Welcome to How to Measure Culture

Transcription

1 Welcome to How to Measure Culture Clarke Debra Levantrosser mmmmmmmmm Nn nn Michigan Lean Consortium November 15, 2017 Mid Atlantic Lean Conference, Baltimore

2 Topics For Today What are Culture and Climate? Why Care About Measuring Them? How Can We Measure Culture? Denison Model CLS 360 The Circumplex Examples

3 The Culture and Climate Link Climate The apparent organization Culture The below-the-surface organization The Circumplex & all models The copyright Circumplex Human copyright Synergistics Human Inc. Synergistics, Dr. Rob Cooke, Inc., Dr. J Rob Clayton Cooke, Lafferty. Dr. J Clayton Human Lafferty. Synergistics Center for Applied Research

4 What Is Organizational Culture? Thinking Perceiving A pattern of basic assumptions, invented, discovered or developed that has worked well enough to be considered valid and, therefore is taught to new members as the correct way to perceive, think, and feel. E.H. Schein Sloan School of Management, MIT Behaving Values It s the personality of an organization!!

5 Organizational Culture The basic assumptions, shared values and beliefs that guide the way organizational members behave toward each other and approach their work. What it takes to fit in around here. How decisions get made when you can t be there. The way we do things around here. How people will act under pressure. The glue that holds the organization together.

6 Is It Important? In fact, there is a possibility - underemphasized in leadership research - that the only thing of real importance leaders do is to create and manage culture and that the unique talent of leaders is their ability to work with cultures. Edgar Schein, PhD, MIT

7 Why Care About Measuring Culture?

8 Is It Important? I came to see, in my time at IBM, that culture isn t just one aspect of the game it is the game. Lou Gerstner, Chairman and CEO of IBM

9 Metrics Measure Everything That Results In Customer Satisfaction

10 Challenger O-Ring

11 Columbia Shuttle report blames NASA Culture -from Yahoo! Photos (AFP/NASA/File)

12 NASA s organizational culture and structure had as much to do with this accident as the External Tank foam. The organizational causes of this accident are rooted in the Space Shuttle Program s history and culture. Cultural traits and organizational practices detrimental to safety and reliability were allowed to develop, including: reliance on past success as a substitute for sound engineering practices (such as testing to understand why systems were not performing in accordance with requirements/specifications); organizational barriers which prevented effective communication of critical safety information and stifled professional differences of opinion ; lack of integrated management across program elements; and the evolution of an informal chain of command and decision-making processes that operated outside the organization s rules.

13 Typical Measures of a Lean Culture # of kaizen events # of employee suggestions $ saved Reduction in lead time # of defects Others? DO THESE REALLY TELL US WHAT WE WANT TO KNOW?? NO! We need to know the HOW, not just the WHAT! The HOW is WAY more important in a lean culture.

14 Other Ways of Measuring Culture

15 Culture can have a significant impact on a firm s long-term economic performance: ADAPTIVE LEAN CULTURE UNADAPTIVE CULTURE Revenue Growth Growth Staff Increase Stock Price Increase Net Profit (Constructive) 682% 282% 901% 756% (Defensive) 166% 36% 74% 1% Source: Kotter J. P. and Heskett J.L. (1992)

16 The Leadership Circle

17 Denison Consulting

18 CLS 360 Dr. Kenneth Locke University of Idaho Quentin Jones Australia

19 Leary Circumplex The circumplex tradition in interpersonal psychology was inspired by the sociological theory of George Herbert Mead (1934) and the interpersonal theory of Harry Stack Sullivan (1953) Dr. Timothy Leary

20 The Circumplex Dr. J. Clayton Lafferty

21 Two General Types of Culture Defensive Cultures - Inactive/Reactive How people see you is more important than what you do Focus on blame Maintain the status quo Value winning above competence

22 Sign on area door of Fortune 50 Manufacturing Company Jigs, Fixtures and all other items in this area are the property of the Engineering Department. Manufacturing people are not welcome here!

23 Two General Types of Culture Defensive Cultures - Inactive/Reactive How people see you more important than what you do Focus on blame Maintain the status quo Value winning above competence Constructive Cultures - Proactive Foster innovation Reinforce personal responsibility and accountability Value performance Value cooperation and teamwork

24 Passive/Defensive 3 Approval 4 Conventional 5 Dependent 6 Avoidance Members interact with people in ways that will not threaten their own security.

25 Aggressive/Defensive 10 Perfectionistic 9 Competitive 8 Power 7 Oppositional Members approach tasks in forceful ways to protect their status and security.

26 Constructive 11 Achievement 12 Self-Actualizing 1 Humanistic-Encouraging 2 Affiliative Members interact with others and approach tasks in ways that will help them to meet their higher-order satisfaction needs.

27 Satisfaction vs. Security Needs Higher Order Needs Satisfaction Lower Order Needs Security

28 Task vs. People Orientation Task Centered People Centered

29 Organizational Effectiveness Model Emphasis on human assets Adaptable Customer service excellence Innovation Loyalty/Satisfaction Inter-unit coordination Cooperation Market shaper Arrogance Bullying Hierarchical Internally Competitive Secretive Punitive Reactive Concerned with Appearance Bureaucratic Conservative Inactive Fearful Unresponsive Driven by market Formal Entitlement

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31 Preferred Culture North America Total Group Ideal N=15,982

32 Preferred Culture - Worldwide North American Cluster USA, Canada N=15,982 Latin American Cluster Chile, Columbia, Venezuela Nordic Cluster Denmark, Finland, Norway Germanic Cluster Germany, Switzerland Near Eastern Cluster Greece, Turkey

33 Preferred Culture - Worldwide Australia Korea

34 US Military Ideal Air Force Base Military Defense Ideal Culture Navy Yard

35 US Government US Government Ideal N=1173

36 US Male / Female Female N=5014 Male N=5325

37 Age Under

38 How Culture Really Works Lean Ideal Culture (Values) Causal Factors (Levers for Change) Operating Culture (OCI Norms) Outcomes (System Effectiveness) Structures Supersystem (Customers) Mission and Philosophy Systems Technology Organizational (Profitability) Skills/ Qualities Subsystem (Members).

39 How Culture Works Antecedents (Levers for Change) Operating Culture (OCI Norms) Outcomes (Effectiveness) Assumptions Espoused Values (Ideal Culture) Structures Systems Individual Philosophy Mission Goals Strategies Technology Technology Job design Complexity Skills/ Interdependence Qualities Group Organizational

40 The Electronic Disintegration of Interpersonal Teams (n=31 virtual teams) *Based on Balthazard, Potter, and Cooke, 2008

41 Individual Effectiveness Model Never wants to make a mistake Sets unrealistic goals Personally takes care of every detail Creates self-induced stress 10 Achieves self-set goals Accepts and shares responsibility Insightful in diagnosing problems Believes that individual effort is important Takes on challenging tasks 11 Shows strong commitment to organization Receptive to change Creative problem solver Non-defensive Self respecting 12 Trustworthy Resolves conflicts constructively Encourages growth and development in others Involves others in decision making Motivates by serving as a role model 1 Cooperative Friendly Genuine concern for others Accepts change 2 Competes rather than cooperates Strong need to win Constantly compares self to others 9 Wants to control everything Believes in force Has little confidence in people Seldom admits mistakes 8 Opposes new ideas Looks for mistakes Resists change Critical of others 7 Avoids conflict Has difficulty making decisions Is non-committal Lays low when things get tough Hopes that problems will take care of themselves Sets goals that please others Supports those with the most authority Agrees with everyone Reluctantly deals with conflict 3 Treats rules as more important than ideas Follows policies and practices Reliable and steady Sets predictable goals and objectives Relies on others for direction A good follower Doesn t challenge others Aims to please everyone 5 4

42 Stylus Level 1 Predominance in 11 O clock Achievement Style Company President/Chief Executive Officer Selected as the Industry s Executive of the Year

43 Stylus Level 1 Predominance in 10 O clock Style of Perfectionism A 54-year-old Male Who Has Had Five Ulcers

44 Stylus Level 1 Vice-President of Non-Routine Operations Banking 58-year-old Male Managed Customer Service Department March The following March

45 Stylus Level 1 & 2 LSI 1 President of Financial Services 57-year-old Male LSI 2 Ineffective in his job President & Chairman had not spoken for 3 years Divorced after 29 years Son drug charges

46 Stylus Level 1 & 2 Corporate Resources of Fortune 50 Company 41-year-old Female Executive Director Self View Others View n=5 Ranked 1 of 189 in internal employee satisfaction survey 3 years running 79.2% favorable rating Department consistently under budget and schedule on managed projects

47 Organizational Culture Actual Large Manufacturing Company Senior Management Management Non Management

48 Organizational Culture Inventory Division of a Large Computer Company Department Managers n=24 Manager LSI Level 1 38-year-old Female 1.3% MCE Rework high, monthly money loss Turnover < 300% Mgr severely disturbed VP ex Marine DI Co RICO violations

49 Large Telecommunications Company Ideal Total Group Ideal Culture N=35 Total Group Current Culture N=313

50 Large Telecommunications Company Manager Level 1 Total Group Current Culture N=313 Manager of a Subsidiary of a Large Telecommunications/Broadcasting Company

51 Large Telecommunications Company Manager Level 2 Total Group Current Culture N=313 Manager of a Subsidiary of a Large Telecommunications/Broadcasting Company

52 Large US Law Firm 700 Attorneys IDEAL Competition/Perfectionism Be a winner Win against others Be seen and noticed Never appear to lose Always try to be right Out-perform their peers Be the center of attention Turn the job into a contest Compete rather than cooperate Maintain an image of superiority

53 State Government Agency All 2000 N=133 All 2005 N=205 All 2009 N=187

54 Navy Culture Initiative

55 Fortune 50 Manufacturer

56 Moving to a Lean Culture

57 These Presenter Units are scanning for your feedback! This session is: 222 Levantrosser-Clarke Are you a future presenter? Contact Jeff Fuchs at jeff@leanmaryland.com about presenting at next year s conference.