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Culture Is Not the Culprit: When Organizations Are in Crisis, It's Usually Because the Business Is Broken

By: Jay W. Lorsch and Emily McTague
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Abstract

When organizations get into big trouble, fixing the culture is usually the prescription. That's what most everyone said GM needed to do after its recall crisis in 2014—and ever since, CEO Mary Barra has been focusing on creating "the right environment" to promote accountability and head off future disasters. The corporate leaders we have interviewed say that culture isn't something you "fix." Rather cultural change is what you get after you've put new processes or structures in place to tackle tough business challenges like reworking an outdated strategy or business model. The culture evolves as you do that important work.

Keywords

Culture; Cultural Reform; Organizational Culture; Crisis Management; Business Processes

Citation

Lorsch, Jay W., and Emily McTague. "Culture Is Not the Culprit: When Organizations Are in Crisis, It's Usually Because the Business Is Broken." R1604H. Harvard Business Review 94, no. 4 (April 2016): 96–105.
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About The Author

Jay W. Lorsch

→More Publications

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More from the Authors
  • A Nonprofit Board in Transition at Farrington Nature Linc By: Jay Lorsch and Emily Irving
  • Uber in 2017: One Bumpy Ride By: Suraj Srinivasan, Jay W. Lorsch and Quinn Pitcher
  • Understanding Boards of Directors: A Systems Perspective By: Jay W. Lorsch
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