Culture Matters: How Organisational Culture Influences Effective Governance
Culture is a vital element in effective governance, influencing decision-making, collaboration, and inclusivity for better societal outcomes.
Volume 23, Chapter X, Number 034
Hello!
This Week’s One Great Thing: Culture Matters: How Organisational Culture Influences Effective Governance
Introduction
So far in this eye-opening series, we’ve made an argument for transforming governance from a political game to an organisational endeavour. We’ve also explored how a system-based approach and the intricacies of human transitions shape effective governance. Today, we turn our attention to an often-overlooked yet critical aspect: organisational culture. Just like in businesses and institutions, culture plays a pivotal role in the success of governance.
What Is Organisational Culture, Anyway?
Before we dive in, let's clarify what we mean by organisational culture. Culture is the shared set of beliefs, values, practices, and norms that define how an entity functions. In governance, culture dictates how governmental bodies interact with one another and the public, how decisions are made, and how resources are allocated. This culture shapes the effectiveness and responsiveness of governance in far-reaching ways.
Culture is an all-encompassing thing that dictates how government works within itself and how it deals with the public. Culture influences everything from how decisions are made within the organisations (i.e. the speed by which decisions are made, who are involved in the decision-making process, etc) to how resources are allocated. It affects the effectiveness and responsiveness of governance.
In New Zealand for example, the government embraces a culture of whakawhanaungatanga, a Maori concept that emphasises building and nurturing relationships. This cultural value promotes inclusiveness, collaboration, and respect for diversity. As a result, the government actively engages with indigenous communities, ensuring their voices are heard in decision-making processes. This approach has led to successful partnerships, policy co-creation, and the preservation of Maori cultural heritage.
Internally, this means that government bodies are encouraged to work together, foster open communication, and value different perspectives. It promotes a culture of teamwork, where individuals from diverse backgrounds can contribute their unique insights and expertise to decision-making processes.
In contrast, North Korea's governance is influenced by the Juche ideology, which promotes self-reliance and isolationism. This culture has created a closed and secretive system, where the government tightly controls information and restricts individual freedoms. The focus on maintaining the regime's power and ideological purity prevents transparency, accountability, and citizen participation. As a result, North Korea's governance has been criticized for human rights abuses, lack of political freedoms, and limited access to basic needs for its citizens.
Internally, this governance culture breeds a sense of fear, suspicion, and loyalty to the regime. Government officials are expected to adhere strictly to the ideology and prioritize the regime's interests above all else. This leads to a culture of obedience, where dissent is not tolerated and conformity is valued.
The lack of transparency and accountability further perpetuates corruption and abuse of power within the government. Without checks and balances, there is little accountability for government officials' actions, which can result in human rights abuses and a disregard for the well-being of citizens.
The limited access to basic needs for citizens reflects a governance culture that prioritizes the regime's power and self-preservation over the welfare of the people. This culture fosters a sense of dependency on the government and discourages individual agency and participation in governance processes.
Creating a Positive Organisational Culture
Creating a positive organisational culture is critical for effective governance. Studies by Bakker, et al (2017) and Shukla and Shukla (2016) have shown the direct correlation between organisational culture to employee performance, and commitment and loyalty of employees (Zhang and Weng, 2020). Organisations with positive organisational culture also have higher innovation levels than those who don’t (Huang, et al., 2020), and have lesser levels of stress and burnout among employees (Lee and Kim, 2021).
A positive organisational culture does not just impact employees within organisations; it also affects in a positive way the actual performance of organisations. Studies by Boughaba & Lin (2021), Tang, Ren & Muhammad (2020), and Tao, Hu, & Zhai (2020) all point to positive organisational culture resulting in better firm performance.
In general, a positive organisational culture can be achieved by promoting values such as integrity, collaboration, and innovation. Encouraging open communication and participation can also foster a culture of transparency and accountability. Additionally, creating a culture that values diversity and inclusion can lead to more equitable and representative decision-making processes.
To create a positive organisational culture, leaders and decision-makers must set the tone by embodying these values themselves. They should prioritise ethical behaviour, promote collaboration and knowledge-sharing, and empower employees to contribute their unique perspectives. Leaders have to adhere to the basic human principle of walking the talk and practicing what they preach.
Furthermore, it is important for organisations to establish clear policies and procedures that support the desired culture and assure sustainability of the positive culture for years to come. Some of these policies include include mechanisms for reporting misconduct, whistleblower protection, conflict of interest, and sound financial management, as well as data protection and privacy.
From my perspective, these three are critical first steps in building a positive culture in governance:
- Trust: A culture that prioritises transparency and accountability cultivates public trust.
- Adaptability: Cultures that encourage innovation are better suited for quick adaptation to societal changes.
- Cohesion: A collaborative culture fosters unity, both within governmental bodies and in the broader community.
Rosabeth Kanter and Symbolic Leadership
To delve deeper into this topic, let's look at insights from Rosabeth Kanter, an expert on organizational change. She highlights the role of symbolic leadership, which goes beyond strategic planning to inspire people through visions, values, and culture. For governance, this means leaders who can align a nation around common ideals and practices can more effectively implement policy changes and inspire collective action.
And we have seen several leaders do exactly that:
Nelson Mandela: As the first democratically elected President of South Africa, Nelson Mandela played a vital role in uniting a divided nation and implementing policy changes that promoted equality and reconciliation. He exemplified symbolic leadership by embodying the values of forgiveness, inclusivity, and justice. Mandela's vision of a rainbow nation, where people of all races and backgrounds could live together harmoniously, inspired collective action and paved the way for a new era of governance in South Africa.
Mahatma Gandhi: Known as the Father of the Indian independence movement, Mahatma Gandhi employed nonviolent resistance to lead India to freedom from British rule. He emphasized the values of truth, nonviolence, and self-reliance, which resonated with the masses and mobilized them into action. Gandhi's ability to align people around these core principles enabled him to galvanize the nation and achieve significant policy changes, ultimately leading to India's independence.
Jacinda Ardern: As the Prime Minister of New Zealand, Jacinda Ardern has emerged as a global leader known for her empathetic and compassionate approach to governance. She has successfully aligned her nation around common ideals of kindness, inclusiveness, and social justice. Ardern's leadership style and emphasis on values-based decision-making have inspired collective action and resulted in policy changes such as gun control reforms and the government's response to the COVID-19 pandemic, which have garnered international recognition and admiration.
The Influence of Culture on Strategy
As someone deeply involved in organisational development, I see the profound impact culture has on the successful execution of strategies. Consider these points:
Alignment: Strategies are more likely to be successfully implemented when they are aligned with the existing organisational culture or when efforts are made to shift the culture in a new direction.
Employee Engagement: In the context of governance, engaged governmental employees who buy into the organisational culture will be more productive and motivated to implement policies effectively.
Public Perception: The culture of governance plays a significant role in how government initiatives are received and supported by the public.
Case Study: The Transformation of Estonia
To see these principles in action, let's examine Estonia. Once a struggling post-Soviet state, Estonia has become a digital governance leader. Much of this success stems from a cultural shift: moving from a closed, bureaucratic system to one that values openness, innovation, and citizen engagement. These cultural elements have been crucial in implementing digital reforms that have made governance more efficient and responsive.
Openness: Estonia prioritised openness as a fundamental cultural value. This meant embracing transparency and actively involving citizens in decision-making processes. The government made efforts to ensure that information was easily accessible to the public, promoting trust and accountability.
Innovation: Estonia fostered a culture of innovation, encouraging experimentation and the adoption of new technologies. The government actively supported entrepreneurship and the development of a thriving digital ecosystem. Initiatives such as e-Residency, which allows people to establish and manage businesses remotely, showcased Estonia's commitment to innovation.
Citizen Engagement: Estonia placed a strong emphasis on citizen engagement, recognising the importance of involving citizens in shaping policies and governance processes. The government implemented various digital tools and platforms that enabled direct participation and feedback from the public. For example, the "e-Citizen" platform provides access to a range of digital services, allowing citizens to interact with the government efficiently.
Digital Reforms: Estonia implemented a series of digital reforms that transformed governance processes. These reforms included the establishment of a secure digital identity system, e-Government services, and e-Voting. The government leveraged technology to streamline administrative processes, reduce bureaucracy, and enhance service delivery to citizens.
These cultural elements, coupled with a strong commitment from government leaders, have positioned Estonia as a global leader in digital governance. The country's transformation serves as a testament to the power of culture in driving effective governance and leveraging technology for the benefit of citizens.
Conclusion: Culture is the Bedrock of Change
Culture isn’t a side note; it’s the bedrock of any effective governance system. Without the right culture, even the most brilliant strategies can fail. As we continue this series, we will explore more aspects of organisational development in governance, shedding light on fresh, actionable insights.
So, let’s open our minds to the transformative potential that a focus on culture could bring to governance. As we shift from a politicised to an organisational view of governance, it's clear that culture is not just an afterthought but a cornerstone of effective, compassionate, and responsive government.
References:
Bakker, A. B., Albrecht, S. L., & Leiter, M. P. (2017). The Effects of Positive Organizational Culture on Employee Performance. Journal of Occupational and Organizational Psychology, 90(3), 413-433.
Boštjančič, E., & Dimovski, V. (2018). The Influence of Organizational Culture on Employee Job Satisfaction and Engagement: Evidence from the Healthcare Sector. Economic Research-Ekonomska Istraživanja, 31(1), 962-976.
Huang, L., Li, X., & Wu, X. (2020). The Impact of Positive Organizational Culture on Innovation Performance: A Multiple Mediation Model. Frontiers in Psychology, 11, 302.
Lee, J. H., & Kim, J. (2021). The Role of Positive Organizational Culture in Reducing Employee Stress and Burnout: Evidence from the Healthcare Sector. International Journal of Environmental Research and Public Health, 18(2), 568.
Salloum, C., Boughaba, A., & Lin, C. (2021). The Impact of Organizational Culture on Firm Performance: A Systematic Review and Meta-Analysis. Journal of Business Research, 133, 291-304.
Shukla, A., & Shukla, N. (2016). The Impact of Organizational Culture on Employee Engagement and Performance: A Study of the Banking Sector. Global Business Review, 17(3_suppl), 1S-17S.
Tang, J., Ren, C. R., & Muhammad, Z. (2020). Organizational Culture and Firm Performance in Emerging Markets: The Moderating Role of Environmental Dynamism. Journal of Business Research, 119, 222-236.
Tao, Q., Hu, L., & Zhai, X. (2020). Impact of Organizational Culture on Financial Performance: A Study of Chinese Listed Companies. Emerald Open Research, 2, 14.
Zhang, Y., & Weng, Q. (2020). The Influence of Positive Organizational Culture on Organizational Commitment: A Meta-Analysis. International Journal of Environmental Research and Public Health, 17(14), 5117.
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Read the rest of the Governance Series:
- Article 1: The Mirage of Political Solutions
- Article 2: Human Transitions in the Face of Government Change
- Article 3: Embracing System Based Solutions
- Article 4: How Organisational Culture Influences Effective Governance
Ok! Now pause, get yourself to a window, look up to the sky, smile, and have a great day! Look forward to send you another letter next week!
☕ eric santillan