Unlocking the

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Unlocking the Secrets of Cultural Transformation
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Agenda

• 9.10 am Introduction to the Culture
  Transformation Challenge Pam
  Wilson, Human Synergistics
• 9.35 The Dynamics of Culture Transformation
  Dexter Dunphy, Distinguished Professor,
  University of Technology, Sydney
• 10.45 Morning Tea (Oceania)
• 11.10 Making Our World a More Sociable Place
  Bob Barbour, People Culture Director, Lion
  Nathan
• 12.00 Creating a Successful Organisation for All
  Stakeholders Steve McCarthy, CEO Adshel
• 12.50 Closing Comments Shaun McCarthy, Chairman
  MD Human Synergistics
• 1.00 pm Close

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Unlocking the Secrets of Cultural Transformation
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• Introduction to
• the tools
• the research

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Organisational Culture?

• Culture is the shared values, norms and
  expectations that guide organisation members in
  terms of how they.
• ...approach their work
• ...interact with each other
• interact with their customers.

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Organisational Culture?

• Key elements of this definition
• Culture is something shared
• Values (what is important) and beliefs
• (how things work) are central components
• Norms are explicit implicit rules
• Expectations reflect what is encouraged,
  discouraged, rewarded punished

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The CircumplexDescribing Cultures
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The Circumplex
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Task vs People Orientation
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Satisfaction vs Security Needs
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The Passive/Defensive Styles

• Approval
• Conventional
• Dependent
• Avoidance

Cultures in which members believe they must
interact with people in defensive ways that will
not threaten their own security.
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The Aggressive/Defensive Styles

• Perfectionistic
• Competitive
• Power
• Oppositional

Cultures in which members are expected to
approach tasks in forceful ways to protect their
status and security.
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The Constructive Styles

• Achievement
• Self-Actualising
• Humanistic-Encouraging
• Affiliative

Cultures in which members are encouraged to
interact with others and approach tasks in ways
that will help them to meet their higher-order
satisfaction needs.
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Australia New ZealandPreferred Culture 2006
update

• 12,715 people said that this is how they ideally
  would like to be expected to behave

Ideal Culture Humanistic-Encouraging people are
supported and developed to be successful Self-Actu
alising people express their uniqueness,
creativity and embrace change Achievement people
set realistic but challenging goals and believe
their personal effort makes a difference Affiliati
ve people are friendly and cooperative
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Australia New ZealandActual Culture 2006
update

• 173,170 people said that this was how they are
  expected to behave

Actual Culture Oppositional oppose new ideas and
change, be on the offensive Avoidance avoid
responsibility and blame others for
mistakes Conventional maintain the status quo
and the way things have always been done around
here Competitive compete with each other in the
a win lose framework, play politics
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The Culture Disconnect
What we want What we get
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Explaining the DisconnectHow culture works
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Explaining the DisconnectHow culture works
MissionandPhilosophy
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Explaining the DisconnectHow culture works
MissionandPhilosophy
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Explaining the DisconnectHow culture works
MissionandPhilosophy
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Leadership
Culture
Performance
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The Average Leader
..as described by Others

• Self-protective
• Critical of others
• Controlling forceful
• Comparative vying
• Risk-averse

N 35,000
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Leadership
Culture

• Leadership behaviours that are oriented towards
  being.
• Self-protective
• Critical of others
• Controlling forceful
• Comparative vying
• Risk-averse

• In cultures that expect people to behave in ways
  that are (and reinforce behaviours) that are.
• Critical of others
• Comparative vying
• Demanding uncompromising
• Hard, tough and aggressive
• Avoid blame

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Culture Transformation Research Project
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Sample Demographics
40 Organisations Industry split 2 x
Communication 2 x IT 1 x Education 3 x
Energy 2 x Entertainment 11 x Finance 6 x Local
Government 4 x Manufacturing 3 x Marketing 1 x
Mining 2 x Not for Profit 2 x State
Government 1 x Wholesaler / Distributor
Size of Organisations 10 x Under 100
employees 19 x 100-500 employees 3 x 500-1,000
employees 8 x Over 1,000 employees
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Defining Cultural Transformation
From Defensive norms meeting Security needs
(Red/Green), to Constructive norms meeting
Satisfaction needs (Blue).
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Looking for Transformation

• Using transformation as an organising principle,
  we discovered that of the 40 organisations
  selected
• 25 regressed
• 75 showed some improvement
• 15 showed transformation

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Looking for Cultural Transformation40
Organisations Re-Test OCI
Test N 14,485
Retest N 15,956
NS Not Significant lt 0.05 lt 0.01 lt
0.001
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Identifying Transformation
Test ? Re-Test Change in OCI Percentile Scores
for 40 Organisations 2003-5
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Top 5 Test Re-Test OrganisationsOCI - Actual
Culture
Test N 2,073
Retest N 3,463
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Research objectives

• Identify the key drivers of culture
  transformation in 5 organisations reporting
  transformational shifts in OCI results
• Document in practical terms what these
  organisations did to create transformation

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Organisational Effectiveness
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HS Diagnostics Used

• All 5 organisations used the OCI (Test and
  Re-Test up to 4 times)
• All used individual circumplex diagnostics to
  enable individual transformation either the LSI
  or the L/I (up to 6 times)
• Two used the OEI to guide culture change
  interventions

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Research Organisations

• The final list of participating organisations
• Adshel
• MasterCard
• Yarra Valley Water
• Balmain Leagues Club
• Lion Nathan

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Unlocking the Secrets of Cultural Transformation