co-operative culture management

Co-operative Culture

Management

2

Programme

1. People and organizational performance

2. The challenge

3. Culture: collective sensemaking and behaviour

4. Cultural change management process

5. Example of company analysis

6. Some findings up to now

7. The development of the ‘Levers’

PEOPLE AND ORGANIZATIONAL

PERFORMANCE

• To what extend people contribute to a competitive advantage?

• If so, How is this phenomena produced?

4

1. PEOPLE AND ORGANIZATIONAL PERFORMANCE

Organizational performance

ORGANIZATIONAL INITIATIVES

• Commitment or control people management strategies • Leadership development • Job design, etc.

People related

variables

1. PEOPLE AND ORGANIZATIONAL PERFORMANCE

Satisfaction?

Behaviour?

“Organizations do not behave, PEOPLE do”

THE CHALLENGE

• Help companies to unleash the energy of the people for the benefit of a common project maintaining the well-being of employees and the cooperative values.

• Further details: – Unleash the energy: create tension within the organization.

– Common project: not just for the benefit of the owners but for everybody within the company.

– Cooperative values: fostering cooperation and collaboration rather than internal competition.

2. THE CHALLENGE

• Energy is referred to: tension that leads people to take initiatives, to risk, to face the challenges, to work harder,…

• In short, to change to a more proactive behaviour. What is influencing the behaviour of people within the organization?

8

2. THE CHALLENGE

CULTURE: COLLECTIVE SENSEMAKING AND

BEHAVIOUR

3. CULTURE: COLLECTIVE SENSEMAKIG AND BEHAVIOUR

Introducción

• The group influences strongly the perception and behaviour of an individual since everybody has the natural need to: – Integrate in the group.

– Feel valued and progress.


Definición de cultura

• The culture for the organization is similar to the personality for the

individual.

• Culture is influencing the individual and collective behaviour within a

company.

Culture describes the behavioural norms that

have been established through the interpretation

of the “messages” about:

• “How things are done here”

• “What really is valued in this company”

• “Where we invest time and money”

When there is an inconsistency between what is

said and done, what is done always shapes the

culture.


Behaviour

Values

Basic beliefs

Norms

13

The Organization as a metaphor: If your company were an animal, which one would be? How could you change the culture of a company?


NON-VISIBLE

LEVEL

VISIBLE LEVEL

DECLARED VALUES,

MISSION AND VISION

REAL VALUES

AND BELIEFS

SOURCES OF

‘MESSAGES’

• Behaviours

• Symbols

• Systems

OPERATING

CULTURE

• Constructive

• Passive/defensive

• Passive/aggressive

RESULTS

• Individual

• Team

• Organisational

MARKET

CONDITIONS

COMPANY HISTORY

1

2

3

4

5

6

7


Symbols are the observed facts to which people attribute a meaning . e.g. office’s style, how time is used, kind of promotions, rituals, selection of people, advantages assignment, etc.

Systems are the processes to manage the activity: • Productive organisation • People management policies • Strategic and management planning, etc. 15

Leadership Behaviour

Systems Symbols

It is the most important element for cultural generation and change. Based on: • Where we invest our time

and money • What we monitor. • What decisions we make • What our relationships are

like with others

SOURCES OF MESSAGES


• These three sources of messages are the input for collective sensemaking processes.

• The result is a collective interpretation of what is going on in the company.

• This collective interpretation leads to a shared perception that shapes the behaviour of people within the company.


Examples of Leader behaviours and the Culture it produces

BEHAVIOUR OF A LEADER CULTURE IT PRODUCES

Ready to accept errors

Find out and listen to the opinions of the front line

Take coffee in the shop floor.

Say no and accept a no as an answer

Ask for punctuality and he/she always is late for the meetings

Favour one person over another for reasons not based on performance


SYSTEMS CULTURE THEY

REINFORCE

Poor performance assessment system

Alignment between reward system and performance

Few hierarchical levels, horizontality

Assessment system that takes into account the opinions of collaborators

Increase employee autonomy for decision making (and therefore responsibility) on the job

Examples of Systems and the Culture they reinforce


SYMBOLS CULTURE THEY REINFORCE

Production is stopped because of a quality problem

Team leaders dedicate time to meeting with their collaborators

Offices are physically located at the same level as the production line

Status symbols are frequent (big offices, different travel policies, …)

Clothing, managers parking, lunch time, etc

Examples of Symbols and the Culture they reinforce


20

EXERCICE: Discovering your cultural rules

Which are the rules,

tacit and explicit, that guide the behaviour in your company?


21

EXAMPLES

• Never say „no‟ to your boss

• Be respectfull

• Work many hours

• Dont‟ commit errors

• In case of doubt, take risks

• Never say „no‟ to a customer

• Be autonomous

• Be reliable

• Cover you back

• Criticize your superiors

• Be loyal to the group

• Don‟t criticize you job mate

• Think positive

• …


22

• Approval

• Risk fear

• Opposition to change

• No proactivity

• Fear to consequences

• Many regulations, slowness

• Limited

adaptability • Competitiveness, no cooperation, Aggresiveness

• Conflicts, destructive criticism, individualism

• Error punishement

• Short-term objectives achievement-oriented 22

Constructive

Passive/

Agressive

Passive/

Defensive

OPERATING CULTURE

* Cooke & Lafferty. Organizational Culture Inventory (1983)

• Customer-oriented

• Innovation-oriented, creativity and change openness

• Achievement-oriented

• Person-oriented

• Team-oriented: participation, cooperation, teamwork, win-win paradigm


CULTURAL CHANGE MANAGEMENT PROCESS

• Where we are now?

– Analysis tool.

• Where we want to go?

– Strategy and people management alignment tool.

• How are we going to progress?

– Identification and understanding of the levers (science)

– Development of the levers (tool box)

24

4. CULTURAL CHANGE MANAGEMENT PROCESS

• Act on: behaviours, systems

•Act on levers

• New symbols

• Measure success indicators

COMMUNICATION

MANAGEMENT

PROCESS

COMMITMENT

DEFINITION

DIAGNOSIS

PLANNING

IMPLEMENTATION

Define …

• Cultural model

• Values (and beleifs)

• Behaviours (Leadership

and others)

• Systems

• Expected results

4. CULTURAL CHANGE MANAGEMENT PROCESS

26

EXAMPLE OF COMPANY ANALYSIS

27

5. EXAMPLE OF COMPANY ANALYSIS

• Constructive: achievement, innovation, team, person, customer

• Passive: bureaucratic, dependent.

• Aggressive: competitive, hierarchical.

• Satisfaction • Commitment • Proactivity • Affective balance • Group extra-role

effort

MANAGEMENT LEVERS for change

COLLECTIVE BEHAVIOURS

RESULTS IN PEOPLE

• Leadership: vision, positive approach, listening, achievement motivation.

• Systems: training, information, participation, autonomy.

• Team: communication, co-operation

• Shared project: strategy, mission, vision

28 Resultados obtenidos en este ámbito. Representa la media de las puntuaciones de las personas de tu centro que han participado en la encuesta

Porcentaje de centros que se encuentran con una puntuación media superior a la obtenida en este centro de trabajo

Nº encuestas

recogidas

% de participación

17 62,96%

3,69 2,79 4,48

4,70

3,98

4,95

87% 85%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

Satisfacción Compromiso Atención Cliente

Media Centro Media Negocio Porcentaje por encima


29

3,28 3,60 4,08 3,165,20 5,30 2,80 2,10

4,18 4,20

3,77

3,05

82%

74%

37%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

Cliente Constructiva Pasiva Agresiva

Media Deseada Media Negocio Porcentaje


30

4,14 3,49 3,88 4,06 3,20 3,16 3,20 3,98 3,67 3,58 3,69 2,79 4,48

4,314,14

4,704,54

4,16

3,863,64

3,92

4,38

4,08

4,70

3,98

4,95

57%

72%76%

69%

82%

72%

64%

48%

77%

70%

87% 85%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

Visión Positividad Escucha Motivac.logro Proyecto compartido

Formación Participación Autonomía Información Equipo Satisfacción Compromiso Atenc.Cliente

LIDERAZGO PROY.COMP. SISTEMA EQUIP. RESULTADOS

Media Media Negocio Porcentaje


31

0%

29%24%

18%

41%35%

41%

0%

24% 24%

88%

59%

35%41%

41%59%

53%

94%

59%

76%

12% 12%

41% 41%

18%

6% 6% 6%

18%

0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Visión Positividad Escucha Motivac.logro Proyecto compartido

Formación Participación Autonomía Información Equipo

LIDERAZGO PROY. COMP. SISTEMA EQUIPO

Valoración BAJA Valoración MEDIA Valoración ALTA


32

IMPACTO: indica la capacidad que tiene cada elemento de gestión para potenciar la Atención al Cliente. A MAYOR INDICE, MAYOR IMPACTO.

POTENCIAL DE MEJORA: indica el porcentaje de centros que han obtenido una puntuación superior en cada elemento de gestión. A MAYOR PORCENTAJE, MAYOR POTENCIAL DE MEJORA.

Autonomía Información Participación Formación

Elementos de Sistema

Proyect. Compartido

Equipo

Liderazgo; 3,9

Proy. Comp.; 3,2

Formación; 3,2

Participación; 3,2Autonomía; 4,0

Información; 3,7

Equipo; 3,6

0

1

2

3

4

5

6

7

8

9

10

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Imp

acto

ATE

NC

IÓM

AL

CLI

ENTE

Potencial de mejora

Prioridad 3: Mantener esfuerzos

Prioridad 1: Centrar esfuerzosPrioridad 2: Reforzar esfuerzos

Prioridad 4: Analizar esfuerzos


33

SOME FINDINGS UP TO NOW

• 35 companies; 4300 employees

34

0,230,22

0,190,18

0,14

0,08

0,0621%

41%

58%

75%

87%

95%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

0,05

0,1

0,15

0,2

0,25

0,3

Impactos de las palancas percibidas en Resultados (en Industria)

Palancas

Series2

6. SOME FINDINGS UP TO NOW

35

2

3

4

5

6

2 3 4 5 6

RES

ULT

AD

OS

CO

LEC

TIV

OS

(se

gún

tra

b.)

PALANCAS IMPLANTADAS (inversión realizada según directores)

Gráfico de los Negocios de industria


36

2

3

4

5

6

2 3 4 5 6

RES

ULT

AD

OS

A N

IVEL

DE

NEG

OC

IO

PALANCAS PERCIBIDAS A NIVEL DE NEGOCIO

Percepción de palancas y Resultados de los trabajadores por Negocios


37

13

9

5

2

3

4

5

6

2 3 4 5 6

RES

ULT

AD

O C

OLE

CTI

VO

(se

gún

tra

b.)

PALANCAS IMPLANTADAS (inversión realizada según directores)

Sólo colectivos de MOD en Industria


• Sample of 26 industrial companies; 1032 employees.

38

Actual

System

Perceived

System Commitment

Absenteeism

-,39 ,74

1,03

Productivity No sign.

Perceived

System Commitment

Organizational level

Individual level

-,49

,44

-,45


• Three big group of

companies:

• Group 3: the ones that

follow a clear commtiment

strategy.

• Group 1: the ones that

follow a control strategy.

• Group 2: those in an

intermediate position.

39

Dendrogram using Ward Method

Rescaled Distance Cluster Combine

C A S E 0 5 10 15 20 25

Label Num +---------+---------+---------+---------+---------+

14

24

12

2

23

21

9

18

1

10

3

13

17

22

19

25

20

5

15

26

8

16

7

4

6

11

GROUP 1

GROUP 2

GROUP 3

COMPANY XXX


• Test of the model:

40

,35

proactividad

,74

misión_visión

Standardized estimates

1) Ajuste Absoluto:

Chi=27,601 (8 df) para p=,001

GFI=\gfi

RMSR=\rmr

RMSEA=,047

ECVI=,075

NCP=19,601

,00

palanc

,49

LIDERAZGO

,70

SISTEMA

balance_afectVariable de control:

,94

actitudes

,65

satisfacción

,58

,47

compromiso

,58

,97

,71,55

,80

,53

2) Ajuste incremental:

AGFI=\agfi

TLI=,972

NFI=,989

CFI=,992

IFI=,992

3) Ajuste de Parsimonia:

Chi Normada=27,601/8

PNFI=,283

PGFI=\pgfi


41

THE DEVELOPMENT OF THE LEVERS

• Leadership is one of the most determinant element in the generation of an organisation’s culture (the 1st Lever)

• The leadership exercised in our co-operatives has to be in line with the co-operative-constructive culture we want to strengthen

7. THE DEVELOPMENT OF THE LEVERS

43

Co-operative

Leadership

1 : Vision of the future

2 : Positive approach

3 : People- and team-oriented

4 : Promoter of change

and innovation

5 : Achieveme

nt-oriented

6 : Integrity

7 : Co-operative behaviour

model

7. CO-OPERATIVE LEADERSHIP

Architect of the business

project, passionate about

change and continuous

learning

Personally shares the

values of the Experience

and exercises his/her

power as a service

committed to people, the

company and the social

environment

Consciously

administers his/her

emotional energy in

order to achieve the

best results in

Ensures that the

business project is

responsibly shared

and carried out by

means of teamwork

In relation to others, it

behaves on the basis

of respect, trust and

integrity

Creator of positive

thinking and

references

PLANIFICACION

44

Competences and Behaviours

Training programmes

Personalised support

Communication of “best practice” in Management

Offer of Development

Personal Development Plan

Assessment conclusions

Reference Leadership Profile

7. CO-OPERATIVE LEADERSHIP (Development process)

45

Bibliography

Bibliography

• Cooke & Lafferty. Organizational Culture Inventory (1983) • Carolyn Taylor, “Walking the talk” • Fred Kofman, “Metamanagement I, II y III” • Edgard Schein, “Organizational culture and leadership” • John P. Kotter, “The heart of change” • Peter Senge, “La quinta disciplina en la práctica” • Stephen Covey, “Los 7 hábitos de la gente altamente efectiva”

• Curt Coffman y Gabriel González Molina, “¡Siga esta ruta!” • Jeanie Daniel Duck, “El monstruo del cambio” • Kevin Thomson y Almudena Rodríguez Tarodo, “El capital emocional”

• Michael Beer & Nitin Nohria, “Breaking the code of change” • J.C. Collins & J.I. Porras, « Built to last : successful habits of visionary companies », Random

House Business Books, London, 2000 • R. Kegan & L. Lahey, “How the way we talk can change the way we work. Seven languages for

transformation”, Jossey-Bass, 2000. • Beckhard R. (1992) “Changing the Essence: the Art of Creating and Leading Fundamental

Change in Organizations”. San Francisco; London: Jossey-Bass • Brooks E. (1980) “Organizational Change. The Managerial Dilemma”. London: The MacMillan

Press Ltd

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47 Liderazgo y Trabajo en Equipo

THANK YOU VERY MUCH MUCHAS GRACIAS ESKERRIK ASKO

co-operative culture management

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