THE ONTARIO FEDERATION OF INDIAN FRIENDSHIP CENTRES on ...courses.learninglibrary.com/tllflash/AFOA/AFM 14 v... · OF INDIAN FRIENDSHIP CENTRES (A) ' OFIFC: A Case Study in Culture

T H E ONTARIO FEDERATION O F INDIAN FRIENDSHIP CENTRES

Case Studies on Native Management

Ian Chapman and Don McCaskill

Native Management and Economic Development Program Trent Un~vers~ty. Peterborough. Ontario.

ACKNOWLEDGEMENTS

We wish to acknowledge the wisdom and insights of the staff and members of the Board of the Ontario Feder- ation of Indian Friendship Centres, which they shared with us and without which this case study could not have been written.

T H E ONTARIO FEDERATION O F INDIAN FRIENDSHIP CENTRES

This package consists of five cases, four of which are followed by teaching notes:

OFIFC(A): A Case Study in Culture and Management in an Aboriginal Organization

This case describes the organization. its history and organization culture, and the manner in which the organization has interpreted traditional aboriginal customs and traditions into its everyday management practices.

OFIFC(B): Planning the Elders' Gathering

This short case focuses on the way in which planning and evaluation take place within a framework of traditional aboriginal customs and values.

OFIFC(C): Conflict and the Code of Ethics

This short case focuses on the handling of conflict within the organization.

OFIFC(D): Decision-Making a t the Board

This short case deals w ~ t h t h e practise of consensus decision-making within the Board of the OFIFC.

.. ~ ~

OFIFC(E): Smudging the Office

This short case focuses on the incorporation of the ritual of smudging into the daily operations of the office and staff reactions to it.

r . I T r e n t University, Pe terborough, Ontar io , Canac

THE ONTARIO FEDERATION O F INDIAN FRIENDSHIP CENTRES (A) '

OFIFC: A Case Study in Culture and Management in an Aboriginal Organization

Introduction

The office of the Ontario Federation of Indian Friendship Centres (OFIFC) is located i n a small, newly renovated office building on a busy mid-Toronto street. The building's slick modern appearance seems to f i t the image of the occupants -with one exception. As you enter the Federation'h office, that image is quickly altered. Although the receptionist has a computer on her desk, and she.handles phone calls with cheerful aplomh. a closer look around the reception area indicates that this organization is different from its mainstream neighbours.

An eagle feather stand. for example, sits in the corner; a small child plays in the back of the office: and a glance into the Executive Direc- tor's office reveals a large round table that seems to fill the room. I t appears that the staff consists almost entirely of women, from the Executive Director to t h e receptionist.

I . Thih c ; lx a ~ u d ) w;l\ urzllcn h! Ian ('hapman. Pnrlcssor, and Don McCaskill, Prolcbbor. lur thc hativc hldn.~pcnicn~ 2nd Economic Dcvclopmcnt Program, Trent Llnivcrsity. (c) 1VV0 Trcnl L !n~rc r s i~ ) and the Ontario Fcdcration of Indian Friendship Ccn~rcs . Thir btully was prcpdrcd fur cldssroom discussion only, and is not intended to present cithcr an cflcciivc o r incllcctivc handling o l an administrative situation:

The authors gratclullv .~clnowlcdge thc financial cimtribution of the Canadian Ahoriginal Economic Dcvcluprncnl 51ratCgy (lormcrly the Native Economic Develop- men1 Program), thc Dunner C'dnadian Foundation, and the Joseph E. Stauffcr Fcn~ndation.

These outward signs can be confirmed by talking with the staff, the Ewecutive Director and the Board members of the Federation. Here is an organization which performs very effectively on behalf of its constituent membership as it negotiates with all levels of the federal and provincial governments, yet consciously does things in "an lndian way."

The Federation has worked very hard over a number of years to translate aboriginal traditions and culture into a uniquely aboriginal way of managing itself. This aboriginal form of management permeates all the Federation's activities. from long-range planning and decision-making to organizational development, including staff relations. The purpose of this case study is t o illustrate the Federa- tion's conception of aboriginal management by showing how i t came about and how it is applied to both the Federation's long-term and day-to-day business.

Fr iendship C e n t r e s

The Federation brings together 23 Friendship Centres across Ontario with important mutual interests that can best be met through one central agency. The Federation exists solely to respond to the expressed needs of the Friendship Centres and their membership.

Approximately one third of Canada's aboriginal population lives off-reserve in urban centres. Since the late '50s. Friendship Centres have been established across Canada to serve the needs of this urban population. Some urban aboriginal people a re transients; others a re more or less permanent residents with jobs and families. Friendship Centres must therefore provide services and programs for both groups. Short-term ernergcnc? assistance helps those staying only briefly, and includes counselling and referral, legal information. court services and assistance wi th housing and financial matters. Longer- term programs include recreatton. pow wows. training programs and cultural events, including aboriginal language classes.

Each Friendship Centre is runby an elected Board of Directors who, together with the staff, develop programs and services for their

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members. Many of the programs are funded through federal or provincial agencies. In some cases the Centre can negotiate directly with the agency. In other cases, the process of obtaining seed grants to start new programs, or negotiating the new program in the first place. is beyond the capabilities of an individual Centre. For this reason, the Friendship Centres in Ontario formed in 1971 the Ontario Federation of Indian Friendship Centres (OFIFC) to represent them as a lobbying and resource agent with government agencies. The Federation later widened its responsibilities to include training and advocacy.

What Is the OFIFC?

The OFIFC's primary role is to serve its member Friendship Centres. Local Centres rely on the Federation to provide resource information and comprehensive training to Centre personnel. The OFIFC represents the interests of Friendship Centres by lobbying governments and other funding agencie5. It also acts as a liaison with the National Association of Friendship Centres and other organizations, agencies and communities. both aboriginal and non-aboriginal.

The OFIFC keeps Centres informed of changes in legislation, regula- tions, and new programs h? providing regular resources and information packages to Centres. They also ~ provide program guidelines, policies. and manuals i n all financial and personnel areas, as well as specific standards of performance in effective program delivery standards. For example. a Centre can be put 'on notice' by the OFIFC when problem5 arise. The OFlFC will then work with the

: Centre to correct the prohlem. I n addition, the OFIFC assumes the bulk of the responsibil~t~ for training, financial management, records and statistics collection.

The OFIFC is primaril!. t unded through government grants, to act as a 'carrier agenq ' for a varletv of programs. Its main role with respect to these programs is to ensttie that they are following their mandates and achieving their goal>. The OFlFC provides provincial management support and monlrorlng. while the local Friendship Centres deliver the programs. 'I'h15 arrangement is a balance of provincial

. Native Management and Economic Development a t Tren t 3

coordination of program administration, m o n i t o r i n g a r i ~ evaluation, along with local autonomy for program delivery. Local Boards of Directors of Friendship Centres act as primary policy- and decision- makers, and as representatives of the local aboriginal communities. Local autonomy for each Centre is a fundamental value identified in the OFIFC Code of Ethics.

The Federation itself defines one of its objectives in this way:

The OFIFC furthers the Ccntrcs' abilities to mcct their goal of improving the quality of life for urhan and migrating pcople in Ontario by supporting self-dctermincd activities which encourage equal access to and participation in society and which respect Nalivc cullural distinctiveness.

P R O G R A M S OF THE O.F.I.F.C.

Currently, the Federation administers the Native Courtworker Pro- gram, and provides training support for three other programs, the services and administration of which are taken care of by individual Centres. These programs are:

1. The Native Courtworker Program 2. 'The Family Courtworker Program 3. The Native Communitj Development Worker Program 4. The Li'l Beavers Program of Ontar io

1. T h e O n t a r i o Nat ive Cour tworker Program

This program is one of the oldest in Ontario, as a result of the problems which aboriginal people experience with the legal system. which were recognized ver) earl! on in the existenceof Friendship Centres. The program is funded by the Federal Department of Justice and the Ontario Ministry of the Attorney General, a t an annual cost of about $750,000. The program's objectives are:

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T o cnsure access to all Native citizens in Ontario to thc best svailablc legal and justice-relatcd services prior to and followbg a courl ap- pcarancc. and to maintain thc cffcctivencss of those services. To reduce thc scnsc of alienation experienced by Native persons who are in conflict with thc law and to bridge the cultural and linguistic gap betwccn Native people and the justicc system.

Essentially, the Native courtworkers are available to assist aboriginal persons accused of crimes in understanding the court process, and to help the courts appreciare the perspective of the accused.

2. T h e Family Courtworker Program

As a consequence of the Young Offenders Act of 1984, both the provincial government and aboriginal organizations recognized the need for aboriginal people and communities to have supportive and sensitive service people to help young aboriginal people and their families i n conflict with the law. The Family courtworker works in Young Offenders court or in Family court where they assist their clients in the court process by explaining legal rights; act as a liaison between the court and their client; and counsel, refer and perform court services. The program is funded through the Ontario Ministry of Community and Social Services at an annual cost of around $h00.000

3. The Native Community Development Worker Program

The Federation consulted with its member Centres in I984 to develop objectives for a new program based on an earlier pilot project in community development. The program provides a focus for commun- i ty development in Friendship Centres through a position for a staff member whose activities support the overall goal of the Centre and allow the Centre to respond flexibly to community needs. The community development worker's job is to identify the needs of individuals and groups in the community for social, cultural, educational and recreational programs i n line wi th the Centre's overall goals. Salaries and operating funds are provided through local agreements negotiated

between the Friendship Centres and the M i n i s t j of Community and Social Services. Funding averages $30,000 annually for each Centre.

4. T h e Li'l Beavers P rogram of O n t a r i o

This program was developed to address the special needs of aboriginal children living in urban settings. recognizing that they tend not to participate in mainstream programs such as Boy Scouts o r Girl Guides. The program has been designed and modified over the years t o produce a culturally oriented guidance and development program f o r children between the ages of five and 16. The program's activities provide the children with experiences which will develop strong ' personal character, a sense of accomplishment and respect, and a n appreciation of aboriginal heritage and values. Salaries and operating funds for this program are provided through agreements negotiated by the Friendship Centres and the Ministry of Community and Social Services a t an annual cost of about $30,000 for each Centre.

All these programs call for workers with special knowledge, skills and attitudes. Therefore the Federation recognized from its inception that training would be necessary to support the member Centres' activities. Besides the specific training needed for the programs. the Federation also provides training for Board and staff members throughout the Friendship Centre system. T h e Federation believes that "the effective management and administration of organizational operations ensures the delivery of culturally appropriate services t o improve the quality of life for urban Native people," and that training, through workshops, will allow individuals to develop the necessary knowledge, skills and attitudes.

S t ruc tu re

The structure of the Fede ra t~on resembles that of a mainstream not-for-profit organization - w i t h one very significant exception. As the Federation's organizational structure chart shows, a t the very top is the Centres' membership. which reminds the Centres' Board of Directors that they a r e there to serve the members of the community.

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Each Centre has one representative on the OFlFC Board of Directors which elects a five-member Executive Committee. The Federation's organizational structure is illustrated in Exhibit 1.

The OFIFC Board's role is two-fold. First it must develop long-term goals which the Centres and their membership have identified as needs. and they must negotiate the necessary funding. As well, the Board must administer existing programs and training on behalf of the member Centres. To help fulfil 'these roles, the Board and its Executive Committee are aided by a 14-person staff headed by the Executive Director.

The staff's task is to carry out the Board's directives. It coordinates and facilitates information exchange and communication among member Centres and from Centres to government agencies, and responds to requests for assistance of all kinds from any Centre. Liaison with funding agencies is a major part of the staff's work. The training function for the programs and the Boards and staff of the Centres is carried out mainly by the permanent staff of the ~ e d e r a t i o n who prepare training and procedural manuals in addition to facilitat- ing the workshops. .

The Early Years

The Federation was formed in 1971, and until 1978 it was run by a four-person Executive Committee. The Executive Director charac- terizes that period as "one when the Federation used a mainstream structure where the President was the boss and there were Centres which were in favour wi th the President and others which were out of favour - a period of benevolent dictatorship."

in 1978, the Federation moved to the present Board of Directors structure. which i n thohe days was considered a radical idea. In order to carry out its affairs in mainstream society, the Federation needed a legal constitution wh~ch defined such things as membership require- ments, duties of its officers and voting procedures. The original format, which resembled that of similar organizations in mainstream society, has since been amended to reflect some of the cultural

N a t ~ v e Management T n i i a m o m ~ c Development a t 'l 'rent 7

changes that have happened in the past 10 years; it has, however, remained unchanged since 1984.

Nineteen seventy-nine was a bad year fo r the Federation. Four of its member Centres left, and there were many personality conflicts. When the political struggles were over, those who were left turned to the Elders to 'nurse the hurt.' The Elders talked about how people could relate to each other. 'to sit around the tab le ' s0 that no single Friendship Centre would be more important than another so a s to never encounter such conflict again.

As a partial response to these words, the Federation decided in 1980 to adopt a Code of Ethics (see Exhibi t 2 ) . The Code had to be more than just words. I t was directed to the Friendship Centres; in fact, agreement with the Code of Ethics became a requirement of rnem- bership in the Federation. The Code:

* established a specific way of relating to each other;

reinforced communication with non-aboriginal peoplc;

* established rcspect for aboriginal ways and encouraged their incorporation into the organization:

promoted a 'team effort' rather than compclition among Friendship Centres (eg. onc Ccntrc will strp aside to allow another to be funded);

addcd roles for the Fcdcration (cp. training);

dcfined Friendship Centres.

Through the adoption of the Code o f Ethics, the Federation had started on the long and difficult path of discovering "how to act like Indians" in the workplace.

T h e Federat ion 's Organiza t ional Cu l tu re

All organizations have a culture. That is, a structure and way of doing things that is characteristic of that organization. Probably the most outstanding feature of the OFlFC is its attempt to create an organiza-

Nat ive Management a n d E c 5 n o m ? c ~ v e l o p m e n t a t T r e n t 8

tion based upon traditional aboriginal beliefs. values and practices. This effort is part of a larger reawakening or revitalization of aboriginal culture currently occurring in aboriginal communities across Canada. As the Director put it, "The O F l F C wants to create an aboriginal organization which blends traditional Indian and western management principles."

Once the Code of Ethics was adopted, the task became one of implementing it into the functioning of the organization. The OFIFC turned for guidance to the authority on aboriginal culture: the Elders. The Elders defined culture as "everyday good living," and emphasized the need to "act like Indians." Priority was placed on the individual's behaviour within the organization. The orientation was holistic; that is, it involved the individual's total life - physical, spiritual, emotional and mental. For example, it was suggested that individuals behave as they would a t home. This had major implications fo r the OFIFC. For example, the OFIFC stopped participating in events that involved alcohol, as this would be inconsistent with traditional aboriginal teachings;

An OFIFC worker was sent to all Friendship Centres to try to achieve a consensus as to what culturally based management was and how it could be achieved. It was important to recognize in this process that there is a great diversiry in cultures in the areas where the Friendship Centres were located. such as Ojibwa, Cree, and Mohawk. The OFlFC was careful to recognize and honour those differences. A I

consensus emerged in IY8U on a definition of management a s "the achievement of planned results through the work of others in a suitable environment." The environment was defined holistically to include the economic. political. social and cultural life of the organization.

This holistic approach lo culturally-based management entailed integrating three components of culture into the daily operations of the organization: beliefs. values and behaviour. The Elders had emphasized the imporrance of reflecting the basic beliefs and values of the traditional culture in an individual's everyday behaviour.

Nat ive Management a n d E c o n o m ~ c Deve lopment at 'l 'rent 9

Despite the variations in aboriginal cultures in the areas represented by the Friendship Centres, a common thread runs through each of them: a common spiritual world view. Traditional aboriginal society is based on the knowledge that all things in life a r e related in a sacred manner and are governed by natural o r cosmic laws. T h e land (Mother Earth) is therefore held t o be sacred, a gift f rom the Creator. In their relationship to the land. people accommodate themselves t o i t in an att i tude of respect and stewardship. T o d o otherwise would be t o violate a fundamental law of the universe.

Proper conduct is determined by natural laws which obliterate the distinction between 'sacred' and 'secular,' o r the 'laws of nature ' and the 'rules of society.' For each has as their source the activities which result as humans and nature react towards each other. And it is through the understanding of the reciprocal relationship between ourselves and nature that we are provided with the sustenance - both physical and spiritual - that we require to live. Thus, human law is a reflection of natural law and all of the structures. customs and ways of life grow out of this central understanding. It is upon this world view, as pointed out by respected aboriginal leader George Manuel, that any aboriginal cultural revitalization must be based.

The Teach ings of t h e Ci rc le

Over time, through a series of consultarions. meetings and workshops, a n understanding of the nature of aspects of an "Indian self" became apparent. It was based on the teachings of the Circle, o r Indian Medicine Wheel, which i n turn is based on the teachings of the Four Directions and other teachings presented by the Elders. T h e four aspects are:

spiritual; * mental; * physical/recreationJI: * emotional.

- N a t w e Managemen t a T T E c Z n i m i c v e l o p m e n t at T r e n t 10

In addition. there a r e four fundamental values in tradit ional aboriginal culture t o guide a n individual's behaviour:

* kindness; * honesty;

sharing; * strength.

Finally, there a r e four levels which a r e contained in traditional aboriginal culture which should be represented in the organizational functioning. These are:

* individual; * family; * clan: * nation.

T h e Medic ine Wheel i n O p e r a t i o n

As Exhib i t 3 illustrates, the Medicine Wheel has been interpreted in a manner which attempts t o transform management concepts and practices into the Wheel. This process of interpretation is constantly being refined.' When assistance in interpretation is required. Elders -who are the source of knowledge, the "experts" in these matters - a r e consulted.

The organizations thus used a set of traditional beliefs t o guide their development - those related t o the symbol of the circle and the four directions. Briefly stated. the circle is based on the ancient symbol of the Medicine Wheel and expresses a unifying force in life. T h e Medicine Wheel represents the traditional aboriginal perspective of life. T h e seasons move i n a circle one to another. The four directions, starting from the East. form a circle. In life, one starts in the East and journeys around the four directions. T h e power of the world

' Each aboriginal culturc ha> dcvclopcd its own interpretation of the basic wheel. Thc OFlFC has based its work upon an Ojibway inlcrpretation.

11

always works in circles. It is the symbol of completeness and perfec- tion.

Members of the organization also use the core values as expressed on the Wheel (kindness a s expressed through the eagle; honesty as represented by the tree: sharing exemplified by the animals; and strength as symbolized by the rock) a s a guide to action in carrying out their work tasks. In addition, three other values (and their directions) a r e stressed in individual behaviour. These are:

1) Respect, meaning to "look twicc," particulary regarding peoplcs' behaviour (toward thc Earth as an act of rcspecl to Mother Earth); 2) Trust (toward the sky or other world as an act symbolizing one's faith and beliefs): and, 3) Friendship (toward oncsclf to demonstrate tbc need to likc or be comfortablc with oncsclf).

Staff roles a re likewise related to a Medicine Wheel. The staff is divided into four working teams, each with specific responsibilities a s follows:

1) Program Planning (cast/vision): 2) Training (south/knowled~c): 3) Special Projects (west/rcason): and. 4) Administration (north/aclion).

Equality is emphasized in the exercise of leadership in the organization. The leaders regard themselves a s servants of the people, as d o aboriginal leaders in communities in the traditional culture. Thus chairing meetings is a shared responsibility, with everyone taking turns and everyone speaks on a matter only once, and the Executive Director speaking last. Discussion proceeds around the table and attempts a r e made to huild consensuh on all issues.

The organization also views the issue of employee development i n a "holistic" way according to the four directions. That is, all aspects of an ind~vidual - physical (eas t ) . menral (south), emotional (west). and spiritual (north) - a r e considered for development. T h e Federation devotes extensive resources to provide staff opportunities for development. For example. time off is given to allow staff t o attend

N a t ~ v e Managemen t s n d E c o n o m ~ c ~ e v e l o p m e n t at ' l ' rent 12

cultural events and expenses are often provided to participate in educational events and courses.

The Medicine Wheel is a powerful teaching tool in traditional societies, in that the four directions of the compass can express many important relationships for individuals and groups; but these relationships must be viewed in a holistic manner. The concept of the circle in the workplace translates into the development of a decision-making process which includes all the members of the organization and the development of organizational structures which are more integrated and less hierarchical than those of the mainstream. It may also mean the development of a set of hiring and personnel practices which take into account the whole person, not just the person who appears at work every day. The circle also provides a way of thinking through issues to ensure that all factors are considered.

Aboriginal Approach to Management

There are numerous ways that the OFlFC incorporates these components of aboriginal culture into their management style:

' decisions are rcachcd usually by consensus rather than by majority vote;

thc OFlFC plays thc tradttional role of Bcar Clan (ie. peacekeeper);

Eldcrs a re involvcd in all training events;

major Eldcrs' gathcrinps arc hcld every few years t o give the OFIFC direction;

mcetinps arc opcncd and closed in a traditional ~~ manner (ie. with ~ ~~~

thanksgivin~. grcctinps and swcct~rass) ;

thc ollicu IS smudpxl wrth swcctprass daily by the staff;

traditional [casts. s&rlalh dnd cur~rntlnics arc held; ~ -

an cmphablb is placcd on cxpcricncc, individual charactcristics and undcrstandrng thc rul1urc rather than acadcmic or professional qualiricationr whcn h ~ r ~ n p :

Native Management and Economic Development a t Tren t 13

* staff carry out rcsponsibilitics beyond thcir job descriptions (eg. helping out at feasts and socials, picking swectgrass);

the staff see themselves as 'helpers' responsible to the larger aboriginal community, rather than professionals;

* time off is given to staff to attcnd ceremonies and cultural events;

some management practices and servicc functions are carried out according to gender roles in the traditional culturc (eg. women run children's programs).

Compared t o non-aboriginal agencies. the 'organizational culture' of the OFIFC:

is more informal and lcss hierarchical;

' is based on decision-making by consensus;

is less specialized in its roles:

defines staff qualifications bascd more on expcriencc than formal educational qualifications: ~ ~

* relies heavily on peer support. tcam work, and delegation of tasks;

emphasizes individuals assuming responsibility for their own behaviour;

embraces a holistic approach to manapemcnt and providing services.

T h e Board a n d C u l t u r e

~ d e OFIFC adopted a Board of Directors model in 1978 t o be its governing body. The Board functions as the primary decision-making body of the OFIFC by setting policy. controlling expenditures. and overseeing programs and personnel decisions. At first they acted like any other Board: that is. with a Chair of meetings, voting, a constitution, an executive, and committees. An effort was begun in the early '80s to make the Board's functioning more in line with traditional aboriginal culture.

Na t ive Managemen t a n d E c o n o m ~ c Deve lopmen t a t T r e n t 14

Each Friendship Centre sends individuals to Board meetings as representatives of the Centre and the local aboriginal community. Delegates and observers participate equally in discussions. An attempt is made to recognize the diversity of cultures and communities. Ideally, Board meetings reflect the traditional values of kindness, honesty. sharing and strength. Thus Board members are expected to integrate these values in their behaviour. Attempts are made in meetings to treat everyone equally, with respect and kindness. Everyone is encouraged to speak. Participants are expected to be tolerant of others' points of view and, to some degree, to put aside the vested interest of their individual Centres for the good of the larger collectivity and come to a consensus on decisions.

It is perhaps this practice of consensus building which is the most challengingfor the Board. as it involves balancing the interests of the individual Centres and the OFIFC as a whole. (See the case study on "Decision-Making at the Board" for more discussion on this point.) The Board has implemented a number of practices which are designed to bring the operation i n line wi th traditional cultural beliefs and values, recognizing the diversity of circumstances among the Centres.

The Eagle Staff

A staff with two feathers was presented to the Federation by an Elder at the 1983 Annual General Meeting of the OFlFC in North Bay. The Elder had approached the North Bay Friendship Centre to ask if he could present the staff and feathers to the whole OFIFC. He also spoke about the meaning of the feathers. The OFIFC then started talking about the staff and eagle feathers and suggested that each Friendship Centre should hring an eagle feather, as is done at pow wows. By 1986 this pracrice was being followed. Now the host community is abked to ptbe their interpretation of the of the eagle staff at the Board meetlnp.

There are many interprctat~ons of the eagle and its role in aboriginal culture. Terry Doxrator. an Oneida and a member of the Board's Executive, relates the meanlng in this way:

Natlve Management iindXconomic Development at 'l'rent 15

The eagle has bccn symbolic to aboriginal pcople forcver. For thc Iroquois, the eagle flies the highest and sees thc furthest. Flying highest, he is closest to the Creator. Bccausc they can see so far ahead they can warn the people of impending danger. They can also carry messages to the spirit world. Thc eagle feather is like .~lam~um for the Iroquois, it is their authority. At the beginning of a Board meeting, the feathers a re collected, which represents the gathering of the mcmbers; When they are added to the staff i t is likc adding each Friendship Centre's 'fire' to the staff. which is then placed in thc centre of the meeting. When i t becomes the firc, thc feathers symbolize 'equal voice' and 'unity.' All things. if you go back. rcfcr to natural things and cvcntually to thc I'irc.

T h e eagle staff demands kindness, honesty, sharing and strength - t he fundamental values of aboriginal culture. The cultural model used at the Board meetings is a mixture of many traditions.

Circle H a n d s h a k e

Board meetings a r e sometimes opened with everyone in the circle greeting everyone else with a handshake o r a hug. Often participants go around twice. This is designed to put each person in touch with everyone else twice. and starts the meeting off with good feelings. T h e community where the meeting is held decides whether a 'circle handshake' is done o r not.

G i f t Exchange

At the social functions of the Annual General meeting. each Cent re gets the name of another Centre which has been drawn f rom a hat. They a re then obliged to bring a gift for each o ther which symbolizes t he culture of their home area . In turn. this practice symbolizes the value of sharing. Tradttionally. when aboriginal people travelled t o visit another community. the! marked the successful end of their journey by exchanging gifts. The gift exchange a t the Board socials continues the tradition and also symbolizes 'survival' of the Feder- at ion; that is, the people have arrived healthy and they can carry out their functions as a people.

Na t ive M a n a g e m e n t a n d Ecodornlc Ueve lopmenf at T r e n t 16

These ceremonies are important symbols of the cultural basis for management at the OFIFC. As Terry remarked, "The more the Board practices what they do accept, the stronger the understanding and action will get. Practice makes permanence."

Programs and Services

The Federation's programs and services are also examples of how the traditional aboriginal culture is incorporated into the work of the Federation. The start of that process can be traced to the first Elders gathering in 1985 on Birch Island, Ontario (see the case study on "Planning the Elders' Gathering"). Elders are the keepers of traditional wisdom in aboriginal society; consulting them on their views of the Federation's programs is, from the aboriginal cultural perspective, a natural consequence.

What was provided for the OFIFC by that meeting, and another held in Toronto in 1988, was a vision of how these programs should be oriented. Translated into technical planning terms, the meetings allowed for the formulation of a vision or mission statement. As the transcript of the Birch Island gathering states, "We need to keep in mind our own traditional values, and we must learn as much as we can about them ... We must try to apply all these teachings in our work and in our everyday lives." As well, the Elders view of those who worked in programs (and indeed on all Friendship Centre activities) was that by paying attention to who they were, they would see themselves as helpers, not social workers.

One consequence of the gathering as a planning process was the Federation's decision to make i t a priority to involve the Friendship Centres in the design. implementation and delivery of human services to ensure cultural appropriateness. The reorientation of the programs to reflect cultural values IS a time-consuming process, but until there is widespread consensus that the vision of the Elders (and now of the OFIFC) is a good way. there is little point in imposing it on those who are not ready. Only now. for example. is the Li'l Beavers Program ready to implement a program that shows the children "the Indian way" in its activities.

Native Management and Economic Development at Tren t 17

O n e o f t h e ways the Friendship Centres can be helped to understand the process of cultural revitalization is through the training programs offered as part of the Federation's services to member Centres. The training program is guided by four principles. The learning o r training experience is balanced in the circle of the traditional ways of learning: the physical, the spiritual, emotional and mental. In support of these principles, Elders and traditional teachers a re involved in the training as a primary resource to ensure culturally appropriate professional development.

Training has been a priority for the Federation since the early '80s. I ts importance to the Board can be measured by the fact that fully 25% of the Federation's budget is allocated to training. There a re 20 training sessions a year. organized and run by the Federation's staff as a f ree service to the staff and Boards of the Friendship Centres.

In its administration of programs and services, the Federation blends traditional values with western management techniques. The Li'l Beavers Program, for example, was evaluated in a formal process involving consultants, a s a re all Federation programs. The Federa- tion's record keeping and statistical reports for the funding agencies a re obviously highly professional, judging by the success of the Federation's funding proposals. -~

The Federation also has long-range planning in place which has identified priorities and future directions. Some of these a r e internal, but many deal with the Federation's external environment, eg. the governments with which i t deals. Provincial recognition of the cultural environment of the Friendship Centres is one example. The Federation has found that long-range planning makes their task of dealing with government easier. less conflicting or confrontational than before. Application of the aboriginal cultural value ~ of patience has helped too, so that the Federation i s able to take a longer view in its negotiations with government.

- Nat ive Management CnicbXoinicl)-evelopment at T r e n t 18

T h e Federation's Staff

The Federation's definition of management involves doing things in a suitable environment. For Executive Director Sylvia Maracle, this has meant defining and developing an office environment in which management based on traditional aboriginal culture has been blended with western management practices. Sylvia sees her role as a traditional leader: a servant of the community whose job it is to help the staff accomplish their tasks.

Her attitude is illustrated by the organization chart that places her at the bottom rather than at the top, similar to the Board's view of their organization which appeared earlier in this case study. This does not mean that the staff do not recognize her authority, but it comes from the characteristics inherent in the person, not from the title. Sylvia has no problem delegating important decisions when the staff is ready - she was not involved in making the decision on who would be hired in the competition for a Training Director, forexample, although the staff who were involved knew what she felt to be the necessary qualities for the job.

The monthly staff meetings are run by the staff, not by her. The staff is therefore very much a team. Most projects do not have one person solely responsible. but several. who work together cooperatively. The staff members speak of routinely helping each other in tasks, describing the office as "like afamily." All of the staff members have training responsibilities - secretaries train secretaries. The team spirit has been slow to develop; it wasn't there six years ago, said some of the long-time staff members. Staff development days run by Sylvia have been a big help i n fostering such spirit.

in order to explain the culrural values underlying these management practices. the Director ha\ hren very much a teacher. She believes that knowing who you i r e 1 5 vital i n helping others, and at staff meetings and other times hhe hpends time showing the staff what this means. The staff acknouledpes this and recognizes that the atmosphere in the office is different from other places: "People think the same way; what people say. how they do it is different." "I feel I miss something if I miss a day." said one member of the staff. Staff

Native Management and Economic Development at Tren t 19

members are encouraged to bring their children to work. which is another example of the spirit of the Federation office.

Characteristically, therefore, the staff members don't see their lives at the office as just another job, but as a commitment to the community. One consequence of this feeling has been a very low rate of turnover in the staff; as people grow in their jobs. they take over new responsibilities. Many of the staff have heen here for five years or more. Another reason for this low turnover is that the Board treats the staff very well. Staff salaries are above average for aboriginal organizations, and there are provisions for adoption leaves and paternity leaves, as well as flexible maternity leave provisions. The staff are encouraged to seek personal and professional development which can include traditional seasonal ceremonies as well as post- secondary courses. Sadly, the Federation has had to let some staff members go for alcohol and drug-related reasons.

An important part of reinforcing 'who we are' at the office are the ceremonies which open and close meetings, and smudging the office (see the case study on "Smudging the Office"). Staff members attend Board meetings where these ceremonies also play an important role. The staff enjoys a social life at the office - part of Sylvia's belief is that the staff needs chances to play; commitment can be fun! Traditional feasts mark the start of each season; birthdays are celebrated: Christmas parties are held for the staff children; and potluck lunches occur from time to time. One staff member said that these too help to de-emphasize the hierarchy.

Conclusion

No one at the OFlFC would say that developing an organization that is proudly aboriginal i n its values and behaviour is easy. Nor would anyone believe that the Federation'> task in this regard is complete. There are aspects of the Federation's practices which still need work. and as staff and Board members leave and new faces join the Friendship Centres, the task of teaching them and showing them "the Indian way" will never be completely over. What has been achieved, however, is remarkable. The Federation has been very effective at

Native Management and Economic Development a t Tren t 20

both satisfying the needs of the membership of the Friendship Centres and working successfully with non-aboriginal organizations in mainstream society - a tribute to the skilful blending of traditional ways and 20th century organization.

Exhibit 1

THE ONTARIO FEDERATION OF INDIAN FRIENDSHIP CENTRES (A)

Organizational Structure

\

\ MEMBERSHIP '\ \ \

'. FRlENDSHlP \ CENTPUeS

\ - ---/ BOARD I ,'

/

Natlve Management and Economic Uevelopmcnt at 'l'rent 22

Organizational Transformation: A Case Study of Two Aboriginal Organizations

David R Newhou~e'.~ and Ian D. Chapman1

This paper describes two ~ a n a d i a n aboriginal organizations which have attempted a second-order change, a transformation of their belief system, to make their organizations operate in a manner consistent with traditional aboriginal beliefs, values, and customs. One organization completed a sunessful change, the other organization's change process was abandoned after 2 years. The process of organizational change followed by the two organizations illustrates the link between interpretive schemes, organizational actions, and organizational structures. The process which focused primarily on the link between the aboriginally-based interpretive scheme and actions proved more effective than the process that linked the structure and the interpretative scheme. For the successful organization, the process of organizational transformation was shown to be incremental, iterative, multifaceted and required a lengthy period of time to complete. During the early stages of process of change, both old and new interpretative schemes were present within the organization. The process of organizational change then became a dialectic involving the old and the new. As a critical mass of people began to adopt the new interpretative scheme, the dialectic focused on different ways of implementing the new scheme. Leaders, critical to the process, had two essential tasks: enabling or permitting the presentation of new interpretative schemes and keeping thc dialectic going for a sufficient period of time to ensure the emergence of a interpretative scheme shared by a critical mass of organizational members.

- -

KEY WORDS: organ~zat~onal change; organizational transformation; second order changc

INTRODUCTION

O u r focus in this paper is on strategies for organizational transformation. The paper is hased on the experience of two Canadian aborigi-

'Department o f Native Stud~es. Trent University, Peterborough, Ontario K9J 7B8, Canada. 'Requests for reprlnts should b e addressed to David R. Newhouse, Department of Native Studies, Trent Univers~t). Peterborough, Ontario K9J 7B8, Canada.

996 Newhouse and Chapman

na13 organizations which attempted, one successfully, the other unsuccess- fully, to transform their organizational interpretative scheme from one based on the typical Western values in mainstream organizations to those based on traditional aboriginal values more typically found in collectivist societies. These organizations provide examples of differing strategies which were used to bring about a major change in world view for their membership.

Organization change has come to be characterized by two major approaches: organization development and organization transformation (Bar- tunek & Louis, 1988). Organization transformation focuses on large-scale discontinuous change within an organization - second-order change which involves changes in core processes, mission and culture (Levy, 1986). In the cases we present, we talk primarily in terms of the change in culture since both organizations intended a transformation in the fundamental beliefs of its members. With the change in beliefs would come changes in attitudes, perceptions, and behavior (Schein, 1985). Recently, the term interpretive scheme has been used to describe the shared assumptions of the organizational members which are used to explain events and how to act (Barhmek, 1984). Ranson, Hinings and Greenwood (1980) suggest that interpretive schemes are expressed in provinces of meaning which represent the organization's values. The use of interpretive scheme to describe aspects of the culture accords with the an- thropological tradition represented by Geertz (1973).

The interpretivist perspective on strategic change rejects the rational, logical processes of organizational development, and instead recognizes that symbolism is a crucial aspect of the change process. Johnson (1987) states that from this perspective, strategy is a product of managerial ideology. Change leaders must use the symbols of that ideology to create meaning for organizational members. Quite small actions can create large shifts in understanding when viewed as symbolic acts. Symbols include ar- tifacts, rituals and myths but, importantly, language too can be used symbolically in the change process (Whipp, Rosenfeld, & Pettigrew, 1989).

During the period of change there will be two competing interpretive schemes which at any time might be at odds with the structures and policies in the organization and with the actions of the actors. Allaire and Firsirotu (1984) propose a model of organizations in the period of change which contains three interrclated components: a sociostructural system, a cultural system, and the individual actors. The identification of a cultural system which is distinct from the structural system and the actors presents two

)The Aboriginal people of Canada include Indian, Inuit (formerly Eskimo) and Metis. There are now approximately 1.0 million Aboriginal people in Canada and approximately 6000 Aboriginal organizatiom. half in the private sector, half in the public sector. Most arc small . . (<SO employees).

Organizational Transformation 997

possible strategies for change and resonates with those discussed by Bar- tunek (1984) based on an identification of a developing interpretive scheme and its relationship with action and structure. In either case, transformational change is directed towards introducing a new interpretive scheme. The interpretive scheme can develop through the actions of the actors; which may lead to an appropriate S t ~ c t ~ r d system, or it can be incorporated in a new structural scheme which requires the actors to change their actions. As Hinings & Greenwood (1988) show, the relationship between values as reflected in interpretive schemes and structure is problematic. The two cases present an opportunity to clarify this relationship by explor- ing the strategies for change each organization adopted and their outcomes.

RESEARCH METHOD

We conducted our research during the summer and fall of 1991. We conducted structured interviews with key board members, executives and staff of each organization over a 3-month period. These interviews ranged from one to three hours in length and were focused on gaining an understanding of the strategy for change, the various factors which influenced it and individual understanding of the process of change andi ts meanings. As well, we were given access to minutes of meetings, reports and policy documents which provided an understanding of the organizations during their change period.

THE ORGANIZATIONS

Founded in the mid-seventies, both organizations are in the not-for- profit sector and have large, geographically diverse and politically astute memberships. The organizations operat'e in an urban environment and are made up of a small headquarters unit which serves the member agencies by providing, among other things, political representation or lobbying on behalf of the agencies and their membership. Initially, in their formal structure, they were similar to non-native organizations in the not-for-profit sector. A Board of Directors was elected by the member agencies and, in turn, it elected a President. The Board established goals and policies which were carried out by an Executive Director supported by a headquarter staff of less than 15 people. By adopting these mainstream structures and practices, the organizations were able to become legally incorporated entities which legitimated them in the eyes of the governments from which they sought support (Meyer 6: Scott, 1983).

The two aboriginal organizations (hereafter called A and F) were cho- sen because, although very similar in their missions, their strategies for


organizational changes were different as were their outcomes. The analysis of their process of change offers some insights into strategies for transformational change.

ORGANIZATION F

The new governing structure described above was put in place in 1978. Decisions were made by votes of the Board under the leadership of a President described by Board members of the time as a "benevolent dic- tator." At that time, formal goveming structures were relatively new for aboriginal organizations;~for 2 years, the Board was tom by personality and resource conflicts which culminated in four member agencies withdrawing from the organization. This was a time of great crisis for the organization; it was not clear that the organization would survive. The organization's discomfort with Western management practices provided the President and the Board with a new vision for the organization - the belief that it ought to be possible to run itself in a fashion that was much more in accord with practices which were based on fundamental aboriginal beliefs and values. In 1980, this was a radical notion. A long period of acculturation had led aboriginal organizations to believe that they must act l i e those in the mainstream society. But the aboriginal culture lingered in many communities and individuals. Their cultural memory provided the leadership with a vision - a realization that the collectivist nature of aboriginal culture, for example, could lead potentially to a more effective organization in which the members would feel comfortable and accomplish their goals. There was also considerable debate within the organization about the nature of this change: there were those who felt that the organization should continue to evolve along the lines of mainstream organizations and leave aboriginal tradition and custom behind; another group felt that this was the way to go, that it was possible and indeed imperative to begin to operate in an aboriginal fashion. Within this group, there were also debates about the way in which the values should be interpreted within the organization.

THE PROCESS OF CHANGE

Thc transformation started when organization F began formally to explore how it could begin to implement the new vision. The President believed that this could be accomplished through a formal statement of a Code of Ethics - ironically an idea that he borrowed from a similar mainstream organization. The Code was intended to establish standards of interaction between member agencies and individuals. In particular, the code urged the adoption of aboriginal cultural values to aid this interaction


and spoke of the need to first and foremost show respect and honor all Native beliefs and customs. The code became a condition for membership, and was (and continues to be) prominently displayed throughout the organization. However, it was one thing to say that members should honor aboriginal values and customs, but another thing to explain what that meant, particularly in an organizational setting.

The leadership for the needed changes was taken up by the Executive Director, a powerful ~ o h a w k ~ woman. She quickly realized she needed help from the traditional keepers of aboriginal wisdom-the Elders, men and women who were the spiritual leaders i n traditional aboriginal society. These respected community leaders were asked to suggest how aboriginal values and customs could be translated into the workplace - in particular the nature and form of the programs administered by the member agencies. Besides the rather general guidance the Elders provided, their involvement was important legitimation for the process Executive Director and the Board had set in motion: But the organizational leadership - and in particular the Executive Director - had to translate the advice into concrete behaviors within the organization, thus moving into the transitional stage of the process. ~ -

What did it mean, as the Executive Director put it, "to act like an Indian?" The question captures the approach she adopted - the emphasis was to be on behavior, behavior supported at all times by the potent symbols of aboriginal culture. A good example, rife with cultural symbolism, would be the monthly planning meeting held at headquarters and attended by all the staff. The meetings begin with the ritual burning of sweetgrass5 where everyone passes the smoke over themselves to symbolize the clearing of the mind in preparation for the meeting and unity with all present. The meeting is held at a large round table which represents the powerful symbol in aboriginal life of the circle at which every has an equal voice, a behavior based on the value of respect. Teams take on the work rather than individuals which blurs any formal hierarchical relationships between the staff and emphasizes a collectivist behavior based on other values such as caring and sharing (Chapman, McCaskill, & Newhouse, 1991).

Like the staff meetings, the Board meetings are opened with prayers and ritual by an invited Elder, and, in an act based on aboriginal myth, each agency places an eagle feather on a staff prominently displayed at

?he Mohawks are one of the six tribes or nations which make up the Iroquois Confederacy. The Confedera? is a 30U + year-old confederation of nations which is still very much alive. The Director was well schouled in the traditions of diplomacy and organizational practices of the Confederacy.

5~weetgrass is a sacred grass growing throughout Canada. Some Aboriginal people use it in ritual acts of purification. prior to engaging in spiritual ceremonies.

loo0 Newhouse and Chapman

the meeting table which symbolizes equal voice and unity. As a consequence of these constant reminders of aboriginal values, the Board has learned to make decisions by consensus, and the former battles over each agency's priorities have almost disappeared. This perhaps explains why, in this more stable state, the original formal corporate structure based on mainstream Canadian values can be kept in place since how the structure works now reflects aboriginal values. Retaining the structure also allows the organization to continue to appear legitimate to those organizations in the wider society who fund it.

For the Executive Director and other key members of the staff, the changes in behavior and understanding became a personal journey of re- affirmation and discovery, so that they could impart what it meant to act like an Indian to other organizational members. In this way they became teachers or personal agents for change exemplifying through their actions the desired behaviors and in meetings explaining how the behaviors were based on traditional values. Members of the headquarters staff who could or would not fit in with the new behaviors left and new staff was hired in part on criteria that included a traditional orientation. The short-term focus was on the headquarters staff. However, this knowledge had to go beyond the organization's staff at headquarters to encompass those working in the member agencies.

For the 22-member agencies which delivered the services, not only did the programs have to be culturally appropriate, but also the manner in which they were delivered. The Board, which was made of representatives from each agency, ensured that the agencies were involved in the design, implementation, and delivery of the programs through visits by the headquarter's staff and discussion papers that came out of the visits. One major task for the staff at headquarters was to devise not only culturally appropriate content for programs, but the training necessary to deliver that content. Thus the training staff in headquarters in turn became teacher-trainers, passing on their experientially learned knowledge throughout the organization, so becoming agents for change themselves. Throughout this period, about one-quarter of the organization's budget was allocated for training - not only for those administering programs, but, because of turnover. for new Board members and agency staff.

Gradually, the local agencies began to follow the example set in the headquarters by becoming less hierarchical, more team oriented, and speaking openly about aboriginal values like honesty, caring and sharing, and what they mean for behaviors. These values are central to aboriginal tradition. Many organizational members displayed their cultural compe- tency as they talked about how they used the values as a foundation for many of their organizational practices. For these actors who, typically, have


been part of the organization for some time, there has clearly been a personal transformation.

Management practices such as teamwork bear little relationship to the formal organizational chart which continues to define positions with specific responsibilities and authority,--Yet within the formal structure things are very different. How the organization acts has redefined how organiza- t ional members unders tand what t h e organizat ion is about . Decision-making, which had been one of the most divisive causes of conflict in the early days, has now evolved into a much more traditional process of consensus6 instead of the formal majority vote required in the organization's constitution. (Votes continue to be recorded, but now everyone is either for or against a motion.) In marked contrast to the behavior 12 years - ago, individual agencies are able to view the organization as a whole and to recognize that the needs of another agency can have precedence over their own.

Finally, for' organization F, their ~ mission ~~ -- has ~~ ~ ~ subtly changed over a

decade. At the beginning, headquarters saw themselves leading the membership, lobbying the government for resources.~~&~the~organiz.ation has changed, the headquarter's staff now talk of themselves as servants of the membership helping them access the needed funding, becoming in the process a great deal less directive. The changes in this organization seem transformational as the members of the organization understand themselves and the organization through a new interpretive scheme whose source lies in traditional aboriginal culture.

ORGANIZATION A

For organization A, the early stage of the change process was similar to that of organization F; there were comparable reasons for change, and a new vision was inspired by Elders. However, the change process was re- jected by thc membership after a 2-year trial of the new system.

?he dec~s~un.making rulc5 of the Confederacy were based on consensus. These were contained in the Conct~tuuon of the Iroquois Confederacy, first translated into English at the turn of thc twcnt~eth century one of the author's great grandfathers. There were no votes a1 any tmc. The rules werc quite clearly spelled out in the 300-year-old constitution: an issue or question wax placed before the 50 Chiefs by the Speaker, Atotarho. The Council was dividcd into group5 Discussion occurred within these two smaller groups who then reported back to the main Council. If no consensus emerged, the discussion was referred back In the evcnt of a dcadlock. the Onondagas, the nation of the Atotarho, was empowered to decidc. No discuss~uns were to occur after sunset as darkness was felt to impede the mind. The area for council meetings had to be kept clean to symboiue the purity of mind that was necessary i f a consensus w;ir to be possible. - ~

1002 Nmhouse and Chapman

In the early eighties, the membership of the organization experienced frustration with the goals, structure, decision-making processes, and the overall management of the organization. An Elder's council which had been included as part of the original structural design had been lost. Members of the Board who were responsible for the stewardship of the organization found themselves increasingly at odds with the desires of the membership and with each other, resulting in an atmosphere of conflict and frustration.

The situation became critical in 1987 when the President resigned and a special general assembly was called to elect a successor. After much discussion and with a great deal of trepidation, the membership decided that a complete change in the way in which the organization was structured and the manner in which it operated was necessary to solve the problems they were experiencing. They decided to run the organization in accordance with traditional aboriginal values and customs which they believed, having noted the changes underway in organization F, would permit them to build a more effective organization.

How this was to be done was not clear at that time, so a committee was struck, and two consultants, a respected Elder. and his apprentice, were engaged to guide the discussions in the process of discovery. A year later, the committee recommended to the h n u a l Assembly a new constitution, a new organizational structure and a new decision-making process, all based on traditional values. The values were to be those contained in the medicine wheel (a four directions model) and on commonly expressed aboriginal values of caring, sharing, honesty, and strength. Consensus was to be the basis of a process of decision making and conflict resolution. Of a11 the recommendations, the one on structure was the most radical.

The organizational structure was to be based on the circle in the medicine wheel (Fig. 1). a common teaching tool in the Ojibwa and Plains Cree traditions. The structure is not hierarchical, it is made up of concentric circles representing of the four directions, north, east, west, and south. Each i

direction symbolizes a set of responsibilities. For example, the east where the sun rises bringing new light each day represents new knowledge, and so members from the eastern part of ~ a n a d a ~ w e r e assigned the responsibility for education. culture, and heritage in the organization. The four directions model was designed to foster cooperation and unity for breaking down traditional provincial barriers (Newhouse, 1991).

The intent of choosing a circle as the basis of the structure of the organization was to encourage the members to think of the organization as a traditional assembly, as a council in which they shared the responsibilities which they had set out for themselves. The aboriginal value of sharing was thus incorporated into the organizational structure and then into the organizational culture. The structure also emphasized trust and

~ ~

Orgsnizational Transformation

Nonh Action

Adminismadon Nation

West Reason Special Projecrs

Clan

South Knowledge

Training Family

East Vision

Planning Individual

Fig. 1

cooperation by removing the hierarchical structure and replacing it with a circle in which all shared responsibility.

The organization recognized it would be extremely difficult to operate with this new vision without some other changes which would support it. Accordingly, they altered the constitution in order to reflect the structural changes, and created a code of ethics describing the organization's values which was intended to serve as a guide for people's behavior. They also decided to hold workshops at each annual meeting which would focus on traditional teachings. Finally, they incorporated aboriginal prayers into their meetings to open and close them. These changes in the formal documents of the organization and their practices were intended to reinforce the organizational culture. However, in less than 2 years, the entire system was scrapped after the membership found the new structure too difficult to understand and work with. Despite having voted for the changes, many believed the process was dictated by Headquarters and never felt they "owned" the new structure and its underlying values.

DISCUSSION

.. .*-~-------- ..,

Newhouse and Chapman

Our interest in examining the process of change in these two organizations was stimulated by the sharp contrast in outcomes of the change efforts. In both cases, the organizations had attempted transformational change. In essence, both organizations attempted to change their under- standings of themselves, their interpretive schemes (Bartunek, 1984). This to us provided a rare opportunity to observe the process of second-order change and to investigate the relationship between interpretative schemes, organizational action, and organizational structure.

The process of change at organization F can be described as initially a form of dictatorial transformation which evolved to a form of charismatic transformation as the leader gained knowledge and respect (Dun- phy & Stace, 1993). The process caused the members' understanding of themselves and the organization (the interpretive scheme) to be based on new values and beliefs and resulted in changed work activities. The process which brought about the new belief system used symbolism, cultural legitimation, language, and ritual all of which were aimed at creat- ing a new culture for the members. Very little attention was paid to the formal structure. A great deal of attention was paid to the behavior of individuals.

Organization A, on the other hand, had no one person who led the change. The change effort could be characterized as "charismatic transformation," based upon a collaborative, consultative style of change management. An executive committee, using the advice of elders and consultants, created an elaborate structure which implied new work processes based on a new world view. Culture was to be acquired through the use and understanding of the structure. The questions we asked ourselves were why were different approaches used, and why was only one successful?

Ah' ANALYSIS OF CHANGE

Our analysis of change will be holistic since the context, process, and content of the changes all affected-their outcomes (Pettigrew, 1985). To answer the question we set ourselves, all three elements play a role and interact with each other. For example, the contexts in which both organizations conducted their change are similar if we look at the external or outer environment, but different if we examine their inner environment. These differing contexts influenced the process each chose to follow.


THE CONTEXT

The outer environment for each organization included a social, political, and legal sense of what organizations are and how they should behave. As well, there was a long history - -- of perceptions about aboriginal people. They were assumed to live in separate enclaves called reserves under the benevolent, but autocratic guidance of the federal Department of Indian Affairs and Northern Development. The Department required the reserves to be managed by means which the Department defined and im- posed, based on mainstream practices. For example, the local band councils behave like governments elsewhere in Canada as they administer the internal affairs of the reserve based on policies derived and required by the Department. Historically, many tribes had elaborate traditional forms of government, some so sophisticated that they were one source of the U.S. constitution (Grinde & Johansen, 1991). But this history was ignored and even suppressed. Even though the two organizations were based in urban centers, the members were largely from reserves and had substantial management and administrative experience in dealing with mainstream organizations.

The consequence of this history was an assumption that the organizational norms of the larger society would be used by all organizations in society. Institutional ambient environments can affect structures and behaviors based on society's rules and belief systems (Rowan, 1982). The structures, policies, and practices of these organizations must accord with social norms in order to gain legitimacy. This is particularly true of not- for-profit organizations like A and F where there are strict legal rules as to what constitutes not-for-profit. Laws of incorporation require an elabo- ration of the governance, legal rights, and responsibilities of the organization before they are granted a charter.

Moreover, A and F relied on government support to help them carry out their programs. All these factors translate into pressure to at least appear to behave exactly like all other not-for-profit organizations. The casual observer of F would find that its structures and decision making appear to be unchanged from what they were 10 years ago. However, due to quite different belief systems. the interpretation the organization members puts on these functions is completely different from the interpretation the observer places on them. Thus, F has retained its legitimacy and indeed has increased its support from government agencies based on many positive evaluations of its programs. F offered a model for other aboriginal organizations on how to manage using aboriginal values.

For A, its environment not only included all the norms of the ambient society, but the example of F which had retained its legitimacy while com-


pletely changing its belief system. The small world of Aboriginal organizations may be thought of as an important aspect of the ambient environment of A. Simply put, A knew the vision of an organization based on aboriginal values was possible. At the start of F's change process there were no mod-

~ - i

els, no assurance their objective was achievable. These factors significantly influenced the change strategies each organization followed.

THE PROCESS

The precipitating crisis which started off the process of change at F centered about decision-making particularly the allocation of resources. Some centers perceived that they were not favored by the President and his clique and the squabbling deeply offended those who recalled that traditional customs emphasized the good of the group rather than this "one center, one vote" approach which was mandated by articles of incorporation. For those centers that remained after the crisis, the recollection that there was another way to work together became the basis of a new vision of an organization that "respected Indian customs" as the code of ethics

I

put it. Thus, they experienced an "unfreezing" that is typical of organizations in crisis (Schein, 1980). But what did this mean in practical terms? In particular, how could aboriginal customs help run a modern twentieth century organization?

Aboriginal values were well known, but few in contemporary times have tried to base an organization's behavior on them (Kluckhohn & Strodtbeck, 1961; Anders & Anders, 1986; Chapman, McCaskiU, & Newhouse, 1991). The situation called for leadership, but volunteer boards can only lay down very general directions; the day to day operations were in the hands of the Ex- ecutive Director. F was fortunate to have a powerful and charismatic Mohawk woman as Director who became the leader of the change process which had been sanctioned by the Board. There was no overall detailed blueprint for the change process for her to follow which precluded the kind of action that A followed. Change had necessarily to be introduced slowly and incrementally as the Director and a few core members of the headquarter's staff learned personally what it meant to manage an organization based on aboriginal beliefs. This led naturally to an initial focus on value- 6

based behaviors, both in day to day management and in programs. The Director was able to draw on two sources to guide her change

process, aboriginal culture itself, and the important role played by Elders in that culture. All cultures use symbolism and ritual in their activities. As the examples given earlier show, round tables, sweetgrass ceremonies, and eagle staffs are constant symbolic reminders of "how we do things around

1007 Organizational Transformation

here and why." Language in F talked about "walking like an Indian," and "translating values into everyday good living."

The latter phrase, used frequently by the Director to describe what happened at F, captures very well the strategy she adopted. She was aided by consultation with Elders who were asked, for example, what F's programs for children and those in trouble with the law should contain. Their advice molded both the content of the programs and, more importantly, how they were camed out. Thus, the new programs which were presented to the 22 centers and their membership were backed by powerful cultural legitimation. These observations endorse the view expressed elsewhere that transformational change must involve all aspects of the expression of core beliefs in the culture (Whipp, Rosenfeld & Pettigrew, 1989).

For A there was asimilar period of crisis throughout the organization based on the organizational members' dissatisfaction with the decision-making processes and overall management. A was a national organization as opposed to F's exclusively provincial mandate which made it a larger and more heterogeneous organization representing aboriginal peoples across Canada. The decision to adopt an aboriginal concept of management based on traditional values was made by a general assembly which entrusted an executive committee and consultants to devise an appropriate change for the organization. There was no obvious leader in this process, and it seemed the organization relied on their consultants to create the detailed vision without much consultation. The strategy they recommended was a new, aboriginally-based structure from which flowed the organizational activities such as decision-making and policy development.

Although the new system was agreed to in the annual assembly, there was little training provided in the use of the new structure. Moreover, all aboriginal peoples in Canada do not share, in detail, the same interpretations of beliefs. The absence of a strong leadership and training~coupled with poor understanding about the new, complicated structure very quickly made the organization drop the attempted change within 2 years.

THE CONTENT

In the early stages of the change in organization F, the objective was to create a new interpretive scheme by which the actors related to each other, first at Headquarters and then, by means of training, throughout the member agencies. Because the process was a gradual exploration for everyone in the organization, leaders included, the action focused entirely on incrementally developing personal behaviors which expressed the traditional aboriginal values. At the start, the leaders had no clear detailed vision of what and how the new ideology should be expressed. They were

lo08 Newhouse and Chapman

aware that if they were to continue to be leaders, they were going to have to learn to lead by example both at work and at home. The conversion to a new interpretivist scheme has many of the elements of a religious conversion, especially when the interpretations are based on centuries of aboriginal belief systems. The Director eventually inspired first a core group who became trainers and change agents themselves and then others by what amounted to a personal conversion, a key part of the change process also noted by Westley (1990) in the very different circumstances of an auto plant. For a long time, Westernized members resisted the change, especially those who were Christian who feared, incorrectly as it turned out, the new belief system required a change in their present religious beliefs. Some left, others who could or would not embrace the new interpretive scheme or rather the actions which followed from that scheme-were asked to leave. New members were required to be at least sympathetic to traditional culture before they were hired. Throughout all of this the organization appeared to sustain a formal structure and governing mechanism which appeared at odds with the interpretive scheme's emphasis on the group rather than the individual.

However, within the components of the organization, the emphasis on group work and lack of hierarchy meant the forma1 organizational struc; ture began to have little significance for the members. Projects were carried out by groups across hierarchical lines, meetings were not necessarily run by the Director. It is in this sense that F accords with Bartunek's (1984) observations that structural change is linked to actions following from interpretive schemes rather than directly to the changing interpretive scheme itself. This sense that structure, interpretive schemes and actions are modified by interaction with each other is also the basis of Allaire and Firsirotu's model. Some sociostructural changes were brought about by the actors, based on the culture - new working relationships, new personnel policies. But as F has reached the "refreeze" part of the change process, the formal structure remains unchanged.

Bartunek (1984) also reported a lengthy period where the religious order was not able to deal with structural change until an ongoing dialectic resulted in synthesis and a shared interpretive scheme. However, in the end, a new structure could be created based on the shared interpretive scheme that replaced the former informal relationships. But unlike the order, F felt constrained by the environment to leave the formal structure untouched which seems to contradict Bartunek and others who believe that when interpretive schemes change so must, eventually, the structure change. However, this apparent dissonance between F's structure and interpretive scheme is just that - apparent. The Director affirmed that there was some discomfort at one stage about continuing with the restraints of

Organizational Transformation

the structure, but as members throughout the organization became confi- dent in their understanding and use of the changing interpretive scheme, the apparent constraints turned out not to matter. Selections to the Board from member agencies, and decision-making by the Board are governed by actions that are entirely consistent with the new interpretive scheme . - (e.g., consensus decisions) and therefore dramatically change how F's members interpret the structure. How the structure is interpreted thus depends on what organizational belief system it is viewed from - the Western or the Aboriginal. The external legitirnators and the internal membership can both be satisfied with the formal structure therefore there is no need to change it. Ogbor (1990) called this process institutional reinterpretation and redefinition as Western management pr&ticeswere re-defined by the ~- members of a Nigerian organization to conform with traditional Nigerian !

practices. The question arises as to whether A's strategy for change was doomed

from the start or might have worked in other circumstances. The proposed new structure carried with it a new belief system and thus new ways to apportion tasks to members and their local organizations. Inevitably, the wholesale adoption of this second order change would create uncertainty and chaos as former interpretivist schemes were unlearned (Tushman & Romanelli, 1985). There was no possibility of stability in A, because every- thing changed all at once, old relationships and structures vanished and moreover, no matter how internally consistent the new structure was, there seemed to be no room for the membership to participate in the change process. The intent was that by doing certain things legitimated by the traditional origins of the structure, members would learn and begin to share in the values and assumptions of the new interpretive scheme. Although the scheme had been agreed to by the board which included members from every provincial association, the membership at large felt it was not consulted and therefore thr process had been coercive rather than cooperative which undermined one important aboriginal value of respect for others. Thus, the membership actively began to oppose the scheme. The opposition was so strong, the organization reversed its decision within 2 years.

For the interpretive scheme to become shared over time, it assumed the values were self-e\ident and that they would automatically be shared by everyone because everyone was aboriginal thus disregarding the varied values held by aboriginal groups across the country. Conversion cannot hap- pen overnight, and given the nature of volunteer organizations, coercion is not a good long-term strategy for change. The member organizations needed a lot more time and training than the new system allowed, tasks should have been simpler, and the chance to let the structure develop from action seem to br the lesson A might have learned from F.

1010 Nmhouse and Chapman

CONCLUSIONS

The process of transformational change can be described as complex and less than straightfornard. It involves a complex interaction between - interpretive schemes, organization actions, and organizational structures. Although the relationships developed in AUaire and Firsirotu's model may make it seem oossible for the change leader to intervene at either the ac- - tors/action component or the sociostructural component, it seems a fully explicated sociostructural system does not easily allow for an incremental exploration of the new interpretive scheme by the organization's actors and therefore is a less effective means of introducing change (Burke, Clark, & Koopman, 1984). The lesson from these cases is: interpretative schemes lead to organizational actions which then lead to new organizational structures (or reinterpretations of the same structure).

The process of organizational transformation then occurs as a result of repeated reinforcement between the interpretive scheme and action. What occurs therefore is not so much a dramatic shift in values but a gradual incremental emergence of a new understanding or sharing of the interpretative scheme which allows new structural forms to develop. The dialectic between the as-yet-unconverted and the change agents continues until a critical mass of organizational members shares the interpretative scheme or failing that the scheme is abandoned. The role of the leader within the organization then becomes critical to the whole process: he or she must perform two essential tasks: constantly reinforcing the interpretive scheme by word and example and constant use of the symbols which represent the new interpretative scheme, and supporting the dialectical process for a sufficient length of time to permit a critical mass of organizational members to share the new scheme through conversion

REFERENCES ALLAIRE Y.. 6: FIRSIROTU. hq. E. Theories of organizational culture. O&anizalion Studies.

1984. 5. 193-226. ANDERS. G.. 6: ANDERS. K. K. ~ncom~atible goals in unconventional or~anizations: The -

po1111n of AIJA;~ n.i!lvc curporalions: Orgon&tion Studies, 1986, 7, 213-233. BARTCKEX. J . hl Chmc~nc intcrnreli\.c schemes and oraanizational rcstructurinn: T h e cx- s~ - - -

ample of a religioub order. Adminirtralive Sciences Quarterly, 1984, 29, 355-372. BARTUNEX. J . hl.. b LOUIS. hl. R. The interplay or organizational development and or-

ganmtional transforma~~on. Rrsearch in Ofganiza~ional Change and Development, 1988, 7 47.1U -, . . . . . . .

BURKE. W W.. CLARK. L. P.. 6: KOOPMAN, C. Improve your'^^ project's chances for success. Trarnmn,~ and Dewlopmrnt Journal, 1984,38, 62-68.

CHAPMAN. I., McCASULL D., & NEWHOUSE, D. Management in contemporary aboriginal organizations. The Canadian Journal of Native Studies, 1991, 11, 333-349.

DUNPHY. D., STACE, D. The strategic management of corporate change. Human Rela- lions. 1993. 46, 905-920.


GEERTZ, C. Interpretation of cultures. New York: Basic Boob, 1973. GRINDE D.. & JOHANSEN, B. Eremplar of libem Native America and the evolution of . .

democmcy. Los Angels: University of California Press, 1991. HININGS, C. R., & GREENWOOD, R The dpamics of strategic change. Oxford: Blackwell,

1985. JOHNSON, G. Strategic change and the kanagement process. Oxford: Blackwell, 1987. KLUCKHOHN. FLORENCE. & STRODTBECK F. Variations in value orientation. New .

York: Row, Peterson, 1961. LEVY, A. Second order planned change. Organiutrional Dynamics, 1986, 4-20. MYERS, J. W., & SCOTT, .I. R Orxanizational environments: Ritual and rarionalig. California: - --

Sage, 1983. ~ ~

NEWHOUSE, D. The manager in aboriginal organizations Searching for the balance, Belling- ham, Washington: Organizational Behavior Teaching Society; 1991.

OGBOR, J. Organimional change within a cultural contert. Sweden: Lund Univeisity.Pi&, 1990.

PETTIGREW, A. M. Examining change in the long term context of culture and politics. In J. Pennine and Associates (Ed?.), Omanizational strate& and chan~e. San Francisco:'-- . .- . .. - - ~ o s s e ~ - ~ & , 1985.

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RANSON, S., HININGS, B., & GREENWOOD, R. The structuring of organizational structures. Administrative Science Ouarterly. 1980. 25, 1-17.

ROWAN, B. Organizational structure and insti&i&al environment. Admin&rative Science Quorterb, 1982, 27, 259-279.

SCHEIN, E. Organizational pycholoa. New Jersey: Prentice-Hall, 1980. SCHEIN, E Organizational culture and leadership, San Francisco: Jossey-Bass, 1985. WESTLEY, F. The eye of the needle: Cultural and personal transformation in a traditional

organization. Human Relations, 1990, 43, 273-293. WHJPP, R.. ROSENFELD, R., & PETI'IGREW, A. M. Culture and competitiveness: Evi-

dence from two mature U.K. industries. Journal of Management Studies, 1989,26,561-586.

BIOGRAPHICAL NOTES DAVID R. NEWHOUSE is anAssociate Professor in the Department of Native Studies and the Administrative Studies Program at Trent University, Peterborough, Ontario. He is a member of the Onondaga Nation of the Iroquois Confederacy and has extensive experience in aboriginal organizations. His research interests is modernizati& within aboriginal communities and organizational change. He is currently finishing a case study on the development of the local economy on the Six Nations of the Grand River Indilan Affairs and Northern Develop- ment.

IAN D. CHAPMAN is a Professor in the Administrative Studies Program at Trent University, Peterborough. Ontario. He was Director of the Program 1980-88 and founding co-Director of the Native hlanagement and Economic Program 198&90. His research interests include culture and management. especially in aboriginal organizations, and organizational change. He is presently finishing a major study of change in the Federal Department of Indian Affairs and Northern Development in Ottawa.

-

Human Relations, VoL 49, No. 7, 1996


David R Newho~se'.~ and Ian D. Chapman1

This paper describes two Canadian aboriginal organizations which have attempted a second-order change, a transformation of their belief system, to make their organizations operate in a manner consistent with traditional aboriginal beliefs, values, and customs. One organization completed a successhl change, the other organization's change process was abandoned after 2 years. The process of organizational change followed by the two organizations illustrates the link between interpretive schemes, organizational actions, and organizational structures. The process which focused primarily on the link between the aboriginally-based interpretive scheme and actions proved more effective than the process that linked the structure and the interpretative scheme. For the successful organization, the process of organizational transformation was shown to be incremental, iterative, multifaceted and required a lengthy period of time to complete. During the early stages of process of change, both old and new interpretative schemes were present within the organization. The process of organizational change then became a dialectic involving the old and the new. As a critical mass of people began to adopt the new interpretative scheme, the dialectic focused on different ways of implementing the new scheme. Leaders, critical to the process, had two essential t a s k enabling or permitting the presentation of new interpretative schemes and keeping the dialectic going for a sufficient period of time to ensure the emergence of a interpretative scheme shared by a critical mass of organizational members. ~~~

KEY WORDS: organizational change; organizational transformation; second order change.

INTRODUCTION

Our focus in this paper is on strategies for organizational transformation. The paper is based on the experience o f two Canadian aborigi-

'Department of Native Studies. Trent University, Peterborough, Ontario K9J 7B8, Canada. 2Requests for reprints should b e addressed to David R Newhouse, Department of Native Studies. Trent University. Peterborough, Ontario K9J 7B8, Canada.


na13 organizations which attempted, one successfully, the other unsuccess- fullv. to transform their organizational intemretative scheme from one , , - based on the typical Western values in mainstream organizations to those based on traditional aboriginal values more typically found in collectivist societies. These organizations provide examples of differing strategies which were used to bring about a major change in world view for their membership.

Organization change has come to be characterized by two major approaches: organization development and organization transformation (Bar- tunek & Louis, 1988). Organization transformation focuses on large-scale discontinuous change within an organization - second-order change which involves changes in core processes, mission and culture (Levy, 1986). In the cases we present, we talk primarily in terms of the change in culture since both organizations intended a transformation in the fundamental beliefs of its members. With the change in beliefs would come changes in attitudes, perceptions, and behavior (Schein, 1985). Recently, the term interpretive scheme has been used to describe the shared assumptions of the organizational members which are used to explain events and how to act (Bartunek, 1984). Ranson, Hinings and Greenwood (1980) suggest that interpretive schemes are expressed in provinces of meaning which represent the organization's values. The use of interpretive scheme to describe aspects of the culture accords with the an- thropological tradition represented by Geertz (1973).


During the period of change there will be two competing interpretive schemes which at any time might be at odds with the structures and policies in the organization and with the actions of the actors. Allaire and Firsirotu (1984) propose a model of organizations in the period of change which contains three interrelated components: a sociostructural system, a cultural system, and the individual actors. The identification of a cultural system which is distinct from the structural system and the actors presents two

%he Aboriginal people of Canada include Indian. Inuit (formerly Eskimo) and Metis. There are now approximately 1.0 million Aboriginal people in Canada and approximately 6000 Aboriginal organizations, half in the private sector, half in the public sector. Most are small ( 4 0 employees).

997 I


possible strategies for change and resonates with those discussed by Bar- tunek (1984) based on an identification of a developing interpretive scheme and its relationship with action and structure. In either case, transformational change is directed towards introducing a new interpretive scheme. The interpretive scheme can develop through the actions of the actors, which may lead to an appropriate structural system, or it can be incorporated in a new structural scheme which requires the actors to change their actions. As Hinings & Greenwood (1988) show, the relationship between values as reflected in interpretive schemes and structure is problematic. The two cases present an opportunity to clarify this relationship by explor- ing the strategies for change each organization adopted and their outcomes.

RESEARCH METHOD

We conducted our research during the summer and fall of 1991. We conducted structured interviews with key board members, executives and staff of each organization over a 3-month period. These interviews ranged from pne to three hours in length and were focused on gaining an understanding of the strategy for change, the various factors which influenced it and individual understanding of the process of change and its meanings. As well, we were given access to minutes of meetings, reports and policy documents which provided an understanding of the organizations during their change period.

THE ORGANIZATIONS

Founded in the mid-seventies, both organizations are in the not-for- profit sector and have large, geographically diverse and politically astute memberships. The organizations operate in an urban environment and are made up of a small headquarters unit which serves the member agencies by providing, among other things, political representation or lobbying on behalf of the agencies and their membership. Initially, in their formal structure, they were similar to non-native organizations in the not-for-profit sector. A Board of Directors was elected by the member agencies and, in turn, it elected a President. The Board established goals and policies which were carried out by an Evecutive Director supported by a headquarter staff of less than 15 people. By adopting these mainstream structures and prac- tlces, the organizations were able to become legally incorporated entities which legitimated them in the eyes of the governments from which they sought support (Meyer & Scott, 1983).

The two aboriginal organizations (hereafter called A and F) were cho- sen because, although very similar in their missions, their strategies for



!

ORGANIZATION F

The new governing structure described above was put in place in ., 1978. Decisions were made by votes of the Board under the leadership of a President described by Board members of the time as a "benevolent dic- 1

tator." At that time, formal governing structures were relatively new for aboriginal organizations; for 2 years, the Board was tom by personality and resource conflicts which culminated in four member agencies withdrawing from the organization. This was a time of great crisis for the organization; it was not clear that the organization would survive. The organization's discomfort with Western management practices provided the President and the Board with a new vision for the organization - the belief that it ought I

to be possible to run itself in a fashion that was much more in accord with practices which were based on fundamental aboriginal beliefs and values. In 1980, this was a radical notion. A long period of acculturation had led aboriginal organizations to believe that they must act like those in the main- ! stream society. But the aboriginal culture lingered in many communities and individuals. Their cultural memory provided the leadership with a vision - a realization that the collectivist nature of aboriginal culture, for example, could lead potentially to a more effective organization in which the members would feel comfortable and accomplish their goals. There was also considerable debate within the organization about the nature of this change: there were those who felt that the organization should continue to evolve along the lines of mainstream organizations and leave aboriginal tradition and custom behind; another group felt that this was the way to go, that it was possible and indeed imperative to begin to operate in an aboriginal fashion. Within this group, there were also debates about the way in which the values should be interpreted within the organization.


The transformation started when organization F began formally to I

explore how it could begin to implement the new vision. The President believed that this could be accomplished through a formal statement of a c Code of Ethics - ironically an idea that he borrowed from a similar mainstream organization. The Code was intended to establish standards of interaction between member agencies and individuals. In particular, the code urged the adoption of aboriginal cultural values to aid this interaction


and spoke of the need to first and foremost show respect and honor all Native beliefs and customs. The code became a condition for membership, and was (and continues to be) prominently displayed throughout the organization. However, it was one thing to say that members should honor aboriginal values and customs, but another thing to explain what that meant, particularly in an organizational setting. .

The leadership for the needed changes was taken up by the Executive Director, a powerful ~ o h a w k ~ woman. She quickly realized she needed help from the traditional keepers of 'aboriginal wisdom-the Elders, men and women who were the spiritual leaders in traditional aboriginal society. These respected community leaders were asked to suggest how aboriginal values and customs could be translated into the workplace - in particular the nature and form of the programs administered by the member agencies. Besides the rather general guidance the Elders provided, their involvement was important legitimation for the process Executive Director and the Board had set in motion. But the organizational leadership - and in particular the Executive Director - had to translate the advice into concrete behaviors within the organization, thus moving into the transitional stage of the process. ~ ~

What did it mean, as the Executive Director put it, "to act like an Indian?" The question captures the approach she adopted - the emphasis was to be on behavior, behavior supported at all times by the potent symbols of aboriginal culture. A good example, rife with cultural symbolism, would be the monthly planning meeting held at headquarters and attended by all the staff. The meetings begin with the ritual burning of sweetgrass5 where everyone passes the smoke over themselves to symbolize the clearing of the mind in preparation for the meeting and unity with all present. The meeting is held at a large round table which represents the powerful symbol in aboriginal life of the circle at which every has an equal voice, a behavior based on the value of respect. Teams take on the work rather than individuals which blurs any formal hierarchical relationships between the staff and emphasizes a collectivist behavior based on other values such as caring and sharing (Chapman. McCaskill, & Newhouse, 1991).

Like the staff meetings. the Board meetings are opened with prayers and ritual by an invited Elder, and, in an act based on aboriginal myth, each agency places an eagle feather on a staff prominently displayed at

%e Mohawks are one of ihc sLx tribes or nations which make up the Iroquois Confederacy. The Conkderap is a 300 + year-old confederation of nations which is still very much alive. The Director was well schooled in the traditions of diplomacy and organizational practices of the Confederacy

%weetgrass is a sacred grass growing throughout Canada. Some Aboriginal people use it in ritual acts of purification. prlor to engaging in spiritual ceremonies.


the meeting table which symbolizes equal voice and unity. As a consequence of these constant reminders of aboriginal values, the Board has learned to make decisions by consensus, and the former battles over each agency's priorities have almost disappeared. This perhaps explains why, in this more stable state, the original formal corporate structure based on mainstream Canadian values can be kept in place since how the structure works now reflects aboriginal values. Retaining the structure also allows the organization to continue to appear legitimate to those organizations in the wider society who fund it.


For the 22-member agencies which delivered the services, not only did the programs have to be culturally appropriate, but also the manner in which they were delivered. The Board, which was made of representatives from each agency, ensured that the agencies were involved in the design, implementation, and delivery of the programs through visits by the headquarter's staff and discussion papers that came out of the visits. One major task for the staff at headquarters was to devise not only culturally appropriate content for programs, but the training necessary to deliver that content. Thus the training staff in headquarters in turn became teacher-trainers, passing on their experientially learned knowledge throughout the organization, so becoming agents for change themselves. Throughout this period, about one-quarter of the organization's budget was allocated for training - not only for those administering programs, but, because of turnover. for new Board members and agency staff.

Gradually. thc local agencies began to follow the example set in the headquarters by bccoming less hierarchical, more team oriented, and speaking openly about aboriginal values l i e honesty, caring and sharing, and what they mean for behaviors. These values are central to aboriginal tradition. Many organizational members displayed their cultural compe- tency as they talked about how they used the values as a foundation for many of their organizational practices. For these actors who, typically, have

Organizational Transformation 1001 I

been part of the organization for some time, there has clearly been a personal ;ransformation.

Management practices such as teamwork bear little relationship to the formal organizational chart which continues to define positions with specific responsibilities and authority. Yet within the formal structure things are very different. How the organization acts has redefined how organiza- t iona l members unders tand what the organizat ion is about . Decision-making, which had been one of the most divisive causes of conflict in the early days, has now evolved into a much more traditional process of consensus6 instead of the formal majority vote required in the organization's constitution. (Votes continue to be recorded, but now everyone is either for or against a motion.) In marked contrast to the behavior 12 years ago, individual agkncies are able to view the organization as a whole and to recognize that the needs of another agency can have precedence over their own.

Finally, for organization F, their ~ mission ~ has subtly changed over a decade. At the beginning, headquarters saw themselves leading the membership, lobbying the government for resources. As the organization has changed, the headquarter's staff now talk of themselves as servants of the membership helping them access the needed funding, becoming in the process a great deal less directive. The changes in this organization seem transformational as the members of the organization understand themselves and the organization through a new interpretive scheme whose source lies in traditional aboriginal culture.

ORGANIZATION A

For organization A, the early stage of the change process was similar to that of organization F; there were comparable reasons for change, and a new vision was inspired by Elders. However, the change process was re- jected by the membership after a Zyear trial of the new system.

&The decision-making rules of the Confederacy were based on consensus. These were contained in the Constltut~on of the Iroquois Confederacy, first translated into English at the turn of the twent~eth century by one of the author's great grandfathers. There were no votes at any time. The rules were quite clearly spelled out in the 300-year-old constitution: an issue or question wa\ placed before the 50 Chiefs by the Speaker, Atotarho. The Council was divided into group5 Discussion occurred within these two smaller groups who then reported back to the main Council. If no consensus emerged, the discussion was referred back. In the event of a deadlock, the Onondagas, the nation of the Atotarho, was empowered to decide. No discussions were to occur after sunset as darkness was felt to impede the mind. The area for council meetings had to be kept clean to symbolize the purity of mind that was necessary if a mnsensus was to be possible.



The situation became critical in 1987 when the President resigned and a special general assembly was called to elect a successor. After much discussion and with a great deal of trepidation, the membership decided that a complete change in the way in which the organization was structured and the manner in which it operated was necessary to solve the problems they were experiencing. They decided to run the organization in accordance with traditional aboriginal values and customs which they believed, having noted the changes underway in organization F, would permit them to build a more effective organization.

How this was to be done was not clear at that time, so a committee was struck, and two consultants, a respected Elder and his apprentice, were engaged to guide the discussions in the process of discovery. A year later, the committee recommended to the Annual &sembly a new constitution, a new organizational structure and a new decision-making process, all based on traditional values. The values were to be those contained in the medicine wheel (a four directions model) and on commonly expressed aboriginal values of caring, sharing, honesty, and strength. Consensus was to be the basis of a process of decision making and conflict resolution. Of all the recommendations, the one on structure was the most radical.

The organizational structure was to be based on the circle in the medicine wheel (Fig. l), a common teaching tool in the Ojibwa and Plains Cree traditions. The structure is not hierarchical, it is made up of concentric circles representing of the four directions, north, east, west, and south. Each direction symbolizes a set of responsibilities. For example, the east where the sun rises bringing new light each day represents new knowledge, and so members from the eastern part of Canada were assigned the responsibility for education, culture, and heritage in the organization. The four directions model was designed to foster cooperation and unity for breaking down traditional provincial barriers (Newhouse, 1991).



N o h Action

Admiaisuation Nation

War Reason Special Pr0jca.s

Clan

South Knowledge Training F ~ Y

East V.kion

Planning Individual

Fig. 1


The organization recognized it would be extremely difficult to operate with this new vision without some other changes which would support it. Accordingly, they altered the constitution in order to reflect the structural changes, and created a code of ethics describing the organization's values which was intended to serve as a guide for people's behavior. They also decided to hold workshops at each annual meeting which would focus on traditional teachings. Finally, they incorporated aboriginal prayers into their meetings to open and close them. These changes in the formal documents of the organization and their practices were intended to reinforce the organizational culture. However, in less than 2 years, the entire system was scrapped after the membership found the new structure too difficult to understand and work with. Despite having voted for the changes, many believed the process was dictated by Headquarters and never felt they "owned" the new structure and its underlying values.

DISCUSSION

Our interest in examining the process of change in these two organizations was stimulated by the sharp contrast in outcomes of the change efforts. In both cases, the organizations had attempted transformational change. In essence, both organizations attempted to change their under- standings of themselves, their interpretive schemes (Bartunek, 1984). This I

: to us provided a rare opportunity to observe the process of second-order change and to investigate the relationship between interpretative schemes, organizational action, and organizational structure.

The process of change at organization F can be described as initially a form of dictatorial transformation which evolved to a form of charismatic transformation as the leader gained knowledge and respect (Dun- !

phy & Stace, 1993). The process caused the members' understanding of themselves and the organization (the interpretive scheme) to be based on new values and beliefs and resulted in changed work activities. The process which brought about the new belief system used symbolism, cultural legitimation, language, and ritual all of which were aimed at creat- ing a new culture for the members. Very little attention was paid to the !

formal structure. A great deal of attention was paid to the behavior of individuals.

Organization A, on the other hand, had no one person who led the change. The change effort could be characterized as "charismatic trans-

~ ~

formation," based upon a collaborative, consultative style of change management. An executive committee, using the advice of elders and consultants, created an elaborate structure which implied new work processes based on a new world view. Culture was to be acquired through the use and understanding of the structure. The questions we asked ourselves were why were different approaches used, and why was only one successful?

i

AN ANALYSIS OF CHANGE

Our analysis of change will be holistic since the context, process, and content of the changes all affected their outcomes (Pettigrew, 1985). To answer the question we set ourselves, all three elements play a role and interact with each other. For example, the contexts in which both organizations conducted their change are similar if we look at the external or outer environment, but different if we examine their inner environment. These differing contexts influenced the process each chose to follow.


THE CONTEXT

The outer environment for each organization included a social, political, and legal sense of what organizations are arid how they should behave. As well, there was a long history of perceptions about aboriginal people. They were assumed to live in separate enclaves called reserves under the benevolent, but autocratic guidance of the federal Department of Indian Affairs and Northern Development. The Department required the reserves to be managed by means which the Department defined and im- posed, based on mainstream practices. For example, the local band councils behave like governments elsewhere in Canada as they administer the internal affairs of the reserve based on policies derived and required by the Department. Historically, many tribes had elaborate traditional forms of government, some so sophisticated that they were one source of the US. constitution (Grinde & Johansen, 1991). But this history was ignored and even suppressed. Even though the two organizations were based in urban centers, the members were largely from reserves and had substantial management and administrative experience in dealing with mainstream organizations.

The consequence of this history was an assumption that the organizational norms of the larger society would be used by all organizations in society. Institutional ambient environments can affect structures and behaviors based on society's rules and belief systems (Rowan, 1982). The structures. policies. and practices of these organizations must accord with social norms in order to gain legitimacy. This is particularly true of not- for-profit organizations like A and F where there are strict legal rules as to what constitutes not-for-profit. Laws of incorporation require an elabo- ration of the governance, legal rights, and responsibilities of the organization before they are granted a charter.

Moreover, A and F relied on government support to help them carry out their programs. All these factors translate into pressure to at least appear to behave exactly like all other not-for-profit organizations. The casual observer of F would find that its structures and decision making appear to be unchanged from what they were 10 years ago. However, due to quite different belief systems. the interpretation th; organization members puts on these functions is completely different from the interpretation the observer places on them. Thus. F has retained its legitimacy and indeed has increased its support from government agencies based on many positive evaluations of its programs. F offered a model for other aboriginal organizations on how to manage using aboriginal values.

For A, its environment not only included all the norms of the ambient society, but the example of F which had retained its legitimacy while corn-

1006 ~ - Newhouse and Chapman

pletely changing its belief system. The small world of Aboriginal organizations may be thought of as an important aspect of the ambient environment of A. Simply put, A knew the vision of an organization based on aboriginal values was possible. At the start of F's change process there were no mod- els, no assurance their objective was achievable. These factors significantly influenced the change strategies each organization followed.

THE PROCESS , :

The precipitating crisis which started off the process of change at F centered about decision-making particularly the allocation of resources. Some centers perceived that they were not favored by the President and his clique and the squabbling deeply offended those who recalled that traditional customs emphasized the good of the group rather than this "one center, one vote" approach which was mandated by articles of incorpora-

I tion. For those centers that remained after the crisis, the recollection that there was another way to work together became the basis of a new vision of an organization that "respected Indian customs" as the code of ethics put it. Thus, they experienced an "unfreezing" that is typical of organizations in crisis (Schein, 1980). But what did this mean in practical terms? In particular, how could aboriginal customs help run a modem twentieth

I

century organization? Aboriginal values were well known, but few in contemporary times have !

tried to base an organization's behavior on them (Kluckhohn & Strodtbeck, 1961; Anders 8: Anders, 1986; Chapman, McCasM1, & Newhouse, 1991). The situation called for leadership, but volunteer boards can only lay down very general directions; the day to day operations were in the hands of the Ex- ecutive Director. F was fortunate to have a powerful and charismatic Mohawk woman as Director who became the leader of the change process I

which had been sanctioned by the Board. There was no overall detailed blueprint for the change process for her to follow which precluded the kind of action that A followed. Change had necessarily to be introduced slowly and incrementally as the Director and a few core members of the headquarter's staff learned personally what it meant to manage an organization based on aborig~nal beliefs. This led naturally to an initial focus on value- . based behaviors. both in day to day management and in programs.

The Director was able to draw on two sources to guide her change process, aboriginal culture itself, and the important role played by Elders in that culture. All cultures use symbolism and ritual in their activities. As the examples given earlier show, round tables, sweetgrass ceremonies, and eagle staffs are constant symbolic reminders of "how we do things around


here and why." Language in F talked about "walking l i e an Indian," and "translating values into everyday good living."

The latter phrase, used frequently by the Director to describe what happened at F, captures very well the strategy she adopted. She was aided by consultation with Elders who were asked, for example, what F's programs for children and those in trouble with the law should contain. Their advice molded both the content of the programs and, more importantly, how they were camed out. Thus, the new programs which were presented to the 22 centers and their membership were backed by powerful cultural legitimation. These observations endorse the view expressed elsewhere that transformational change must involve all aspects of the expression of core beliefs in the culture (Whipp, Rosenfeld & Pettigrew, 1989).

For A there was a similar period of crisis throughout the organization based on the organizational members' dissatisfaction with the decision-making processes and overall management. A was a national organization as opposed to F's exclusively provincial mandate which made it a larger and more heterogeneous organization representing aboriginal peoples across Canada. The decision to adopt an aboriginal concept of management based on traditional values was made by a general assembly which entrusted an executive committee and consultants to devise an appropriate change for the organization. There was no obvious leader in this process, and it seemed the organization relied on their consultants to create the detailed vision without much consultation. The strategy they recommended was a new, aboriginally-based structure from which flowed the organizational activities such as decision-making and policy development.

Although the new system was agreed to in the annual assembly, there was little training provided in the use of the new structure. Moreover, all aboriginal peoples in Canada do not share, in detail, the same interpretations of beliefs. The absence of a strong leadership and training coupled with poor understanding about the new, complicated structure very quickly made the organization drop the attempted change within 2 years.

THE CONTENT

In the early stages of the change in organization F, the objective was to create a new interpretive scheme~by which the actors related to each other, first at Headquarters and then, by means of training, throughout the member agencies. Because the process was a gradual exploration for everyone in the organization, leaders included, the action focused entirely on incrementally developing personal behaviors which expressed the traditional aboriginal values. At the start, the leaders had no clear detailed vision of what and how the new ideology should be expressed. They were


aware that if they were to continue to be leaders, they were going to have to learn to lead by example both at work and at home. The conversion to a new interpretivist scheme has many of the elements of a religious conversion, especially when the interpretations are based on centuries of aboriginal belief systems. The Director eventually inspired first a core group who became trainers and change agents themselves and then others by what amounted to a personal conversion, a key part of the change process also noted by Westley (1990) in the very different circumstances of an auto plant. For a long time, Westernized members resisted the change, especially those who were Christian who feared, incorrectly as it turned out, the new belief system required a change in their present religious beliefs. Some left, others who could or would not embrace the new interpretive scheme or rather the actions which followed from that scheme were asked to leave. New members were required to be at least sympathetic to traditional culture before they were hired. Throughout all of this the organization appeared to sustain a formal structure and governing mechanism which appeared at odds with the interpretive scheme's emphasis on the group rather than the individual.

However, within the components of the organization, the emphasis o n group work and lack of hierarchy meant the formal organizational structure began to have little significance for the members. Projects were carried out by groups across hierarchical lines, meetings were not necessarily run by the Director. It is in this sense that F accords with Bartunek's (1984) observations that structural change is linked to actions following from interpretive schemes rather than directly to the changing interpretive scheme itself. This sense that structure, interpretive schemes and actions are modified by interaction with each other is also the basis of Allaire and Firsirotu's model. Some sociostructural changes were brought about by the actors, based on the culture - new working relationships, new personnel policies. But as F has reached the "refreeze" part of the change process, the formal structure remains unchanged. -~ ~~~~~~

Bartunek (1984) also reported a lengthy period where the religious order was not able to deal with structural change until an ongoing dialectic resulted in synthesis and a shared interpretive scheme. However, in the 1 end, a new structure could be created based on the shared interpretive scheme that replaced the former informal relationships. But unlike the or- . der, F felt constrained by the environment to leave the formal structure untouched which seems to contradict Bartunek and others who believe that when interpretive schemes change so must, eventually, the structure change. However, this apparent dissonance behveen F's structure and interpretive scheme is just that - apparent. The Director affirmed that there was some discomfort at one stage about continuing with the restraints of

~Otganizational Transformation 1009

the structure, but as members throughout the organization became confi- dent in their understanding and use of the changing interpretive scheme, i

the apparent constraints turned out not to matter. Selections to the Board from member agencies, and decision-making by the Board are governed by actions that are entirely consistent with the new interpretive scheme (e.g., consensus decisions) and therefore dramatically change how F's members interpret the structure. How the structure is interpreted thus depends on what organizational belief system it is viewed from - the Western or the Aboriginal. The external legitimators and the internal membership can both be satisfied with the formal structure therefore there is no need to change it. Ogbor (1990) called this process institutional reinterpretation and redefinition as Western management practices were re-defined by the members of a Nigerian organization to conform with traditional Nigerian practices.

The question arises as to whether A's strategy for change was doomed from the start or might have worked in other circumstances. The proposed new structure carried with it a new belief system and thus new ways to apportion tasks to members and their local organizations. Inevitably, the wholesale adoption of this second order change would create uncertainty and chaos as former interpretivist schemes were unlearned (Tushman & Romanelli, 1985). There was no possibility of stability in A, because evexy- thing changed all at once, old relationships and structures vanished and moreover, no matter how internally consistent the new structure was, there seemed to be no room for the membership to participate in the change process. The intent was that by doing certain things legitimated by the traditional origins of the structure, members would learn and begin to share in the values and assumptions of the new interpretive scheme. Although the scheme had been agreed to by the board which included members from every provincial association, the membership at large felt it was not consulted and therefore the process had been coercive rather than cooperative which undermined one important aboriginal value of respect for others. Thus, the membership actively began to oppose the scheme. The opposition was so strong. the organization reversed its decision within 2 years.

For the interpretive scheme to become shared over time, it assumed the values were self-evident and that they would automatically be shared by everyone because everyone was aboriginal thus disregarding the varied values held by aboriginal groups across the country. Conversion cannot hap- pen overnight, and gwen the nature of volunteer organizations, coercion is not a good long-term strategy for change. The member organizations needed a lot more time and training than the new system allowed, tasks should have been simpler, and the chance to let the structure develop from action seem to be the lesson A might have learned from F.


CONCLUSIONS

The process of transformational change can be described as complex and less than straightforward. It involves a complex interaction between interpretive schemes, organization actions, and organizational structures. Although the relationships developed in Allaire and Firsirotu's model may make it seem possible for the change leader to intervene at either the ac- torslaction component or the sociostructural component, it seems a fully explicated sociostructural system does not easily allow for an incremental exploration of the new interpretive scheme by the organization's actors and therefore is a less effective means of introducing change (Burke, Clark, & Koopman, 1984). The lesson from these cases is: interpretative schemes lead to organizational actions which then lead to new organizational structures (or reinterpretations of the same structure).

The process of organizational transformation then occurs as a result of repeated reinforcement between the interpretive scheme and action. What occurs therefore is not so much a dramatic shift in values but a gradual incremental emergence of a new understanding or sharing of the interpretative scheme which allows new structural forms to develop. The dialectic between the as-yet-unconverted and the change agents continues until a critical mass of organizational members shares the interpretative scheme or failing that the scheme is abandoned. The role of the leader within the organization then becomes critical to the whole process: he or she must perform two essential tasks: constantly reinforcing the interpretive scheme by word and example and constant use of the symbols which represent the new interpretative scheme, and supporting the dialectical process for a sufficient length of time to permit a critical mass of organizational members to share the new scheme through conversion.

REFERENCES ALLAIRE. Y.. 6: FIRSIROTU, hl. E. Theories of or~anizational culture. Omanirarion Studies, - -

1984. 5. 193-226. ANDERS. G.. 6: ANDERS. K. K. Incompatible goals in unconventional organizations: The

polit~cs of Alaska nutive corporations. Organization Studies, 1986, 7, 213-233. BARTUNEK. J. hi. Changing inlerpretive schemes and organizational restructuring: The ex-

arnplc of a rcligloub order. Administrative Sciences Quarter[y, 1984, 29, 355-372. BARTUNEK. J. M.. b LOUIS. hf . R. The interplay or organizational development and or-

gan~zational transformation. Research in Organizational Change and Development, 1988, 2, 97-13,

BURKE. U'. W.. CLARK. L. P.. & KOOPMAN, C. Improve your OD project's chances for success. Tralnrng and Development Journal, 1984, 38, 62-68.

CHAPMAN. I., McCASULL. D., & NEWHOUSE, D. Management in contemporary aboriginal organizations. The Canadian Journal of Native Studies, 1991, 11, 333-349.

DUNPHY, D.. 6: STACE. D. The strategic management of corporate change. Human Rela- ~ ~

lions. 1993. 46, 905-920.


GEERTZ, C Interpretation of cultums. New York: Basic Book, 1973. GRINDE, D., & JOHANSEN, B. ErPmplar of libeq, Native America and the evolution of

democracy. Los Angels: University of California Press, 199L HININGS, C R., & GREENWOOD, R The dynamics of strategic change. OxFord: Blackwell,

1985. JOHNSON, G. Strategic change and the management pmnss. Oxford: Blackwell, 1987. KLUCKHOHN. FLORENCE, & STRODTBECK. F. Variations in value orientation. New

York: Row, Peterson, 1961. LEVY, k Second order planned change. Organizational Dynamics, 1986, 4-20. MYERS, J. W., & SCOTT, J. R. O~anirntionalenvimnments: Ritual and rationality. California: -

Sage, 1983. NEWHOUSE, D. The managm in aboriginhl organizations: Searching for the balance, Belling-

ham, Washington: Organizational Behavior Teaching Society, 1991. OGBOR, 1. Organ&tiona/ change within a cdtwal mntert. Sweden: Lund University Press.

1990. PETTIGREW, A. M. Examining change in the long term context of culture arid politics. In

J. Penning and Associates (Eds), Organizational strategies and change. San Francisco: Jossey-Bass, 1985. -

RANSON, S., HININGS, B., & GREENWOOD, R The &ucturing of organizational structures. Administratir.e Science Ouarterlv. 1980, Z, 1-17.

ROWAN, B. Organizational stm&rc and inst&i&al environment. Adminirtrotive Science Quanerly, 1982, 27, 159-279.

SCHEIN. E. Orpanhtional ~svcholom. New Jenev: Prentice-Hall, 1980. - ~ - SCHEIN; E. Organizational klture =Id leadership: San ~rancism: ~ o s s e ~ - ~ a s s , 1985. WESTLEY, F. The eye of the needle: Cultural and personal transformation in a traditional

organization. Human Relations, 1990, 43, 273-293. WHIPP, R.. ROSENFELD, R., & PETTIGREW, k M. Culture and competitiveness: Evi-

dence from two mature U.K. industries. Journal of Management Studies, 1989,26,561-586.

BIOGRAPHICAL NOTES DAVID R. NEWHOUSE is an Associate Professor in the Department of Native Studies and the Administrative Studies Program at Trent University, Peterborough, Ontario. He is a member of the Onondaga Nation of the Iroquois Confederacy and has extensive experience in aboriginal organizations. His research interests is modernization within aboriginal communities and organizat~onal change. He is currently finishing a case study on the development of the local economy on the Si. Nations of the Grand River Indian Affairs and Northern Develop- ment.

IAN D. CHAPhlAN is a Professor in the Administrative Studies Program at Trent University, Peterborou~h. Ontario. He was Director of the Program 1980-88 and founding co-Director of the Nativc hlanagement and Economic Program 1986-90. His research interests include culture and management. especially in aboriginal organizations, and organizational change. He is prenntl) finishing a major study of change in the Federal Department o f Indian Affairs and Northern Dcvelopmcnt In Ottawa.

Human Reloriong Vol. 49, No. 7, I996


David R N e w h o ~ s e ~ . ~ and Ian D. Chapman1

This paper describes two Canadian aboriginal organizations which have attempted a smnd-order change, a transformation of their belief system, to make their organizations operate in a manner consistent with traditional aboriginal beliefs, values, and customs. One organization completed a successful change, the other organization's change pmcess was abandoned after 2 yean. The process of organizational change followed by the two organizations illustrates the link between interpretive schemes, organizational actions, and organizati6rGl structures. The process which focused primarily on the link between the aboriginally-based interpretive scheme and actions prwed more effective than the process that linked the structure and the interpretative scheme. For the successful organization, the process of organizational transformation was shown to bc incremental, iterative, multifaceted and required a lengthy period of time to complete. During the early stages of process of change, both old and new interpretative schemes wete present within the organization. The process of organizational change then became a dialectic involvine the old and the new. As a critical mars of oeoole beean to adoot the new inieroretative scheme. the dialectic focnr;d bn different w&s of .~~~~~ ' -~ ~ ~

imnlementine the new rohemc: Lcadea. critical to the oracess. had two es&tial -.r..-..... ~~- .... ..- -~ ~ ~~ , ~~~~~ ~ .~ . t a s k enabling or pcrmitring the prrscnration of new inlerprctative schemes and kceping the dialectic going for a sufficient period of time to cnsure the emergence of a interpretative scheme shared by 3 crilical III.LS uf urganizationnl ---- KEY WORDS: organuational change; organizational transformation; second order change

?

. 'i

INTRODUCTION

Our focus in this paper is on strategies for organizational transformation. The paper is based on the experience of two Canadian aborigi-

'Dcpattment of Nalivc Studies, Trcnt University, Pelurborough. Onlario K9J 7BR, CanaJa. quests for rcprinu should be ~ddresscd to David R. Nmhuuse, Department of Native Studies. Trent University, Petcrborough, Onlnrio K9J 'iB8. Canada.


na13 organizations which attempted, one successfully, the other unsuccess- fully, to transform their organizational interpretative scheme from one based on the typical Western values in mainstream organizations to those based on traditional aboriginal values more typically found in collectivist societies. These organizations provide examples of differing strategies which were used to bring about a major change in world view for their membership.

Organization change has come to be characterized by two major approaches: organization development and organization transformation (Bar- tunek & Louis, 1988). Organization transfomiation focuses on large-scale discontinuous change within an organization - second-order change which involves changes in core processes, mission and culture (Levy, 1986). In the cases we present, we talk primarily in terms of the change in culture since both organizations intended a transformation in the fundamental beliefs of its members. With the change in beliefs would come changes in attitudes, perceptions, and behavior (Schein, 1985). Recently, the term interpretive scheme has been used to describe the shared assumptions of the organizational members which are used to explain events and how to act (Bartunek, 1984). Ranson, Hinings and Greenwood (1980) suggest that interpretive schemes are expressed in provinces of meaning which represent the organization's values. The use of interpretive scheme to describe aspects of the culture accords with the an- thropological tradition represented by Geertz (1973).


During the period of change there will be two competing interpretive schemes which at any time might be at odds with the structures and policies in the organization and with the actions of the actors. Allaire and F i i r o t u (1984) propose a model of organizations in the period of change which contains three interrelated components: a sociostructural system, a cultural system, and the individual actors. The identification of a cultural system which is distinct from the structural system and the actors presents two

? h e Aboriginal people of Canada include Indian, Inuit (formerly Eskimo) and Mciis. There arc now approximately 1.0 million Aboriginal people in Canada and approximately 6000 Aboriginal organizations, half in the private rector, half in the public sector. Most are small ( 4 0 employees).

possible strategies for change and resonates with those discussed by Bar- tunek (1984) based on an identification of a developing interpretive scheme and its relationship with action and structure. In either case, transforma- : tional change is directed towards introducing a new interpretive scheme. The interpretive scheme can develop through the actions of the actors, which may lead to an appropriate structural system, or it can be incorporated in a new structural scheme which requires the actors to change their actions. As Hinings & Greenwood (1988) show, the relationship between values as reflected in interpretive schemes and structure is problematic. The two cases present an opportunity to clarify this relationship by explor- ing the strategies for change each organization adopted and their outcomes.

RESEARCH METHOD

We conducted our research during the summer and fall of 1991. We conducted structured interviews with key board members, executives and staff of each organization over a 3-month period. These interviews ranged from one to three hours in length and were focused on gaining an understanding of the strategy for change, the various factors which influenced it and individual understanding of the process of change and its meanings. As well, we were given access to minutes of meetings, reports and policy documents which provided an understanding of the organizations during their change period.

THE ORGANIZATIONS

Founded in the mid-seventies, both organizations are in the not-for- profit sector and have large, geographically diverse and politically astute memberships. The organizations operate in an urban environment and are made up of a small headquarters unit which serves the member agencies by providing, among other things, political representation or lobbying on behalf of the agencies and their membership. Initially, in their formal structure, they were simiiar to non-native organizations in the not-for-profit sector. A Board of Directors was elected by the member agencies and, in

i turn, it elected a President. The Board established goals and policies which were carried out by an Executive Director supported by a headquarter staff of less than 15 people. By adopting these mainstream structures and practices, the organizations were able to become legally incorporated entities which legitimated them in the eyes of the governments from which they sought support @eyer & Scott, 1983).

The two aboriginal organizations (hereafter called A and F) were cho- sen because, although vely similar in their missions, their strategies for

998 Newhwse and Chapman


ORGANIZATION F

The new governing structure described above was put in place in 1978. Decisions were made by votes of the Board under the leadership of a President described by Board members of the time as a '%benevolent die tator!' At that time, formal governing structures were relatively new for aboriginal organizations; for 2 years, the Board was tom by personality and resource conflicts which culminated in four member agencies withdrawing from the organization. This was a time of great crisis for the organization; it was not clear that the organization would sunive. The organization's discomfort with Western management practices provided the President and the Board with a new vision for the organization - the belief that it ought to be possible to run itself in a fashion that was much more in accord with practices which were based on fundamental aboriginal beliefs and values. In 1980, this was a radical notion. A long period of acculturation had led aboriginal organizations to believe that they must act l i e those in the mainstream society. But the aboriginal culture lingered in many communities and individuals. Their cultural memory provided the leadership with a vision - a realization that the collectivist nature of aboriginal culture, for example, could lead potentially to a more effective organization in which the members would feel comfortable and accomplish their goals. There was also considerable debate within the organization about the nature of this change: there were those who felt that the organization should continue to evolve along the lines of mainstream organizations and leave aboriginal tradition and custom behind; another group felt that this was the way to go, that it was possible and indeed imperative to begin to operate in an aboriginal fashion. Within this group, there were also debates about the way in which the values should be interpreted within the organization.


The transformation started when organization F began formally to explore how it could begin to implement the new vision. The President believed that this could be accomplished through a formal statement of a Code of Ethics - ironically an idea that he borrowed from a similar mainstream organization. The Code was intended to establish standards of interaction between member agencies and individuals. In particular, the code urged the adoption of aboriginal cultural values to aid this interaction


and spoke of the need to f i t and foremost show respect and honor all Native beliefs and customs. The code became a condition for membership, and was (and continues to be) prominently displayed throughout the or-

: ganization. However, it was one thing to say that members should honor aboriginal values and customs, but another thing to explain what that

% meant, particularly in an organizational setting.

The leadership for the needed changes was taken up by the Executive Director, a powerful ~ o h a w k ~ woman. She quickly realized she needed help from the traditional keepers of aboriginal wisdom-the Elders, men and women who were the spiritual leaders in traditional aboriginal society. These respected community leaders were asked to suggest how aboriginal values and customs could be translated into the workplace - in particular the nature and form of the programs administered by the member agencies. Besides the rather general guidance the Elders provided, their involvement was important legitimation for the process Executive-Director and the Board had set in motion. But the organizational leadership - and in particular the Executive Director - had to translate the advice into concrete behaviors within the organization, thus moving into the transitional stage of the process.

What did it mean, as the Executive Director put it, "to act like an Indian?" The question captures the approach she adopted - the emphasis was to be on behavior, behavior supported at all times by the potent symbols of aboriginal culture. A good example, rife with cultural symbolism, would be the monthly planning meeting held at headquarters and attended by all the staff. The meetings begin with the ritual burning of sweetgrassS where everyone passes the smoke over themselves to symbolize the cIearing of the mind in preparation for the meeting and unity with aIl present. The meeting is held at a large round table which represents the powerful symbol in aboriginal life of the circle at which every has an equal voice, a behavior based on the value of respect. Teams take on the work rather than individuals which blurs any formal hierarchical relationships between the staff and emphasizes a collectivist behavior based on other values such as caring and sharing (Chapman, McCasM1, & Newhouse, 1991).

L i e the staff meetings, the Board meetings are opened with prayers and ritual by an invited Elder, and, in an act based on aboriginal myth, each agency places an eagle feather on a staff prominently displayed at

he Mohawks are one of the six tribes or nations which make up the Iroquois Confederacy. The Confederacy is a 300 + year-old canfederation of nations which is still very much alive. The Director was well schooled in the traditions of diplomacy and orpnizational ~racticen . of the Confederacy.

S~weetgrass is a sacred grass growing throughout Canada. Some Aboriginal people use it in ritual acts of purification, prior to engaging in spiritual ceremonies.


the meeting table which symbolizes equal voice and unity. As a consequence of these constant reminders of aboriginal values, the Board has learned to make decisions by consensus, and the former battles wer each agency's priorities have almost disappeared. This perhaps explains why, in this more stable state, the original formal corporate structure based on mainstream Canadian values can be kept in place since how the structure works now reflects aboriginal values. Retaining the structure also allows the organization to continue to appear legitimate to those organizations in the wider society who fund it.


For the 22-member agencies which delivered the services, not only did the programs have to be culturally appropriate, but also the manner in which they were delivered. The Board, which was made of representatives from each agency, ensured that the agencies were involved in the design, implementation, and delivery of the programs through visits by the headquarter's staff and discussion papers that came out of the visits. One major task for the staff at headquarters was to devise not only culturally appropriate content for programs, but the training necessary to deliver that content. Thus the training staff in headquarters in turn became teacher-trainers, passing on their experientially learned knowledge throughout the organization, so becoming agents for change themselves. Throughout this period, about one-quarter of the organization's budget was allocated for training - not only for those administering programs, but, because of turnover, for new Board members and agency staff.

Gradually, the local agencies began to follow the example set in the headquarters by becoming less hierarchical, more team oriented, and speaking openly about aboriginal values like honesty, caring and sharing, and what they mean for behaviors. These values are central to aboriginal tradition. Many organizational members displayed their cultural compe tency as they talked about how they used the values as a foundation for many of their organizational practices: For these actors who, typically, have

Organizational TransIomatioa 1001

been part of the organization for some time, there has clearly been a personal transformation.

Management practices such as teamwork bear little relationship to . the formal organizational chart which continues to define positions with specific responsibilities and authority. Yet within the formal structure things are very dierent. How the organization acts has redefined how organiza- t ional members understand what the organization is about. Decision-making, which had been one of the most divisive causes of conflict in the early days, has now evolved into a much more traditional process of consensus6 instead of the formal majority vote required in the organization's constitution. (Votes continue to be recorded, but now everyone is either for or against a motion.) In marked contrast to the behavior 12 years ago, individual agencies are able to view the organization as a whole and to recognize that the needs of another agency can have precedence over their own.

Finally, for organization F, their mission has subtly changed over a decade. At the beginning, headquarters saw themselves leading the membership, lobbying the government for resources. As the organization has changed, the headquarter's staff now talk of themselves as servants of the membership helping them access the needed funding, becoming in the process a great deal less directive. The changes in this organization seem transformational as the members of the organization understand themselves and the organization through a new interpretive scheme whose source lies in traditional aboriginal culture.

ORGANIZATION A

For organization A, the early stage of the change process was similar to that of organization F; there were comparable reasons for change, and a new vision was inspired by Elders. However, the change process was re- jected by the membership after a Zyear trial of the new system.

&l'he decision-making rules of the Confederacy were based on consensus. These were v contained in the Constitution of the Iroquois Confederacy, first translated into English at

the turn of thcmentieth century by one of the author's great grandfathers. There were no voter at any time. The rules were quite clearly spellcd out in the 300-year-old constitution: an issue or question was placed before the 50 Chiefs by the Speaker, Atotarho. The Council was divided into groups. Discussion occurred within these two smaller groups who then reported back to the main Council. If no consensus emerged, the discussion was referred back. In the event of a deadlock, the Onondagas, the nation of the Atotarho, was empowered to decide. No discussions were to occur after sunset as darkness was felt to impede the mind. The area for council meetings had to be kept clean to symbolize the purity of mind that was necessary if a consensus was to be possible.



The situation became critical in 1987 when the President resigned and a special general assembly was called to elect a successor. After much discussion and with a great deal of trepidation, the membership decided that a complete change in the way in which the organization was StructWed and the manner in which it operated was necessary to solve the problems they were experiencing. They decided to run the organization in accordance with traditional aboriginal values and customs which they believed, having noted the changes underway in organization F, would permit them to build a more effective organization.

How this was to be done was not clear at that time, so a committee was struck, and two consultants, a respected Elder and his apprentice, were engaged to guide the discussions in the process of discovely. A year later, the committee recommended to the Annual Assembly a new constitution, a new organizational structure and a new decision-making process, all based on traditional values. The values were to be those contained in the medicine wheel (a four directions model) and on commonly expressed aboriginal values of caring, sharing, honesty, and strength. Consensus was to be the basis of a process of decision making and conflict resolution. Of all the recommendations, the one on structure was the most radical.

The organizational structure was to be based on the circle in the medicine wheel (Fig. I), a common teaching tool in the Ojibwa and Plains Cree traditions. The structure is not hierarchical, it is made up of concentric circles representing of the four directions, north, east, west, and south. Each direction symbolizes a set of responsibilities. For example, the east where the sun rises bringing new light each day represents new knowledge, and so members from the eastern part of Canada were assigned the responsibility for education, culture, and heritage in the organization. The four directions model was designed to foster cooperation and unity for breaking down traditional provincial barriers (Newhouse, 1991).


Organizational Transfarmation

N o h Action

Admioistration Nation

South Knowlcdgc Tnhblg Family

East vim

Planning Individual


The organization recognized it would be extremely difficult to operate with this new vision without some other changes which would support it. Accordingly, they altered the constitution in order to reflect the structural changes, and created a code of ethics describing the organization's values which was intended to serve as a guide for people's behavior. They also decided to hold workshops at each annual meeting which would focus on . traditional teachings. Finally, they incorporated aboriginal prayers into their meetings to open and close them. These changes in the formal documents of the organization and their practices were intended to reinforce the organizational culture. However, in less than 2 years, the entire system was scrapped after the membership found the new structure too difficult to understand and work with. Despite having voted f o i the changes, many believed the process was dictated by Headquarters and never felt they "owned" the new structure and its underlying values.

1004 Nmhause and Chapman

DISCUSSION

Our interest in examining the process of change in these two organizations was stimulated by the sharp contrast in outcomes of the change efforts. In both cases, the organizations had attempted transformational change. In essence, both organizations attempted to change their under- standings of themselves, their interpretive schemes (Bartunek, 1984). This to us provided a rare opportunity to observe the process of second-order change and to investigate the relationship between interpretative schemes, organizational action, and organizational structure.

The process of change at organization F can be described as initially a form of dictatorial transformation which evolved to a form of charismatic transformation~as the leader gained knowledge and respect (Dun- phy & Stace, 1993). The process caused the members' understanding of themselves and the organization (the interpretive scheme) to be based on new values and beliefs and resulted in changed work activities. The process which brought about the new belief &stem used symbolism, cultural legitimation, language, and ritual all of which were aimed at creat- ing a new culture for the members. Very little attention was paid to the formal structure. A great deal of attention was paid to the behavior of individuals.

Organization A, on the other hand, had no one person who led the change. The change effort could be characterized as "charismatic transformation," based upon a collaborative, consultative style of change management. An executive committee, using the advice of elders and consultants, created an elaborate structure which implied new work proo esses based on a new world view. Culture was to he acquired through the use and understanding of the structure. The questions we asked ourselves were why were different approaches used, and why was only one successful?

AN ANALYSIS OF CHANGE

Our analysis of change will be holistic since the context, process, and content of the changes all affected their outcomes (Pettigrew, 1985). To answer the question we set ourselves, all three elements play a role and interact with each other. For example, the contexts in which both organizations conducted their change are similar if we look at the external or outer environment, but different if we examine their inner environment. These differing contexts influenced the process each chose to follow.

Organizational Translormation

THE CONTEXT

The outer environment for each organization included a social, po- ! '. litical, and legal sense of what organizations are and how they should

behave. As well, there was a long history of perceptions about aboriginal people. They were assumed to live in separate enclaves called reserves un- I der the benevolent, but autocratic guidance of the federal Department of Indian Affairs and Northern Development. The Department required the reserves to be managed by means which the Department defined and im- posed, based on mainstream practices. For example, the local band councils

I

behave l i e governments elsewhere in Canada as they administer the internal affairs of the reserve based on policies derived and required by the I Department. Historically, many tribes had elaborate traditional forms of government, some so sophisticated that they were one source of the US. constitution (Grinde & Johansen, 1991). But this history was ignored and even suppressed. Even though the two organizations were based in urban centers, the members were largely from reserves and had substantial management and administrative experience in dealing with mainstream organizations.

The conseauence of this historv was an assum~tion that the orcan- - izational norms of the larger society would be used by all organizations in I society. Institutional ambient environments can affect structures and behaviors based on society's rules and belief systems (Rowan, 1982). The structures, policies, and practices of these organizations must accord with social norms in order to gain legitimacy. This is particularly true of not-

I

for-profit organizations like A and F where there are strict legal rules as to what constitutes not-for-profit. Laws of incorporation require an elabo- I

ration of the governance, legal rights, and responsibilities of the organization before they are granted a charter.

Moreover, A and F relied on government support to help them cany out their programs. All these factors translate into pressure to at least appear to behave exactly like all other not-for-profit organizations. The casual observer of F would find that its structures and decision making appear tn be unchanged from what they were 10 years ago. However, due to quite . different belief systems, the interpretation the organization members puts - on these functions is completely different from the interpretation the observer places on them. Thus, F has retained its legitimacy and indeed has increased its support from government agencies based on many positive evaluations of its programs. F offered a model for other aboriginal organizations on how to manage using aboriginal values.

For A, its environment not only included all the norms of the ambient society, but the example of F which had retained its legitimacy while com-

1006 Newhouse and Chapman I

pletely changing its belief system. The small world of Aboriginal organiza- I tions may be thought of as an important aspect of the ambient environment of A. Simply put, A knew the vision of an organization based on aboriginal values was possible. At the start of F's change process there were no mod- .' I ek, no assurance their objective was achievable. These factors significantly influenced the change strategies each organization followed. 5 1

THE PROCESS I

The precipitating crisis which started off the process of change at F -

centered about decision-makinp. particularly the allocation of resources. I

Some centers perceived that they were not-favored by the President and his clique and the squabbling deeply offended those who recalled that traditional customs emphasized the good of the group rather than this "one center, one vote" approach which was mandated by articles of incorporation. For dose centers that remained after the crisis, the recollection that there was another way to work together became the basis of a new vision of an organization that "respected Indian customs" as the code of ethics out it. Thus. thev ewerienced an "unfreezinf that is hvical of organizations in crisis (&he&, 1980). But what did this mean i i practical terms? I

In particular, how could aboriginal customs help run a modern twentieth century organization? I

Aboriginal values were well known, but few in contemporay times have tried to base an organization's behavior on them (Kluckhohn & Strodtbeck, 1961; Anders & Anders, 1986; Chapman, McCaskill, & Newhouse, 1991). The situation called for leadership, but volunteer boards can only lay down very general directions; the day to day operations were in the hands of the Ex- ecutive Director. F was fortunate to have a powerful and charismatic Mohawk woman as Director who became the leader of the change process which had been sanctioned by the Board. There was no overall detailed blueprint for the change process for her to follow which precluded the kind of action that A followed. Change had necessarily to be introduced slowly and incrementally as the Director and a few core members of the headquarter's staff learned personally what it meant to manage an organization v based on aboriginal beliefs. This led naturally to an initial focus on value- . based behaviors, both in day to day management and in programs.

The Director was able to draw on two sources to guide her change process, aboriginal culture itself, and the important role played by Elders in that culture. AU cultures use symbolism and ritual in their activities. As the examples given earlier show, round tables, sweetgrass ceremonies, and eagle staffs are constant symbolic reminders of "how we do things around

here and why." Language in F talked about "walking like an Indian," and "translating values into everyday good living."

The latter phrase, used frequently by the Director to describe what : , happened at F, captures very well the strategy she adopted. She was aided

by consultation with Elders who were asked, for example, what F's pro- . grams for children and those in trouble with the law should contain. Their advice molded both the content of the programs and, more importantly, how they were carried out. Thus, the new programs which were presented to the 22 centers and their membership were backed by powerful cultural legitimation. These obselvations endorse the view expressed elsewhere that transformational change must involve all aspects of the expression of core beliefs in the culture (Whipp, Rosenfeld & Pettigrew, 1989).

For A there was asimilar period of crisis throughout the organization based on the organizational members' dissatisfaction with the decision-making processes and overall management. A was a national organization as opposed to F s exclusively provincial mandate which made it a larger and more heterogeneous organization representing aboriginal peoples across Canada. The decision to adopt an aboriginal concept of management based on traditional values was made by a general assembly which entrusted an executive committee and consultants to devise an appropriate change for the organization. There was no obvious leader in this process, and it seemed the organization relied on their consultants to create the detailed vision without much consultation. The strategy they recommended was a new, aboriginally-based structure from which flowed the organizational activities such as decision-making and policy development.

Although the new system was agreed to in the annual assembly, there was little training provided in the use of the new structure. Moreover, all aboriginal peoples in Canada do not share, in detail, the same interpretations of beliefs. The absence of a strong leadership and training coupled with poor understandig about the new, complicated structure very quickly made the organization drop the attempted change withii 2 years.

THE CONTENT

.. In the early stagesof the change in organization F, the objective was to create a new interpretive scheme by which the actors related to each other, fmt at Headquarters and then, by means of training, throughout the member agencies. Because the process was a gradual exploration for everyone in the organization, leaders included, the action focused entirely on incrementally developing personal behaviors which expressed the traditional aboriginal valuas. At the start, the leaders had no clear detailed vision of what and how the new ideology should be expressed. They were


aware that if they were to continue to be leaders, they were going to have to learn to lead by example both at work and at home. The conversion to a new interpretivist scheme has many of the elements of a religious conversion, especially when the interpretations are based on centuries of aboriginal belief systems. The Director eventually inspired fmt a core group who became trainers and change agents themselves and then others by what amounted to a personal conversion, a key part of the change process also noted by Westley (1990) in the very different circumstances of an auto plant. For a long time, Westernized members resisted the change, especially those who were Christian who feared, incorrectly as it turned out, the new belief system required a change in their present religious beliefs. Some left, others who could or would not embrace the new interpretive scheme or rather the actions which foUowed from that scheme were asked to leave. New members were required to be at least sympathetic to traditional culture before they were hired. Throughout all of this the organization appeared to sustain a formal structure and governing mechanism which appeared at odds with the interpretive scheme's emphasis on the group rather than the individual.

However, within the components of the organization, the emphasis on group work and lack of hierarchy meant the formal organizational structure began to have little significance for the members. Projects were carried out by groups across hierarchical lines, meetings were not necessarily run by the Director. It is in this sense that F accords with Bartunek's (1984) observations that structural change is linked to actions following from interpretive schemes rather than directly to the changing interpretive scheme itself. This sense that structure, interpretive schemes and actions are modified by interaction with each other is also the basis of Allaire and Firsirotu's model. Some sociostructural changes were brought about by the actors, based on the culture - new working relationships, new personnel policies. But as F has reached the "refreeze" part of the change process, the formal structure remains unchanged.

Bartunek (1984) also reported a lengthy period where the religious order was not able to deal with structural change until an ongoing dialectic resulted in synthesis and a shared interpretive scheme. However, in the end, a new structure could be created based on the shared interpretive scheme that replaced the former informal relationships. But unlike the order, F felt constrained by the environment to leave the formal structure untouched which seems to contradict Bartunek and others who believe that when interpretive schemes change so must, eventually, the structure change. However, this apparent dissonance between F's structure and interpretive scheme is just that - apparent. The Director affirmed that there was some discomfort at one stage about continuing with the restraints of


the structure, but as members throughout the organization became confi- dent in their understanding and use of the changing interpretive scheme, the apparent constraints turned out not to matter. Selections to the Board

E from member agencies, and decision-making by the Board are governed by actions that are entirely consistent with the new interpretive scheme . (e.g., consensus decisions) and therefore dramatically change how F's members interpret the structure. How the structure is interpreted thus depends on what organizational belief system it is viewed from - the Western or the AborieinaL The external legitimators and the internal membership can both be satisfied with the formal structure therefore there is no n&d to I change it. Ogbor (1990) called this process institutional reinterpretation and redefinition as Western management practices were re-defined by the members of a Nigerian organization to conform with traditional Nigerian

I

practices. The question arises as to whether A's strategy for change was doomed I

from the start or might have worked in other circumstances. The proposed new structure canied with it a new belief system and thus new ways to apportion tasks to members and their local organizations. Inevitably, the I

wholesale adoption of this second order change would create uncertainty and chaos as former interpretivist schemes were unlearned (Tushman & Romanelli, 1985). There was no possibility of stability in A, because every- thing changed all at once, old relationships and structures vanished and moreover, no matter how internally consistent the new structure was, there seemed to he no room for the membership to participate in the change process. The intent was that by doing certain things legitimated by the traditional origins of the structure, members would learn and begin to share in the values and assumptions of the new interpretive scheme. Although the scheme had been agreed to by the board which included members from every provincial association, the membership at large felt it was not consulted and therefore the process had been coercive rather than cooperative which undermined one important aboriginal value of respect for others. Thus, the membership actively began to oppose the scheme. The opposition

-

- was so strong, the organization reversed its decision within 2 years. -

For the interpretive scheme to become shared over time, it assumed . the values were self-evident and that they would automatically be shared by everyone because everyone was aboriginal thus disregarding the varied values held by aboriginal groups across the country. Conversion cannot hap- pen overnight, and given the nature of volunteer organizations, coercion is not a good long-term strategy for change. The member organizations needed a lot more time and training than the new system allowed, tasks should have been simpler, and the chance to let the structure develop from action seem to be the lesson A might have learned from F.

1010 Nwbonse and Chapman

CONCLUSIONS

The process of transformational change can be described as complex and less than straightforward. It involves a complex interaction between interpretive schemes, organization actions, and organizational structures. Although the relationships developed in Maire and Fisirotu's model may make it seem possible for the change leader to intervene at either the a o torslaction component or the sociostructural component, it seems a fully explicated sociostructural system does not easily allow for an incremental exploration of the new interpretive scheme by the organization's actors and therefore is a less effective means of introducing change (Burke, Clark, & Koopman, 1984). The Lesson £tom these cases is: interpretative schemes lead to organizational actions which then lead to new organizational struo tures (or reinterpretations of the same structure).

The process of organizational transformation then occurs as a result of repeated reinforcement between the interpretive scheme and action. What occurs therefore is not so much a dramatic shift in values but a gradual incremental emergence of a new understanding or sharing of the interpretative scheme which allows new structural forms to develop. The dialectic between the as-yet-unconverted and the change agents continues until a critical mass of organizational members shares the interpretative scheme or failing that the scheme is abandoned. The role of the leader withii the organization then becomes critical to the whole process: he or she must perform two essential tasks: constantly reinforcing the interpretive scheme by word and example and constant use of the symbols which represent the new interpretatjve scheme, and supporting the dialectical process for a sufficient length of time to permit a critical mass of organizational members to share the new scheme through conversion.

REFERENCES ALWRE, Y., & FIRSIROTU, M. E. Theories of organizational culture. Organization Studies,

1984.5, 193-226. ANDERS, G., & ANDERS, K K Inmmpatible goals in unmnventional organizations: The

politics of Alaska native mrporations. Organizntion Srudies, 1986, 7, 213-233. BARTLTNEK, 1. M. Changing interpretive schemes and organizational restructuring: The cx-

ample of a religious order. Adminimfive Sciences Quandy. 1984, 29, 355-372 BARTUNEK, J. M., & LOUIS, M. R Thc interplay or organizational development and or-

mirational transformation. Resea~h in Organizational Change and Development, 1988, i,97-134.

BURKE, W. W., CIARK, L P., & KOOPMAN, C Improve your OD project's chances for success. Tmini* md Development Jomal , 1984, 38, 62-68.

CHAPMAN, I., McCASKILI, D., & NEWHOUSE, D. Management in contemporary ahoriginal organizations. Tlte Canadion Joumal of Native Studies, 1991, 11, 333-349.

DUNPHY. D.. & STACE D. The strateeic manaeement of mmorate chanee. Humm Rela-

Organizational Transformation 1011 I

GEERTZ, C Interpretation of cultures. New York: Basic Books, 1973. GRINDE, D., & JOHANSEN, B. Eremplar of liberty, Native America and the evolution of I

democray. Lor Angels: University of California Press, 1991. HININGS, C R., & GREENWOOD, R The dynamics of strategic change. Oxford: Blackwell,

1985. 3 JOHNSON, G. Strategic change and the monngementprocess. Oxford: Blackwell, 1987. - I

KLUCKHOHN, FLORENCE, & STRODTBECK, F. Variations in value orientation. New York Row, Peterson, 1961. - I ." -

LEVY, A. Scmnd order planned change. OrganIiational Oynamicr, 1986, 4-20. MYERS, 1. W., &SCOW, 1. R Orgrmirationol m'ronmotls: Ritual and rationality. California:

Sage, 1983. NEWHOUSE. D. 73e rnanogrr in abo~~p'nal oawnhtions: Searching for the buloncc, Belling

ham, Washington: Organization31 Behavior Tcachiog Society, 1991. OGBOR, I. Organirotiond change hithin o cul!um/ contat. Swden: Lund Univcniry Pms,

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PETCIGREW, A. M. Examining change in the long term context of culture and politics. In 1. Penning and Associates (Eds), Opnizational sfrategis and change. San Francisco: Jossey-Bais, 1985.

RANSON, S., HININGS, B., & GREENWOOD, R The structuring of organizational structures. Administrative Science Quarreriy, 1980, 25, 1-17. ~ ~

ROWAN, B. Organizational structure and institutional environment. Adminisfrafive Science Quaflee, 1982, 22 259-279.

SCHEIN, E. Orgonizationalp~hology. New Jersey: Prentice-Hall, 1980. SCHEIN, E. Ownizntional culture and leadership. San Francisco: Jossey-Bass, 1985. WESTIEY, F. The eye of the needle: Cultural and personal transformation in a traditional

organization. Human Relations, 1990, 43, 273-293. WHIF'P, R., ROSENFEU), R., & P-GREW, A. M. Culture and competitiveness: Evi-

dence from two mature U.K industries. Joumal ofMancgement Shrdies, 1989,26,561-586.

BIOGRAPHICAL NOTES ~

DAVID R NEWHOUSE is an Associate Professor in the Department of Native Studies and ~ ~~~

I the Administrative Studies Program at Trent University, Peterborough, Ontario. He is a mem-

~ ~~~ ~

ber of the Onondaga Nation of the Iroquois Confederacy and has extensive experience in aboriginal organizations. His research interests is modernization within aboriginal communities and organizational change. He is currently ftnishing a case study on the development of the local economy on the Si Nations of the Grand River Indian Affain and Northern Develop- I

ment.

IAN D. CHAPMAN is a Professor in the Administrative Studies Program at Trent University, I Peterborough, Ontario. He was Director of the Program 1980-88 and founding uo-Director of the Native Management and Emnomic Program 1986-90. His research interests include . culture and management, especially in aboriginal organizations, and organizational change. He is presently fiDishing a major study of change in the Federal Department of Indian A&lin .- and Northern Development in Ottawa

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