Culture-Values Link, A practical approach

Adam Filler, com-towers ZurichMarch 2014

CULTURE-VALUES LINK

A PRACTICAL APPROACH

com-towers GmbH confidential 2

“Culture eats strategy for breakfast.” ~ attributed to Peter Drucker

“The only thing of real importance that leaders do is to create and manage culture. If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.” - Edgar Schein, professor MIT Sloan School of Management

“The thing I have learned at IBM is that culture is everything.” -Lou Gerstner, Former CEO of IBM

ORGANIZATIONS DO NOT CHANGE: PEOPLE CHANGE


Organizational culture: The way things are done around here, or What we do, when we think no one is looking

Values: Important and lasting beliefs shared by the members of a

culture about what is good or bad, desirable or undesirable Have major influence on a person’s behavior and attitude Common business values: fairness, innovations, social

responsibility

CULTURAL CHANGE AND VALUES


VALUES – BEHAVIOR LINK CASE STUDIES


A process of implementing changes across organizations Requires:

Clear strategic imperatives

Top leadership support, Project management

structure, Decisions on structural,

personnel and cultural issues

A process of adjustment to changed conditions, adoption of new behaviorsRequires:

Clarity of why change needs to happen

Understanding of personal attitude to change

Commitment to personal behavioral roadmap


2 VIEWS OF TRANSFORMATIONAL CHANGE

Organizational Personal

A survey diagnostic - The Denison Organizational Culture Model

Denison Organizational Culture survey

A diagnostic tool linking corporate culture to key business drivers

BENCHMARKS against an extensive database of companies across geographies and industries

M&A scenario: 2 companies– Value Statements

COMMITTED

OPEN

DOER

ENGAGED

We are committed to success and growth, we belong to a successful Russian company

We are committed to a XXXX way of doing things, we have joined XXXX to be part of an internationally successful company

We are open to providing information and to accepting different ways of doing things, we focus on the result and task at hand

We are open to ideas, dialogue and cooperation . We don’t want to go “back to the USSR”

Once the task is clear, we are responsible for getting the job done quickly and efficiently. We try things and make quick decisions.

We are creative, flexible, we work hard and have fun doing it

Decisions are made and communicated from the top, people are challenged to find ways to get the work done

We are people and team oriented, we interact with one another and focus on the future

Management workshops and validation

Employee focus groups

Corporate culture survey for all employees

Vision of the future

FROM the Innovation idea“We must create a culture to support innovation”

Vision х Culture =

Upgrade the culture to live our values:

Add valueShow respectMake it happen

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Our Values Our Behavior

Our values form the long-term foundation for what

be believe is right and wrong

Based on the market changes and our strategic choices we need to focus on certain behaviours to be able to perform and execute results in this changing environment

• Responsibilit

y

• Innovation

• Cooperation

• Excellence


Every organizational change requires evolution of

culture

Culture is measurable, and it can evolve in the

right direction

Values provide the starting point, living the values

is key to culture change

Organizations do not change, people change

SO WHAT?