Notes

A Process for Changing Organizational Culture

Changing organizational culture is a very difficult goal to achieve, not only because culture is largely unrecognized, but because once set, commonly shared interpretations, values, and patterns are difficult to modify. However, once it has been determined that culture change is a desired objective, members of an organization can engage in a set of steps that will put a culture change process in motion. The outcome of these steps is a process for moving an organization’s culture from the current state to the preferred future state. These steps are based on the work of several authors who have described successful change interventions aimed at organizational culture change (e.g., Hooijberg & Petrock, 1993; Denison, 1989; Trice & Beyer, 1993; Cameron & Quinn, 1999; Kotter, 1995). These steps initiate change in individual and organizational processes, conversations, language, symbols, and values, none of which by itself ensures that culture change will occur, but in combination they create a great deal of momentum toward fundamental culture change in organizations.
To explain these seven steps, an (anonymous) organizational example is provided with its current and preferred future culture profiled in Figure 3. The solid line represents the organization’s current culture, and the dotted line represents the preferred culture. The results of the culture assessment process indicated that this organization desired to change its culture toward the clan and adhocracy cultures and away from the hierarchy and market cultures. Examples of how this organization engaged in this seven step culture change process are provide below.
1. Clarifying meaning. The first step in culture change is to clarify what it means and what it doesn’t mean for the organization’s culture to change. This is an interpretation and meaning-making step. Moving toward one particular type of culture does not mean that other culture types should be abandoned or ignored. It means only that special emphasis must be placed on certain factors if the culture change is going to be successful. Questions that may be addressed when determining what culture change means and doesn’t mean include: What are the attributes that should be emphasized if the culture is to move toward the preferred quadrant? What characteristics should dominate the new culture? What attributes should be reduced or abandoned in the move away from a particular quadrant? What characteristics will be preserved? What continues to be important about this culture type even though there will be an emphasis on another culture type? What are the most important trade-offs?
The purpose of this step is to clarify for the organization the things that won’t change as well as the things that will. Wilkins (1989) identified the importance of building on corporate character in any change effort, that is, on the core competencies, the unique mission, and the special organizational identity that has been created over time. An organization should not abandon core aspects of what makes it unique, whereas some other aspects of the organization will need to be transformed. Identifying what culture change means and doesn’t mean helps remind the organization about what will be preserved as well as what will be changed. It attaches specific meaning to the idea that culture change will occur.
By way of illustration, the organization profiled in Figure 3 interpreted a culture change toward the clan quadrant to mean more employee empowerment, more participation and involvement in decision making, and more cross-functional teamwork. More clan emphasis did not mean lack of standards and rigor, an absence of tough decisions, or a tolerance for mediocrity. In addition, moving away from the hierarchy quadrant was interpreted to mean fewer sign-offs on decisions, less micro-management, and eliminating paperwork. It did not mean lack of measurement, not holding people accountable, and not monitoring performance.
2. Identifying stories. Since organizational culture is best communicated through stories (Martin, 1992; Martin, et al., 1983), a second step in the culture change process is to identify one or two positive incidents or events that illustrate the key values that will characterize the organization’s future culture. That is, real incidents, events, or stories are recounted publicly in order help individuals capture a sense of what the culture will be like when the new culture is in place. What will the new culture feel like? How will people behave? What is an illustration of when something consistent with preferred future culture has occurred in the past? The key values, desired orientations, and behavioral principles that are to characterize the new culture are more clearly communicated through stories than in any other way. Not only do these stories help clarify the culture change, but individuals are less anxious about moving into an unknown future when they can carry parts of the past with them. When the parts of the past being carried forward are examples of best practices, peak performance, and aspirational levels of achievement, organization members are motivated to pursue them, they are clear about what is to be accomplished by the change, and they can identify with the core values being illustrated.
In the organization illustrated in Figure 3, the most common and motivational story associated with the preferred future culture was of a special project that had recently been accomplished approximately 75 percent ahead of schedule and 80 percent under budget with extremely high morale and identification among employees. Numerous examples of innovation and entrepreneurship made that achievement possible. In fact, the watch cry was, “Make the impossible possible” in the project team. Elements of that story were used to illustrate what the organization as a whole was shooting for as being indicative of their future culture.
3. Determining strategic initiatives. Strategic initiatives involve the activities that will be started, stopped, and enhanced. They are actions designed to make major changes that will produce culture change. What new things must be begun? What activities will be stopped, or what would have been done that will now not be done as a result of the culture change initiative? Most organizations have much more difficulty stopping something than starting it, so identifying what won’t be pursued is a difficult but critical step. What resource allocation changes does this imply? What new resources will be required? What processes and systems need to be designed, or redesigned, to support the change initiatives? In what ways can the organization’s core competencies be leveraged and magnified so that the culture change produces a sustained competitive advantage?
Identifying what is to be started is a way to help the organization think of strategic initiatives that have not been previously pursued. Identifying what is to be stopped helps focus resources and energy so that non-value-added activities—usually characteristic of the previous culture—will not inhibit the change process. Identifying what is to be enhanced implies that some activities being pursued currently can engender change if they are enhanced with more resources, more attention, or more leadership.
Examples of strategic initiatives in the illustrative case in Figure 3 include the development of a leadership development program, a unique employee ownership program, and a budgeting process that set aside funds for entrepreneurial ventures and experimentation within the company.
4. Identifying small wins. The rule of thumb regarding small wins is to find something easy to change, change it, and publicize it. Then, find a second thing easy to change, change it, and publicize it. Small wins are immediate actions that represent baby steps in the direction of culture change. They can be implemented immediately, but none of them by themselves represent substantial change. Small successes create momentum in the desired direction, inhibit resistance--since seldom do people resist small, incremental changes--and create a bandwagon effect so that additional supporters get on board. When individuals see that something is changing, even if it is small in scope, a sense of progress and advancement is created, and that sense helps build support for the larger and more fundamental changes. The biggest mistake made by organizations instituting a small wins strategy is that the first two steps are achieved but not the third. That is, small changes are initiated but they are not publicly acknowledged and celebrated. The publicity accompanying the small wins is the chief momentum creator.
In the illustrative case (Figure 3), part of the culture change effort involved the dismantling of an old program, including some physical structures. Certain of these visible physical structures were dismantled even though doing so was not a necessary part of the new strategy nor did their demolition create any particular advantage. The removal of the structures was simply part of a small wins strategy—to show progress, create a sense of momentum, and build support for the larger initiatives. Other small wins included things as simple as changing a color scheme in buildings, painting offices, decorating work spaces, and eliminating (or creating) special parking spaces.
5. Craft metrics, measures, and milestones. Determining the key indicators of success, what to measure, how to measure it, and when certain levels of progress will be noted is a crucial part of the change process. An important shortcoming in most change processes, especially when the target of change is as soft and amorphous as organizational culture, is the neglect of hard measures of achievement and progress. Change requires the identification of indicators of success in culture change as well as interim progress indicators. A data gathering system needs to be designed as does a time frame for assessing the results. What gets measured gets attention, so the key initiatives and outcomes must have metrics and measuring processes associated with them. Of course, overloading systems with multiple measures is a sure way to kill change initiatives, so the key to good metrics, measures, and milestones is to identify few enough to be helpful, attach them to decisions and resource allocations, attach them to the key levers and indicators of change, and ensure that they are understood by those involved in the culture change process.
By way of example, the organization in the case illustration specified times for specific changes to be completed, designed follow-up and reporting events, and developed mechanisms such as a monthly interview program in order to ensure that individuals and organizational units followed through on personal commitments and assignments.
6. Communication and symbols. It is certain that resistance to culture change will occur in organizations. Individuals’ basic way of life will be challenged and changed, and familiar territory will be altered. Fundamental aspects of the organization will be changed, so culture change is sure to generate stiff resistance. Communicating the culture change process, therefore, is a critical tool in helping to overcome resistance and generate commitment. Explaining why the culture change is necessary and beneficial is probably the most vital step in generating commitment. Research suggests that people tend to explain “why” to people they care about and hold in high esteem. They tend to tell “what” to those they care less about or hold in low esteem. Explaining “why,” therefore, communicates both caring and esteem to those involved in the culture change process.
Sometimes in order to make a case for change, the current or past state is criticized or denigrated. The problem is, most organization members were a part of the previous condition as well as part of the future culture change. Criticism of the past diminishes commitment because it is interpreted as a criticism of organization members’ previous best efforts. Instead of criticism, holding a funeral—celebrating the best of the past but outlining a future in which certain parts of the past will not be carried forward—is a more effective way to move past aspects of the old culture that will be buried and left behind.
Building coalitions of supporters among key opinion leaders, involving individuals most affected by the changes, and empowering individuals to implement aspects of the change process are also ways to help reduce resistance. Sharing as much information as possible on a regular basis, and as broadly as possible, helps inhibit the tendency people have to make up their own information in the presence of ambiguity or uncertainty. Reducing rumors by providing factual information, providing feedback on initiatives, and holding public events to share up-dates are all ways to engender support.
Finally, among the most important initiatives that accompany culture change is a change in symbols. Symbols are visual representations of the new state, so identifying symbols that signify a new future is an important part of culture change. Symbols help organization members visualize something different, provide a new interpretation of the organization, and provide a rallying point for people supportive of the change. New logos, new structures, new events, new charters, or other symbolic rallying points can be used.
The organization in Figure 3 produced video tapes featuring individuals working on the culture change to highlight progress in the change efforts, held regular town meetings to share up-dated information, sent teams of representatives to various parts of the organizations to address questions and hold focus groups, and created numerous symbols—including specific company songs—signaling the successful culture change initiative.
7. Leadership development. All organizational change requires leadership, champions, and owners. Culture change seldom occurs randomly or inadvertently in organizations, and it requires leaders who are consciously and consistently directing the process. A great deal has been written on the role of leaders in change processes, of course, and a review of change leadership principles are not repeated here. However, two key points should be made. One is that each aspect of the culture change process—for example, each strategic initiative, each communication process, and so forth—needs a champion or someone who accepts ownership for its successful implementation. Accountability is maintained best when specific individuals are designated as owners of the initiative—and an array of owners helps ensure broad participation and commitment. Second, not only must current leaders champion the culture change, but a cohort of future leaders must be prepared to lead the organization when the culture change has been put in place. The new leadership competencies that will be required in the preferred future culture must be specified. Differences between current leadership and future leadership requirements should be articulated. Then, learning activities, developmental experiences, and training opportunities must be put in place to develop the needed leadership competencies. Selection processes must be aligned with the strengths needed in the future culture, not just the way things are at the present time.
The organization illustrated in Figure 3 implemented activities such as the following to help ensure that sufficient bench strength existed in their leadership ranks to lead the transformed organizational culture: (1) on-going 360 feedback processes with sponsorship and coaching, (2) formal mentoring by (mainly) senior executives, (3) management development and training programs, (4) assigned reading material outside the normal work-related material, (5) attendance at professional conferences each year, (6) a formalized support group for high potential leaders, (7) developmental and stretch assignments at work, (8) non-work service opportunities aimed at giving back to the community.