture crucial to the organization/ entity. Doing this enables the organization/ entity to live its purpose effectively & strengthens the practice of values. When this is strong, the processes are likely to run smoothly and thus the business delivery will be more effective. In its absence or weak presence, individuals could behave differently that could pull the organization in different directions or at least slow down the organization/ entity.