The Power of Perils of using Measurement in Organizational Culture Development: Liz Murphy

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This session was designed more as a workshop than a presentation. Anyone who’s interested in this, please contact Liz Murphy: Liz.Murphy@omg.co.uk for a conversation.

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The Power of Perils of using Measurement in Organizational Culture Development: Liz Murphy

  1. 1. THE POWER AND PERILS OF USING MEASUREMENT IN ORGANISATIONAL CULTURE DEVELOPMENT An Old Mutual Case Study Liz Murphy
  2. 2. ABOUT OLD MUTUAL Old Mutual is an international long-term savings, banking, protection and investment Group Listed on London, Johannesburg, Zimbabwe, and Malawi stock exchanges Primary locations: Southern Africa, East and West Africa, UK, Europe, US, LatAm, India, China Adjusted Operating Profit (AOP) 2013 £1,612m Funds under management (FUM) 2013 £294bn Number of employees 2013 56,812 2
  3. 3. BACKGROUND 2008: Financial Crisis 2010: New customer-centric vision: To become our customers’ most trusted partner, passionate about helping them achieve their lifetime financial goals ACT NOW! Leadership Actions – our values in practice – introduced to address the shifts in culture needed to drive the achievement of the vision 2011: First Barrett Culture and Values survey conducted across the whole of the Old Mutual Group as a way of measuring culture and progress with the desired shifts 3 What can be measured can be managed, and what gets managed gets done
  4. 4. Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values Matches Old Mutual Senior Leaders (69) Entropy = 27%
  5. 5. A FEW OF THE THINGS WE’VE DONE Four themes: • Accountability (moving from bureaucracy) • Long-term perspective (moving from short-term focus) • Customer fist (moving from internal focus) • Avoiding tough conversations Annual Leadership conferences focus Executive leadership teams ‘Alignment’ – self-awareness, building trust, strategic story-telling Culture Leads – embedding a capacity for culture change into the business Organisational processes aligned – Operating model, performance management, 360 feedback, leadership development, recognition, ExCo LTIPs, business planning, annual reporting….. Team conversations, local actions and initiatives – no group-wide roll-outs! 5 THE OLD MUTUAL GROUP CULTURE SURVEY
  6. 6. Current Culture Values (CC) – 2012 (64) SENIOR LEADERS: Current culture 2011- 2014 Current Culture Values (CC) – 2011 (69) 6 Current Culture Values (CC) -2014 (66) 5 limiting values No customer values Few matches High entropy 4 limiting values Accountability increases Customer values appear Entropy reduces Matches increase Accountability and customer values continue to move up No limiting values in the top 10 Even distribution levels 2 to 6 Healthy entropy 5 matches CONFIDENTIAL DATA
  7. 7. RESULTS: SUCCESSFUL DELIVERY OF 3-YEAR STRATEGY 7
  8. 8. BUT HERE’S WHAT’S ALSO HAPPENING 8 . Making this a great place to work “The results of the Barrett Culture Survey, conducted recently, show that Old Mutual’s culture is strong, healthy and guided by shared values. Our overall culture survey response rate of 85%, up from last year’s 80%. This is viewed as an excellent result that drives engagement. Our overall entropy score is still a healthy 11%, slightly up from 10% last year. • The number of matching values increased from seven to eight. This increased alignment is a sign of a strengthening culture. • We have no limiting or problematic values. • In the next couple of weeks, you will receive the results for your particular business area.” What do you notice?
  9. 9. IN SUMMARY: THE POWER AND PERILS OF MEASURING CULTURE Powerful for: • Tracking progress and maintaining energy for long-term change • Determining where to focus as described in the desired culture • Giving equal attention to culture alongside other business goals/metrics • Creating a common language for the ‘human’ dynamics in the organisation But beware of: • Routine and institutionalisation • A fixed ‘right answer’ • Narrow focus on results • Mistaken assumption about how to ‘manage’ culture • Becoming a happy people indicator 9
  10. 10. IN CLOSING Revolutions in consciousness cannot be made lasting and effective until legions of people start to work together in concert for a common aim and, rather than relying on the intermittent pronouncements of mountain-top prophets, begin the unglamorous and deeply boring task of wrestling with issues of law, money, long-term mass communication, advocacy and administration 10 All we can do, and must do, is to unclench, pay attention, and take our best next step (Adam Kahane: Power and Love)

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