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Organisation culture change short paper

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  • 1. Organisation Culture Change and Business Imperatives Some Design and Diagnostic Proposals December 2012emergecreators ofResponsibility Based Leadership™contact creena.oconnor@EmergeEducation.comOffice + 353 1 67 66 600Fax: +353 1 67 66 606(C) The rights of Emerge to be identified as the author of this work has been asserted by Emerge in accordance with the Copyright,Designs and Patents Act 1988
  • 2. LEADING CULTURE CHANGE There are well tracked logistics for bringing about culture change and these methods work If the business and social rationale is also present. To create the business and social rationale three things need to be addressed: Setting The Business Imperative Creating the Social Realpolitik Evidencing the Behavioural ShiftSetting the Business ImperativeThere is no thrust to behaviour change if there is no perceived desirable outcome. Evidenceshows that change driven by values alone does not bring about renewed cultures (though itcan spawn bureaucracies to service the desired value shift). Value driven change can bringabout short term change but the system return to its original behaviour if the outputs are notreinforcing the new behaviour.ThereforeThe first questions are: 1. If we require different business results what behaviours do we have to change to get them? 2. If our strategies need adjusting what behaviours must we adopt to make such adjustment?Creating the Social Realpolitikrealpolitik: politics based on practical and material factors rather than on theoretical or ethical objectives (Merriam-Webster)Culture change for improved business performance can not be achieved without analignment of the interest of social groupings in the organisation. This does not necessarilymean that the change has to be driven from the top (we have facilitated successful changedriven from the middle) but it does mean that the sponsors of change have to define thesocial groupings and understand their interests.Short Term Change ... can be driven from the topMedium Term Change ... must have engagement/sponsorship of key social influence agentsLong Term Change ... must involve the whole culturethereforeThe second questions are 3. What social groupings or power systems must be influenced to bring about change in behaviour and therefore culture? 4. What is the time frame in which we operate by necessity?Evidencing the Behavioural ShiftCulture is what is evident by behaviour: not what is described as desirable. For examplemost organisations say a culture of leadership by coaching is desirable but few have anymeasure of what this means in practice or how such a culture would be evident in thebehaviour of its managers. Almost none rate such behaviour and give feedback on it.[If organisations were to do these things there would be as many questions raised about theappropriateness of the behaviour as would be answered by the seeming desirability of suchbehaviour. It would become clear that a coaching style of leadership is sometimesdesirable and sometimes other behaviours are appropriate and necessary many of which© emerge and Emerge Education Ltd Page 2 of 6
  • 3. are the antithesis of coaching. It would also become clear that the model of coaching widelyembraced in contemporary organisation is less than adequate in behavioural terms for theneeds of business: indeed the model often subscribed to is a model more suited to socialwork than managerial leadership.]SoThe third questions are: 5. What behaviours would be more likely to yield us the results that we want in our business? 6. What does this tell us about the culture that is imperative?Warning: these will not be a long list of competencies as often depicted in managerialcapability charts. There will be a few key behavioural indicators that drive the culture. Forexample you can’t have diversity and uniformity as aspirations in the same culture thoughmany organisations seek to do precisely this. You either value diversity or you valueuniformity so choose and live with the difficult matter of trying to implement a managementsystem that optimises that choice.HOW?Revolution and EvolutionConservative leaders like evolution: it’s more comfortable and allows for mistakes to berectified. Radical leaders like revolution: it gets to results faster and results reinforce thedesired goals.Rarely in business will evolution change culture and behaviour enough to make a difference.(Here business is different from politics where national level evolution can bring aboutdramatic change over time – business is always on a shorter time performance demand).Therefore the business leader of change has to think in radical terms mostly. Radicalthinking requires mental and sometimes behavioural ruthlessness: many leaders will avoidthis because it firstly requires that they themselves change.Sothe question here is 7. Do we have the ruthlessness to create a revolution and the wisdom to allow that revolution to flourish once initiated?Putting the seven questions together we have to address: 1. What behaviours would be more likely to yield us the results that we want in our business? 2. If we require different results what behaviours do we have to change to get them? 3. If our strategies need adjusting what behaviours must we adopt to make such adjustment? 4. What does this tell us about the culture that is imperative? 5. What social groupings or power systems must be influenced to bring about change in behaviour and therefore culture? 6. What is the time frame in which we operate by necessity? 7. Do we have the ruthlessness to create a revolution and the wisdom to allow that revolution to flourish once initiated?© emerge and Emerge Education Ltd Page 3 of 6
  • 4. To Achieve Culture Change Define and Drive 5 Culture Change ImperativesImperative 1:Getting Top Leaders to Behave in the Manner of the Desired CultureMost organisations have significant dependency cultures. Therefore people imitate whatthey see senior leaders do (not what they say).To get top leaders behaving differently: Define Behaviours, Agree How they/where they aremanifest; Define the attitude/behaviour implications; Put new behaviours into performanceobjectives. [Do not go ‘politically correct’ in this process!]Imperative 2:Ensure Focused Business Goals are at the heart of the change.Most organisations have too many goals and ‘priorities’. These compete with each otherand none gets accomplished adequately. Leadership must re-define for focused goals andfewer priorities (while getting rid of the list of ‘103 tasks to achieve this quarter’ stuff). Makethe link for people so that the imperative for behaviour change is the same as the drive toachieve a business outcome.Imperative 3:Design Change Processes to take account of the Socio-Technical-Economic Systemof the business and its Environment.Most change programmes fail because they do not have a method for changing the socialsystem and account only for Technical and Economic systems change. Political and Peoplesystems serve to distort the change and the effort becomes unstable. (See Three ParallelProcess below)Imperative 4:Use Groups/Teams as the repository of the new culture and encourage them to beautonomous in fostering the change.Culture change is not an individual thing: it is locked into the norms of groups and teams inthe business. For this reason the buy-in has to be in, by and through teams. Use theseteams to become keepers of the new.Imperative 5:Use involvement and participation at every opportunity.Research demonstrates that involvement works. If you trust the people you are more likelyto achieve success.© emerge and Emerge Education Ltd Page 4 of 6
  • 5. TYPICAL PROCESSESDriver Group:Somebody needs to own the drive for change. Form a small group that will consistently andpersistently focus on a challenge the progress to change. This is not a formal managementcommittee: it is more of an adaptive ‘skunk-work’ group. It may or may not be formally‘authorised’ to bring about change, but it needs to have the self efficacy that it can and willbring such change regardless of who is formally for or against.[For Real Results:The Driver Group needs to be given sufficient autonomy to get on with processing thechange. It also needs sufficiently high level access to leverage the political process in theorganisation. It should not be peopled by ‘organisation man’: the person who normallygravitates to corporate ‘good deeds’ departments/functions. It should have insightful,courageous people of at least three different levels of the business and it should not be morethan five people. The people should be already very busy so they don’t have time to form abureaucracy.]Focus and Go:Ideally get the top level group to agree the business imperatives and the tight focusnecessary. Also get this level to agree to change its own behaviour. This will almost alwaysneed outside facilitation by someone who is tough enough to challenge the leaders and isentrepreneurial enough to understand the business opportunities.Train the Critical Mass Group in Behaviour and Goal Focus:The Critical Mass Group is the smallest group that must demonstrate change to cause achain reaction in the rest of the organisation. For example this might be the top 200managers in a typical mid-size company.Define the Processes and Systems that Need to be ChangedIf the culture is to change in line with a business imperative it is unlikely that the processesand systems currently in place will remain unchanged. Define focused work groups/streamswith clear delivery terms of reference and short time lines for delivery. If the project is bigbreak it into sub sets and don’t be afraid to reform teams at different staging posts in thedelivery of the result.Time is of the EssenceCulture change requires significant focus and challenge. Organisations develop culturesover time with which they are comfortable, no matter how dysfunctional these cultures are interms of achieving objectives. Culture change is therefore uncomfortable and disorientating.Because of this there are considerable pressures to return to the known, secure comfort ofthe expected. Essentially culture change is therefore a radical matter and because of this along stretch to achieve the change allows the system to seek and replant the originalcomfort. Change planners must achieve a sense of urgency and plan a period of agitationand discomfort to ensure that a new reality is installed.Retaining Identity PillarsIt is easier to change culture when organisations/teams are able to cherish the existing good.Change planners must be careful to define what the positives about the current culture areand to foster these within the new. In this way the team/organisation is able to reinforce itsidentity positively while it embraces a new way of behaving.Three Parallel Processes DesignYour change will need to be planned and monitored in three systems or processes. Yourdriver group will need the template to ensure that all systems are being addressed. Theprocesses together provide the orchestration to deliver an integrated result.Change success depends on the progress of each of these systems being delivered.© emerge and Emerge Education Ltd Page 5 of 6
  • 6. THREE PARALLEL PROCESSES FOR CHANGE DESIGN Driver Processes Goals and Systems Training and Culture Processes ProcessesSet Business Imperatives Simplify Goals Define Culture which will deliver the business ImperativesSet Change in Place Simplify & Align Strategies to Goal Convene workshop to change attitude and get behaviourEstablish Governance Group Align Performance adoption Management to Goals and Strategies Train people in the desiredDesign Change Processes in way of workingline with Economic- Socio-Technical-Systems realities Align Reward Systems to Contract personal and team desired outputs behavioural changeDefine tracker and feedbackprocesses Provide feedback mechanismsProclaim Successes en route Celebrate wins - who owns the problem - which systems act as enablers - what specific behaviour- who understands the - which need change changes desiredopportunity - what streams of work are - what culture and way of- top down or middle out implied working essentialdevelopment - who will own and champion - how to create ‘buzz’- big launch or ‘crush’ process the streams of work - how to build on strengths of- time frame and radical need - how to ensure that systems past/ challenges of future- who are the significant are not pulling against each - how to reinforce desiredopinion formers and how will other behaviourthey be influenced - how to release innovation - how to allow for variation- how to ensure entrenched and personal innovationself interest doesn’t confoundchange- how to provide selfreinforcing feedback loops... [the Roman Army does] not sit with folded hands in peace time ... they never have a truce fromtraining, never wait for emergencies ... their peace manoeuvres are no less strenuous than ... warfare... [throwing all] energy into ... drill, as though ... in action. Hence that perfect ease with which theysustain the shock of battle: no confusion breaks... formation, no panic paralyzes, no fatigue exhausts... victory is the invariable consequence ... [one can] describe their manoeuvres as bloodless combatsand combats as sanguinary manoeuvres Josephus: Jewish chronicler of Roman History© emerge and Emerge Education Ltd Page 6 of 6