Organizational Culture Change

Organizational culture can loosely be defined as the shared assumptions, beliefs, and "normal behaviors" (norms) of a group. These are powerful influences on the way people live and act, and they define what is "normal" and how to sanction those who are not "normal." To a large degree, what we do is determined by our culture.

"Normal behavior" in this context, should not be assumed "appropriate" or "preferred behavior", but rather, the most often observed behavior of the majority of the group. Organizational culture is similar to, say, regional culture. The same person in different organizations (or parts of the same organization) would act in different ways based upon the prevailing culture. Culture is very powerful in altering or influencing behavior.

This way of looking at organizations borrows heavily from anthropology, psychology and sociology and uses many of the same terms to define the building blocks of culture. Edgar Schein, one of the most prominent theorists of organizational culture, offered the following definition:

"The culture of a group can now be defined as: A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems." (Schein, pp.373-374)

In other words, as groups evolve over time, they face two basic challenges: integrating individuals into an effective whole, and adapting effectively to the external environment in order to survive. As groups find solutions to these problems over time, they engage in a kind of collective learning that creates the set of shared assumptions and beliefs we call "culture."

Gareth Morgan (1997) describes culture as "an active living phenomenon through which people jointly create and recreate the worlds in which they live." (Morgan, p.141) For Morgan, the three basic questions for cultural analysts are:

• What are the shared frames of reference that make organization possible?
• Where do they come from?
• How are they created, communicated, and sustained? (Morgan, p.141)

Elements of organizational culture may include:

• Stated and unstated values.
• Overt and implicit expectations for member behavior.
• Customs and rituals.
• Stories and myths about the history of the group.
• Shop talk-typical language used in and about the group.
• Climate-the feelings evoked by the way members interact with each other, with outsiders, and with their environment, including the physical space they occupy.
• Metaphors and symbols-may be unconscious but can be found embodied in other cultural elements.

Morgan proposes four essential strengths of the organizational culture approach:

• It focuses attention on the human side of organizational life, and finds significance and learning in even its most mundane aspects (for example, the setup in an empty meeting room).
• It makes clear the importance of creating appropriate systems of shared meaning to help people work together toward desired outcomes.
• It requires members-especially leaders-to acknowledge the impact of their behavior on the organization's culture. Morgan proposes that people should ask themselves: "What impact am I having on the social construction of reality in my organization?" "What can I do to have a different and more positive impact?"
• It encourages the view that the perceived relationship between an organization and its environment is also affected by the organization's basic assumptions. Morgan says:
• "We choose and operate in environmental domains according to how we construct conceptions of who we are and what we are trying to do. . . . And we act in relation to those domains through the definitions we impose on them. . . . The beliefs and ideas that organizations hold about who they are, what they are trying to do, and what their environment is like have a much greater tendency to realize themselves than is usually believed." (Morgan, p.148 -150)

The underlying causes of many companies' culture problems are not necessarily found in the structure, CEO, or staff; they are more often found in the social structure and interactive culture. Because people working in different cultures act and perform differently, changing the culture can allow everyone to perform more effectively and constructively. This applies to many different types of organizations as much as it applies to businesses.

While the causes of cultural problems cannot be totally laid at the feet of the CEO, the leadership of the organization plays a very large part in establishing the culture over time. Cultural change is neither easy nor foolproof. It can take time - at least one year, more likely between three and six years - and it takes effort and vigilance. A great deal of patience and long-term support is needed.

Communication may be key, as small successes are used to support larger efforts. Sometimes, it is necessary to start changing small parts of an organization first, later expanding efforts. It is also important that the leadership of the organization provide the example. The proponents of change must carefully model the behavior they want to see in others. If they do not send a consistent message and keep that message clear and dominant over time, cultural change may be seen as just another fad.

One important first step is to get a grasp of your current organizational culture. Although this may seem obvious, many companies are so eager to make changes that they hurry through this preliminary step or skip it altogether. Many assessment tools are available and can help ascertain the elements that constitute the culture of an organization.

Watch for employee resistance. This is the most common barrier to making cultural changes. Often rooted in fear of the unknown, resistance reflects people's desire to keep the status quo, as well as a belief that the change will not be successful anyway. Changing the culture of business is inherently threatening and stressful because it challenges employees' long-held beliefs.

For employees to accept change, they need to understand the external and internal pressure on the company that makes change necessary. Otherwise, they can be very resourceful in sabotaging efforts to implement change, often by demonstrating unwillingness to commit to change. They may be cynical, especially if the organization has attempted changes before that turned out unsuccessfully.

As you begin the process, create the awareness that the existing situation is becoming or has become unsatisfactory. The situation and the awareness must be significant enough to produce the motivation to do something about the problem. Tell the employees what is effecting the organizational change, whether it's competition, new regulations or something else. Let them know that top management is involved in supporting and in implementing the change efforts. Share with the employees any operating, behavioral or organizational performance data to persuade employees to strive for change.

This whole process may be rocky; management and employees must be willing to put difficult, uncomfortable issues out in the open. It may be necessary to bring in an outside expert to facilitate the discussion. They often play a role in analyzing a company's existing structures (assessment) and fostering communication on issues and attitudes that managers find difficult to identify or would prefer to ignore (consulting and counseling).

Here is a checklist to examine as you progress down the road of organizational change:

• Determine the current culture through assessment and measurement
• Ensure the endorsement or involvement of high-profile executives.
• Identify early adopters of the new behaviors and have them champion change throughout your organization.
• Establish a communication strategy.
• Communicate the reasons for change.
• Educate employees on how to accept change.
• Encourage responsibility without risk of failure/loss of job.
• Examine the use of current systems and structures (such as performance management and incentives) to foster desired behaviors.

The nature of change initiatives varies widely from organization to organization. Still, you may use the chart below to get a feel for how often certain types of programs for culture change succeed. You will notice that the success rate varies greatly from one attempt at change to another. Results also vary according to the environment and industry in which change was attempted and the process used to bring about change. These results demonstrate that success at change is difficult and not assured.

Rensis Likert (1903-81) suggested that major changes within an organization could take two or three years before the results showed. The lag time may be shorter if your commitment to the program is deep and shows clearly; if your vision of what your business should look like is clear; and if all of your actions are consistent with this vision. For example, at advertising giant Ogilvy & Mather, posters and cards were issued to each employee with clear, colloquial statements on "how we do business" (signed by the CEO, David Ogilvy). At Chrysler, the pace of change was slowed by structural problems (e.g., dealerships are independently owned) and by the jaded viewpoints of many industry insiders. Another problem has been the onset of complacency, as winning products, record profits, and high sales erased the "emergency" atmosphere that contributed to the sense of urgency that added speed to change.

One or two people with strong convictions and commitment to change often must spearhead cultural changes. This may be the head of the business, a consultant, or a designated executive or team of executives. The best results seem to be achieved when there is a firm commitment from the top, which is communicated directly to each and every person in the business.

The accessibility of top people is a powerful incentive for workers to feel that they are part of the company. Often, if workers know they can walk into the president's or owner's office and be greeted with their attention and respect, they will work much harder to make that vision a reality. This one step may help to save a great deal of time and money, as workers may feel more free to bring in suggestions, and the executive may be more likely to try it out...sometimes with quite surprising results. This atmosphere will go a great distance to bring about change in the organization.

Before planning a cultural change, it may help to study companies with successful cultures, such as 3M, Ben & Jerry's, Wal-Mart, or Chrysler, to find out how they became and stayed successful, dealt with failures and successes, and kept their fingers on their customers' and employees' pulses. In Search of Excellence (Peters, 1982) describes a number of companies with successful cultures (though some have declined, which, if nothing else, shows the need for vigilance). Many consultants, such as Rensis Likert, Warner Burke, David Nadler, and Chris Argyris, have also written about their experiences.

The power of cultural change is strong -- strong enough to turn an aging dinosaur into a state-of-the-art profit-maker. It may do wonders in your business or institution, as well.

Because culture is so deeply rooted in an organization's history and collective experience, working to change it requires a major investment of time and resources. Help from a change agent outside the system is often advisable. Without such help, it is difficult for insiders to view their "reality" as something they've constructed, and to see meaning in things they normally take for granted.

Notes:

Campbell, A. (ed.) (1988) International Encyclopedia of the Social Sciences, Biographical Supplement, New York: The Free Press.

Likert, R. (1932) A Technique for the Measurement of Attitudes, New York: McGraw-Hill.

Likert, R. (1967) The Human Organization: Its Management and Value, New York: McGraw-Hill.

Likert, R. and Likert, J. (1976) New Ways of Managing Conflict, New York: McGraw-Hill.

Morgan, G. (1997) Images of Organization. Thousand Oaks, CA: Sage Publications.

Mourier, P. and Smith, M. (2001) Conquering Organizational Change: How to Succeed Where Most Companies Fail, CEP Press.

Peters, T.J., Waterman, R. H., (1982) In Search of Excellence : Lessons from Americas Best Run Companies, New York: Harper & Row

Schein, E. (1993) Organizational Culture and Leadership. In Classics of Organization Theory. Jay Shafritz and J. Steven Ott, eds. 2001. Fort Worth: Harcourt College Publishers.

Wren, D. (1994) The Evolution of Management Thought, 4th edition, New York: Wiley.