We begin by assuming that cultures are created or emerge for a reason. Culture is a means to an end, not the end in itself. Great leaders begin by clearly defining and communicating why their organizations exist and create a culture that can achieve this purpose.
We propose that the power of organizational culture lies in its ability to create a collective intelligence that can acquire and apply knowledge and skills at a rate far exceeding that of any individual. This power derives from the organization’s shared tacit knowledge, collective explicit knowledge, acceptable behavior patterns, and the structure of the underlying social network that contains the organization’s social capital. A culture of innovation is the means by which great leaders create a collective intelligence capable of attaining the organization’s higher purpose in any environment.