There are four types of organizational culture: Control, Competence, Collaboration and Cultivation (William Schneider, The Reengineering Alternative). Navigating through the issues to where you want to be This template for a cultural maturity model is not exhaustive nor is it meant to be difficult - it was designed to be [and has proven itself to be] a very useful guide to identifying and unpacking the differing cultures and sub cultures that comprise an overall organisational culture. The best test to find out if you have done this exercise accurately - is to see how other members of your team [especially junior members] react. As emphasized throughout this chapter, culture is a product of its foundera€™s values, its history, and collective experiences. Achieving culture change is challenging, and there are many companies that ultimately fail in this mission. For the change effort to be successful, it is important to communicate the need for change to employees.
A leadera€™s vision is an important factor that influences how things are done in an organization.
Role modeling is the process by which employees modify their own beliefs and behaviors to reflect those of the leader.[396] CEOs can model the behaviors that are expected of employees to change the culture because these behaviors will trickle down to lower-level employees. Well-crafted training programs may be instrumental in bringing about culture change by teaching employees the new norms and behavioral styles. The criteria with which employees are rewarded and punished have a powerful role in determining the cultural values of an organization. Finally, the success of the culture change effort may be increased by developing new rituals, symbols, and stories.
Organizations need to change their culture to respond to changing conditions in the environment, to remain competitive, and to avoid complacency or stagnation.
What recommendations would you have for someone considering a major change of culture within their own organization? At Collective Edge, we have been working with Bill Schneider and the role of culture in organizational change since 1997.
If it is accurate and authentic then the pictures and schematics that you create and the narrative and words that you document will be instantly recognisable and "ring true". Having established a cultural template of where your organisation is now, you can determine the template of how your organisation will look after your step change initiative and clearly see the gaps between these positions. One way of doing this is to create a sense of urgency on the part of employees, explaining to them why changing the fundamental way in which business is done is so important.
For example, when Robert Iger took over Disney, to show his commitment to innovation, he personally became involved in the process of game creation, attended summits of developers, and gave feedback to programmers about the games.
For example, after the space shuttle Columbia disintegrated on reentry from a February 2003 mission, NASA decided to change its culture to become more safety sensitive and minimize decision-making errors that lead to unsafe behaviors.


Switching from a commission-based incentive structure to a straight salary system may be instrumental in bringing about customer focus among sales employees. Continental Airlines is a company that successfully changed its culture to be less bureaucratic and more team-oriented in 1990s. We are certified in the use of the CultureTek Organization Culture Indicator and the Leadership CultureLink leadership style preference inventory. In other words, organisations migrate along a clearly identifiable and predictable path as their own business development skills evolved(4) That the structured template of this cultural matrix is universal and transcends our original business development perspective -i.e.
Unfortunately, many organizations realize that their current culture constitutes a barrier against organizational productivity and performance.
In successful culture change efforts, leaders communicate with employees and present a case for culture change as the essential element that will lead the company to eventual success.
Moreover, to implement the change effort quickly and efficiently, a company may find it helpful to remove managers and other powerful employees who are acting as a barrier to change.
The change effort included training programs in team processes and cognitive bias awareness.
Moreover, by rewarding and promoting employees who embrace the companya€™s new values and promoting these employees, organizations can make sure that changes in culture have a lasting effect. One of the first things management did to show employees that they really meant to abolish many of the companya€™s detailed procedures and create a culture of empowerment was to burn the heavy 800-page company policy manual in their parking lot. Next, a change of leaders and other key players may enact change and serve as effective role models of new behavior.
Motivation to lead, motivation to follow: The role of the self-regulatory focus in leadership processes. Knowing your culture can make the difference between a mediocre or failed implementation and one that produces 100% plus productivity improvement.
Particularly when there is a mismatch between an organizationa€™s values and the demands of its environment, changing the culture becomes the key to the company turnaround.
As an example, consider the situation at IBM in 1993 when Lou Gerstner was brought in as CEO and chairman. Because of political reasons, self-interest, or habits, managers may create powerful resistance to change efforts.
In contrast, the modeling of inappropriate behavior from the top will lead to the same behavior trickling down to lower levels.


Similarly, when auto repairer Midas felt the need to change its culture to be more committed to customers, they developed a program to train employees to be more familiar with customer emotions and connect better with them.
If the company wants to develop a team-oriented culture where employees collaborate with one another, then using individual-based incentives may backfire. After decades of dominating the market for mainframe computers, IBM was rapidly losing market share to competitors, and its efforts to sell personal computersa€”the original PCa€”were seriously undercut by cheaper a€?clones.a€? In the publica€™s estimation, the name IBM had become associated with obsolescence. In such cases, replacing these positions with employees and managers giving visible support to the change effort may increase the likelihood that the change effort succeeds.
A recent example to this type of role modeling is the scandal involving Hewlett-Packard board members.
Instead, distributing bonuses to intact teams might be more successful in bringing about culture change. This action symbolized the upcoming changes in the culture and served as a powerful story that circulated among employees. Gerstner recalls that the crisis IBM was facing became his ally in changing the organizationa€™s culture.
For example, when Robert Iger replaced Michael Eisner as CEO of the Walt Disney Company, one of the first things he did was to abolish the central planning unit, which was staffed by people close to ex-CEO Eisner. In 2006, when board members were suspected of leaking confidential company information to the press, the companya€™s top-level executives hired a team of security experts to find the source of the leak.
Another early action was redecorating waiting areas and repainting all their planes, again symbolizing the new order of things.[399] By replacing the old symbols and stories, the new symbols and stories will help enable the culture change and ensure that the new values are communicated. The investigators sought the phone records of board members, looking for links to journalists. Successful culture change requires managers that are proficient at all of the P-O-L-C functions.
For this purpose, they posed as board members and called phone companies to obtain itemized home phone records of board members and journalists. When the investigatorsa€™ methods came to light, HPa€™s chairman and four other top executives faced criminal and civil charges.



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