Key Attributes of A Successful Organizational
Culture
Chuck Goodnight
a Presentation to
Third International Conference on Human Resource Development for Nuclear Power Programmes: Meeting Challenges to
Ensure the Future Nuclear Workforce Capability
Gyeongju, Republic of Korea, 28 – 31 May 2018
• Culture is a common set of behaviors and expectations among a group of people
• We typically think of culture in terms of food, music, dance, architecture, and history
• Within an organization, culture is a reflection of behaviors and expectations relative to the purpose of the organization
• For a nuclear power operating organization, culture will have specific behaviors and expectations, mostly driven by risk management and regulation
What Is Culture?
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What is Organizational Culture?
• What We Say
• What We Do
• How We Do It
• Why We Do It
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Why is Organizational Culture Important?• An organization’s culture will ultimately define its success
(Drucker’s “Culture eats strategy for breakfast”)
• There are behaviors that create value, and there are behaviors that create risk - therefore, success or failure will result from the organization’s culture
• While weaknesses in organizational culture can be overcome with more people, a successful organizational will have the appropriate staff size to have an effective culture that supports the vision and mission of the organization…In summary, a strong organizational culture helps to minimize operating costs
What Are The Key Attributes of Organizational Culture?
Mission Clarity
•Mission Defined & Disseminated
•Goals Defined
•Metrics/KPIs Defined & Applied
Standardization
•Common Terms
•Common Processes
•Period Standardization Reviews
Fully Empowered Employees
•Minimal Authorization Requirements
•Few/No Vertical or Horizontal Barriers
•Personnel Encouraged to Take Initiative
High Integrity Workplace
•Personnel "Do the right thing"
•High Integrity Expectations of Others
•Approaches/ Responses to "Work Arounds"
Strong Trust Relationships
•Employee Trust of Management
•Employees Trust of Each Other
•Cross Organizational Trust Relationships
Highly Effective Leadership
•Formal Training for Leaders
•Leadership Development of Initiatives
•Leadership Accountability For Performance
Effective Processes
•Processes Streamlined
•Processes Measured
•Processes Help The Organization
Responsive to Internal Customers
•Regular Support Executed Effectively
•Are Processes Impeded Due To Lack of Support
•How Are Ad-Hoc Requests Handled
Effective Communications
•Clear and Frequent Communications From Management
•Upward Communication Is Facilitated
•Important Activity Plans Are Communicated
Emphasis on Recruiting And Retaining Outstanding Employees
•Standards for Recruiting Best New Hires
•Top Performers Identified For Retention
•Formal Retention Program
High Degree of Adaptability
•Are New Approaches Open for Discussion
•Can New Approaches Be Adopted Readily
•Are Unusual Support Requests Executed Effectively
High Accountability Standards
•Is Ownership Emphasized
•Individuals and Organizations Are Rewarded For Success
•Consequences For Poor Performance/Failure
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Some Cultural Attributes Are More Challenging Than Others
Size of The Challenge
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Organizational Culture Must Be Related To the Vision and Mission• Example Vision Statement:
➢“Be a top performing nuclear power organization”
• Example Mission Statement:➢“Safely, effectively, and efficiently generating electricity”
“The key enabling steps for achieving the organization’s overall aspirations typically expressed as the goals, objectives, policies, and standards are reflected in the operating or management model, as well as in the vision and mission statements. These enabling steps are clearly communicated and reinforced throughout the nuclear organization.” – INPO 11-007
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Create Organizational Culture – Do Not Let it Evolve• Organizational leaders determine culture
…if not, the lower levels of management will do it without you
• Expectations must be set• Standards to be upheld• Behaviors to be exhibited/avoided• Performance goals to be achieved
• Individuals must be held accountable• Positive, public reinforcement for successes
• Awards, bonuses, praise in meetings, content in public communications, etc.
• Real consequences for poor performance• Administrative actions, demotions, loss of pay, termination, etc.
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Examples of A Weak Organizational Culture (1 of 3)• Mission Clarity: Lack of focus on the critical mission:
N-Stamp for developing/manufacturing dry cask fuel containers
➢Loss of focus (specifically in Engineering) on core mission of safely, effectively, and efficiently generating electricity
➢Collateral activities are created, e.g., development and maintenance of N-stamp certification
➢Cost impact; cannot manufacture the casks at a competitive cost level
➢Non-core mission activities increase costs for the core mission; organizational leaders have lost focus and permitted non-core mission activities
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Examples of A Weak Organizational Culture (2 of 3)• Standardization: A nuclear fleet with several separate sites
executes processes differently at each location
➢At a minimum, all but one of the sites were performing each process at less than optimal levels of performance, requiring additional human and/or financial resources
➢Operations staff at all but one plant were not allowed to conduct minor maintenance support including oil changes/additions, and filter changes, which helped reduce maintenance staffing requirements
➢All but one of the plants had their dosimeters processed off-site by a vendor; the site performing their own dosimetry processing incurs higher costs through the application of more personnel and an on-site lab that is not fully utilized
➢Additional human and/or financial resources were required due to varied approaches at most of the nuclear site locations
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Examples of A Weak Organizational Culture (3 of 3)Accountability: Supervisors claim insufficient time available to generate appropriate personnel performance evaluations
➢Stake holders make it difficult to give low performance ratings; the organization does not have a history of conducting performance evaluations with real meaning
➢Necessary work not completed because there is not real (or implied) action the company will take; best people are not retained, and worst performers are not pushed out due to a lack of sufficient organization information to identify those personnel
➢Mediocre performance becomes the cultural standard, resulting in leadership accepting lower levels of schedule adherence and low levels of “wrench time”
Examples of A Strong Organizational Culture (1 of 3)• Adaptability: Once a problem was identified, the scope
was fixed and limited to only that problem area
➢“Plan the work, then work the plan”
➢Although the problem was relatively large, a small team was dedicated to resolving it, and that team had the flexibility to gather and apply the required resources. After the issue was resolved, it was easier to redeploy the team members.
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Examples of A Strong Organizational Culture (2 of 3)• Recruiting/Retaining the Best: A nuclear new build program hired an
experience designer and associated constructors with recent experience.
➢ This approach resulted in a successful construction of the client’s first NPP while other projects around the world had significant delays.
➢ The organization recruited different personnel for the operating organization from programs with significant histories of operational excellence.
➢ Their retention programs help minimize turnover, further strengthening the organization.
➢While not yet realized, the operating organization will likely have a successful initial phase of operations compared to many historical examples.
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Examples of A Strong Organizational Culture (3 of 3)• Leadership: A newly installed Chief Nuclear Officer
took several actions not implemented in over 30 years or prior operation:
➢Installed a national flag (a source of pride in the local region) at the security entrance to the site
➢Focused on cost reduction in areas other than labor ($300,000/year was identified in copier/printer paper costs)
➢Developed an organizational theme which enhanced other attributes of an effective culture, including strong trust relationships and a high degree of accountability: “Treat everyone with respect and take the time needed to do everything right the first time.”
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• Management is overseeing processes:➢Operations➢Maintenance➢ Engineering➢ Security➢Human Resources Management➢ Etc.
• Leadership is developing people: “A leader is someone who takes others to a place they would not otherwise go” ……therefore leaders can be good or bad, and still lead
• Leaders need to understand organizational culture, and help to drive to the desired culture that supports the mission and vision
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How Do I Distinguish Between Management & Leadership?
How Can You Assess Your Organizational Culture?
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• Cultural Elements need to be defined
• Observations will be needed➢ How meetings are conducted/interactions
➢ Observe conduct of activities
➢ Observe conduct of organizational interactions
• One-On-One confidential interviews
• Confidential surveys
• Periodic assessments will be needed
• An unbiased/external view will be required
Summary
• A strong, effective organizational culture will be the key to realizing completing the mission and realizing the vision (success)
• There are key attributes (12), and they require focus and diligence by leaders
• Leadership must tie the cultural attributes to the mission and vision
• The culture must be defined and reinforced
• Periodic assessments are required (check & adjust)
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Thank You
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Powering Improvement
