Chapter 8

Building for the Future: Trading Old Habits for New

All of the companies that we have studied in this book have viewed their organization's culture as a key part of their ability to compete as a business. Why do they see it that way? We believe they see that the culture reflects the core logic of the organization and the basic mindset of the people and helps define the firm's strategy for organizing. “The way we do things around here” is captured in the traditional habits and bundles of interconnected routines that define an organization's knowledge and capabilities. The culture is hard to understand from the outside and hard to change from the inside.

Many of the most popular definitions of organizational culture have emphasized three ...

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