Professional Documents
Culture Documents
CORPORATE
CULTURE
IN THE AGE OF
RADICAL
CHANGE
ITS ABOUT
CHANGE
CHANGE
CHANGE MANAGEMENT
AND
ORGANIZATION
TRANSFORMATION
Questions about change
e nt Res Know
in g
Ch
an
i tm ou r v s . N vs. ge
m m c e D oing o tc
Co Con What ha
e ef it ng
t i ta ti v t i nu b e n e
a n
Qu vs. Dis vs. ous os t /
rup G ra C
l it a t ive d Purpose
u a ti
Q on Ra vs. ual
W eep di Wh o ge
i n/ o w d c a an
Lo H l u ch
se Yo vs. ge
Why
c h an
i f I
t Le
ha a Con
k
W Fo vs. d fus
ion
Ris
llo
g e
w te rm
You chan Succ
ess M h o rt .
vs. n ea s
S vs erm
t
I change Whe urem
ent Lo n g
Different types of change
• Reactive/Proactive/Preventive
• Constructive/Destructive
• Continuous/Disruptive
The learning curve
* Method of Experimentation
1 Establish premise/hypothesis
True competence
2 Design & conduct experiments
3 Make observation & gather data
4 Analyze data & reach conclusions
5 Apply conclusions to real issues Practice & Feedback
Results
Discovery Insights
Unconsciousness
• Denial Experimentation*
• Certainty
• Righteousness
Curiosity
Time
Confusion
Paradigm shift and continuous
renewal process
Results
Time
The organizational challenges for a
growth company
•Strategy: Focus Vs Diversification, Profit Vs Market Share,
Build Vs Buy, New Products Vs New Markets, Old Vs
New Business Models, Risk Vs Rewards, Aggressive Vs
Conservative
• People: Attracting New Talents, Developing Existing
People, Managing the Misfits, Owners Vs Managers,
Founder’s syndrome, Leadership and Succession
• Structure: Hierarchy, Bureaucracy, Synergy
• Process: Complexity, Duplication, Internal-focused,
Disconnection, Speed, Quality
• Resource: Competition, Wastage, Idle
• Culture: Keeping the core values at the top, Inertia
The path of technological
development
Abundant
Region of High
Region of High Customer Power and
Product Vendor Power and Low Vendor Power
Functionality Low Customer Power (except if a monopoly
exists)
Dominant
Design
Scarce Emerges
Marketing
Innovation
Innovation Mix
Styling/ Enabled by
Packaging Both Cultural
Innovation Biases
Human Factors
Innovation
Enabled by a
Base-Product Innovation Product-
0% (such as performance, functionality, Innovation
size/portability, reliability) Cultural Bias
Acceptance Early Mainstream Maturity
Adoption Dominant Adoption
Design
Emerges
The cultural bias landscape
Strong
High-Tech MORE
Startups, Labs, INNOVATION,
Think Tanks, MORE CULTURAL
Artisans TENSION
High-Value
Product and Dominant
Service Design
Product- Companies Emerges
Innovation
Cultural Bias
High-Volume
Product and Service
Companies, Upscale
Retailers
LESS
INNOVATION,
LESS CULTURAL Distribution and
Logistics Companies,
TENSION
Discount Retailers
Weak
Business-
Weak Innovation Strong
Cultural Bias
Why
good
companies
go
bad
?
THE
TRAPS OF
PREVIOUS
SUCCESSES
Some common traps
Resources Relationships
Processes 資源
Resources 關係
Relationships
Culture
價值
Values
Success breeds failure
Success Formula Active Inertia
Frames Changed
Environment
Culture
Values
價值
3 steps of transformation
1. Select the anchor 2. Secure it 3. Align the rest
Frame Frame
Resources
New Frame Relation
Processes 資源
Resources
ships
Resources
Relation Relation
Processes 資源
Resources 關係 Processes Resources 關係 Values
ships ships
Values Values
Corporate transformation
Key Factors
Talent Development
3. Processes
4. Organization policy
5. Customer Focus
6. Dynamic Management
7. Innovation
8. Initiatives
Conditions for change
Mind
Belief/Possibility
Body Spirit
Desire/Want Intention/Commitment
Organization transformation
Anatomical
Strategy and
Structure
Physiological
Systems and
Policies
• Perseverance
• Endurance
• Tenacity
AQ
Adversity Quotient Purpose
• Positive mental Purpose&&Beliefs
Beliefs
attitude
IQ EQ
Intelligent Quotient Emotional Quotient
• Passion, empathy,
• Ability to learn, reason, sensitivity
think, and solve problems • Inspire others
• Right skills and knowledge • Building confidence & trust
• Good common sense • Integrity & personal
leadership
Embracing and managing
change
• Massive disruptive change
• New direction, new model, new games,
new rules
• Capability & capacity for change
• Urgency for change
Definition of “change agent”
Teachers Investors
Writers Bankers
Politicians Businessmen
Governments Managers
Scientists Doctors
Religion workers Social workers
Media workers Stars
You & me
Be a conscious change agent
• Change myself
• Change my job
• Change my life
• Change my profession
• Change my company
• Change my society
• Change my world
• ………………………
The change process
• Visioning
Milestones Management
• Mobilization
• Diagnosis
Communication
Motivation
• Design
nderstand
• Plan
• Execute
• Break
• Build
ommit lign
• Measure
• Review
Steps for change
• Awareness
• Urgency
• Diagnosis
• Take Accountability
• Be at cause
• Find how you can contribute
• Solutions
• Execution
• Reinforcement
• Forgiveness : Self and others Freedom
Changing the behavior
Initiation
80%
Fence
Early Adopters
Pioneers Sitters/Followers
Rome is not built in a day
Transformation
• A butterfly is not a better or
improved caterpillar, it looks and
feels completely different, and has
completely new capabilities
• The new capabilities liberate and
free the creature from the world
of the caterpillar to the
“new”world of the butterfly
Managing change
• Instituting discipline at
the expense of freedom
• Affordability of freedom
when discipline is
instituted
People
• Losing key employees may destabilize the organization; communicating
the desire to retain these people, early in the process, is important
• Give priority to the "me" issues—personal opportunity, security and the
quality of the work environment
Communication
• Communication plans should address four considerations: audience,
timing, mode and message
• Tips include:
• Communicating rapidly, honestly and frequently
• Ensuring consistency between messages
• Establishing multiple mechanisms to reach employees
• Repeating common themes
Eight steps to transform your
organization
Establishing a Sense of
Urgency • Examine market and competitive realities
• Identify and discuss crises, potential crises, or major
opportunities
Forming a Powerful
• Assemble a group with enough power to lead the change
Guiding Coalition
effort
• Encourage the group to work together as a team
Creating a Vision • Create a vision to help direct the change effort
• Develop strategies for achieving that vision
Communicating the Vision • Use possible vehicles to communicate the new vision and
strategies
• Teach new behaviors by the example of the guiding coalition
partnerships?
Key challenges
• Maintaining self
motivation
• Gaining credibility,
confidence, and trust
• Dealing with objection
• Acting with courage and
virtue
• Acquiring new capability
and capacity
• Mobilizing and allocating
resources
• Building a real team
• Developing shared vision
and common language
• Ensuring continuous
The road less traveled
“Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I-
I took the one less traveled by,
And that has made all the difference.“
- By Robert Frost
Don’t get lost
Purpose
Desired Outcome
Actual Outcome
Corporate Culture Change
What is Corporate Culture ?
• Group Emphasis
• People Focus
• Unit Integration
• Control
• Risk Tolerance
• Reward Criteria
• Conflict Tolerance
• Means-ends Orientation
• Open System Focus
Corporate Culture Change
—Price Pritchett
Corporate Culture Change
Why Change ?
• Customer-Focused Relationships
The new challenge is to develop
interdependent relationships with customers
to provide tailored solutions for their specific
problems.
Why Change ?
• Faster Pace
The increasing development in
global village is creating fast-paced workflow
with greater flexibility. Speed has become a
major competitive factor.
• Strategic Collaboration
Companies are shifting attitudes
to more cooperative existence to build a
better mousetrap than either could build
separately.
Corporate Culture Change
The Need for Renewal
• pressure of change
• need for renewal
Corporate Culture
Cultural Change:
Central Issue:
• Just one strategic change is impossible because any strategic
change must be accompanied by accommodations from other
strategic elements inside and outside the corporation.
Requires Requires
Transactional Transformational
Leadership Leadership
Why Is Change Difficult?
• Personal Resistance
• Loss
• Challenge to Competence
• Confusion
• Conflict
• Psychological security
• Designed to maintain
the status quo
Other Organizational or
Personal Inhibitors
• Readiness and
resistance
• A mature faculty
• Midlife issues
• Mid-career issues
Leadership Assumptions
Key Contributors:
Tools We Can Use
Region of realistic
progress;
envelope of
optimal realism
Region of “business
as usual”,
“gradualism”
Current
Time
Vaill Managing as a Performing Art
Personal and
Organizational Myths
Do not make a strategic change unless you have a strong base business or
your base business is hopeless.
Technological Change
* Peter Drucker
Culture / People Change
• First-order change.
• Second-order change.
• Third-order change.
• FIRST-ORDER CHANGE:
Comes primarily from the business world
itself, Regulatory Agencies, Global Competitive
change forces, Domestic and Global economic
trends.
• SECOND-ORDER CHANGE:
Is generated in large part by exploding new
Technology, Scientific breakthrough, Political
and Social change forces.
• Third order change
• Changing economic
conditions,
• Industry
consolidation,
• Increased regulation
• Globalization of
markets.
Global competition like never
before
Second order change
Second-order change
include:
• Scientific and
Technological
Change.
Third-order
change include:
• Changing
demographics.
• Consumers.
Model of Change Sequence
of Events
Environmental
Forces
Culture/People
Horizontal Linkage
Organization
Manufacturing
Department
Customers,
New
Market
Technology
Conditions
Research Marketing
Departmen Departmen
t t
• Mergers
• Team building
• Survey /
• organizational feedback
decline/revitalization. • Large group
intervention
• conflict management.
Organizational
Development
Organizational
Development consists of
many different types of
programs. Some can be
useful but most require a
professional trained in a
particular area of OD.
There is a high risk of
failure if you try to do it
alone.
BEWARE!