[ Organizational culture is] a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and intern… - Edgar Schein

A deeper understanding of cultural issues in organizations is necessary not only to decipher what goes on in them but, even more important, to identify what may be the priority issues for leaders and leadership. Organizational cultures are created by leaders, and one of the most decisive functions of leadership may well be the creation, the management, and--if and when that may become necessary--the destruction of culture. Culture and leadership, when one examines them closely, are two sides of the same coin, and neither can really be understood by itself. In fact, there is a possibility--underemphasized in leadership research--that the only thing of real importance that leaders do is to create and manage culture and that the unique talent of leaders is their ability to work with culture.

A pattern of basic assumptions--invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration--that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.

With the changes in technological complexity, especially in information technology, the leadership task has changed. Leadership in a networked organization is a fundamentally different thing from leadership in a traditional hierarchy.