ORGANIZATIONAL CULTURE
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1 ORGANIZATIONAL CULTURE WHY SHOULD I CARE? TEXAS POLICE CHIEF LEADERSHIP SERIES LARRY BOYD ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? Learning Objectives Understand what we mean by the term organizational culture. Know the components of organizational culture. How organizational culture is formed/shaped/developed. Are there components unique to police organizational culture? Why is organizational culture important? What are the benefits of a positive culture? What are the pitfalls of a negative culture? Why should a police leader care about organizational culture? 2 1
2 ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? Learning Objectives (cont.) How to Create a Culture of Engagement Engagement vs. Motivation What is the difference? Understand the impact and potential of an engaged workforce. How does organizational culture impact/influence engagement? Know the feedback mechanisms that enhance employee engagement. Understand the major factors that influence retention? Know the retention factors most influenced by organizational culture. 3 ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? Learning Objectives (cont.) Understand the leader s role in shaping Culture What Can Leaders Do? Discuss why it always starts with personal accountability Tips for leaders modeling positive culture Discuss some take-away concepts and a personal plan of action for each participant 4 2
3 ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? 5 WHAT IS ORGANIZATIONAL CULTURE? Concept of Organizational Culture not introduced in the field of Management Studies until the late 1970s Prior Management studies focused on individual behavior B.F. Skinner Operant Conditioning Frederick Taylor Scientific Management Hawthorne Studies Hawthorne Effect Abraham Maslow Hierarchy of Needs Etc. 6 3
4 WHAT IS ORGANIZATIONAL CULTURE? Andrew Pettigrew On Studying Organizational Cultures Administrative Science Quarterly 1979 Defines Organizational Culture as an amalgam of: Beliefs Identity Ritual Myth 7 WHAT IS ORGANIZATIONAL CULTURE? Psychology and Society Defines Organizational Culture as: Organizational Values What we feel is important Organizational Beliefs Acceptance of what is true Organizational Norms Typical acceptable behaviors and actions 8 4
5 WHAT IS ORGANIZATIONAL CULTURE? The Power of Habit: Why We Do What We Do in Life and Business Charles Duhigg (2012) Culture grows out of Keystone habits Right habits create positive results Wrong habits create disasters There are no organizations without institutional habits (culture) Just places where they are deliberately managed or places where they are created without forethought 9 WHAT IS ORGANIZATIONAL CULTURE? What is Organizational Culture and Why Should I Care? Harvard Business Review May
6 WHAT IS ORGANIZATIONAL CULTURE? Culture is how we do things. We are what we repeatedly do Aristotle This view elevates repeated behavior or habits as the core of culture HBR May WHAT IS ORGANIZATIONAL CULTURE? Culture is a product of compensation (incentives) The best predictor of what people do is what they are incentivized to do. What are incentives? Monetary Advancement Status Recognition Sanctions HBR May
7 WHAT IS ORGANIZATIONAL CULTURE? Organizational Culture is a jointly-shared description from within Culture is a product of sense-making Jointly-held beliefs and interpretations about what is Process to help orient members to reality HBR May WHAT IS ORGANIZATIONAL CULTURE? The sum of values and rituals which serve to unite Culture is the carrier of meaning Culture is about the story and the value and rituals that reinforce that narrative HBR May
8 WHAT IS ORGANIZATIONAL CULTURE? Organizational Culture is civilization in the workplace Culture is the social control system Reinforces right thinking Sanctions wrong thinking The idea of behavioral norms that must be upheld HBR May WHAT IS ORGANIZATIONAL CULTURE? Culture is the Organizations Immune system Prevents viruses (wrong-thinking) Disposes bacteria (wrong people) Problem Immune systems can attack agents of needed change HBR May
9 WHAT IS ORGANIZATIONAL CULTURE? Organizational Culture is an over-simplification What about sub-cultures Organizational culture is not monolithic Many factors drive internal variations HBR May POLICE CULTURE Is there such thing as Police Culture What might be considered positive aspects of police culture What might be considered negative aspects of police culture 18 9
10 POLICE CULTURE Huffington Post June 2013 Radley Balko What Cop T-Shirts Tell Us About Police Culture 19 POLICE CULTURE Shirt for SRO Association Fundraiser 20 10
11 POLICE CULTURE Shirt sold by Denver Police Union prior to 2008 DNC 21 POLICE CULTURE Sold by a Police Chief 22 11
12 POLICE CULTURE Remember Studies show that the leaders view of the organizational culture and the line employees view of organizational culture are always different. 23 EXERCISE On a 3x5 card write: What you believe describes the current culture in your organization How you believe average employee would describe the culture How you would like them to describe the culture 24 12
13 FOUR CASE STUDIES
14 27 WELLS FARGO Culture Statement excerpts Culture is the most important part of a company s success We define culture as understanding our vision and values so well that you instinctively know what you need to do when you come to work each day. Every time we serve a customer, we should ask ourselves, If I were the customer in this situation, how would this experience feel for me? We never put size ahead of culture. We get bigger by getting better we don t get better by getting bigger
15 WELLS FARGO Facts of Case From approx through 2015 Wells Fargo employees engaged in one of the largest fraud scandals to ever hit the banking industry Bank employees opened as many as two million fraudulent accounts Over 5300 employees fired for illegal behavior Company investigated by SEC, DOJ CEO Jonathan Stumpf testified (grilled) before House and Senate Banking Committees Fined $185M by Consumer Financial Protection Bureau Citing serious flaws with toxic internal culture. 29 WELLS FARGO How Could This Happen? Mid 2000s Senior Management initiated an aggressive cross-selling program with impossible goals As early as 2005 employees complained of unrealistic quotas and a soulcrushing culture of fear Employees who complained were demoted, transferred or terminated One employee sent an directly to Stumpf He was fired To meet goals, some employees opened fraudulent secondary accounts on new customers without their knowledge (about 2 million accounts) During his Senate testimony Stumpf said he doesn t care about process, he cares about outcomes 30 15
16 WELLS FARGO Case Discussion What was the stated culture at Wells Fargo? What was the actual culture? Outcomes/results of the actual culture What are the factors that created the difference? Role of the CEO 31 CASE STUDY #2 16
17 33 UNITED AIRLINES Facts of case: United Airlines flight docked at Chicago bound for Louisville was overbooked Actually they needed to make room for UA employees After attempts to find a volunteer passenger in video was randomly selected For three days CEO Oscar Munoz blamed the passenger and defended the incident saying established protocol was followed United Airlines consistently ranks at the top of customer complaints for passenger bumping 34 17
18 UNITED AIRLINES How Could This Happen? Rules-based culture with little discretion to handle glitches Everything scripted CEO Oscar Munoz new to position and partly brought in to help heal tense relationship between management and employees CEO failed to view incident from customer perspective Reinforced strict adherence to rules regardless of consequences for customer 35 UNITED AIRLINES Case Discussion What are the advantages of a rules-based approach? What kind of organizational culture does this approach facilitate? What is the role of the CEO in this kind of organization? What are the disadvantages of a rules-based approach? What are the implications for the organization s culture? Is there a more effective alternative to a rules-based approach? What are the advantages and disadvantages of this approach? What kind of organizational culture would this approach facilitate? What would the role of the CEO be in this type of organizational culture? 36 18
19 5/23/ CASE STUDY #3 19
20 39 JAMES BLAKE INCIDENT Facts of Case The man standing at the entrance to the hotel is James Blake, retired professional tennis player and current chairman of the United States Tennis Association Foundation He arrived in New York earlier that day on a red-eye flight and is waiting on a limo to take him to a U.S. Open Sponsor event The person who runs into the screen and takes Blake to the ground is NYPD Officer working undercover An informant had given a description of someone resembling Blake who was involved in transporting stolen cell phones 40 20
21 JAMES BLAKE INCIDENT Facts of case (cont.) Blake was taken down, handcuffed and held for 12 minutes At least six officers arrived on-scene to aid in the investigation Ultimately, they discovered they had the wrong person and released Blake without explanation At the U.S. Open event, Blake spoke with reporters and his account spread NYPD released a statement admitting to an encounter, but stated Blake was not mishandled or handcuffed Officers initially had not completed any report about the event Then came the video! 41 JAMES BLAKE INCIDENT Case Discussion If you could interview the officers involved in this incident, do you believe they would tell you their police department promotes a culture of integrity and telling the truth? What do you think happened in this case? How did organizational culture support what happened? What are the lessons? How could this culture change to respond to future cases like this one? 42 21
22 CASE STUDY #
23 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT CREATING A CULTURE OF EMPLOYEE ENGAGEMENT 46 23
24 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT There are three kinds of people: those who make things happen, those who watch things happen, and those who ask, What happened? --Casey Stengel 47 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT Employee Engagement vs Employee Motivation What s the difference? Motivation Strongly influenced by external factors, especially an expectation that certain efforts will yield valued rewards Compensation Status Recognition 48 24
25 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT Engagement An intrinsic deep-rooted sense of commitment, pride and loyalty that is not easily altered A high level of engagement buffers the negative impact of environmental factors on motivation Conversation with Arlington City Manager 49 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT How to Recognize an Engaged Employee Brings new ideas to work Passionate and enthusiastic about work Takes initiative Seeks to improve self, others, and business Consistently exceeds goals and expectations Optimistic and positive; smiles Overcomes obstacles and stays focused Committed to the organization 50 25
26 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT According to research and engaged workforce results in: Increased productivity Higher quality of work Lower turnover Reduced absenteeism Higher rates of customer satisfaction Higher employee satisfaction 51 SHORT DETOUR TO DISCUSS TURNOVER Top Factors that Impact They re motivated by higher pay They are not engaged Lack of opportunity Disrespectful and toxic work environment 52 26
27 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT Factors that disengage Not being respected Unrealistic expectations Never seeking input Lack of coaching and feedback Constantly being underappreciated Supervisors belittling employees Lack of basic pleasantries Seeing managers who aren t engaged Lack of support from manager Criticism that isn t constructive Work that doesn t add value Burdensome process No sharing of vision and direction 53 CREATING A CULTURE OF EMPLOYEE ENGAGEMENT RESPECT Model Recognition Empowerment Supportive Feedback Partnering Expectations Consideration Trust 54 27
28 ORGANIZATIONAL CULTURE BRINGING IT HOME ORGANIZATIONAL CULTURE: BRINGING IT HOME Where should leaders start? Leaders always start with themselves! 56 28
29 ORGANIZATIONAL CULTURE: BRINGING IT HOME Learn to ask the right questions avoid victim thinking How can I do my job better today? What can I do to improve the situation? How can I support others? 57 ORGANIZATIONAL CULTURE: BRINGING IT HOME Parting Wisdom Culture Trumps Everything You are the Chief Culture Officer Every day presents an opportunity to enhance the culture People want to see you and hear from you Make opportunities to communicate both formally and informally People want to know your vision for the organization and how they fit in 58 29
30 ORGANIZATIONAL CULTURE: BRINGING IT HOME Wisdom (Cont) We exist for the community Be the gentle reminder Be connected with the community Be front and center, but don t be the only one out there People watch everything you do Each day is an opportunity to set a positive example 59 ORGANIZATIONAL CULTURE: BRINGING IT HOME Wisdom (Cont.) Don t compromise on the big stuff Loyalty to the community Loyalty to the employees Cultivating an ethical department Responsible use of authority Commitment to diversity 60 30
31 ORGANIZATIONAL CULTURE: BRINGING IT HOME Wisdom (Cont.) Commitment to Organizational Growth There is no growth without change Cultivate collaborative engagement at all levels of the organization It creates ownership-based decisions Look first to your own growth and change The only person you can really change is you everyone else your hoping to influence in a positive way 61 ORGANIZATIONAL CULTURE: BRINGING IT HOME Now its your turn! Take the 3x5 cards and write at least two ideas that you plan to take back with you to implement with your organization 62 31
32 Larry Boyd Strategic Government Resources Ph#
What Is Organizational Culture? And Why Should We Care?
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