At the Family Firm Institute’s Global Conference held this past week, October 17-20 in Brussels, Belgium, I was privileged to deliver a speech and workshop on “Culture Change for Changing Times,” designed for family firms. The conference was well attended from around the globe by family firm leaders and those who consult, coach and provide professional guidance for family firms.
How I developed this presentation:Work with family firms as firmsMarcalAtlantic Legal SupplyPrinting companyParagonRxBenjamin ObdykeMany in my speaking engagements and workshops, Vistage
ResearchU of Michigan had a marvelous tool, OCAI, began to see its value in helping clients understand culture today and what they might like it to be in the future.Of all those in the data base, not a one was a family firmHere in Netherlands, 20,000 not a single family firmWhy? Was there something of value here that family firms were missing, and might really need to help get past: OMG my father really wants to do something new? My brother in law knows it all, he’ll never change. Or my father and brothers are all entrepeneurs but we have grown to $30MM and we need to hire non-family members, and they won’t come—too loosey=goosey. Where’s the structure, rules?
The key to a better workplace is achieving balance between the structural and cultural forces at play. One of the great truisms of 21st-century workplaces is that change is relentless. As management experts observe, in a world of heightened risk and uncertainty, the expectation of constant workplace change almost becomes comforting. The downsizing, restructuring, mergers and acquisitions that so many Canadian employees have experienced firsthand are proof enough that change has become the norm. But something's wrong with this popular image of workplaces being incessantly remoulded, like silly putty in the hands of a six-year-old.Why does research show that most major organizational change initiatives fail to achieve their intended goals? What stands in the way of the changes needed to foster innovation and productivity or create the kind of healthy and fulfilling work environment that engages and retains employees?These questions raise the basic paradox of workplace change. To help unravel this paradox, think of workplace change in terms of yin and yang, with complementary but opposing forces in constant tension. These forces are structures and cultures, the hard and soft sides of every workplace.Structures are visible in organization charts, head counts, job classifications, information technology and rules about how work should be done.Culture is the organization as a community -- the workplace's social glue created by shared meanings of how life in the office, at the service counter or on the production line ought to be lived.So the paradox comes down to this: The more that organizations change their structures, the greater the need for supporting change in elements of culture.
Tell me about yours and how it is dealing with the new economic realities, new technology, changes in buying processes, Lets be the panel for today:No longer a patented productDistribution is changingInternet sales are stealing clients but competition is keenCost structures are pressing margins
Some others that might be urgent in your own world?
Stories to share that make this all come alive.Less about the tool that the problem to be solved.Is it hard to do—yes and noCan you do it yourself, sometimes, sometimes notWhen to use a hand.
Largest in the mid-westDoing it just the way the always haveFeet on the streetStanding by the car, the property, the stuff to sellBut recently, they had their “aha” moment. They sold a very large star trek figure online for $75,000. No feet on the street. No expense. Easy to sell and the e-bay auction did it all.
Sound great.But some things were not so great
What did he face:Nephew that came into his office in tears (I bet you might have had one of these). Talent young man, frustrated. Has to do what his father did to work his way up the organization. But he did everything differently and he had a college degree, and his father never went to college…Sister that thought she was the heir apparent, but the father chose the younger son—more experience, had been with P&G, she had none of that experience.A lot of family in jobs that they were ill-suited for but not able to move into ones they might thrive in.And the complexity and resiblity to all those families was not to be underestimated.
As management experts observe, in a world of heightened risk and uncertainty, the expectation of constant workplace change almost becomes comforting. The downsizing, restructuring, mergers and acquisitions that so many Canadian employees have experienced firsthand are proof enough that change has become the norm. This is very hard with our brains fighting change. It really is painful to change our beliefs about what is real. A story: took clients out to do anthropology. Hung out with their clients: distributors or manufacturers. Listened to what their stories were all about. Distributors told them that they had no growth strategies. How will they grow? Manufacturers said you are the experts get us ideas faster, and they said, but we build your batteries
As many in companies as in society. But the research has become very compelling that despite the diversity of ways of living, there are essentially four dominant types of corporate cultures.
How do we know what is right or wrong? What is “not working” mean?Is the anger at the brother-in-law about him as family or about his performance or that of the company?What about Marcal that finally went under bankruptcy reorganization-with 80 year old secretaries and very obedient sons.
What is this anyway that we are talking about. Only 4 dominant types of cultures, how so?Spend 15 minutes playing a game. That makes this come alive.As we do it—think about your own culture and yourself as you play your role there.
Take one minute and think about what you have in your hand. You are voting here. Give us a specific example not of the abstract but how you live it. Encourage break through innovation—great how?You emphasize short time to market—speed of production? Concept to development? Increasing productivity—how? Do you do this, your company?
See how the card game might work.
If you do this on line, What did your’s look like?This was a CEO of a company we were working with.
How to run a company without common shared beliefs about how to get things done.
Real issue here is the gap between what you are today, what you might think you should be more of tomorrow and what that will really be like—how do you become results or competitive? What if you are Julie and you need to be more “corporate” or controlling?
This is a hospital client of mine. we had over 65% of their 2500 employees and their board take the OCAI. Then we spent 5 days working with their 45 leaders/managers. First what were each of these culture types really all about and where did you need what? If we want to be more collaborative and innovative how do we do that and stay within our regulatory limitations?
If you are going to shift, what will you do more of and what will you do less of?
These are important but still a bit too abstract. So lets take two minutes and write down exactly what you might do to be able to increase employee suggestion. Or decrease the hierarchy by eliminating sign-offs for decisions? Maybe we are going to be a less punishing environment? Commodity trader example.
For Julie, at Catalytic Products, she had to stop being so customized and entrepreneurial if she was to hire new staff. And she had to get her Father to start to abide by rigorous standards of production and productivity. But the core essence of the company and its success was how it made each client feel very special, project was just built for them, unique,etc.