The organizational culture andleadersAn invisible force in the organisationWarsaw, May 5th 2013
! Founder : Thomas J. Watson (1914), Thomas J. Watson Jr. T. J. Watson was a salesman and a marketer, who le< NCR to set up IBM. He felt himself as a entrepreneur and had never built a pure engineering company. ! Successors: T. Learson, F. Cary, J. Opel, J. Akers ! CharismaPc leader: Louis Gerstner (1993) Gloriﬁed markePng expert, who already had been successful in American Express, was accepted by the whole organizaPon of IBM. He did not change a culture, but reinvented it, consequently IBM regained its market posiPon.
! Michael Woodford – history ! Woodford started working in Olympus in 1981 (KeyMed) ! On September 30th, 2011 he became CEO (ﬁrst not Japanese CEO in the history of Olympus) ! On October 14th, 2011 he was called oﬀ from CEO a<er the scandal with the takeover of Gyrus, but he maintained the membership of the Board of Directors In spite of working in Olympus, when he entered the circle of top execuPves, did not accept the rules of the game. ... It con(nues to insist that CEO Michael Woodford was ﬁred for cultural diﬀerences, even a=er acknowledging that his asser(ons about exorbitant M&A fees were true...
! Jorma Jaakko Ollila (1992 -‐ 2006): CEO, who is a founder of Nokia Mobile ! Successor: Olli-‐Pekka Kallasvuo (2006) ! Current CEO: Stephen Elop (2010) Is it going to be an economic success? Are they going to regain 90% of the company value, which Nokia has lost recently?
! Founders: Steve Jobs and Steve Wozniak (1976) Engineers, who set up a company with desire to develop educaPonal products for children, user-‐friendly and funny. ! Successor: John Sculley (1986), M. Spindler, G. Amelio ! CharismaPc leader: Steve Jobs (1996) Job’s return recreated space for engineers , who were neglected by Sculley (he moved to Apple from Pepsico Co.). Jobs linked Apple’s original assumpPons with a markePng knowledge, that might have been missing previously. He created a company with the highest market value in the world.
What do they have in common? ! InternaPonal corporaPons. ! „Engineering” companies, parPcipants of the biggest infrastructural projects. ! In 2000 each of them had a division of mobile telephony, bringing proﬁts at the whole organizaPon’s scale. To date, these divisions have been either sold or closed by each of them. Coincidence?
Is there one explanaPon to ALL presented cases? Have you ever encountered the situaPon, that project with the best BUSINESS CASE, led by an outstanding manager has collapsed? Why the same manager is successful in one company, while in other is considered to be a loser (like Sculley from Apple, who was classiﬁed by Conde Nast on 14th place in the ranking of the worst CEO in the USA) Maybe the power of the organiza,onal culture is the answer to these quesPons?
What I would like to speak about today?! Concept of organizaPonal culture according to Prof. Schein. ! Leaders in culture creaPng, forming, developing and changing. ! Culture levels and its signiﬁcance to members of the organizaPon. ! How can you assess organizaPonal culture? ! OrganizaPonal change. How can you do it more eﬀecPvely? ! Q & A
QuestionWhat is your first thought when someonespeaks about „organizational culture”?
What is „IT”?! Many conﬁrm that „IT” (culture) exists, but each of them perceives „IT” completely diﬀerent. ! Topic of academic discussion. ! Common used words referring to culture: ! noPceable similar behaviour among people ! norms exisPng in the organizaPon ! espoused values ! group’s philosophy ! rules of the game ! climate ! skills and experience ! thinking habits, theorePcal models, paradigms ! common meaning ! metaphors and integraPng symbols ! formal rituals and ceremonies
ArtefactsWhat you see and what you don’t see at the first glance.
ArtefactsNoticeable level of culture! What a new member sees, hears and feels when he or she enters the organizaPon. ! Include an oﬃce’s architecture, used devices and a technology, a language, a creaPon, a style of dressing, rituals and ceremonies. ! OrganizaPonal structures and processes, moPvaPon systems, way of communicaPon, taking decisions and escalaPon of problems. ! Easy to observe, but diﬃcult to understand why all these are, as they are.
Company beliefs and valuesWhat you see and what you don’t see at the first glance.
Espoused valuesCompany’s beliefs and values! Company’s mission and vision. ! Strategy, targets, philosophy. ! Managers explanaPon. ! Internal rules, procedures, audit recommendaPon. ! Business ethics code. ! May be congruent or not with the other members’ behaviour or other artefacts.
Tacit underlying assumptionsWhat you see and what you don’t see at the first glance.
Tacit underlying assumptions! O<en unconscious, taking for granted beliefs, percepPons, thoughts and feelings all members of the organizaPon. ! Common for the organizaPon and mutually reinforced by its members. ! Basic source of employees’ values and acPons. ! Have a tendency to be unquesPonable and nonnegoPable (they are diﬃcult to change). ! Set of assumpPons as a whole, o<en mutually connected. Understanding one assumpPon doesn’t explain observable behaviours. ! Called the company’s DNA.
Organizational cultureFormal definition proposed by ScheinOrganiza,onal culture is a model of common tacit underlying assumpPons, which a group learned during solving problems of ! external adaptaPon and ! Internal integraPon, which was enough eﬀecPve to be admimed as correct (proper), for that reason are told over to new members as an appropriate way of percepPon, thinking and feeling with regard to these problems.
Worth reflecting! About your family, ethnic and naPonal group, where you have been brought up, about educaPonal path to understand the main forces, which inﬂuenced your values and way of working. ! What groups, clubs and associaPons do you formally and informally belong to, inﬂuence your current values and norms? ! Think about your work, it’s history and tradiPon and how they relate to your values? Considering about organizational culture, think firstly about your personality
Culture and leadershipTwo sides of the coin! Leaders create culture, when they create groups and organizaPons, starPng from the ﬁrst founder, who executes his own idea in his own imposed way. ! Culture once created, will deﬁne criteria of leadership. ! When organizaPonal structure becomes dysfuncPonal, primary leader’s task is to ﬁnd out not working elements of exisPng culture and change them.
CultureHierarchicalAssump,ons ExecuPve culture (execuPve) Finance is ﬁrst focus; feeling of loneliness during decision taking; good organizaPon doesn’t need so many people; company view through reports lenses; run company by procedures, which are considered as basic tools. Engineering/project culture (manager) Ideal world is an elegant machine and perfect processes, which don’t need people; people are problems, because they make mistakes; work is puzzle solving. Working culture (operator) We are the crucial company’s assets; success depends on our knowledge, skills and engagement; regardless of how perfect is our company, we face unexpected situaPons; teamwork; we depend on managers, who allocate resources, trainings and machines.
CultureOccupational! While organizaPon grows, funcPonal departments (ﬁnance, lawyers, marketers, salesmen, technology…) create their own cultures (creaPng occupaPonal cultures). ! Diﬀerences in occupaPonal cultures are strengthen by „silos” organizaPon. ! Diﬀerences in occupaPonal cultures are most visiable in projects teams where members belong to diﬀerent departments. PresidentVP Sales VP Marketing VP FinanceVPAdministrationVP LegalDirectors Directors Directors Directors DirectorsManagers Managers Managers Managers ManagersStaff Staff Staff Staff Staff
Organizational cultureAn invisible force steering organizations! OrganizaPonal culture is neither good nor bad. It is neutral. ! Culture can not be measured by survey, in percentage or in numbers. ! There are neither stronger nor weaker organizaPonal culture. ! The deeper organizaPonal change, the deeper cultural assumpPons (less conscious) show their power. ! At course of developing organizaPon some assumpPons become naturally dysfuncPonal. It is leaders’ task to correct them.
Organizational cultureSupport or brake during organizational change?! Companies take decisions mostly on hard data. ! O<en it becomes clear just a<er creaPng new formal organizaPon, that there is a necessity to create organizaPonal culture. ! O<en during changes accompanying trainings, PR, meePngs and employee’s engagement are only superﬁcial. ! The clue is to use to the utmost cultural elements supporPng business goal and reduce (eliminate “carriers”) those elements of culture, which hinder the changes.
Organizational changePsychologic and sociological processes! Stage 1 Unfrozen: CreaPng moPvaPon to change ! Awareness of necessity of change ! CreaPng ”survival anxiety or guilt" ! CreaPng psychological safety during learning new things ! Stage 2 Learning new concepPons, meanings and standards ! ImitaPon and idenPﬁcaPon with new standards ! Looking for soluPons by „try and error” approach ! Stage 3 AcceptaPon of new ideas, meanings and standards ! New idenPty acceptaPon ! New relaPons acceptaPon source: concept according to Kurt Lewin
what leaders might take from presented concept during organizaPonal change, company acquisiPon or fusion?
Organizational changeHow to do it more effectively?! During organizaPonal change, leaders should be aware of not only hard stuﬀ, but also of invisible power of organizaPonal culture. ! There is neither speciﬁc strategy, nor tacPcs, that guarantee eﬀecPveness of changes, because they depend on organizaPonal culture and should be matched each other. ! What is certain, is necessity to work on all dimensions and organizaPonal levels, depending on depth of planned changes. ! Let me propose few tools and approaches: ! Workshops on Dialog as a mean for understanding two merging or working together parPes ! Workshop based on Schein’s agenda in order to decipher artefacts, espoused values and underlying tacit assumpPons ! InﬂuencerTM method as a frame for change ! HolisPc coaching for managers and execuPves
DialogueTo really understand ourselves and the others! DIALOG – workshop for leaders to understand the mystery of conducPng dialogue -‐ basis for cooperaPon, communicaPon, collecPve intelligence as a tool during organizaPonal changes. ! DIALOG – gr. „dia logos” –ﬂow of meaning, creaPng the space for versaPlity, diﬀerent points of view and exchanging the experience. ! Four basic pracPces of DIALOG (competence of change leaders): ! Outspoken own Voice, ! Listening, ! Respect the others, ! Suspend the assumpPons ! DIALOG Workshop: ! Dialog, debate, discussion ! Mental models impact on our behaviour ! CreaPng dialog space – to bemer understand ourselves and others ! Four pracPces by William Isaacs ! Four player system by David Kantor ! Four archetypes of leaderships -‐ convergence of energy
Organizational cultureIn search for culture: quick workshop! The ﬁrst step is to take a decision to reach speciﬁc business target. ! A suﬃcient assessment of all organizaPonal culture’s levels to achieve the goal can be done during as limle as 5 hours workshop, whilst: ! Concept of organizaPonal culture is presented. ! Artefacts are described. ! Company’s values are reminded. ! Tacit underlying assumpPons are discovered. ! Develop next steps. ! Workshop should be held by facilitator. ! Successive workshops are possible, when occupaPonal subcultures in organizaPon are strong and can relevantly aﬀect accomplishing business goal.
InfluencerTMDo not forget any area! A method prepared by Vital Smarts. ! Vital Smarts divided inﬂuence sources to six areas. ! Experience prompts that moPvaPonal elements are more important than possibiliPes. Six sources of inﬂuence
InfluencerTM and organizational cultureTacit underlying assump,ons Values Artefacts Individual Social Systemic MoPvaPon PossibiliPes Conclusions from analysing organizaPonal culture are input to planning acPons using InﬂuencerTM methodology
Leader’s support during changeHolistic coachingCoaching Primary target of coaching is to ! raise Client’s awareness of situaPon, in which he/she is and ! analyse available alternaPves by Client himself/ herself to empower and support Client in behaviour and avtude changing, based of his/her own discoveries, conclusions and resources. Coaching as a face to face support for execuPves : ! Management coaching ! ExecuPve coaching
Thank youMarcin Bajdawww.marcinbajda.euOrganizational culture and leadersAn invisible force in organization