Organizational culture and leaders

The organizational culture and
leaders
An invisible force in the organisation
Warsaw, May 5th 2013

!  
Founder
:
Thomas
J.
Watson
(1914),
Thomas
J.
Watson
Jr.

T.
J.
Watson
was
a
salesman
and
a
marketer,
who
le<
NCR
to
set

up
IBM.
He
felt
himself
as
a
entrepreneur
and
had
never
built
a

pure
engineering
company.

!  
Successors:
T.
Learson,
F.
Cary,
J.
Opel,
J.
Akers

!  
CharismaPc
leader:
Louis
Gerstner
(1993)

Gloriﬁed
markePng
expert,
who
already
had
been
successful
in

American
Express,
was
accepted
by
the
whole
organizaPon
of

IBM.
He
did
not
change
a
culture,
but
reinvented
it,

consequently
IBM
regained
its
market
posiPon.

!  
Michael
Woodford
–
history

!  
Woodford
started
working
in
Olympus
in
1981
(KeyMed)

!  
On
September
30th,
2011
he
became
CEO
(first
not
Japanese

CEO
in
the
history
of
Olympus)

!  
On
October
14th,
2011
he
was
called
off
from
CEO
a<er
the

scandal
with
the
takeover
of
Gyrus,
but
he
maintained

the

membership
of
the
Board
of
Directors

In
spite
of
working
in
Olympus,
when
he
entered
the
circle
of
top

execuPves,
did
not
accept
the
rules
of
the
game.

...
It
con(nues
to
insist
that
CEO
Michael
Woodford
was
fired
for

cultural
differences,
even
a=er
acknowledging
that
his
asser(ons

about
exorbitant
M&A
fees
were
true...

!  
Jorma
Jaakko
Ollila
(1992
-‐
2006):
CEO,
who
is
a
founder

of
Nokia
Mobile

!  
Successor:
Olli-‐Pekka
Kallasvuo
(2006)

!  
Current
CEO:
Stephen
Elop
(2010)

Is
it
going
to
be
an
economic
success?

Are
they
going
to
regain
90%
of
the
company
value,
which

Nokia
has
lost
recently?

!  
Founders:
Steve
Jobs
and
Steve
Wozniak
(1976)

Engineers,
who
set
up
a
company
with
desire
to
develop
educaPonal

products
for
children,
user-‐friendly
and
funny.

!  
Successor:
John
Sculley
(1986),
M.
Spindler,
G.
Amelio

!  
CharismaPc
leader:
Steve
Jobs
(1996)

Job’s
return
recreated
space
for
engineers
,
who
were
neglected
by

Sculley
(he
moved
to
Apple
from
Pepsico
Co.).
Jobs
linked
Apple’s

original
assumpPons
with
a
markePng
knowledge,
that
might
have

been
missing
previously.
He
created
a
company
with
the
highest

market
value
in
the
world.

What
do
they
have
in
common?

!  
InternaPonal
corporaPons.

!  
„Engineering”
companies,
parPcipants
of
the

biggest
infrastructural
projects.

!  
In
2000
each
of
them
had
a
division
of

mobile

telephony,
bringing
proﬁts
at
the
whole

organizaPon’s
scale.
To
date,
these
divisions
have

been
either
sold
or
closed
by
each
of
them.

Coincidence?

Is
there
one
explanaPon
to
ALL
presented
cases?

Have
you
ever
encountered
the
situaPon,
that
project
with
the
best
BUSINESS

CASE,

led
by
an
outstanding
manager
has
collapsed?

Why
the
same
manager
is
successful
in
one
company,
while
in
other
is
considered

to
be
a
loser
(like
Sculley
from
Apple,
who
was
classiﬁed
by
Conde
Nast
on
14th

place
in
the
ranking
of
the
worst
CEO
in
the
USA)

Maybe
the
power
of
the
organiza,onal
culture
is
the
answer

to
these
quesPons?

What I would like to speak about today?
!  
Concept
of
organizaPonal
culture
according
to
Prof.
Schein.

!  
Leaders
in
culture
creaPng,
forming,
developing
and
changing.

!  
Culture
levels
and
its
signiﬁcance
to
members
of
the
organizaPon.

!  
How
can
you
assess
organizaPonal
culture?

!  
OrganizaPonal
change.
How
can
you
do
it
more
eﬀecPvely?

!  
Q
&
A

Question
What is your first thought when someone
speaks about „organizational culture”?

What is „IT”?
!  
Many
conﬁrm
that
„IT”
(culture)

exists,
but
each
of
them
perceives
„IT”

completely
diﬀerent.

!  
Topic
of
academic
discussion.

!  
Common
used
words
referring
to
culture:

!  
noPceable
similar
behaviour
among

people

!  
norms
exisPng
in
the
organizaPon

!  
espoused
values

!  
group’s
philosophy

!  
rules
of
the
game

!  
climate

!  
skills
and
experience

!  
thinking
habits,
theorePcal
models,

paradigms

!  
common
meaning

!  
metaphors
and
integraPng
symbols

!  
formal
rituals
and
ceremonies

Artefacts
What you see and what you don’t see at the first glance.

Artefacts
Noticeable level of culture
!  
What
a
new
member
sees,
hears
and
feels
when
he
or
she
enters

the
organizaPon.

!  
Include
an
oﬃce’s
architecture,
used
devices
and
a
technology,
a

language,
a
creaPon,
a
style
of
dressing,
rituals
and
ceremonies.

!  
OrganizaPonal
structures
and
processes,
moPvaPon
systems,

way
of
communicaPon,
taking
decisions
and
escalaPon
of

problems.

!  
Easy
to
observe,
but
diﬃcult
to
understand
why
all
these
are,
as

they
are.

Company beliefs and values

Espoused values
Company’s beliefs and values
!  
Company’s
mission
and
vision.

!  
Strategy,
targets,
philosophy.

!  
Managers
explanaPon.

!  
Internal
rules,
procedures,
audit
recommendaPon.

!  
Business
ethics
code.

!  
May
be
congruent
or
not
with
the
other
members’
behaviour
or

other
artefacts.

Tacit underlying assumptions

Tacit underlying assumptions
!
O<en
unconscious,
taking
for
granted
beliefs,
percepPons,

thoughts
and
feelings
all
members
of
the
organizaPon.

!  
Common
for
the
organizaPon
and
mutually
reinforced
by
its

members.

!  
Basic
source
of
employees’
values
and
acPons.

!  
Have
a
tendency
to
be
unquesPonable
and

nonnegoPable
(they
are
diﬃcult
to
change).

!  
Set
of
assumpPons
as
a
whole,
o<en
mutually

connected.
Understanding
one
assumpPon
doesn’t

explain
observable
behaviours.

!  
Called
the
company’s
DNA.

Organizational culture
Formal definition proposed by Schein
Organiza,onal
culture

is
a
model
of
common
tacit
underlying
assumpPons,
which

a
group
learned
during
solving
problems
of

!   external
adaptaPon
and

!   Internal
integraPon,

which
was
enough
eﬀecPve
to
be

admimed
as
correct
(proper),

for
that
reason
are
told
over
to
new
members
as
an
appropriate
way
of

percepPon,
thinking
and
feeling
with
regard
to
these
problems.

Worth reflecting
!  
About
your
family,
ethnic
and
naPonal
group,
where
you
have
been

brought
up,
about
educaPonal
path
to
understand
the
main
forces,

which
inﬂuenced
your
values
and
way
of
working.

!  
What
groups,
clubs
and
associaPons
do
you
formally
and
informally

belong
to,
inﬂuence
your
current
values
and
norms?

!  
Think
about
your
work,
it’s
history
and
tradiPon
and
how
they
relate

to
your
values?

Considering about organizational culture, think firstly about your personality

Culture and leadership
Two sides of the coin
!  
Leaders
create
culture,
when
they
create
groups
and

organizaPons,
starPng
from
the
first
founder,
who
executes
his

own
idea
in
his
own
imposed
way.

!  
Culture
once
created,
will
define
criteria
of
leadership.

!  
When
organizaPonal
structure
becomes
dysfuncPonal,

primary
leader’s
task
is
to
find
out
not
working
elements
of

exisPng
culture
and
change
them.

Culture
Hierarchical
Assump,ons

ExecuPve
culture

(execuPve)

Finance
is
ﬁrst
focus;
feeling
of
loneliness
during
decision

taking;
good
organizaPon
doesn’t
need
so
many
people;

company
view
through
reports
lenses;
run
company
by

procedures,
which
are
considered
as
basic
tools.

Engineering/project
culture

(manager)

Ideal
world
is
an
elegant
machine
and
perfect
processes,

which
don’t
need
people;
people
are
problems,
because

they
make
mistakes;
work
is
puzzle
solving.

Working
culture
(operator)
We
are
the
crucial
company’s
assets;
success
depends
on

our
knowledge,
skills
and
engagement;
regardless
of
how

perfect
is
our
company,
we
face
unexpected
situaPons;

teamwork;
we
depend
on
managers,
who
allocate

resources,
trainings
and
machines.

Culture
Occupational
!  
While
organizaPon
grows,
funcPonal
departments
(finance,
lawyers,

marketers,
salesmen,
technology…)
create
their
own
cultures
(creaPng

occupaPonal
cultures).

!  
Differences
in
occupaPonal
cultures
are
strengthen

by
„silos”
organizaPon.

!  
Differences
in
occupaPonal

cultures
are
most
visiable
in

projects
teams
where

members
belong
to
different

departments.

President
VP Sales VP Marketing VP Finance
VP
Administration
VP Legal
Directors Directors Directors Directors Directors
Managers Managers Managers Managers Managers
Staff Staff Staff Staff Staff

An invisible force steering organizations
!  
OrganizaPonal
culture
is
neither
good
nor
bad.
It
is
neutral.

!  
Culture
can
not
be
measured
by
survey,
in
percentage
or
in
numbers.

!  
There
are
neither
stronger
nor
weaker
organizaPonal
culture.

!  
The
deeper
organizaPonal
change,
the
deeper
cultural
assumpPons

(less
conscious)
show
their
power.

!  
At
course
of
developing
organizaPon
some

assumpPons
become
naturally
dysfuncPonal.

It
is
leaders’
task
to
correct
them.

Support or brake during organizational change?
!  
Companies
take
decisions
mostly
on
hard
data.

!  
O<en
it
becomes
clear
just
a<er
creaPng
new
formal
organizaPon,
that

there
is
a
necessity
to
create
organizaPonal
culture.

!  
O<en
during
changes
accompanying
trainings,
PR,
meePngs
and

employee’s
engagement
are
only
superﬁcial.

!  
The
clue
is
to
use
to
the
utmost
cultural
elements
supporPng
business

goal
and
reduce
(eliminate
“carriers”)
those
elements
of
culture,
which

hinder
the
changes.

Organizational change
Psychologic and sociological processes
!  
Stage
1
Unfrozen:
CreaPng
moPvaPon
to
change

!   Awareness
of
necessity
of
change

!   CreaPng
”survival
anxiety
or
guilt"

!   CreaPng
psychological
safety
during
learning
new
things

!  
Stage
2
Learning
new
concepPons,
meanings
and
standards

!   ImitaPon
and
idenPﬁcaPon
with
new
standards

!   Looking
for
soluPons
by
„try
and
error”
approach

!  
Stage
3
AcceptaPon
of
new
ideas,
meanings
and
standards

!   New
idenPty
acceptaPon

!   New
relaPons
acceptaPon

source:
concept
according
to
Kurt
Lewin

what
leaders
might
take
from
presented

concept

during
organizaPonal
change,

company
acquisiPon

or
fusion?

Organizational change
How to do it more effectively?
!  
During
organizaPonal
change,
leaders
should
be
aware
of
not
only
hard
stuff,
but

also
of
invisible
power
of
organizaPonal
culture.

!  
There
is
neither
specific
strategy,
nor
tacPcs,
that
guarantee
effecPveness
of

changes,
because
they
depend
on
organizaPonal
culture
and
should
be
matched

each
other.

!  
What
is
certain,
is
necessity

to
work
on
all
dimensions
and
organizaPonal
levels,

depending
on
depth
of
planned
changes.

!  
Let
me
propose
few
tools
and
approaches:

!   Workshops
on
Dialog
as
a
mean
for
understanding
two
merging
or
working

together
parPes

!   Workshop
based
on
Schein’s
agenda
in
order
to
decipher
artefacts,

espoused
values
and
underlying
tacit
assumpPons

!   InfluencerTM

method
as
a
frame
for
change

!   HolisPc
coaching
for
managers
and
execuPves

Dialogue
To really understand ourselves and the others
!  
DIALOG
–
workshop
for
leaders
to
understand
the
mystery
of
conducPng
dialogue
-‐
basis
for

cooperaPon,
communicaPon,
collecPve
intelligence
as
a
tool
during
organizaPonal
changes.

!  
DIALOG
–
gr.
„dia
logos”
–ﬂow
of
meaning,
creaPng
the
space
for
versaPlity,
diﬀerent
points

of
view
and
exchanging
the
experience.

!  
Four
basic
pracPces
of
DIALOG
(competence
of
change
leaders):

!   Outspoken
own
Voice,

!   Listening,

!   Respect
the
others,

!   Suspend
the
assumpPons

!  
DIALOG
Workshop:

!   Dialog,
debate,
discussion

!   Mental
models
impact
on
our
behaviour

!   CreaPng
dialog
space
–
to
bemer
understand
ourselves
and
others

!   Four
pracPces
by
William
Isaacs

!   Four
player
system
by
David
Kantor

!   Four
archetypes
of
leaderships
-‐
convergence
of
energy

In search for culture: quick workshop
!  
The
first
step
is
to
take
a
decision
to
reach
specific
business
target.

!  
A
sufficient
assessment
of
all
organizaPonal
culture’s
levels
to
achieve
the
goal
can

be

done
during
as
limle
as
5
hours
workshop,
whilst:

!   Concept
of
organizaPonal
culture
is
presented.

!   Artefacts
are
described.

!   Company’s
values
are
reminded.

!   Tacit
underlying
assumpPons
are
discovered.

!   Develop
next
steps.

!  
Workshop
should
be
held
by
facilitator.

!  
Successive
workshops
are
possible,
when

occupaPonal
subcultures
in
organizaPon

are
strong
and
can
relevantly
affect

accomplishing
business
goal.

InfluencerTM
Do not forget any area
!  

A
method
prepared
by
Vital
Smarts.

!  
Vital
Smarts
divided

inﬂuence

sources
to
six
areas.

!  
Experience
prompts
that

moPvaPonal
elements
are
more

important
than
possibiliPes.

Six
sources
of
inﬂuence

InfluencerTM and organizational culture
Tacit
underlying
assump,ons

Values

Artefacts

Individual
Social
Systemic

MoPvaPon

PossibiliPes

Conclusions
from
analysing
organizaPonal
culture
are
input

to
planning
acPons
using
InﬂuencerTM

methodology

Leader’s support during change
Holistic coaching
Coaching

Primary
target
of
coaching
is
to

!   raise
Client’s
awareness
of
situaPon,
in
which
he/she
is
and

!   analyse
available
alternaPves
by
Client
himself/
herself

to
empower
and
support
Client
in
behaviour
and
avtude
changing,
based
of
his/
her
own
discoveries,
conclusions
and
resources.

Coaching
as
a
face
to
face
support
for
execuPves
:

!   Management
coaching

!   ExecuPve
coaching

Thank you
Marcin Bajda
www.marcinbajda.eu
Organizational culture and leaders
An invisible force in organization

Organizational culture and leaders

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