Let the customer promise be your guiding light
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tldr; Organisations exist to fulfil the promise that they made to their customers. This talk describes an approach that uses customer promise, existing culture and the gap between the two as a guiding light for defining goals of an agile transformation. Longer version: Leading an Agile transformation is a major undertaking. It is easy to invest all your energies and time at finding the tactical solutions and making strategical changes and not emphasise enough on culture. To ensure that your transformation is more than just a face-lift, it is important to dig deeper into nuances of culture. Attend this talk to walk away with a tool that leaders and change agents can use to understand and evaluate the depth and breadth of their cultural initiative, identify gaps and create action items to address the gaps. The tool is based on an upgrade of well-known Schneider's cultural model. It provides an approach for leaders of an organisation to centre their transformation efforts around culture, leadership and customer promise. We will start with the Schneider model to assess the existing culture and the leadership style prevalent in the organisation and will then link it to the customer promise. The model will cover the impact of an evolving customer promise and the complexities of managing it when the enterprise has multiple and often competing sub-cultures.
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Let the customer promise be your guiding light
- 1. Let the Customer Promise be your Guiding Light Nafees Butt @mnsbutt
- 3. In the next ~45 minutes… ● What ○ Define Culture ○ Schneider Culture Model ○ Assessment Survey ○ Customer Promise Extension ○ Culture, Leadership, Customer Promise - Interdependence ● Who ○ Change Agents ○ Agile Leaders ○ Agile Coaches ● When ○ *
- 5. Define Culture “the way we do things around here to succeed”
- 6. Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. …
- 7. Five Focus Areas 3. … 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • climate
- 8. “the wibbly, wobbly thing that connect everything” --Michael Sahota
- 9. • Instructions • “When I boil it down and get to the heart of the matter, which of the four possible answers most accurately describes my actual experience in my organization?” • Concentrate on how things really operate and not on how you believe they ought to be • Be objective. There is no right and wrong answer • Focus on your whole organization and not just your group, or department • 15 minutes • Click “Done” when finished (or timer expires) • Any Questions? • http://bit.ly/lastconf-culture Survey Time
- 11. Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 12. Dominance, The biggest Synergy Superiority, The best Fuller realization of potential growth Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 13. Get and keep control Build teams, Engender positive relationships, Fully utilising one another Organisation that has highest level of capability & competence, Pursue Excellence Provide conditions for people to grow, and strive to accomplish highest order purpose Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 14. Controlling, Only game in town Partnering, We did it together Offer the most superior value, State of the art Realise potential, Uplift, Fulfillment, Enrichment Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 15. Authoritative, Definitive, Maintain power, Cautious, Realistic Coach, Team builder, Participative, Realistic, Ensure diversity, Brings right mix of talent Visionary, Assertive, Push limits, Recruit the most competent, Challenge subordinates Catalyst, Cultivator, Empower people, Inspire people, Steward, Maker of meaning Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 16. Methodical, Careful, Conservative, Prescriptive, Impersonal, Task driven Participative, Collegial, Democratic, Personal, People driven, Emotional, Informal Task driven, Objective, Intense, Challenging, Emotionless, Impersonal, Crisp People driven, Personal, Emotional, Humanistic, Purposive, Promotive, Nurturant Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 17. HierarchyGroup, Cluster Matrix, Adhocracy Wheel-like, Circular lattice Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 18. Compliance, Functionalist, Follow directives, Be useful, Adhere to the role requirements Collaborate, Be a team player, Honor diversity, Take initiative, Generalist Expert, Creative, Function independently, Demonstrate competence, Specialist Be creative, Express yourself, Be willing to grow, Realise your potential, Be committed Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 19. Specialist channeled into service of functions Individuals serve in numerous functions Functions channeled into service of specialties All - Individuals do all Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 20. Role, PositionRelationship ExpertiseCharisma Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 21. Very thorough, Methodical, Prescriptive, Push for certainty, Formula oriented Participative, Consensus oriented, Lots of brainstorming, People driven, Subjective, Trusting Very analytical, Scientific, Impersonal, Efficient, Formal logic, Emotionless Purposive, People driven, Informal, Very subjective, Emotional, Participative Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 22. Mandate it, Resistance to change Team calls for change, Open to change Achievement goals drive change, Open to change Embrace/assum e change, Change is automatic Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 23. Discipline, Order, Certainty, Realism, Predictability, Standardisation, Objectivity Synergy, Egalitarianism, Diversity, United we stand, divided we fall, Harmony, Involvement Meritocracy, Professionalism, Creativity, Pursue excellence, Craftsmanship, Autonomy Growth, Purpose, Shoot for the stars, Values are paramount, Faith, Dedication Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 24. Serious, Impersonal, Air of secrecy, Formal, Steady Personal, Work hard, play hard, Busy pace, Emotional, Trusting, Lively Competitive, Intense pace, Serious, Impersonal, Rigorous, Prideful, Rational, Formal Lively, Magnetic, Caring, Giving, Emotional, Personal, Spirited, Informal Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate CommandCollaboration CompetenceCultivation
- 25. CommandCollaboration CompetenceCultivation Five Focus Areas 1. Strategic Focus • Definition of success • Way to success • Approach with customer/constituents 2. Leadership and management focus • Leadership focus • Management style 3. Structural focus • Organisational form • Role of the employee • Task focus 4. Power focus • Nature of power/authority • Approach to decision making • Approach to managing change 5. Relationship focus • Key norms • Climate
- 28. Culture Leaders Control Directive Collaboration Participative Competence Standard Setter Cultivation Charismatic ?
- 30. Customer Promise Culture LeadersCulture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 34. No observable customer promise ● Directory listing, Internet search or Email storage ● Others? ○ Technology company ○ Media company ○ Advertising company ○ Entertainment company ○ Digital magazine company ● In 2011-2012 alone… ○ Carol Bartz ○ Tim Morse ○ Scott Thompson ○ Ross Levinsohn ○ Marissa Mayer ● 125 billion to ~4.8 billion
- 35. Not delivering on customer’s promise ● Microblogging website ● Customised enterprise ● Sold for 1.1 billion ● Yahoo acquisition ○ Merge sales teams ○ Announced a $100m sales goal ○ Staff turnover ○ Reversed the merge of sales team ○ By 2016, value dropped by ~$700m
- 36. Customer Promise Culture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 37. ● Public relations firm ● CEO + COO for 25 years ● Profitable & Happy customers ● COO retire, CEO acquired the role ○ Turnover ○ Customer complains increasing ○ Revenue down ● Cultural analysis ○ Customer promise: Customised ○ Culture: Collaborative ○ Leadership Style: Participative & Standard-setter
- 38. Customer Promise Culture LeadersCulture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 40. Lack of integration ● Public relations firm ● CEO + COO for 25 years ● Profitable & Happy customers ● COO retire, CEO acquired the role ○ Turnover ○ Customer complains increasing ○ Revenue down ● Cultural analysis ○ Customer promise: Customised ○ Culture: Collaborative ○ Leadership Style: Participative & Standard-setter ● Integration ○ CEO to his original role ○ Reinstitute COO role ○ Participative leader
- 41. Customer Promise Culture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 42. Went out of balance ● Best selling mobile phone brand ● Circa 2008, smartphone market ● What did Nokia do ○ Wanted to become big (acquisitions, conglomerate) ○ Culture of fear ○ Senior leaders threatened to fire/demote middle managers ● Consequences ○ Middle managers knew Symbian vs Android vs iOS ○ Only optimistic news flowed up ○ Middle managers held the power to avoid resource being allocated elsewhere ○ Used power to an extreme
- 44. Customer Promise Culture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 46. Lack of adaptation ● “that’s cute but don’t tell anyone about it” – 1975, someone in Kodak ● Market research in 1981 ○ Digital vs Kodak’s film business ○ Had 10 years ● Filed for bankruptcy in 2012 ● … and elsewhere ○ Blockbuster’s Walmart CEO ○ Not about what you want the customer to pay for ○ Customers are leaving and your response is to: ignore their needs, cutting cost, etc.
- 48. Customer Promise Culture Leaders Predictable & Dependable Control Directive Customized Collaboration Participative Best-in-Class Competence Standard Setter Enrichment Cultivation Charismatic
- 49. In the next ~45 minutes… ● What ○ Define Culture ○ Schneider Culture Model ○ Assessment Survey ○ Customer Promise Extension ○ Culture, Leadership, Customer Promise - Interdependence ● Who ○ Change Agents ○ Agile Leaders ○ Agile Coaches ● When ○ *
- 52. What does it actually mean? • Provides people with internal way of life • Establish ground rules for • What is right/wrong • Which activities are in bounds/out of bounds • Communication patterns • Membership criteria • Criteria for judging internal effectiveness • Sets the expectation and priorities • Conditions for reward and punishment • Determines the nature and use of power • Installs the process for how decisions are
- 53. Notes • “the way we do things around here to succeed” – Marvin Bower ++ • An organisation can exhibit characteristics from all 4 cultures • Preference for one, uses both • Trivialise, not! • One culture is not better than others (goal is self-awareness) • Parallels between cultures and leadership paradigm (leadership and culture are two sides of the same coin, -- Ed Shein)
- 54. You have decided to change… • Know thyself – Shakespeare • Be true to oneself • Change comes from within • “If a plant is to unfold its specific nature to the full, it must be able to grow in the soil in which it is planted” – Carl Jung • “Honouring their past” & “without destroying it” – A. L. Wilkins and N. J. Bristow • “Culture… is singularly persistent… In fact, changing [organisational] behaviour works only if it can be based on the existing culture” – Peter Drucker
- 55. You have decided to change… • It takes time • Is painful and disrupting • We never really arrive • Is a continuous process • Possible but very difficult • Pushed in response to the demands of the business environment • Driven by crisis of mission and strategy, rather than any intention to change the internal organisation itself • Typically means new players, not the conversion of old players • Culture change has tremendous inertia and change very slowly
- 56. Culture – different lenses • Focus – on the core culture • Integration – internally coherent • Balance – state of equilibrium • Completeness – no glaring gaps
- 57. Harison, et. al. Work from others
- 58. Define ● Levels of trust & safety ● Ability to deal with conflict ● Willingness to align to a team goals ● Diversity ● Digital Ambition ● Value streams ● Governance and compliance ● Reward System ● Metrics / KPIs / ● Intentional learning ● Office Design ● Continuous Improvement ● Work-life balance ● Willingness to keep each Organisational design, culture & social dynamics ● History ● Vision, Mission, Values (Actual) ● Technology Stack ● Team Structures ● Shared functions ● Key systems of engagement ● key systems of innovation ● Organisation Chart / Power Structure / Roles & accountabilities Prioritise
- 61. Examples… • SOS Inc. – a newspaper publishing company • Change Technologies – management consultancy • Sigma Electric – electric utility company
- 62. … without that linkage, information on culture would be helpful but not impactful enough. My view then (and now) is that customer promise, culture and leadership must be addressed together and that, until such is done, it is difficult to make a substantive and lasting contribution to the success of any enterprise.
Editor's Notes
- Marvin Bower ++