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2. Historical Royal Palaces – Culture Presentation on „Culture“ on the set case study „Historic Royal Palaces“ See notes of this file for accompanying script to presentation slides • ANDiDAS.COM

3. Introduction – Analysis – Recommendations – Conclusion Perspective Past 19thCentury 20thCentury 21st Century 1525: Hampton Court built 1838: Hampton Court made accessible to Public 1998: HRP becomes self financing charitable trust 1076: Tower of London built 1622: Banqueting House finished 1631: Kew Palace built 1689: Kensington bought 1989: HRP Agency part of the Government 2003: Today Spiritual and military leadership Performance culture Making profit from history Civil service culture Not the sameresources available

4. Introduction – Analysis – Recommendations – Conclusion Gap Analysis Target Our Vision: We will be the world leader in the care, management and presentation of historic buildings, contents and grounds Potential to improve elements of Business Excellence/enablers and results Management capability needs to be strengthened: =improved performance culture =better coordination and faster decision making =planning, people and project management GAP HRP is heavily reliant on visitor revenue; a more balanced mix will offer greater security and sustained funding of charitable goals Encouraging performance in the first year of the HRP corporate plan: =performed on plan =key milestones achieved and major projects progressed on-track =operating surplus ahead of plan Adapted from Coppin & Barratt, 2002 Achieved HRP benefits from a number of world-leading capabilities: =conservation of buildings and contents =preservation and interpretation =innovative education programmes

5. Introduction – Analysis – Recommendations – Conclusion Objectives Performance enhancing Organisational Culture for HRP in the market context HRP Organisational Culture Market Environment New CEO source: authors‘ own estimate Change Process

6. Introduction – Analysis – Recommendations – Conclusion The Cultural Web soft factors hard factors source: Johnson & Scholes, 2002

7. Introduction – Analysis – Recommendations – Conclusion Culture Change i • Post 1998 • Stories • Hampton Court Ghost • Symbols • Ceteris paribus • Less individual palace identity • Status & Dignity Pre 1998 • Stories • Ivory tower • Symbols • Uniforms • Curators‘ language • Business language • Palace identity/ Offices location • Royal & Status & Dignity complemented with information from Coppin & Barratt, 2002, p.181-211

8. Introduction – Analysis – Recommendations – Conclusion Culture Change ii • Rituals & Routines • Ceteris paribus • Training/workshops • Reduced dept rivalry/ cultural divide through centralisation; „there is no they, only us“ • Commerce side emphasised, Cost con-sciousness established • Conflicting visions/mission of Conserv./ Marketing remain • 11 people in IT • Rituals & Routines • Loyalty of staff, committed, despite low pay • Commercialisation vs. Conservation • Palace/Dept subcultures • Rivalry between departments/ sites • No creative engine, no innovation/ initiative • No information technology • Cross subsidisation complemented with information from Coppin & Barratt, 2002, p.181-211

9. Introduction – Analysis – Recommendations – Conclusion Culture Change iii • Power Structures • Ceteris paribus • Less power with conservation, more power with marketing dept • Better communication with stakeholders & unions • Control Systems • Ceteris paribus • Performance pay • Power Structures • Conservation Dept (Ivory Tower) • Lack of trust between Management – Trustees – DCMS – Unions • Old fashioned relations with unions • Control Systems • Comparator Organisations, „Standing Clearance Agreement“ • No consistent performance management sytem complemented with information from Coppin & Barratt, 2002, p.181-211

10. Introduction – Analysis – Recommendations – Conclusion Culture Change iv • Organisational Structure • Hierarchical, decentralisation (Palace) • Strong informal networks, Poor communication processes • Organisation structure anomalies (HR, Finance Retail, Conservation) • Organisational Structure • Ceteris paribus • Hierarchical, more centralised • Greater openness, better lateral communication • Organisationanomalies resolved, Single conservation dept, etc. complemented with information from Coppin & Barratt, 2002, p.181-211

11. Introduction – Analysis – Recommendations – Conclusion Culture Change v • Status & dignity • Charity, Govt Body • Dept & Palace subcultures • Commerce vs. Conservation • Informal networks pre 1998 post 1998 Performance Culture (in progress) Civil-Service Culture • Status & dignity • Self financed charity • centralisation • Commerce, Customer oriented • Open communication

12. Introduction – Analysis – Recommendations – Conclusion Constraint or Enabler? Post 1998 Symbols +Uniforms -Status & dignity Stories +Hampton Court Ghost Routines & Rituals +IT +Loyalty -Subcultures -Lack of creativity Paradigm + participation, more „us“ -Conflicting mission between depts Power Structures +Openness +Communication Organisational Structures +Anomalies resolved, suitable structure in place/ planned Control Systems +Performance pay

13. Introduction – Analysis – Recommendations – Conclusion Culture Theory Invisible Harder to Change Soft factors Stories Symbols Routines & Rituals Shared Values Group Behaviour Norms Hard factors Power Strutures Organisational Structures Control Systems Visible Easier to Change

14. Introduction – Analysis – Recommendations – Conclusion Forcefield Analysis • Forces for changes • Self-financed • Competing in the market/ Competition • Environment, 9/11, etc. • Forces against changes • Tradition, status & dignity • Complacency

15. Introduction – Analysis – Recommendations – Conclusion Changing Constraints • Constraints • Subcultures • Conflicting vision/mission between Conservation and Retail/Marketing • Lack of creativity, initiative • Status & dignity confines HRP to top-end market, in an volatile environment • Enablers • Eliminate subcultures (group/ team/ company activities) cross team working • Establish single vision for entire company - Alternative: outsource conservation/ Commerce • Reward creativity & initiative • Status & dignity are difficult to resolve, because part of the nature of HRP

16. Introduction – Analysis – Recommendations – Conclusion Overcoming Resistance to Change • Use internal employees as “agents of change” • New CEO‘s experience with conservation beneficial • Implement changes slowly, small steps or incremental, in accordance with workforce • Clear communication, education and trust building & Participation and Collaboration

17. Introduction – Analysis – Recommendations – Conclusion Managing Paradoxes • Conflict of mission between Conservation & Marketing • Conflict between Commerce & Charity arms of organisation • Manage carefully

18. Introduction – Analysis – Recommendations – Conclusion Disclaimer • Only secondary research possible • “All models are wrong, but some are useful” • Culture is not an exact science • Culture is constantly changing, every individual is different • Leadership must be flexible • Other models are not mutually exclusive • Recommendations are suggestions/ guidelines, not definitive

19. Introduction – Analysis – Recommendations – Conclusion Conclusion • Turn constraints into enablers – as far as possible, maintain/ improve enablers • Status & Dignity • Subculture • Manage Paradoxes to reduce negative effects • Otherwise, don‘t alter current culture change process • new CEO‘s different background • Have single, common vision

20. Introduction – Analysis – Recommendations – Conclusion Further Reading: • Coppin, Alan and Barratt, John. 2002. Timeless Management. Hampshire: Palgrave Macmillan • Kotter, John and Heskett, James. 1992. Corporate Culture and Performance. New York: Free Press

21. Introduction – Analysis – Recommendations – Conclusion Questions ?