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Organizational culture and leaders


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Organizational culture and leaders

  1. 1. The organizational culture andleadersAn invisible force in the organisationWarsaw, May 5th 2013
  2. 2. !    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.    
  3. 3. !    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...  
  4. 4. !    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?  
  5. 5. !    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.  
  6. 6. 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?  
  7. 7. 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?  
  8. 8. 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  
  9. 9. QuestionWhat is your first thought when someonespeaks about „organizational culture”?
  10. 10. 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    
  11. 11. ArtefactsWhat you see and what you don’t see at the first glance.
  12. 12. 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.  
  13. 13. Company beliefs and valuesWhat you see and what you don’t see at the first glance.
  14. 14. 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.  
  15. 15. Tacit underlying assumptionsWhat you see and what you don’t see at the first glance.
  16. 16. 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.  
  17. 17. 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.  
  18. 18. 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  
  19. 19. 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.  
  20. 20. 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.  
  21. 21. 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
  22. 22. 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.  
  23. 23. 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.  
  24. 24. 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  
  25. 25. what  leaders  might  take  from  presented  concept      during  organizaPonal  change,    company  acquisiPon    or  fusion?    
  26. 26. 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  
  27. 27. 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  
  28. 28. 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.  
  29. 29. 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  
  30. 30. 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  
  31. 31. 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      
  32. 32. Thank youMarcin Bajdawww.marcinbajda.euOrganizational culture and leadersAn invisible force in organization