FROM THE MOVIE - AMERICAN FACTORY
Lucyya
LDRS420Notes-CameronGreen4thed.Chap.08CulturalChange.pptxMaking sense of change management chapter 8 – cultural change
Trinity Western University
LDRS 420
Instructor: Stephen Liang
Introduction
Corporate culture.
“The way we do things around here.”
How Do We Get A Specific Culture in the First Place?
Six different ways in which culture evolves. (p. 301) A planned and managed culture change through creation of parallel systems of steering committees and project-oriented task forces;
A general evolution in which the organization naturally adapts to its environment.
A specific evolution of teams or sub-groups within the organization to their different environments.
A guided evolution resulting from cultural ‘insights’ on the part of the leader.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 301-308.
How Do We Get A Specific Culture in the First Place?
Six different ways in which culture evolves. (p. 301) (cont.)
A guided evolution through encouraging teams to learn from each other, and empowering selected hybrids from sub-cultures that are better adapted to current realities.
A planned and managed culture change through creation of parallel systems of steering committees and project-oriented task forces;
A partial or total cultural destruction through new leadership that eliminates the carriers of the former culture (turnarounds, bankruptcies, etc.).
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 301-308.
How Do We Get A Specific Culture in the First Place?
Culture and managing change (p. 301-304)
Organizations will not successfully change culture if they begin with a specific idea in mind.
The starting point should always be the business issues that the organization faces.
Do not begin with the idea that the existing culture is somehow totally ‘bad’.
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 301-304.
How Do We Get A Specific Culture in the First Place?
Culture and managing change (cont.)
Always begin on the premise that an organization’s culture is a source of strength.
Some of the cultural habits may seem dysfunctional but it is more viable to build on existing cultural strengths than to focus on changing these elements that may be considered weaknesses.
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 301-304.
How Do We Get A Specific Culture in the First Place?
Cultural frameworks (p. 304-308).
Schein imagined that culture as different levels or layers, going ever deeper into the core of an organization’s identity.
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 304-308
Underlying basic assumptions.
Its strategies and values.
It visible structures.
How Do We Get A Specific Culture in the First Place?
Cultural frameworks (p. 304-308). (cont.)
Deal and Kennedy (1999) also saw organizations in a multi-layered way.
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 304-308
History.
Development of values and beliefs.
Rituals and ceremonies that add to the organization’s infrastructure
Social cohesion
Heroes and stories that reinforce the culture.
Contribute and shape the way people behave, talk and think about the organization
How Do We Get A Specific Culture in the First Place?
Cultural frameworks (p. 304-308). (cont.)
Harrison (1972) and Handy (1993).
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 304-308
Centralized Control
Distributed Authority
Formal
Informal
More detail diagram in p. 305.
Task Culture
Role Culture
Person Culture
Power Culture
How Do We Get A Specific Culture in the First Place?
Cultural frameworks (p. 304-308). (cont.)
Goffee and Jones (1998).
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 304-308. Picture: http://www.slideshare.net/ninanurmayanti9/culture-typology/6
How Do We Get A Specific Culture in the First Place?
Cultural frameworks (p. 304-308). (cont.)
Cameron & Quinn (2011).
Ref: Cameron, E., & Green, M. (2012). Making Sense of Change Management (3rd edition ed.). New Delhi, India: Kogan Page Limited. p. 304-308. Picture: http://galestafford.com/wp-content/uploads/2013/02/CVF2.gif
Values – The Key to Understanding Culture
Organizational values
‘Relative worth, merit or importance.’
~ Dictonary.com ~
‘Value is the evaluative standards relating to work or the work environment.’
~ Deal (1997) ~
An organization cannot simply change its values at will. If they could, there will be no competitive advantage.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
‘Important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable. Values have major influence on a person’s behaviour and attitude and serve as broad guidelines in all situations.’
~ www.businessdictionary.com ~
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
‘A silent power for understanding interpersonal and organizational life. Because they are at the core of people’s personality, values influence the choices they make, people they trust, the appeals they respond to, and the way they invest their time and energy. In turbulent times values give a sense of direction amid conflicting views and demands.’
~ Posner and Schmidt (1994) ~
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
‘Core values for an organization are the ‘timeless guiding principles for behaviour, decisions and actions.’
‘It gives a business a competitive advantage.’
‘There is a good evidence of a relationship between an organization having strong, identifiable values and corporate success.’
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
Bourne and Jenkins (2013) – four useful organizational value types: (p. 310)
Espoused – the values as stated by senior managers and appearing on the organization’s website, posters on the wall and other written documentation.
Attributed – how people might describe the organization’s values, what they see as important to the organization.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
Bourne and Jenkins (2013) – four useful organizational value types: (cont.)
Shared – those values that members, perhaps in smaller units than the whole organization, see as the ones they have in common with each other.
Aspirational – those values, which, in a ideal world, staff and managers would like the organization to be embodying and to which they would like the behaviours to accord.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
Core values for an organization are:
Timeless guiding principles for behaviour, decisions and actions.
Good evidence of a relationship between an organization having strong, identifiable values and corporate success.
The difference between good and visionary or great companies is that the latter have core values that are not compromised by the vagaries of the marketplace, but remain fixed and enduring.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Values – The Key to Understanding Culture
Organizational values (cont.)
Do your values have to match the organization’s?
Values of leaders and senior management have a greater influence on organizational outcomes than those of other groups.
If there is an individual/organizational value fit, there is likely to be greater employee commitment, in both times of stability and of change less staff attrition and greater job satisfaction.
People are attracted to organizations that enable them to achieve particular goals and outcomes.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 308-313.
Facilitating Culture Change
McKinsey’s 7S
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
McKinsey’s 7S (cont.)
Strategy * – organizational goals and plan, use of resources.
Structure * – the organizational chart, and how roles, responsibilities and accountabilities are distributed in furtherance of the strategy.
System* – processes, IT systems, HR systems, knowledge management systems.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
McKinsey’s 7S (cont.)
Shared Values – guiding principles that make the organization what it is.
Skills – distinctive capabilities, knowledge and experience of key people.
Staff – people within the organization – the mix, diversity, retention, development and maximizing of their potential.
Style – management style and culture.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
McKinsey’s 7S (cont.)
"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Hard Elements *
Strategy *
Structure *
Soft Elements
Shared Values
Skills
Systems *
Style
Staff
Facilitating Culture Change
McKinsey’s 7S (cont.)
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Hard Elements
Strategy
Structure
Soft Elements
Shared Values
Skills
Systems
Style
Staff
Facilitating Culture Change
Cultural web
The web is very interconnected; one element will impact on others and be influenced in turn by them.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Cultural web
Control System – monitoring and evaluating its operatinig performance.
Organizational Structure – the hierarchical structure, line of accountability and responsibility and communication and production flows.
Power Structures – where power and authority lie in terms of decision making and mandate holding.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Cultural web (con’t)
Symbols – artefacts or architecture that encapsulate the organization values.
Ritual and Routines – how the organization has come to organize and structure some of the things that it does.
Stories and Myths – what get chosen to be communicated formally and informally around the organization when describing significant event and personalities in its history, in its current situation or as part of its future strategy.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Thornbury’s approach at KPMG
Jan Thornbury utilized a framework which placed the accent on uncovering values as part of her work with KPMG in revitalizing their company culture.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Thornbury’s approach at KPMG
The change agent
Aligns the artifacts with the values of the desired culture by making organizational changes, e.g. to process, systems, rewards and recognition, power structures, communications etc.
Ensures that the behaviours that support the desired values become the norm, by running behaviour change initiatives and personal development activities.
Makes clear that the espoused value represent an aspiration, as core values take time to become embedded.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Thornbury’s approach at KPMG
Tenets that contribute to success
get people involved from across the organization.
use existing ‘delivery mechanisms’ to piggy-back on, rather than create separate work streams, projects or events.
value especially the contributions of people close to the core business and the customers.
capture the imagination of staff and managers with innovative ideas and mechanisms throughout the whole process.
make the process facilitative rather than directive.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Thornbury’s approach at KPMG
Five key elements in the culture change process
Leadership alignment: ensuring a critical mass of the leadership community stepped up, acted as role models and actively and demonstrably sponsored the change.
Personal and team development: focusing on providing individuals, teams and their managers with the necessary training and personal development to understand what behavioural changes were necessary, to undertake self-assessment and equip them with the necessary tools to change.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Thornbury’s approach at KPMG
Five key elements in the culture change process
Communication: ensuring that there was rich, two-way communication throughout the programme to inculcate the new ways of doing things.
Managing the culture change process: ensuring local change agents were able to confidently use the necessary research, design and delivery of events, facilitation and evaluation skills.
Content of the culture change: giving the change agents the knowledge and understanding of the strategy, rationale for the values etc.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
How leaders stimulate and reinforce culture change
Up to 60% of business performance can be attributable to culture, and up to 80% of culture can be attributable to leadership behaviour.
Leadership behaviour is attributable to 80% x 60% = 48% of business performance.
Reinforce the current culture, suggesting to staff that what is now emerging is important in what and how things are done, as well as demonstrate alignment with the preferred culture when implementing change.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
How leaders stimulate and reinforce culture change
Schein’s notes
Primary embedding mechanisms (how leaders teach organization how to perceive, think, feel, and behave based on their conscious and unconscious convictions)
What leaders pay attention to, measure, and control on a regular basis
How leaders react to critical incidents and organizational crises.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
How leaders stimulate and reinforce culture change
Schein’s notes
Primary embedding mechanisms (con’t)
How leaders allocate resources?
Deliberate role-modelling, teaching, and coaching by leaders
How leaders allocate rewards and status
How leaders recruit, select, promote and excommunicate
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
How leaders stimulate and reinforce culture change
Schein’s notes
Secondary articulation and reinforcement mechanisms
Organizational design and structure
Organizational systems and procedures
Rites and rituals of the organization
Design of physical spaces, facades, buildings
Stories about important events and people
Formal statements of organizational philosophy, creeds and charters
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Emerging embedding processes
Gladwell’s three key characteristics of people who can reach the ‘tipping point’
They need to be excellent connectors.
Passion for being ‘mavens’ or information specialists.
‘Salesperson’ – able to influence and impact due to their presence.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
Facilitating Culture Change
Emerging embedding processes
Herrero (2008)’s Viral Change
Uncovering and articulation of a small set of non-negotiable behaviours to sustain the change goals;
The identification of and reaching out to a small number of well-connected and influencing employees;
The ongoing coaching and support to that community of champions; and
The capturing of changes and tracking of progress via stories and other means.
Ref: Cameron, E., & Green, M. (2015). Making Sense of Change Management (4th ed.). Croydon, Great Britain: Kogan Page Limited. p. 313-328. Picture: https://www.mindtools.com/pages/article/newSTR_91.htm.
