moving the needle on culture: quantifying culture change•culture is a product of organization...

Moving the Needle

on Culture:

Quantifying

Culture Change

Susan Anderson,

Vice President, Hitachi Consulting

Introduction

#ACMP2015 © 2015 Association For Change Management Professionals. 2

• Susan Anderson

• Vice President leading the Organization Effectiveness (OE) Community of Practice at Hitachi Consulting

• Broad experience across ERP, custom development, process improvement, and organizational design projects with an eye towards managing buy-in and adoption and mitigating resistance.

Who I Am

Low Tech Poll #1

•Please raise the paper you took upon entry –High up in the air

•Notice the distribution across the room

#ACMP2015 2015 © ACMP All Rights Reserved 3

High Tech Poll #1

•To Begin:• Text the phrase “CultureACMP2015” to 22333. (Standard

text rates apply). • Login to: www.PollEv.com/cultureacmp2015

Question: Which best characterizes your level of exposure to Change Management

• A: Entry Level

• B: Intermediate

• C: Advanced


Agenda &

Intro to Topic

The Agenda


Case Study 40 Minutes

Groundwork: What is Org Culture 10 Minutes

Introduction 5 Minutes

Deployment and Change Mgt. 15 Minutes

Wrap Up 5 Minutes

The 6-Step Culture Change Roadmap 15 Minutes

Introduction –

Learning Objectives

• Learn how to….

… create an approach to define and measure culture change

… define and measure progress towards culture change

… define levers to pull to enable long term goals

… deploy a culture change initiative


Activity

Create your ‘best’ definition of culture

3 minutes

Culture Definition

•One person from each table, please text or enter on the website the key phrases and key words from your definition into our Poll.


What is Organizational

Culture?

• Organizational culture is the pattern of shared BELIEFS and VALUES learned by organization members from their experiences together that influence and guides their perceptions, perspectives and behavior PRACTICES


BELIEFS

How people feel about their work

today

VALUES

What’s really important in

enabling personal and organizational

success

PRACTICES

How people behave – this is driven by what is measured

and rewarded

What We Know About Culture

• There is no one “best” type of culture

• Culture is a product of organization success and is learned

• Culture evolves/develops naturally over time, yet tends to be relatively stable

• Culture exerts its influence often outside of immediate awareness

• Organizational cultures are complex and multi-faceted

• Culture can make a difference in business performance

• Culture differentiates organizations


Leader Behaviors Directly

Shape Culture

•Observed criteria by which leaders recruit, select, promote, or banish organizational members

•The nature / type of goals and priorities established

•Criteria used for resource allocation & capacity planning

•What is measured, rewarded, punished

•Response to critical issues

•What leaders pay attention to


Culture Change Overview

Key Points Addressing Culture Challenges

People issues cannot be ‘overhauled’ quickly

Identify and retain positive elements

Visible rewards and recognition

Leadership must be 100% committed

Shift in organizational goals requires changes in behaviors


Culture Change Overview

Success Factors for Culture Change

Leadership Alignment

Be Realistic

Define & Communicate the New Vision

Articulate Sense of Urgency

Publicize Quick Wins


The Culture Change Journey


Cultural Change

Behavioral Change

Procedural Change

Stag

es o

f Im

ple

men

tati

on

Sustainability

Improvement

Usage

Understanding

Development

Awareness

Compliance

Installation

You need to get beyond

mechanical compliance with

changes and have tools to

manage the process to

sustainability

Step 1: Culture Change

Roadmap


Where to Start?

1 Set long term vision / targets

Sample Goals

• Customer Service

• Quick on our feet

• Easy to work with – keep it simple

• Meet requirements – not order takers

• Able to communicate the value of IT to the Business (Service provided)

• Work Quality

• Prioritizing the right things

• Deliver when we say we will

• Transparency of what IT is doing

• One IT

• Not fire fighting (maybe an interim)


Sample IT Dept.


Roadmap


2 Define future culture characteristics in a phased fashion (a Behavior Map)

Sample Behavior Map


Quantify Behaviors & Draft Metrics

Cultural

Change

Behavioral

Change

Procedural Change

Sta

ges

of

Imp

lem

enta

tio

n

• Consistent execution against Procedural elements

• Executing on Long Term Corrective Actions / Root Cause

Analysis excellence

• Beginning to view IT in Service Model view; removing

‘team’ barriers

• Higher quality in problem solving – solving problems with

customer orientation and long term view for improvement

to systems

• Using Remedy to actively manage work and problem

tracking vs. a red-tape system

• Moving towards ‘One IT’ – Supportive of cross-team

needs within IT

• Customer service orientation enabled through E2E approach;

creating customized solutions based on needs – not an order taker

• Running IT like a business

• Collaboration (Agility, Innovation)

Change will be measured over time in

three categories:

1. Customer Service

2. Work Quality

3. ‘One IT’


Roadmap


Quantify desired behaviors associated with overall goals3

Activity

•Sample Goals for a Call center• To improve our Customer Service capability to rise to top

5% Best In Class of our industry• To increase our Customer Satisfaction scores to 95% +


What behaviors might you guess need to change and how would you

measure that?


Roadmap


4 Establish metrics and targets (leading

indicators) as well as weighting

Sample Metrics and behaviors

CategoryWhat will

we measure?

Value Green Yellow Red

Cu

sto

me

r Se

rvic

e

Call Hold Time

The least amount of time a customer is hold, the higher the satisfaction and perceived responsiveness

98% or more hold less than 45 seconds

Between 75% and 97% hold less than 45 seconds

Below 75% hold less than 45 seconds



Roadmap


5 Develop scorecard and gather baseline

Example Culture Index

Scorecard


Categories with various weightings

Individual metrics with relative weights


Roadmap


Reporting and adjusting as time goes by6

From Theory to Action

First Up – Case Studies

Followed By – Readiness Planning

The Unveiling


• Post-Merger Integration Scenario• Totally fictitious • We’ll have a series of activities

through the 30 min or so

Ready? Then read your Case Studies at your table.

Activity 1

• Review Case Study Background

• Discussion 1a: • What assumptions does your table want to make about the case

study? What specific challenges do you anticipate this group needing to address?

• Discussion 1b: • How would you go about helping this team develop long term goals?

Which areas do you anticipate might emerge as a focus for goals and outcomes?


10 minutes

Debrief Activity 1

•Poll: •What areas might emerge as a focus for this culture change needed for LLL and CCU?


Activity 2

• Review the provided Long Term Goals

• Activity 2a: • Given the long term goals and categories, what do you think is

feasible for the short term (say, the first year)?

• Come up with 3 specific short term goals for one category

• Activity 2b: • How would you measure these newly defined short term goals?

• Develop specific goals, targets and thresholds for one of the goals you identified


7 minutes

Activity 3 - Assumptions

Cultural Change

Behavioral Change

Procedural Change

Stag

es o

f Im

ple

men

tati

on

• Get three new products to market in 2016 leveraging skills across LLL / CCU.

• Create transparent performance metrics that drive the consistent behaviors.

We will measure change over time in two categories:1. Market Domination2. Culture of Accountability

Activity Step 3

• Review the provided Short Term Goals and metrics on the handout

• Activity 3a: • Given the stated short term goals and categories, assign relative

weightings to each category • Determine relative weightings for each metric listed

• Activity 3b: • In looking at the defined metrics and goals provided, how would you

approach assigning values to the Red, Yellow and Green categories?• Practice assigning values to the first two metrics


8 minutes

Debrief Activity 3

• What percentage did you allocate to Category 1: Dominate the Market?

• A: 0 – 19%

• B: 20% - 39%

• C: 40% - 59%

• D: 60% - 79%

• E 80% - 100%


Getting back to our craft…


My thoughts on change

management and readiness…

• Visibility to metrics and progress is critical

• Finding the right range for metrics is also important – balance of motivation vs. demoralizing the team

• Communicating what is going to happen and level of transparency builds understanding and prevents members from feeling unduly exposed

• Provide the right tools, skill development, and supporting resources to enable the changes

• Sponsorship and active follow up on measures (ties back to opening on leadership influence)

• Manage expectations with leadership


Change Management

Considerations

From ACMP’s Standard for Change Management©5.1.1 Define the Change

5.1.2 Determine Why the Change is Required

5.1.3 Develop a Clear Vision of the Future State

5.1.4 Identify Goals, Objectives, and Success Criteria

5.1.5 Identify Sponsors Accountable for the Change

5.1.6 Identify Stakeholders Affected by the Change

5.1.7 Assess the Change Impact

5.1.8 Assess Alignment of the Change with Organizational Strategic Objectives and Performance Measurement

5.1.9 Assess External Factors that may Affect Organizational Change

5.1.10 Assess Organization Culture(s) Related to the Change

5.1.11 Assess Organizational Capacity for Change

5.1.12 Assess Organizational Readiness for Change

5.1.13 Assess Communication Needs, Communication Channels, and Ability to Deliver Key Messages

5.1.14 Assess Learning Capabilities

5.1.15 Conduct Change Risks Assessment


Much of this work is completed with the 6-Step Culture Change Roadmap

Some of this work is completed with the 6-Steps; more work is needed

Focus area for Change Management planning

Final Activity

• Around your table, discuss for your case study the three Change Management risks you see.

• Prioritize and agree on the top three risks.

• What steps would you propose to take to mitigate those top three risks?

• What other key considerations would you include in your initial change management planning?


8 minutes

In Closing: Lessons Learned


• Watch for unintended outcomes for what you measure; unintended behaviors may emerge

• Measure things you want to keep in place – don’t lose sight of what is currently working

• Don’t fall into complacency trap of ‘hitting all the targets’ – ensure there is a process to keep the tension in the system for ongoing improvements

• Adapt measurements to align with changing corporate or departmental goals / objectives

• Balance of transparency vs. hanging out individuals to dry

• Revisit metrics periodically to support continuous progress to the long term objectives

Wrapping Up – Our original

Learning Objectives

• Learn how to….

… create an approach to define and measure culture change

… define and measure progress towards culture change

… define levers to pull to enable long term goals

… deploy a culture change initiative


Final Poll

• Can you do the standard polls – this was a valuable use of my time; met stated objectives, etc?


Questions?

For those using the Texting method for polling, please text ‘Leave’ to end your session.


For those using the Texting method for polling, please text ‘Leave’ to end your session.

Thank you

moving the needle on culture: quantifying culture change•culture is a product of organization...

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