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Is the Bhutanese corporate world missing out the vital element in its effort to

embrace change?

Finally customers are having their say in Bhutanese companies. Some business dinosaurs
are dead. Others are sick. Rest are either evolving or transforming. That has apparently
become the only strategy to survive and succeed. Change and keep changing has become
the mantra which the Bhutanese corporate world is beginning to recite. But is our
Bhutanese corporate world missing out the vital aspect of change?

We see changes in our corporate world in different shapes, sizes, colors and pace. Bank
of Bhutan changes its Logo. RICBL introduces new products and lays off people.
Kuensel will go daily. BNB introduced the ATM. Many tour operators are specializing.
Tashi Cell knocks off call charges. RIM rewrites its vision statement. Bhutan Times
revamps the look of its paper. National Pension and Provident Fund recreates its service
delivery system. NRDCL undertakes organizational development exercise. The BBS has
come live. Even the government is changing its organogram. Changes - all in pursuit of
success.

But where lies the secret to sustainable success? The most worshipped success factors of
the olden days are no more relevant. Great technology, efficient manufacturing processes,
best practices in customer services are no more sources of competitive advantages.
Technology can be shared. Processes can be copied. And best practices are easily
adapted. Advancement in information technology and globalization are real and here to
stay. They have evened out the playing field and will always do. Tangible and easily
discernable sources of competitive advantages do not last long as sources of success.

Increasingly, the most reliable and sustainable success mantra is in the intangible and in
what is not easily discernable. It is in the way organizations treat its people and in the
ways that people behave and interact amongst themselves and with the customers. For
want of better word to describe, it may loosely be termed as corporate culture. And
because corporate culture is elusive and takes a long time to nurture, it establishes itself
as a unique feature of the company. Almost like a DNA of the company. It is therefore
almost impossible to replicate and very difficult to change.

The success of Toyota is not attributed to its engineering marvels. It is the “Toyota way”
of doing things that outperforms all other automobile makers. And surely the Toyota way
is much more complex than the engineering feat that Toyota achieved. It is the corporate
culture at Toyota that helped it excel in technology, sales and marketing.

What then is corporate culture? Simply put, corporate culture is the values that
organizations subscribe to. It is the in the way that organizations treat its employees. It is
in the way decisions are made. It is in the way people in the organizations interact with
each other. It is in the way employees interact with customers. It is in the way employees
see their organizations. It is in these ways that organizations make it or break it. It is so
very powerful that new technology, new systems and structure and new marketing
strategies would crumble without its support.
Most Bhutanese companies are driven by the “hard” talents of the CEOs. Too often, the
CEOs focus on changing the tangible and more visible aspects of their organizations such
as technology, organization structure, products, systems and processes. Creating and
nurturing corporate culture either is absent or stands at the bottom of their agenda. Hence
whether in the corporate sector or the government agencies we find that organizations are
at a lost when the CEOs leave. The organizations have become too dependent on the
CEOs. The new CEO has to start all over again. Bhutanese corporate culture is too weak
to sustain continuity.

Strong corporate culture outlasts the strongest leaders. The best leader is one who creates
an organization that can achieve success even in his absence. Sound corporate culture is
the best substitute for strong leadership. In fact, in today’s environment, the core duty of
a CEO should be creating and nurturing a corporate culture that supports organizational
success.

As with anything worthwhile, culture is an investment. It must be consciously and


deliberately nurtured. Organization’s identity, its values and norms cannot be formed
over a short period of time. Just as a child would need long term supportive environment
and constant positive value reinforcements to inculcate healthy values and principles, so
is with organizations.

Leadership is critical in identifying and maintaining an organizational culture that


supports sustainable success. These values should form an integral part of the decision
making process involving hiring, firing, HR development, dealing with customers and
engaging in the general business promotion. Leaders must set the example by living the
elements of culture such as the values, behaviors, actions and standards of performance.
Other employees will gradually notice and imbibe the culture.

Because competition and globalization are real. Because Bhutanese customers now have
the final say. Because other tangible sources of competitive advantages are easily
duplicated. Because CEOs come and go. Sound corporate culture is the new mantra for
sustainable survival and success. It is the only unique edge that companies can create and
nurture which cannot be copied and transferred from one organization to the other.
Corporate culture therefore is the vital element that must be attended to when
organizations adapt to changes. It must feature as the core duty of the CEO of any
company.

Norbu Wangchuk
Consultant / Trainer
Institute for Management Studies
Olakha : Thimphu
Email: ims@druknet.bt
www.ims.edu.bt

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