Diagnosing and Changing Organizational Culture Chapters 5 - 7

1. 1 Diagnosing and Changing Organizational Culture Chapters 5 - 7 Amanda Pine Dave Schuld Kevin Russo Marsha Parker

2. 2 Overview Provide a framework for implementing a change process. Foster cultural transformation Align personal managerial behavior with cultural change Purpose of book Purpose of book

3. 3 Chapters 1-4 Summary Chapter 1: Need for organizational change Chapter 2: Organizational Culture Assessment Instrument Chapter 3: Competing Values Framework Chapter 4: Constructing Organizational Culture Profile Summarize key points from Chapters 1-4Summarize key points from Chapters 1-4

4. 4 Chapter 5: Using the Framework Tool used to diagnose and initiate change Identifies what needs to be changed Relies on dialogue among individuals Identifies key characteristics of a culture (Don�t read the slide) In Chapter 5, 6 main steps are utilized to diagnose change necessary in an organization and how proceed. (Don�t read the slide) In Chapter 5, 6 main steps are utilized to diagnose change necessary in an organization and how proceed.

5. 5 Initiating Organizational Culture Change

6. 6 Step 1 is to reach consensus on the current culture. First identify team members and have them complete the OCAI (Organizational Culture Assessment Instrument) for the same area/organization. Group meetings should be used, possibly even dividing into teams to form a consensus. Ultimately the individual and group ratings are compiled to determine the current cultural assessment. Step 2: During the process to determine the desired future culture, ensure that questions such as �What will our company need to be successful in the future� are raised to ensure that the future culture does not reflect the current culture, as well as keeping the analysis realistic. All individual viewpoints should be explored as evidence and explanations can be helpful. **This may be a good chance to get group involvement by asking the class about where their organizations fit into the quadrants and if they see a need to change to another type. The Clan Culture: Org that focuses on internal maintenance with flexibility, concern for people, and sensitivity to customers (like Southwest Airlines) The Adhocracy Culture: An organization that focuses on external positioning with a high degree of flexibility, individuality, and innovation (3M) The Hierarchy Culture: Focuses on internal maintenance with a need for stability and control (banks) The Market Culture: An org that focuses on external positioning with a need for stability and control � this org is results-oriented and competitive. Leaders are tough and demanding Step 1 is to reach consensus on the current culture. First identify team members and have them complete the OCAI (Organizational Culture Assessment Instrument) for the same area/organization. Group meetings should be used, possibly even dividing into teams to form a consensus. Ultimately the individual and group ratings are compiled to determine the current cultural assessment. Step 2: During the process to determine the desired future culture, ensure that questions such as �What will our company need to be successful in the future� are raised to ensure that the future culture does not reflect the current culture, as well as keeping the analysis realistic. All individual viewpoints should be explored as evidence and explanations can be helpful. **This may be a good chance to get group involvement by asking the class about where their organizations fit into the quadrants and if they see a need to change to another type. The Clan Culture: Org that focuses on internal maintenance with flexibility, concern for people, and sensitivity to customers (like Southwest Airlines) The Adhocracy Culture: An organization that focuses on external positioning with a high degree of flexibility, individuality, and innovation (3M) The Hierarchy Culture: Focuses on internal maintenance with a need for stability and control (banks) The Market Culture: An org that focuses on external positioning with a need for stability and control � this org is results-oriented and competitive. Leaders are tough and demanding

7. 7 Step 3: This is where the assessment gap performed in steps 1 and 2 is analyzed to determine what attributes should either increase, decrease, or remain constant. This form can be used to determine in each quadrant what specific attributes will change. Step 3: This is where the assessment gap performed in steps 1 and 2 is analyzed to determine what attributes should either increase, decrease, or remain constant. This form can be used to determine in each quadrant what specific attributes will change.

8. 8 Key values and principles of the organization can be seen in action Desired values are emphasized to new as well as existing employees * Don�t read slide word for word! Step 4: Culture can best be communicated to the team in the form of stories which highlight examples of the behaviors and values that the organization values. Examples would be stories of exceptional customer service or how new innovations were discovered. These not only define the culture, but reinforce the values. Identifying stores can help the team to further understand their current organizational culture further as the lessons learned and moral of the stories are explored. ** Note � ask class if their companies have any stories that highlight organizational values. * Don�t read slide word for word! Step 4: Culture can best be communicated to the team in the form of stories which highlight examples of the behaviors and values that the organization values. Examples would be stories of exceptional customer service or how new innovations were discovered. These not only define the culture, but reinforce the values. Identifying stores can help the team to further understand their current organizational culture further as the lessons learned and moral of the stories are explored. ** Note � ask class if their companies have any stories that highlight organizational values.

9. 9 Step 5: The strategic action plan highlights the actions necessary to move the culture from current to desired state. This form is a continuation of the information that has been gathered previously in Step 4. The following guidelines can be used: -Identify small wins and celebrate publicly -Generate coalitions of supporters -Set targets for accountability -Provide information and public celebrations to discourage rumors and foster support -Measure important criteria -Create readiness by showing advantages of change and providing resources -Ensure that communication emphasized �why� the change is needed to avoid resistance -Ensure that the change is reflected in the organization�s core processes to ensure that it endures Step 5: The strategic action plan highlights the actions necessary to move the culture from current to desired state. This form is a continuation of the information that has been gathered previously in Step 4. The following guidelines can be used: -Identify small wins and celebrate publicly -Generate coalitions of supporters -Set targets for accountability -Provide information and public celebrations to discourage rumors and foster support -Measure important criteria -Create readiness by showing advantages of change and providing resources -Ensure that communication emphasized �why� the change is needed to avoid resistance -Ensure that the change is reflected in the organization�s core processes to ensure that it endures

10. 10 Creating an implementation plan ensures that the change process will occur. Teams and task forces can be used to tackle critical themes or change targets. A variation of the Seven S model that we have been using in class can be used as a guide, which include structure, symbols, systems, staff, strategy, style of leaders and managers. The alignment of the change process in each of these S�s is critical. An example of Xerox�s implementation plan can be seen here. Creating an implementation plan ensures that the change process will occur. Teams and task forces can be used to tackle critical themes or change targets. A variation of the Seven S model that we have been using in class can be used as a guide, which include structure, symbols, systems, staff, strategy, style of leaders and managers. The alignment of the change process in each of these S�s is critical. An example of Xerox�s implementation plan can be seen here.

11. 11 Chapter 6: Individual Change as a Key to Culture Change Step 1: Critical Management Skills for each quadrant type Step 2: Management Skills Assessment Instrument Step 3: Comparing Individual MSAI results to ideal Critical Management Skills Individual change is critical to the success of an organization�s cultural change. Critical Management Skills are broken down for each of the quadrant types. When individual managers complete the MSAI assessment they can compare their strengths and weaknesses to what managerial skills are required for effectively managing specific organizational cultures. Individual change is critical to the success of an organization�s cultural change. Critical Management Skills are broken down for each of the quadrant types. When individual managers complete the MSAI assessment they can compare their strengths and weaknesses to what managerial skills are required for effectively managing specific organizational cultures.

12. 12 Step 5: The strategic action plan highlights the actions necessary to move the culture from current to desired state. This form is a continuation of the information that has been gathered previously in Step 4. The following guidelines can be used: -Identify small wins and celebrate publicly -Generate coalitions of supporters -Set targets for accountability -Provide information and public celebrations to discourage rumors and foster support -Measure important criteria -Create readiness by showing advantages of change and providing resources -Ensure that communication emphasized �why� the change is needed to avoid resistance -Ensure that the change is reflected in the organization�s core processes to ensure that it endures Step 5: The strategic action plan highlights the actions necessary to move the culture from current to desired state. This form is a continuation of the information that has been gathered previously in Step 4. The following guidelines can be used: -Identify small wins and celebrate publicly -Generate coalitions of supporters -Set targets for accountability -Provide information and public celebrations to discourage rumors and foster support -Measure important criteria -Create readiness by showing advantages of change and providing resources -Ensure that communication emphasized �why� the change is needed to avoid resistance -Ensure that the change is reflected in the organization�s core processes to ensure that it endures

13. 13 Management Skills Assessment Instrument (MSAI) The MSAI survey is used to analyze individual management skills. The manager rate themselves, along with a sampling of peers, subordinates, and superiors in order to achieve 360degree feedback. These categories are associated with the four quadrants, which allows managers to see where their strengths and weaknesses lie in different organizational cultures. Because actual values vary based on biases, this feedback is best used to identify extremely high or low percentiles to see where improvement is needed. With this technique, individual managerial effectiveness can be increased by focusing on improvement in specific competencies. Especially critical is the next step, when the organizational preferred profile is compared to the personal management skills profile. This allows the manager to see what individual improvement needs to be made in order to move with the company to the preferred future state culture. * Discussion question - has anyone in the class taken a MSAI survey? The MSAI survey is used to analyze individual management skills. The manager rate themselves, along with a sampling of peers, subordinates, and superiors in order to achieve 360degree feedback. These categories are associated with the four quadrants, which allows managers to see where their strengths and weaknesses lie in different organizational cultures. Because actual values vary based on biases, this feedback is best used to identify extremely high or low percentiles to see where improvement is needed. With this technique, individual managerial effectiveness can be increased by focusing on improvement in specific competencies. Especially critical is the next step, when the organizational preferred profile is compared to the personal management skills profile. This allows the manager to see what individual improvement needs to be made in order to move with the company to the preferred future state culture. * Discussion question - has anyone in the class taken a MSAI survey?

14. 14 Diagnosis: Complete Organizational Culture Assessment Compute organizational culture profile (current and desired) Hold a discussion regarding culture Compare profiles of current and desired Chapter 7: A Condensed Formula for Organizational Culture Change Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change. Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change.

15. 15 Interpretation: Plot each question on OCAI Draw conclusions Identify what culture changes need to occur Identify what it means and what it does not mean Reach consensus on which actions should be started Chapter 7: A Condensed Formula for Organizational Culture Change Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change. Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change.

16. 16 Implementation: Identify a few key steps that can be implemented right away Design a communication strategy Identify the various aspects of the organization that must be changed (Seven S�s) Personalize the culture change Assist team members in identifying personal changes that will support the culture change Chapter 7: A Condensed Formula for Organizational Culture Change Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change. Cultural change can become necessary depending on the organization�s environment. Change initiatives such as downsizing, Total Quality Management, Six Sigma, and teamwork will fail if the organizational culture conflicts with these initiatives. The diagnosis, interpretation, and implementation steps outlined in this book provide an excellent roadmap for successful cultural change.

17. 17 Discussion questions What are the steps for charting organizational culture change? (pg.90) How will the OCAI instrument assist in facilitating and implementing a cultural change? (pg.83) What are the four cultural types that can exist in an organization? (pg.94)