Change Implementation Techniques for Laying a Foundation for New Ways

Technique 1.22 Competing Values Framework

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Introduction

The way an organisation behaves results from a tug‐of‐war between a complex network of competing values. Each competing value pulls the organisation towards one of 4 types of culture:

i) a clan culture (values shared beliefs, teamwork and mutual support)

ii) an adhocratic culture (values freedom, initiative and creativity)

iii) a hierarchical culture (values efficiency, predictability and structure)

iv) a market culture (values goal achievement, competitiveness and performance)

This framework provides a picture or cultural map that demonstrates the unique culture of an organisation

A formal definition of culture is

"... a construct describing the total body of belief, behaviour, knowledge, sanctions, values and goals that make up the way of life of a people....... the way we do things around here..."

Harry Osman, 2004d

This framework is

" ...‐ practical (it has been applied in many organisations)

‐ timely (it has shown that changes are possible within a reasonable time period)

‐ involving (it requires input from many, but especially from those who direct the organisation)

‐ quantitative and qualitative (it is based on data, both numerical and anecdotal)

‐ manageable (it can be managed by those within the organisation without outside assistance)

‐ valid (it has been validated on a number of levels and in many different contexts)..."

Clan culture

This culture typifies an organisation that focuses on internal issues, especially relating to its people. It deals with such issues flexibly because it is concerned for its people. At the same time, it is sensitive to the needs of its customers.

‐ It's a friendly place to work with people sharing a lot of themselves, almost like an extended family

‐ The leaders are seen as coaches or even as parent figures

‐ The organisation is held together by loyalty or tradition

‐ Commitment is high

‐ The organisation emphasizes the long‐term benefit of human resources development and attaches great importance to cohesion

‐ Success is defined in terms of sensitivity to customers and concern for people

‐ The organisation places a premium on teamwork, participation and consensus

Adhocracy culture

This type of culture focuses on external positioning, maintaining its competitiveness with a high degree of flexibility and a focus on the individual. It is a dynamic, entrepreneurial and creative place to work, with people sticking their necks out and taking risks

‐ The leaders are considered innovators and risk‐takers

‐ The glue that holds the place together is commitment to experimentation and innovation

‐ Readiness for change and meeting new challenges are important

‐ The emphasis is on being at the leading edge

‐ The long‐term emphasis is on growth and acquiring resources

Hierarchy culture

This culture focuses on internal maintenance, with an overriding need for stability and control. It is very formalized and structured place to work

‐ Procedure governs what people do

‐ The leaders pride themselves on being coordinators and organisers who are efficiency‐minded

‐ Maintaining a smooth‐running organisation is most critical

‐ Formal rules and policies hold the organisation together

‐ Success is defined in terms of dependable delivery, smooth scheduling and low cost

‐ Employees are concerned with secure employment and predictability

‐ The long‐term concern is for stability and performance with efficient, smooth operations

Market culture

This type of culture focuses on external positioning, with a need for stability and control. It drives a results‐orientated organisation whose main concern is with "getting the job done".

‐ People are competitive and goal‐oriented

‐ The leaders are hard‐driving, tough and demanding

‐ The glue that holds the organisation together is an emphasis on winning

‐ Reputation and success are common concerns

‐ Success is defined in terms of market share and penetration

‐ Competitive pricing and market leadership are important

‐ The organisational style is hard‐driving competitiveness

‐ Long‐term focus is on competitive actions and achievement of measurable goals and targets..."

Harry Osman, 2004d

. Even though one culture may dominate, most organisations exhibit elements of all 4.

. Some organisations like Fosters have evolved through a range of cultures. Until John Elliot was in charge, it had a Clan‐like management style. He changed it into a Market style of management with a touch of Adhocracy, ie Fosters to become a world brand. Under Peter Bartels, it adopted a hierarchical style to consolidate its gains. Then with Ted Kunkel as CEO, it went back to a Market style as it tried to reinvent itself as a wine company; the current CEO, Anthony Hoy, is following immediate predecessors style, ie Market ‐ style

Characteristics of the 4 types of culture

An example Flexibility

Control

This cultural map shows an organisation strongly‐orientated towards adhocracy and market cultures at the expense of the other 2 types, (clan and hierarchy). This suggests it is an organisation that is building its market share by focusing on customers' needs. On the other hand, it could be

‐ ignoring the impact of the actions on staff morale

‐ losing sight of the need to build effective and efficient systems that back up service delivery

‐ experiencing problems in providing services it has committed to deliver

‐ seeing the sales function blaming the operational function of failing to follow through on sales commitments

‐ suffering from the operational function being under‐resourced and possibly undervalued

‐ enduring serious strains which are starting to create a morale issue

The cultural map can be used to ask the question

Is the culture appropriate to what the organisation is trying to achieve?

‐ In fact, the cultural map becomes a technique for adapting culture to strategy. Furthermore, the cultural map can be used

‐ to describe the past, the present and future direction

‐ to identify discrepancies between what is now and what should be

‐ to compare the different strengths of the cultural types and the required balance to achieve what is desirable

‐ to compare the degree of congruence

‐ to help explain the need to change and the direction the change will take

‐ clarify what the change means and what it doesn't mean

For example, if the organisation needs to become more adhoc, greater customer responsiveness is required, with the front‐line staff having greater discretionary power in dealing with the customers. This necessitates

"... ‐ that staff will make decisions, not management

‐ the staff need to use their own best judgment

‐ that management knows that staff won't always get it right

‐ that no one will get into trouble for making a wrong call

‐ that staff and management need to decide what sort of training they need for the new roles

‐ that training will be made available

‐ that managers will still be around to help..."

Harry Onsman, 2004d

Furthermore, it helps determine what type of leadership behaviour (hierarchical, clannish, etc) and organisational systems (processes, rules, procedures, policies, regulations, etc) are required to change the culture

A cultural map can help explain

"...‐ why some employees simply don't wish to be empowered (check the control systems and you'll find that making mistakes is punished)

‐ why people are always in the meeting rooms for which you've taken the trouble to make a reservation (check the extent to which anyone actually follows any protocol)

‐ why getting people to put customers first is difficult (check what happens if an employee fails repeatedly in a task ‐ most likely nothing)

‐ why your sales force performs exceptionally well, earning huge bonuses, yet may leave before the contracts are up (check the extent of teamwork and the co‐operation on display in the sales department ‐ you won't find any)..."

Harry Onsman, 2004d

How to complete the questionnaire In the "Now" column, each individual allocates scores to each of the 6 sections out of 100 points. For example, in questions 1 A to D, the 100 points is divided among the 4 statements (A, B, C & D). For example, give A, 35 points; B, 25 points; C, 30 points; D, 10 points, ie a total of 100 points.

. Add all the A scores in the group of participants and divide by the number of individual scores. This number is placed in the appropriate box in the table entitled "score sheet"

. Repeat the process for questions 2, 3, 4, 5 & 6

. Then add all scores under A for "Now" and divide by 6

. Plot the results on the diagram below entitled "culture map"

. Repeat the above procedure for "Desired"

To develop a culture map, the following questionnaire needs to be completed

Score Sheet

Culture Map

Flexibility

Control

(source: Harry Onsman, 2004d)