CULTURE

ROADMAP
Creating a Corporate Culture

WARM-UP
1.

How would you describe the organisational culture?

2.

What problems can you see affecting the organisational

culture?

3.

What strategy would you use to manage the existing problems

with the companys organisational culture?

Watch: http://www.youtube.com/watch?v=EhXcgHVUJ3o

OBJECTIVES
Describe the principal phases of the culture change roadmap
including sequence of major tasks/activities and deliverables
associated with each phase of work.
Explain the key levers for facilitating culture change and explain
how to influence them in support of desired change.
Identify the key success factors and potential risks associated
with executing the culture change roadmap

SUCCESSFUL CHANGE
NEED
FOR
CHANGE

Opportunities
Dissatisfaction
Urgency

CLEAR
VISION

Change goals
Desire future state
Attractive/compelling

CLEAR
STEPS

Priorities
Transition plan
Implementation
plan

BELIEF THAT
CHANGE IS
ACHIEVABLE

COST OF
CHANGE

Skill development
Leadership modeling
Early successes
Involvement opportunities
Build optimism and
confidence
Adapted from Beckhard & Harris, 1977
based on Gleicher,(
1966)

CULTURE
(REALIGNMENT)
ROADMAP

CULTURE
REALIGNMENT
LEVERS

Case Study

CASE DESCRIPTION
Healthcare company (not-for-profit)

Owns and operates 32 acute care hospitals in four states

Offers own health plan in 2 of 4 states
2010 Revenues = $14.6 billion
Medicare and Medicaid represent about 35% of total revenues
Over 11,000 employees
Health care reform (Affordable Care Act 2010) key driver of
new strategy and key initiatives comprising it (new business
model)
Cost
Quality
Public Policy
ACOs (Accountability Care Organizations)

CASE: KEY ELEMENTS OF NEW

STRATEGY

Form new partnerships & collaborations

Urgency to reduce operating cost structure

Invest in new technology
Integrated, streamlined, easy to use, customer friendly business
processesget rid of manual workarounds and unnecessary
variations/duplicative processes
Increased and strengthened shared accountabilities
Bring new products/services to market faster
Greenfield type innovation in integrated care management
identified Strategic Enablerspeople, technology, reputation
Great place to work, operating processes, rewards
Culture enables strategy execution

CONSULTANT INTERVENTION
DISCOVERIES

Initial communications sent out by SVP HR about the culture initiative launch
SVP HR views culture initiative as her legacy to organization and as key
element of people strategy
Mixed levels of executive team commitment to the initiative (ranging from
strong enthusiasm to skepticism to apathy)
Executive team and Culture Work Team (mid level managers, front line
supervisors, staff) already designated to perform future culture definition
work
Skepticism/cynicism among Culture Work Team members about leadership
commitment
Many examples of failed past change initiatives
Five years plus of low to moderate levels of employee engagement scores
(consistent high in support of mission)

GROUP EXERCISE. CONSULTANT

INTERVENTION
1.What issues/risks do you believe need to be addressed &
managed?
2.What actions would you take to address/manage these?

CULTURE
(REALIGNMENT)
ROADMAP

A. ESTABLISH OVERSIGHT TEAM

Executive leadership team or subset of executive team
combined with next levels of selected leaders (multi-function)
Administrative & analytic support staff
Primary functions and role includes:

Become educated about culture and how it can be shifted

Guide & manage the effort (strategies & plan)
Ensure appropriate resources allocated
Business Case development/rationale
Communications strategy and execution
Active sponsorship

Define Preferred Future Culture

B. DEFINE PREFERRED FUTURE

CULTURE
What is required for future business success
Serves as vision for realignment effort
Defines key characteristics
Identifies selected practices and behaviors that represent/define each
characteristic
May include affirmation or reframing of core values (ensure continued
relevance)
Initiates and frames exploration of leaders held assumptions and beliefs
Methodology options:
Individual or small group input
Large group session

Key Issue: How to build broad based ownership

PREFERRED FUTURE CULTURE PROFILE:

NOT-FOR PROFIT HEALTH CARE
COMPANY

STRATEGIC FRAMEWORK EXAMPLE

ADDITIONAL EXAMPLES OF PREFERRED

CULTURE CHARACTERISTICS
Strategic Mindset
Business Ownership
Persistence
Resilience
Boldness
Care & Compassion
Results Focused
Customer Centric
Continuous Learning

Current Culture
Audit

CULTURE AUDIT METHODS: SURVEYS

VS. QUALITATIVE INQUIRY
Surveys
Pros
Low cost data collection
Large sample sizes
Reliability of measures
Comparative normative data
Cons
Preconceived
categories/typologies
Very general & high level
Fails to get at beliefs
Misses dynamics of culture

Qualitative Methods
Pros
Obtain in-depth & nuanced view
of the culture
Can delve to cultural beliefs
level
Able to identify cultural
dynamics
Cons
Labor intensive & higher costs
Smaller sample sizes
Lack of consistent framework

THE 5-WINDOWS CULTURE

ASSESSMENT FRAMEWORK

METHODS OF INQUIRY: COMBINING

ETHNOGRAPHIC & CLINICAL
TECHNIQUES
Purpose: Establish baseline for comparison with defined
future culture

SAMPLE CULTURE INQUIRY

What descriptors, adjectives, or analogies best describes what its like to
INTERVIEW GUIDE
work here?
How is success defined?
How makes for an effective leader here?
What do newcomers need to learn quickly to be successful?
What is the biggest mistake someone could make here?
Tell me a story that you have heard about a heroic effort or major
blunder. What message do you derive from this story?
What are some of the key traditions or recurring events that take place?
How are goals and priorities set here?
How do important decisions get made here.
How do you learn about important information?
I am curious about some things I have observed and would like you to
help me understand what these mean? For example..
To what extent is each value practiced? What is an example?

ESPOUSED VALUES VS. VALUES IN

ACTION
Espoused Valuesvalues articulated in published documents
Values In Actionwhat is conveyed in formal & informal
practices, behavior and action
Key Issues:
What is extent of congruence?
What are examples of practices/behaviors?

CASE STUDY: PREFERRED FUTURE

CULTURE CHARACTERISTICS
Agile
Capacity to shift course, swift afoot, & maneuver quickly
Anticipating and being preemptive, quickly responding to markets, customers,

patients, and each other

Flexibilitynot being overly rule bound
Timely decision making (no wasted efforts)
People act in empowered manner with sense of accountability
Being incisive in face of uncertainty/tolerance for ambiguity
Safe to make a mistake
Embracing change

CASE: CURRENT CULTURE

Need to ask for permission before acting
DATA (AGILE)
Multiple layers of approval/ built in controls/hurdles & hoops

Need data based evidence to support ideas and points of view

presented
Perfectionist
Senior leaders viewed as trying to catch you make a mistake
(Operations Management Review --OMRs)
Fear of reprisals or retribution that are not grounded in reality
Intellectual competitivenesswho knows more and who is right
Open or public disagreement with senior leaders stifled
Restricted autonomy (viewed by top as lack of initiative)
Turf protective/silosinformation shared well within business areas

GROUP EXERCISE: CURRENT VS.

FUTURE CULTURE ANALYSIS
1. What beliefs and assumptions appear to underlie the
current culture data presented?
2. What steps would you take, or actions would you
recommend to address the potential delta between
the current and preferred culture?

C. LEADERSHIP ALIGNMENT
Consensus and shared commitment:
need for change
nature and scope of required change
Requirements for change in own behavior

Includes top three leadership levels

Firm accountabilities and expectations established
Use of multi-rater feedback process to establish baseline &
individual level action plans

CASE: CURRENT STATE OF TOP

LEADERSHIP ALIGNMENT (INTERVIEW
DATA)
We cannot execute our new strategy
without changing our current culture.
Not sure we need culture change maybe just climate change.
Culture influences who we attract and can retain.
We cannot stay in business if we do not change our culture.
Hard to get behind this without knowing what it is.
We may need to change but right now we are very profitable.
What are we really trying to accomplish here.
Is the culture we need to change or simply some of the ways we manage
our business.
I think we agree that some things need to change, but not sure we agree
on what.
Not sure we are in agreement on the new strategy and its priorities.

GROUP EXERCISE: LEADERSHIP

ALIGNMENT
1.What key alignment related issues do you identify?
2.How might you frame a discussion among the LT to address
these.
3.What additional actions might you recommend?

CULTURE
(REALIGNMENT)
ROADMAP

CULTURE
REALIGNMENT
LEVERS

M&A CULTURE INTEGRATION PROCESS

CULTURE INTEGRATION ANOTHER

VIEW

Q&A