Culturalytik

Culturalytik is a tool that uses data acquisition and data science techniques to measure corporate and national culture - the equivalent of a financial statement for an organisation’s culture.

What is it?

Developed by Michael Muthukrishna, in the LSE Department of Psychological and Behavioural Science, Culturalytik is a tool that uses data acquisition and data science techniques to measure corporate and national culture - the equivalent of a financial statement for an organisation’s culture. It is aimed at organisations interested in quantitatively measuring culture and its unique approach deploys the science of cultural evolution to cultural analysis combined with the power of behavioural science for how to act on revealed insights.

Why is it needed?

The importance of understanding culture or the potential for difference in culture between two entities seeking to work together is widely acknowledged, but so far remains a fuzzy, hard to quantify concept and elusive challenge that many organisations are struggling to address. Many are aware that they have cultural problems that are affecting the efficiency and performance of their enterprise but don’t know where it is or why it exists and therefore are unable to make informed decisions that can address the problem. Culturalytik can bring clarity to this situation for the first time and design a path forward. 

Mergers and acquisitions, for example, have a widely acknowledged high rate of failure: 70% of these failures are attributed to cultural problems.

Background

Over a decade of research has been focused of finding ways to quantify culture and its effects. Several insights have emerged and been applied to different contexts. A large body of work has shown how culture can be tweaked to increase innovation. Other innovative tools have been used to measure mental models using cultural salience and social network analysis. On particularly challenging context, this approach was successfully used to revealed conflicts between indigenous and non-indigenous stakeholders in socioecological management. New research has discovered methods for measuring how much overlap there was between two groups, where they disagree, potential pain points and the reasons for difference, follow up studies mapped priorities and relative importance of different features.

Further research has included: the psychology and behavioural science of cultural transmission, cultural change and cultural evolution; accurately and honestly eliciting beliefs, values, wellbeing, behaviours, and mental representations of culture; and research on statistically analysing datasets to identify the dimensions of cultural differences, size of cultural distances, and sources of potential cultural conflict. This research has generated unprecedented findings and the development of a new technique for measuring the cultural distance between different groups, such as national, corporate, and divisional differences in the context of a merger. This new technique provides clarity to quantifying culture and can be applied equally to national and organisational culture.

Progress so far

Following problem discovery work last summer, the team have built a Minimum Viable Product (MVP) to test the market. They initially focused on corporate mergers and acquisitions and are currently working with a small number of global organisations to test the usability and usefulness of this commercial MVP as well as continuing to scope users' needs for the next level of service, which may include a simplified off the shelf version that could be licenced. 

Culturalytik is now in the Beta phase of its development and provided the engagement with the Mergers and Acquisitions sector continues to generate the anticipated outcomes, the intention is to explore the potential value of the service in additional sectors.

Challenges

Many organisations are aware that they have cultural problems that are affecting the efficiency and performance of their enterprise but don’t know where it is or why it exists and therefore are unable to make informed decisions that can address the problem. They not only require the diagnosis but the tools that they can use to address the problems. This requires organisational management to be willing to map out what success would look like and be willing to allocate the time to see the impact of both the correct diagnosis and identify appropriate and achievable actionable solutions.

What's next and how you can help

Network introductions are probably the most important; the team is keen to make links with people and organisations. 

LSE alumni have a great deal of experience, knowledge and interest in this domain. With that in mind, they would like to discuss how LSE alumni can be part of the next stage of Culturalytik, for example: 

  • LSE alumni who currently work in large organisations to test and validate the value of the approach.
  • Suggest further industries or sectors to explore.
  • Introductions to key individuals in large organisations.

If you are interested in helping with any of the above, please contact Michael Muthukrishna at m.muthukrishna@lse.ac.uk.