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Welcome to the webinar on
developing and measuring
organizational culture
We will start at 12.00 CET
March 5th, 2014
Developing and measuring
organizational culture
Lunch webinar
March 5th, 2014
Time: 12.00 – 12.45 CET
Who we are

Niklas Granlund

Elahe Tavakoli

•

More than 13 years of experience as
management consultant

•

More than 7 years of experience as
management consultant

•

Culture changes, change communication,
project management and downsizing and
rationalization

•

Culture changes, change communication
and process development

•

Certified CTT-consultant

Certified CTT-consultant

Elahe.Tavakoli@implement.se

•

Niklas.Granlund@implement.se

3
- Market leader in Scandinavia
within implementation of
change

- 400 employees
- Service private and public
companies in Scandinavia
and in the Baltics

4
To plan, lead and implement changes is our core business

• Typical projects:
• Implement a new strategic
direction
• Mergers & acquisitions
• LEAN implementation or
process development
• Leadership development
• Cultural transformation
• …

5
What we are going to talk about

Our view on culture
Managing and measuring organizational culture
Experience and results – do’s and don’ts

How Implement can support your cultural journey
Questions

6
Culture is a means…

Vision

Current state

7
You have a choice…

Evolutionary approach

Architectural approach

Source: Freely after Daryl R. Conner
8
What we are going to talk about

Our view on culture
Managing and measuring organizational culture
Experience and results – do’s and don’ts

How Implement can support your cultural journey
Questions

9
Can you measure culture?

Relationships

Love

Happiness

Co-operation

10
Can you measure culture?

Visible signs

Leadership &
”employeeship”

Structures

Climate & spirit

Conclusion – Yes, but be aware that you are simplifying!
11
Why measure culture?

12
3 phases of a culture project

Strategic
decisions

1. Explore and
analyse

2. Implement

3. Integrate

Secure
results,
on-going
development
and followup

Time
13
Phase 1: Explore and analyse
CTT: Current Culture Values

• Establish project
• Collect data
• Analyse current and
desired culture

• Secure common
understanding and
ownership among top
management

14
Phase 2: Implement
• Create common
understanding of
current and
desired state in
the organisation
through structured
dialogue(s)
• Strengthen
ownership among
managers

15
Phase 3: Integrate
• Integrate values in
structures, systems and
processes
• Adapt feedback systems

Attract

Recruit

16

Develop

Phase out
3 phases of a culture project
Explore and analyse
• Establish project
• Collect data
• Analyse current and
desired culture
• Secure common
understanding and
ownership among top
management

Implement
• Create common
understanding of current
and desired state in the
organisation through
structured dialogue(s)

Integrate
• Integrate values in
structures, systems and
processes
• Adapt feedback systems

• Strengthen ownership
among managers

CTT: Current Culture

Secure
results,
on-going
development
and followup

Strategic
decisions
Attract

Recruit

Develop

Phase
out

Time
17
The Cultural Transformation Tools (CTT)
…used to measure and manage the culture in the organization
by making it visible

18
CTT – a sample of users
ABN Amro
Adobe
AllState
American Red Cross
American University
AstraZeneca
ANZ Bank
Banque Populaire
BP Oil
Bridgestone Firestone
Campbell’s Food
Catholic Health Services
Canadian Broadcasting
Capital One
Ceridian
Computer Associates
Corning
Court TV
Deutsche Bank
Duke University

Ericsson
Ernst and Young
Exxon
Ford Motor Company
IKEA
ING Bank
Internal Revenue Service
Johnson and Johnson
Kellogg’s Food
Kraft
KLM
Konica Minolta
KPMG
Lever Faberge
Lloyd’s TSB
L’Oreal
Methodist Hospital
Microsoft
Motorola
Nestle
19

Nortel Networks
Ohio National Guard
Petrobras
PriceWaterhouseCoopers
Rabo Bank
Royal Automobile Club
SEB Bank
Smithsonian
St Luke’s Health System
Thrivent
Total Petroleum
Unilever Foods
University of Pennsylvania
US Customs
Volvo
Wegmans
Wharton Business School
Wrigley
World Bank
Xerox
CTT in practice
• Online survey with 3 questions
· Personal values

· Current culture
· Desired culture
• Choose values/behaviours from a list of words
• 20 min
• ~40 different languages
• Based on motivational theory
• Cost connected to number of reports/demographic cuts
• Expert validation

20
CTT-results

Accumulated
• Personal values
• Current cultural values
• Desired cultural values
Personal Values

Current Culture Values

21

Desired Culture Values
CTT measures potentially limiting aspects of the culture
Level

Potentially Limiting Values (votes)

Percentage

3

hierarchy (107)
confusion (98)
bureaucracy (86)
silo mentality (73)
power (56)
information hoarding (45)
long hours (40)

505 out of 911:
22% of total votes

2

internal competition (79)
blame (31)
manipulation (24)

134 out of 199:
6% of total votes

1

short-term focus (64)
cost reduction (38)
control (32)
caution (28)
exploitation (19)
job insecurity (15)

196 out of 317:
8% of total votes

Total

835 out of 2330

36% of total votes

22
What we are going to talk about

Our view on culture
Managing and measuring organizational culture
Experience and results – do’s and don’ts

How Implement can support your cultural journey
Questions

23
ANZ Bank – cultural journey

We want to
be the bank
with a
human face
CEO John McFarlane

24
ANZ Bank – Cultural journey 2000 to 2005

2000
cost reduction
profit
shareholder value
results orientation
accountability
continuous improvement
customer focus
bureaucracy
achievement
goals orientation
hierarchical
short term focus
long hours
commitment
risk aversion

2001

2002

2003

cost reduction
shareholder value
accountability
customer focus
profit
results orientation
continuous improvement
achievement
bureaucracy
being the best
customer satisfaction
goals orientation
brand image
organizational growth
long hours
teamwork
control
hierarchical
commitment
community involvement

cost reduction
customer focus
shareholder value
accountability
continuous improvement
profit
results orientation
achievement
community involvement
customer satisfaction
teamwork
being the best
organizational growth
bureaucracy
balance (home/work)
long hours
productivity
brand image
hierarchical
can do approach
commitment

customer focus
cost reduction
accountability
continuous improvement
achievement
profit
results orientation
community involvement
shareholder value
customer satisfaction
teamwork
bureaucracy
being the best
hierarchical
balance (home/work)
commitment
long hours
organizational growth
brand image
productivity

Enhancing values

25

Limiting values

2005
customer focus
community involvement
cost reduction
accountability
results orientation
brand image
achievement
profit
bureaucracy
customer satisfaction
continuous improvement
shareholder value
teamwork
being the best
balance (home/work)
perform
best practice
long hours
organizational growth
hierarchical
ANZ Bank – employee satisfaction rose dramatically
90%

78%

85%

72%

80%
70%
60%

78%

82%

58%

62%

49%

50%
40%
30%
20%
10%
0%
1999

jul-00

Jul-08

Feb-02

Jul-02

26

Feb-03

Jul-03

Feb-04
ANZ Bank – net profit after tax ($m) increased significantly
3000

2500

2000

1500

1000

500

0
1995

1996

1997

1998

1999

2000

27

2001

2002

2003

2004

2005
ANZ Bank – results
Lives its values – from 20% to 80%
Productivity in meetings – from 61% to 91%
Openness and honesty
Can-do culture
Revenue per employee increased by 89%

Average profit growth of 15%
28
Supported by research

Effective culture can
account for 20-30 % of
the differential in
corporate performance
when compared with
"culturally unremarkable"
competitors.
James L. Heskett,
The Culture Cycle

29
Some cases from the Nordic and the
Baltics…

30
Swedish authority
• Need to develop a culture in line with external environment, assignment,
objectives and strategies
• ~400 people

31
Scandic Hotels
• Revitalize values – inclusive approach
• ~8000 people in 9 countries

32
ICA/Rimi
• Aim: Unite the organisation – work as ONE!
• CTT within all companies and countries – 500 representatives
• On-going implementation

33
Do’s and don’ts in culture projects
• Top management ownership is crucial
• Develop a plan
• Gain widespread support for the project – involve all levels
• Measure – specify why, when and how to work with the results

• Don’t get stuck in the analysis, focus on the implementation instead
• Make it stick – carry out activities over time
• Endurance is key

34
What we are going to talk about

Our view on culture
Managing and measuring organizational culture
Experience and results – do’s and don’ts

How Implement can support your cultural journey
Questions

35
Implement can support you in all phases of your cultural journey

• We can support you in all phases of your cultural journey
» Strategic partner
» Provide tools and methods
» Neutral, ”outside” – perspective

» Measuring your culture – using the CTT

36
What we are going to talk about

Our view on culture
Managing and measuring organizational culture
Experience and results – do’s and don’ts

How Implement can support your cultural journey
Questions

37
Questions
Thank you for listening!
Feel free to contact us if you have any questions!

ng@implement.se

et@implement.se

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Implement lunch webinar organisational culture handout

  • 1. Welcome to the webinar on developing and measuring organizational culture We will start at 12.00 CET March 5th, 2014
  • 2. Developing and measuring organizational culture Lunch webinar March 5th, 2014 Time: 12.00 – 12.45 CET
  • 3. Who we are Niklas Granlund Elahe Tavakoli • More than 13 years of experience as management consultant • More than 7 years of experience as management consultant • Culture changes, change communication, project management and downsizing and rationalization • Culture changes, change communication and process development • Certified CTT-consultant Certified CTT-consultant Elahe.Tavakoli@implement.se • Niklas.Granlund@implement.se 3
  • 4. - Market leader in Scandinavia within implementation of change - 400 employees - Service private and public companies in Scandinavia and in the Baltics 4
  • 5. To plan, lead and implement changes is our core business • Typical projects: • Implement a new strategic direction • Mergers & acquisitions • LEAN implementation or process development • Leadership development • Cultural transformation • … 5
  • 6. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 6
  • 7. Culture is a means… Vision Current state 7
  • 8. You have a choice… Evolutionary approach Architectural approach Source: Freely after Daryl R. Conner 8
  • 9. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 9
  • 10. Can you measure culture? Relationships Love Happiness Co-operation 10
  • 11. Can you measure culture? Visible signs Leadership & ”employeeship” Structures Climate & spirit Conclusion – Yes, but be aware that you are simplifying! 11
  • 13. 3 phases of a culture project Strategic decisions 1. Explore and analyse 2. Implement 3. Integrate Secure results, on-going development and followup Time 13
  • 14. Phase 1: Explore and analyse CTT: Current Culture Values • Establish project • Collect data • Analyse current and desired culture • Secure common understanding and ownership among top management 14
  • 15. Phase 2: Implement • Create common understanding of current and desired state in the organisation through structured dialogue(s) • Strengthen ownership among managers 15
  • 16. Phase 3: Integrate • Integrate values in structures, systems and processes • Adapt feedback systems Attract Recruit 16 Develop Phase out
  • 17. 3 phases of a culture project Explore and analyse • Establish project • Collect data • Analyse current and desired culture • Secure common understanding and ownership among top management Implement • Create common understanding of current and desired state in the organisation through structured dialogue(s) Integrate • Integrate values in structures, systems and processes • Adapt feedback systems • Strengthen ownership among managers CTT: Current Culture Secure results, on-going development and followup Strategic decisions Attract Recruit Develop Phase out Time 17
  • 18. The Cultural Transformation Tools (CTT) …used to measure and manage the culture in the organization by making it visible 18
  • 19. CTT – a sample of users ABN Amro Adobe AllState American Red Cross American University AstraZeneca ANZ Bank Banque Populaire BP Oil Bridgestone Firestone Campbell’s Food Catholic Health Services Canadian Broadcasting Capital One Ceridian Computer Associates Corning Court TV Deutsche Bank Duke University Ericsson Ernst and Young Exxon Ford Motor Company IKEA ING Bank Internal Revenue Service Johnson and Johnson Kellogg’s Food Kraft KLM Konica Minolta KPMG Lever Faberge Lloyd’s TSB L’Oreal Methodist Hospital Microsoft Motorola Nestle 19 Nortel Networks Ohio National Guard Petrobras PriceWaterhouseCoopers Rabo Bank Royal Automobile Club SEB Bank Smithsonian St Luke’s Health System Thrivent Total Petroleum Unilever Foods University of Pennsylvania US Customs Volvo Wegmans Wharton Business School Wrigley World Bank Xerox
  • 20. CTT in practice • Online survey with 3 questions · Personal values · Current culture · Desired culture • Choose values/behaviours from a list of words • 20 min • ~40 different languages • Based on motivational theory • Cost connected to number of reports/demographic cuts • Expert validation 20
  • 21. CTT-results Accumulated • Personal values • Current cultural values • Desired cultural values Personal Values Current Culture Values 21 Desired Culture Values
  • 22. CTT measures potentially limiting aspects of the culture Level Potentially Limiting Values (votes) Percentage 3 hierarchy (107) confusion (98) bureaucracy (86) silo mentality (73) power (56) information hoarding (45) long hours (40) 505 out of 911: 22% of total votes 2 internal competition (79) blame (31) manipulation (24) 134 out of 199: 6% of total votes 1 short-term focus (64) cost reduction (38) control (32) caution (28) exploitation (19) job insecurity (15) 196 out of 317: 8% of total votes Total 835 out of 2330 36% of total votes 22
  • 23. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 23
  • 24. ANZ Bank – cultural journey We want to be the bank with a human face CEO John McFarlane 24
  • 25. ANZ Bank – Cultural journey 2000 to 2005 2000 cost reduction profit shareholder value results orientation accountability continuous improvement customer focus bureaucracy achievement goals orientation hierarchical short term focus long hours commitment risk aversion 2001 2002 2003 cost reduction shareholder value accountability customer focus profit results orientation continuous improvement achievement bureaucracy being the best customer satisfaction goals orientation brand image organizational growth long hours teamwork control hierarchical commitment community involvement cost reduction customer focus shareholder value accountability continuous improvement profit results orientation achievement community involvement customer satisfaction teamwork being the best organizational growth bureaucracy balance (home/work) long hours productivity brand image hierarchical can do approach commitment customer focus cost reduction accountability continuous improvement achievement profit results orientation community involvement shareholder value customer satisfaction teamwork bureaucracy being the best hierarchical balance (home/work) commitment long hours organizational growth brand image productivity Enhancing values 25 Limiting values 2005 customer focus community involvement cost reduction accountability results orientation brand image achievement profit bureaucracy customer satisfaction continuous improvement shareholder value teamwork being the best balance (home/work) perform best practice long hours organizational growth hierarchical
  • 26. ANZ Bank – employee satisfaction rose dramatically 90% 78% 85% 72% 80% 70% 60% 78% 82% 58% 62% 49% 50% 40% 30% 20% 10% 0% 1999 jul-00 Jul-08 Feb-02 Jul-02 26 Feb-03 Jul-03 Feb-04
  • 27. ANZ Bank – net profit after tax ($m) increased significantly 3000 2500 2000 1500 1000 500 0 1995 1996 1997 1998 1999 2000 27 2001 2002 2003 2004 2005
  • 28. ANZ Bank – results Lives its values – from 20% to 80% Productivity in meetings – from 61% to 91% Openness and honesty Can-do culture Revenue per employee increased by 89% Average profit growth of 15% 28
  • 29. Supported by research Effective culture can account for 20-30 % of the differential in corporate performance when compared with "culturally unremarkable" competitors. James L. Heskett, The Culture Cycle 29
  • 30. Some cases from the Nordic and the Baltics… 30
  • 31. Swedish authority • Need to develop a culture in line with external environment, assignment, objectives and strategies • ~400 people 31
  • 32. Scandic Hotels • Revitalize values – inclusive approach • ~8000 people in 9 countries 32
  • 33. ICA/Rimi • Aim: Unite the organisation – work as ONE! • CTT within all companies and countries – 500 representatives • On-going implementation 33
  • 34. Do’s and don’ts in culture projects • Top management ownership is crucial • Develop a plan • Gain widespread support for the project – involve all levels • Measure – specify why, when and how to work with the results • Don’t get stuck in the analysis, focus on the implementation instead • Make it stick – carry out activities over time • Endurance is key 34
  • 35. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 35
  • 36. Implement can support you in all phases of your cultural journey • We can support you in all phases of your cultural journey » Strategic partner » Provide tools and methods » Neutral, ”outside” – perspective » Measuring your culture – using the CTT 36
  • 37. What we are going to talk about Our view on culture Managing and measuring organizational culture Experience and results – do’s and don’ts How Implement can support your cultural journey Questions 37
  • 39. Thank you for listening! Feel free to contact us if you have any questions! ng@implement.se et@implement.se