Why Organizational Culture Matters

Presented by: Mark Bodnarczuk Executive Director October 24, 2006

Breckenridge Institute, All Rights Reserved

EFCOG QA Sub-Committee

Presented To:

Conceptual Overview
Culture The purpose of culture (any culture) is to teach people how to see the world Goal Stimulate new ways of thinking about QA by showing how much of what you believe about quality and organizations is itself cultural a product of the quality culture in the DOE Complex Goal Deep learning (comes only from unlearning which makes most people uncomfortable)

Session Overview
Session 1 History, Results, Culture Model Session 2 Case Study Intervention and Strategic View Session 3 Six Elements of Work, Organizational Climate Session 4 Cultural Change and Enhancing QA Programs Format Seminar style with six working groups Deliverable Six working groups suggestions on ways to enhance DOE 414.1C and 10CFR830.120 QA programs

Session 1: History, Results, Culture Model

History My involvement in QA

Insight Appendix A, autopilot quality assurance culture with paper-paper, instead focus on enterprise-wide business processes and Criterion 5 (Work Processes)
External Environment Governance and the business environment is the single biggest factor for creating culture, e.g. why TQM failed in DOE no business results, no customers, no consequences for performance (good or bad)

Session 1: History, Results, Culture Model

Results Begin and end with results current quality culture has an unconscious bias toward process rather than results, safety over production (Collins tyranny of the OR and genius of the AND) Red Flag Thats not how we do it or The system doesnt allow it (DNFSB) are indicators of cultural norms operating Culture The purpose of culture (any culture) is to teach people how to see the world its the See, Do, Get, Process

SEE Current Reality GET Future Reality

Events in the World

Identify NEW DO Potential Course of Action

AUTOMATIC PILOT DOING & LEARNING PROCESS Impose Meaning

Select Data

Cultural Wilderness Disrupt the Equilibrium Deconstruction

(Appreciate Inquiry)

See, Do, Get, Process

From Awareness to Action

UNLEARNING CHANGE PROCESS Clarify Change Metaphors

Reconstruction

Session 1: History, Results, Culture Model

Lewin Geocentric, subway, conflict (Freud, Rogers, Skinner, EO Wilson) See, Do, Get See is culture, Do is the structures and systems we build, Get is actual organizational performance Org Theory Jaques: organizational and scientific theory, e.g. what are the fundamental theories that underlie the work of people like Collins, Kaplan, NQA-1, DOE 414.1C, QA (history)? Culture Model The three-part organizational theory thats the foundation of the BCI culture model: a) Three circles, b) Outside-in open systems theory, and c) Cultural Envelope Mapping Build the connections between: a) the open systems theory, b) the Cultural Envelope, and c) the three radars

Inside-Out Organizational View

Session 2: Case Study Intervention and Strategic View

Results Small group discussion about results
Intervention Anthropologists to intervene is to affect Approach Expert services role, diagnostic role, collaborative role (small group discussion)

Case Study From customer service training to culture

Session 2: Case Study Intervention and Strategic View

Border Guards Small group exercise on building an interaction map Selection Bias Cognitive conflict and the self-selection bias of culture where do you think most QA professionals fit?

HQ Local Gov

Support
Finance ESS&H

Federal Gov

Long-Term Employees Government Mindset

Town
Testing

Field
Production

Program Recent Hires

Industry Mindset

Contractor
Local Corporate

Technical Services Operations

18

16

14

12

10

Count
8 6 4 2 0 ISTJ ESTJ ISTP ISFJ INFP ESTP Personality Type ISFP ESFJ ENFJ INTP ENTP

Type 1:Production
Total: Se
ESTP 0 3 0 6% 0%

Type 2: Communicating
Total: Ne
ENTP 0 1 0 2% 0%

14
ESTJ 0

27% Te
11 22% 0 0%

5
ESFJ ENFJ

10% Fe
2 2 4% 4%

Type 3: Administrative
Total: Si
ISTJ ISFJ 16 31% 5 10%

Type 4: Visionary
Total: Ni
0 0 0 0 0% 0%

27
ISTP INTP

53% Ti
5 10% 1 2%

5
INFP ISFP

10% Fi
3 2 6% 4%

Total: 51

Type 1:Production
Total: Se
ESTP 0 1 10% 0 0%

Type 2: Communicating
Total: Ne
0% 0% ENTP 0 1 10% 0 0%

1
0 0

10% Te
0 0

1
0 0

10% Fe
0 0 0% 0%

Type 3: Administrative
Total: Si
ISTJ 0 4 40% 0 0%

Type 4: Visionary
Total: Ni
0 0 0 0 0% 0%

7
ISTP INTP

70% Ti
2 20% 1 10%

10% Fi
INFP 10% 10% 0 0% 0%

Total: 10

Session 2: Case Study Intervention and Strategic View

Strategic View Establishes organizational purpose, direction, and ground rules for execution
Configuration Six elements of the Strategic View are interdependent and settle down on a pattern of interaction that often embodies LOW (Jenga), e.g. changing one changes the others sometimes in unpredictable ways Core Beliefs-Values Exploring and characterizing seemingly contradictory, yet mutually held tacit assumptions, unquestioned beliefs that exist in an Essential Tension (both and thinking) Self Assessment Small group exercise: a self assessment of your organization

Strategic Focus
100

80

60

Business Context
40

Business Results

20

Core Beliefs 0 and Values

Strata and Talent

Planning and Deployment

Policies and Resources

Your Organization All Other Organizations

Interdependent Configuration

Session 3: Six Elements of Work, Organizational Climate

Execution Shows an organizations approach to execution implementing the Strategic View (windows into culture)
QA These are the elements that are closest to DOE 414.1C and 10CFR830.120 Configuration Elements of the Six Elements of Work are interdependent and settle down on a pattern of interaction that often embody LOW (Jenga) Core Beliefs-Values Exploring and characterizing seemingly contradictory, yet mutually held tacit assumptions, unquestioned beliefs that exist in an Essential Tension (both and thinking) Self Assessment Small group exercise: a self assessment of your organization

Decisions
100

80 60

Structure
40 20

People

Core Beliefs 0 and Values

Information

Rewards

Processes
Your Organization All Other Organizations

Interdependent Configuration

Session 3: Six Elements of Work, Organizational Climate

Climate The most easily recognizable aspects of organizational culture (closest window into culture) Qualitative The opinions and perceptions are dependent on organizational strata, personality, disciplinary background, and experience Individual-Collective Paradox Teasing apart the difference between individual values and personality (Border Guards) and collective, social beliefs and values (culture) Configuration Elements of the six elements are interdependent and settle down on a pattern of interaction that often embody LOW (Jenga)

Core Beliefs-Values Exploring and characterizing seemingly contradictory, yet mutually held tacit assumptions, unquestioned beliefs that exist in an Essential Tension (both and thinking)

Just Culture
100 80 60

Openness to Change
40 20

Constructive Conflict

Core Beliefs 0 and Values

Creativity

Tradition

Management Philosophy
Your Organization All Other Organizations

Interdependent Configuration

Session 4: Cultural Change and Enhancing QA Programs

Overall Score Small group exercise: complete the overall organizational score sheet
Quantitative Analysis Use advanced analytics to identify root causes and cause and effect relationships within each dimension (factor analysis), then between the 18 perspectives in all three dimensions (regression analysis, structural equation modeling) Gap Analysis Establish how wide the gap is between the formal and informal structures, systems, and culture by examining objective evidence and day-to-day operations and interactions Qualitative Analysis Explore and characterize the underlying core beliefs and values (tacit unquestioned assumptions) that explain the true (informal) motivations of the scores (data mining on verbatim comments, and a portfolio of formal and informal communications)

Session 4: Cultural Change and Enhancing QA Programs

Now What Its easy to talk about culture change, but very, very difficult to do, e.g. 18 months to 2 years per layer of management
Cliff Notes Culture Change Small group exercise using the ninestep improvement process that Harnessing Process A single diagram that codifies the principles and practices presented into a long-term cultural change process

Harnessing Process
Cultural Elements
Underlying Assumptions Informal Rules of the Game
Organizational Climate Management Philosophy Openness to Change Constructive Conflict Just Culture, Creativity, Tradition Core Beliefs and Values Cultural Barriers Collective Memory (Level 2)
Deconstruct

Structure and Systems

Surface Traits Formal Rules of the Game Gyroscope
Senior Team Strategic View Squandered Energy Six Elements of Work Financial Management Collective Memory (Level 1) Redesign Structures and Systems (Org Energy) Redesign Cultural Elements (Psych Energy) Redesign Embedding Process Align Structures, Systems, Culture, and Embedding Step-By-Step Implementing Plan and Budget Defining New Results (Org and Psych) Clarifying the Change Metaphor

Embedding Process
Concretize Change New Organizational Reality
Develop Hedgehog and Deploy (GMTs) HA Strata Templates MoR (Development and Just Culture) Managers Accountable for Staffs Results Build Change Into Perform Appraisals Monday-Friday E-Mails On-Site Sessions Primary Embedding Mechanisms Secondary Embedding Mechanisms Stop Doing List Org-Wide Communication Plan Advanced Analytics Financial Analysis

Awareness To Action

Define Change

Reconstruct

Transition to Organization-Wide Implementation

A Ceremonial Ending Implementing the Plan Organization-Wide Embedding Mechanisms Understand Change-Transition Manage Survival-Learning Anxiety Focus on the Gyroscope and Be a Trim Tab Commitment to Stockdale Paradox Monitor and Measure Results Course Correct - Continue Embedding Mechanisms

Transition to Organization-Wide Implementation

Navigating the Cultural Wilderness

New Do Obtain New Results

Navigating the Cultural Wilderness

Session 4: Small Group Deliverable

Line Managers Use material to help line managers see themselves, working associates, and the overall organization differently with the goal of improving results Intervention-Approach Use material to improve intervention style and approach (expert, diagnostic, collaborative) Enhancing QAP Use material to make your QA program less focused on paper and process and more focused on obtaining improved results

Conceptual Review
Culture The purpose of culture (any culture) is to teach people how to see the world Goal Stimulate new ways of thinking about QA by showing how much of what you believe about quality and organizations is itself cultural a product of the quality culture in the DOE Complex Goal Deep learning (comes only from unlearning which makes most people uncomfortable)

Where do we go from here?

The Complex needs a new quality culture The Complex needs a new theoretical foundation for quality Todays material could be a starting place to rethink these things

Photos provided by: 2006 Annie Crawley, www.anniecrawley.com