Improving Change Management Application through Cultural Awareness and Adaptation

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1 Improving Change Management Application through Cultural Awareness and Adaptation By Rashelle Esparza and Robert Stise, Prosci

2 Percent of respondents Abstract Prosci research explored the impact that culture has on change management in its 2015 benchmarking study. This was performed using six cultural dimensions taken from various thought leaders work on culture. This paper argues that change managers who understand and use these cultural dimensions are able to better customize their change management approach to their own and various other cultures. Customizing a change management approach to accommodate the culture moves change management beyond assessing overall readiness, and instead provide a deeper understanding of how culture impacts change ultimately enabling change agents to deliver better results. It comes as no surprise that, within the last two years, change managers are looking for research and insight to adapt and adjust their change management approach within varying and numerous cultures. In Prosci s Best Practices in Change Management 2016 Edition, 90% of the 1120 participants reported that cultural impact was important or very important, with over half rating it as very important (Figure 1). Figure 1 Impact of cultural awareness on change management 60% 50% 40% 56% 30% 34% Introduction One of the most common analogies used to explain culture s impact on human life is: culture is to humans what water is to fish. Just like fish in water, we move through culture every day. It impacts us in thousands of ways, dictating how we talk to our employers, how we organize and process information and how we advocate for ourselves in the work place. More and more organizations are growing on a global scale, with corporate headquarters located in one country or location and various satellite offices scattered across the globe. With this expansion come additional challenges in implementing change at an enterprise level. Not only will there be constraints due to distance and language, but there are additional challenges as each location has their own cultural identity within the overarching culture of the organization. 20% 10% 0% 1% 5% 4% Not important Slightly important Neither important or unimportant Important Very important 2016 Prosci Inc. Best Practices in Change Management 2016 Edition. Figure 1 may not surprise any of us. It does, however, provide quantitative proof that culture does impact change management. How Cultural Awareness Impacts Change Management Prosci participants also were asked how cultural awareness affects change management. Participants noted four primary ways:

3 1. Opportunities for Customization Participants felt that change management strategies need to be customized for the culture where change is being implemented. Change management activities and training also needs to be adapted to cultural-specific standards and consider disparate cultural values and beliefs. 2. Cultural-Specific Adaptations Being culturally aware helped identify areas where a change management approach needed to be adapted to be more effective. Participants felt that different cultures would view and interact with work relationships differently, and it was important to adapt to consider these differences. An understanding of cultural norms allowed change managers to integrate change activities more fully, thereby increasing credibility. 3. Avoidance of Cultural-Specific Obstacles Participants felt that every culture had obstacles and challenges that could be circumvented or addressed with appropriate cultural insight. These obstacles include cultural-specific norms and taboos that act as landmines for a change manager. Culture-specific resistance areas could also t be unfamiliar to change managers, cross-cultural resentment or bias from either a change manager or organization and culturally disparate ways of experiencing and processing change. This is a very long sentence and I find it difficult to understand. 4. Carefully Planned Communication Participants overwhelmingly identified a need to customize communications for a cultural setting. This included the mode of communication, the sender of messages and the structure and content of a message. Change managers should have a basic understanding of the language of the culture in which they are working. Communication improved through culturally-aware translators. With this ever growing awareness of the impact culture has on change management, it seems paradoxical that conversations about culture s impact on change management work seem to end short. Culture is often explored in a very general way that, at most, stops with acknowledging that cultural customization ought to happen. While coming to a consensus that cultural customization is critical, are we truly giving culture its due simply by making an acknowledgement of its impact? If ending the conversation there is not enough, then we must find a way to talk about culture in a meaningful way that not only allows us to understand our own and other respective cultures, but also gives us the tools to begin customizing our approach to our culture.

4 Understanding Culture Through Cultural Dimensions Most explorations of culture will quickly encounter the idea of cultural dimensions. These are s that cultural scholars have identified as being present in various social structures. Cultural dimensions describe how specific values and beliefs help construct and produce specific behavior in a culture. By understanding the behaviors that will likely be encountered, the change manager can anticipate and adapt their plan and approach accordingly. This leads to more intentional and purposeful implementation of a change management methodology. While there are many different lists of cultural dimensions from various scholars in the field, Prosci analysts chose to study six dimensions that likely have the largest impact on a change manager s work. Prosci drew from the scholarly works of the GLOBE study (House, 2004), Hofstede's Cultural Dimensions Theory (Hofstede, 1980) and Trompenaar's Seven Dimensions of Culture (Trompenaars & Hampden-Turner, 1997) to identify six cultural dimensions that had the greatest impact on change management work. They were: 3. Emotional Expressiveness How much or how little people are expected to display their emotional state in a professional environment 4. Power Distance The degree to which power is distributed equally or unequally throughout a culture 5. Performance Orientation The degree to which high performance, standards and striving for excellence is rewarded 6. Uncertainty Avoidance How much a culture seeks to avoid and mitigate uncertainty When discussing these dimensions in a change management context, it is an important first step to frame them in the correct light. To begin with, cultural dimensions are descriptive, not prescriptive. The cultural dimensions predict a specific set of behaviors within a culture based on that culture s beliefs and values. They do not suggest, prescribe or judge the culture s values and beliefs or the actions that this cultural dimension describes. 1. Assertiveness The degree to which a person is expected and allowed to advocate for themselves 2. Individualism vs Collectivism The degree to which people act in ways that benefit themselves or the group

5 Leveraging Cultural Dimensions in Change Management With this framework in place it is possible to start exploring how the cultural dimensions can be used to customize a change management initiative. At a general level, the cultural dimensions allow change management practioners to do a number of specific things. Firstly, they give us a tool for measuring the various cultures that we are working in. Rather than seeing a culture s actions and rituals as foreign or odd, we can begin to evaluate them as belonging to and expressed from a unique cultural dimension, just like our own actions and rituals. Secondly, the cultural dimensions give us an evaluative tool that can help us adjust and customize our change management approach. For instance, imagine you are a change manager working in a highly individualistic culture. If your change management communication focuses solely on how the change will benefit the organization as a whole, then your message will fall on deaf ears. Conversely, if you are working in a highly collectivist culture and you trying to create desire to participate in the change by extoling the individual opportunities for growth and development, you are not likely to motivate anyone to participate. As a final point, and perhaps on a more advanced level, the use of cultural dimensions gives us a way to talk about culture. Just as the fish has been made aware of the water it is swimming through, we may find it difficult to articulate and define what a culture is simply because it is such a normalized aspect of our daily lives. The use of cultural dimensions gives us a way of understanding our own culture and exploring others by providing us a means to talk about it. Data Collection and Analysis of Cultural Dimension Impact In the 2015 Prosci survey, participants were provided a definition of each cultural dimension in addition to high, moderate and low examples of each one and were asked to provide data points on each cultural dimension, namely: 1. Where they fell on the cultural dimension using scoring from 0 to The specific challenges they faced when introducing change, given their location on the 3. The unique adaptations they made when introducing change to accommodate for that cultural dimension Participant data was grouped into high, moderate and low categories based on their self-reported position on the cultural dimension scale and analyzed to determine themes regarding specific challenges and unique adaptations, as seen in Figure 2 below. 1 This numeric rating is useful for grouping participants into high, low and moderate positions on the. However, this numeric value is by no means precise and relied on participants reflection to determine their own placement. While there are likely other measurement tools that can be used for a more precise placement along the cultural dimension, this evaluative process is inherently qualitative in nature.

6 Prosci Analysis of Cultural Dimensions and Impact on Change Management Figure 3 Weighted scores for most impactful cultural dimensions Cultural dimension 1: Individuals vs. Collectivism Individualistic: Balanced: Collectivistic: Individualism vs Collectivism Power Distance Uncertainty Avoidance Assertiveness Prosci Inc. Cultural dimension 2: Power Distance Cultural dimension 3: Uncertainty Avoidance Cultural dimension 4: Assertiveness Cultural dimension 5: Performance Orientation Cultural dimension 6: Emotional Expressiveness Performance Orientation Emotional Expressiveness Index score of impact of cultural dimension 2016 Prosci Inc. Best Practices in Change Management 2016 Edition. Looking just at the dimensions participants ranked as having the greatest impact, Figure 4 shows that although the top three remain the same, the order shifted. Twenty-four percent of respondents ranked uncertainty avoidance as having the greatest impact on change management, followed by power distance (21%) and individualism versus collectivism (18%). Figure 4 Cultural dimensions rated as having the largest impact (ranked 1) Uncertainty Avoidance 24% Figure 3 shows the rank ordering of the impact of cultural dimensions on change management work. Responses were weighted and indexed. Individualism versus collectivism, power distance and uncertainly avoidance had the greatest impact on change management work, and emotional expressiveness had the least impact. Power Distance 21% Individualism vs Collectivism 18% Performance Orientation 16% Assertiveness 15% Emotional Expressiveness 6% 0% 5% 10% 15% 20% 25% Precent of respondents 2016 Prosci Inc. Best Practices in Change Management 2016 Edition.

7 Figure 5 shows the distribution of cultural dimension impact rankings. The percentage that ranked individualism versus collectivism (38%), power distance (39%) and uncertainty avoidance (41%) as 1 or 2 was higher than for the other cultural dimensions. Nearly half (49%) of all respondents indicated that emotional expressiveness was a low-impact dimension. Through research let us say also that we determine that our culture has a high amount of uncertainty avoidance. With this knowledge we can begin to customize our change management approach (Figure 6). Prosci Analysis of Cultural Dimensions and Impact on Change Management Figure 5 Distribution of cultural dimension impact rankings Individualism vs Collectivism Power Distance Uncertainty Avoidance Assertiveness 38% 39% 41% 32% 35% 33% 28% 37% 27% 28% 31% 31% Example analysis of specific challenges and unique adaptation for high uncertainty avoidance 2016 Prosci Inc. Cultural dimension 3: Uncertainty Avoidance Performance Orientation 33% 35% 32% Emotional Expressiveness 17% 34% 49% 0% 20% 40% 60% 80% 100% Ranked 1 or 2 (most impact) Ranked 3 or 4 Ranked 5 or 6 (least impact) 2016 Prosci Inc. Best Practices in Change Management 2016 Edition. Specific Challenges The Prosci 2015 study found four specific challenges that arose from high uncertainty avoidance cultures. Customization in Action Let us take a look at how the cultural dimensions allow us to customize our change management approach with a practical example. For our purposes we will take uncertainty avoidance as the most impactful cultural dimension. Our next step is to then to understand where the culture in which we are working sits on this cultural. We do this by first understanding what behaviors are indicative of a high, moderate or low placement the dimension. 1. Need for Detailed Communications The most frequently stated challenge was the need for significant details to be spelled out upfront prior to the start of change. This fueled a desire for a clearly-articulated vision and a detailed description of the future state prior to employees committing to participate in change. Communication and preparation for change needed to involve a wider audience so it was comfortable and ready for change and had the knowledge and tools to support it.

8 2. Fear of the Unknown Change brings uncertainty, and participants indicated that fear of the unknown associated with change led to a lack of tolerance for ambiguity. Many questions arose and frustrations set in when answers were not readily available. An unwillingness to change when people were uncertain about what was expected in the new system was a challenge that stemmed from fear of the unknown. 3. Risk Aversion High uncertainty-avoidance environments were marked by a desire to avoid risk and mitigate potential negative consequences of change. Participants noted that risk aversion often led to analysis paralysis and inaction. Risk aversion also led to bias toward maintaining the status quo until numerous risks had been addressed clearly. Decision making was formal, requiring rules and standards. Unique Adaptations Based on these challenges, Prosci found three primary adaptions that can be made to the change management approach. 1. Communication Participants looked for innovative and creative ways to communicate and increased communications regarding the business value of change. They included more one-on-one communication in their communication plans. 2. Adapting Change Participants slowed change, staggered changes or limited the number of changes occurring in the organization. Participants also mentioned more planning, increased flexibility and simplifying the change. 4. Slow Pace of Change Participants indicated that the slow pace of change was especially challenging in cultures of high uncertainty avoidance. Detailed planning, frequent questioning and clarifying expectations repeatedly extended timelines for change. 3. Increased Training and Support Participants increased training and found new ways to coach employees through change. They used ADKAR to discover where additional skill building was necessary and provided the support needed. These adaptations give us a starting point for customizing our change management approach. As we become more familiar with these dimensions, new areas of customization begin to open up to us. A skilled change manager can identify challenges and adaptations across a variety of cultural dimensions based on their impact in the culture that they are working in.

9 Conclusion Culture matters in times of change. But a simple acknowledgement of its importance is not enough to drive successful change. Change managers who can better understand and adapt to their culture can have a significant and positive impact on change results and outcomes. Cultural dimensions provide a descriptive framework to advance the conversation around change and culture. Prosci s Best Practices in Change Management 2016 Edition brings a new level of research to culture by exploring specific challenges and unique adaptations based on six cultural dimensions: 1. Assertiveness 2. Individualism vs Collectivism 3. Emotional Expressiveness 4. Power Distance 5. Performance Orientation 6. Uncertainty Avoidance References Creasey, T., & Stise, R. (2016). Chapter 15: Culture and Change Management. In Best practices in change management 2016 (9th ed., pp ). Fort Collins, CO: Prosci. Hofstede, G. (1980). Culture's consequences: International differences in work-related values. Beverly Hills, Calif.: Sage Publications. House, R. (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, Calif.: Sage Publications. Trompenaars, A., & Hampden-Turner, C. (1997). Riding the waves of culture: Understanding cultural diversity in global business (2nd ed.). New York: McGraw Hill. When a change management practitioner understands the cultures they are working within, he/she can ensure that their approach and methodology aligns with the cultural norms and beliefs, making them a more effective change leader.

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