organizational culture and leaders
DESCRIPTION
TRANSCRIPT
The organizational culture and leaders
An invisible force in the organisation
Warsaw, May 5th 2013
! Founder : Thomas J. Watson (1914), Thomas J. Watson Jr. T. J. Watson was a salesman and a marketer, who le< NCR to set up IBM. He felt himself as a entrepreneur and had never built a pure engineering company. ! Successors: T. Learson, F. Cary, J. Opel, J. Akers
! CharismaPc leader: Louis Gerstner (1993) Glorified markePng expert, who already had been successful in American Express, was accepted by the whole organizaPon of IBM. He did not change a culture, but reinvented it, consequently IBM regained its market posiPon.
! Michael Woodford – history
! Woodford started working in Olympus in 1981 (KeyMed)
! On September 30th, 2011 he became CEO (first not Japanese CEO in the history of Olympus)
! On October 14th, 2011 he was called off from CEO a<er the scandal with the takeover of Gyrus, but he maintained the membership of the Board of Directors In spite of working in Olympus, when he entered the circle of top execuPves, did not accept the rules of the game.
... It con(nues to insist that CEO Michael Woodford was fired for cultural differences, even a=er acknowledging that his asser(ons about exorbitant M&A fees were true...
! Jorma Jaakko Ollila (1992 -‐ 2006): CEO, who is a founder of Nokia Mobile
! Successor: Olli-‐Pekka Kallasvuo (2006)
! Current CEO: Stephen Elop (2010) Is it going to be an economic success? Are they going to regain 90% of the company value, which Nokia has lost recently?
! Founders: Steve Jobs and Steve Wozniak (1976) Engineers, who set up a company with desire to develop educaPonal products for children, user-‐friendly and funny.
! Successor: John Sculley (1986), M. Spindler, G. Amelio
! CharismaPc leader: Steve Jobs (1996) Job’s return recreated space for engineers , who were neglected by Sculley (he moved to Apple from Pepsico Co.). Jobs linked Apple’s original assumpPons with a markePng knowledge, that might have been missing previously. He created a company with the highest market value in the world.
What do they have in common?
! InternaPonal corporaPons.
! „Engineering” companies, parPcipants of the biggest infrastructural projects.
! In 2000 each of them had a division of mobile telephony, bringing profits at the whole organizaPon’s scale. To date, these divisions have been either sold or closed by each of them. Coincidence?
Is there one explanaPon to ALL presented cases?
Have you ever encountered the situaPon, that project with the best BUSINESS CASE, led by an outstanding manager has collapsed?
Why the same manager is successful in one company, while in other is considered to be a loser (like Sculley from Apple, who was classified by Conde Nast on 14th
place in the ranking of the worst CEO in the USA)
Maybe the power of the organiza,onal culture is the answer to these quesPons?
What I would like to speak about today?
! Concept of organizaPonal culture according to Prof. Schein.
! Leaders in culture creaPng, forming, developing and changing.
! Culture levels and its significance to members of the organizaPon.
! How can you assess organizaPonal culture?
! OrganizaPonal change. How can you do it more effecPvely? ! Q & A
Question
What is your first thought when someone speaks about „organizational culture”?
What is „IT”?
! Many confirm that „IT” (culture) exists, but each of them perceives „IT” completely different.
! Topic of academic discussion.
! Common used words referring to culture: ! noPceable similar behaviour among people ! norms exisPng in the organizaPon ! espoused values ! group’s philosophy ! rules of the game ! climate ! skills and experience ! thinking habits, theorePcal models, paradigms ! common meaning ! metaphors and integraPng symbols ! formal rituals and ceremonies
Artefacts What you see and what you don’t see at the first glance.
Artefacts Noticeable level of culture
! What a new member sees, hears and feels when he or she enters the organizaPon.
! Include an office’s architecture, used devices and a technology, a language, a creaPon, a style of dressing, rituals and ceremonies.
! OrganizaPonal structures and processes, moPvaPon systems, way of communicaPon, taking decisions and escalaPon of problems. ! Easy to observe, but difficult to understand why all these are, as they are.
Company beliefs and values What you see and what you don’t see at the first glance.
Espoused values Company’s beliefs and values
! Company’s mission and vision.
! Strategy, targets, philosophy.
! Managers explanaPon.
! Internal rules, procedures, audit recommendaPon. ! Business ethics code.
! May be congruent or not with the other members’ behaviour or other artefacts.
Tacit underlying assumptions What you see and what you don’t see at the first glance.
Tacit underlying assumptions
! O<en unconscious, taking for granted beliefs, percepPons, thoughts and feelings all members of the organizaPon.
! Common for the organizaPon and mutually reinforced by its members.
! Basic source of employees’ values and acPons.
! Have a tendency to be unquesPonable and nonnegoPable (they are difficult to change).
! Set of assumpPons as a whole, o<en mutually connected. Understanding one assumpPon doesn’t explain observable behaviours.
! Called the company’s DNA.
Organizational culture Formal definition proposed by Schein
Organiza,onal culture
is a model of common tacit underlying assumpPons, which a group learned during solving problems of
! external adaptaPon and ! Internal integraPon,
which was enough effecPve to be admimed as correct (proper), for that reason are told over to new members as an appropriate way of
percepPon, thinking and feeling with regard to these problems.
Worth reflecting
! About your family, ethnic and naPonal group, where you have been brought up, about educaPonal path to understand the main forces, which influenced your values and way of working.
! What groups, clubs and associaPons do you formally and informally belong to, influence your current values and norms?
! Think about your work, it’s history and tradiPon and how they relate to your values?
Considering about organizational culture, think firstly about your personality
Culture and leadership Two sides of the coin
! Leaders create culture, when they create groups and organizaPons, starPng from the first founder, who executes his own idea in his own imposed way. ! Culture once created, will define criteria of leadership.
! When organizaPonal structure becomes dysfuncPonal, primary leader’s task is to find out not working elements of exisPng culture and change them.
Culture Hierarchical
Assump,ons
ExecuPve culture (execuPve)
Finance is first focus; feeling of loneliness during decision taking; good organizaPon doesn’t need so many people; company view through reports lenses; run company by procedures, which are considered as basic tools.
Engineering/project culture (manager)
Ideal world is an elegant machine and perfect processes, which don’t need people; people are problems, because they make mistakes; work is puzzle solving.
Working culture (operator) We are the crucial company’s assets; success depends on our knowledge, skills and engagement; regardless of how perfect is our company, we face unexpected situaPons; teamwork; we depend on managers, who allocate resources, trainings and machines.
Culture Occupational
! While organizaPon grows, funcPonal departments (finance, lawyers, marketers, salesmen, technology…) create their own cultures (creaPng occupaPonal cultures).
! Differences in occupaPonal cultures are strengthen by „silos” organizaPon.
! Differences in occupaPonal cultures are most visiable in projects teams where members belong to different departments.
President
VP Sales VP Marketing VP Finance VP Administration VP Legal
Directors Directors Directors Directors Directors
Managers Managers Managers Managers Managers
Staff Staff Staff Staff Staff
Organizational culture An invisible force steering organizations
! OrganizaPonal culture is neither good nor bad. It is neutral.
! Culture can not be measured by survey, in percentage or in numbers.
! There are neither stronger nor weaker organizaPonal culture.
! The deeper organizaPonal change, the deeper cultural assumpPons (less conscious) show their power.
! At course of developing organizaPon some assumpPons become naturally dysfuncPonal. It is leaders’ task to correct them.
Organizational culture Support or brake during organizational change?
! Companies take decisions mostly on hard data.
! O<en it becomes clear just a<er creaPng new formal organizaPon, that there is a necessity to create organizaPonal culture.
! O<en during changes accompanying trainings, PR, meePngs and employee’s engagement are only superficial.
! The clue is to use to the utmost cultural elements supporPng business goal and reduce (eliminate “carriers”) those elements of culture, which hinder the changes.
Organizational change Psychologic and sociological processes
! Stage 1 Unfrozen: CreaPng moPvaPon to change ! Awareness of necessity of change ! CreaPng ”survival anxiety or guilt" ! CreaPng psychological safety during learning new things
! Stage 2 Learning new concepPons, meanings and standards ! ImitaPon and idenPficaPon with new standards ! Looking for soluPons by „try and error” approach
! Stage 3 AcceptaPon of new ideas, meanings and standards ! New idenPty acceptaPon ! New relaPons acceptaPon
source: concept according to Kurt Lewin
what leaders might take from presented concept
during organizaPonal change, company acquisiPon
or fusion?
Organizational change How to do it more effectively?
! During organizaPonal change, leaders should be aware of not only hard stuff, but also of invisible power of organizaPonal culture. ! There is neither specific strategy, nor tacPcs, that guarantee effecPveness of changes, because they depend on organizaPonal culture and should be matched each other.
! What is certain, is necessity to work on all dimensions and organizaPonal levels, depending on depth of planned changes.
! Let me propose few tools and approaches: ! Workshops on Dialog as a mean for understanding two merging or working
together parPes ! Workshop based on Schein’s agenda in order to decipher artefacts,
espoused values and underlying tacit assumpPons ! InfluencerTM method as a frame for change ! HolisPc coaching for managers and execuPves
Dialogue To really understand ourselves and the others
! DIALOG – workshop for leaders to understand the mystery of conducPng dialogue -‐ basis for cooperaPon, communicaPon, collecPve intelligence as a tool during organizaPonal changes.
! DIALOG – gr. „dia logos” –flow of meaning, creaPng the space for versaPlity, different points of view and exchanging the experience. ! Four basic pracPces of DIALOG (competence of change leaders):
! Outspoken own Voice, ! Listening, ! Respect the others, ! Suspend the assumpPons
! DIALOG Workshop:
! Dialog, debate, discussion ! Mental models impact on our behaviour ! CreaPng dialog space – to bemer understand ourselves and others ! Four pracPces by William Isaacs ! Four player system by David Kantor ! Four archetypes of leaderships -‐ convergence of energy
Organizational culture In search for culture: quick workshop
! The first step is to take a decision to reach specific business target. ! A sufficient assessment of all organizaPonal culture’s levels to achieve the goal can be done during as limle as 5 hours workshop, whilst:
! Concept of organizaPonal culture is presented. ! Artefacts are described. ! Company’s values are reminded. ! Tacit underlying assumpPons are discovered. ! Develop next steps.
! Workshop should be held by facilitator.
! Successive workshops are possible, when occupaPonal subcultures in organizaPon are strong and can relevantly affect accomplishing business goal.
InfluencerTM Do not forget any area
! A method prepared by Vital Smarts.
! Vital Smarts divided influence sources to six areas.
! Experience prompts that moPvaPonal elements are more important than possibiliPes.
Six sources of influence
InfluencerTM and organizational culture
Tacit underlying assump,ons
Values
Artefacts
Individual Social Systemic
MoPvaPon
PossibiliPes
Conclusions from analysing organizaPonal culture are input to planning acPons using InfluencerTM methodology
Leader’s support during change Holistic coaching
Coaching
Primary target of coaching is to ! raise Client’s awareness of situaPon, in which he/she is and ! analyse available alternaPves by Client himself/ herself
to empower and support Client in behaviour and avtude changing, based of his/her own discoveries, conclusions and resources. Coaching as a face to face support for execuPves :
! Management coaching ! ExecuPve coaching
Thank you
Marcin Bajda www.marcinbajda.eu
Organizational culture and leaders
An invisible force in organization