New Research Insights: "Culture is the collective equivalent of mindset and determines how the collective behaves in recognised maturational patterns". This description arises from new scientific research “with unprecedented scientific depth” which transforms a dimension of organizations that is regularly cited as the critical problem behind high failure-rates for change management, strategy, etc., but so poorly understood with definitions such as “the way we do things around here”. This Masterclass offers much in new insight and methodology e.g., how any Culture can now be understood and defined as a Capability Maturity Level, and why focusing on Culture is a waste of time. Learn what to focus on for diagnosing where interventions and strategy will gain Traction, and learn the normative process that optimises Sustainability.

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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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1. Brief Intro
2. Current State of Play for Change Mgt. & Organization Development
3. Scale of the Problem around Culture
4. Introducing DSMT
5. Redefining Culture
6. Operationalizing Culture for Normative Diagnosis and Development
7. Additional Insights
8. Questions & Answers – please submit Questions during
presentation via Chat Window
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• Obvious Problems with outdated modelling of Organization and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 – 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
• Descriptive Models based on e.g., CEO opinions!!!! Etc., etc., etc.
The Problem
• Most Organisations today are challenged by
• Volatility, Uncertainty, Complexity & Ambiguity (VUCA) re. Market,
Environment, Technology Drivers, Staff Requirements, etc.
• 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 Normative 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, we can agree, 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 Change/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 limit organization (Apple II)
Patterns of Habituation and subsequent 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 of Habituation -
and positively correlated
with 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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• 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” through “Technological Anchoring” are Polaroid (see Tipsaris)
which collapsed; and Intel (see Burgelman) which turned it around!
Maturity > Culture

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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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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 natural to rationalise
defensiveness against it as part of priming 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 and causes an emotional Disorienting Dilemma
Maturity also > Culture for Change Motivation

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• Each Maturational Stage has greater appeal for either Linear or Lateral Habituation
• Linear Mindset and Culture (organizing schema is a straight line) underpin the following
Cultural Inversions:
• Neurotic Bureaucracy of 4b, Protectionism, Divisiveness of each Disintegrative Phase; 1-
Dimensionalism, Short-Termism, Solution without Diagnosis, Hierarchy, Dominance etc., of 2a;
Aggression, Exploitation, Histrionics, Narcissism of 1a, etc.
• Lateral Mindset and Culture (organizing schema is horizontal plane of points) underpin:
• Neurotic Disconnect of Growth Trajectory and Passivity of 1b; Over-Diagnosis of 1c; Multi-
Dimensionalism, archetypal Socialism, Inclusiveness and Empathy of 3c; etc.
• Note how neurotic Linearity and Laterality antagonise 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 Levels
Assertiveness > Aggression or Passivity, Rational Direction shapeing strategic 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/ Social Culture

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Destabilization or Emotive 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 Learning
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
6a Expressionist/ Innovative Culture
Personal Autonomy
Self-Expression through genuine Empowerment
Innovation
Beyond Linear
Dynamic
Engaging
Personal Ownership
Non-confrontational
Assertive, etc.
6b Autonomous Structures
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 – A Culture diagnosis would have shown people at the upper end of their sector, efficient, secure and competitive
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 personal graphic nature caused motivation for change
Remedy – HQ reacted to the diagnosis granting them to be the first in the multi-national to sell on the open market
Process – the change 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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Next Webinar 29th Apr. 2020 at 14.00GMT
The Emotional Dynamic –
Going beyond Emotional Intelligence to optimize Motivation

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