!culture and organizational change

- important insights from Edgar Schein

Niki Anandi Koulouri

22.07.16

table of contents

²  a global problem: disengaged workforces – findings of Gallup’s study (2010 – 2012)

²  culture’s role in enabling organizational change - the culture and change management survey (2013)

² what is organizational culture?

²  the organizational culture model by Edgar Schein

²  culture fundamentals – important insights from Edgar Schein

²  exploring organizational culture – an exercise

a global problem: disengaged workforces – findings of Gallup’s study (2010 – 2012)

disengaged workforces are a global problem 7 out of 10 people in organizations are not actively engaged at

work

findings from Gallup's ongoing study of the American workplace from 2010 through 2012

approaches: incentives and unique perks but none of those approaches address

the deeper issue of why employees are so disengaged

people are not doing their best work

and … that’s because of poor organizational cultures

the culture’s role in enabling organizational change - the culture and change management

survey (2013)

the culture’s role in enabling organizational change

the culture and change management survey – 2013

conducted by the Katzenbach Center at Booz & Company – Strategy & views and perspectives of 2.219 executives

http://www.strategyand.pwc.com/culture-and-change

the culture and change management survey – overview

84% believe culture is critical to business success

96% said some form of culture change is needed within the organization

51% think a major overhaul is currently needed in their culture

60% think culture is more important than strategy or operating models

only 35% think their company’s culture is effectively managed

the culture and change management survey – who is driving the change?

who IS in charge of cultural change?

59% claim that the CEO and other top leaders are currently responsible for change

14% say all employees are currently responsible for change

who Should Be responsible for culture change?

43% say the CEO and other top leaders

42% say all employees

the culture and change management survey – why doesn’t change last? -1

top reasons employees resist change

are skeptical due to past failed change efforts

do not feel involved in the change process

do not understand reasons for change

the culture and change management survey – why doesn’t change last? - 2

top barriers to change

competing priorities create change fatigue

systems, processes and incentives do not support change

the culture and change management survey – creating sustainable change -1

67% think that ‘change programs’ have a positive impact

only 54% of organizations are capable of sustainable change

the culture and change management survey – creating sustainable change -2

sustaining change

focus on a few critical behaviors with the most cultural impact

expand change capabilities beyond leadership and communication alignment

activate informal levers, such as peer networks and storytelling

what is organizational culture?

what is culture? culture … is how organizations do things!

the values, beliefs and behaviors practiced in an organization because of shared subconscious assumptions and tacit beliefs

culture is “A pattern of shared basic assumptions that the group learned as

it solved its problems that has worked well enough to be considered valid and is passed on to new members as the correct way to perceive, think, and feel

in relation to those problems.”

Edgar Schein

MIT psychology professor

‘Organizational Culture

and Leadership’

culture and ingrained assumptions tacit and below the surface

they are not easy to see or deal with although they affect everything the organization does

‘culture is not a surface phenomenon …

… it is our very core’

Edgar Schein

the organizational culture model by Edgar Schein

the organizational culture model by Edgar Schein

the Schein’s model – artifacts and behaviors

are defined as elements that sets the behavioral norms and standards in an organization

it includes the dress codes, furniture and architecture, office humor that altogether reflects the culture prevailing in an

organization

they are the visible elements that make up the corporate culture of an organization

the Schein’s model – values

values underlie and, to a large extent, determine behavior, but they are not directly observable (as behaviors are)

there may be a difference between stated and operating values

are frequently expressed through norms–characteristic attitudes and accepted behaviors

“the unwritten rules on the street”– and every employee quickly picks them up

the Schein’s model – basic assumptions

the deepest level

basic assumptions are known as the norms and behaviors that are embedded deep within the culture of an organization

these behaviors are taken for granted and very well integrated within the office dynamics that are hardly recognizable

culture fundamentals – important insights from Edgar Schein

culture is a result of what an organization has learned

from dealing with problems and

organizing itself internally

‘culture determines and limits strategy’

‘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.’

‘culture matters to the extent an organization is

adaptive’ ‘culture really only matters when there is a problem.

In the same sense, that personality only matters when things aren’t working right for you.

Otherwise it’s just there. It’s part of you.’

‘I like to think of culture to be like the lily pond.’

‘… do not oversimplify culture. It’s far more than “how we do things around here.”

‘leaders should focus on a business problem not on culture change’

‘your culture always helps or hinders problem solving’

‘solve problems …’ ‘… by identifying and resolving

associated discrepancies between values and behavior’

‘be very specific about behavior …’ ‘… how it’s impacting your problem and what is the future state of

the behavior that you want to see’

‘culture is a group phenomenon …’ ‘… engage focus groups to define

how the culture is helping or hindering work on a problem’

‘working on the solution to your business problem …’

‘… don’t focus on culture because it can be a bottomless pit. Again, get groups involved in solving problems’

change begins … ‘the evidence is mounting that real change does not begin until the organization experiences some real threat of pain

that in some way dashes its expectations or hope open to the possibility of learning.’

change and learning anxiety ‘… change creates learning anxiety’

learning anxiety can be fueled of the fear of … … loss of power/position

… temporary incompetence … subsequent punishment … loss of personal identity

… loss of group membership

‘the higher the learning anxiety is, the stronger is the resistance and the defensiveness’

‘the only way to overcome resistance is to reduce the learning anxiety

by making the learner feel “psychologically safe”

create ‘psychological safety’

communicating a compelling vision

formal training

involvement of the learner

informal training of groups

practice fields coaches and feedback

positive role model

support groups in which learning problems are discussed and consistent

systems and structures with the new way of thinking and working

‘the change goal must be defined concretely … ’

‘… in terms of the specific problem you are trying to fix, not as culture change.

The change may not be possible without cognitive redefinition whereby people will have to unlearn the former way of working to learn the new one.

This unlearning period is psychologically painful.

These new cultural elements can only be learned if the new behavior leads to

success and satisfaction.’

exploring organizational culture – an exercise

culture is like a garden

a garden needs constant care and nurturing if it is to grow and thrive

exploring organizational culture – typical behavior patterns

‘If someone came fresh to our workplace, what would particularly

strike them?’

‘How would we characterize people’s interaction in our

organization?’

exploring organizational culture – stated values

‘What do we say we value in our organization?’

‘Do we always live up to these values, or are there different values

sometimes displayed in what we do?’

exploring organizational culture –

fundamental assumptions

‘What views and attitudes do we take for granted?’

‘What assumptions underlying our work are simply not questioned?’

exploring organizational culture - reflection

‘Which aspects of our culture do we think are enabling us to innovate?’

‘Which aspects of our culture are inhibiting us or are obstacles?’

culture is not a shortcut to successful corporate change

Niki Anandi Koulouri

www.4peoplematters.com - Live Your Purpose

www.nikikoulouri.com