Business Analysis and Leadership: Context climate and culture

© 2012, Perspectiv LLP. All rights reserved. Enabling organisations to improve performance.
Business Analysis and Leadership:
Context, culture and climate
Developed and presented by:
Andy Wilkins and Kate Stuart-Cox
IIBA UK Event in London, 4th September

Given…
today‟s competition
today‟s expectations of people
today‟s availability of information
today‟s speed of communication
today‟s levels of education
today‟s changing technology
today‟s automation
today‟s fast pace
today's VUCAsity
how critical is Leadership?

Today's world is…
VUCAvolatile uncertain complex ambiguous
(get over it)

What's this talk about?
If you are interested in
influencing the world around you
and other people, then you are
involved in leadership. And if you
are engaged in leadership, you
might want to attend to the
atmosphere you create.

Richard follows me
into a toilet.
Twice!!!

Atmosphere!!
“Isn't trying to understand atmosphere
like trying to nail jelly to the wall?”
“Anyway, how can you measure atmosphere?”
“And I don't really believe it is as important
as the hard and technical stuff.”

My passion
How to enable people to be
better problem solvers?
How to cultivate leadership
skills for technical people?

Why should
anyone be
led (or BAed)
by you?

Leaders create environment
50-70% of variance in
organizational climate
can be explained by
differences in
leadership styles
Up to 30% of variance
in financial results
(profits and revenue)
can be explained by
differences in
organizational climate
Leadership
behaviour
Organizational
climate
Results
Source: Sustaining, ascending and descending. 15 years of The World‟s Most Admired Companies. Hay Group. June 2012

Physical AND psychological
Physical
• The
buildings, offices, desks, fact
ories, décor
• The „hard‟ or „tangible‟ stuff
• Reflects lower levels of
Maslow‟s hierarchy of needs
• Reflects Herzberg‟s
„hygiene‟ factors or the
dissatisfiers
Psychological
• The
atmosphere, feel, culture, cli
mate, context
• The „soft‟ or „intangible‟ stuff
• Reflects Maslow‟s higher
needs
• Reflects Herzberg‟s
„motivational‟ factors or
satisfiers

Climate
The observable habits
that characterise life in an
organisation.
Culture
The values and beliefs that
reflect the deeper
foundations of the
organisation.
Climate AND culture

Some of the challenges in established organisations
• The restricting power of a
well worn rut
• The inertia of a heavy
body
• The administrative
standardisation

Resources
Work Environment, People, Machinery, Concepts, Funds,
Rewards, Management, Hierarchy, Tools, Methods, etc.
Effects on
Quality, Creativity & Innovation, Productivity,
Well-Being, Job Satisfaction, Profit, etc.
Climate
Organizational & Psychological Processes
Problem-Solving, Decision-Making,
Learning, Motivation, Communication, etc.
Climate moderates resources and results

The dimensions of climate

The nine climate dimensions normative data
Sour ce:Ekvall, G. CCQInter national Nor ms. SwedishCouncil for Management and
Work Life Issues.
*N=NumberofCompanies
Innovative
(*N=10)
Climate
Variables
Stagnated
(*N=5)
Average
(*N=15)
Freedom
Idea Time
Conflict
Debate
174
111
88
128
153
97
140
105
210
148
78
158
Challenge& Involvement
Trust and Openness
Playfulness/Humor
Idea Support
Risk -Taking
190
160
169
164
112
163
128
140
108
53
238
178
230
183
195
International Organizations
© Ekvall & Arvonen

What can you do?
Assessment Questions Amount: Little --------------- A Lot
1. To what degree are people here deeply committed to their jobs? 1 - 2 - 3 - 4 - 5
2. To what degree are people able to decide how to do their jobs? 1 - 2 - 3 - 4 - 5
3. To what degree do we take the time to think of alternate ways
to accomplish a difficult task before having to take action? 1 - 2 - 3 - 4 - 5
4. To what degree are new ideas given a warm reception, and to
what degree are resources available to give new ideas a try? 1 - 2 - 3 - 4 - 5
5. To what degree is there emotional tension here? 1 - 2 - 3 - 4 - 5
6. To what degree is there lively debate on the issues? 1 - 2 - 3 - 4 - 5
7. To what degree do we hear good-natured joking, and to what
degree is the work atmosphere relaxed? 1 - 2 - 3 - 4 - 5
8. To what degree are people informal and open with one another? 1 - 2 - 3 - 4 - 5
9. To what degree do people feel free to take action when the
outcome might not meet expectations? 1 - 2 - 3 - 4 - 5

Need more - Chapter 19 or contact us
Andy Wilkins
Partner, Perspectiv LLP;
Senior Honorary Visiting Fellow,
Cass Business School
andy@perspectiv.co.uk
Kate Stuart-Cox
Partner, Perspectiv LLP
kate@perspectiv.co.uk
James Archer
Associate Perspectiv LLP
james@perspectiv.co.uk

Business Analysis and Leadership: Context climate and culture

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