New research Insights into 'Organisation Culture Change' underpinned by Dynamic Systems Maturity Theory and introducing the most comprehensive model of Organisation Culture to emerge in 2020

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Masterclass-New Research Insights into
Organisation Culture
“Authentic Culture-Busting Process
through OrgCMF”
Dr. Myles Sweeney
Organisation Development Tools Institute

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• Brief Intro
• Current State of Play for Change Mgt. & Organization Development
• Scale of the Problem around Culture
• Introducing DSMT
• Redefining Culture
• Operationalizing Culture for Normative Diagnosis and Development
Agenda

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The Organisation Development Tools Institute (ODTI), Researches, Develops and Provides tools that help
organisations plan and execute Incremental, Transitional and Transformational Change, based on Organisational
Science and Dynamic Systems Maturity Theory
“Next Generation Change & Transformation Management”
ODTI
• Management, Psychology & Finance
• 30 Years advisory and consulting across sectors
• Specialities
• Organisation Learning & Psychology
• Leadership & Leadership team coaching
• Change & Transformation Management
• Organisation Problem/Opportunity Diagnosis
• Individual, Team and Organisation Development &
Performance Improvement
• Researched, Developed and Applied Dynamic Systems
Maturity Theory (DSMT)
Dr. Myles Sweeney

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• Obvious Problems with outdated modelling of Organization and
Change
• Failure Rates – Change Management (75%) (Burnes), M&A (50%). (Mc Kinsey , GE Capital, etc.)
• Agility – with 300% premium to market average, only 22% achieving it (Hamel, etc.)
• Inversion (of Learning) – with 500% discount (Spain) affects up to 52% of organizations
(McKinsey)
• Simplistic Modelling re. Complexity, Systems, Prof. William Joyce, USA
• Models with “?” as a Phase
• 5-Easy Step Modelling
• Models that appeal to Learning where there is no model of learning
• Models based on CEO opinions!!!! Etc., etc., etc.
The Problem
• Most Organisation’s today are challenged by
• Volatility, Uncertainty, Complexity & Ambiguity (VUCA) re. Market,
Environment, Technology Drivers
• This demands org’al Responsiveness, Change, Transition or Transformation

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Dynamic Systems Maturity Theory (DSMT)The Solution
Peer-Reviewed Theory of “unprecedented depth and scope”
Integrated research from Psychology, Org. Science, Economics with Systems Theory and equally valid for each
Prescribe Normative Phases of Development for Sustainability
Fully Operationalizable Process
Diagnose Maturity Level of Critical Capabilities as a base with Traction
Normative developmental process to build sustainable Agility
“Redefining Change Management and building organizations fit for the 21st century”
Newly defines and inoculates against Habituation and Inversion
Fully Researched and Completed Theory

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“Culture isn't just one aspect of the game, it is the game. In the
end, an organization is nothing more than the collective
capacity of its people to create value”
— Louis V. Gerstner, Jr., former CEO of IBM.
“Issues with Culture are the main reasons for
50% Failure rates (relative to market averages in 3 years) in M&As”
- GE Capital
“Culture eats Strategy for Breakfast”
- Peter Drucker
- Mark Fields, Ford Motors
So what of Culture!

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• Even though Culture is regularly cited as the primary cause of the high
Failure Rates in Change Management, M&As, etc.,
• It has avoided definition, modelling, operationalization, etc., until now.
• At best, it is loosely described as “the way we do things around here”
• So, any surveys and assessments that offer descriptions of prevailing
processes, behaviors, etc., are measuring Culture.
How is Culture addressed up to now?

8. The typical Elemental Approach
to Culture Change
All of these elements, either
explicitly or implicitly are addressed
by DSMT, as are the above criticisms
• Disjointed
• Assessing Symptoms rather than
causal conditions for non self-
correcting process
• No prescription re. development –
only brutal change
• No definition of Culture as Learning
System that e.g., fosters each
dimension

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Importance of a Scientific Maturity Scale
Practical &
Presentation
DSMT & Deep
Analysis
• Standard Scale for All
• Measurement against a Reference
Model (Assessment)
• Norms are established
• Comparisons & Benchmarks are
valid
• Level traits can be identified &
described.
• Practices, Behaviours, and
Performance can be classified for
levels.
• Can be applied to systems, sub-
systems and elements of the system
• Trust & Confidence

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2b Critical Divergence: Delegate to CN, Diversify from Critical Singularities, Opportunism
2a Critical Singularity: Leader takes Accountability, Establish Totem wins across Capabilities
1c Incubation: Facilitate CN in planning development of the Capability
1b Disconnect: Organize Collective Decisive Disconnect from the problem among CN
1a Regenerative Disruption: Motivate CN for Change: New Idea, Diagnostic, Disorienting Dilemma
3b Destabilization: Challenge the People, Resource Opportunities, Pilot, etc.
3a Stabilization: CN On-boards people, Manage Socio-Emotional Issues, Assess Opportunities
4a Operational Learning: Train & Develop people to grow strategic competence as far as desired
4b Formal Operations: Establish Process & Procedure to take the Capability as far as desired
5b Competitive System: Customerized Capability/System, Boundaryless System, Matrix Structures
5a Competitiveness: Energize, Benchmark Performance, Customer Care, Dynamic Learning
6b Org. Advantage: Self-Organized Teams, Collaboration, Task Forces, Enterprises, etc. as OI System
6a Advantage: Empowerment, Self-Expression, Open Innovation (OI), etc.
7b Regenerative Leadership: Cyclical Developmental Process, Spin-Offs, M&As, Joint Ventures, etc.
7a Integrative Leadership: Win-Win Leadership positioning, Authentic Leadership Style, Coaching
Generic Developmental Process through 7 Levels

11. Sample Correlations with Clinical Classifications, Theories of Natural Development & Psychological Conditions
Dynamic Systems Maturity Theory Diagnostic Statistical Manual Freud Piaget Horney Maslow
Phases/ Stages of Developmental
Learning
Clusters of Personality
Disorders
Stages of Psycho-Sexual
Development
Stages of Cognitive
Development Classifications re. Neuroses Hierarchy of Needs
Regenerative Leadership
Self Actualisation
Integretive Leadership
Creative Complexity (Creativity)
Complex Creativity
Adaptive Complexity (Complexity)
Complex Adaptivity Genital Esteem
Formal Operational Learning Formal Operations Cognitive
Operational Learning Concrete Operations
Unstable Equilibrium
Stable Equilibrium Latency
Emotional / Belonging
Reflexism / Critical Divergence Continued De-Centering
Tropism, Critical Singularity Phallic (Identification) Pre-Operations to Phase 4 Dominance / Abuser Safety
Insulation, Incubation Cluster C (Anorexia, etc.) Dependence (Move Toward) Safety
Inertia, Disconnect
Cluster A (Schizoid,
Depression, etc.) Anal Detachment (Move Away)
Absorption/ Creative Disruption
Cluster B (Narcissism,
Sociopathy, etc.) Oral
Egocentricity
Sensory Motor Stage to 1
Aggression, etc. (Move
Against)
Physiological
2 Brief Glimpses of what is meant by Unprecedented Scientific Depth

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Organisation Capability Maturity Framework (OrgCMF)
Construct
Capabilities
(BIT) Buy in Technique
(GSP) Goal Setting Process
(IIL) Integration at Individual Level
(IVO) Involvement
(MDI) Management Discipline
Information and Guidance for Change &
Transformation
www.orgcmf.com/bok

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OrgCMF™ Architecture
The Organisational System
The Modular
Classification
Dynamics are the
discreet forces that
influence the
functioning of the Org.
Construct
Capabilities are the
building blocks of
Org. Dynamics

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2b Critical Divergence: Reflexism, Chaos, Firefighting, Burnout
2a Critical Singularity: Groupthink, Mentoring, Dependence on Critical Singularities (Intel I)
1c Insulation: Failure to Launch, Paralysis through Analysis, Dependence
1b Inertia: Disconnected from the market, Obsolescence, Schizoid system
1a Black Hole: Degenerative Disruption motivating shielding of Corrupt Centre, Exploitation, Aggression
3b Destabilization: Frustrated & Disenfranchised Integrative People who degrade or leave
3a Stabilization: Socialist Culture, Niche-Bound System, Symbiotic Relationships with the marketplace
4a Operational Learning: Disjunctive Strategy, Developmentalism for its own sake, etc.
4b Formal Operations: Bureaucratic System will degrade to Dominant Leadership 2a
5b Competitive System: Customer Shapes the Capability and System degrading to 3a
5a Competitiveness: Capabilities & System degrade to being Destructively Contestual 2b
6b Org. Advantage: Failure to take charge of market (next Phase) loses Advantage (Apple I)
6a Comp. Adv.: Failure to systemize dissipates energy degrading system to Chaos 2b
7b Regenerative Leadership: Arrogance, Self-Reliance, degrading to 2a
7a Integrative Leadership: Stagnation of internal growth will destroy the organization (Apple II)
Patterns of Habituation and Degradation without Regeneration

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Table 2
The Monetary Value of DSMT Cultural Progression:
Correspondence between the progression of DSMT Phases and Cultural Types as they benefit GDP (validated across 70 nations
by Liñán & Fernandez-Serranno 2014)
DSMT Stages of Habituation
(definitive titles)
DSMT Cultures Liñán’s Cultural Values
(defining corresponding feature in brackets)
Regenerative Leadership Regenerative Eco-System Universality (Care of everything)
Integrative Leadership Everyone is a Leader Benevolence (win-win)
Creative Complexity Self-Organization, Collaborative Self-Direction
Complex Creativity Expressionist, Innovative
Adaptive Complexity Customerized
Complex Adaptive Dynamic Learning Achievement (Competitive)
Formal Learning Bureaucratic
Operational Learning Operational
Unstable Equilibrium Emotional
Stable Equilibrium Socialist Security
Reflexism Chaotic / Opportunistic Stimulation (Risk, Adventure)
Tropism Authoritarian Power
Insulation Dependent, Insulated Tradition (devotion)
Inertia Depressed, Schizoid Conformity (subordination)
Absorption Exploitative Hedonism
The most
comprehensive
classification of Cultures
maps onto the DSMT
Stages, and in the
anticipated order of
progressing Productivity
Re-Defining Culture
So, we can re-define
Culture as Stage of
Maturational Habituation

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51%
Trapped or
in Start-Up
Comfort Social
500% Discount
(Spain, 2017)Critical Authoritarian
Inversion Inverted
27%
Bureaucratic
Operational Bureaucratic Average
22%
Agile
Leadership Regenerative
300% Premium
(Hamel, 2018)
Creativity Innovative
Competitive Customerized
DSMT Maturity
Levels
DSMT Cultural
Levels
Average
Returns
Re-Defining Proportion of org’s @ each Level & Returns
Percentage of
Org’s (McKinsey 2017)

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• DSMT measures the Maturity of Critical Capabilities in an organization,
prescribing development from prevailing Levels to whatever Level is
required
• Simply assessing the behaviour, etc., provides useless Culture diagnosis – a
key error of typical change protocols surely contributing to Failure Rates
• Assess from the bottom up, stopping at the first Phase that is not evident –
the one below that - the highest sequential Phase in evidence - gives the
Maturity of the Capability or System
• Maturity gives the change/learning capacity and is where Traction lies for
Change/Developmental Interventions, given a fix for dealing with Causes
revealed in Qualitative Data as reasons for choice
• All Change must follow the DSMT process from Disruption that may be
facilitated by the DSMT diagnostic graphics
Operationalising Culture for Diagnosis and
Development

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• You are wasting your time in Management and Change Management if you
focus on Culture – the real focus has to be on Maturity
• For instance, Early Apple (pre-1997) had a Culture that was at the second-
highest Level of the Model. However, its Maturity was at the second-
lowest Level, because all of the intervening Levels of Maturation were
missing, and of them, particularly, it was actually ignoring what the
marketplace wanted.
• Little surprise then that it lost its R&D lead to an organization called
Microsoft that had these Levels in spades – especially that first basic Agility
Level marked by Dynamic Learning that learned from the marketplace
what the customer actually wanted and also responded effectively to that
need.
• Other case studies that can now be classified as Immaturity undermining
Culture are Polaroid (see Tipsaris) which collapsed and Intel (see
Burgelman) which turned it around
Maturity > Culture

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So, famous maxims like “Culture eats Strategy for breakfast” are
dangerously wide of the mark & contribute to Failure!!!
It is always Immaturity that undermines Strategy or Change
It is always Maturity that gives Org. Effectiveness and DRIVES Strategy or Change
NB: The trick is to have Maturity and Culture at the same Level
that fits organizational strategy and
is as high as possible to maximise Agility and Returns
Conclusion

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• Culture is to an organization what Mindset is to the individual
• So, not only is a typical diagnostic showing Culture Level in error for
CM/OD, but also –
• Because it is a mirror image for the people, it is easy to rationalise
defensiveness against it as a primer for need for change
• Showing a Cultural Diagnostic mirrors prevailing mindset so there is no
emotional Disorienting Dilemma - the basis for all learning and change
motivation
• On the other hand, showing Maturity Level to people – Vs Culture
Level – undermines Rationalization Defence Mechanism / Resistance
to Change that is facilitated in mirror imaging in diagnosis and causes
an emotional Disorienting Dilemma
Maturity also > Culture for Change Motivation

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• Linear Mindset and Culture (organizing schema is a straight line) underpin
Cultural Inversions such as Bureaucracy, Authoritarianism
• E.g., Neurotic Bureaucracy, Protectionism, Divisiveness, 1-Dimensionalism, Short-
Termism, Hierarchy, Dominance, Aggression, Exploitation, Histrionics, Narcissism, etc.
• Lateral Mindset and Culture (organizing schema is horizontal plane of
points) underpin Cultural Inversions such as Disconnect from Growth
Trajectory, Socialist Culture, exacerbates paralysis by analysis, etc.
• E.g., Neurotic Multi-Dimensional, Inclusiveness, Passivity, Empathy, etc.
• Note how each antagonises the other – note such bipolarization in Politics!
The 2 Fundamental Types of Immature Mindset/Cultural
Schemas & 1 Remedy – Integrative Maturation Process
Due to Personality Type, we all bias to one which persists regardless of maturity.
But Integrative Mindset/Culture grow through the Phases to high Self/Org.-Esteem
E.g., Assertiveness > Aggression or Passivity, Rational Direction & Multi-Dimensionalism, Self-Expression,
Autonomy, Win-Win positioning (not equal sharing); Executive Decision-Making, Integrative Regeneration, etc.

24. Linear and Lateral Vs Integrative Culture
Win/Lose is Contest not Competition
Lose/Lose Avoidance is Disconnect
Lose/Win Accommodation is Comfort Culture in decline
Compromise is sub-integrative disjointed
approach of Destabilization 3b and Operational 4a
Win/Win Co-operation is Integrative Leadership
Note: not really equal sharing, but enough for sustainability
Linear x 2, Lateral x 2 and Integrative x 1
Note:

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Authentic Leadership can be redefined in terms of integrative experience of each
Level of Maturation – Turnaround, Planning, Crisis Management, Delegating, On-
boarding, Procedure, Market Connections, Innovation, Collaboration, etc.
Culture and Leadership
Expressionist Culture/Maturity Level 6a is a basis for emergence of
Regenerative Leadership at all levels of system – DSMT argues case from Irish History
True Empowerment is advocated by all Leaders of Agile organizations
This occurs at the Advantage Level with Expressionist Culture – everyone is free and resourced
to express themselves as required across the barrierless system built at the previous Level
Integrative Leadership Level of organization implies “Everyone is a Leader”

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A well-known symptom
of Authoritarian Culture –
Groupthink
Critical Singularity Level 1a
N.B., Singularity can appear for any
Capability, re. Product, Technology, etc.

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Cultural Chaos as
Habituated Opportunism or
Critical Diversification
Critical Level 2b

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Comfort Zone
relative to DSMT Learning and Growth
Note aspects of earlier Phases
mixed up in Growth Zone, so better
Definition through DSMT
However, DSMT says
Fear Zone exists for each Culture
Stabilization Level 3a/
Comfort Culture

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Destabilization Culture
Frustrated desire for
Change!
In failed CM/OD the good
people are disenfranchised.
They leave or are
Assimilated – i.e., degrade.
Inevitably, the org. degrades
The org. has become bound
- by e.g., niche, symbiotic
relationship, etc., which
serves some well
But there are people who
want change
Destabilization 3b/
Comfort

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Note Relationship between Formal
Learning Zone and Competitive Zone
of actual live performance and
Dynamic Learning
In OD/CM,
this should be accommodated by Pilots
Competitive Vs Operational Cultures
Operational 4a&b
Competitiveness 5a

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Customerized Culture 5b
Competitiveness
Level 5b
Bringing good process and procedure as basis for
Dynamic Learning from the Customer and Marketplace
Environmental Scanning
Customer Intimacy
Analytics, etc.

32. Advantage 6a&b
Expressionist Culture
Self-Expression through genuine Empowerment
Self-Expression
Beyond Linear
Dynamic
Engaging
Personal Ownership
Non-confrontational
Assertive, etc.
Self-Organization
Self-Organized Teams, etc.

33. Integrative
(Leadership)
Culture 7a

34. Regenerative Culture 7b

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Case Study – NB OrgCMF as integrative platform
Client Organization – a subsidiary of a multi-national manufacturing company nationally supplying their single flagship client
Client Presenting Problem – Demoralised Senior Team. NB they would not find similar employment locally
Diagnosis – Culture was very obvious and all you would expect as Comfort Zone in a Symbiotic Relationship
Maturity – senior team & organization reflected much Critical Singularity / Inversion Level due to amount of Client oversight
Disruption – The Diagnosis was well received as making sense and its graphic nature caused motivation for change
Remedy – the Company procured permission from HQ to be the first in the multi-national to sell on the open market
Process – the process went well, e.g., with MBTI help, the marketing role was filled from within the senior team
Outcome – the Dynamic-Market strategy was profitably adopted by the multi-national, & nationally high morale is sustained

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DSMT 15
Level
Analysis
Diagnostic
Triage
Sensor
Deep
Diagnostic
OrgCMF™ Structure OrgCMF™ Assessment Levels

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Some Assessment Configuration Scenarios
Also available are ODTI Special
Configurations
• Collaboration Maturity Index
• M & A Due Diligence and Integration
ODTI Services on request
• Advisory
• Training
• OMI Deep Diagnostic Assessment
• Custom Assessment Configuration
Partners
• Consulting & Advisory
• Change & Improvement Prog. Mgmt.
• Assessment Config. & Management

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• Ahlback, K., Fahrbach, C., Muraka, M. and Salo, O. (2017). How to Create an Agile Organization. McKinsey
October Bulletin. https://www.mckinsey.com/business-functions/organization/our-insights/how-to-create-
an-agile-organization?cid=other-eml-alt-mip-mck-oth-
1804&hlkid=cb740e6503604e9795850bcde63b7bc9&hctky=1649573&hdpid=46316da6-dbee-4830-8f79-
c420d88dcad4
• Burgelman, R. A. (2004). Strategy as Vector and the Inertia of Coevolutionary Lock-in. In M. J. Tushman and
Anderson, P. (Eds.), Managing Strategic Innovation and Change: A collection of readings. Oxford. pp. 577-
604.
• Burnes, B. (2017). Managing Change. UK: Pearson Education.
• Hamel, G. and Zanini, M. (2018). The End of Bureaucracy. Harvard Business Review, Nov-Dec., 50-59.
https://hbr.org/2018/11/the-end-of-bureaucracy
• Liñán, F. and Fernandez-Serranno, J. (2014). National Culture, Entrepreneurship and Economic
Development: Different Patterns across the European Union. Small Business Economics, 42, (4), 685-701.
doi:10.1007/s11187-013-9520-x
• Spain, S., Harms, P., and Wood, D. (2016). Stress, Well-Being, and the Dark Side of Leadership. Research in
Occupational Stress and Well-being, 14, 33-59.
• Tripsas and Gavetti (2004). Capabilities, Cognition, and Inertia: Evidence from Digital Imaging. In M.
Tushman and P. Anderson (Eds.), Managing Strategic Innovation and Change. NY: Oxford University Press.
References

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Additional or Superfluous Slides

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Demonstration (Live)
• Body of Knowledge
www.orgcmf.com/bok
• Self-Assessment
www.orgcmf.com/assessment/

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Only 22% of Organizations can be described as Agile
(graphic from McKinsey, 2018)
Agility relates to the 3 highest OrgCMF Levels
Leaders must attend to developing their Organizations to
higher OrgCMF functionality across the system, to achieve
Premium Returns and succeed in Change/Development
There is a 300% premium for Agile functioning (Hamel 2018)
There is a 500% discount for the lowest OrgCMF
Level (Spain et al. 2016)
This explains Failure Rates of 75% for Change Management
Leaders must protect the organization from the natural
tendency to degrade to lower Levels by using OrgCMF’s cyclical Regenerative process
OrgCMF and Agility

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• Culture has been cited as the
main reason for failure in CM,
OD, M&As, DT, “Culture eats
Strategy for breakfast”, etc.
• Yet, there is only nebulous
definition and no operational
modelling of Culture
• This is now changed. Culture
can now be modelled and
operationalised as Level of
Habituation
• Most comprehensive analysis
of culture maps to DSMT
showing Returns & GDP
improve with DSMT Maturity
(key schemas of the different
cultures as defined by Linan in
brackets)
OrgCMF and Culture

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A Quantum Progression in Science and Practice of
OD/CM to optimise Agility & reduce Failure Rates
Dynamic Systems Maturity Theory (DSMT) is a new model with
unprecedented scientific depth and support for understanding
and improving Organisational Systems. It redefines how they
function: Why they perform at a specific level in terms of
performance and returns; The Nature of their Culture; etc.; with
operationalizable normative Diagnosis & Developmental Process.
The Organisation Capability Maturity Framework (OrgCMF™)
offers online the Body of Knowledge, Reference Model,
Techniques & Tools that enable Organisations to apply DSMT to
improve their functioning level – as Learning/Maturity Level – in
line with their aims and ambitions and to optimise the success
potential for any changes or transformation.

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• Self-Service Digital Platform (Next gen. Knowledge & Tools)
• Organisation Capability Maturity Reference Model & Framework
• Underpinned by Dynamic Systems Maturity Theory
• On-Line access to the OrgCMF™ Body of Knowledge
• On-Line user configurable Org. Capability Maturity Assessment.
• On-Line training on OrgCMF™
• Partner Network (Local Customer Support)
• Expert and Experienced OD advisors and practitioners
• Trained and certified in the application of OrgCMF™
• Provide relevant Industry, Functional & Contextual Advice & Services
• Provide Training and Services that leverage OrgCMF™
ODTI Offering – Next generation Change and Transformation
Management

49. Peter Drucker’s words, ‘In times of turmoil, the danger
lies not in the turmoil itself, but in facing it with
yesterday’s logic’.
When Deloitte recently surveyed over 14,000 CEOs across
23 industries, they found a clear complexity gap in
leadership consciousness, with leaders lacking the
necessary cognitions and skills to deal with rising
complexity.