Skip to content

ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture

Corvane Bank's board wants to move from a rule-bound, hierarchical culture to a customer-focused one after a merger. Managers have announced the new values in a memo, but frontline staff are still rewarded only on processing volumes and promotions go to those who follow procedure. What is the most significant reason the change is likely to fail, in terms of the cultural web?

The change will probably fail because only the stated values have changed while reward, control and promotion systems still reinforce the old rule-bound paradigm. In the cultural web, elements support one another, so behaviour will not shift unless these surrounding elements are realigned with the new customer focus.

  1. AThe new values have been communicated by memo rather than face-to-face briefing
  2. BThe paradigm has been changed but the surrounding web elements, such as control and reward systems, still reinforce the old cultureCorrect
  3. CThe merger has weakened the symbols used by the bank
  4. DFrontline staff lack the power to veto the new strategy

Explanation

The cultural web shows culture is sustained by mutually reinforcing elements. If reward, control and promotion practices remain unchanged, they continue to signal the old paradigm, so stated values are not believed. The communication channel is a secondary issue and the scenario does not suggest a veto or symbol problem.

Did you get it right without looking?

One question tells you little. A timed set on Leadership and organisational culture shows your real accuracy, how long you take and where you lose marks.

Practise Leadership and organisational cultureFree diagnostic mock

More Leadership and organisational culture questions