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Aligning Culture:
Secret Weapon
in Effective
Change Management


Sally-Anne Cotton
September 2011
Questions that Concern Change Managers
How to get the buy in and support of
stakeholder groups?

How to keep focus in the face of “1,000”
initiatives?

How to identify potential roadblocks early and
deal with them?

How to loosen people’s attachment to old
systems?

How to prevent the culture killing the change?

How to ensure the long term sustainability of
the project?

                     People   ∆ Culture    ∆ Performance
50 – 70% of Change or Integration Efforts Fail!
                     IBM, 2008




                     Carleton and
                     Lineberry, 2004




            People   ∆ Culture   ∆ Performance
The Alligator River Story
The Alligator River




Abigail    Gregory      Sinbad       Ivan   Slug

          Rank all 5 of the characters
          1 = Best … or least despicable
           5 = Worst … or most despicable
               Use each number only once
The Alligator River
                  Loves Gregory
    Abigail       Asked Sinbad to take her across the river
                  Turns to Ivan for help – to no avail
                  Agrees to Sinbad’s terms and crosses river to Gregory

    Gregory      Lives on opposite side of the river
                 Casts Abigail aside with distain

                 Agrees to take Abigail over river if she sleeps with him
      Sinbad     Honours his word when Abigail concedes


                 Abigail turns to Ivan with her plight
      Ivan       He does not want to be involved at all

                 Heartsick & dejected Abigail turns to Slug
     Slug        Slug feels compassion for Abigail
                 He beats Gregory brutally

        As sun sets we hear Abigail laughing at Gregory
1 = best / least despicable             5 = worst / most despicable
The Challenge for Change Managers & Organisations




              People   ∆ Culture   ∆ Performance
Triple Faceted Cultural Alignment Process


     Map the                     Map the               Pulse the
     Culture                     Networks              Behaviours




• Cultural Alignment/     • Networks                  • Signature Behaviours
  Misalignment            • Weak links                • Key influencer groups
• Entropy                 • Influence gateways        • Monitor progress
• Bridging values         • Optimise relationships    • Increase collaboration
• Behaviours                                          & integration
                          • Build connected
                          competence                  • Sustain development




                        People     ∆ Culture   ∆ Performance
Map the
Culture
          Aligning the Winds & Currents
                             Mapping the culture to determine
                              the alignment between:
                             •Personal Values & the Current Culture
                             •Current Culture & Desired Culture
                             •Personal Values & Desired Culture
                               And the level & nature of what limits the
                             team or organisation (Entropy)
                               Identify & Embed Signature Behaviours




                                     Personal     Current    Desired
                                      Values      Culture    Culture
              People   ∆ Culture   ∆ Performance
What Cultural Entropy Looks Like


What does 46%
entropy look like?




    Energy available for
    productive work




    Non-productive or
    destructive energy




                           People   ∆ Culture   ∆ Performance
The Language of Entropy
    Change Team                        Organisation
                                        bureaucracy (9)
                                          hierarchy (8)
                                       silo mentality (7)
    long hours (1)                       long hours (3)
                                          confusion (2)
                                   information hoarding (2)
                                            power (1)
                                   internal competition (6)
internal competition (1)
                                      empire building (2)
                                     short-term focus (5)
                                         control (4)
      control (1)
                                      job insecurity (3)
   job insecurity (1)
                                         caution (2)
                                       exploitation (1)
   4 out of 120: 4%                  55 out of 120: 46%



          People     ∆ Culture   ∆ Performance
Identify the
Networks       Aligning the Winds & Currents
                                    Identify Formal & Informal Networks.

                                    Leverage
                                     Gateways and Blockage Points
                                        Influencers and Saboteurs
                                        Trust Levels




                   People   ∆ Culture    ∆ Performance
Building the Stakeholder Influence Matrix
          Cohesive,                          Misaligned,
    well connected groups               disconnected groups




Social Network Analysis (SNA)
Efficiency: Optimise relationship interfaces
Effectiveness: Build connected competence
Innovation: Leverage relationships to generate & implement ideas


                 People   ∆ Culture   ∆ Performance
Leveraging Stakeholder Influence

              Key Stakeholder Leverage




                     The 12% most
                     connected people
                             Loose
                     influenced 50% of the
                     relationships




     People    ∆ Culture   ∆ Performance
What People Do Screams Louder Than What They Say
 ‘80-90% of employee behaviour is determined
        by what managerial leadership attends to,
                measures, rewards, controls,
                       reacts to, models and coaches.’

                                                           Towers Perrin 2004




                      People   ∆ Culture   ∆ Performance
Pulse the
Behaviours
             Aligning the Winds & Currents
                                      Tracking the Signature Behaviours
                                        Identifies gaps and guides
                                      personal development
                                        Reinforces positive behaviour over
                                      time
                                       95% improve by 3rd Pulse




                 People   ∆ Culture    ∆ Performance
Pulsing Signature Behaviours

        Promotes Development of Others
Group                              Individual




 Tri-annual trend analysis
 Measures hard and soft skills
 Tracks organisational direction / objectives
 Influences self directed shaping and shifting of behaviours
 Whole of system philosophy
           People   ∆ Culture   ∆ Performance
Dynamic Real Time Dashboard

                  Signature Behaviours

Demonstrates                             Promotes
 Respect for                           Development of
Contributions                              Others

  Innovate                                 Makes
Appropriately                             Company
                                           Proud

                                          Encourages
Demonstrates
                                             Staff
Cost Conscious
                                         Empowerment




                People   ∆ Culture   ∆ Performance
Bringing It All Together

                                                          Accelerate
                                   Leverage


            Align

                                                      Behavioural Change


                                   Networks
Personal    Current   Desired
Values      Culture   Culture
           Culture

                          People   ∆ Culture   ∆ Performance
Aligning the Whole System behind the Change


                            Personal
                            Alignment




            Vision                        Mission
            Alignment                     Alignment




                            Structural
                            Alignment




           People   ∆ Culture   ∆ Performance
The Secret Weapon of any Change -




 Aligning People to their New Pond

       People   ∆ Culture   ∆ Performance
For more information

         Please call us on 03 8796 0796 or
         0416 11 54 11 – Sally-Anne Cotton
         0438 194 944 – Peter McDonald

         Or email

         info@executivealchemist.com.au




People   ∆ Culture   ∆ Performance

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CMI Presentation On Aligning Culture 15 Sept 2011

  • 1. Aligning Culture: Secret Weapon in Effective Change Management Sally-Anne Cotton September 2011
  • 2. Questions that Concern Change Managers How to get the buy in and support of stakeholder groups? How to keep focus in the face of “1,000” initiatives? How to identify potential roadblocks early and deal with them? How to loosen people’s attachment to old systems? How to prevent the culture killing the change? How to ensure the long term sustainability of the project? People ∆ Culture ∆ Performance
  • 3. 50 – 70% of Change or Integration Efforts Fail! IBM, 2008 Carleton and Lineberry, 2004 People ∆ Culture ∆ Performance
  • 5. The Alligator River Abigail Gregory Sinbad Ivan Slug Rank all 5 of the characters 1 = Best … or least despicable 5 = Worst … or most despicable Use each number only once
  • 6. The Alligator River Loves Gregory Abigail Asked Sinbad to take her across the river Turns to Ivan for help – to no avail Agrees to Sinbad’s terms and crosses river to Gregory Gregory Lives on opposite side of the river Casts Abigail aside with distain Agrees to take Abigail over river if she sleeps with him Sinbad Honours his word when Abigail concedes Abigail turns to Ivan with her plight Ivan He does not want to be involved at all Heartsick & dejected Abigail turns to Slug Slug Slug feels compassion for Abigail He beats Gregory brutally As sun sets we hear Abigail laughing at Gregory 1 = best / least despicable 5 = worst / most despicable
  • 7. The Challenge for Change Managers & Organisations People ∆ Culture ∆ Performance
  • 8. Triple Faceted Cultural Alignment Process Map the Map the Pulse the Culture Networks Behaviours • Cultural Alignment/ • Networks • Signature Behaviours Misalignment • Weak links • Key influencer groups • Entropy • Influence gateways • Monitor progress • Bridging values • Optimise relationships • Increase collaboration • Behaviours & integration • Build connected competence • Sustain development People ∆ Culture ∆ Performance
  • 9. Map the Culture Aligning the Winds & Currents Mapping the culture to determine the alignment between: •Personal Values & the Current Culture •Current Culture & Desired Culture •Personal Values & Desired Culture And the level & nature of what limits the team or organisation (Entropy) Identify & Embed Signature Behaviours Personal Current Desired Values Culture Culture People ∆ Culture ∆ Performance
  • 10. What Cultural Entropy Looks Like What does 46% entropy look like? Energy available for productive work Non-productive or destructive energy People ∆ Culture ∆ Performance
  • 11. The Language of Entropy Change Team Organisation bureaucracy (9) hierarchy (8) silo mentality (7) long hours (1) long hours (3) confusion (2) information hoarding (2) power (1) internal competition (6) internal competition (1) empire building (2) short-term focus (5) control (4) control (1) job insecurity (3) job insecurity (1) caution (2) exploitation (1) 4 out of 120: 4% 55 out of 120: 46% People ∆ Culture ∆ Performance
  • 12.
  • 13. Identify the Networks Aligning the Winds & Currents Identify Formal & Informal Networks. Leverage Gateways and Blockage Points Influencers and Saboteurs Trust Levels People ∆ Culture ∆ Performance
  • 14. Building the Stakeholder Influence Matrix Cohesive, Misaligned, well connected groups disconnected groups Social Network Analysis (SNA) Efficiency: Optimise relationship interfaces Effectiveness: Build connected competence Innovation: Leverage relationships to generate & implement ideas People ∆ Culture ∆ Performance
  • 15. Leveraging Stakeholder Influence Key Stakeholder Leverage The 12% most connected people Loose influenced 50% of the relationships People ∆ Culture ∆ Performance
  • 16. What People Do Screams Louder Than What They Say ‘80-90% of employee behaviour is determined by what managerial leadership attends to, measures, rewards, controls, reacts to, models and coaches.’ Towers Perrin 2004 People ∆ Culture ∆ Performance
  • 17. Pulse the Behaviours Aligning the Winds & Currents Tracking the Signature Behaviours Identifies gaps and guides personal development Reinforces positive behaviour over time 95% improve by 3rd Pulse People ∆ Culture ∆ Performance
  • 18. Pulsing Signature Behaviours Promotes Development of Others Group Individual Tri-annual trend analysis Measures hard and soft skills Tracks organisational direction / objectives Influences self directed shaping and shifting of behaviours Whole of system philosophy People ∆ Culture ∆ Performance
  • 19. Dynamic Real Time Dashboard Signature Behaviours Demonstrates Promotes Respect for Development of Contributions Others Innovate Makes Appropriately Company Proud Encourages Demonstrates Staff Cost Conscious Empowerment People ∆ Culture ∆ Performance
  • 20. Bringing It All Together Accelerate Leverage Align Behavioural Change Networks Personal Current Desired Values Culture Culture Culture People ∆ Culture ∆ Performance
  • 21. Aligning the Whole System behind the Change Personal Alignment Vision Mission Alignment Alignment Structural Alignment People ∆ Culture ∆ Performance
  • 22. The Secret Weapon of any Change - Aligning People to their New Pond People ∆ Culture ∆ Performance
  • 23. For more information Please call us on 03 8796 0796 or 0416 11 54 11 – Sally-Anne Cotton 0438 194 944 – Peter McDonald Or email info@executivealchemist.com.au People ∆ Culture ∆ Performance