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Block 19: Culture & Change - Coggle Diagram

- - - - Creativity & Innovation: Companies like Google or Apple assume that fostering creativity and innovation is key to their success.
      - Process Excellence: Organizations like Toyota focus on continuous improvement and efficiency in their processes.
      - Cost Leadership: Companies like Walmart operate on the assumption that offering the lowest prices will drive customer loyalty and market dominance.
    - - Artifacts
        
        these mark the surface level of the culture. They are the visible elements of the culture and can be seen or noticed by an outsider to the organisation include:
        
        Physical artifacts such as office spaces, desks, uniforms, website designs
        
        An open-plan offices with shared desks and causal breakout rooms and no assigned seating give the impression of collaborative and flexible culture
        
        Language, such as how employees address each other and slogans
        
        Addressing peers with only surnames gives of a professional and systematic feel to the business. This could be found more in governmental spaces that require high degrees of professionalism and where employees give weight to the hierarchy.
        
        Stories and myths circulating among the staff, that show what counts as heroic or rewarded behaviours, what should happen in particular situations, and what happens if you make a mistake around here.
        
        Artifacts are visible, but not necessarily easily understood or observed by everyone alike one artifact can be interpreted by people differently (uniform said to be rigid or to promote equality)
        
        They offer clues about the hierarchy and level of collaboration, innovation versus tradition. And whether the company is more employee-centric or productivity-centric.
      - Values
        
        the company's declared set of values and norms. They reflect the shared opinions on 'how things should be'.
        
        Help employees assess whether actions are culturally desirable ("in line with values") or undesirable ("out of line")
        
        Example – Southwest Airlines:Founder Herb Kelleher reinforced the core value of affordability by frequently reminding employees: "low-cost airline." This prompted employees to self-evaluate if their proposals aligned with that value.
      - Assumptions
        
        Deeply ingrained beliefs and behaviors that often go unnoticed. Form the core of organizational culture.
        
        Example – Zappos:Operates on the basic assumption that outstanding service leads to long-term customer loyalty.
  - - - Focus: High internal focus and integration, with a strong emphasis on flexibility and discretion.
      - Characteristics: Friendly working environments, teamwork, and a strong focus on people development.
      - Examples: Family businesses, tech start-ups.
      - This means that there is a strong dimension of engagement and
        collaboration in the organisation, and a strong focus on people development.
    - - Focus: High flexibility and discretion, with a strong external focus and differentiation.
      - Characteristics: Dynamic, entrepreneurial environments focused on innovation and adaptation.
      - Examples: Advertising agencies, design studios.
      - Their aim is to create, often through innovation and
        adaptation
    - - Focus: High internal focus and integration, with a strong emphasis on stability and control.
      - Characteristics: Formal structures, efficiency-driven, and process-oriented.
      - Examples: Government departments.
    - - Focus: High external focus and differentiation, with a strong emphasis on stability and control.
      - Characteristics: Results-driven, competitive, and focused on winning market share.
      - Examples: Banks, insurance companies, mobile network operators.
      - Market organisations are focused on competing.
    - - Characteristics: Many organizations exhibit elements of multiple types, either due to subcultures or because they fall somewhere in the middle of the spectrums.
      - Example: Accenture combines competitive (market) and people-focused (clan) elements, with some departments focusing on standardized services (hierarchy) and others on bespoke work (adhocracy).
    - - flexibility & discretion vs. stability & control
      - internal focus & integration vs. external focus & differentiation
- - - - Example: A company might implement new technology to streamline operations or reorganize departments to improve communication.
    - - Example: A traditional retail company shifting to an e-commerce model or a manufacturing company adopting sustainable practices as a core part of its business model.
    - - Example: changing the version of an HR platform following IT updates. There are small changes, but nothing radical, and it's not a whole new system, but the same system with some new, better-developed features.
    - - Example: businesses who had to upskill on online sales as a result of the Covid-19 pandemic were engaging in a turnaround strategy to address a crisis.
      - The organisation maintains its business model, culture, structure etc. but important operating approaches might change. Reconstruction can involve a fresh approach to a problem in order to address a crisis.
    - - Change happens gradually over time (e.g., 3 years), not through sudden shifts.
      - Example: Shifting a customer service team from "handling complaints" to "proactive engagement" via training, new systems, and managerial hires.
      - No single defining moment—small, continuous adjustments reshape culture and operations. Employees adapt without overt disruption.
      - Must balance current operations with future adaptation. Challenges arise from sustaining this dual focus long-term.
    - - ‘Organisational ambidexterity’ is required, because the organisation tries to balance what it is currently doing with an eye on a gradually changing future.
  - - - Unfreezing: The first stage of change involves breaking down the existing status quo and creating a sense of urgency for change. This can be achieved by presenting data or evidence that shows the current way of doing things is no longer viable.
        
        Example: A company facing declining sales might use financial data to show that the current business model is unsustainable.
        
        You are creating a controlled crisis, which forces people to seek a new equilibrium that seems relevant and as though it can support the organisation in the future.
        
        three specific elements:
        
        Disconfirmation: This involves showing that the organization is not meeting its goals, which creates a sense of urgency for change. Disconfirmation can come from poor financial results, low customer satisfaction, or external threats (e.g., new competitors).
        
        Example: A company might realize that its customer approval ratings are declining, signaling the need for change.
        
        Survival Anxiety: Employees may feel anxious about the need for change, especially if they are attached to the current way of doing things, like the company losing financial viability or long-term sustainability. they might feel threatened. Leaders must address this anxiety by providing a clear vision of the future and how the change will benefit the organization.
        
        Psychological Safety: Leaders must create an environment where employees feel safe to embrace change without fear of negative consequences. This involves open communication, support, and reassurance.
        
        Changing: After accepting the need for change, organizations must implement new behaviors through repetition, role modeling, and experimentation. Leaders and early adopters guide others by demonstrating desired behaviors.
        
        Example: At IBM, Louis Gerstner outlined specific behavioral changes and created a leadership group of 300 people who embodied the new culture, ensuring only committed individuals were included.
      - Refreezing:New behaviors become stable when they are approved by key groups, produce positive results, and are reinforced by leaders. Hiring employees who align with the new culture also helps solidify the change.
        
        Example: Gerstner emphasized a performance-based culture at IBM, rewarding employees who embraced the new behaviors and hiring new staff who reflected the desired values.
  - - - Economic and trading conditions change
      - Technological disruption and new technologies
      - Changes in tastes, behaviours, values or requirements in society and/or customers
      - Activities and innovations of competitors
      - Legislation and government policies
      - Mergers and acquisitions elsewhere in the market
      - Shifts in local, national and international politics
    - - New product/service innovations
      - Appointment of new senior managers or a new management team
      - Inadequate skills and knowledge, requiring retraining
      - Low performance, low morale, high stress, or high staff turnover
      - Office/factory relocation, closer to suppliers/customers
- - - - Organizational Structure:
        
        Changing divisions/units breaks old patterns
        
        Helps move beyond personality-based structures
        
        Can overcome resistance from legacy systems
      - Systems & Procedures:
        
        Daily routines strongly shape culture
        
        Must align operational processes with desired new norms
        
        Highly visible changes demonstrate cultural shift
      - Rites & Rituals:
        
        Regular ceremonies/rituals embed values
        
        New traditions (like service awards) reinforce priorities
        
        Must clearly connect to cultural goals
      - Physical Space Design:
        
        Office layouts communicate cultural values
        
        Open vs private spaces signal collaboration expectations
        
        Requires intentional management to be effective
      - Organizational Stories:
        
        Historical narratives preserve lessons
        
        Can inspire but may become distorted over time
        
        Need curation to maintain intended messages