Some management consultants claim that you can’t change an organisation’s culture.
This is nonsense.
Numerous other management and change consultants claim they can change an organisation’s culture.
This too is nonsense.
You can change your organisation’s culture … from the inside.
Indeed, a leader’s responsibility includes Shaping their Organisation’s Culture.
I am going to share two successful stories of leaders driving change in their companies. On both occasions, I was engaged as an external consultant with the brief to co-design and facilitate the process and selected interventions.
Engineering Inc.
From a loss-making conflict-ridden environment where indifference and lack of trust reigned, to a profitable integrated company with engaged employees. The company is now a unit in a global corporation and a Centre of Competence for its product line.
The Situation: A new CEO had recently been appointed to a company which had changed owners 3 times and been making losses for 8 years. The environment was poisonous: chaotic production processes, cynical, continuous conflict with customers due to delivery and quality issues, abuse of the system by middle managers who themselves were not trusted by the production engineers and technicians. Closure was a possibility with 300 jobs at risk.
Changes and Process: Three new engineers were brought in to fill critical positions: Chief Engineer, Senior Project Manager, Site Manager. We conducted individual interviews with all managers, held focus groups at all levels, engaged the works council. Product demand fortunately was not an issue. Customer relations unfortunately were a serious problem. The CEO appealed for support. He laid out a clear strategy with a message of the environment and changes needed to continue operating. Changing the focus from inward (protectionist silos) to outward (the whole business with customer needs as focus) we used strength-based approaches to realign around real business Questions, whereby employees were invited to contribute. The production and logistics process was changed completely; skills deficits were alleviated; product design now involved production; the management team began to work as an integrated unit; employees wanted to contribute to improvements. Three middle managers who resisted the changes were forced to leave. Additional jobs were created in production as demand rose. Within two years, the site was making a profit.
Key Change Success Factors: The need: without change, the company was in serious danger of closing. Leadership: A driven leader who everybody trusted – he was visible, approachable and walked the talk. His messages were clear and he listened. Involvement: People learned not only that their contributions were desired, they experienced that the invitations they received were genuine.
Finance Inc.
From a small sleepy company in which employees had a lackadaisical approach to their work and customers, to a dynamic market leader whose customers praised service quality.
The Situation: A small specialist data processing company was acquired by a global corporation. A new CEO was installed together with two experts from the parent company. The environment was friendly and relaxed. There was little engagement, people worked with an eye on the clock, problems were referred to management, error rates were high, clients were irritated.
Changes and Process: The new CEO laid out clear guidelines, expectations and his vision of potential opportunities. All employees were invited to play an active role in working groups that defined and implemented new more efficient practices and new customer interface processes. Customer orientation was prioritised. The two new specialists were appointed to lead functional units, otherwise, the only hierarchy was towards the CEO. Processes were defined, personal and team responsibility was expected, engagement levels improved significantly, the environment was noticeably more dynamic, problems were solved at the level at which they occurred, customer satisfaction indices increased dramatically. Within two years, the number of employees increased three-fold as new clients came on board.
Key Change Success Factors: Leadership, Trust and Recognition: Clear consistent Leadership; clear guidelines; employees felt valued and freer. Involvement: employees were able to see the impact of their contributions.
Culture is the continuously evolving dynamic interaction of the mindsets and gutsets of all the actors in the system. It is the Soul of the Organisation that drives the behaviours we observe.
In many if not the majority of organisations, observed behaviours reflect not the values of the people within the organisation, but those hidden values of the organisation as a system, frequently driven by inappropriate leadership. By inviting and encouraging the people to engage with the system, leaders can lead a change from a negative to generative culture. Indeed, this is their responsibility.
And in the fast changing world of the early 21st century, shaping an adaptable organisational culture is becoming a survival essential.
Yes … You Can … Change Your Organisation’s Culture!
By: Eric Lynn from CultureQs
Self selection – How to restructure your team for greater autonomy.
One of our largest departments within Ocado Technology recently undertook a revolutionary self-selecting restructuring exercise, changing the entire structure of the department whilst allowing all team members to choose which team they would like to work in going forward. The need came about because multiple teams were stretched, working across two major business propositions and context switching between them. The goal was that following the restructure there would be a clear split between teams working on two different business propositions, such that each of those teams could really focus on that product.
The overall aim of this restructure was to achieve greater alignment, autonomy and purpose.
Following the principle that a collaborative and distributed approach is often the best way to solve a complex optimisation problem, we decided to take a full day as a whole department to stop work and have a facilitated event to negotiate the moves amongst the five new teams. We did a lot of thinking and preparation prior to this day and the teams used a set of constraints around team size and experience levels to guide their decisions.
The plan going into the event was shared well ahead of time to allow people to get their questions in (and added to a shared FAQ forum) and to be sure the concepts were clear going into the day. Alongside this, we ran multiple “townhall” sessions where people could air their concerns and ask their questions openly. We hoped that at the end of the process we would have well-rounded, committed teams ready to face the new challenge.
There was a certain amount of ad-libbing and practical adjustments on the day, but on the whole it unfolded according to the plan:
– First, a pitch for each team by the Product Owner, covering the vision/roadmap and why the team is super cool and awesome. There was also a set of target criteria for each team as a guide for what we were looking to achieve in each area.
– Next, multiple iterations where we:
1. Assigned or moved ourselves/each other between teams until we’ve addressed any identified issues in the previous iteration.
2. See if we had met the pre-defined criteria for each team.
3. Repeat until we run out of time or we meet all of the requirements and everybody is happy and committed to the team that they are in.
Fuelled by 18 pizzas, we completed three exhausting rounds of moves and peer voting. At the end of each round, we (everyone, including Product Owners and Team Leads) voted on the viability of each team. From this we measured two scores: an intra-team score (the people in that team scoring the viability of the team), and an inter-team score (the rest of the people scoring the viability of that team). This lead to a few interesting dynamics, for example one of the teams gave themselves a high intra-team score, but scored low on the inter-team vote. They then gave a pitch justifying their viability as a team, and were able to dramatically increase their inter-team score in the next round.
The first round was deliberately obviously suboptimal, so that everyone was motivated to suggest changes and improvements and become comfortable with doing so in a very “safe” way. Naturally, this configuration had dramatically lower scores! This encouraged a large amount of movement in the following rounds, as we had hoped.
Essential to finding a viable solution was an appreciation from all of the ‘greater good’ of Ocado Technology. On the day, some people chose to make some really big compromises in order to serve the greater good and allow us to form balanced teams that are all capable of smashing out quality software.
After the final round of voting we then took a quick anonymous happiness reading by each dropping a green, yellow or red lego piece into a box. Although they were not perfect, we were extremely pleased the results, considering that our original goals was “at least 50% happy”.
The very next morning we did a big-bang desk move:
We’ve since kept a close eye on the impact of the shuffle-up by measuring the things that matter most to us: throughput and team happiness. There was an expected initial dip in throughput as many people got up to speed on new products they had not worked on before and as new teams gelled and got to know each other. But the throughput three months on has risen higher than before the change and still rising. Improvements in team happiness (measured before and after by Spotify’s “health-checks”) were noteworthy from straight after the restructure.
In terms of the solution itself: we are delighted. Every team has a reasonable level of experience whilst a healthy number of people have chosen to change domain. It is a vastly better result than we could have hoped for had we chosen a top-down approach and the sense of autonomy it has created is invaluable. It seems that teams and individuals have a stronger sense of ownership than ever before and that they are taking quality more seriously than ever before. This did have an up-front cost in terms of short term throughput, but the long term benefits certainly justify it.
James Lohr, Ocado Tech Department Head
Gig Economy
You could drive yourself steadily insane compiling a list of all the trends that were supposed to fundamentally reshape business. Once upon a time we were all “flexi” workers, then “mobile learners”. Both terms seem antiquated now, the corporate equivalent of a Segway – perfectly sensible in principle but somehow faintly ridiculous in reality.
What makes the “gig economy” – the legion of individuals taking on piecemeal work, enabled by online talent platforms – feel different is that it’s being driven not by hip early adopters in co-working spaces (though there are plenty of them involved too) but by genuine need, both in the “real” economy and, crucially, in boardrooms.
If you were staffing a major new project from scratch today, it would seem an act of faint lunacy to bring in a raft of full-time employees with cumbersome overheads (and personal taxes) when you could go online and find experienced, verifiable individuals you could pay by the hour and dispose of when required. Similarly, if you were a coder, IT contractor or other technical specialist, why would you harness yourself to one organisation when you could enjoy both variety and a more lucrative income hopping from gig to gig (along with the attendant tax advantages of being self-employed)?
So many businesses are waking up to this recalibration that 450,000 people with full-time jobs now have second jobs, many of them via TaskRabbit, Elance or their multitude of competitors. PwC has tried to cut out the middleman by setting up its own talent “market” of registered suppliers its offices can bid on. There are individuals in greater London making a handsome living assembling flat pack furniture on a piecemeal basis for an hourly rate – an occupation that would have been almost logistically impossible just a couple of years ago.
You can understand the appeal of living by the gig, beyond the financial benefits. The conventional career has been an awkward fit for many people over the years, and few jobs are capable of maximising all our skills and intelligences. Besides, most work is boring, which is why those lucky enough ever to have had a job for life employed the conversational repertoire of the prison system (“putting in hard graft”, “serving your time”) to describe it.
Gigs, by contrast, are exciting and ever-changing, even though they ask some deep questions of the psychological contract (why would I exercise discretionary effort for a business that only employs me for a matter of days? Can I trust someone who could work for my biggest rival tomorrow?). But they aren’t an untrammelled good, either. For every actuarial scientist earning a small fortune for a short-term job, there’s a hotel chambermaid who is now being paid by the room rather than the day. The huge rise in self-employment in the UK has as much to do with businesses shifting such workers – we should include the small army of couriers and delivery drivers in this calculation – off their books as it does people discovering new freedoms. Palpably, none of them are enjoying the benefits of the gig economy, not least because they cannot practically control where and how they work. They are left, instead, to feed on scraps.
Uber, the erroneously attributed poster child of the gig economy, faces a legal challenge over whether its drivers are technically employees. It maintains they are self-employed. This is a vital point for the courts to consider – cycle couriers and plumbers are engaged in similar cases – but in Uber’s case we should also note that it controls the supply of drivers into the market, and their pricing. This is assuredly not the “freedom” gig economy enthusiasts speak of.
Governments will have to decide the legal and ethical boundaries of such behaviours, not least because if gigs take off, their tax revenues will rapidly vanish. Already, there is serious talk of the need for a third kind of classification, between “employee” and “self-employed” which recognises the shared responsibilities (both financial and relating to holidays, sick pay and other benefits) between giggers and those they work for.
Pioneers like Wingham Rowan, who runs the Beyond Jobs consultancy, are trying to imagine a market that will ensure the gig economy brings mutual benefits and conveniences without being open to abuse. Businesses who want to enjoy the flexibility such arrangements provide should not absent themselves from such discussions – but neither should they fear this will turn out to be just another fad.
By: Robert Jeffery, Editor of People Management magazine
