What are the standout features of Epic's corporate culture?
ation
Corporate Culture and Strategy Execution
In this exercise you will explore the corporate culture andvalues of Epic and the important role of corporate culture plays instrategy execution.
Just as every human being has a unique personality, everycompany has its own unique corporate culture. These corporatecultures include shared values, ingrained attitudes, and companytraditions that determine norms of behavior, accepted workpractices, and styles of operating. The character of a company’sculture is a product of the core values and beliefs that executivesespouse, the standards of what is ethically acceptable and what isnot, the “chemistry” and the “personality” that permeate the workenvironment, the company’s traditions, and the stories that gettold over and over to illustrate and reinforce the company’s sharedvalues, business practices, and traditions. In a very real sense,the culture is the company’s automatic, self-replicating “operatingsystem” that defines “how we do things around here.” A company’sculture is important because it influences the organization’sactions and approaches to conducting business. As such, it plays animportant role in strategy execution and may have an appreciableeffect on business performance as well. When a company’s presentculture promotes attitudes, behaviors, and ways of doing thingsthat are in sync with the chosen strategy and conducive tofirst-rate strategy execution, the culture functions as a valuableally in the strategy execution process. The foundation of acompany’s corporate culture nearly always resides in its dedicationto certain core values and the bar it sets for ethicalbehavior.
Case:
Epic Systems Corporation creates software to support recordkeeping for mid- to large-sized health care organizations, such ashospitals and managed care organizations. Founded in 1979 by CEOJudith Faulkner, the company claims that its software is “quick toimplement, easy to use and highly interoperable through industrystandards.” Widely recognized for superior products and high levelsof customer satisfaction, Epic won the Best Overall Software Suiteaward for the sixth consecutive year—a ranking determined by healthcare professionals and compiled by KLAS, a provider of companyperformance reviews. Part of this success has been attributed toEpic’s strong corporate culture—one based on the slogan “Do good,have fun, make money.” By remaining true to its 10 commandments andprinciples, its homegrown version of core values, Epic has nurtureda work climate where employees are on the same page and all have anoverarching standard to guide their actions.
Epic’s 10 Commandments:
Do not go public.
Do not be acquired.
Software must work.
Expectations = reality.
Keep commitments.
Focus on competency. Do not tolerate mediocrity.
Have standards. Be fair to all.
Have courage. What you put up with is what you stand for.
Teach philosophy and culture.
Be frugal. Do not take on debt for operations.
Epic’s Principles:
Make our products a joy to use.
Have fun with customers.
Design in collaboration with users.
Make it easy for users to do the right thing.
Improve the patient’s health and healthcare experience.
Generalize to benefit more.
Follow processes. Find root causes. Fix processes.
Dissent when you disagree; once decided, support.
Do what is difficult for us if it makes things easier for ourusers.
Escalate problems at the start, not when all hell breaksloose.
Epic fosters this high-performance culture from the get-go. Ittargets top-tier universities to hire entry-level talent, focusingon skills rather than personality. A rigorous training andorientation program indoctrinates each new employee. In 2002,Faulkner claimed that someone coming straight from college couldbecome an “Epic person” in three years, whereas it takes six yearsfor someone coming from another company. This culture positivelyaffects Epic’s strategy execution because employees are focused onthe most important actions, there is peer pressure to contribute toEpic’s success, and employees are genuinely excited to be involved.Epic’s faith in its ability to acculturate new team members andstick true to its core values has allowed it to sustain its statusas a premier provider of health care IT systems.
Note: Developed with Margo Cox.
Sources: Company website; communications with an Epic insider;“Epic Takes Back ‘Best in KLAS’ title,” Healthcare ITNews, January 29, 2015,www.healthcareitnews.com/news/epic-takes-back-best-klas; “EpicSystems’ Headquarters Reflect Its Creativity, Growth,” BostonGlobe, July 28, 2015,www.bostonglobe.com/business/2015/07/28/epic-systems-success-like-its-headquarters-blend-creativity-and-diligence/LpdQ5m0DDS4UVilCVooRUJ/story.html(accessedDecember 5, 2015).
