Leading Cultural Change

1
Leading Cultural Change

• February, 2009

2
Objectives and Agenda

• Objectives
• Understand what cultural change is, when it is
  necessary, and how to drive it.
• Understand the County of Eries cultural change
  plan and your role in it
• Agenda
• Introduction
• Definition of culture .
• When is cultural change necessary?
• Cultural change model
• Vision
• Required cultural changes
• Review of plan elements and corresponding Erie
  County plan elements
• Summary/next steps

3
What is Culture?

• What is your definition of Culture?

4
Definition of Culture

• Culture the shared set of beliefs, attitudes,
  and values that influence how people behave.

5
Why Worry About Culture?

• What is important about culture?

6
Why Worry About Culture?

• Organizations are unlikely to sustain long-term
  performance excellence without a culture that
  supports high performance.
• High performing organizations have strong
  cultures.

7
When is Culture Change Necessary?

• The future vision requires significant change in
  behavior.
• When the current culture and its underpinnings
  wont fully support the future vision and/or
  desired behavior changes.

8
Cultural Change
9
Cultural Change Model

• Cultural change model adapted from change process
  successfully used by Xerox in early 80s to
  transform the company. Xerox won Baldrige Award
  in 1989.
• Model applied to key Xerox suppliers, many have
  achieved world class performance.
• Has been applied since then to many different
  types of organizations.

10
Cultural Change Success Stories

• CVC, Inc.
• Xerox Corporation (1980s)
• Ames Rubber
• Trident Tool
• Ontario County Government (1990s)

11
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
12
Cultural Change Model

• How do many organizations attempt to drive
  cultural change?

13
Cultural Change Model

• The effective use of the Cultural Change Model
  requires the creation of a transition plan that
  details how key drivers will be addressed to
  create the desired change.

14
Core Cultural Change Elements

• Team Charter Patrick Welch
• Vision Statement Chris Collins
• Mission Statement Chris Collins
• Values/Guiding principles Chris Collins
• Cultural Changes required Bill Carey
• Management Roles and Responsibilities
• Al Hammonds
• Communication Plan Jim Hornung

15
Core Cultural Change Elements

• Recognition Reward Plan Chris Putrino
• Standards Measures Cheryl Mekarski
• Training Plan John Greenan
• Plan for Empowerment of Employees
  Michael Weiner
• Implementation Plan that identifies timeframes,
  activities, resources, and expected results Dan
  Fliss Denise Szymura

16
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
17
Transition Mgmt Team

• Change process needs to be managed by transition
  team
• Team should be made up of key individuals who
  would normally be involved in critical and/or
  strategic business decisions
• Team has to plan and implement the change, stay
  the course, assess progress, make corrections, be
  the champions

18
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
19
Vision

• The primary purpose of a vision statement is to
  describe how an organization finds its
  fulfillment. It declares the companys intention
  with regard to the future state it desires to
  create.
• Liberating the Corporate Soul by Richard Barrett

20
Vision

• The Impact of Vision
• Whether you think you can, or think you cant,
  youre right.
• Henry Ford

21
 Mission

• The mission statement keeps the energies of the
  company focused around its core business.

22
 Mission

• Typically a Mission answers four questions
• Who are we?
• What do we do?
• For whom?
• Why do we do it?

23
Values and Cultural Change
24
Vision

• Vision needs to be consistent with, and/or
  integrate the organizations values.

25
 Values

• Deeply held beliefs that a certain way of being
  or a certain outcome is preferable to another.
• Values are externally demonstrated through
  behaviors
• Liberating the Corporate Soul by Richard Barrett

26
Erie County Cultural Change Plan

• Review Erie County Vision, Mission, and Values /
  Guiding Principles

27
Cultural Changes Required
28
Cultural Changes Required

• Good to identify what needs changing your
  organizations own assessment tool can be both a
  communication vehicle and measurement instrument

29
Erie County Cultural Change Plan

• Review Erie County Cultural Changes Required
• (Complete Assessment)

30
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
31
Management Behavior

• Key determinant of organizational culture
• Employees pay more attention to what managers do
  than what they say
• Need to define roles and responsibilities in
  support of the new Vision and during the
  transition period
• Training and coaching of managers needs to
  addressed early on the change has to be driven
  top-down
• Advancement should be, in part, contingent on
  demonstrated execution of roles and
  responsibilities

32
Management Behavior

• During a cultural change initiative
• Is it enough to say youve got to walk the
  talk, or youve got to be a role model when
  defining managements role?

33
Erie County Cultural Change Plan

• Review Erie County Management Roles and
  Responsibilities

34
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
35
Communications

• You have to tell them what youre going to tell
  them, tell them, and then tell them what you told
  them
• Need to communicate
• The need for change
• What the change is
• How we will change
• Progress, especially success stories

36
Erie County Cultural Change Plan

• Review Erie County Communications Plan

37
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
38
Recognition Reward

• What gets rewarded, gets done (be careful what
  you reward)
• During a change process, too much focus is on
  antecedents, not enough on consequences
• Need carefully thought-out plan for providing
  incentives to reinforce the transition

39
Erie County Cultural Change Plan

• Review Erie County Recognition and Reward Plan

40
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
41
Standards Measures

• Standards create expectations for how things are
  done
• Process standards may include statistical tools,
  problem solving, and process improvement
  techniques that facilitate continuous improvement
• Other standards may include how meetings are
  conducted, making data-driven decisions,
  determining customer requirements for all outputs
  produced, etc.

42
Standards and Measures

• When you can measure what you are speaking
  about, and express it in numbers, you know
  something about it but when you cannot measure
  it, when you cannot express it in numbers, your
  knowledge is of a meager and unsatisfactory
  kind
• William Thompson (Lord Kelvin)1824-1907

43
Standards and Measures

• The measures tracked, reported, and managed need
  to be directly linked to the Vision. You cant
  just focus on the financial health of the
  organization.

44
Erie County Cultural Change Plan

• Review Erie County Standards and Measures Plan

45
Cultural Change Model
Management Behavior
Communications
Key Drivers of Change
All key drivers need to be in sync and aligned
with the vision.
Recognition Reward
Standards Measures
Training
Transition Mgmt
46
Training

• Training in roles and responsibilities, standards
  and measures needs to be addressed at every level
  of the organization
• Tools for collecting, analyzing, and using data
  to do root cause analysis and corrective action
  need to be understood at all levels of the
  organization
• Training needs to be systematic

47
Erie County Cultural Change Plan

• Review Erie County Training Plan

48
Empowering Employees
49
Empowerment

• Empowerment is pushing decision making to the
  lowest appropriate level in the organization.
• Effective empowerment requires
• Opportunity
• Access to information
• Appropriate skills

50
Empowerment

• Employees should be empowered to improve
  processes, solve problems, make decisions that
  affect them and their work.

51
Erie County Cultural Change Plan

• Review Erie County Empowerment Plan

52
Implementation Plan
53
Implementation Plan

• Cultural change typically takes several years.
• The implementation plan should reflect this.
• The Transition Management Team should lay out a
  multi-year plan that identifies
  actions/activities and expected results.

54
Erie County Cultural Change Plan

• Review Erie County Implementation Plan

55
Next Steps

• Some Mgrs will be selected and prepared for
  cascade of cultural change initiative to all
  employees.
• Employees will be scheduled for communication
  sessions.
• Session will be scripted to facilitate consistent
  and accurate communication (Mgrs Communication
  Tool Kit)
• Session will include completion of Cultural
  Change Assessment instrument by all employees.
• Overall Cultural Change Plan and Mgrs
  Communication Tool Kit, and Cultural Change
  Assessment Instrument will be available on
  Sharepoint.erie.gov.