Week 10 - Organizational Culture Lecture PDF

Organizational change Hamish Stening 7 September 2022 Plan for today 1. Define what an organization is 2. Define organizational culture (as well as organizational climate) 3. Discuss how organizational culture shapes employee behaviours and experiences 4. Discuss how to change organizational cultu...

Organizational change Hamish Stening 7 September 2022 Plan for today 1. Define what an organization is 2. Define organizational culture (as well as organizational climate) 3. Discuss how organizational culture shapes employee behaviours and experiences 4. Discuss how to change organizational culture 2 What is an organization? • “A structured entity consisting of various components that interact to perform one or more functions” (American Psychological Association, n.d.) ― For example: businesses, educational institutions, governments, charities, armed forces, clubs and associations, etc. 3 What is organizational culture? • “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.” -- Edgar Schein • It is personnel’s deeply rooted shared values and beliefs. ― Manifests (and can be measured) in cognitive and behavioural patterns/expectations/norms ― It’s “the way that we do things around here” • Organizational culture is different to organizational climate: the staff perceptions of the impact of the work environment on the individual. ― “How it feels to work here” 4 How does it shape behaviours and experiences? What is the culture in this class? • What do you wear? What do you do when you first walk into the lecture hall? Do you come? • What are the “default” patterns of behaviour? 5 How does it shape behaviours and experiences? How will I perceive the situation? What outcome/end state do I desire? What behaviours are possible/allowed? What behaviours will I mimic/follow? What do I normally do? Behavioural choice What thoughts will I have about the situation? Do I have the motivation/energy? What image do I want/need to give off? 6 Who is more likely to work overtime? • Anh works at an accounting firm as an auditor. At his work: ― Employees often stay late and eat dinner at the office. ― Employees are highly motivated by deadlines. • Bernardo works at a hospital as a nurse. At his work: ― Employees leave work when the nurse that is taking the next shift relieves them. ― Employees are regularly told and firmly believe that tired nurses make mistakes. • Both love their work and the services they provide. However, who is more likely to work beyond the end of their shift/regular work day? How will I perceive the situation? What outcome/end state do I desire? What behaviours are possible/allowed? What behaviours will I mimic/follow? Behavioural choice What do I normally do? Do I have the motivation/energy? What thoughts will I have about the situation? What image do I want/need to give off? 7 Who is more likely to delay a product release? • Chimamanda works as a product designer at a tech firm. At her work: ― Employees most strongly value innovation, market agility, and achievement. • Dorine works as a product designer at a medical device company. At her work: ― Employees most strongly value providing a good customer experience and acting with integrity. • Both love their work and the products their companies sell. However, who is more likely to delay a product release when their testing reveals that 1 in 10,000 products are defective and will need to be replaced by the consumer (free of charge, of course)? How will I perceive the situation? What outcome/end state do I desire? What behaviours are possible/allowed? What behaviours will I mimic/follow? Behavioural choice What do I normally do? Do I have the motivation/energy? What thoughts will I have about the situation? What image do I want/need to give off? 8 If we want to change behaviours, we have to change the culture How will I perceive the situation? What outcome/end state do I desire? What behaviours are possible/allowed? What behaviours will I mimic/follow? Behavioural choice What do I normally do? Do I have the motivation/energy? What thoughts will I have about the situation? What image do I want/need to give off? 9 What are the things preventing change? • A limited number of potential change agents • Silo parochialism • Rules and procedures • Pressures to still hit performance outcomes • Complacency or insufficient buy-in • Long previous history/deeply entrenched culture • Conservative/risk-averse values • Previous failed initiatives • Difficult to explain/sell the benefits • Process over outcomes mindsets 10 How do we change organizational culture? • It’s really tough! • You might wish to look up different change management theories. E.g.: ― Lewin’s Change Theory – Unfreeze, change, freeze ― Kübler-Ross’ Change Curve ― Kotter’s theory of change (2002) – 8 steps ― Bridge’s transition model ― Gallup’s how to help people through change ― Nous Group’s framework (Al-Haddad & Kotnour, 2015) 11 How do we change organizational culture? • It’s really tough! • You might wish to look up different change management theories. E.g.: ― Lewin’s Change Theory – Unfreeze, change, freeze ― Kübler-Ross’ Change Curve ― Kotter’s theory of change (2002) – 8 steps ― Bridge’s transition model ― Gallup’s how to help people through change ― Nous Group’s framework (Al-Haddad & Kotnour, 2015) 12 A framework for implementing organizational change Set direction Plan the change Commit to the change Define the case for change Hold people to account Consolidate and build on results Make it stick Measure and monitor results Identify change Prepare for change agents Empower change agents Remove structural barriers Communicate change Empower people to enact change Create short-term wins Implement change 13 A framework for implementing organizational change Set direction 1. Define the case for change • What is your current culture? • • Is it effective/adaptive? What would an “ideal” culture look like? What would be the outcomes? Set direction Prepare for change Make it stick Implement change Example cultural archetype frameworks https://www.walkingthetalk.com/culture-archetypes YOU DO NOT NEED TO KNOW THESE FOR THE EXAM!!! https://sloanreview.mit.edu/culture500/research 15 Example cultural archetype frameworks YOU DO NOT NEED TO KNOW THESE FOR THE EXAM!!! https://www.bendelta.com/wp-content/uploads/2017/06/Thesix-building-blocks-of-future-culture-2.pdf 16 A framework for implementing organizational change Set direction 1. Define the case for change • What is your current culture? • • Is it effective/adaptive? What would an “ideal” culture look like? What would be the outcomes? 2. Commit to the change • You need to be committed and guarantee resources now! • Engage the head and the heart – link to strategic priorities, be able to sell the “why”, know the emotional/ethical case too Set direction Prepare for change Make it stick Implement change Commit to the change Create a big sense of strategic urgency among masses and/or strategicdecision-making executives Set direction Prepare for change Make it stick Implement change 18 A framework for implementing organizational change Set direction 1. Define the case for change • What is your current culture? • • Is it effective/adaptive? What would an “ideal” culture look like? What would be the outcomes? 2. Commit to the change • You need to be committed and guarantee resources now! • Engage the head and the heart – link to strategic priorities, be able to sell the “why”, know the emotional/ethical case too 3. Plan the change • • • Develop a vision and know how you will achieve it Make sure your plan is well-considered and detailed Select the right change team and plan stakeholder activity Set direction Prepare for change Make it stick Implement change A framework for implementing organizational change Prepare for change 1. Identify change agents • Change agents are the key individuals who promote and support the change • The most efficacious change agents are those who are liked, respected, identified with, and/or hold positions of power Set direction Prepare for change Make it stick Implement change 20 A framework for implementing organizational change Change agents could be: • Connectors: people with an above average network of friends and associates o e.g., people get lunch with lots of other employees • Mavens: people who are trustworthy in regard to their advice on ideas, products or services o e.g., the people viewed as experts/the people viewed as having well considered ideas • Salespeople: people who can convince us that something really is worth doing o e.g., passionate, charismatic people; good orators • People with reward power: people who can reward/punish behaviours o e.g., managers ~ These are the people with the most power to set and change default opinions and behaviours. You will need a mix of types ~ Set direction Prepare for change Make it stick Implement change 21 Normalize target behaviours and beliefs The best way to make change is to normalize the desired values, opinions, beliefs, and behaviours. Set direction Prepare for change Make it stick Implement change 22 A framework for implementing organizational change Schein’s (2004) primary embedding mechanisms: • What behaviours are change agents exemplifying? • What are they saying to others? • What do change agents pay attention to, measure, and control? • How do change agents allocate resources? • How do change agents allocate rewards and status? • Who (and according to what criteria) do leaders recruit, select, and promote? • What role modelling, mentoring, teaching, and/or coaching are the change agents doing? This is what members of an organization will notice. Are your change agents normalizing the target beliefs and behaviours? Set direction Prepare for change Make it stick Implement change 23 A framework for implementing organizational change Prepare for change 1. Identify change agents • Change agents are the key individuals who promote and support the change • The most efficacious change agents are those who are liked, respected, and/or hold positions of power • 2. Empower change agents Sell the change/vision to the change agents first! • Then, give them the clarity, language and opportunity to sell the change to others • Make their actions and beliefs visible to others Set direction Prepare for change Make it stick Implement change 24 A framework for implementing organizational change Carolyn Taylor: Walking the talk (2015) A change in the mindsets of leaders LEADS TO Change in the behaviour of these leaders LEADS TO Different decisions being made by these leaders in line with their new beliefs and values LEADS TO People attributing meaning to these decisions associated with a change in values LEADS TO New messages being received throughout the organization about what is now valued (supported by change enablers) LEADS TO Other people in the organization changing their behaviours to fit into the new norms LEADS TO Further reinforcement that the culture and its values have now changed LEADS TO Set direction Prepare for change Make it stick Implement change 25 New behaviours/performance outcomes (i.e., the intended effect of the chosen values) A framework for implementing organizational change Prepare for change 1. Identify change agents • Change agents are the key individuals who promote and support the change • The most efficacious change agents are those who are liked, respected, and/or hold positions of power • 2. Empower change agents Sell the change/vision to the change agents first! • Then, give them the clarity, language and opportunity to sell the change to others • Make their actions and beliefs visible to others 3. Remove structural barriers • Identify why the change will be resisted/where the change will hit snags • Remove those issues (if that is not possible, moderate them) Set direction Prepare for change Make it stick Implement change 26 A framework for implementing organizational change Implement change 1. Communicate change • • Have a detailed and strict communication plan Have a clear and consistent message Set direction Prepare for change Make it stick Implement change 27 A framework for implementing organizational change In your communication, you should provide: 1. The reason for change: o Unify employees behind a motivating vision or necessary outcome 2. How the change will be enacted: o Makes sure that the pathways are clear o Make sure the people believe that the pathway 1) is plausible; 2) is the best (/least bad) course of action; and 3) will actually achieve the desired outcomes 3. The timelines: o Make sure that people know when the implementation will occur and how long it will take ~ Make sure that all communications are consistent and easily accessible. Put the communications identically in multiple places! ~ Set direction Prepare for change Make it stick Implement change 28 A framework for implementing organizational change Implement change 1. Communicate change • • Have a detailed and strict communication plan Have a clear and consistent message 2. Empower people to enact change • Give them the motivation and rewards; remove barriers • Listen to complaints, be empathetic, and never blame the people! Set direction Prepare for change Make it stick Implement change 29 Be aware of us-versus-them thinking Make sure that you are the “us” and not the “them” Set direction Prepare for change Make it stick Implement change 30 A framework for implementing organizational change • Give carrots not sticks: o Acknowledge, highlight, and reward positive outcomes. Try to avoid punishing negative ones • Acknowledge and validate difficulties and frustrations: o Employees will get frustrated (and you will make mistakes). This is inevitable. Validate those feelings, show humility, and give confidence that issues will be addressed and resolved o Make employees feel listened to and supported • Listen to the solutions! o Your people know their own work, cognitions, and experiences better than you. The best solutions will almost always be the ones provided by them o Additionally, ensure that they feel a sense of autonomy • Unify leaders and employees behind the vision: o Issues are easier to look past/deal with if they are seen as “necessary” to achieve a greater goal Set direction Prepare for change Make it stick Implement change 31 A framework for implementing organizational change Implement change 1. Communicate change • • Have a detailed and strict communication plan Have a clear and consistent message 2. Empower people to enact change • Give them the motivation and rewards; remove barriers • Listen to complaints, be empathetic, and never blame the people! 3. Create short-term wins • Plan and deliver “low-hanging fruit” • Deliver it quickly! Set direction Prepare for change Make it stick Implement change 32 A framework for implementing organizational change What is the lowest hanging fruit? • What is the largest source of frustration for the employees? • What is the one change that can be implemented quickly to improve employee satisfaction? • What should we stop doing? • What would our employees consider meaningful or significant? • What will be highly visible to the majority of employees? Set direction Prepare for change Make it stick Implement change 33 A framework for implementing organizational change Make it stick 1. Measure and monitor results • Pre-plan your metrics and collection methodology • Plan for continued monitoring Set direction Prepare for change Make it stick Implement 34 change A framework for implementing organizational change Make it stick 1. Measure and monitor results • Pre-plan your metrics and collection methodology • Plan for continued monitoring 2. Consolidate and build on results • Recognise and reward changes • Iterate and adapt Set direction Prepare for change Make it stick Implement 35 change A framework for implementing organizational change Make it stick 1. Measure and monitor results • Pre-plan your metrics and collection methodology • Plan for continued monitoring 2. Consolidate and build on results • Recognise and reward changes • Iterate and adapt 3. Hold people to account • Tie upholding target culture to KPIs/performance metrics • Align organizational design with target culture • Conduct post-implementation review Set direction Prepare for change Make it stick Implement 36 change Recap Recap • • Organizational culture is personnel’s deeply rooted shared values and beliefs that manifest in cognitive and behavioural patterns/expectations/norms If we want to change behaviours, we need to change people’s values, beliefs, cognitions, and behavioural defaults Set direction Plan the change Commit to the change Define the case for change Hold people to account Consolidate and build on results Make it stick Measure and monitor results How will I perceive the situation? What outcome/end state do I desire? What behaviours are possible/allowed? Behavioural choice What do I normally do? Do I have the motivation/energy? Identify change Prepare for agents change Empower change agents What behaviours will I mimic/follow? What thoughts will I have about the situation? What image do I want/need to give off? Remove structural barriers Communicate change Empower people to enact change Create shortterm wins Implement change 38 How will you make a difference? • When you are in a position of power, will you enact change? • In contexts where you are/can act as a change agent, are you normalising prosocial behaviours? ― You probably don’t realise your power 39 Thank you! Note to user: Replace this image with your own.  Right click on this Placeholder box [email protected] Email: Replace image  Select image and click ‘Resize image to fit in placeholder’) Further reading • Schein, E. H. (1986). What you need to know about organizational culture. Training & Development Journal, 40(1), 30– 33. (https://cmapspublic.ihmc.us/rid=1GSGS9M3P-8BFNGMQ8Z/what%20you%20need%20to%20know%20about%20org%20culture%20schein.pdf) • Al-Haddad, S., & Kotnour, T. (2015). Integrating the organizational change literature: A model for successful change. Journal of Organizational Change Management, 28(2), 234-262. https://doi.org/10.1108/JOCM-11-2013-0215 • Appelbaum, S. H., Habashy, S., Malo, J. L., & Shafiq, H. (2012). Back to the future: revisiting Kotter's 1996 change model. Journal of Management Development, 31(8), 764-782. https://doi.org/10.1108/02621711211253231 • Stouten, J., Rousseau, D. M., & De Cremer, D. (2018). Successful organizational change: Integrating the management practice and scholarly literatures. Academy of Management Annals, 12(2), 752-788. https://doi.org/10.5465/annals.2016.0095 • https://wmbridges.com/about/what-istransition/#:~:text=The%20Bridges%20Transition%20Model%20helps,Zone%20and%20The%20New%20Beginning • https://www.gallup.com/workplace/315602/proven-change-management-principles-effectively-initiate.aspx • https://www.gallup.com/workplace/315455/proven-change-management-principles-getting-employees-board.aspx • https://www.gallup.com/workplace/349295/successful-organizational-change-needs-strong-narrative.aspx 41