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Developing and Measuring Organizational Culture Webinar
- 1. Welcome to the webinar on developing and measuring organizational culture We will start at 12.00 CET March 5th, 2014
- 2. Developing and measuring organizational culture Lunch webinar March 5th, 2014 Time: 12.00 – 12.45 CET
- 3. Who we are Niklas Granlund Elahe Tavakoli • More than 13 years of experience as management consultant • More than 7 years of experience as management consultant • Culture changes, change communication, project management and downsizing and rationalization • Culture changes, change communication and process development • Certified CTT-consultant Certified CTT-consultant Elahe.Tavakoli@implement.se • Niklas.Granlund@implement.se 3
- 4. - Market leader in Scandinavia within implementation of change - 400 employees - Service private and public companies in Scandinavia and in the Baltics 4
- 5. To plan, lead and implement changes is our core business • Typical projects: • Implement a new strategic direction • Mergers & acquisitions • LEAN implementation or process development • Leadership development • Cultural transformation • … 5
- 6. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 6
- 7. Culture is a means… Vision Current state 7
- 8. You have a choice… Evolutionary approach Architectural approach Source: Freely after Daryl R. Conner 8
- 9. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 9
- 10. Can you measure culture? Relationships Love Happiness Co-operation 10
- 11. Can you measure culture? Visible signs Leadership & ”employeeship” Structures Climate & spirit Conclusion – Yes, but be aware that you are simplifying! 11
- 13. 3 phases of a culture project Strategic decisions 1. Explore and analyse 2. Implement 3. Integrate Secure results, on-going development and followup Time 13
- 14. Phase 1: Explore and analyse CTT: Current Culture Values • Establish project • Collect data • Analyse current and desired culture • Secure common understanding and ownership among top management 14
- 15. Phase 2: Implement • Create common understanding of current and desired state in the organisation through structured dialogue(s) • Strengthen ownership among managers 15
- 16. Phase 3: Integrate • Integrate values in structures, systems and processes • Adapt feedback systems Attract Recruit 16 Develop Phase out
- 17. 3 phases of a culture project Explore and analyse • Establish project • Collect data • Analyse current and desired culture • Secure common understanding and ownership among top management Implement • Create common understanding of current and desired state in the organisation through structured dialogue(s) Integrate • Integrate values in structures, systems and processes • Adapt feedback systems • Strengthen ownership among managers CTT: Current Culture Secure results, on-going development and followup Strategic decisions Attract Recruit Develop Phase out Time 17
- 18. The Cultural Transformation Tools (CTT) …used to measure and manage the culture in the organization by making it visible 18
- 19. CTT – a sample of users ABN Amro Adobe AllState American Red Cross American University AstraZeneca ANZ Bank Banque Populaire BP Oil Bridgestone Firestone Campbell’s Food Catholic Health Services Canadian Broadcasting Capital One Ceridian Computer Associates Corning Court TV Deutsche Bank Duke University Ericsson Ernst and Young Exxon Ford Motor Company IKEA ING Bank Internal Revenue Service Johnson and Johnson Kellogg’s Food Kraft KLM Konica Minolta KPMG Lever Faberge Lloyd’s TSB L’Oreal Methodist Hospital Microsoft Motorola Nestle 19 Nortel Networks Ohio National Guard Petrobras PriceWaterhouseCoopers Rabo Bank Royal Automobile Club SEB Bank Smithsonian St Luke’s Health System Thrivent Total Petroleum Unilever Foods University of Pennsylvania US Customs Volvo Wegmans Wharton Business School Wrigley World Bank Xerox
- 20. CTT in practice • Online survey with 3 questions · Personal values · Current culture · Desired culture • Choose values/behaviours from a list of words • 20 min • ~40 different languages • Based on motivational theory • Cost connected to number of reports/demographic cuts • Expert validation 20
- 21. CTT-results Accumulated • Personal values • Current cultural values • Desired cultural values Personal Values Current Culture Values 21 Desired Culture Values
- 22. CTT measures potentially limiting aspects of the culture Level Potentially Limiting Values (votes) Percentage 3 hierarchy (107) confusion (98) bureaucracy (86) silo mentality (73) power (56) information hoarding (45) long hours (40) 505 out of 911: 22% of total votes 2 internal competition (79) blame (31) manipulation (24) 134 out of 199: 6% of total votes 1 short-term focus (64) cost reduction (38) control (32) caution (28) exploitation (19) job insecurity (15) 196 out of 317: 8% of total votes Total 835 out of 2330 36% of total votes 22
- 23. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 23
- 24. ANZ Bank – cultural journey We want to be the bank with a human face CEO John McFarlane 24
- 25. ANZ Bank – Cultural journey 2000 to 2005 2000 cost reduction profit shareholder value results orientation accountability continuous improvement customer focus bureaucracy achievement goals orientation hierarchical short term focus long hours commitment risk aversion 2001 2002 2003 cost reduction shareholder value accountability customer focus profit results orientation continuous improvement achievement bureaucracy being the best customer satisfaction goals orientation brand image organizational growth long hours teamwork control hierarchical commitment community involvement cost reduction customer focus shareholder value accountability continuous improvement profit results orientation achievement community involvement customer satisfaction teamwork being the best organizational growth bureaucracy balance (home/work) long hours productivity brand image hierarchical can do approach commitment customer focus cost reduction accountability continuous improvement achievement profit results orientation community involvement shareholder value customer satisfaction teamwork bureaucracy being the best hierarchical balance (home/work) commitment long hours organizational growth brand image productivity Enhancing values 25 Limiting values 2005 customer focus community involvement cost reduction accountability results orientation brand image achievement profit bureaucracy customer satisfaction continuous improvement shareholder value teamwork being the best balance (home/work) perform best practice long hours organizational growth hierarchical
- 26. ANZ Bank – employee satisfaction rose dramatically 90% 78% 85% 72% 80% 70% 60% 78% 82% 58% 62% 49% 50% 40% 30% 20% 10% 0% 1999 jul-00 Jul-08 Feb-02 Jul-02 26 Feb-03 Jul-03 Feb-04
- 27. ANZ Bank – net profit after tax ($m) increased significantly 3000 2500 2000 1500 1000 500 0 1995 1996 1997 1998 1999 2000 27 2001 2002 2003 2004 2005
- 28. ANZ Bank – results Lives its values – from 20% to 80% Productivity in meetings – from 61% to 91% Openness and honesty Can-do culture Revenue per employee increased by 89% Average profit growth of 15% 28
- 29. Supported by research Effective culture can account for 20-30 % of the differential in corporate performance when compared with "culturally unremarkable" competitors. James L. Heskett, The Culture Cycle 29
- 30. Some cases from the Nordic and the Baltics… 30
- 31. Swedish authority • Need to develop a culture in line with external environment, assignment, objectives and strategies • ~400 people 31
- 32. Scandic Hotels • Revitalize values – inclusive approach • ~8000 people in 9 countries 32
- 33. ICA/Rimi • Aim: Unite the organisation – work as ONE! • CTT within all companies and countries – 500 representatives • On-going implementation 33
- 34. Do’s and don’ts in culture projects • Top management ownership is crucial • Develop a plan • Gain widespread support for the project – involve all levels • Measure – specify why, when and how to work with the results • Don’t get stuck in the analysis, focus on the implementation instead • Make it stick – carry out activities over time • Endurance is key 34
- 35. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 35
- 36. Implement can support you in all phases of your cultural journey • We can support you in all phases of your cultural journey » Strategic partner » Provide tools and methods » Neutral, ”outside” – perspective » Measuring your culture – using the CTT 36
- 37. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 37
- 38. Questions
- 39. Thank you for listening! Feel free to contact us if you have any questions! ng@implement.se et@implement.se