Diagnosing and Changing Organizational Culture Chapters 5 - 7

1
Diagnosing and Changing Organizational Culture
Chapters 5 - 7

• Amanda Pine
• Dave Schuld
• Kevin Russo
• Marsha Parker

November 13th, 2006
2
Overview

• Provide a framework for implementing a change
  process.
• Foster cultural transformation
• Align personal managerial behavior with cultural
  change

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Chapters 1-4 Summary

• Chapter 1
• Need for organizational change
• Chapter 2
• Organizational Culture Assessment Instrument
• Chapter 3
• Competing Values Framework
• Chapter 4
• Constructing Organizational Culture Profile

4
Chapter 5 Using the Framework

• Tool used to diagnose and initiate change
• Identifies what needs to be changed
• Relies on dialogue among individuals
• Identifies key characteristics of a culture

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Initiating Organizational Culture Change
2. Reach consensus on desired future
culture Focus on desired culture
1. Reach consensus on the current
culture Individuals meet to generate a consensual
view of Organizational culture
3. Determine what the changes will and will not
mean Identify what it means and what it does not
mean to emphasize or deemphasize a certain
culture type
Desired culture
Current culture
6. Develop an Implementation plan Identify the
few key ways that the culture change process will
unfold
Culture
Implementation Plan
Changes will mean or not mean
Change
Strategic Action Plan
Illustrative stories
4. Identify illustrative stories Characterize the
new organizational culture through stories
5. Develop a strategic action plan Determine
specific actions to be taken to foster the
desired change
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Step 1 and 2 Plotting the Current and Desired
Organizational Culture
Cultural profile
Clan culture
Adhocracy culture

• Dynamic, entrepreneurial and creative
• place to work
• Leaders are innovators
• Emphasis on leading edge
• Success focused on acquiring new
• resources

• Very friendly place to work
• Leaders are mentors
• Emphasize cohesion morale
• Premium on teamwork
• Focus on consensus

Hierarchy culture
Market culture

• Structured place to work
• Formal rules and policies
• Concern on stability
• Success focused on dependable
• delivery and scheduling
• Leaders are good coordinators

• Results oriented organization
• Leaders are driven
• Emphasize on winning
• Success defined in terms of market
• share
• Organizational style is hard-driving
• and competitive

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Step 3What cultural change will mean or not mean
Adhocracy culture
Clan culture
Increase
Increase
Decrease
Decrease
Remain Same
Remain Same
Means
Means
Does not means
Does not means
Hierarchy culture
Market culture
Increase
Increase
Decrease
Decrease
Remain Same
Remain Same
Means
Means
Does not means
Does not means
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Step 4 Identify illustrative stories

• Key values and principles of the organization can
  be seen in action
• Desired values are emphasized to new as well as
  existing employees

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Step 5 Develop a strategic action plan
Adhocracy culture
Clan culture
What should we do MORE of? What should we
START? What should we STOP?
What should we do MORE of? What should we
START? What should we STOP?
Hierarchy culture
Market culture
What should we do MORE of? What should we
START? What should we STOP?
What should we do MORE of? What should we
START? What should we STOP?
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Step 6 Develop an implementation plan
Learn
Use
Inspect
Teach
Learn
Inspect
Use
Teach
Learn
Inspect
Use
Teach

• Group members are exposed to information four
  times
• When they learn the principles
• When they use them
• When they teach them
• When they inspect someone elses participation

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Chapter 6 Individual Change as a Key to Culture
Change

• Step 1 Critical Management Skills for each
  quadrant type
• Step 2 Management Skills Assessment
  Instrument
• Step 3 Comparing Individual MSAI results to
  ideal Critical Management Skills

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Critical Management Skills
Culture type Adhocracy
Culture type Clan
Managing innovation Managing the
future Managing continuous improvement
Managing teams Managing interpersonal
relationships Managing the development of others
Culture type Hierarchy
Culture type Market
Managing acculturation Managing the control
system Managing coordination
Managing competitiveness Energizing
employees Managing customer service
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Management Skills Assessment Instrument (MSAI)
Handout
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Chapter 7 A Condensed Formula for Organizational
Culture Change

• Diagnosis
• Complete Organizational Culture Assessment
• Compute organizational culture profile (current
  and desired)
• Hold a discussion regarding culture
• Compare profiles of current and desired

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Chapter 7 A Condensed Formula for Organizational
Culture Change

• Interpretation
• Plot each question on OCAI
• Draw conclusions
• Identify what culture changes need to occur
• Identify what it means and what it does not mean
• Reach consensus on which actions should be
  started

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Chapter 7 A Condensed Formula for Organizational
Culture Change

• Implementation
• Identify a few key steps that can be implemented
  right away
• Design a communication strategy
• Identify the various aspects of the organization
  that must be changed (Seven Ss)
• Personalize the culture change
• Assist team members in identifying personal
  changes that will support the culture change

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Discussion questions

• What are the steps for charting organizational
  culture change? (pg.90)
• How will the OCAI instrument assist in
  facilitating and implementing a cultural change?
  (pg.83)
• What are the four cultural types that can exist
  in an organization? (pg.94)