The cultural aspect of change David Williams IIM National Conference 13 August 2007 David Williams IIM National Conference 13 August 2007

In scope Change management methodologies Organisational culture leveraging the culture of an organisation to manage change Building the capability to change Case studies Change management methodologies Organisational culture leveraging the culture of an organisation to manage change Building the capability to change Case studies

Out of scope IT change management how to change organizational culture IT change management how to change organizational culture

Change management Change management is a structured approach to change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state.

Change methodologies SCM = T + E ≥ S Systems thinking - Senge Organisational development – Bennis, Argyris, Drucker & Schein Lewin’s 3 step process Kotter’s 8 step model Machiavelli & Sun Tzu Storytelling - Denning SCM = T + E ≥ S Systems thinking - Senge Organisational development – Bennis, Argyris, Drucker & Schein Lewin’s 3 step process Kotter’s 8 step model Machiavelli & Sun Tzu Storytelling - Denning

Kotter’s 8 steps 1. Create a Sense of Urgency 2. Pull Together the Guiding Team 3. Develop the Change Vision and Strategy 4. Communicate for Buy-in 5. Empower Others to Act 6. Produce Short-Term Wins 7. Don’t Let Up 8. Create a New Culture 1. Create a Sense of Urgency 2. Pull Together the Guiding Team 3. Develop the Change Vision and Strategy 4. Communicate for Buy-in 5. Empower Others to Act 6. Produce Short-Term Wins 7. Don’t Let Up 8. Create a New Culture

Culture Is learned Is shared Consists of sub-cultures Is a coping mechanism Is learned Is shared Consists of sub-cultures Is a coping mechanism

culture vs change

What does culture look like? Artifacts Ceremonies Language Behaviours Stories Customs Artifacts Ceremonies Language Behaviours Stories Customs

The core of a culture lies beneath the surface Attitudes Assumptions Beliefs Values Fears Attitudes Assumptions Beliefs Values Fears

Fear Fear of not being liked Fear of the unknown Fear of not being valued Fear of not belonging Fear of losing control Fear of not being liked Fear of the unknown Fear of not being valued Fear of not belonging Fear of losing control

Using fear Defence of Britain during WWII Invasion of Iraq Children overboard Tampa incident McCarthyism Vietnam war Palmer report AIDS, drinking and smoking campaigns Defence of Britain during WWII Invasion of Iraq Children overboard Tampa incident McCarthyism Vietnam war Palmer report AIDS, drinking and smoking campaigns

Using fear Poor record keeping

Belonging Collectivism Social Identity Groupthink / bandwagon effect Herd behaviour / swarming Collective intelligence The "Hundredth Monkey Effect" Collectivism Social Identity Groupthink / bandwagon effect Herd behaviour / swarming Collective intelligence The "Hundredth Monkey Effect"

Denial Shock Frustration Acceptance Experimentation Understanding Integration COMMITMENT DENIAL RESISTANCE EXPLORATION

Stakeholder analysis Who are the key stakeholders? What is their level of influence? What threats/risks does the change pose to them? what would they need to support the change? What is the best way to engage them? Who are the key stakeholders? What is their level of influence? What threats/risks does the change pose to them? what would they need to support the change? What is the best way to engage them?

Using effective style Determining preferred style Knowledge utilisation approach Organisational Development approach Democratic approach Systems approach Charismatic leadership Determining preferred style Knowledge utilisation approach Organisational Development approach Democratic approach Systems approach Charismatic leadership

Storytelling The role of storytelling Using narrative to ignite action Building trust Instil organisational values Encouraging collaboration Transmitting knowledge Taming the grapevine Creating and sharing the vision The role of storytelling Using narrative to ignite action Building trust Instil organisational values Encouraging collaboration Transmitting knowledge Taming the grapevine Creating and sharing the vision

Springboard stories Typical and familiar Quirky, captures attention Embodies the change proposed Real examples Brief and to the point Has a happy ending Sparks new stories in the listeners Typical and familiar Quirky, captures attention Embodies the change proposed Real examples Brief and to the point Has a happy ending Sparks new stories in the listeners

Leveraging culture Don’t try to change the culture Become aware of the environment Consult and include stakeholders Build coalitions & make belonging attractive Be authentic Tell stories that resonate and enlighten Set super-ordinate goals Don’t try to change the culture Become aware of the environment Consult and include stakeholders Build coalitions & make belonging attractive Be authentic Tell stories that resonate and enlighten Set super-ordinate goals

Building capability State a shared vision Develop policy, tools and procedures Build templates and infrastructure Conduct training and tell stories Deliver quick wins Provide recognition and reward State a shared vision Develop policy, tools and procedures Build templates and infrastructure Conduct training and tell stories Deliver quick wins Provide recognition and reward

People will change when They see a need to change (not always rational) They know what is expected They are involved actively in the change process They are supported through the change process - Change can be stressful and painful Their beliefs, values and identity are not threatened They see a need to change (not always rational) They know what is expected They are involved actively in the change process They are supported through the change process - Change can be stressful and painful Their beliefs, values and identity are not threatened

References Charles W. L. Hill, and Gareth R. Jones, (2001) Strategic Management 5th Edn, Houghton Mifflin, MeansBusiness, Inc. Hofstede, G. (1980) Culture's Consequences: International Differences in Work Related Values, Beverly Hills, CA, Sage Publications Deal T. E. and Kennedy, A. A. (1982) Corporate Cultures: The Rites and Rituals of Corporate Life, Harmondsworth, Penguin Books. Handy, C.B. (1985) Understanding Organizations, 3rd Edn, Harmondsworth, Penguin Books Schein, E.H. ( ) Organizational Culture and Leadership, 3rd Ed., Jossey-Bass ISBN Black, Richard J. (2003) Organisational Culture: Creating the Influence Needed for Strategic Success, London UK, ISBN X Kotter, John Corporate Culture and Performance, Free Press; (April 7, 1992) ISBN Denning, Stephen (2205) The leader’s guide to storytelling, John Wiley and Sons Michaelson, G. A. (2001) Sun Tzu – the art of war for managers, Adams Media Corporation Silverman, L. (2006) Wake me up when the data is over, Jossey-Bass Cohne, D. and Prusak, L. (2001) In good company – how social capital makes organisations work, Harvard Business School Press Kotter, J. & H. Rathgeber, (2007) Our Iceberg is Melting – changing and succedding under any conditions, St Martins Press. Charles W. L. Hill, and Gareth R. Jones, (2001) Strategic Management 5th Edn, Houghton Mifflin, MeansBusiness, Inc. Hofstede, G. (1980) Culture's Consequences: International Differences in Work Related Values, Beverly Hills, CA, Sage Publications Deal T. E. and Kennedy, A. A. (1982) Corporate Cultures: The Rites and Rituals of Corporate Life, Harmondsworth, Penguin Books. Handy, C.B. (1985) Understanding Organizations, 3rd Edn, Harmondsworth, Penguin Books Schein, E.H. ( ) Organizational Culture and Leadership, 3rd Ed., Jossey-Bass ISBN Black, Richard J. (2003) Organisational Culture: Creating the Influence Needed for Strategic Success, London UK, ISBN X Kotter, John Corporate Culture and Performance, Free Press; (April 7, 1992) ISBN Denning, Stephen (2205) The leader’s guide to storytelling, John Wiley and Sons Michaelson, G. A. (2001) Sun Tzu – the art of war for managers, Adams Media Corporation Silverman, L. (2006) Wake me up when the data is over, Jossey-Bass Cohne, D. and Prusak, L. (2001) In good company – how social capital makes organisations work, Harvard Business School Press Kotter, J. & H. Rathgeber, (2007) Our Iceberg is Melting – changing and succedding under any conditions, St Martins Press.