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Welcome to the webinar on developing and measuring organizational culture March 5th, 2014 We will start at 12.00 CET
| Date post: | 21-Oct-2014 |
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Business |
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Welcome to the webinar on
developing and measuring organizational culture
March 5th, 2014
We will start at 12.00 CET
Developing and measuring organizational culture
March 5th, 2014
Time: 12.00 – 12.45 CET
Lunch webinar
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Who we are
Niklas Granlund
• More than 13 years of experience as
management consultant
• Culture changes, change communication,
project management and downsizing and
rationalization
• Certified CTT-consultant
Elahe Tavakoli
• More than 7 years of experience as
management consultant
• Culture changes, change communication
and process development
• Certified CTT-consultant
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- Market leader in Scandinavia within implementation ofchange
- 400 employees
- Service private and public companies in Scandinavia and in the Baltics
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To plan, lead and implement changes is our core business
• Typical projects:
• Implement a new strategic direction
• Mergers & acquisitions
• LEAN implementation or process development
• Leadership development
• Cultural transformation
• …
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What we are going to talk about
Our view on culture
Experience and results – do’s and don’ts
How Implement can support your cultural journey
Managing and measuring organizational culture
Questions
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Current state
Vision
Culture is a means…
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Architectural approachEvolutionary approach
You have a choice…
Source: Freely after Daryl R. Conner
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What we are going to talk about
Our view on culture
Experience and results – do’s and don’ts
How Implement can support your cultural journey
Managing and measuring organizational culture
Questions
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Can you measure culture?
Love
Happiness Co-operation
Relationships
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Can you measure culture?
Leadership &
”employeeship”
Visible signs
Conclusion – Yes, but be aware that you are simplifying!
Climate & spirit Structures
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Why measure culture?
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3 phases of a culture project
1. Explore and analyse
2. Implement 3. Integrate
Time
Secure
results,
on-going
development
and follow-
up
Strategic
decisions
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Phase 1: Explore and analyse
• Establish project
• Collect data
• Analyse current and
desired culture
• Secure common
understanding and
ownership among top
management
CTT: Current Culture Values
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Phase 2: Implement
• Create common
understanding of
current and
desired state in
the organisation
through structured
dialogue(s)
• Strengthen
ownership among
managers
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Phase 3: Integrate
• Integrate values in
structures, systems and
processes
• Adapt feedback systems
Recruit Develop Phase outAttract
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3 phases of a culture project
Explore and analyse
• Integrate values in
structures, systems and
processes
• Adapt feedback systems
Implement Integrate
• Establish project
• Collect data
• Analyse current and
desired culture
• Secure common
understanding and
ownership among top
management
• Create common
understanding of current
and desired state in the
organisation through
structured dialogue(s)
• Strengthen ownership
among managers
Time
Secure
results,
on-going
development
and follow-
up
Strategic
decisions
CTT: Current Culture
Recruit DevelopPhase
outAttract
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The Cultural Transformation Tools (CTT)
…used to measure and manage the culture in the organization
by making it visible
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CTT – a sample of users
ABN Amro
Adobe
AllState
American Red Cross
American University
AstraZeneca
ANZ Bank
Banque Populaire
BP Oil
Bridgestone Firestone
Campbell’s Food
Catholic Health Services
Canadian Broadcasting
Capital One
Ceridian
Computer Associates
Corning
Court TV
Deutsche Bank
Duke University
Ericsson
Ernst and Young
Exxon
Ford Motor Company
IKEA
ING Bank
Internal Revenue Service
Johnson and Johnson
Kellogg’s Food
Kraft
KLM
Konica Minolta
KPMG
Lever Faberge
Lloyd’s TSB
L’Oreal
Methodist Hospital
Microsoft
Motorola
Nestle
Nortel Networks
Ohio National Guard
Petrobras
PriceWaterhouseCoopers
Rabo Bank
Royal Automobile Club
SEB Bank
Smithsonian
St Luke’s Health System
Thrivent
Total Petroleum
Unilever Foods
University of Pennsylvania
US Customs
Volvo
Wegmans
Wharton Business School
Wrigley
World Bank
Xerox
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CTT in practice
• Online survey with 3 questions
· Personal values
· Current culture
· Desired culture
• Choose values/behaviours from a list of words
• 20 min
• ~40 different languages
• Based on motivational theory
• Cost connected to number of reports/demographic cuts
• Expert validation
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CTT-results
Accumulated
• Personal values
• Current cultural values
• Desired cultural values
Personal Values Current Culture Values Desired Culture Values
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CTT measures potentially limiting aspects of the culture
Level Potentially Limiting Values (votes) Percentage
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hierarchy (107)confusion (98)
bureaucracy (86)silo mentality (73)
power (56)information hoarding (45)
long hours (40)
505 out of 911:22% of total votes
2internal competition (79)
blame (31)manipulation (24)
134 out of 199:6% of total votes
1
short-term focus (64)cost reduction (38)
control (32)caution (28)
exploitation (19)job insecurity (15)
196 out of 317:8% of total votes
Total 835 out of 2330 36% of total votes
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What we are going to talk about
Our view on culture
Experience and results – do’s and don’ts
How Implement can support your cultural journey
Managing and measuring organizational culture
Questions
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ANZ Bank – cultural journey
We want to
be the bank
with a
human face
CEO John McFarlane
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ANZ Bank – Cultural journey 2000 to 2005
2000 2001 2002 cost reductioncustomer focusshareholder valueaccountabilitycontinuous improvementprofitresults orientationachievementcommunity involvementcustomer satisfactionteamworkbeing the bestorganizational growthbureaucracybalance (home/work)long hoursproductivitybrand imagehierarchicalcan do approachcommitment
cost reductionprofitshareholder valueresults orientationaccountabilitycontinuous improvementcustomer focusbureaucracyachievementgoals orientationhierarchicalshort term focuslong hourscommitmentrisk aversion
2003 customer focuscost reduction accountability continuous improvement achievement profit results orientationcommunity involvementshareholder valuecustomer satisfactionteamwork bureaucracybeing the best hierarchicalbalance (home/work) commitment long hoursorganizational growth brand image productivity
cost reductionshareholder valueaccountabilitycustomer focusprofitresults orientationcontinuous improvementachievementbureaucracybeing the bestcustomer satisfactiongoals orientationbrand imageorganizational growthlong hoursteamworkcontrolhierarchicalcommitmentcommunity involvement
Enhancing values Limiting values
customer focus community involvementcost reductionaccountabilityresults orientationbrand imageachievementprofitbureaucracycustomer satisfactioncontinuous improvementshareholder valueteamworkbeing the bestbalance (home/work)performbest practicelong hoursorganizational growthhierarchical
2005
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ANZ Bank – employee satisfaction rose dramatically
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1999 jul-00 Jul-08 Feb-02 Jul-02 Feb-03 Jul-03 Feb-04
49%
58%62%
72%
78% 78% 82%85%
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ANZ Bank – net profit after tax ($m) increased significantly
0
500
1000
1500
2000
2500
3000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
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ANZ Bank – results
Lives its values – from 20% to 80%
Productivity in meetings – from 61% to 91%
Openness and honesty
Can-do culture
Revenue per employee increased by 89%
Average profit growth of 15%
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Supported by research
Effective culture can
account for 20-30 % of
the differential in
corporate performance
when compared with
"culturally unremarkable"
competitors. James L. Heskett,
The Culture Cycle
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Some cases from the Nordic and the
Baltics…
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Swedish authority
• Need to develop a culture in line with external environment, assignment, objectives and strategies
• ~400 people
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Scandic Hotels
• Revitalize values – inclusive approach
• ~8000 people in 9 countries
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ICA/Rimi
• Aim: Unite the organisation – work as ONE!
• CTT within all companies and countries – 500 representatives
• On-going implementation
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Do’s and don’ts in culture projects
• Top management ownership is crucial
• Develop a plan
• Gain widespread support for the project – involve all levels
• Measure – specify why, when and how to work with the results
• Don’t get stuck in the analysis, focus on the implementation instead
• Make it stick – carry out activities over time
• Endurance is key
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What we are going to talk about
Our view on culture
Experience and results – do’s and don’ts
How Implement can support your cultural journey
Managing and measuring organizational culture
Questions
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Implement can support you in all phases of your cultural journey
• We can support you in all phases of your cultural journey
» Strategic partner
» Provide tools and methods
» Neutral, ”outside” – perspective
» Measuring your culture – using the CTT
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What we are going to talk about
Our view on culture
Experience and results – do’s and don’ts
How Implement can support your cultural journey
Managing and measuring organizational culture
Questions
Questions
Thank you for listening!
Feel free to contact us if you have any questions!
