Assessing Organizational Assessing Organizational Culture: Demystifying the Culture: Demystifying the

MysteriesMysteries

Ira Levin , Ph.DIra Levin , Ph.D..California Psychological Association ConventionCalifornia Psychological Association Convention

Division IIIDivision III

April 14, 2007April 14, 2007

Alliant International University

&

Levin Consulting Group, LLC

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Learning ObjectivesLearning Objectives

Learn what organization culture is, how it develops Learn what organization culture is, how it develops over time, and how it exerts its influence on behavior in over time, and how it exerts its influence on behavior in organizationsorganizations

Explore a framework and methodology for assessing Explore a framework and methodology for assessing an organization’s culturean organization’s culture

Practice techniques for deciphering organization Practice techniques for deciphering organization culture through the use of exercises & a case study culture through the use of exercises & a case study

Examine key learnings and successful practices from Examine key learnings and successful practices from past culture assessment effortspast culture assessment efforts

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Organization Culture: Different Ontology & Organization Culture: Different Ontology & Epistemology PerspectivesEpistemology Perspectives

Objectivity Objectivity vs.vs. Subjectivity Subjectivity

Etic Etic vs.vs. Emic Emic

GeneralizableGeneralizable vs.vs. Context SpecificContext Specific

J. Martin, (2002)

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Organization Culture: A DefinitionOrganization Culture: A Definition

The learned patterns of beliefs, information processingand sense-making shared by organizational members that influence and guide their behavior & practices.

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Organization Culture: Key Functions In Organization Culture: Key Functions In Organizational LifeOrganizational Life

Offers some stability and continuityOffers some stability and continuity

Provides sense of group identityProvides sense of group identity

Serves as an integrative & coordinating mechanism Serves as an integrative & coordinating mechanism

Reduces ambiguity & anxietyReduces ambiguity & anxiety

Provides short-hand for communication and actionProvides short-hand for communication and action

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Basic AssumptionsBasic Assumptions

Basic BeliefsMarkets

Business/ManagementWork

PeopleRelationships

Time

Basic BeliefsMarkets

Business/ManagementWork

PeopleRelationships

TimeAdapted from Schein, E. 1992

Core Values• Shoulds & Oughts

Artifacts & BehaviorCharacteristics, Norms, Practices, & Behaviors

Culture Model: Three Inter-Related Culture Model: Three Inter-Related LevelsLevels

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Culture Discovery: Individual Exercise Culture Discovery: Individual Exercise

1.1. Think of an organization you know well.Think of an organization you know well.

2.2. Jot down a few descriptors that reflect what your Jot down a few descriptors that reflect what your perception/experience of organizational life there is like.perception/experience of organizational life there is like.

3.3. Identify a few “artifacts” that are representative and/or Identify a few “artifacts” that are representative and/or expressive of the descriptors you noted.expressive of the descriptors you noted.– Norms & behaviorsNorms & behaviors– Formal practicesFormal practices– Work climateWork climate– Traditions & ceremoniesTraditions & ceremonies– Work space design/dress code/special language etc.Work space design/dress code/special language etc.

4.4. Think about what may be some foundational cultural Think about what may be some foundational cultural beliefs?beliefs?

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Culture Formation & Development Culture Formation & Development ModelModel

Founders & Early LeadersFounders &

Early Leaders

Industry & OccupationsIndustry &

Occupations

Organization LifeCycle

& History

Organization LifeCycle

& History

Larger SocialMilieu

Larger SocialMilieu

Mediating Processes

• Social Learning (Bandura, 1977)

• Social Influence/ Conformance (Sherif,1936, Festinger,1950; Asch, 1955)

• Social Exchange/ Reinforcement (Homans, 1961; Thibault & Kelley, 1959)

• Need Theory (Murray, 1938 ; McCllelland, 1961; Schutz, 1958)

Time

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Culture Assessment: Comparison of Culture Assessment: Comparison of MethodsMethods

Off-The-Shelf SurveysOff-The-Shelf Surveys

ProsProsLow cost of administrationLow cost of administration

Large sample sizesLarge sample sizes

Reliability of measuresReliability of measures

ConsConsPreconceived Preconceived categories/attributescategories/attributes

Very general & high levelVery general & high level

Fails to get at “beliefs”Fails to get at “beliefs”

Misses “dynamics” of cultureMisses “dynamics” of culture

Qualitative MethodsQualitative Methods

ProsProsObtain in-depth & nuanced viewObtain in-depth & nuanced view

Identifies culture at belief levelIdentifies culture at belief level

Identifies cultural dynamicsIdentifies cultural dynamics

ConsConsLabor intensiveLabor intensive

Smaller sample sizeSmaller sample size

Lack of consistent framework Lack of consistent framework

Reliability & validity dependent Reliability & validity dependent on inquirer skillon inquirer skill

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Culture Assessment Framework: Five Culture Assessment Framework: Five Windows Into CultureWindows Into Culture

Culture•Key Characteristics

•Behaviors•Values•Beliefs

Symbols

Leadership

Norms & Practices

Stories & Legends

Traditions &Rituals

Levin, 2000

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• There are no normatively effective or ineffective culturesThere are no normatively effective or ineffective cultures• An organization An organization isis its culture and culture is ubiquitous its culture and culture is ubiquitous• Culture is a shared belief system that can have Culture is a shared belief system that can have

contradictory sets of beliefs contradictory sets of beliefs • Cultural artifacts express & reinforce cultural beliefs and Cultural artifacts express & reinforce cultural beliefs and

require deciphering to identify these beliefsrequire deciphering to identify these beliefs• Culture develops from effects of daily problem-solving, Culture develops from effects of daily problem-solving,

issue management, and actions takenissue management, and actions taken• Interpretation of cultural patterns is best left to cultural Interpretation of cultural patterns is best left to cultural

inhabitants with assistance of an objective third party inhabitants with assistance of an objective third party (emic view)(emic view)

• You do not modify culture directly, but via changing how You do not modify culture directly, but via changing how the organization functions/operatesthe organization functions/operates

Framework: Underlying AssumptionsFramework: Underlying Assumptions

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Key Advantages Of Assessment Key Advantages Of Assessment FrameworkFramework

Inquiry not based on preconceived typologiesInquiry not based on preconceived typologies

Belief system is focus rather than artifacts or climateBelief system is focus rather than artifacts or climate

Insight can be gained about underlying culture dynamicsInsight can be gained about underlying culture dynamics

Members of social system are fully engaged in the Members of social system are fully engaged in the cultural inquiry & discoverycultural inquiry & discovery

Collective perceptions & meanings can be challenged Collective perceptions & meanings can be challenged and tested via conjoint inquiryand tested via conjoint inquiry

Ability to identify both shared and differentiated beliefsAbility to identify both shared and differentiated beliefs

Facilitates cultural awareness and learning that can Facilitates cultural awareness and learning that can serve as antecedent to changeserve as antecedent to change

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Culture Assessment: Key Culture Assessment: Key ConsiderationsConsiderations

Focus should be on discovery & not evaluationFocus should be on discovery & not evaluationWhich culture model or framework will guide the inquiry?Which culture model or framework will guide the inquiry?Who is the primary client for the assessment? Who is the primary client for the assessment? What is the client’s intention and expectations?What is the client’s intention and expectations?Who are additional stakeholders in the process? What are their Who are additional stakeholders in the process? What are their interests and how can these be attended to?interests and how can these be attended to?What is the assessment scope & your sampling strategy What is the assessment scope & your sampling strategy How will the data be used--who will see it, when, and in what form?How will the data be used--who will see it, when, and in what form?How will the data be analyzed, summarized, & reported?How will the data be analyzed, summarized, & reported?Who will manage the logistics and scheduling?Who will manage the logistics and scheduling?What is the communication strategy & plan?What is the communication strategy & plan?What are the boundaries of confidentiality/anonymity? What are the boundaries of confidentiality/anonymity? What else is going on in the organization that may affect the What else is going on in the organization that may affect the assessment or data collected?assessment or data collected?Recognize the assessment process itself is an interventionRecognize the assessment process itself is an intervention

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Culture Assessment: A Multi-Method Approach Culture Assessment: A Multi-Method Approach Combining Clinical Techniques & EthnographyCombining Clinical Techniques & Ethnography

Goal:Goal: To identify core cultural beliefs, values-in action, and keyTo identify core cultural beliefs, values-in action, and key

cultural characteristicscultural characteristics

Individual InterviewsWith

Selected Leaders

Individual InterviewsWith

Selected Leaders

Document Analysis

Document Analysis

Group InterviewsCross-Sectional Sample

Group InterviewsCross-Sectional Sample

StructuredObservation Structured

Observation

Survey Based on Preferred

Future Culture--option

Survey Based on Preferred

Future Culture--option

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Leadership Window: Exploratory AreasLeadership Window: Exploratory Areas

How leaders define successHow leaders define success

Significant learning events in leaders’ livesSignificant learning events in leaders’ lives

Personal heroesPersonal heroes

Key challenges overcome and lessons learnedKey challenges overcome and lessons learned

Legacy to leave behindLegacy to leave behind

What drives their decision-makingWhat drives their decision-making

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Norms & Practices Window: Exploratory Norms & Practices Window: Exploratory AreasAreas

What newcomers need to learn quicklyWhat newcomers need to learn quickly

Biggest mistake or “taboos”Biggest mistake or “taboos”

How people learn about organizational newsHow people learn about organizational news

What people What people really really are rewarded forare rewarded for

Beliefs & values underlying:Beliefs & values underlying:– Goals, priorities, & strategiesGoals, priorities, & strategies– Decision-making processesDecision-making processes– Planning & resource allocationPlanning & resource allocation– CommunicationsCommunications– HR practices/policiesHR practices/policies

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Stories & Legends Window: Exploratory Stories & Legends Window: Exploratory AreasAreas

Folklore & oral traditions Folklore & oral traditions – Heroic effortsHeroic efforts– Rule breaking incidentsRule breaking incidents– Crises encountered & responded toCrises encountered & responded to– Notable success stories & key blundersNotable success stories & key blunders

Attributes of “heroes” & other identified role modelsAttributes of “heroes” & other identified role models

Focus on determining “moral” or “message” of storyFocus on determining “moral” or “message” of story

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Traditions & Rituals Window: Traditions & Rituals Window: Exploratory AreasExploratory Areas

Rites of initiation or passageRites of initiation or passage

Rites of enhancement & renewalRites of enhancement & renewal

Rites of recognition & celebrationRites of recognition & celebration

Rites of play & integrationRites of play & integration

Various work related or management ritualsVarious work related or management rituals

Deal & Kennedy, 1982Trice & Beyer, 1986

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Symbols Window: Exploratory AreasSymbols Window: Exploratory Areas

Organizational logosOrganizational logos

Marketing slogansMarketing slogans

Office space design & décorOffice space design & décor

Position titlesPosition titles

Dress codesDress codes

Special language/jargonSpecial language/jargon

Historical symbolsHistorical symbols

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Key Documents For ReviewKey Documents For Review

Annual & quarterly performance reportsAnnual & quarterly performance reports

Mission & values statementsMission & values statements

Strategic plans & goalsStrategic plans & goals

Performance metricsPerformance metrics

Operating budgets & capital investment plansOperating budgets & capital investment plans

Human resources policies & practicesHuman resources policies & practices

Management & employee communicationsManagement & employee communications

Governance protocolsGovernance protocols

Organization charts & job profilesOrganization charts & job profiles

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Interview Sample: LeadershipInterview Sample: Leadership

How do you define success?How do you define success?

How do you view the markets & customers you serve?How do you view the markets & customers you serve?

What were some significant “learning moments” for you What were some significant “learning moments” for you in your life/career?in your life/career?

Who are your personal heroes? What attributes do Who are your personal heroes? What attributes do you most admire?you most admire?

What legacy would you like to leave behind?What legacy would you like to leave behind?

What drives how you make key decisions?What drives how you make key decisions?

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Structured ObservationStructured Observation

How is office/work space configured?How is office/work space configured?

What is the “feel” of office/work space?What is the “feel” of office/work space?

What patterns or themes characterize office décor?What patterns or themes characterize office décor?

How do people interact and congregate?How do people interact and congregate?

How is information communication and in what formsHow is information communication and in what forms

How is the ‘work-day” definedHow is the ‘work-day” defined

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Group Interview ExampleGroup Interview Example

How is success defined? How is success defined?

What do newcomer’s need to learn quickly to be successful?What do newcomer’s need to learn quickly to be successful?

What is most valued and appreciated here?What is most valued and appreciated here?

What is the biggest mistake someone could make here?What is the biggest mistake someone could make here?

Who are considered to be organizational “heroes?” What are the key Who are considered to be organizational “heroes?” What are the key attributes or qualities displayed?attributes or qualities displayed?

What stories are told about heroic efforts, major What stories are told about heroic efforts, major achievements/blunders, crises, etc.? (achievements/blunders, crises, etc.? (moral/messagemoral/message))

What are examples of ongoing traditions & ceremonies: rites of What are examples of ongoing traditions & ceremonies: rites of initiation, renewal, celebration, integration, work etc. initiation, renewal, celebration, integration, work etc.

Inquiry based on observation & document review: marketing Inquiry based on observation & document review: marketing

slogans, language, logos, titles, work space design, etcslogans, language, logos, titles, work space design, etc..

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Examples of Cultural BeliefsExamples of Cultural Beliefs

You need to listen to your customers to learn their expectations & needs

Size provides safety and sustainability

Formal structures/processes inhibit agility & speed

Debate & critique of ideas leads to better solutions

People are fundamentally trustworthy & well-intentioned

Relationships are what drive effective work

Decisions should be made closest to where the work is performed

Being a quick adopter is wiser than being the pioneer

Innovations should be “piloted” or tested before implemented

Innovations do not occur with taking some risks

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Key Cultural ExpressionsKey Cultural ExpressionsInclusiveness and welcoming of others Inclusiveness and welcoming of others

Tolerance for mistakes and generous chances to self-correctTolerance for mistakes and generous chances to self-correct

Flat & decentralized management structure with minimal central Flat & decentralized management structure with minimal central controls or standardized processescontrols or standardized processes

Formal rewards/recognition for initiative and new serviced Formal rewards/recognition for initiative and new serviced development/formation of strategic alliances etc.development/formation of strategic alliances etc.

Desire to probe and learn from different points of viewDesire to probe and learn from different points of view

Highly collaborative decision-making processesHighly collaborative decision-making processes

Large percentage resource allocations to employee developmentLarge percentage resource allocations to employee development

““Acorn” folklore & stories of individual contributionsAcorn” folklore & stories of individual contributions

Core Cultural Belief: “Each person is Core Cultural Belief: “Each person is unique and can make a difference”unique and can make a difference”

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Core Cultural Belief: “Growth Ensures Core Cultural Belief: “Growth Ensures Vitality & Survival”Vitality & Survival”

Key Cultural ExpressionsKey Cultural ExpressionsSuccess equated primarily with growth goal achievementSuccess equated primarily with growth goal achievementAll employees know growth goals and performance to goalsAll employees know growth goals and performance to goalsHistory of successive mergers & acquisitionsHistory of successive mergers & acquisitionsSenior level position, Senior level position, SVP, Mergers & AcquisitionsSVP, Mergers & AcquisitionsLarge resource allocations to sales & marketingLarge resource allocations to sales & marketingUse of military metaphors & analogies Use of military metaphors & analogies – ““Market conquests” “markets as battlefields,& “grab and hold” marketsMarket conquests” “markets as battlefields,& “grab and hold” markets– All senior executives expected to read various historical leadership All senior executives expected to read various historical leadership

biographiesbiographies

Ceremonies that celebrate revenue/sales achievements & initiativeCeremonies that celebrate revenue/sales achievements & initiativeStories about “beating competitors” & “making deals”Stories about “beating competitors” & “making deals”Large portion of executive pay tied to stock performanceLarge portion of executive pay tied to stock performance

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Deciphering Cultural Beliefs Exercise Deciphering Cultural Beliefs Exercise

Pair up with 1-2 colleagues:Pair up with 1-2 colleagues:Senior executive offices on top floor Senior executive offices on top floor Address senior executives by “Mr.” or “Ms.”Address senior executives by “Mr.” or “Ms.”Steep hierarchy and several layers of managementSteep hierarchy and several layers of managementExecutive parking lot with reserved spacesExecutive parking lot with reserved spacesHigh deference to authority & politeness in meetingsHigh deference to authority & politeness in meetingsEmphasis on rigorous planning and very careful analysisEmphasis on rigorous planning and very careful analysisValue placed on punctuality, working long hours, loyalty to one’s Value placed on punctuality, working long hours, loyalty to one’s boss, not making mistakes, specialized expertiseboss, not making mistakes, specialized expertiseFormal business attireFormal business attireOffice decorated with photos & portraits of founder, founder’s family, Office decorated with photos & portraits of founder, founder’s family, and early leadersand early leadersTraditional, ornate, dark toned furniture & late 19Traditional, ornate, dark toned furniture & late 19 thth century century paintings/artpaintings/art

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Culture Discovery Exercise: Group Culture Discovery Exercise: Group DiscussionDiscussion

1.1. Go back to the list you generated earlier e.g. Go back to the list you generated earlier e.g. descriptors, artifacts, etc.descriptors, artifacts, etc.

2.2. Share your list & any useful contextual information with Share your list & any useful contextual information with your colleaguesyour colleagues

3.3. Discuss what may be some operating core cultural Discuss what may be some operating core cultural beliefsbeliefs

4.4. Solicit input, feedback, and ideas from your colleagues.Solicit input, feedback, and ideas from your colleagues.

5.5. Discuss how you might go about investigating your Discuss how you might go about investigating your these beliefs further. these beliefs further.

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Case Study 40-45 MinutesCase Study 40-45 Minutes

Form small groups & read case study individuallyForm small groups & read case study individuallyDiscuss the questions posed at the end & develop a Discuss the questions posed at the end & develop a plan for conducting your culture assessment of the two plan for conducting your culture assessment of the two organizations. organizations. – What are some of your initial impressions/formative What are some of your initial impressions/formative

hypotheses about the two organization cultures?hypotheses about the two organization cultures?– What is the scope of your assessmentWhat is the scope of your assessment– What data would you like to collect & from whom?What data would you like to collect & from whom?– What structured observation would you like to perform?What structured observation would you like to perform?– What challenges do you anticipate? How might you manage What challenges do you anticipate? How might you manage

these?these?

Select spokesperson to present highlights of your Select spokesperson to present highlights of your discussion and assessment plandiscussion and assessment plan

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Culture Assessment: Learnings To DateCulture Assessment: Learnings To Date

Assessment purpose needs to be well-definedAssessment purpose needs to be well-defined

Communication with organization is important throughout the processCommunication with organization is important throughout the process

Culture is a very personal thing –expect emotional reactions to Culture is a very personal thing –expect emotional reactions to culture assessment feedbackculture assessment feedback

Culture assessment needs to be descriptive and appreciative rather Culture assessment needs to be descriptive and appreciative rather than evaluativethan evaluative

Focus on uncovering underlying beliefs—surface manifestations may Focus on uncovering underlying beliefs—surface manifestations may be deceiving—search for patternsbe deceiving—search for patterns

Broad cross-sectional sampling increases perceived credibility of the Broad cross-sectional sampling increases perceived credibility of the data and helps identify existence of sub-culturesdata and helps identify existence of sub-cultures

Approach produces high density data—perform data analysis along Approach produces high density data—perform data analysis along the way, distill into summary form, & partition data feedback sessionsthe way, distill into summary form, & partition data feedback sessions

Distill learnings and implications to inform focused actionDistill learnings and implications to inform focused action

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