be responsive to customer needs, and how easily an organi- zation might adapt to and learn from those needs. A highly adaptable organization is able to quickly capitalize upon market changes. The researchers found that both adaptability and involve- ment were positively correlated with return on assets, and that this relationship was strongest in the third year after the culture measures were taken. This indicates that these two cultural elements may have their greatest impact on future performance. Furthermore, all four of these cultural ele- ments were positively correlated with short-term sales growth, suggesting that short-term performance may be predicted by these elements. To augment Denison and Mishra (1989) four compo- nents of culture, it would seem culture impacts employee performance in two primary ways. First, the values and norms that construct a culture assist in shaping employee behavior. In essence, clear values act as important guides to decision-making, and they do so without instituting formal rules or policies, which might constrict the autonomy that is essential for peak performance (Tushman & O'Reilly, 1997). Second, a culture can increase employee commit- ment. When employees associate an organization's values and norms with their own higher ideals, employees essen- tially commit to a set of meaningful goals. This provides meaning to their work, and increases intrinsic motivation and effort (O'Reilly & Chatman, 1996). Despite the wide body of literature examining organiza- tional culture in business, no empirical literature could be identied that examines organizational culture or culture change in professional sport. Literature was identied examining organizational culture in college athletics (Bai- ley, 2007) and the relationship between culture and athlete burnout (Cresswell & Eklund, 2007), although both were determined to be outside the scope of this research. In summary, similar to Kotter and Heskett (1992), Balthazard and colleagues (2006) found that organizations that focus outwardly on customers and stockholders and inter- nally on employee t and communication have stronger Organizational Culture Formation & Culture Change: A leader's impact Schein (1983) states that a culture takes shape from both the assumptions and theories of the founder as well as the orga- nization's collective lessons from its own unique experi- ence. According to Schein (1983), ve principles form the structure of any culture: relationship to the environment; the nature of truth; the qualities of human nature; the nature of human activity; and the nature of human relationships. Leaders typically model these principles, both through their focus and how they react to critical events. Specically, Schein (1983) suggested that culture is created through the observance of the set of behaviors demonstrated by leaders that immediately follow a critical incident and the evalua- tion of whether those behaviors are effective. In addition to driving cultural formation leaders can also foster cultural change. Before understanding the way in which leaders serve as change agents, it is important to rst understand the nature of organizational culture change. Organizations nd numerous reasons to change their cul- ture, from increasing collaboration, initiative, and account- ability (Kanter, 2004), adapting to external change (Singh, 2006), to increasing innovation (J askyte, 2004; Jung, Chow & Wu, 2003). Inherent in each of these culture change ratio- nalizations is the basic desire to improve performance. Schein (1990) asserts that three steps need to occur in order to successfully change culture. First, leaders need to \"unfreeze\" the present system by outlining and discussing impending threats to the organization if no change occurs. Second, a new direction needs to be formalized along with a new set of assumptions; this step is the actual \"change\". Finally, members of the organization need to be positively reinforced when their actions align with the new assump- tions, and punished when they adhere to old assumptions. This third step is \"refreezing\" the new culture. This three-step process is seemingly simple, yet culture is difcult to change. Smith (2003) reported that within a group of North American corporations that had attempted culture change, only 19% of managers rated the culture individual goals, creating the perception that organizational change as 'extremely successful'. Kotter and Haskett members are constantly growing and developing (intellec (1992) claim that culture is difficult to change due to the tual stimulation; Sashkin & Rosenbach, 1993). Transforma- interdependence between and within the levels of culture, ional leaders also have the opportunity to communicate such as values and underlying assumptions. their values through their own behavior, providing follow- In order to successfully alter culture, leaders must ers with a tangible example of how they can take ownership address a situation that has previously been ignored, of their own actions (idealized influence; Bass & Avolio, increase collaboration, and inspire initiative (Kanter, 2004). 1994). To emphasize this point, Kanter provides one of the only Finally, transformational leaders can embed new values examples in the literature of organizational culture change into the culture of an organization. For example, if a leader pertaining to professional sport: the turnaround of the Phil- desires a more innovative organization, then s/he would adelphia Eagles. Since Jeffrey Lurie purchased the organi- eliminate policies that discourage innovation (e.g., punish- zation in 1994, the Eagles have embarked on a remarkable ing mistakes) and implement those that encourage the value turnaround. Although they have yet to win a championship, (e.g., reward risk-taking; Jung, Chow & Wu, 2003). In the Eagles have been one of the most successful organiza- some cases, leaders may inadvertently foster consensus tions in the NFL in the past twelve years. around values that may impede the new value or values Along with the process of culture change, an additional they are trying to usher into the organization. Therefore, factor that contributes to successful cultural change efforts even for transformational leaders, it is critical for leaders to may be the type of leader that is in place. Trice and Beyer first gain a clear understanding of the norms of the culture (1991) argue that cultural maintenance and cultural innova- before trying to implement change (Jaskyte, 2004). tion require different types of leadership. Cultural mainte- Conversely, some have argued that it is difficult for lead- nance requires a leader to sustain the current culture, while ers to have any impact on culture, as culture has a larger both recognizing internal conflicts exist and facilitating dis- influence on leaders (Hatch, 1993). In an attempt to address cussions between subcultures with diverse interests. this theoretical disagreement, Sarros, Gray and Densten Because cultural innovation requires a leader to unite fol- (2002) surveyed over 1,900 managers in Australia and lowers and replace old cultural elements in response to a found "that leadership was a far more prominent predictor perceived crisis, the authors assert that innovation requires of culture than culture was of leadership" (p. 15), and that more dramatic personal qualities, as the leader needs to sell both transactional and transformational elements of leader- organizational members on his/her ideas. Essentially, Trice ship impacted culture. Similarly, the path model created by and Beyer (1991) argue that cultural formation and innova- Sarros, Cooper and Santora (2008) indicates that transfor- tion requires a transformational leader, while cultural main- mational leadership accounts for 24% of the variance of tenance requires a "consensus leader" (p. 163) organizational culture. Collectively, the literature suggests Most leaders have the capability to influence an organi- that there is a strong link between leadership and culture, zation's values through the recruitment process, socializa- and that transformational or charismatic leadership plays a tion (norms), and specific reward systems (Chatman & critical role in successful culture change. Cha, 2003). The extant literature suggests that transforma- Although there has been significant research into the tional leaders can go beyond these process changes and construct of organizational culture and change within busi- influence culture in other ways. Bass and Avolio (1994) ness, this phenomenon has not been examined within pro- state that transformational leaders exhibit four qualities: fessional sport other than the above reference by Kanter inspirational motivation, intellectual stimulation, idealized (2004). Professional sport is simply a business with a influence (charismatic), and individual stimulation. With unique product-a team. Due to the compelling relation- these, transformational leaders are able to tap into the per- ship between a healthy organizational culture and strong sonal value systems of employees, while making the con- performance, it is arguable that the lack of success of a pro- nection between organizational values and desired outcomes fessional sport team can be symptomatic of a larger prob- explicit (Gardner & Avolio, 1998). For example, Wieseke, lem within that organization's culture. Furthermore, new Ahearne, Lam and Dick (2009) found that charismatic lead- leadership is often required to make changes to an organiza