Organizational Culture and Managing Resistance

June 2007

When the rate of change outside exceeds the rate of change inside, the end is in sight
Jack Welch, Chairman / CEO General Electric Co

June 2007

Organizational Culture and Managing Resistance

The Issues
Culture and its functions The strength & health of a culture Culture elements and role of each element Forces and pressures for change Resistance to change (reasons and type of resistants) The Change equation Managing Change
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Organizational Culture
Culture: The set of values, guiding beliefs, understandings, ways of thinking, and norms shared by members of an organization Functions of culture Internal integration External adaptation

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Organizational Culture and Managing Resistance

Culture: Internal Integration

Determines how members relate to one another Constitutes a collective perspective of organization members (values, beliefs, norms) Shared by most members of the organization Systematically "passed along" to new members Shapes members' views of the organization and its purpose Shapes members' views of the job and its purpose Cont.
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Culture: Internal Integration (Cont.)

Provides sense of identity for members Guides and controls behavior Enhances internal cooperation Guides decision-making Enhances commitment Provides justification for behavior Allows anticipation of actions of others

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Organizational Culture and Managing Resistance

Culture: External Adaptation

Influences how organization meets goals and deals with outsiders Influences perceptions of the organization by outsiders Guides and controls behavior with/of outsiders Shapes expectations of outsiders
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The Strength of Culture

Depth: The degree of agreement among members about the importance of specific cultural values, beliefs, norms (i.e., how many people agree & how strongly) Breadth: The number of cultural elements (values, beliefs, norms) on which there is agreement
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The Health of a Culture

The healthy culture helps the organization adapt to the external environment The unhealthy culture can drive the organization in the wrong direction and thus be dysfunctional

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Organizational Culture and Managing Resistance

Cultural Elements

Hidden Elements

Visible Elements

Question: Does the hidden manifest in the visible? Question: Does the visible inform the hidden?
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Hidden Elements
Values about what is important Assumptions & beliefs about what is true Attitudes toward others and issues Norms about appropriate & inappropriate behavior
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Visible Elements
Rituals and ceremonies Language & Slogans Heroes Stories

Symbols

Language and Slogans

Intended to convey cultural meaning to employees and/or stakeholders Easy to pick up, remember, & repeat

Work Smarter
Not Harder

Quality is Job 1

Symbols
Things that stand for something else Material objects that hold cultural meaning

OPEN

Rituals and Ceremonies

Celebrations of an organizations values Provide dramatic examples of culture

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Heroes
Company role models whose ideals, character, and support of the organizational culture highlight the values and norms a company wishes to reinforce
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Our Founder
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Organizational Culture and Managing Resistance

Stories, Legends, & Myths

Narrative examples repeated among employees to inform (often new) employees about culture Stories: based on fact Legends: based on facts but embellished Myths: consistent with culture but not based on fact
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Forces for change

People Technology

Increasing diversity in age, education, ethnicity, and background.

Information Processing & Communicatio n

Manufacturing in space, internet, artificial intelligence

Computer, satellite communications, video conferencing

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Competition

Increasing globalization of markets Organizational Culture and Managing Resistance

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Pressures for Organization Change

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Resistance to Change
No matter how well designed and planned your change program is, not everyone will be singing its praises Employees resist change for a wide variety of reasons, ranging from a straightforward intellectual disagreement over facts to deep-seated psychological prejudices.
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Reasons of Resistance
Ignorance: a failure to understand the situation or the problem Mistrust: motives for change are considered suspicious Disbelief: a feeling that the way forward will not work Power-Cut: a fear that sources of influence and control will be eroded.
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Reasons of Resistance (cont.)

Loss: change has unacceptable personal costs Inadequacy: the benefits from the change are not seen as sufficient Anxiety: fear of being unable to cope with the new situation. Comparison: the way forward is disliked because an alternative is preferred Demolition: change threatens the destruction of existing social networks.
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Types of Reactants to Change 1. Enthusiasts 2.Followers 3.Objectors 4.Underground

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Types of Reactants to Change (cont.)

(1) Enthusiasts Are intrinsically wedded to the change idea. They may agree dispassionately that the change will be of benefit to the organization They may stand to receive some personal gain from the change Enthusiasts will use opportunities to broadcast approval for the change They will try to convince others of its merits. They will also model the new behavior early and will volunteer for membership of teams. These early adopters may also make good choices as trainers and coaches during the implementation process.
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Types of Reactants to Change (cont.)

(2) Followers Range from those that are generally compliant, wishing to take the path of least resistance, to those that are initially reserved to adapt. But eventually they adapt once they accept the inevitability of the change. These change recipients will do what is required, but no more.

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Types of Reactants to Change (cont.)

(3) Objectors will display their resistance to change whenever the opportunity arises. They may disrupt meetings, not attend training, take unapproved leave and refuse to carry out instructions. Objectors will continue to use superseded systems and processes when others are taking up the new ways of doing things. They are not averse to arguing with managers and fellow workers and will try to convince others to continue with the old ways. In a unionized environment, resistance can take the form of strikes, lockouts, work to rule, legal challenges and boycotts.
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Types of Reactants to Change (cont.)

(4) Underground Change recipients working for the underground have solid motivations for not making their resistance public. They may fear direct punishment, such as termination or fines, or more personal costs, such as ridicule or loss of status and authority. Managers who are against the change but need to be seen to be in support of it are prime candidates for promoting underground resistance. This style of resistance is, by its nature, always covert and can take many forms ; such as falsifying reports, inputting incorrect data, stealing, damaging infrastructure and equipment, using sarcasm, spreading rumors, excessive absences, shoddy work and go slow.
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The Theory of 30 40- 30

30% 40% 30%

Enthusiasts

Followers

Objectors & Underground

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Organizational Culture and Managing Resistance

The Theory of 30 40- 30

70%

30%

Enthusiasts Objectors & Underground

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THE CHANGE EQUATION: FACTORS NECESSARY FOR EFFECTIVE CHANGE

A The individual, group or organisation level of dissatisfaction with the status quo B A clear and shared picture of a better future how things could be C The capacity of individuals, groups and the organisation to change (orientation, competence and skill) D Acceptable and do-able first action steps E The cost (financial, time, aggro) of making the change to individuals, groups and the organisation.
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The Change Equation A + B + C + D must be greater than E

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The Change Equation: When Elements Are Missing

B + C +D means that the urgent will drive out the important and change will go to the bottom of the in-tray.

Missing A The individual, group or organisation level of dissatisfaction with the status quo

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The Change Equation: When Elements Are Missing

A + B + D means that with no investment to improve change management capacity, anxiety and frustration will result.

Missing C The capacity of individuals, groups and the organisation to change (orientation, competence and skill)

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The Change Equation: When Elements Are Missing

A + B + C means that the change effort will be haphazard and there will be a succession of false-starts.

Missing D Acceptable and do-able first action steps

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10 Commandments for Managing Change

1. Analyze organization and its need for change 2. Create shared vision and common direction 3. Separate from past 4. Create sense of urgency 5. Support strong leader role 6. Line up political sponsorship 7. Craft an implementation plan 8. Develop enabling structure 9. Communicate, involve people, and be honest 10.Reinforce and institutionalize change

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A 4-Stage Process For Dealing With Resistance 1. Consider Different People 2. Work With Values and Beliefs 3. Understand and Relate to Needs and Problems 4. Tailor Your Message to Your Audience.

1. Consider Different People

Identify the adopters - the staff the change will affect Identify key professional and organisational groups Identify crucial opinion-leaders in the organisation.

2. Work With Values and Beliefs

Assess whats important to people with regard to the change at personal, professional and organisational levels Understand and relate to what people consider important.

3. Understand and Relate To Needs and Problems

For all key players, assess Whats in it for Me? Dont be too precious about the detail of the approach proposed Understand peoples problems and needs from different perspectives.

4. Tailor Your Message To Your Audience

Do homework - get to know whats important to individuals and groups Keep the message as simple as possible Use case studies and examples to show benefits Highlight multiple pay-offs from change Use both informal & formal communication.

Great Minds discuss ideas, Average minds discuss events Small minds discuss people

Admiral Hymn Rickover

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References
http://www.thedelphigroup.com/change.html http://www.ericdigests.org/2003-1/culture.htm http://gbr.pepperdine.edu/051/resistance.html#_edn3 http://www.lotsofessays.com/viewpaper/1691941.html http://www.ra-gotessays.com/paper/27707/gotessays/ managing_organizational_culture.html http://www.newfoundations.com/OrgTheory/Bolognese721.html http://www.orgdct.com/mergers_and_organizational_cultu.htm http://www.businessperform.com/html/resistance_to_change.html

http://www.change-management.com/tutorial-change-leadership-mo

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