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Creating culture

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Creating Culture by Michael Eg Fausbøll discusses organizational culture and how it can be used as a business tool. It notes that culture must be strategically relevant, strong, and emphasize innovation and change. Three levers for shaping, strengthening, and changing culture are identified: recruitment and selection, socialization, and rewards. What makes culture strong is having agreement (talk-the-talk) and intensity (walk-the-talk) at high levels. Jenny Chatman's 3 C's of culture - being consistent, coherent, and comprehensive - are also referenced.

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Creating Culture by Michael Eg Fausbøll
Hvorfor
”If you don’t change culture – culture will drive you” Jenny Chatman, UC Berkeley
”Culture is all about execution” Herb Kelleher, CEO Southwest Airlines
Vision Strategi Kultur hvorfor hvad hvordan
Welcome To Nordstrom. We’re glad to have you with our company. Our number one goal is to provide: ”Outstanding customers service” Set both your personal and professional goals high. We have great confidence in your ability to achieve them. Nordstrom Rules*: Rule #1: Use your good judgement in all situations. *)There will be no additional rules Please feel free to ask your department manager, store manager, or division generel manager any question at any time.
Southwest airlines business model* - Cost, cost, cost - Service, service, service - People, people, people *) Is understandable by any 3-year old
”Delivering happiness” Tony Hsei, CEO
At anvende kultur, som et ledelsesredskab kræver: • At det er strategisk relevant • At kulturen er stærk • Innovation og forandringer Stiller krav til medarbejdernes profil
Strong Culture Warring Factions Vacuous Beliefs Weak Culture What makes Organizational Culture Strong? HIGH LOW HIGH LOW Agreement: Talk-the-Talk Intensity:Walk-the-Talk
Normer Innovation Ansvarlighed Respekt for andre mennesker Kvalitet Teamwork Effektivitet Definition ”Kultur er et mønster af overbevisninger og forventninger, der er delt af en organisation. Overbevisningerne og forventningerne udvikler normer, som former medarbejderes og gruppers adfærd”
Fra Den Blå Tråd ”Vi skal tjene en masse penge, mens vi har det sjovt”
Henrik Lindberg, Founder and CEO ”Vi går aldrig på kompromis i det her firma, - aldrig, aldrig, aldrig!!!”
”Even strategically apporiate cultures will not promote excellent performance over long periods unless they contain norms and values that promote innovation and change”
Strategically Aligned, Strong Innovation Based Not strategically aligned, Weak, or Not focused on Innovation Revenues 682% 166% Workforce expansion 282% 36% Stock price increase 901% 74% Net income increase 756% 1% The influence og Innovation on Firms’ long Term Sustainability and Economics Growth *) Entries represent average persentage increase over an 11 year periode
Innovation = f (Creativity, Implementation)
Conservative Realism Conservative Idealism Creative Realism Conservative Idealism Creative Idealistic Realistic Conservative
Fostering Creativity • People’s skills overlap with their strongest interest, their deepest passions • People have expertise about the problem or task • People have developed personal characteristics such as independence, self- discipline, tolerance for ambiguity, perservance in the face of frustration, and cognitive flexbility But the most important predictor of creative realism is the development of norms that support the expression of creative ideas in organisations
Cultivating a Culture That Supports Creativity • People are rewarded and recognized for new ideas • Management holds positive attitudes about change • People are expected to challenge the status quo • Task related conflict is encouraged rather than avoided • People are given frequent constructive feedback about thier work • Processes are in place for airing new ideas and dispensing with those that won’t work
Cultural Norms Supporting Creativity and Continous Improvement • Mistakes are seen as a normal part of the job • People are given the freedom to make changes • Being ”safe rather than sorry” is not accepted But, people feel psychologically safe, that is, safe to take well-intentioned interpersonal risks such as reporting errors, mistakes, and opportunities for the organisation to learn.
Ideal Culture Norm Current Culture Norm Diagnosing Gap
Tools for Managing and Changing Organizational Culture Recruitment and Selection Socialization Rewards
Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Recruitment and Selection • Medarbejder-kultur-profil • Great People (only) • Anvende rekrutteringsværktøjer (DiSC, Garuda, OPQ m.m.) • Employer Branding • ”What it’s like to work here” (+/-) • Trade-off immedate skills for cultural fit
Creating culture
Fra stillingsannonce: Salgskonsulenter søges Et salgsjob der også har en hjælpende effekt Det er aldrig kedeligt at komme på arbejde i Falck. Som salgskonsulent i Kundecenter Erhverv bevæger du dig i et miljø, der er gennemsyret af mennesker med masser af energi, og som har konkurrencebenzin i årerne - og det i en virksomhed med en lang og spændende historie… Øgede antallet af ansøgninger fra 40 til 250
Disney 1’st Recruitment touchpoint • We don’t want people who…• We don’t want people who…• We don’t want people who…
GE Values Leaders who: • Have a passion for excellence, hating bureaucracy, and alle the nonsense that comes with it” • Have enormous energy and the ability to energize, and invigorate others
Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Socialization • ”People should know how success looks like here” • Storytelling • Goals (SMART-EØF) • One-liner • Culture Marketing • Newletter • Posters (WC) • Hall-meetings • Merchandise • Company Events! • Celebration • Top-down and horizontal (ambassadører) • Udvikle ledere som Talk-the-Talk, Walk-the-Talk • Leadership as Signaling • Faste agendaer (opfølgning på mål, fejre succeser m.m.)
Hall-meetings - Celebration - Follow-up on strategy and goals - Cultural storytelling
Leadership as Signaling • Where do you spend time? • What gets on your calendar? • What questions do you frequently ask? • What questions are never asked? • What gets followed-up? • What is forgotten? • What is referred to in the public statements? • What are the themes in speeches? • What gets on the agenda? • What’s on the top? • What’s last? • What gets celebrated?
Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Rewards • Handlingsplaner (og Performance Profiles, Work Profile) • Nem-at-spotte-kulturbærer-”badge” • Hall-meetings • Wall of fame • Coaching
Nem-at-spotte-kulturbærer-badge - Kulturbærer bør være nemme at spotte - Den skjulte ”badge”
Creating culture
Resumé What makes Organizational Culture Strong? • Talk-the-talk(high), walk-the-talk(high) Using culture as a business tool requires that it: • Is strategically relevant • Is strong • Emphasizes innovation and change Three levers exist for forming, strenghtening, and changing culture: • Recruitment and selection • Socialization • Rewards - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Jenny Chatman’s 3 C’s of Culture Culture works when it is Consistent, Coherent, Comprehensive

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Creating culture

  • 3. ”If you don’t change culture – culture will drive you” Jenny Chatman, UC Berkeley
  • 4. ”Culture is all about execution” Herb Kelleher, CEO Southwest Airlines
  • 6. Welcome To Nordstrom. We’re glad to have you with our company. Our number one goal is to provide: ”Outstanding customers service” Set both your personal and professional goals high. We have great confidence in your ability to achieve them. Nordstrom Rules*: Rule #1: Use your good judgement in all situations. *)There will be no additional rules Please feel free to ask your department manager, store manager, or division generel manager any question at any time.
  • 7. Southwest airlines business model* - Cost, cost, cost - Service, service, service - People, people, people *) Is understandable by any 3-year old
  • 9. At anvende kultur, som et ledelsesredskab kræver: • At det er strategisk relevant • At kulturen er stærk • Innovation og forandringer Stiller krav til medarbejdernes profil
  • 10. Strong Culture Warring Factions Vacuous Beliefs Weak Culture What makes Organizational Culture Strong? HIGH LOW HIGH LOW Agreement: Talk-the-Talk Intensity:Walk-the-Talk
  • 11. Normer Innovation Ansvarlighed Respekt for andre mennesker Kvalitet Teamwork Effektivitet Definition ”Kultur er et mønster af overbevisninger og forventninger, der er delt af en organisation. Overbevisningerne og forventningerne udvikler normer, som former medarbejderes og gruppers adfærd”
  • 12. Fra Den Blå Tråd ”Vi skal tjene en masse penge, mens vi har det sjovt”
  • 13. Henrik Lindberg, Founder and CEO ”Vi går aldrig på kompromis i det her firma, - aldrig, aldrig, aldrig!!!”
  • 14. ”Even strategically apporiate cultures will not promote excellent performance over long periods unless they contain norms and values that promote innovation and change”
  • 15. Strategically Aligned, Strong Innovation Based Not strategically aligned, Weak, or Not focused on Innovation Revenues 682% 166% Workforce expansion 282% 36% Stock price increase 901% 74% Net income increase 756% 1% The influence og Innovation on Firms’ long Term Sustainability and Economics Growth *) Entries represent average persentage increase over an 11 year periode
  • 16. Innovation = f (Creativity, Implementation)
  • 18. Fostering Creativity • People’s skills overlap with their strongest interest, their deepest passions • People have expertise about the problem or task • People have developed personal characteristics such as independence, self- discipline, tolerance for ambiguity, perservance in the face of frustration, and cognitive flexbility But the most important predictor of creative realism is the development of norms that support the expression of creative ideas in organisations
  • 19. Cultivating a Culture That Supports Creativity • People are rewarded and recognized for new ideas • Management holds positive attitudes about change • People are expected to challenge the status quo • Task related conflict is encouraged rather than avoided • People are given frequent constructive feedback about thier work • Processes are in place for airing new ideas and dispensing with those that won’t work
  • 20. Cultural Norms Supporting Creativity and Continous Improvement • Mistakes are seen as a normal part of the job • People are given the freedom to make changes • Being ”safe rather than sorry” is not accepted But, people feel psychologically safe, that is, safe to take well-intentioned interpersonal risks such as reporting errors, mistakes, and opportunities for the organisation to learn.
  • 21. Ideal Culture Norm Current Culture Norm Diagnosing Gap
  • 22. Tools for Managing and Changing Organizational Culture Recruitment and Selection Socialization Rewards
  • 23. Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Recruitment and Selection • Medarbejder-kultur-profil • Great People (only) • Anvende rekrutteringsværktøjer (DiSC, Garuda, OPQ m.m.) • Employer Branding • ”What it’s like to work here” (+/-) • Trade-off immedate skills for cultural fit
  • 25. Fra stillingsannonce: Salgskonsulenter søges Et salgsjob der også har en hjælpende effekt Det er aldrig kedeligt at komme på arbejde i Falck. Som salgskonsulent i Kundecenter Erhverv bevæger du dig i et miljø, der er gennemsyret af mennesker med masser af energi, og som har konkurrencebenzin i årerne - og det i en virksomhed med en lang og spændende historie… Øgede antallet af ansøgninger fra 40 til 250
  • 26. Disney 1’st Recruitment touchpoint • We don’t want people who…• We don’t want people who…• We don’t want people who…
  • 27. GE Values Leaders who: • Have a passion for excellence, hating bureaucracy, and alle the nonsense that comes with it” • Have enormous energy and the ability to energize, and invigorate others
  • 28. Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Socialization • ”People should know how success looks like here” • Storytelling • Goals (SMART-EØF) • One-liner • Culture Marketing • Newletter • Posters (WC) • Hall-meetings • Merchandise • Company Events! • Celebration • Top-down and horizontal (ambassadører) • Udvikle ledere som Talk-the-Talk, Walk-the-Talk • Leadership as Signaling • Faste agendaer (opfølgning på mål, fejre succeser m.m.)
  • 29. Hall-meetings - Celebration - Follow-up on strategy and goals - Cultural storytelling
  • 30. Leadership as Signaling • Where do you spend time? • What gets on your calendar? • What questions do you frequently ask? • What questions are never asked? • What gets followed-up? • What is forgotten? • What is referred to in the public statements? • What are the themes in speeches? • What gets on the agenda? • What’s on the top? • What’s last? • What gets celebrated?
  • 31. Tools for Managing and Changing Organizational Culture Rewards Socialization RecruitmentandSelection Rewards • Handlingsplaner (og Performance Profiles, Work Profile) • Nem-at-spotte-kulturbærer-”badge” • Hall-meetings • Wall of fame • Coaching
  • 32. Nem-at-spotte-kulturbærer-badge - Kulturbærer bør være nemme at spotte - Den skjulte ”badge”
  • 34. Resumé What makes Organizational Culture Strong? • Talk-the-talk(high), walk-the-talk(high) Using culture as a business tool requires that it: • Is strategically relevant • Is strong • Emphasizes innovation and change Three levers exist for forming, strenghtening, and changing culture: • Recruitment and selection • Socialization • Rewards - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Jenny Chatman’s 3 C’s of Culture Culture works when it is Consistent, Coherent, Comprehensive