Welcome to “How to Measure Culture”

The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.

Welcome to “How to Measure Culture”

Clarke

Debra Levantrosser

Michigan Lean Consortium

November 15, 2017Mid Atlantic Lean Conference, Baltimore

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•What are Culture and Climate?•Why Care About Measuring Them?•How Can We Measure Culture?• Denison Model• CLS 360• The Circumplex

•Examples

Topics For Today

The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.The Circumplex & all models copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty. Human Synergistics Center for Applied Research

The Culture and Climate Link

ClimateThe apparent

organization

CultureThe “below-the-surface”

organization


What Is Organizational Culture?

Values

Behaving

Perceiving

Thinking

❖ A pattern of basic assumptions, invented, discovered or developed … that has worked well enough to be considered valid and, therefore is taught to new members as the correct way to perceive, think, and feel.

E.H. Schein

Sloan School of Management, MIT

It’s the personality of an organization!!


• What it takes to “fit in” around here.

• How decisions get made when you can’t be there.

• The way we do things around here.

• How people will act under pressure.

• The glue that holds the organization together.

The basic assumptions, shared values and

beliefs that guide the way organizational

members behave toward each other and

approach their work.

Organizational Culture


“In fact, there is a possibility -

underemphasized in leadership research -

that the only thing of real importance

leaders do is to create and manage culture

and that the unique talent of leaders is

their ability to work with cultures.”

Is It Important?

Edgar Schein, PhD, MIT


Why Care About Measuring

Culture?


“I came to see, in my time at IBM, that

culture isn’t just one aspect of the game

– it is the game.”Lou Gerstner, Chairman and CEO of IBM

Is It Important?


Measure

Everything

That

Results

In

Customer

Satisfaction

Metrics

The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.http://history.nasa.gov/rogersrep/crew.jpg

http://story.news.yahoo.com/news?tmpl=story&u=/030826/168/52udh.html

http://www.open2.net/forensic_engineering/methods/advances/advances_12.htm

O-Ring

Challenger - 1986


-from Yahoo! Photos (AFP/NASA/File)

http://story.news.yahoo.com/news?tmpl=story&u=/030827/241/53ay8.html

http://www.cnn.com/resources/video.almanac/1986/

Shuttle report blames NASA Culture

Columbia - 2003


The organizational causes of this accident are rooted in the

Space Shuttle Program’s history and culture. Cultural

traits and organizational practices detrimental to safety

and reliability were allowed to develop , including:

reliance on past success as a substitute for sound

engineering practices (such as testing to understand why

systems were not performing in accordance with

requirements/specifications); organizational barriers

which prevented effective communication of critical

safety information and stifled professional differences

of opinion ; lack of integrated management across

program elements; and the evolution of an informal chain of

command and decision-making processes that operated

outside the organization’s rules.

NASA’s organizational culture and structure had as much to do

with this accident as the External Tank foam.


Typical Measures of a Lean Culture

• # of kaizen events

• # of employee suggestions

• $ saved

• Reduction in lead time

• # of defects

• Others?

NO! We need to know the HOW, not just the WHAT! The

HOW is WAY more important in a lean culture.

DO THESE REALLY TELL US

WHAT WE WANT TO KNOW??


Other Ways of Measuring

Culture


Revenue Growth

Growth Staff

Increase Stock Price

Increase Net ProfitSource: Kotter J. P. and Heskett J.L. (1992)

682%

282%

901%

756%

166%

36%

74%

1%

ADAPTIVE LEAN CULTURE

(Constructive)

UNADAPTIVE CULTURE

(Defensive)

Culture can have a significant impact on a

firm’s long-term economic performance:


The Leadership Circle


Denison Consulting


CLS 360

Dr. Kenneth Locke University of Idaho

Quentin JonesAustralia


Dr. Timothy Leary 1920 - 1996

Leary Circumplex - 1957

The circumplex tradition in

interpersonal psychology was

inspired by the sociological

theory of George Herbert Mead

(1934) and the interpersonal

theory of Harry Stack Sullivan

(1953)


Dr. J. Clayton Lafferty - 1928 - 1997

The Circumplex


• Defensive Cultures - Inactive/Reactive

– How people see you is more important than what you do

– Focus on blame

– Maintain the status quo

– Value winning above competence

Two General Types of Culture


Jigs, Fixtures and all other items in this area are the property of the Engineering Department.

Manufacturing people are not welcome here!

Sign on area door of Fortune 50 Manufacturing Company


• Defensive Cultures - Inactive/Reactive

– How people see you more important than what you do

– Focus on blame

– Maintain the status quo

– Value winning above competence

• Constructive Cultures - Proactive

–Foster innovation

–Reinforce personal responsibility and accountability

–Value performance

–Value cooperation and teamwork

Two General Types of Culture


Members interact with

people in ways that will

not threaten their own

security.

• 3 Approval

• 4 Conventional

• 5 Dependent

• 6 Avoidance

Passive/Defensive


Members approach

tasks in forceful ways

to protect their status

and security.

• 10 Perfectionistic

• 9 Competitive

• 8 Power

• 7 Oppositional

Aggressive/Defensive


• 11 Achievement

• 12 Self-Actualizing

• 1 Humanistic-Encouraging

• 2 Affiliative

Members interact with

others and approach

tasks in ways that will

help them to meet their

higher-order

satisfaction needs.

Constructive


Satisfaction

Security

Higher Order

Needs

Lower Order

Needs

Satisfaction vs. Security Needs


Task

Centered

People

Centered

Task vs. People Orientation


• Emphasis on human assets

• Adaptable

• Customer service excellence

• Innovation • Loyalty/Satisfaction

• Inter-unit coordination

• Cooperation

• Market shaper

•

• Secretive

• Punitive

• Reactive

• Concerned with Appearance

• Arrogance

• Bullying

• Hierarchical

• Internally Competitive

• Unresponsive

• Driven by market

• Formal

• Entitlement

• Bureaucratic

• Conservative

• Inactive

• Fearful

Organizational Effectiveness Model



Total Group Ideal N=15,982

Preferred Culture – North America


Preferred Culture - Worldwide

Latin American Cluster

Chile, Columbia, Venezuela

Germanic Cluster

Germany, Switzerland

Near Eastern Cluster

Greece, Turkey

N=15,982

North American Cluster

USA, Canada

Nordic Cluster

Denmark, Finland, Norway


Australia Korea

Preferred Culture - Worldwide


Military DefenseIdeal Culture

Air Force Base Navy Yard

US Military Ideal


US Government IdealN=1173

US Government


Female

N=5014

Male

N=5325

US Male / Female


Under 20

20 - 29

30 - 39

40 - 49

50 - 59

60 +

Age


Operating Culture(OCI Norms)

Outcomes(System

Effectiveness)

Supersystem(Customers)

Organizational(Profitability)

Subsystem(Members)

Causal Factors(Levers for Change)

Mission and

Philosophy

Structures

Systems

Technology

Skills/Qualities

Ideal Culture(Values)

.

How Culture Really Works

Lean


How Culture Works

Antecedents(Levers for Change)

Operating Culture(OCI Norms)

Outcomes(Effectiveness)

Individual

Group

Organizational

AssumptionsEspoused

Values (Ideal Culture)

PhilosophyMission

GoalsStrategies

Structures

Systems

Technology

Skills/Qualities

Technology

Job design

Complexity

Inter-dependence


*Based on Balthazard, Potter, and Cooke, 2008

(n=31 virtual teams)

The Electronic Disintegration of Interpersonal Teams


Opposes new ideas

Looks for mistakes

Resists change

Critical of others

7

Wants to control everything

Believes in force

Has little confidence in people

Seldom admits mistakes

8

Competes rather than cooperates

Strong need to win

Constantly compares self to others

9

Never wants to make a mistake

Sets unrealistic goals

Personally takes care of every detail

Creates self-induced stress

10

Shows strong commitment to organization

Receptive to change

Creative problem solver

Non-defensive

Self respecting

12

Trustworthy

Resolves conflicts constructively

Encourages growth and development in

others

Involves others in decision making

Motivates by serving as a role model

1 Cooperative

Friendly

Genuine concern for others

Accepts change

2

Achieves self-set goals

Accepts and shares responsibility

Insightful in diagnosing problems

Believes that individual effort is important

Takes on challenging tasks

11

Sets goals that please others

Supports those with the most authority

Agrees with everyone

Reluctantly deals with conflict

3

Treats rules as more important than ideas

Follows policies and practices

Reliable and steady

Sets predictable goals and objectives

4

Relies on others for direction

A good follower

Doesn’t challenge others

Aims to please everyone

5

Avoids conflict

Has difficulty making decisions

Is non-committal

“Lays low” when things get tough

Hopes that problems will take care of themselves

Individual Effectiveness Model


Predominance in 11 O’clock Achievement Style

Company President/Chief Executive Officer

Selected as the Industry’s Executive of the Year

Stylus Level 1


Stylus Level 1

Predominance in 10 O’clock Style of Perfectionism

A 54-year-old Male Who Has Had Five Ulcers


Stylus Level 1

March The following March

Vice-President of Non-Routine Operations “Banking”58-year-old Male

Managed Customer Service Department


LSI 2

President of Financial Services 57-year-old MaleLSI 1

• Ineffective in his job

• President & Chairman

had not spoken for 3 years

• Divorced after 29 years

• Son — drug charges

Stylus Level 1 & 2


Others View

n=5

Self View

Corporate Resources of Fortune 50 Company41-year-old Female Executive Director

• Ranked 1 of 189 in

internal employee

satisfaction survey 3

years running – 79.2%

favorable rating

• Department

consistently under

budget and schedule

on managed projects

Stylus Level 1 & 2


Senior Management Management Non Management

Large Manufacturing Company

Organizational Culture Actual


Department Managers

n=24

Manager

LSI Level 1

38-year-old Female

• 1.3% MCE

• Rework high, monthly

money loss

• Turnover < 300%

• Mgr – severely disturbed

• VP – ex Marine DI

• Co – RICO violations

Division of a Large Computer Company

Organizational Culture Inventory


Total Group

Ideal Culture N=35

Large Telecommunications Company Ideal

Total Group

Current Culture N=313


Manager’ of a Subsidiary of a Large

Telecommunications/Broadcasting Company

Total Group

Current Culture

N=313

Large Telecommunications CompanyManager Level 1


Manager of a Subsidiary of a Large

Telecommunications/Broadcasting Company

Total Group

Current Culture

N=313

Large Telecommunications CompanyManager Level 2


Large US Law Firm – 700 Attorneys

Competition/Perfectionism•Be a “winner”

•Win against others

•Be seen and noticed

•Never appear to lose

•Always try to be right

•Out-perform their peers

•Be the center of attention

•Turn the job into a contest

•Compete rather than cooperate

•Maintain an image of superiority

IDEAL


All 2000 N=133

All 2005 N=205

All 2009N=187

State Government Agency


Navy – Culture Initiative


Fortune 50 Manufacturer


Moving to a Lean Culture

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Documents

Welcome to “How to Measure Culture”