Corporate Culture
A biker with thirty tattoos+a 60 year-old gardener+a trendy college grad=three very different employees working for the same corporation. How do their differences affect an organization? This question has been the subject of numerous studies in recent years, and is commonly referred to as corporate culture. Corporate culture is the idea that employees like these, “seek out and identify with a shared set of values and beliefs” (Richardson). Organization’s cultures are unique to the organization and affect all aspects of the business. Harley-Davidson and Ridgeview Medical Center are two organizations with corporate cultures that are unique and at different stages in their development, being guided by leadership.
Harley-Davidson has been known for selling motorcycles for almost one hundred years, but they sell much more than just motorcycles. When one buys a Harley-Davidson motorcycle, they are buying an experience, a membership to a club—literally. With the purchase of their first Harley, a customer receives a one-year free membership to the Harley Ownership Group (HOG). Groups of Harley-Davidson riders feel so connected that even unite across the world throughout the year (check out a schedule of rallies here). As a result of incentives like these, there is a high intangible value to a Harley-Davidson product.
This intangible experience is a reason for their external success, but much of Harley’s success is a result of their organizational structure. Harley transformed from “command and control” hierarchical structure to a less formal, circle group structure (Ozley). During the 1980s, Harley was in somewhat of a crisis; their reputation was hurting due to lack of “quality and reliability” and foreign, new, powerful competitors were entering the motorcycle market (Teerlink). Once they recovered, they faced the obstacle of maintaining success, and in order to maximize creativity they developed their work circle structure. The circle groups are three circles that each have their own identity, and then intersect with a small, innovative group called the Leadership and Strategy Council. CEO at the time, Rich Teerlink, says that Harley wanted “teamwork without the teams and the idea of natural work groups emerged” (Ozley).
Ridgeview Medical Center is a small, privately owned medical system located in Waconia, MN. I was born at this hospital, and have had a special relationship with it ever since. Ridgeview employs over 1,500 individuals and have about 30 practice areas, making it the largest employer in the county and a valuable asset to its surrounding communities. The hospital itself has 109 beds, but Ridgeview has numerous other clinics and facilities. Ridgeview has a hierarchical structure (see structure page), though those familiar with the organization know that the potential negative command and control stigmas that go along with this type of structure aren’t relevant at Ridgeview.
Harley-Davidson’s culture at this time has improved, and still has room to grow. During the 1990s and early 2000s, the demand for a Harley bike exceeded the supply and the company’s main focus was output. However, because their focus and priorities revolved around quantitative aspects of production, their qualitative elements, such as culture, were lacking. In fact, in a presentation given to our class by Angie Ziegler, Director of Leadership Development at Harley, she said that when hourly workers in Harley’s plants were asked by leaders of the organization if they felt Harley’s values (telling the truth, keeping our promises, respecting the individual, encouraging intellectual curiosity, be fair) were being upheld, they laughed in response—“the only place expected values were present was in the plaques on the walls” (Ziegler). In fact, an employee that reviewed Harley-Davidson as a company on glassdoor.com said Harley wasn’t a “productive environment,” where people constantly fear they’ll make mistakes, and that executives needed to, “start caring about employees.” However, Harley has recognized this area that they need improvement, and have brought in people like Ziegler and outside consultants to help communicate ethical and behavioral expectations and to make Harley-Davidson a better environment for employees.
Ridgeview’s culture is at a very different point. As known from their reputation and my own personal experience, Ridgeview’s culture is uniquely inviting and an average stranger that walks in the door feels like a part of a new community within minutes. Ridgeview exceeds expectations laid out in the article, “Community-the Structure of Belonging” of being a community that is one of “possibility, generosity, and gifts, rather than one of fear, mistakes and self-interest,” making those within it feel a sense of belonging (Block). In fact, administration at Ridgeview recently brought in a consultant to help them face the difficult task of identifying what makes their culture so indescribable and how to preserve it in the face of obstacles in the future. The consultant put the steps of their culture identity into four categories: capture, document, preserve, and plan (Ridgeview). The things that the consultant identified Ridgeview needs be aware of in order to preserve their unique culture are: new generations of employees and customers, growth in terms of employees and real estate, political and economic pressures, as well as technology changes in the health care system (Hauser). The consultant also conducted focus groups of various employees within Ridgeview, and was shocked at her findings; the top factors employees used to describe the culture at Ridgeview were the most consistent the consultant had ever experienced before in her career (Hauser). These factors included things like, “being treated with respect, environment where you can provide good service to others, quality of leadership in the organization, work/life balance” etc. (Ridgeview).
As previously identified, Harley-Davidson’s culture is progressing to greatness, but the question is why does it need improving and what was the goal? Frankly, Harley-Davidson is standing by its expected values and behaviors it said to have for years, but employees weren’t upholding to them. For example, Ziegler presented specific behaviors Harley explained they uphold each individual to: integrity, accountability, diversity, teamwork, and creativity (Ziegler). These behaviors basically mean that employees perform their job conscious of ethical standards, while working towards a common goal as a respectful team. Additionally, Harley-Davidson leadership is paying closer attention to their values and whether they are being reflected or not. Those internally evaluating Harley’s culture, CEO Rich Teerlink for example, realized that Harley could only continue growing if “every employee rook responsibility for leading the company,” reflecting the expected behavior of accountability (Ozley). An additional element of Harley’s culture that Ziegler discussed in her presentation was the idea of integrity, which in this situation was evaluated by identifying behavior as either constructive or undermining. The idea is that when an employee is faced with an obstacle or tough situation, they act in an ethical manner that reflects Harley’s values (Ziegler).
Another obstacle that Harley-Davidson’s culture faces unique to their organization is their outward brand message and how it is reflected on their inner culture. If you visit the Live By The video on the Harley-Davidson page, you can see how Harley’s image to the public is to “stick it to the man.” Therefore, a company that promotes challenging authority, “bucking the system,” “freedom,” and not “caring what everyone else believes,” can have problems when trying to have everyone find a common set of values and adhere to them. When asked about this, Ziegler said that this is an issue Harley leaders are aware of, and that they have approached it having the term ‘rebel’ have a different meaning internally. According to Ziegler, giving employees rebellion at Harley means giving them the opportunity to “create and be innovative” (Ziegler).
Even though faced with challenges, Harley’s leadership team has done a good job in identifying them and setting goals for what they want Harley-Davidson to be. For example, Harley-Davidson’s culture page on their website describes their culture as “as strong as the iron and steel we put into our bikes, and shines as bright as the chrome.” Additionally, Ziegler discussed how Harley has had external consultants come to evaluate their culture compared to organizations and continue to take their advice and work to improve.
Though they have realized what needs improvement and where they want to be, how can Harley-Davidson reach these goals? Ziegler discussed how the focus is placed on leadership. She talked about how they are, “growing our leaders [to] create culture and make changes” (Ziegler). As a way to improve, Harley decided they needed to make changes to how they evaluate management from the top down in regard to not the work that they accomplish, but how they do it. For example, at this time at Harley, Senior Directors and all positions above are assessed on if their behavior has reflected Harley’s expected behaviors when evaluating their raises, bonuses, etc. (Ziegler). In addition, they have started an Executive Leadership Program (ELP) to help those with leadership positions to understand what is expected of them, and how to communicate those behaviors to those beneath them (Ziegler). For example, one thing that they might discuss at ELP meetings is constructive versus undermining behavior. One way that an employee can be evaluated based on these leadership behaviors is by their employees. According to an interview with CEO Rich Teerlink after the cultural changes necessary in the organization in the 1980s, Harley could “survive and prosper” if each individual employee took accountability for their individual role (Ozley). He discusses how instead of bosses going to their employees with solutions to issues and conflicts, they should be going to their employees to find a solution that works best for all. Therefore, Harley leaders could evaluate performance by discussing a leader’s performance with those beneath them. Not only did Harley make changes to the roles of leaders, they changed their whole organizational structure in order to reach their cultural goals. According to Rich Teerlink,
The structure of an organization has a significant influence on how people behave. In a
strict hierarchy, people generally have very specific limits on their responsibility and
authority. If we wanted to provide people with greater responsibility and authority we
had to reduce the hierarchy.
This is another reason Harley introduced their previously mentioned work circle organization system. This system eliminated executive vice presidents. There are now three circles with less than ten senior managers in each. The circle system emphasizes “participation and collaboration” (Imperato). Teerlink discusses how the idea that resulted in the circles was that they wanted to get “the right people, together at the right time, to do the right work right…teamwork without the teams” (Ozley). Overall, it is apparent that decisions made my leadership greatly contributed to the changes made in the organization resulting in an improved culture.
Though Harley-Davidson’s culture is progressing towards greatness, Ridgeview Medical Center is already there and working on identifying it. This hard to describe culture is internally defined as a Ridgeview Experience. My mom, and many others, say that Ridgeview’s culture is so successful because “we go the extra mile, we care about people” (Hauser). For example, it is policy that when staff see a visitor in the hospital, they stop and make sure they can find their way; they do not point them in direction with instructions, they walk them to the specific location they are looking for. However, Ridgeview’s values run so deep in employees that they go above and beyond for their customers on a regular basis. For example, at the time of her interview, Julie Hauser, Director of Administrative Services at Ridgeview reflected on how just that day she saw a man in the cafeteria balancing his tray while walking with a cane and looking puzzled; Hauser took the time to help him. Situations like these are an everyday occurrence at Ridgeview and contribute greatly to the “Ridgeview Experience” (Hauser). Not only do actions like these this boost internal morale and culture, but they improve Ridgeview’s culture in the community as well when community members are treated this well.
Appropriately, based on the consultant’s experience at Ridgeview, she thought their culture and values reflected the phrase, “you matter here” (Ridgeview). Everything from how staff treat each other at work, customer to customer, employee to family reflects this slogan. Most staff would agree that whether you’re a physician, patient, admitting clerk, or secretary, you matter at Ridgeview. This is a very unique and honorable trait, as I can vouch from working at a law firm that this is not always the case. Harley’s attempt at eliminating their hierarchical structure to make a level playing field is similar to what Ridgeview has achieved. Another personal example adhering to this is the fact that I, as an intern know and felt comfortable talking with the CEO of Ridgeview when our paths crossed.
The question remains: how did Ridgeview achieve this unique corporate culture? Though I’m sure there are numerous reasons contributing throughout their history, one of them is the leadership by current Chief Executive Officer Bob Stevens. Hauser describes Stevens as “empowering and intuitive,” spreading these feelings throughout the organization (Hauser). He encourages all members of staff to act on their instincts; he empowers each and every employee to do what they feel is right without going through the hierarchical structure for approval. In an American culture where healthcare is evolving rapidly, I believe this supportive behavior is a large reason for Ridgeview’s continued success. In addition to intuitive behavior, Stevens is strong in moving forward. “We don’t sit idle, [Stevens] is always looking for opportunities and partnerships,” says Hauser (Hauser). However, Stevens’ leadership has done more than keep Ridgeview cutting edge—he has helped them identify their culture. A few years ago at an all-employee conference, Stevens described Ridgeview’s pillars as compassion, kindness, and intuition and they stuck with the organization. Stevens’ personality also aids to Ridgeview’s corporate culture. He makes sure to make a connection with each and every employee, knowing them by name and strengthening the idea that every role is important. Even greater, he has fun. In my experiences with Ridgeview, I have seen him in numerous costumes serving lunch to staff—I have even seen him dance in front of Ridgeview’s largest donors and the public at the annual golf tournament fundraiser. All of these behaviors contribute to the Ridgeview experience.
Harley-Davidson and Ridgeview Medical Center both describe their corporate culture as something you feel when you walk in the door, but can’t identify. However, their cultures are at very different stages in development—so how does one evaluate an organization’s culture? Technically speaking, a good culture could be one where employees respect and understand one another and work together, among many other things. However, I feel like a great culture is a limitless amount of factors that all contribute to the overall affect. One of these factors I learned from Colleen Barrett, President of Southwest Airlines and like is that your number one customer should be one’s employees. I think it is safe to say that when employees are happy, they will treat one’s customers well and the customers will be more satisfied. See Barrett’s videos below for her explanation of this factor and other good advice:
Corporate culture is key to an organization’s success. In any situation, a common ground of values can be identified and make a profound impact on the experience an employee has at work. Leadership is an important element in the success or failure of a company’s culture, and leaders at Harley-Davidson and Ridgeview both are contributing to their success. I believe Ridgeview has something very special that Harley and any organization could learn a lot from. However, I also believe that Harley is going in the right direction to reach Ridgeview’s level. Even with two organizations with completely different structures and missions, corporate culture is something to be aware of and continuously working on because of its influence throughout every level of an organization.
Harley-Davidson has been known for selling motorcycles for almost one hundred years, but they sell much more than just motorcycles. When one buys a Harley-Davidson motorcycle, they are buying an experience, a membership to a club—literally. With the purchase of their first Harley, a customer receives a one-year free membership to the Harley Ownership Group (HOG). Groups of Harley-Davidson riders feel so connected that even unite across the world throughout the year (check out a schedule of rallies here). As a result of incentives like these, there is a high intangible value to a Harley-Davidson product.
This intangible experience is a reason for their external success, but much of Harley’s success is a result of their organizational structure. Harley transformed from “command and control” hierarchical structure to a less formal, circle group structure (Ozley). During the 1980s, Harley was in somewhat of a crisis; their reputation was hurting due to lack of “quality and reliability” and foreign, new, powerful competitors were entering the motorcycle market (Teerlink). Once they recovered, they faced the obstacle of maintaining success, and in order to maximize creativity they developed their work circle structure. The circle groups are three circles that each have their own identity, and then intersect with a small, innovative group called the Leadership and Strategy Council. CEO at the time, Rich Teerlink, says that Harley wanted “teamwork without the teams and the idea of natural work groups emerged” (Ozley).
Ridgeview Medical Center is a small, privately owned medical system located in Waconia, MN. I was born at this hospital, and have had a special relationship with it ever since. Ridgeview employs over 1,500 individuals and have about 30 practice areas, making it the largest employer in the county and a valuable asset to its surrounding communities. The hospital itself has 109 beds, but Ridgeview has numerous other clinics and facilities. Ridgeview has a hierarchical structure (see structure page), though those familiar with the organization know that the potential negative command and control stigmas that go along with this type of structure aren’t relevant at Ridgeview.
Harley-Davidson’s culture at this time has improved, and still has room to grow. During the 1990s and early 2000s, the demand for a Harley bike exceeded the supply and the company’s main focus was output. However, because their focus and priorities revolved around quantitative aspects of production, their qualitative elements, such as culture, were lacking. In fact, in a presentation given to our class by Angie Ziegler, Director of Leadership Development at Harley, she said that when hourly workers in Harley’s plants were asked by leaders of the organization if they felt Harley’s values (telling the truth, keeping our promises, respecting the individual, encouraging intellectual curiosity, be fair) were being upheld, they laughed in response—“the only place expected values were present was in the plaques on the walls” (Ziegler). In fact, an employee that reviewed Harley-Davidson as a company on glassdoor.com said Harley wasn’t a “productive environment,” where people constantly fear they’ll make mistakes, and that executives needed to, “start caring about employees.” However, Harley has recognized this area that they need improvement, and have brought in people like Ziegler and outside consultants to help communicate ethical and behavioral expectations and to make Harley-Davidson a better environment for employees.
Ridgeview’s culture is at a very different point. As known from their reputation and my own personal experience, Ridgeview’s culture is uniquely inviting and an average stranger that walks in the door feels like a part of a new community within minutes. Ridgeview exceeds expectations laid out in the article, “Community-the Structure of Belonging” of being a community that is one of “possibility, generosity, and gifts, rather than one of fear, mistakes and self-interest,” making those within it feel a sense of belonging (Block). In fact, administration at Ridgeview recently brought in a consultant to help them face the difficult task of identifying what makes their culture so indescribable and how to preserve it in the face of obstacles in the future. The consultant put the steps of their culture identity into four categories: capture, document, preserve, and plan (Ridgeview). The things that the consultant identified Ridgeview needs be aware of in order to preserve their unique culture are: new generations of employees and customers, growth in terms of employees and real estate, political and economic pressures, as well as technology changes in the health care system (Hauser). The consultant also conducted focus groups of various employees within Ridgeview, and was shocked at her findings; the top factors employees used to describe the culture at Ridgeview were the most consistent the consultant had ever experienced before in her career (Hauser). These factors included things like, “being treated with respect, environment where you can provide good service to others, quality of leadership in the organization, work/life balance” etc. (Ridgeview).
As previously identified, Harley-Davidson’s culture is progressing to greatness, but the question is why does it need improving and what was the goal? Frankly, Harley-Davidson is standing by its expected values and behaviors it said to have for years, but employees weren’t upholding to them. For example, Ziegler presented specific behaviors Harley explained they uphold each individual to: integrity, accountability, diversity, teamwork, and creativity (Ziegler). These behaviors basically mean that employees perform their job conscious of ethical standards, while working towards a common goal as a respectful team. Additionally, Harley-Davidson leadership is paying closer attention to their values and whether they are being reflected or not. Those internally evaluating Harley’s culture, CEO Rich Teerlink for example, realized that Harley could only continue growing if “every employee rook responsibility for leading the company,” reflecting the expected behavior of accountability (Ozley). An additional element of Harley’s culture that Ziegler discussed in her presentation was the idea of integrity, which in this situation was evaluated by identifying behavior as either constructive or undermining. The idea is that when an employee is faced with an obstacle or tough situation, they act in an ethical manner that reflects Harley’s values (Ziegler).
Another obstacle that Harley-Davidson’s culture faces unique to their organization is their outward brand message and how it is reflected on their inner culture. If you visit the Live By The video on the Harley-Davidson page, you can see how Harley’s image to the public is to “stick it to the man.” Therefore, a company that promotes challenging authority, “bucking the system,” “freedom,” and not “caring what everyone else believes,” can have problems when trying to have everyone find a common set of values and adhere to them. When asked about this, Ziegler said that this is an issue Harley leaders are aware of, and that they have approached it having the term ‘rebel’ have a different meaning internally. According to Ziegler, giving employees rebellion at Harley means giving them the opportunity to “create and be innovative” (Ziegler).
Even though faced with challenges, Harley’s leadership team has done a good job in identifying them and setting goals for what they want Harley-Davidson to be. For example, Harley-Davidson’s culture page on their website describes their culture as “as strong as the iron and steel we put into our bikes, and shines as bright as the chrome.” Additionally, Ziegler discussed how Harley has had external consultants come to evaluate their culture compared to organizations and continue to take their advice and work to improve.
Though they have realized what needs improvement and where they want to be, how can Harley-Davidson reach these goals? Ziegler discussed how the focus is placed on leadership. She talked about how they are, “growing our leaders [to] create culture and make changes” (Ziegler). As a way to improve, Harley decided they needed to make changes to how they evaluate management from the top down in regard to not the work that they accomplish, but how they do it. For example, at this time at Harley, Senior Directors and all positions above are assessed on if their behavior has reflected Harley’s expected behaviors when evaluating their raises, bonuses, etc. (Ziegler). In addition, they have started an Executive Leadership Program (ELP) to help those with leadership positions to understand what is expected of them, and how to communicate those behaviors to those beneath them (Ziegler). For example, one thing that they might discuss at ELP meetings is constructive versus undermining behavior. One way that an employee can be evaluated based on these leadership behaviors is by their employees. According to an interview with CEO Rich Teerlink after the cultural changes necessary in the organization in the 1980s, Harley could “survive and prosper” if each individual employee took accountability for their individual role (Ozley). He discusses how instead of bosses going to their employees with solutions to issues and conflicts, they should be going to their employees to find a solution that works best for all. Therefore, Harley leaders could evaluate performance by discussing a leader’s performance with those beneath them. Not only did Harley make changes to the roles of leaders, they changed their whole organizational structure in order to reach their cultural goals. According to Rich Teerlink,
The structure of an organization has a significant influence on how people behave. In a
strict hierarchy, people generally have very specific limits on their responsibility and
authority. If we wanted to provide people with greater responsibility and authority we
had to reduce the hierarchy.
This is another reason Harley introduced their previously mentioned work circle organization system. This system eliminated executive vice presidents. There are now three circles with less than ten senior managers in each. The circle system emphasizes “participation and collaboration” (Imperato). Teerlink discusses how the idea that resulted in the circles was that they wanted to get “the right people, together at the right time, to do the right work right…teamwork without the teams” (Ozley). Overall, it is apparent that decisions made my leadership greatly contributed to the changes made in the organization resulting in an improved culture.
Though Harley-Davidson’s culture is progressing towards greatness, Ridgeview Medical Center is already there and working on identifying it. This hard to describe culture is internally defined as a Ridgeview Experience. My mom, and many others, say that Ridgeview’s culture is so successful because “we go the extra mile, we care about people” (Hauser). For example, it is policy that when staff see a visitor in the hospital, they stop and make sure they can find their way; they do not point them in direction with instructions, they walk them to the specific location they are looking for. However, Ridgeview’s values run so deep in employees that they go above and beyond for their customers on a regular basis. For example, at the time of her interview, Julie Hauser, Director of Administrative Services at Ridgeview reflected on how just that day she saw a man in the cafeteria balancing his tray while walking with a cane and looking puzzled; Hauser took the time to help him. Situations like these are an everyday occurrence at Ridgeview and contribute greatly to the “Ridgeview Experience” (Hauser). Not only do actions like these this boost internal morale and culture, but they improve Ridgeview’s culture in the community as well when community members are treated this well.
Appropriately, based on the consultant’s experience at Ridgeview, she thought their culture and values reflected the phrase, “you matter here” (Ridgeview). Everything from how staff treat each other at work, customer to customer, employee to family reflects this slogan. Most staff would agree that whether you’re a physician, patient, admitting clerk, or secretary, you matter at Ridgeview. This is a very unique and honorable trait, as I can vouch from working at a law firm that this is not always the case. Harley’s attempt at eliminating their hierarchical structure to make a level playing field is similar to what Ridgeview has achieved. Another personal example adhering to this is the fact that I, as an intern know and felt comfortable talking with the CEO of Ridgeview when our paths crossed.
The question remains: how did Ridgeview achieve this unique corporate culture? Though I’m sure there are numerous reasons contributing throughout their history, one of them is the leadership by current Chief Executive Officer Bob Stevens. Hauser describes Stevens as “empowering and intuitive,” spreading these feelings throughout the organization (Hauser). He encourages all members of staff to act on their instincts; he empowers each and every employee to do what they feel is right without going through the hierarchical structure for approval. In an American culture where healthcare is evolving rapidly, I believe this supportive behavior is a large reason for Ridgeview’s continued success. In addition to intuitive behavior, Stevens is strong in moving forward. “We don’t sit idle, [Stevens] is always looking for opportunities and partnerships,” says Hauser (Hauser). However, Stevens’ leadership has done more than keep Ridgeview cutting edge—he has helped them identify their culture. A few years ago at an all-employee conference, Stevens described Ridgeview’s pillars as compassion, kindness, and intuition and they stuck with the organization. Stevens’ personality also aids to Ridgeview’s corporate culture. He makes sure to make a connection with each and every employee, knowing them by name and strengthening the idea that every role is important. Even greater, he has fun. In my experiences with Ridgeview, I have seen him in numerous costumes serving lunch to staff—I have even seen him dance in front of Ridgeview’s largest donors and the public at the annual golf tournament fundraiser. All of these behaviors contribute to the Ridgeview experience.
Harley-Davidson and Ridgeview Medical Center both describe their corporate culture as something you feel when you walk in the door, but can’t identify. However, their cultures are at very different stages in development—so how does one evaluate an organization’s culture? Technically speaking, a good culture could be one where employees respect and understand one another and work together, among many other things. However, I feel like a great culture is a limitless amount of factors that all contribute to the overall affect. One of these factors I learned from Colleen Barrett, President of Southwest Airlines and like is that your number one customer should be one’s employees. I think it is safe to say that when employees are happy, they will treat one’s customers well and the customers will be more satisfied. See Barrett’s videos below for her explanation of this factor and other good advice:
Corporate culture is key to an organization’s success. In any situation, a common ground of values can be identified and make a profound impact on the experience an employee has at work. Leadership is an important element in the success or failure of a company’s culture, and leaders at Harley-Davidson and Ridgeview both are contributing to their success. I believe Ridgeview has something very special that Harley and any organization could learn a lot from. However, I also believe that Harley is going in the right direction to reach Ridgeview’s level. Even with two organizations with completely different structures and missions, corporate culture is something to be aware of and continuously working on because of its influence throughout every level of an organization.