| By Harry Hertz "The Baldrige Cheermudgeon" I have long believed that culture, senior leadership, and strategy set the tone for organizational success. But culture is unique because a healthy culture has to be set and demonstrated by senior leadership and is the basis for employee engagement and therefore customer loyalty, satisfaction, or dissatisfaction. Furthermore, strategic success is accelerated by—and maybe even achieved through—a healthy organizational culture. I also believe organizational Destiny can take one of three directions depending on organizational culture. When C – V > 0, that is, when culture builds on and surpasses the basic core values of the organization, the "D" becomes Delight for employees, customers, and other stakeholders. When C – V = 0, that is, culture exactly follows the core values, the "D" becomes Deliver; the organization is poised to deliver on its brand promise. When C – V < 0, that is, the culture does not demonstrate how the organization is living up to stated core values, the "D" becomes either Disappointment or Disaster for employees, customers, and other stakeholders. Given the importance of a healthy organizational culture, I explore core values, culture, and how organizations establish culture (positive and negative) in this Insights column. I have relied on my own observations from years of looking at organizations and, most important, seeing role-model organizations, as exemplified by Baldrige Award recipients. I have also looked at a body of studies and scholarly works on the topic. I will reference some of them as I share my insights with you. I will look at culture and values from nine perspectives: definitions of the concepts; a focus on core values; a focus on culture; establishing and propagating a healthy organizational culture; hiring for cultural fit; when culture and values are misaligned; assessing organizational culture; the Baldrige perspective on culture and values; and role-model performance.
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