Historically, organizational cultures tended to evolve organically out of the founders' vision and the early executives' management style. But organizational theory and practice has become increasingly focused on the idea of consciously building a sustainable organizational culture – a "dna" for the company that will sustain the business after its original leaders are long gone.
Failure to do so can have consequences. First, unless an organization's leadership is extraordinarily focused, changing conditions can completely disrupt workplace morale and the company's ability to innovate and compete. Secondly, unless a clear blueprint is in place and deeply embedded in day-to-day operations, the departure of anyone at the top can significantly disrupt the company's course.
Institutional culture is about creating a set of boundaries that will enable your business to reach its goals, stay true to its mission, and continue to attract and retain top talent long after you are gone.