Looks at organizational culture in part 1 of a series on cultural change. Discusses how understanding the importance and dynamics of organisational culture is critical if a TQM initiative is to be successful. Asserts that senior officers who over‐emphasise the application of systems to the detriment of developing “shared values” will fail to maximise the benefit of TQM. Asserts the need not to underestimate the power of the organisational culture in effecting TQ. Concludes that managers have a responsibility to ensure that the culture projects something strong and positive and promotes TQ.