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culture and organizational change - important insights from Edgar Schein

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culture and organizational change - important insights from Edgar Schein

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culture and organizational change - important insights from Edgar Schein

  1. 1. ! culture and organizational change - important insights from Edgar Schein Niki Anandi Koulouri 22.07.16
  2. 2. table of contents ²  a global problem: disengaged workforces – findings of Gallup’s study (2010 – 2012) ²  culture’s role in enabling organizational change - the culture and change management survey (2013) ²  what is organizational culture? ²  the organizational culture model by Edgar Schein ²  culture fundamentals – important insights from Edgar Schein ²  exploring organizational culture – an exercise
  3. 3. a global problem: disengaged workforces – findings of Gallup’s study (2010 – 2012)
  4. 4. disengaged workforces are a global problem 7 out of 10 people in organizations are not actively engaged at work findings from Gallup's ongoing study of the American workplace from 2010 through 2012
  5. 5. approaches: incentives and unique perks but none of those approaches address the deeper issue of why employees are so disengaged
  6. 6. people are not doing their best work and … that’s because of poor organizational cultures
  7. 7. the culture’s role in enabling organizational change - the culture and change management survey (2013)
  8. 8. the culture’s role in enabling organizational change the culture and change management survey – 2013 conducted by the Katzenbach Center at Booz & Company – Strategy & views and perspectives of 2.219 executives http://www.strategyand.pwc.com/culture-and-change
  9. 9. the culture and change management survey – overview 84% believe culture is critical to business success 96% said some form of culture change is needed within the organization 51% think a major overhaul is currently needed in their culture 60% think culture is more important than strategy or operating models only 35% think their company’s culture is effectively managed
  10. 10. the culture and change management survey – who is driving the change? who IS in charge of cultural change? 59% claim that the CEO and other top leaders are currently responsible for change 14% say all employees are currently responsible for change who Should Be responsible for culture change? 43% say the CEO and other top leaders 42% say all employees
  11. 11. the culture and change management survey – why doesn’t change last? -1 top reasons employees resist change are skeptical due to past failed change efforts do not feel involved in the change process do not understand reasons for change
  12. 12. the culture and change management survey – why doesn’t change last? - 2 top barriers to change competing priorities create change fatigue systems, processes and incentives do not support change
  13. 13. the culture and change management survey – creating sustainable change -1 67% think that ‘change programs’ have a positive impact only 54% of organizations are capable of sustainable change
  14. 14. the culture and change management survey – creating sustainable change -2 sustaining change focus on a few critical behaviors with the most cultural impact expand change capabilities beyond leadership and communication alignment activate informal levers, such as peer networks and storytelling
  15. 15. what is organizational culture?
  16. 16. what is culture? culture … is how organizations do things! the values, beliefs and behaviors practiced in an organization because of shared subconscious assumptions and tacit beliefs
  17. 17. culture is “A pattern of shared basic assumptions that the group learned as it solved its problems that has worked well enough to be considered valid and is passed on to new members as the correct way to perceive, think, and feel in relation to those problems.” Edgar Schein MIT psychology professor ‘Organizational Culture and Leadership’
  18. 18. culture and ingrained assumptions tacit and below the surface they are not easy to see or deal with although they affect everything the organization does
  19. 19. ‘culture is not a surface phenomenon … … it is our very core’ Edgar Schein
  20. 20. the organizational culture model by Edgar Schein
  21. 21. the organizational culture model by Edgar Schein
  22. 22. the Schein’s model – artifacts and behaviors are defined as elements that sets the behavioral norms and standards in an organization it includes the dress codes, furniture and architecture, office humor that altogether reflects the culture prevailing in an organization they are the visible elements that make up the corporate culture of an organization
  23. 23. the Schein’s model – values values underlie and, to a large extent, determine behavior, but they are not directly observable (as behaviors are) there may be a difference between stated and operating values are frequently expressed through norms–characteristic attitudes and accepted behaviors “the unwritten rules on the street”– and every employee quickly picks them up
  24. 24. the Schein’s model – basic assumptions the deepest level basic assumptions are known as the norms and behaviors that are embedded deep within the culture of an organization these behaviors are taken for granted and very well integrated within the office dynamics that are hardly recognizable
  25. 25. culture fundamentals – important insights from Edgar Schein
  26. 26. culture is a result of what an organization has learned from dealing with problems and organizing itself internally
  27. 27. ‘culture determines and limits strategy’
  28. 28. ‘the only thing of real importance that leaders do is to create and manage culture’ ‘If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.’
  29. 29. ‘culture matters to the extent an organization is adaptive’ ‘culture really only matters when there is a problem. In the same sense, that personality only matters when things aren’t working right for you. Otherwise it’s just there. It’s part of you.’
  30. 30. ‘I like to think of culture to be like the lily pond.’ ‘… do not oversimplify culture. It’s far more than “how we do things around here.”
  31. 31. ‘leaders should focus on a business problem not on culture change’
  32. 32. ‘your culture always helps or hinders problem solving’
  33. 33. ‘solve problems …’ ‘… by identifying and resolving associated discrepancies between values and behavior’
  34. 34. ‘be very specific about behavior …’ ‘… how it’s impacting your problem and what is the future state of the behavior that you want to see’
  35. 35. ‘culture is a group phenomenon …’ ‘… engage focus groups to define how the culture is helping or hindering work on a problem’
  36. 36. ‘working on the solution to your business problem …’ ‘… don’t focus on culture because it can be a bottomless pit. Again, get groups involved in solving problems’
  37. 37. change begins … ‘the evidence is mounting that real change does not begin until the organization experiences some real threat of pain that in some way dashes its expectations or hope open to the possibility of learning.’
  38. 38. change and learning anxiety ‘… change creates learning anxiety’
  39. 39. learning anxiety can be fueled of the fear of … … loss of power/position … temporary incompetence … subsequent punishment … loss of personal identity … loss of group membership
  40. 40. ‘the higher the learning anxiety is, the stronger is the resistance and the defensiveness’
  41. 41. ‘the only way to overcome resistance is to reduce the learning anxiety by making the learner feel “psychologically safe”
  42. 42. create ‘psychological safety’ communicating a compelling vision formal training involvement of the learner informal training of groups practice fields coaches and feedback positive role model support groups in which learning problems are discussed and consistent systems and structures with the new way of thinking and working
  43. 43. ‘the change goal must be defined concretely … ’ ‘… in terms of the specific problem you are trying to fix, not as culture change. The change may not be possible without cognitive redefinition whereby people will have to unlearn the former way of working to learn the new one. This unlearning period is psychologically painful. These new cultural elements can only be learned if the new behavior leads to success and satisfaction.’
  44. 44. exploring organizational culture – an exercise
  45. 45. culture is like a garden a garden needs constant care and nurturing if it is to grow and thrive
  46. 46. exploring organizational culture – typical behavior patterns ‘If someone came fresh to our workplace, what would particularly strike them?’ ‘How would we characterize people’s interaction in our organization?’
  47. 47. exploring organizational culture – stated values ‘What do we say we value in our organization?’ ‘Do we always live up to these values, or are there different values sometimes displayed in what we do?’
  48. 48. exploring organizational culture – fundamental assumptions ‘What views and attitudes do we take for granted?’ ‘What assumptions underlying our work are simply not questioned?’
  49. 49. exploring organizational culture - reflection ‘Which aspects of our culture do we think are enabling us to innovate?’ ‘Which aspects of our culture are inhibiting us or are obstacles?’
  50. 50. culture is not a shortcut to successful corporate change
  51. 51. Niki Anandi Koulouri www.4peoplematters.com - Live Your Purpose www.nikikoulouri.com

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