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

The cultural aspect of changeThe cultural aspect of change

David WilliamsIIM National Conference13 August 2007

David WilliamsIIM National Conference13 August 2007

In scopeIn scopeChange management

methodologiesOrganisational cultureleveraging the culture of an

organisation to manage changeBuilding the capability to changeCase studies

Change management methodologies

Organisational cultureleveraging the culture of an

organisation to manage changeBuilding the capability to changeCase studies

Out of scopeOut of scopeIT change management how to change organizational

culture

IT change management how to change organizational

culture

Change managementChange 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 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

Change methodologies

SCM = T + E ≥ SSystems thinking - SengeOrganisational development –

Bennis, Argyris, Drucker & Schein

Lewin’s 3 step processKotter’s 8 step modelMachiavelli & Sun TzuStorytelling - Denning

SCM = T + E ≥ SSystems thinking - SengeOrganisational development –

Bennis, Argyris, Drucker & Schein

Lewin’s 3 step processKotter’s 8 step modelMachiavelli & Sun TzuStorytelling - Denning

Kotter’s 8 stepsKotter’s 8 steps1. Create a Sense of Urgency2. Pull Together the Guiding Team3. Develop the Change Vision and

Strategy4. Communicate for Buy-in5. Empower Others to Act6. Produce Short-Term Wins7. Don’t Let Up8. Create a New Culture

1. Create a Sense of Urgency2. Pull Together the Guiding Team3. Develop the Change Vision and

Strategy4. Communicate for Buy-in5. Empower Others to Act6. Produce Short-Term Wins7. Don’t Let Up8. Create a New Culture

CultureCultureIs learnedIs sharedConsists of sub-culturesIs a coping mechanism

Is learnedIs sharedConsists of sub-culturesIs a coping mechanism

culture vs changeculture vs change

What does culture look like?What does culture look like?

Artifacts Ceremonies Language BehavioursStoriesCustoms

Artifacts Ceremonies Language BehavioursStoriesCustoms

The core of a culture lies beneath the surface

The core of a culture lies beneath the surface

AttitudesAssumptionsBeliefsValues

Fears

AttitudesAssumptionsBeliefsValues

Fears

FearFearFear of not being liked Fear of the unknownFear of not being valuedFear of not belongingFear of losing control

Fear of not being liked Fear of the unknownFear of not being valuedFear of not belongingFear of losing control

Using fearUsing fearDefence of Britain during WWIIInvasion of IraqChildren overboardTampa incidentMcCarthyismVietnam warPalmer reportAIDS, drinking and smoking

campaigns

Defence of Britain during WWIIInvasion of IraqChildren overboardTampa incidentMcCarthyismVietnam warPalmer reportAIDS, drinking and smoking

campaigns

Using fearUsing fear

Poor record keepingPoor record keeping

BelongingBelongingCollectivismSocial Identity Groupthink / bandwagon effectHerd behaviour / swarmingCollective intelligenceThe "Hundredth Monkey

Effect"

CollectivismSocial Identity Groupthink / bandwagon effectHerd behaviour / swarmingCollective intelligenceThe "Hundredth Monkey

Effect"

Denial

Shock

Frustration

Acceptance

Experimentation

Understanding

Integration

COMMITMENTDENIAL

RESISTANCE EXPLORATION

Stakeholder analysis

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 styleUsing effective styleDetermining preferred styleKnowledge utilisation approachOrganisational Development

approachDemocratic approachSystems approachCharismatic leadership

Determining preferred styleKnowledge utilisation approachOrganisational Development

approachDemocratic approachSystems approachCharismatic leadership

StorytellingStorytellingThe role of storytellingUsing narrative to ignite actionBuilding trustInstil organisational valuesEncouraging collaborationTransmitting knowledgeTaming the grapevineCreating and sharing the vision

The role of storytellingUsing narrative to ignite actionBuilding trustInstil organisational valuesEncouraging collaborationTransmitting knowledgeTaming the grapevineCreating and sharing the vision

Springboard storiesSpringboard storiesTypical and familiarQuirky, captures attentionEmbodies the change proposedReal examplesBrief and to the pointHas a happy endingSparks new stories in the

listeners

Typical and familiarQuirky, captures attentionEmbodies the change proposedReal examplesBrief and to the pointHas a happy endingSparks new stories in the

listeners

Leveraging cultureLeveraging cultureDon’t try to change the cultureBecome aware of the environmentConsult and include stakeholdersBuild coalitions & make belonging

attractiveBe authenticTell stories that resonate and

enlighten Set super-ordinate goals

Don’t try to change the cultureBecome aware of the environmentConsult and include stakeholdersBuild coalitions & make belonging

attractiveBe authenticTell stories that resonate and

enlighten Set super-ordinate goals

Building capabilityBuilding capabilityState a shared visionDevelop policy, tools and

proceduresBuild templates and infrastructureConduct training and tell storiesDeliver quick winsProvide recognition and reward

State a shared visionDevelop policy, tools and

proceduresBuild templates and infrastructureConduct training and tell storiesDeliver quick winsProvide recognition and reward

People will change when

People will change when

They see a need to change (not always rational)

They know what is expectedThey are involved actively in the change

processThey 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 expectedThey are involved actively in the change

processThey are supported through the change

process - Change can be stressful and painful

Their beliefs, values and identity are not threatened

ReferencesReferences 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. (1985-2005) Organizational Culture and Leadership, 3rd Ed., Jossey-

Bass ISBN 0-7879-7597-4 Black, Richard J. (2003) Organisational Culture: Creating the Influence Needed

for Strategic Success, London UK, ISBN 1-58112-211-X Kotter, John. 1992 Corporate Culture and Performance, Free Press; (April 7,

1992) ISBN 0-02-918467-3 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. (1985-2005) Organizational Culture and Leadership, 3rd Ed., Jossey-Bass ISBN 0-7879-7597-4

Black, Richard J. (2003) Organisational Culture: Creating the Influence Needed for Strategic Success, London UK, ISBN 1-58112-211-X

Kotter, John. 1992 Corporate Culture and Performance, Free Press; (April 7, 1992) ISBN 0-02-918467-3

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.