Yes … You Can … Change Your Organisation Culture!

Apr 19, 2016 by lsmit@wemanity.com in  Blog

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

Yes … You Can … Change Your Organisation Culture!

Our office is closing! We can do better than just despairing

Jun 02, 2016

 

 

In March 2015 we received the bombshell from our U.S executives that our office in Oxford was to close as part of a long-term global consolidation of sites with some staff being offered relocation and the others made redundant. The products needed to continue, but how could we avoid the remaining time just being miserable?

Staff were asked to complete their current work and assist with knowledge transfer to the remaining development offices in the USA and India. The previous few years had seen good progress with agile and lean software development, customer satisfaction had steadily risen and staff turnover had been extremely low. So the closure announcement was a body blow. The chance of the announcement being taken badly was all too real with the risk of the situation disintegrating into a depressing mess.

The Oxford management team had the difficult task of trying to make the best of the situation and get the best outcomes for both staff and the company. One year on, the results so far have been remarkably positive. We can therefore make some recommendations for anyone else in this situation, some of which are also worth considering for companies during normal operations.

Actions taken

  1.  Long notice period – We managed to agree 18 months’ notice of the final closure.   This was necessary to complete current work and have an effective handover so that the complex medical imaging software products could continue. However, it was a very long time to hope that people would stay so other measures were needed.
  2.  Generous redundancy packages.   These were agreed at a level which impressed staff. With their tax-free nature, this gave people confidence that even if they didn’t find another job immediately, they would not have any financial worries for a few months.
  3.  Relocation support – Real commitment was shown to staff to find them other places within Siemens. This included generous relocation packages, funded exploratory visits for staff and families, advice from locals and flexible move dates. This was not cheap, but the cost was much less than hiring and training somebody new.
  4.  Voluntary end dates – Rather than imposing end dates, staff were asked to openly express whether they wanted to stay 6, 12 or 18 months.   It’s very hard to predict how people will react so it was better to try to align individual’s needs with business needs. Almost 100% of people got they end date they wanted, most opted for the longer duration and the company had adequate cover.
  5.  Keeping a training budget – Staff were given encouragement to still do training and qualifications.  The company would still get some benefit from the training in the short-term, it would help staff with finding a new position, but mostly it helped reassure staff that they could stay and still develop themselves.
  6.  A larger entertainment budget – It was important for people to socialise and support each other so there was an increase in company-funded drinks, lunches and a bigger-than- normal Christmas party.
  7.  Help with job-hunting – Staff were allowed to take some time for interviews and encouraged to have an open discussion on opportunities with support given to try to accommodate people’s wishes where possible.   External consultants were available to advise on interview techniques, CV-writing and job hunting.
  8.  Effective use of employee representatives – Rather than just fulfilling a legal requirement, a real effort was made to engage with the elected employee representatives, create a detailed FAQ for staff and share all information on the intranet.
  9.  Continued staff recognition.   The office was required to operate properly for an extended period so it was only fair that staff should be treated normally and retain the opportunity to still achieve an above-target bonus and the opportunity for promotion.
  10.  Management care – The managers have been very open, honest and helpful to the staff and shown genuine care and empathy for people and their circumstances.  This probably made the biggest difference and enabled so many of the positive results.  A site closure can be viewed by staff as a big breach of trust, so asking staff to believe promises about arrangements during the remaining period is a challenge and requires lots of reinforcement, consistency and ensuring that was is said is done.

Results

  1.  Staff morale – This went through the inevitable rollercoaster of shock, anger, worry then acceptance.   People were annoyed or upset at the decision, but overall viewed the offers as fair and professional.   Staff who had been through a redundancy before thought that the way this was handled was much better. Although losing colleagues is unavoidably sad, people have been positive about making the best of the situation.
  2.  Staff stayed until their agreed date – The long notice period and generous packages meant that most people were fairly relaxed about finding a new position and happy to leave serious job hunting until a few months before their agreed end date.  Whilst, it’s an imposed change for everyone, in some cases, staff have appreciated having the “luxury” of having an extended period with a financial cushion during which to calmly think about what alternative job they would really like to do in future. Staff have been open about their hunting and have discussed mutually agreeable end-dates before accepting offers.
  3.  Results still achieved. Work on products continued at a good level.  Inevitably people weren’t going the extra mile in quite the same way as they used to but were professional and productive.   Staff have been helpful in ramping up new recruits in India and continue to take pride in their products.  There have been no surprise, early, resignations or disciplinary issues.
  4.  A surprising number relocated. 25% of people relocated to the USA which was a lot higher than anyone originally expected since people liked being in Oxford.
  5.  Additional social events – The activity in the office “community” if anything picked up since the news with whisky tasting, a pool tournament, team nights out, a group cycle ride around town etc.
  6.  Peer-to- peer training – Staff have shown a great desire to support each other and proactively run open seminars for others in the office to share their knowledge with others (e.g. Sharepoint, Data Science, Android Programming, Arduino programming, Linux etc)
  7.  More cakes – We’ve always provided cakes on a Friday but the number of spontaneous cakes being brought into the office on other days has gone up.

Overall it has been a much more positive experience it could have been. The office morale is still good and the staff have received outstanding praise for their continued professionalism and dedication.

The results has been good for the company as there is a smooth handover taking place while ensuring that people are taken care of.   The actions above have not been cheap for the company in the short-term, but are ultimately delivering better long-term value than the alternative of instant site closure followed by disorder and a long period of rebuilding a new team from scratch.

Suggestions relevant for companies not closing

Whilst some of the topics are only relevant to a site closure, some things could be beneficial anytime.

  1. Management openness is always a good thing. It’s easy to forget the importance of explaining plans and listening to feedback. Make sure there’s time for group meetings, 1 to 1 sessions and occasional surveys.
  2. Peer-to- peer training is always very cost-effective so time and support should be given for this. Staff have a lot of varied knowledge and it’s motivating for both the trainer and attendees.
  3. Creative entertainment. It can be an easy area to cut, but pays back a lot. If people have a good social relationship with colleagues, they are much more committed to them and hence also the company. The entertainment does not necessarily have to be lavish e.g. a pool table and     tournament, an indoor mini-golf area made out of office accessories and text books, a pancake- tossing event on Shrove Tuesday etc. Something a bit different every few months keeps things fresh. Cakes, are always good.
  4. Look for the best outcome for both staff and the company given the circumstances. Arrangements with staff have to be fair to get the best results in the long-term.

By: Stephen Wells, Siemens Molecular Imaging, Oxford

Rejecting roles

Mar 29, 2016

Rejecting roles: That’s marketing’s job. You need to talk to IT.

Having roles is considered essential by most organisations. We’ve read dozens of business blogs, HR advice articles and even management training courses that insist clearly defined roles lead to better results, greater productivity and higher motivation. Without clear definition of roles, they warn that tasks get missed, no-one takes responsibility, the office is chaotic and individual motivation drops.

We disagree.

The writers of this advice have grasped the outcomes they want – people taking pride in their work, everyone focusing on delivering value, individuals coordinating and collaborating – but they’ve applied the wrong solution.

They’ve confused roles with responsibilities.

That may not sound like a big deal, but we think it is. Rigid role definition has some major downsides. We believe it hurts companies and individuals, costing them in creativity and happiness.

Most organisations intend their role definitions to be a way of signalling particular specialisations, expertise and responsibilities… but instead, the definitions swiftly harden into barriers, marking out territory which is defended against ‘interference’ from others. Have you ever been told to back off by the marketing manager for commenting on the new advert? Been refused access to the code base by the developers, ‘in case you break something’? Been told to leave presentations to ‘the sales guys’ or forecasts ‘the finance guys’? At the extreme, you may have your opinion rejected with a straight-forward ‘well it’s not your job to worry about x, it’s mine!’.

Individuals may also use their role definition as a way of avoiding unpleasant or boring tasks. This ‘that’s not in my job description’ approach ends up making the company less efficient as well as eroding team motivation. I remember organising a last-minute marketing stunt when I worked at Unilever. I was booking a double-decker bus to turn up and I wanted to check it would actually fit into the office forecourt. The marketing assistant nipped down to Reception to check. An hour later, she returned. The security guard had refused to measure the gateway and if it was beneath the dignity of a security guard, then she reckoned it was beneath the dignity of a marketing assistant as well. So I borrowed the security man’s tape-measure and checked the gateway (you could – quite literally – have fitted a bus through there). Anything wrong with doing my own measuring? Absolutely not. Anything wrong with wasting an hour of time arguing about whose job it was? Plenty.

Roles are comfortable – but bad for us

It’s very human to defend our own work and our own opinion. When we can dress this up with the authority of experience, expertise and organisational separation – all the better. Except it isn’t. Rigid role definition acts as a barrier and can stifle innovation. It can also make things slower and less efficient.

If a customer rings up with a problem, they want a solution, not to be told that only part of their problem can be dealt with by this department, and they must be passed on to billing or whoever to deal with the rest of it.

It’s not great for individuals either. Sticking to just one thing may mean our knowledge gets deeper, but also narrower.  We can get bored or worse, so convinced of our own expertise that we can’t take on other points of view.

Being Radical: Sticking to the start up way

In many start ups, a lack of defined roles is the default position. There is not enough money to hire specialists – instead developers must learn to present to investors, marketing managers must be able to create and manage their own customer data, and everyone must have a grip on the financial assumptions as well as a grasp of the their product (this often means some grasp of the technology).

When entrepreneurs look back on the early stage of their companies, they often comment on wistfully on the diversity of work and of how close to the customer it meant they were.

Jeff Bezos, CEO of Amazon, recalled being the ‘mailroom grunt’ in the company’s early days, driving books to shipping and courier companies in his 1987 Blazer. But this doesn’t scale, right? Jeff Bezos is not still doing deliveries. Actually, he is. He spends a week every year in the warehouse. It’s not a PR gimmick, because he refuses to set up interviews when doing it. It’s an opportunity to stay connected to his responsibility – leading Amazon – and not the role of CEO. That includes really understanding conditions for employees – something for which Amazon has received a lot of criticism – and staying close to core services like order fulfilment.

Another trick used at Amazon is to have individual employees who have no role at all. Bezos has ‘shadows’, people who simply follow him around. It means there’s always someone free to chase a wild idea or set up an experiment – and it recognises that a responsibility like ‘envision Amazon’s future’ requires several people, not just a single role.

So what should we do?

1. Responsibilities not roles

Some radical companies go for a very broad responsibility ‘provide value to the company’ and say that how this is fulfilled is up to the individual. Others go for more precise responsibilities: ‘help the customer’ or ‘make sure we comply with financial regulations’.

The point is that how you fulfil these needs can require doing tasks which, in other companies, would be seen as belonging to differing roles.

2. Trust people

A lack of roles makes people more responsible, not less. Tasks rarely get missed because everyone knows they have total responsibility for the work – no tester will come pick up the programmer’s bugs; no finance controller will correct over-optimistic projections.

3. Trust people some more

A lack of roles doesn’t mean that everyone will try to do everything. People naturally gravitate towards what they’re interested in and what they’re good at. If someone is convinced she’s a brilliant illustrator and everyone else insists the stick men cartoons are rubbish, she will soon stop.

4. Value dissent not consensus

No roles doesn’t mean you have to design by committee. Heated arguments are common, and that’s fine.  Even if people don’t agree at the end of the debate, the important thing tends to be to air the problem. Opinions can be rejected; a decision can still be made, risks can still be taken…

By: Helen Walton from Gamevy

Why we should lean into risk in Brexit Britain

May 10, 2016

I was going to write a blog about risk. I’d whip through the theory, focus on the practice, and back it up with science.

Then the referendum happened. And now, depending on your view, the country’s either deep in the mire, or free to succeed. The markets have crashed, but might bounce back. Hate crime is up, but might be a blip. We’re living in uncertainty, and we don’t even know how long it’ll last.

All of that feels uncomfortable and risky. So to write about risk without acknowledging the uncertainty around us feels a bit absurd. We’re already awash with political analysis, so I won’t add mine. But whether you’re delighted, devastated or unmoved by these events, it’s an interesting moment to take a look at the parallels with organisational and personal change.

Major change throws the status quo in the air. Before it settles, as it inevitably will, we can make some choices. We can pretend it’s not happening. We can choose to step back and see where the pieces fall. And we can choose to take a risk and lean into uncertainty. These are decisions organisations are making now – as they’ve done before and will again. Individuals are doing the same.

Unless you’re very lucky, pretending nothing’s changed will leave you baffled, and your colleagues disengaged. It’s also, counter-intuitively, a lot of effort. Our ability to adapt is part of what defines us as human. So while adapting might be hard, refusing to is exhausting. Sometimes, of course, the wisest move is to hold your horses and wait for a new normal. But you forfeit the chance to shape it, and risk being left behind.

Choosing to shake hands with uncertainty can be complicated and uncomfortable. It can also be profoundly creative. If you can lean into that, there’s scope to experiment with new ideas and products, have different conversations and make unexpected connections. You might fail, you might succeed, you might create something a bit… ‘meh’. But you only find out if you take the risk. And whether or not it’s sparked by external events, embedding a culture of testing, adapting and improving will reap benefits well into the future.

Thing is, it’s not easy. There’s a gap between intention and doing. And however much you want to, crossing it can seem boring, painful and hard work. And once you do cross it, there’s no guarantee it’ll work. Ugh. Why bother? It’s somehow easier to feel disrespected afterwards than to challenge in the moment. To feed back to your friends instead of your colleagues. To work within stasis than to venture an alternative.

But that ‘ugh’ is worth the bother. It’s when things shift, and when you learn. Plus you reinforce in yourself and colleagues that, whatever the outcome, you are people with the agency to create change. You’ll be more likely to do it again, helping build a culture of creativity in yourself and others.

So where to begin? Here are three initial suggestions.

1. Acknowledge fears, but don’t draw them out. Give yourself three minutes to project the potential range of outcomes from best to worst. Then begin, ditch or adapt. You’ll only find out what actually happens by taking the risk, so don’t waste time on the fundamentally unsound, or delay the great.

2. Solicit feedback; ask, listen, learn, adapt. And be specific: work out exactly what you want feedback on, and ask questions within a clear remit. This shifts the focus away from egos (easily crushed, despite denials) and towards ideas. Seeking feedback can feel like a massive risk in itself. But the more you do it, the easier and more useful it becomes.

3. Build networks. It’s exhausting taking a risk on your own and it takes ages. Talk to people who disagree: diverse opinion makes for robust ideas. And test the idea as soon as you can, drawing on your network for support. Make sure your network includes people unconnected to your idea, but who can help you reflect on progress and remain resilient. Action learning sets and peer mentors are ideal.

I’m not suggesting all ideas are sensible or risks worth taking. But change is definitely coming. New systems, new products and even new industries may emerge. I hope that as organisations and individuals we’ll be inspired to lean into risk when we encounter it. Start experimenting, adapting, innovating. The status quo has been shaken, and will rebuild. The space in between is yours to shape.

By: Kamala Katbamna from Chirp

http://www.chirp.org.uk/new-blog/2016/6/29/risk-taking-in-a-post-brexit-britain