Changing Your Culture For Changing Times. Andrea J. Simon, Ph.D. Simon Associates Management Consultants

Transcription

1 Changing Your Culture For Changing Times Andrea J. Simon, Ph.D. Simon Associates Management Consultants

2 Your Culture 2 Why do you have to Think About It? Don t you just Do it? Is your culture your strength? Or is it keeping your from growing your business for the future?

3 In This Workshop 3 Better understand your culture today and why it helps or hinders your company s performance Help you think about how you really would prefer the culture to be in the future Show you how to begin to change your culture

4 Take Away 4 Should I have my organization begin a culture change journey? Could an organization-wide assessment help you better understand what your culture is today and how it is helping or hindering your growth? And, if you think you need to change, where do you begin?

5 Maybe You Need To Change 5 Innovation Accountability Customer- Centered

6 Corporations and Cultures 6 Not sure how to change. Not sure what you want to become more of? Yet, we know that unless we do some things differently we might not be competitive or innovative or a place people want to work.

7 Research On Corporate Cultures 7 Research in over 3000 organizations, 80% have a dominant cultural style and they typically match one of four types. Of the other 20%, working around the middle or they have a problem. Styles and leadership, management and success definitions are very different in each of the four quadrants. Which is right for you? Diagnosing and Changing Organizational Culture by Kim. S. Cameron Simon and Associates Robert Management E. Quinn, 1999 Consultants 2014

8 Research Results Were Compelling 8 The most common organizational change initiatives in last 30 years were TQM, down sizing, reengineering, and lean/six-sigma. But, in a survey of Fortune 500 companies: Only 20% reported having achieved quality objectives Over 40% indicated that they were a complete flop Most successful were those where it was embedded in a culture change process.

9 Why Does It Matter? 9 Highly successful firms have capitalized on the power of strong cultures Strong Unique Corporate Cultures Reduce uncertainties Create a social order so people know what to expect Create continuity and key values and norms Create a collective identity and commitment Express a vision of the future and energizes forward movement

10 Typical Challenges People survive because their cultures let them work together Tend to cluster in one of four major types

11 What Type Is Your Culture? CLAN Collaborative ADHOCRACY Creative Innovators HIERARCHY Controlling MARKET Competitive

12 GM Fremont/Toyota Cultures Let s See What This Really Means 12

13 Power of Culture Change 13 General Motors Assembly plant in Fremont, California s strategy to move auto assembly to the sun belt with no-union work force UAW went after GM and the new GM plants

14 Cultural Disaster 14 Absenteeism averaged 20% per year /- grievances filed by employees annually (100%) 3-4 times a year wildcat strikes people just walked off the job Costs were 30% above their Japanese competitors Sales trending downward Ratings of quality and productivity ranked it as the worst plant in the company

15 How To Fix It? Tried It All! 15 Quality circles Employee relations initiatives Statistical process controls New incentive systems Tighter controls Downsizing, right sizing Nothing worked Decided to close the plant at the end of 1982

16 Instead Partnered With Toyota 16 Approached Toyota deemed to have the best production system in the world at the time Toyota jumped GM was the worlds largest company with the worlds largest supplier and dealer network Rules: Old equipment had to be used UAW workers had to be hired first Oldest and most recalcitrant workers would have first crack at these jobs

17 Only Toyota Must Toyota Managers 17 They were going to change the culture 1985 they reopened the plant NUMMI New United Motors Manufacturing Incorporated Built first Chevy Nova, then Geo Prism and Toyota Corolla What happened Same people Same place Cars basically same

18 Performance Told It All 18 COMPARISON GM'S FREMONT AND NUMMI PLANTS GM Fremont Plant NUMMI Plant EMPLOYEES 5, ABSENTEEISM 20% 2% UNRESOLVED GRIEVANCES TOTAL ANNUAL GRIEVANCES WILDCAT STRIKES PRODUCT Chevrolet Nova Chevrolet Nova 1988 Geo Prism Toyota Corolla ASSEMBLY COSTS PER CAR 30% higher Japanese Same as Japanese PRODUCTIVITY Worst in GM DOUBLE GM AVERAGE QUALITY Worst in GM BEST IN GM

19 What Happened? 19 GM pre-1982 Use to go home chuckling to himself about the things he had thought up during the day to mess up the system People would never forget us! v=ng_sa0t04ts&feature=related

20 Nummi Post-1982 Everything is different. I have a title, fewer job classifications. Business cards with director of welding improvement and I make it up myself Empowered Totally Engaged

21 Why Is This So Hard? The Brain Hates To Change

22 Why Is Change Such Pain? 22 Brain hates change literally!

23 Power Of Habits 23 While we love to think that we are full of free will We are product of wellhoned habits.

24 Habits Are Hard To Kick 24 Institutions respond to threats, uncertainties and ambiguity tend to reassert their core cultural values with often added zeal. Change, new, different are all stress inducers.

25 Comfort Of The Herd--Culture 25

26 Herd Animals 26 People in Organizations develop a dominant organizational culture over time as they adapt and respond to challenges and changes in the environment. Less about what we do than how we do it.

27 Perception Is Reality 27 By the time you are 30 you have a well structured perceptual mind map. Rest of your life we are sorting what we experience to affirm what your mind map sees. There really is no reality.

28 Brains And Culture Can Change 28 Our brains have plasticity and you can learn new behaviors and adapt to changing times. Can adapt culture--values, beliefs and behaviors. But it takes a rigorous process. Brain needs a hand.

29 Your Role As Leaders 29 Create value for your organizations, communities and yourself. Changes to your leadership style comes from inside you. Not just you alone. This requires real teamwork.

30 30 What Is An Organizational Culture? And Why Should You Pay Attention to Yours?

31 Organizational Culture 31 Values, beliefs and behaviors we recognize as the way we do things here. Intangibles and the tangibles. Creates stability by being the glue that holds the organization together. Reinforces continuity and consistency in the organization through adherence to a clear set of consensual values.

32 Today s Business Environment 32 No longer possible to be proud of how stable, constant, same, status quo you are. Frightening uncertainties. People not sure how to adapt.

33 Change Responses Often Fail 33 As many as ¾ of the company efforts to change failed entirely or created negative results-- regardless of what they were doing. n Re-engineering n Total Quality Management (TQM) n Strategic Planning n Downsizing

34 Lack of Success 34 Lack of attention to the organization s Culture.

35 Culture And Change 35 Cultures fosters adaptability by providing a clear set of principles to follow when designing strategies to deal with new situations.

36 Organizational Culture 36 Is: Enduring set of values, beliefs and assumptions. Collective Behavior Attribute of an organization. Implicit aspects of an organization. How things are. Is Not: A metaphor, such as bureaucracy or network, for labeling what an organization is. The climate which refers to attitudes that are modified frequently as situations change. How people feel about things.

37 What About Sub-Cultures 37 Within organizations we might find: Marketing department having a culture that differs from production, human resources or from engineering. But that is ok if

38 Shared Culture Across Organization 38 There is a shared culture. Overall, most organizations can be comprised of unique subcultures but each contain common attributes that make up an overarching culture typical of the entire organization. These overarching elements are the focus of the OCAI measurement.

39 Successful Firms And Their Cultures 39 Highly successful firms have congruent cultures that: Reduce uncertainties Create a social order so people know what to expect Create continuity and key values and norms Create a collective identity and commitment Express a vision of the future and energizes forward movement But the wrong culture can take you down the wrong road.

40 40 Your Culture In Changing Times How To Match Your Culture With What You Have To Achieve.

41 No Quick Fixes 41 We have to see, feel and think in new ways and then practice, practice, practice to then do them-- make it happen.

42 Four Dominant Types of Cultures Collaborate Create Control Compete Simon Associates Management Consultants Consultants

43 43 Types of Corporate Cultures Let s go a bit deeper into these different Cultures.

44 Corporate Cultures: Overview 44 Six dimensions are basis of the 4 Types of Culture in OCAI: Dominant characteristics of the organization (what is it really like) Leadership Style and Approach Management of Employees: How are employees treated and what the work environment is like Organizational Glue: What holds it together Strategic Emphases: What areas drive the organization s strategy Criteria of Success: How is victory defined and what gets rewarded and celebrated

45 Four Types 45 Adaptability CLAN ADHOCRACY Internal Capability Orientation: Collaborative HIERARCHY Orientation: Creative MARKET External Opportunities Orientation: Controlling Orientation: Competing Stability

46 Let s Look At Each 46 Each plays a role in an organization. Relative importance is what matters. How you shift during changing times with new challenges is critically important.

47 Hierarchical: Controlling CLAN HIERARCHY ADHOCRACY MARKET 47 Dominant Characteristics: Internal maintenance with a need for stability and control Leader Type: Good Coordinators, Organizers, and Efficiency Minded Management of Employees: Secure employment and predictability Glue: A very formalized and structured place to work Emphasis: Rules rule Success: Dependable delivery, smooth scheduling, and low cost Inwardly focused and disciplined, concerned with improving quality and cutting costs out of production.

48 CLAN ADHOCRACY Clan: Collaborative HIERARCHY MARKET 48 q Dominant Characteristics: Internal Focus and Flexibility q Leader type: Father, Mentor q Management of Employees: Involved & Engaged q Glue: Teamwork q Emphasis: High Commitment and Solidarity q Success: Sensitivity to customers and concern for people. q The organization places a premium on teamwork, participation, and consensus.

49 Adhocracy: Creative CLAN HIERARCHY ADHOCRACY MARKET 49 Dominant Characteristics: External Focus and Flexibility Leader type: Innovator, Entrepreneur Management of Employees: Encourages individual initiative and freedom, empowerment, creative problem solving. The Glue: Commitment to experimentation and innovation. Emphasis: Being on the leading edge. Success: Gaining unique and new products, or services. The organization encourages individual initiative and freedom. Dynamic entrepreneurial place to work.

50 Market: Competitive CLAN HIERARCHY ADHOCRACY MARKET 50 Dominant Characteristics: External Focus and Results- Driven Organization Leader Type: Hard Drivers, Producers, and Competitors; tough and demanding Management of Employees: Competitive and goal-oriented Glue: Focus on customer-focus, competition and delivering results Emphasis: Emphasis on winning Success: Defined in terms of market share and penetration. The organizational style is hard-driving competitiveness, results-driven and focused on reputation and success.

51 Summary 51 Flexibility and Discretion CLAN ADHOCRACY Internal Focus and Integration Orientation: Collaborative Leader Type: Facilitator, Mentor, Team Builder Value Drivers: Commitment, Communication, Development Theory of Effectiveness: Human Development and participation produce effectiveness HIERARCHY Orientation: Controlling Leader Type: Coordinator Monitor, Organizer Value Drivers: Efficiency, Timeliness, Consistency and Uniformity Theory of Effectiveness: Control and Efficiency with capable processes produce effectiveness Orientation: Creative Leader type: Innovator, Entrepreneur, Visionary Value Drivers: Innovative outputs, Transformation, Agility Theory of effectiveness: Innovativeness, vision, and new resources produce effectiveness MARKET Orientation: Competing Leader Type: Hard Driver, Competitor, Producer Value Driver: Market Share, Goal Achievement, Profitability Theory of Effectiveness: Aggressively competing and customer focus produce effectiveness External Focus and Differentiation Stability and Control

52 Extremes Don t Work 52 Flexibility and Discretion Irresponsible Country Club Frozen Bureaucracy Internal Focus and Integration CLAN Orientation: Collaborative Leader Type: Facilitator, Mentor, Team Builder Value Drivers: Commitment, Communication, Development Theory of Effectiveness: Human Development and participation produce effectiveness HIERARCHY Orientation: Controlling Leader Type: Coordinator Monitor, Organizer Value Drivers: Efficiency, Timeliness, Consistency and Uniformity Theory of Effectiveness: Control and Efficiency with capable processes produce effectiveness ADHOCRACY Orientation: Creative Leader type: Innovator, Entrepreneur, Visionary Value Drivers: Innovative outputs, Transformation, Agility Theory of effectiveness: Innovativeness, vision, and new resources produce effectiveness MARKET Orientation: Competing Leader Type: Hard Driver, Competitor, Producer Value Driver: Market Share, Goal Achievement, Profitability Theory of Effectiveness: Aggressively competing and customer focus produce effectiveness External Focus and Differentiation Anarchy Oppressive Sweat Shop Stability and Control

53 Most Effective Organizations 53 Have a strong culture that fits the business environment. Have managers/leaders that blend the top and the bottom roles that have to be performed. Focus on internal and the external.

54 One Client: Total Lack of Congruence 54 One Regional Office Central Office Another Regional Office

55 Another Large Client 55 Overall House Staff Board

56 56 Let s Turn To A Client Story What Did Their OCAI Show Us

57 OCAI For The Entire Organization 57 Remarkable Balance Overall Market-driven Significant Hierarchy Good Focus on Clan Less on Adhocracy

58 OCAI Preferred Culture 58 Yet, still balanced around the center. Preferred Shift Reduce Market (-7.43) Reduce Hierarchy (-4.46) Raise Clan by points Raise Adhocracy by +4.65

59 In Each Area: Lots Of Congruence 59

60 Management of Employees 60

61 Organizational Glue 61

62 Strategic Emphases 62 Biggest Area for Change is around Clan 10 point shift

63 Criteria of Success 63 Again, a 10 point shift toward Clan

64 Current Culture 64 Strength of the current culture should not be dismissed. Very strong balance around the center for most of the areas.

65 Preferred 65 However, there is clearly a need to look at how to elevate elements of the Clan and the Adhocracy in terms of: What you value How you encourage interactions How you deal with customers and with each other How you empower people to act and innovate

66 Where Do You Begin? How To Diagnose A Culture Today And Shift It Towards A New One For Tomorrow? 66

67 Need To Take Your Own OCAI 67 The OCAI creates a map of today s culture and what you might prefer

68 The Graph Is A Culture Picture 68 Your OCAI will show you how your employees believe you are culturally organized today. And, how they and you would prefer to be doing things tomorrow. What you value, belief and how you behave are the core of your culture.

69 Journey Is A Process 69 To Change the Story you Must Do More of and Less of Start and Stop Hold secure When do we start Metrics Matter: How will we know if it is working? But the old measures might not be the right measures as you change.

70 On Your Graph You See 70 Where would you prefer to be? More of and less of what? CLAN Collaborative ADHOCRACY Creative HIERARCHY Controlling MARKET Competitive

71 Must Have Patience 71 It is a journey and takes time. But you must start.

72 Where Do You Begin? Your Story Of Your Future Culture 72

73 Start With A Story 73 Elements of a vision of your future culture. A corporate story. Simple story you might tell a new employee about what you do and how you get it done three years from now. What is the focus? What makes it unique?

74 Key Take Away Concepts 74 We live our culture: it is how we get our jobs done and live in our companies Businesses thrive or die on how they do things, not just what they do Is today s culture right for the new environment you are operating in? Should you change it? Exactly what? How do you begin? And keep it going?

75 Thoughts To Leave With 75 Culture does not change because we desire to change it. Culture changes when the organization is transformed the culture reflects the realities of people working together every day Frances Hesselbein

76 Habits are Driving You 76 The greatest danger in times of turbulence is not the turbulence it is to act with yesterday s logic Peter Drucker

77 Brain Hates Change 77 There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things Niccolo Machiavelli

78 Do You Have A Story To Share? 78 This copy of our presentation today was created to help you take these tools and apply them to your own company. We like to help others with case studies. Perhaps you will become a success story we can share as well. Send us your story to: info@simonassociates.net We would love to continue our discussions. Feel free to connect.

79 Need A Hand? Andrea J. Simon, Ph.D. Andrew L. Simon Simon Associates Management Consultants 1905 Hunter Brook Road Yorktown Heights, NY info@simonassociates.net Phone Cell