What’s your Korporate Kool-Aid?What’s your Korporate Kool-Aid?

November 4, 2010

OR

AgendaAgenda Introductions T Rhiel Culture, Change and the Emotionally

Intelligent (EI) Leader T Rhiel Case Study S

Allinson Snacks and Networking All

Setting the StageSetting the Stage

Did You Know? http://www.youtube.com/watch?v=cL9Wu2k

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Defining the TermsDefining the Terms

Culture Change Management Leadership and EI

(Emotional Intelligence)

Drinking Your Kool-AidDrinking Your Kool-Aid

“The Hard stuff is easy and the Soft stuff is hard” Culture, Change and Emotionally Intelligent

Leadership are always present always active – even if you’re not paying attention

Culture – will help determine your ability to manage change

Knowing how to proactively manage change can make you resilient

…It all begins and ends with Leadership

Culture in OrganizationsCulture in Organizations

Question – How often do you and others think about your culture?

CultureCulture Every business

develops a culture based on: The products it

manufactures or sells

The services it delivers

Competitors and the competitive environment

Reaction to threats and external stress

The regulatory environment

Corporate culture is comprised of:

Attitudes

Values

Experiences

Beliefs

Values

Myths

Artifacts

Espoused Values

Schein’s Culture ModelSchein’s Culture ModelSchein’s Culture ModelSchein’s Culture Model

Visible organizational structures, processes, norms

Strategies, goals, and philosophies that are justifications for things being as they are

Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings; the ultimate source of values and action

Basic Underlying Assumptions

Visible Visible and and KnownKnown

Invisible Invisible and and UnspokenUnspoken

“Culture” is all the unspoken assumptions a group holds about the world and how it works

Most of the time, you’re not even aware that you’re being influenced by it!

In other words …In other words …

Culture is so strong that people will deny, minimize, ridicule, or dismiss the reality of what they see or experience if it conflicts with their core culture assumptions.

This is where culture gets its real power!

“Culture eats strategy for Breakfast”“Culture eats strategy for Breakfast”

Culture

Culture change can be done, but it is a long term (minimum 3-5 years) process

All aspects of the organization must be addressed and aligned with the desired culture: Structure (the organization’s architecture) Symbols (images that reinforce the culture) Systems (e.g., appraisal system, selection systems) Staff (selection, development of human resources) Strategy (behavioral manifestations of organization's vision) Style of leaders (attitudes, examples set by top leaders) Skills of managers (competencies of individuals who carry out the

change process.)

Can culture be changed?Can culture be changed?

What examples do you have of “toxic” cultures you may have experienced?

Toxic CulturesToxic Cultures

Each organization is perfectly designed to get the results it gets

MENTAL MODELSMENTAL MODELS

Mental ModelsMental Models

Have you heard the term “Mental Models?”

The Dog, the House and the FlagThe Dog, the House and the Flag

Visualize… Your perfect house Describe the flag of the greatest nation on earth

Mental ModelsMental Models

… are the images, assumptions and stories that we carry in our minds of ourselves, other people, institutions and every aspect of the world.

They determine what we see By definition are flawed in some way Below level of awareness

usually untested

Our beliefs are the truth The truth is obvious (to us) Our beliefs are based on real data The data we select are the real data Robert Bly and our large brown bags

GM’s Mental ModelsGM’s Mental Models GM is in the business of making money, not cars Cars are primarily status symbols. Styling,

therefore, is more important than quality The American car market is isolated from the rest of

the world Workers do not have an important impact on

productivity or product quality Everyone connected with the system has no need

for more than a fragmented, compartmentalized understanding of the business

Ladder of InferenceLadder of InferenceL

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of

abst

ract

ion

Ref

lexi

ve L

oop

I take Actions based on my beliefs

I adopt Beliefs about the world

I draw Conclusions

I make Assumptions based on the meanings I add

I add Meanings (cultural & personal)

I select Data from what I observe

Observable data and experiences

Ladder of InferenceLadder of Inference

We can’t count on Ken. He is unreliable.

Ken always comes in late.

Ken knew exactly when the meeting was to start. He deliberately came in late.

The meeting was called for 9 a.m. and Ken arrived at 9:30. He didn’t say why he was late.

Change ManagementChange Management

Examples of Change You are Facing or Have EncounteredExamples of Change You are Facing or Have Encountered

Economic ImpactEconomic Impact

Managing change impacts the bottom line – period!

Not managing change effectively costs money, time, resources, and productivity

Why do Change Management?Why do Change Management?

Introduction

of change

With Change Management: Productivity Increase

Without Change Management: Productivity Decrease

Introduction of change

Time

Time

Pro

du

ctiv

ity

Pro

du

ctiv

ity

Black HolesBlack Holes

Result -- people learn to ignore management directives

Organization loses confidence in leadership when management can’t fulfill the promise of their directives

Cost for corporate black holes can be enormous

When change is managed poorly people feelWhen change is managed poorly people feel

How do you feel when you go through change?

Anxiety Stress Lack of control over their lives Uncertain about the future Not vested in the process or results

Organizational Change: Two OptionsOrganizational Change: Two Options

Beliefs Behaviors Assumptions

Current Culture

Attempts to introduce changes that are generally consistent with the current culture usually are successful

Attempts to introduce changes that are radically different than the existing culture usually are not successful

ResistanceResistance Perception of change determines whether

resistance occurs One person sees the change as a small

wrinkle Another regards the change as a complete

transformation Open resistance is healthy

Don’t fight resistance, acknowledge it The 20 60 20 rule

The cost of changeThe cost of change

Beforechange

Beginningof change

Duringchange

Afterchange

Money

Time

WORKING WITH EMOTIONAL INTELLIGENCE - EIWORKING WITH EMOTIONAL INTELLIGENCE - EI

Emotional IntelligenceEmotional Intelligence

“Anyone can become angry – that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way – this is not easy.” Aristotle

EI vs. IQEI vs. IQ

Who wins? ….and why? Where does IQ win?

Programmed ResponsesProgrammed Responses

Reinforcing, here they come again – Mental Models

Passions can overwhelm reason Death

Developing EI Means Developing Your Leadership StyleDeveloping EI Means Developing Your Leadership Style How do you develop it?

It all starts with deep, deep understanding of yourself

Your strengths, weaknesses areas of growth Blind spots A life long commitment to learning

Bringing it all TogetherBringing it all Together

As a leader your style will impact The culture of your organization and the type of

culture you will ultimately develop How well your organization manages change Your willingness to continually develop your

leadership style

Business ResultsBusiness Results

OR

Case StudyCase Study

Culture Change Management Emotional Intelligent Leadership

Reality Hits

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