MIT Sloan Management Review Article on The Role of Culture in Enabling Change

Culture is often described as “how we do things around here” — a passive reflection of legacy norms and behaviors. It’s more helpful to think of culture as the nervous system of an organization. In biology, the central nervous system is the pathway by which thoughts in our brains are translated into actions by our muscles, and how our experience of acting in the world updates our brain’s understanding of the world. In organizations, this means thinking of culture as the transmission mechanism by which a company both communicates its intended strategy to the front lines and receives feedback and intelligence from the field about whether the strategy is achieving the intended outcomes in the market.

This nervous system metaphor illuminates the factors behind two of the most common reasons given for business failure: “We had a great strategy but failed to execute it” (a failure in the communication from the center to the field) or “Our leaders surrounded themselves with people who were afraid to tell them how the business was really performing” (a failure to relay important feedback and intelligence from the field). Both are examples of the failure to create an effective transmission mechanism from thought to action and back again.

About the Author

Jonathan Knowles is the founder of advisory firm Type 2 Consulting. B. Tom Hunsaker is a clinical professor of strategy and leadership at Arizona State University’s Thunderbird School of Global Management. Melanie Hughes is the former chief HR officer of Moody’s, American Eagle, and Tribune Media.

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