Organizational Philosophy Global
Organizational Philosophy: A Path to Culture Transformation
Any organization, private or public, naturally has a culture, even if it wasn't intentionally created. Every time a group of people gathers for a common purpose, a culture emerges, which Peter Drucker defines as the "implicit rules of engagement" within an organization. He also emphasizes that culture is a defining force in guiding organizational behavior, often more powerful than strategy, shaped by shared beliefs, values, and practices. This implicit culture means that it exists even if it’s not directly expressed, and it stems from the beliefs, values, and practices of the leadership. This explains why leaders who are dissatisfied with their organizational culture may not realize that the culture is, in many ways, their own creation. Why not make it intentional and explicit, so they—and their employees—can be accountable for it?
“Culture is a defining force in guiding organizational behavior, often more powerful than strategy, shaped by shared beliefs, values, and practices.”
Recreating an organizational culture is possible and not as difficult as some leaders may think. However, the challenge lies in the required change in beliefs, values, and practices for both leaders and employees. This can be a challenging process but also a powerful exercise in leadership development as well as cultural transformation. Cultural transformation journeys in organizations can be more rewarding and less costly for leadership development than many courses at top universities, and with a direct impact on their organizations
Organizations are invited to consider articulating their organizational philosophy that underpins their aspirations for cultural transformation. Edgar Schein argues that an organization’s philosophy encompasses its fundamental beliefs about how it should operate, what it values, and the role it seeks to play in society. There are three core elements that make an organizational philosophy a key milestone in transforming culture:
First, a philosophy is foundational and anchored in a set of beliefs rather than transactional values and practices;
Second, it is holistic, as it includes a responsibility to live out these beliefs through organizational practices and systems; and
Third, its implications extend beyond the internal culture to employees, clients, and stakeholders.
It contributes to creating an organizational identity, shaping stakeholder relations, and building a sense of ownership and belonging.
“An organizational philosophy… is the explicit foundation of beliefs that serves as a compass for how people within the organization perceive, think, and act. It fosters trust and cultivates a sense of belonging and shared purpose.”
As consultants, we often witness how culture significantly influences the effectiveness of strategic transformations, capability building, or structural changes. At Beyond Group, we account for these cultural dimensions even in technically focused projects, ensuring that our work aligns with and supports the underlying values and practices of the organizations we serve.
Intentional, Explicit, Adaptive, and Collective Transformation
Narrating an organizational philosophy should be intentional, explicit, collective, and adaptive. Intentional, as it reflects a conscious choice by leadership and all employees; explicit, to serve as a behavioral reference for everyone and as a foundation for practices and systems; collective, so that everyone in the organization can share ownership and actively represent it in interactions with stakeholders; and adaptive, to evolve as beliefs and contexts shift over time.
Many organizations struggle to live out their stated values, which can lead to disappointment and demotivation as expectations fall short. To avoid this, leaders should inspire the philosophy, while employees and stakeholders narrate it, creating a shared journey toward transformation. Cultural transformation transcends traditional processes of setting values, cascading goals, and enforcing compliance through rules and incentives. It becomes a living philosophy that is practiced daily, fostering meaningful change that impacts every level of the organization.
The Process Towards Building a Livable Organizational Philosophy
To transform culture based on the organizational philosophy, leaders can follow the following nine steps that are not linear but systemic:
1. Inspire the Philosophy
The process of defining an organizational philosophy begins with leadership taking the time to distill the organization's core beliefs, values, and purpose into a single, clear page. This one-page document serves as the foundational “north star” for all actions and decisions within the organization. Peter Drucker viewed an organization's philosophy as its guiding compass, one that defines its identity and aligns its direction. This document serves as a reference for the cultural transformation journey that allows alignment across all levels.
2. Engage in Structured and Inclusive Conversations
Once the philosophy is articulated, the next step is to foster structured and inclusive conversations with employees and key stakeholders. Sessions should be thoughtfully designed to address specific elements of the philosophy, inviting genuine contributions from all participants. Structured dialogue sessions can help uncover any potential disconnects between personal values and the organization’s core beliefs, creating space for open, constructive feedback and strengthening collective commitment
3. Narrate Collectively the Philosophy
After gathering insights from conversations with employees and stakeholders, the next step is to collaboratively craft the final organizational philosophy. This involves synthesizing contributions from these discussions to create a comprehensive,
representative document. Leaders and employees can then align on a narrative that resonates with everyone, creating a philosophy that embodies the collective identity and aspirations of the organization. This collaboratively written document serves as a tangible reference, capturing the organization’s core beliefs and values in a way that feels inclusive and authentic to all.
4. Assess Culture-Philosophy Alignment
Once the organizational philosophy has been established, it’s crucial to evaluate how well the current culture aligns with this new or refined philosophy. This assessment involves examining existing behaviors, practices, and policies across the organization to identify areas of alignment as well as gaps where adjustments may be needed. Employee feedback, observations of workplace dynamics, and data from engagement surveys or cultural assessments can offer valuable insights.
5. Define and Align Key Behaviors, Practices, and Systems
To bring the organizational philosophy to life, it’s essential to establish clear behaviors and practices that reflect its philosophy, while aligning all systems and policies with it. This step bridges intention with action by setting expectations for how values translate into daily operations. Embedding the philosophy into systems, from communication protocols to recognition programs, ensures that it becomes a functional part of the organization’s structure.
6. Socialize and Communicate the Philosophy
Effectively socializing and communicating the philosophy, and the resulting behaviors, practices, and systems, requires ongoing engagement through diverse channels like meetings, newsletters, workshops, and team gatherings. This process is especially challenging in remote or hybrid work environments, where physical distance may dilute consistent messaging and connection. Leveraging digital tools and adapting communication ensures all employees feel connected to and invested in the philosophy
7. Offer Support for Cultural Integration
Cultural transformation requires changes in mindsets and behaviors, which can be challenging. Providing support, such as training or coaching, helps employees adapt to and internalize the philosophy. This support eases the integration process and demonstrates the organization’s commitment to a compassionate transformation, benefiting both individual well-being and organizational alignment.
8. Establish Feedback Mechanisms
Feedback mechanisms allow for ongoing refinement of the philosophy, ensuring it remains relevant. By regularly seeking input, leaders can address gaps, celebrate strengths, and make adjustments as needed. Edgar Schein emphasized that culture
is dynamic. By collecting regular feedback, through surveys, workshops, or one-on-one sessions, organizations can keep their philosophy aligned with evolving needs and maintain a responsive, resilient culture.
9. Review Annually
An annual review, ideally through a retreat or workshop, enables leaders and employees to assess the philosophy's alignment and impact. This reflection keeps the philosophy dynamic and responsive, ensuring it evolves with the organization’s goals and external context. This yearly reflection provides an opportunity to reinforce commitment, adapt as needed, and celebrate the organization’s shared purpose.
Living the Philosophy Through Every Interaction
An organizational philosophy is tested daily in the interactions between leadership, employees, and stakeholders. Organizations are complex systems, and as humans, we inevitably face moments when our actions may fall short of the beliefs we strive to uphold. Such moments provide important opportunities to reinforce the philosophy rather than
diminish it. Here are three recommendations for leaders to navigate these challenges and mitigate the impact when a lapse occurs:
Listen to Colleagues
When colleagues courageously point out behaviors or decisions that seem misaligned with the philosophy, listen actively and attentively. This feedback is invaluable, as it brings awareness to discrepancies and allows for early course correction.
Acknowledge and Share Vulnerability
When a behavior or decision contradicts the philosophy, acknowledge it openly and share the vulnerability behind it without resistance. Transparency in leadership demonstrates strength, not weakness, and conveys that everyone, including leaders, is on a continuous journey to align with the philosophy.
Promise Correction and Take Action
After acknowledging a misalignment, it’s essential to commit to a specific corrective action and follow through to maintain trust. This commitment demonstrates integrity and reinforces the philosophy in a tangible way. Leaders who consistently take steps to address misalignments show employees and stakeholders that the philosophy is more than just words.
As Schein reminds us, culture is a powerful force shaped through shared experiences and reinforced in moments of challenge. Leaders who embrace these moments as opportunities for growth set the foundation for a resilient, aligned culture that reflects the organization’s core philosophy, no matter the circumstance.