WEBINAR · 2019. 9. 6. · A. Identify core influencers in the organisation –both formal and...

Mind the Cultural Gap

- a webinar delivered by proacteur

WEBINAR

Agenda

WHAT IS CULTURE? BENEFIT FROM

CULTURAL INSIGHTS

PROCULTURE©A PRACTICAL

APPLICATION FOR CULTURAL INSIGHTS

CHANGING A CULTURE FIVE CRITICAL

ELEMENTS TO KEEP IN MIND

BehaviourWhat is culture?

Behaviour and artefacts

Value and strategies

Behaviour

Culture is relevant when interacting

Behaviour

and when merging

Relevance in a larger perspective

Working relationships - when we collaborate

Company growth – when we expand and change

What we gain from cultural insight

Better management of organisational development as understanding cultural element leads to moresuitable choices (process optimisation, strategies or perhaps technologies).

Levering the strengths of diversity by having insight and a language to address culture.

Gaining a more potentcompany cultureresults in better talent management, recruitment and retention. And leaves a stronger impression with stakeholders.

Cultural knowledge is an undeniable competitiveadvantage that directly influence potential market growth, productivity, and quality.

Degree to which power is distributed with people at the

bottom accepting their position

POWER DISTANCE

Degree to which people function more as individuals or a collective

community.

INDIVIDUALISM

Degree of tolerance for ambiguity and uncertainty.

UNCERTAINTY AVOIDANCE

Degree to the level of focus on performance and continuous improvement.

PERFORMANCE ORIENTATION

ASSERTIVENESS

EMOTIONAL EXPRESSIVENESS

Degree to which people are allowed and expected to display emotional states.

Degree to which a person is able and expected to advocate own personal well-being and goals.

proCulture©’s six dimensions

Relevant cultural dimensions

Cultural markers: The synthesis of 1-2-3

2 sub-categories

1 dimension

3 aspects

= 12 sub-categories

= 6 dimensions

= 36 aspects

Data collection

Step 1 Step 2 Step 3

Quantitative data collection Qualitative data collection Validating data

Cultural alignment

Cultural CMCultural intelligence

Cultural integration

Fundamental basis for

alignment of organisational

cultures and ensuring

compatibility between

culture and company

values or strategy.

inclusion of cultural elements

in due diligence process or

integration strategy of

mergers & acquisitions.

Provides valuable input to

strategy for intercultural

change implementations to

ensure cultural specific needs

are included.

Harvest the benefits of

cultural diversity and

improvement of intercultural

collaboration.

Cultural CM

Degree to which power is distributed with people at the bottom accepting

their position

POWER DISTANCE

Degree to which people function more as individuals or a collective community.

INDIVIDUALISM

UNCERTAINTY AVOIDANCE

PERFORMANCE ORIENTATION

ASSERTIVENESS

EMOTIONAL EXPRESSIVENESS

proCulture©’s cultural markers

Affects Change management effort in regard to:

• Communications• Resistance• Feedback• Sponsorship• Approach

Affects Change management effort in regards to:

• Communications• Resistance• Feedback• Sponsorship• Approach

• Communications• Accountability• Performance and adoption metrics• Incentives and desire building• Resistance management

• Communications• Engagement with managers• Avoidance behavior• Identifying resistance• Responsiveness to concerns

• Communication• Resistance• Change fatigue and pace of change• Confusion• Coaching and training• Mitigate risk

Degree to which power is distributed with people at the bottom accepting their position.

• Communications• Resistance• Productivity impact• Change management plans• Buy-in• Decision making

Degree to which people function more as individuals or a collective community.

• Communication• Buy-in• Teamwork and collaboration• Cross-functional work• Decision making• Feedback

Cultural change management process

Mapping cultural traits

Affect on CM activities

Unique challenges and adaptations

Include insight to CM strategy or CMO

frameworkWHAT (findings) SO WHAT (implications) NOW WHAT (actions)

Cultural alignment

culture and company

values or strategy.

are included.

collaboration.

Cultural alignment

Cultural alignment process

Understanding our culture

Deep dive into sub-cultures

Values or strategic ambition

Recommendation for adaptations

WHAT (findings) SO WHAT (implications) NOW WHAT (actions)

Cultural alignment

culture and company

values or strategy.

are included.

collaboration.

Cultural intelligence

Understanding our international workforceIN

53 4Moderately low Moderately high High

53 4Moderately low Moderately high HighLow

42 3Low Moderately low

…or, 1:1 cross-cultural stakeholdersIN

Differences are usually what we notice, but we don’t just differ from someone…

… and the similarities are our common ground

Guess a workforce nationality

• Busy, stressed• Serious• Reserved• Cautious• Controlled

Guess a workforce nationality

• Busy, stressed• Serious• Reserved• Cautious• Controlled

• Relaxed • Friendly, outgoing• Spontaneous• Emotional• Impulsive

Brasilians about Americans: Japanese about Americans:

Cultural intelligence process

Understanding culture

Dialogue on perception vs. data

Guidelines for intercultural collaboration

Mapping cultural traits

Cultural alignment

culture and company

values or strategy.

are included.

collaboration.

Missing in Due DiligenceMost due diligences are incomplete and lack the full picture of many of the elements, especially:

ITFinances

Processes Customers

Legal Products

CultureOrganisation leadership &

talent

Neglecting culture means ITFinances

Processes Customers

Legal Products

CultureOrganisation leadership &

talent

The price is often wrong

The integration process takes

longer

The synergies are not realised

AOL-TimeWarner mergerYear 2000 Condition Should create the world’s largest media

company (values at $350 billion) Price $165 billion (the world’s largest deal at

the time)Outcome AOL was sold in 2015 for $4.4 billion

“Steve Case also explained that while the dot-com crash was devastating for internet companies, a bigger problem was the culture clash between the two companies, where AOL's side found Time Warner to be too old-fashioned, essentially, and Time Warner's side found AOL to be a threat to their businesses.”

“Merging the cultures of the combined companies was problematic from the get go. Certainly the lawyers and professionals involved with the merger did the conventional due diligence on the numbers. What also needed to happen, and evidently didn’t, was due diligence on the culture. The aggressive and, many said, arrogant AOL people “horrified” the more staid and corporate Time Warner side. Cooperation and promised synergies failed to materialize as mutual disrespect came to color their relationships.”

“Steve Case says that while the dot.com bubble bursting may have added to demise of the venture, he believes that the core reason goes back to the three P's: there was a culture clash between the two companies; the passion that pushed AOL forward diminished; and people wanted a quick fix to profit loss and didn't persevere.”

"We obviously overestimated the potential of synergies“Dieter Zetsche, CEO of DaimlerChrysler

“How do you pronounce DaimlerChrysler?… ‘Daimler’— the ‘Chrysler’ is silent.” Internal joke at Chrysler

Daimler-Chrysler mergerYear 1998 Condition Merger of equalsPrice $75 billion (the world’s largest cross-

border deal)Outcome 2007: Daimler sells Chrysler for ($6

billion)

Cultural integration analysis

Analysis of both cultures

Gap-fit analysis

Prioritisation of effort

Aspiration alignment with executives

Cultural alignment

Cultural change management

Cultural intelligence

Changing a culture requires five critical elements

Executive leadership own the cultural change

How to?

Executives do not dictate or shape the culture on their own, but they need to own and drive the effort to change it.

Changing a culture is a change management project. And, according to Best Practice guidelines, the number one success criteria is active and visible sponsorship.

A. Executives participate visibly throughout the project by supporting the team and to champion the change.

B. Executives need to build a coalition of sponsorship and thereby bridging internal silos and creating a combined effort.

C. Executives need to communicate support and promote the change to all impacted groups across the organisation.

Align strategy and organisational culture

How to?

Organisations work best if there is alignment between strategy and culture. If an organisation wants to change its culture, it should therefore, be natural also to adjust its strategy as part of the process, as the two affect each other.

A. Ensure that budgets, goals, metrics, processes, reporting structure, performance management system, leadership training and incentives should also reflect the desired culture.

Change the stories and walk-the-talk

How to?

Both formal and informal storytelling are tremendously powerful. People are under the conception that we say what we believe, but the reality is that we also believe what we say – eventually at least. Changing the stories, therefore, contributes to changing the culture.

A. Identify core influencers in the organisation – both formal and informal and prepare them to walk the talk.

B. Both formal and informal leaders should be aware of how stories convey the culture. Not merely in what we say but also how they are linked to e.g. reward systems and which metaphors we choose.

C. Ensure that the strongest messages are told the same way across the org.

Prioritise few critical values and behaviours

How to?

Changing a culture may require a multitude of large programs, but an alternative way is to focus on a few critical behaviours, which you believe is important to get right. They can be used as levers for the overall cultural change. When a few key behaviours are emphasised heavily employees will often develop additional ways to reinforce them.

A. Use the strengths already existing in your culture. One way of identifying strengths in the culture is to find the areas with the lowest variance in views. These are our strongest cultural traits.

B. The critical behaviours should be systematically reinforced. identify important areas where culture is manifested, for examples such as performance management, annual budgets or Town Hall Meetings.

Monitor the progress and identify KPIs for success

How to?

By having data on the current state of culture we can track the transition to the future state. When focusing on a few elements of a culture, other elements should still be monitored as many of the cultural aspects are interlinked and will be impacted by spill over. Also, know that cultural changes takes time.

A. Know your starting point and define the desired culture.

B. Identify different metrics which show whether the activities supporting the cultural change are having the desired effect

C. Different types of data can be used depending on which kind of cultural aspects are being changed and whether we are looking at short or longer term progress.

Would you like to read more about how to address

culture?

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WEBINAR · 2019. 9. 6. · A. Identify core influencers in the organisation –both formal and...

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