Memorandum Organizational Culture, Core Values and Strategic Competencies

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1 Government Organization of Sint Maarten Memorandum Organizational Culture, Core Values and BC ,22 This report contains 20 pages Final Version

2 Content 1 Introduction Objectives Scope Approach and procedure 4 2 Findings Desired Organizational Culture Core Values Service/Client-Orientation Quality Reliability Continuous Improvement Strategic competencies Directie Programma s en Projecten: Strategic competencies Directie Ondersteuning Strategic competencies Directie Middelen Strategic competencies Sector Economie en Toerisme Strategic competencies Sector Educatie Strategic competencies Sector Welzijn Strategic competencies Sector Ruimtelijke Ontwikkeling en Beheer (ROB) Strategic competencies Sector Gezondheidszaken Strategic competencies Kabinet van de Gezaghebber Strategic competencies Eilandsecretariaat Link between 17 3 Basic conditions 18 4 Conclusions 20 1

3 1 Introduction The Organizational Culture and Core Values Project is important considering the ambition of St. Maarten to become an autonomous country within the Kingdom of The Netherlands. In April 2005 the Organisatieontwikkeling, beloningsstructuur en functioneringsevaluatie programma has started in order to finalize the reorganization process initiated in This reorganization will enable the government organization to optimize its operations and be of better service to the citizens of St. Maarten. The focus of the above-mentioned program is on the following: Formalize the organizational structure the government organization; Develop and implement a modern and tailor-made compensation policy and structure; Develop and implement a performance management system. With regard to the development and implementation of the performance management system, the Island Government of St. Maarten has initiated an organizational culture project. The activities in the area of organizational culture are aimed at the realization of the desired organizational culture within the government apparatus, in anticipation of the new constitutional status of St. Maarten. In order to realize these changes successfully, the Island Government of St. Maarten has to proactively equip itself properly. This encompasses a different way of operating, a different way of functioning, different skills and lots of creativity, which in general doesn t come naturally. These are characteristics that have to be learned and developed. Due to these developments it is necessary to pursue professionalism and result-orientation within the organization as soon as possible. In other words it is time to implement performance management and accountability! In this regard the Organizational Culture and Core Values Project has been started, consisting of three main activities: Determination of the desired organizational culture; Determination of the required core values; Determination of the required strategic competencies. In order to determine the desired organizational culture, core values and strategic competencies of the Government Organization of St. Maarten, a series of workshops have been held with the responsible Commissioners, the Island Secretary, Sector Directors, Department Heads and some other professionals of the Government Organization of St. Maarten. 1.1 Objectives The objectives of the Organizational Culture and Core Values Project are: To create a common ground (or common understanding) and shared ambitions with respect to the change process within the Government Organization of St. Maarten: where do we stand, where do we want to go (desired organizational culture: values and standards). 2

4 To identify the required core values in order to support the implementation of the desired organizational culture within the Government Organization of St. Maarten. To identify the required strategic competencies per sector/directorate in order to implement the desired organizational culture within the Government Organization of St. Maarten. These objectives enable the realization of the cultural change, which also support the strategy and policy of the Government Organization of St. Maarten: To obtain an efficient and customerorientated organization. 1.2 Scope Considering the before-mentioned objectives of the Organizational Culture and Core Values Project, the Government Organization of St. Maarten has chosen a top-down approach. This implies that in the initial phase of the project only the Commissioners, the Island Secretary, Directors, Department Heads have participated in the discussions regarding the desired organizational culture and core values. Furthermore only the Directors, Department Heads, and other representatives of the respective organizations have participated in the discussions regarding the strategic competencies per respective directorate or sector. Subsequently, as part of the next steps, actions will be taken to inform the rest of the organization of the direction in which the Government Organization of St. Maarten wants to develop itself. The choice in terms of organizational culture, core values, and competencies for a top-down approach is based on the belief and fact that in the initial phase of such a project the management (Sector Directors and Department Heads) plays a crucial role, since the managers are the bearers of the organizational culture and values: the so called initiating sponsors. According to the culture change principles there is a strong relationship between the organizational culture and the sponsors: The management style of the culture bearers has great influence on the culture of an organization; If and when culture bearers recognize blind spots, something can be done in order to improve; Culture bearers should learn to exploit their strong points and improve weak points; Adaptation and improvement of the management style of the managers is crucial for changing the organizational culture. The findings presented in this memorandum are thus based on the vision, perception and experiences of the managers and culture sponsors (participants) of the Government Organization of St. Maarten. 3

5 1.3 Approach and procedure As part of the data collection process a participative approach has been applied. In this regard the Commissioners, Island Secretary, Directors, Department Heads and some other professionals of the Government Organization of St. Maarten have participated in different workshops. During these workshops these participants have firstly completed surveys and questionnaires individually, in order to determine the desired organizational culture, and core values of the Government Organization of St. Maarten. Secondly, they have discussed the individual outcomes in small groups (of more or less 6 persons per group). Thirdly each of the small groups has given feedback about their findings to the whole group. And lastly plenary group discussions and dialogue have taken place. In order to determine the sector/directorate-specific strategic competencies workshops have been held with panels of experts, consisting of the respective Directors, Department Heads, and other representatives of each directorate/sector within the Government Organization of St. Maarten. During these workshops the panels of experts have: Identified and selected the 6 most important strategic competencies associated with vision, mission, strategic goals, core values, roles, tasks and responsibility for their respective directorate/sector. Indicated the priority and proficiency level for each strategic competency within their respective directorate/sector. Given input for the definition of the strategic competencies. Given input for the definition of the observable behaviors pertaining to each strategic competency. This memorandum provides an overview of the main activities the Commissioners, the Island Secretary, Directors, Department Heads and some other professionals of the Government Organization of St. Maarten have undertaken, their outcomes and the next steps to be undertaken. 4

6 2 Findings 2.1 Desired Organizational Culture Organizational culture is the set of shared values, beliefs, and customary ways of thinking which shape and guide the behavior of organizational members. Some measures of culture focus on the rituals, signs, symbols, and customs within an organization. During the before-mentioned workshops, organization members were asked to describe the behavioral styles they are expected to adopt in carrying out their work and when interacting with others in the current culture. These expectations of cultural styles result from and are reinforced by managerial philosophies and methodologies, organizational structure variables, reward systems, and other factors that can be changed at least to some extent by those in leadership positions. Similarly, organization members were asked to describe the behavioral styles they think members should adopt when carrying out their work and when interacting with others in the desired organizational culture. As with the current culture, these opinions about the desired (ideal) culture are often shaped by existing managerial philosophies and practices, as well as by environmental variables (i.e., the market, the industry), and even the organization s specific history. It is notable, therefore, that in almost all organizations, there is great consistency among members about the ideal culture that an organization should exhibit and reinforce. This general consensus about the desired (ideal) culture is what makes it possible to establish relevant, clear, and attainable goals, which are the hallmark of any successful organizational intervention. The results of the organizational culture diagnostic indicate that the culture of the Government Organization St. Maarten should be a more balanced combination of people-orientation and task-orientation. The desired culture is very much satisfaction-oriented and there s much room for change. An organization with such a culture is one that does things well and values members who set and accomplish their own goals. It s an organization that values creativity, quality over quantity, and both task accomplishment and individual growth. Furthermore, it s an organization that is managed in a participative and person-centered way, and members, in turn, report high satisfaction with and commitment to the organization. Also, it s an organization that places a high priority on constructive interpersonal relationships. At last, it s a very proactive organization in which: There is a very clear vision, rather well communicated within the organization. There is total focus on pursuing a standard of excellence and results. There is optimal collaboration within/between departments. People are extremely supportive of each other. There is a very high focus on task accomplishment (plans are made, realistic and much planning and control). 5

7 This results in: high client orientation; high quality consciousness amongst employees; much flexibility; very much attention to development needs of personnel; leading to high motivation. 2.2 Core Values When defining core values one must ask him-/herself the following questions: What do we stand for? What kind of organization are we really? How would we like to be perceived by others? It s about determining the identity and image of the Government Organization of St. Maarten. Core values stand at the center of the Government Organization. They determine the way employees operate within the organization, which is being expressed in rituals and symbols within the organization. Core values are the deepest believes of the employees (managerial and non-managerial) of an organization. They reflect what the employees stand for and give meaning to the organization. On one hand core values support the realization of the vision, mission and strategic goals of the Government Organization of St. Maarten. On the other hand the direction in which the organization wants to develop itself determines which core values are important and should be focused on. These two aspects what does the organization stand for and where is it heading to exert influence on one another. Defining the selected organizational core values of the Government Organization of St. Maarten and identifying the corresponding most important and required observable behaviors was essentially a four-step procedure: 1 Individual brainstorming with regard to the required organizational core values. 2 Small group discussion with regard to the required organizational core values. The groups consisted of more or less 4 to 6 persons, who discussed and completed the questionnaires. 3 Selection of organizational core values per group. 4 Feedback to the overall group and plenary group discussions about the small groups results. 6

8 For each value, based on the organizational vision, mission statement, strategic goals and desired culture of the Government Organization of St. Maarten, key elements, do s and don ts have been identified from the perspective of the participants to the workshops. These key elements, do s and don ts have served as input for the defining the 4 core values and the corresponding observable behaviors for each of these core values. Here follows the 4 identified organizational core values, fully defined and provided with a list of the corresponding observable behaviors for each. The four selected core values at the Government Organization of St. Maarten are: 1. Service/Client-orientation 2. Quality 3. Reliability 4. Continuous improvement Service/Client-Orientation Service/Client-Orientation is defined as: The ongoing concern to help or serve others and customize products and service offerings to individual needs of clientele as opposed to a focus on standardized product or service attributes. This comprises the continuous effort to discover and accurately interpret the internal and/or external clients needs and market developments, and to meet or exceed those needs while reacting swiftly to market developments. The initiative and tenacity of the Government Organization of St. Maarten to develop strong client relationships and develop and implement innovative ways to be able to actively monitor, timely notice, and to quickly satisfy customers needs with the best value proposition Observable behaviors of Service/Client-Orientation A Service/Client-Orientated employee at the Government Organization of St. Maarten: Identifies clients and their specific needs. Considers the client to be the main priority, and always addresses and approaches the clients of the Government Organization of St. Maarten in a polite and respectful manner. Seeks innovative approaches for improvement based on client feedback. 7

9 Provides clients with opportunities for active participation and consultation on decisions that are relevant to their needs and concerns, while balancing competing interests. Mutual adjustment and coordination for benefit of client. Accepts personal responsibility for quality service delivery Quality Quality is defined as: The degree to which a set of inherent characteristics fulfill requirements as a process in which value is consistently realized for both the customer and the provider, in every aspect of the relationship. This is done by the Government Organization of St. Maarten through its ability to accomplish tasks, set targets and achieve results and outputs at the lowest possible expense through optimal use of resources, working continuously and cost-consciously according to bestpractices, and making effective decisions quickly in order to fully satisfy customers. This continuous process aims to attain an unprecedented level of performance excellence throughout the entire organization Observable behaviors of Quality An employee delivering Quality service and products at the Government Organization of St. Maarten: Has a comprehensive focus 1 on performance improvement that applies to all areas of product and service, to all areas of the organization and to all people within the organization. Continuously strives to provide value 2 to the internal and external stakeholders. Strives for perfectionism and excellence and is intrinsically motivated to strive for continuous improvement. Is given ownership for quality and is encouraged to provide a continuous flow of incremental improvements. Manages expectations of the customers accurately in proportion to organizational competencies. 1 This focus is not just a program, but a way of life, a strategy requiring improvement by everybody in everything all the time and pursuing a vision of everyone doing the right things. 2 Value represents economic worth, practical utility, and availability, for both the customer and the organization, relative to the resources needed to achieve this. 8

10 Works in a well-organized manner and completes his/her tasks properly and in a timely manner in order to meet clients expectations, and portrays SMART-behavior. Delivers products and services in a consistent manner to the internal and external stakeholders in line with their expectations, needs, and requirements Reliability Reliability is defined as: Consistency in actions and duties and coming through on agreements and expectations while complying with taking personal responsibility for own actions, giving timely and high quality results, and accepting positive as well as negative consequences. The ability of the employees of the Government Organization of St. Maarten to work effectively with each other and to effectively support fellow team members in reaching common goals and to consistently enforce rules and procedures. They are willing and genuinely intend to work together and with respect for each other by practicing what they preach and basing all their decisions objectively on what is best for the Government Organization of St. Maarten Observable behaviors of Reliability A reliable employee of the Government Organization of St. Maarten: Honors agreements. Walks the talk. Is consistent in the delivery of products and services. Is dependable and consistent in decision-making. Shows consistent support for team members and knows what to expect from colleagues and portrays what others should expect. Is sincere and strongly complies with what he/she said and the agreements made. Has a strong sense of responsibility for the organization s fate. Fosters trust. Is integer and objective. 9

11 2.2.4 Continuous Improvement Continuous Improvement is defined as: The ongoing improvement of products, services and processes through incremental and breakthrough improvements as knowledge about and experience with them accumulates over time. This is done through commitment of the employees of the Government Organization St. Maarten to plan work-activities, do these activities, act, check, give follow-up on agreements made (plan-do-act-check cycle) and consistently build-up on the learning points derived from these. The Government Organization of St. Maarten empowers its people in a never-ending effort to continuously develop and improve the quality of products and services provided by promoting productive change and supporting bottom-up efforts to do so through involvement of everyone in the organization Observable behaviors of Continuous Improvement An employee demonstrating continuous improvement within the Government Organization of St. Maarten: Is critical and open for constructive criticism. Has an improvisation and creative skill. Cherishes learned experiences and does not make the same mistakes twice. Continuously strives to improve customer value by increasing productivity that ensures higher quality that is simultaneously paired with reductions in costs. Is motivated to promote change and is supported in his/her efforts to do so by seniors. Is engaged in a relentless, endless business wise search for a better way to do everything the organization does. 2.3 Strategic competencies are defined as the main knowledge, skills and attitudes, in terms of observable behaviors, required to effectively and efficiently contribute to the achievement of organization's vision, mission, core values and strategic objectives. These are the competencies that all employees across the organization are expected to acquire, develop, and/or strengthen or to develop in order to successfully execute their role, tasks and responsibilities as an employee. As mentioned in the introduction workshops have been held with the respective Directors, Department Heads, and other representatives of each directorate/sector within the Government of St. Maarten in order to determine the sector/directorate-specific strategic competencies. 10

12 The objective of the competency workshop has been to identify and define the most important strategic competencies that are in line with the sector/ directorate specific: Vision Mission Objectives Policy areas Tasks and responsibilities Required ambition, organizational culture and core values of the Island Government of St. Maarten. For each directorate/sector the participants (respective panel of expert of each directorate/sector) have determined 6 strategic competencies. Based on the input provided by the respective panel of expert of each directorate/sector in these workshops, each strategic competency has been defined and provided with a list of observable behaviors. Observable behaviors are the visible behaviors of a competency that can be used to observe whether a person demonstrates a certain competency, and how proficient he/she masters the competency. Behavioral indicators make competencies observable and measurable by others. They are the behaviors (job-specific or generic behavioral indicators) that all employees across the organization are expected to demonstrate or to develop in order to successfully execute their role, tasks and responsibilities. Here follows an overview of the strategic competencies that have been determined for each directorate/sector Strategic competencies Directie Programma s en Projecten: No. 1. Strategic thinking 2. Result-oriented 3. Communicative skills 4. Organizational sensitivity 5. Independence 6. Integrity 11

13 2.3.2 Strategic competencies Directie Ondersteuning No. 1. Service-minded 2. Result-oriented 3. Professionalism 4. Integrity 5. Communicative skills 6. Accountability Strategic competencies Directie Middelen No. 1. Integrity 2. Teamwork 3. Communicative skills 4. Result-oriented 5. Accountability 6. Accuracy 12

14 2.3.4 Strategic competencies Sector Economie en Toerisme No. 1. Result-oriented 2. Communicative skills 3. Teamwork 4. Technical expertise 5. Assertiveness 6. Decision-making capability Strategic competencies Sector Educatie No. 1. Teamwork 2. Result-oriented 3. Motivation 4. Accountability 5. Problem identification 6. Innovation 13

15 2.3.6 Strategic competencies Sector Welzijn No. 1. People skills 2. Integrity 3. Teamwork 4. Accuracy 5. Objective thinking 6. Technical expertise Strategic competencies Sector Ruimtelijke Ontwikkeling en Beheer (ROB) No. 1. Teamwork 2. Professionalism 3. Organizational sensitivity 4. Accountability 5. Integrity 6. Organizational awareness 14

16 2.3.8 Strategic competencies Sector Gezondheidszaken No. 1. Technical expertise 2. Accountability 3. Preventive-minded 4. Innovation 5. Service-minded 6. Teamwork Strategic competencies Kabinet van de Gezaghebber No. 1. Advisory skills 2. Integrity 3. Objective thinking 4. Organizational sensitivity 5. Communicative skills 6. Effectiveness 15

17 Strategic competencies Eilandsecretariaat No. 1. Teamwork 2. Coordinating skills 3. People skills 4. Result-oriented 5. Quality-of-work oriented 6. Professionalism 16

18 2.4 Link between In the table below an overview has been given of the strategic competencies that are supportive to each specific core value. Core Value Service/Client-orientation Advisory Skills Communicative Skills Organizational Awareness Organizational Sensitivity People Skills Problem Identification Quality-of-Work oriented Strategic Thinking Quality Accuracy Assertiveness Effectiveness Professionalism Teamwork Technical Expertise Reliability Accountability Independence Integrity Continuous improvement Coordinating Skills Innovation Motivation Preventive-Minded 17

19 3 Basic conditions The participants of the workshops have identified the following basic conditions in order to be able to successfully implement the desired organizational culture, required core values and strategic competencies within the Government Organization of St. Maarten: Employees must have the commitment to have the right tools and systems implemented in order to produce results on time. Employees must have the ability to set clear, measurable and challenging goals and effectively deliver on these. The appropriate infrastructure should be in place at the Government Organization of St. Maarten, in order to be able to effectively serve the client by providing training to and continuously inform its employees about the products and services it offers. In order to get buy in for this project, a number of information sessions should be organized with: The Eilandsraad (support) The Bestuurscollege (ratification) The Sector Directors The Department Heads There should be effective communication with regard to this project. - In this regard a communication plan should be developed and implemented/executed effectively. There should be willingness to change. - In this regard a change-management plan should be developed and implemented. There should be persuasiveness: top-down (vertical) and from all sides (horizontally). Walk your talk : The ones involved should honor agreements made and really do whatever they have said they would do. Moreover, the required core values should be internalized by decision-makers. An overall implementation plan should be developed and implemented/executed. In this plan accountability issues should be addressed. Legislation with regard to this project should be revised and adapted/updated if so required. There should be an internal believe in this project: self-fulfilling prophecy - it s effective and required for the entire Government Organization. 18

20 The project should be executed effectively; it should be completed, otherwise it will become another initiative that has never been completed. Financial resources should be made available for the execution of this project. An implementation committee should be established in order to monitor the process and ensure that the activities with regard to this process are being executed. 19

21 4 Conclusions In this memorandum an overview has been presented of the outcomes of the main activities the Commissioners, the Island Secretary, Sector Directors, Department Heads and some other professionals of the Government Organization of St. Maarten have undertaken, in order to determine the desired organizational culture, the required core values and the strategic competencies of all the sectors of the Government Organization of St. Maarten. These outcomes and findings have provided a clear view of the direction in which the Government Organization of St. Maarten wants and needs to develop itself, and which core values and strategic competencies will support the organization in this whole change process. An elaborate overview of the activities that will support the culture change process can be found in the Culture Implementation Plan. 20