keys to successful culture change - john f. kennedy...

Culture Change 1

Keys to Successful Culture Change

by

Darla McDougall

Submitted in partial fulfillment of the requirements for the Degree of

Master of Arts

in

Organizational Psychology

at

John F. Kennedy University

August 25, 2009

Approved:

_____________________________________ ______________

Advisor/Research Coordinator Date

_____________________________________ ______________

Second Reader Date

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Table of Contents

Introduction……………………………………………………………………………….3

Literature Review…………………………………………………………………………5

Methodology……………………………………………………………………………..12

Results……………………………………………………………………………………20

Discussion………………………………………………………………………………..46

Bibliography……………………………………………………………………………..56

Appendix A - Invite……………………………………………………………………...58

Appendix B – Consent Form…………………………………………………………….59

Appendix C - Questions…………………………………………………………………60

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INTRODUCTION

Beginning in the 1990’s, the United States business environment changed from a

largely internal national playground to a global market and global environment. This

expansion was facilitated by advances in technology. It paved the way for large scale

changes in the primary nature of US industry. As labor markets and economies have

broadened, companies in the 21st century must be more competitive and strategic to

survive. Successful competitiveness is primarily associated with driving change and

being adaptable to an ever changing business environment. (Senge, 1999, Kotter, 1996,

Cameron & Quinn, 2006)

The tipping point for most companies is the ability to create a culture which

supports the desired strategy for competitive success. Most current executives understand

the impact of culture. In fact, as outlined by Rogers and Meehan (2007), “Bain &

Company research found that nearly 70 percent of business leaders agree: culture

provides the greatest source of competitive advantage.” (pg. 254) However, the same

research also found that less than 10 percent of companies are successful at creating the

desired culture.

The challenge for many companies has been the need to transform their culture

from its current state to a culture which embraces very different ways of thinking. The

definition of culture itself precludes significant change in a quick and dirty fashion or

timeframe. By the same token, hundreds of books and training courses have been

developed to provide leader and management skills for managing change, and

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specifically, culture change. Most companies today have attempted some level of culture

change, yet long term sustainability seems elusive. (Kotter, 1995, 1996)

The purpose of this study was to identify the key strategies/steps which companies

have taken to implement successful culture changes. The grounded theory approach

identified best practices from specific companies through representative interviews.

These practices were then compared and contrasted with relevant published material on

culture change. This research identified an approach to organizational change that

includes a road map of actions that can be taken, methods that can be employed, and

results that can be measured. It should benefit any company that seeks to begin and

sustain an effective culture change.

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LITERATURE REVIEW

Over the past ten to fifteen years, many authors covering current business issues

have focused on the need to respond to the changing business environment. (Senge,

1999, Kotter, 1996, Cameron & Quinn, 2006, McLean, J. 2006) These authors identify

the globalization of the economic world and the dramatic rates of technological change as

the factors impacting companies in the United States. They further stress the reliance of

the future success of the company on the ability to change. Cameron & Quinn (2006)

describe the rate of change as being so “rapid and dramatic…that no organization can

remain the same for long and survive. The current challenge, therefore, is not to

determine whether to change but how to change to increase organizational effectiveness”.

(pg. 9) However, Kotter (1995) and Cameron & Quinn (2006) also note a very low

success rate for organizational change. Cameron & Quinn (2006) identify some of the

change efforts pursued (e.g., total quality management, downsizing and re-engineering),

but ultimately determine the main cause of failure was not embedding the changes into

the organizational culture.

Schein (2004) defines culture as “a pattern of shared basic assumptions that was

learned by a group as it solved its problems of external adaptation and internal

integration, that has worked well enough to be considered valid and, therefore, to be

taught to new members as the correct way to perceive, think, and feel in relation to those

problems” (pg. 17). This was more simply stated by Kennedy and Deal as “the way we

do things around here”. (as cited in Bolman and Deal, 2003, pg. 243)

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Intellectually, today’s leaders understand the impact of organizational culture,

e.g., Rogers and Meehan (2007) identify the “Bain & Company research found that nearly

70 percent of business leaders agree: culture provides the greatest source of competitive

advantage. In fact, more than 80 percent believe an organization lacking a high

performance culture is doomed to mediocrity.” (pg. 254) However, the same research

also found that less than 10 percent of companies are successful at creating the desired

culture. Bain & Company surveyed 365 companies in Europe, Asia and North America.

The goal was to identify links between the company’s positive financial performance and

culture. The research found that each culture is unique to its company and there are

specific high performing behaviors which successful companies demonstrated.

Schein (2004) also describes culture as the values and beliefs of individuals and

organizations, collectively. These “basic assumptions” are virtually unconscious to a

person’s day to day thoughts/actions; they are engrained and almost predisposed, such as

DNA. Consequently, changing culture, per se, can be a monumental task. This basically

means you have to create the desired culture by changing the hearts and minds of the

individuals involved.

Schein (2004) presents a conceptual model to address resistance to change. The

model consists of the following 3 components:

1) Unfreezing – presenting information and/or creating experiences which help

individuals understand the current culture (behaviors/values) is no longer

achieving the desired results

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2) Cognitive Rethinking – this entails learning new ways to deal with day to day

activities and observing similar reinforcing behavior in peers and

organizational leadership

3) Refreezing – continued reinforcement of trial and error learning to create new

“patterns of shared basic assumptions” for solving problems (recall Schein’s

definition of culture)

Given the level of difficulty associated with changing organizational culture,

many authors recommend establishing a framework specifically related to a business

objective to base the change upon. (Schein, 2004, Kotter, 1996, Senge, 1999) For

example, Schein (2004) states “Before one even starts to think about culture, one needs to

(1) have a clear definition of the operational problem or issue that started the change

process and (2) formulate specific new behavioral goals”. (pg.324) Schein (2004)

demonstrated this philosophy when he helped change the culture with the electrical

workers at Alpha Power Company (Con Edison Company) by helping them learn how to

meet new environmental requirements. Or LaGuardia (2008) provides the example of

using employee competencies (skills) as a means of creating dialogue and learning

(reflects Schein’s conceptual model for change). The dialogue emphasizes storytelling as

a key means to reinforcing the desired changes. Stories are developed through a process

of inquiry, engagement and review.

Organizational change does not mean throwing the baby out with the bath water.

Schein (2004), Cameron & Quinn (2006) and Callan (2008) acknowledge the concurrent

need to identify and leverage the positive aspects of the organization’s culture. And, it

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may very well be those aspects which help create the new behaviors. For example, the

strong training culture within the Alpha Power Company aided in the transition to meet

the new requirements. Sopow (2006) also makes the distinction from the core culture

impact to the organizational climate. The climate is defined as the “here and now” and

represents the everyday rules, processes and systems which individuals must live with.

(pg. 14) Climate is influenced by the organization’s culture.

Senge (1999) describes organizational change as “change that combines inner

shifts in people’s values, aspirations and behaviors with outer shifts in processes,

strategies, practices and systems”. (p. 15) Many books and articles have been published

on the recommended interventions to create organizational change. The

recommendations come in many forms, i.e., from high level process theories to detailed

action steps. For example, Wheatley (2008) moves away from the general notion of a

leader led change to one of the emergence of change as a result of practical experiences

which spread from small to large groups. Senge (1999) has a similar perspective in that

the proposal is to start with small pilot groups which then expand to larger parts of the

organization. His approach is based on the notion that individuals must support and

commit to values-based changes rather than merely comply with them. This requires

individual personal values alignment with the organization which a leader cannot control.

Although other authors may emphasize the leadership role more than Wheatley

and Senge, there is agreement on the need to create the culture/values changes in the

hearts and minds of the individuals. A few of the noted authors and their recommended

actions are as follows:

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A. Kotter (1996), one of the current popular authors identifies an eight stage process to

implementing major change:

1) Establishing a sense of urgency

2) Creating the guiding coalition

3) Developing a vision and strategy

4) Communicating the change vision

5) Empowering broad based action

6) Generating short-term wins

7) Consolidating gains and producing more change

8) Anchoring new approaches in the culture – culture as the last step in the

process aligns with Kotter’s perspective that culture change happens after

new behaviors are successful

B. Bossidy and Charan (2002) focus on the discipline of executing to accomplish goals:

1) Leader’s essential behaviors

a. Know your people and your business

b. Insist on realism

c. Set clear goals and priorities

d. Follow through

e. Reward the doers

f. Expand people’s capabilities

g. Know yourself

2) Creating the framework for cultural change – “The basic premise is simple:

cultural change gets real when your aim is execution”. (pg. 86) “We don’t

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think ourselves into a new way of acting, we act ourselves into a new way of

thinking”. (pg. 89)

3) Having the right people in the right place

Other authors identify many similar steps to successful organizational change, e.g.,

creating a vision, setting expectations, focus on leadership, personal accountability,

communication. (Rogers & Meehan, 2007, Unwin, 2007, Klie, 2008, Hoyte &

Greenwood, 2007, Leigh, 2007, Cameron & Quinn, 2006)

In looking for companies which have successfully overcome organizational

change obstacles, a major study by Collins (2001) identifies companies which have stood

out within their industry and moved their organizational performance to the next level

(from good to great). The results of his research identified the following

framework/steps:

1) Level 5 leadership – “a blend of personal humility and professional will” (pg.

13)

2) First who, then what – have the right people on board

3) Confront the brutal facts – foster an environment of open dialogue, yet

maintain hope and a positive attitude for the future

4) Hedgehog concept – know your core business and what you can excel at

5) Culture of discipline – create an environment where self-driven employees

thrive

6) Technology accelerators – be selective, technology in itself is not a driver of

change

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Collins’ framework focuses on similar aspects that Kotter (2002) presents. Kotter,

however, emphasizes the need to reach the hearts of individuals by helping them

understand why the new value/culture is appropriate and committing to them. Kotter

(2002) reiterates the key steps from his earlier publication and includes related examples.

Although Collins (2001) was able to use financial measures over time to

determine successful companies, in the near term, companies develop interim measures to

monitor the progress of organizational change. Most of the authors previously

referenced identify short term wins as a key aspect of continuing change efforts. (Schein,

2004, Senge, 1999, Kotter, 1996, Kotter, 2002) These can either be financial, such as

return on investment, or procedural/process as the company determines the priority

goals/successes.

In summary, the literature has defined culture and the required steps to implement

organizational change. However, as also indicated, many companies fail at either initial

implementation or sustaining a change environment post implementation.

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METHODOLOGY

The phenomena of companies which have successfully implemented

organizational culture change were studied from a grounded theory approach, a

qualitative method of research (Creswell, 2003). This method was appropriate for this

study which focused on gaining an understanding of the subjective experience of the

Human Resources employees who were involved with the change. Grounded theory

allowed the researcher structural flexibility to obtain additional data or clarification as

new ideas, concepts, and themes emerged (Creswell, 2003).

Sample

The sample consisted of six representatives from companies which have

successfully completed a culture change prior to the study. The criteria for the

participants included: they must have been a manager level at a company which

employed at least 1,000 employees. Participants were sought through organizational

and/or business contacts/associations. The researcher confirmed that each individual met

the criteria for the study and placed those who did on a selection list. Those who did not

meet the criteria were advised accordingly and thanked for their consideration.

Data Collection

The qualitative research design consisted of a formal semi-structured interview

process, in which the researcher asked six selected participants to answer certain pre-

defined questions, along with follow-up and clarifying questions that arose as the

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information from the participant unfolded. The interview was modified as it was

delivered, to fit the participant’s unique experiences.

Interviews

Participants were interviewed individually. Each interview was recorded in its

entirety, with the permission of the participant, and it was transcribed by the researcher.

The researcher reviewed the data, developed codes, and defined emerging themes and

relevant categories. Data was compared and contrasted and conclusions were drawn.

Each participant was interviewed once, with follow up phone calls for

clarification or expansion of a thought or view expressed by the participant. All

questions were open-ended and were asked in a non-leading, neutral manner that allowed

the participants to express themselves in their own words. Participant questions are listed

below.

Interview Questions

In the interviews, the participants were asked to describe their experience with

implementing the culture change, as well as how they knew the change was successful.

The participants were asked to give examples that demonstrate the steps they took and

what activities had the most impact. The research was open to all possibilities in order to

discover the participant’s perspective of changing organizational culture.

The interview questions are listed below. Additional questions were asked,

depending on the interviewee’s own story and responses.

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1. Tell me about your experience with the culture change in your organization.

(reference the specific culture change for their organization)

2. What was the reason for the change?

3. In what way were you involved in the change?

4. What was the strategy? How was it carried out?

5. Was the change successful? How do you know?

6. How did the organization determine their measures of success and why?

7. How long did it take to make the change and how long has it been since it would

be considered completed?

8. Has the culture change been sustained since it was completed? If so, what

process/steps were implemented to ensure sustainability? If not, what is the

organization’s plan to address the issue?

9. Were these steps planned as a part of the change or did they just manifest

themselves?

10. What areas took priority during this culture change, which did you emphasize, and

why?

11. What were the major keys to the organization’s success?

12. What role did leadership play? What style of leadership was prevalent?

13. What appeared to be the biggest surprise during the process and why?

14. What appeared to be the biggest obstacle to success and how did you overcome it?

15. Looking back, what do you believe could have been done differently? And, how?

16. What advice would you give to an organization planning a culture change?

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17. Were there fundamental changes in HR systems/processes, e.g., rewards and

recognition, training or hiring? Any other systems/processes?

Each interview was recorded and transcribed by the researcher. Field notes were

recorded at the end of each interview.

Site

The site for this study was by telephone with the participant and the researcher in

their respective offices.

Data Analysis

This is an exploratory study. Data from interview transcriptions and field notes

were categorized and coded. Interviews were transcribed and field notes maintained. The

researcher paid particular attention to patterns that developed, and applied additional

codes and categories accordingly, when applicable.

To commence, three interviews were conducted. They were then analyzed to

discover whether or not additional questions were necessary to improve the data and to

determine what questions should be added or revised for the remaining three

interviewees. The later interviewees were presented the same set of questions as the first

three as no change in questions or methodology was determined to be necessary.

Each interview was analyzed separately. Upon completion of all six interviews,

the data was cross-analyzed. Similarities and differences were noted. Patterns were

coded (using open coding) to identify common themes. When information was in

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response to probing questions outside the standard questions, the researcher indicated that

in the analysis.

Participant Introduction to Project/Invitation to Participate

Participants were selected from the list of interested individuals who met the

criteria during the confirmation process. Participants were invited to participate in the

study via email invitation:

1. After identifying the potential list of participants, an individual email was sent

to each potential participant (see Appendix A). Candidates were invited to respond to me

directly, via email or telephone, if they chose to participate.

2. Participants who responded affirmatively to the invitation to participate were

contacted by the researcher directly, via phone or email, to confirm that they met the

criteria for participants, and if so, to schedule an interview date, time, and location. For

the phone interviews, the researcher confirmed the preferred phone number where the

participant could be reached.

Informed Consent

Human participants were protected in accordance with the ethical standards taken

from the APA Code of Conduct (1992). A consent form (see Appendix B) emphasizing

confidentiality was forwarded to the participant for their review, prior to the scheduled

date of the interview and was discussed in detail prior to the interview. The consent form

included a clause explaining that participation in the study was voluntary and that

participants were free to change their mind at any time, even after signing and submitting

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the consent form. The form confirmed that the information provided during participation

in the study would be confidential and anonymous.

Participants interviewed by phone were asked to sign and submit the consent

form, via confidential fax, prior to the scheduled date of the interview. The researcher

verified that the participant understood the documents and the process. Participants were

given time to read and sign the consent forms. The researcher assigned participant

numbers to each participant to insure confidentiality and anonymity. All coded notes and

participant identifications remain anonymous.

Data is stored in a secured, confidential location, accessible only by the researcher

and a third-party subscriber. All data and notes have been kept in a locked cabinet in the

researcher’s home office for the duration of the research process. All tapes of interviews

will be destroyed upon completion of the final paper.

Debriefing Procedures

At the conclusion of the study, individual participants were given the opportunity

to debrief with the researcher. Each participant was given time at the end of their

interview session to ask questions or express any concerns they had at the time. The

researcher responded to their questions and concerns at that time. If, at any time after the

interview, session participants wished to address any outstanding issues or questions

regarding the interview or final report, they were invited to call or email the researcher

directly to schedule a follow up session. A summary of findings will be made available

to them, upon request.

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Participants were invited to contact the JFK University Project Advisor if they had

questions or requests for additional information regarding this study and the interview

process:

Sharon Mulgrew, M.P.H. – Organizational Psychology Research Coordinator/JFK

University

Email: [email protected] Telephone: 510-450-0378

Researcher Bias

The researcher conducting this study had a bias toward believing there are

successful ways to implement a culture change. The researcher is herself, a participant in

her Company’s culture change effort. The researcher recognized that it was in her best

interest to remain neutral in order to learn more from other perspectives and remained

open to all data as it was presented. Due to the criteria of the research method, bias

awareness was particularly important, and an awareness of that bias was maintained by

the researcher.

The researcher’s intent was to be as accurate as possible and without bias;

however, some incorrect assumptions, conclusions or findings are possible. The

researcher’s specific culture change work experience and personal traits could be a source

of bias; however, the researcher used the structured interview methodology to minimize

this potential. In addition, three of the study participants are within the same industry as

the researcher’s company and could be a source of industry influenced bias.

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Limitations

The findings of this study are tentative. The sample size and procedures for

participant selection were appropriate for qualitative research. They are not, however,

due to the small scope of this study, able to support generalization to a larger population

of successful companies without additional research.

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RESULTS

Purpose and Method of Research


have taken to implement successful culture changes. The research was conducted using a

qualitative grounded theory approach. Six participants were interviewed, all of whom

had knowledge of the activities their organization completed to effect the culture change.

Summary of Participants

Participant Position Type of Company

P1 Manager Utility

P2 Manager Utility

P3 Manager Utility

P4 Vice President Cleaning Products

P5 Controller Pharmaceutical

P6 Manager Technology

Individual and Summary Responses

The interviews were conducted using 17 standard questions. However, rather than

summarize on a question by question basis, the responses were consolidated by

participant using a case study approach to better reflect the integrated nature of the

answers. The case studies are presented individually below with a summary following

afterward.

Interviewee Code 10 – Participant 1

Participant 1 initiated a deliberate organizational culture change effort in 1996. The

effort was to prepare for a competitive market. Participant 1 engaged an external

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consulting firm to help develop and implement a strategy to change the mindset of the

employees to thinking and operating in a more competitive manner.

The change effort was branded and communicated as STAR 7 – Strategic

Teamwork for Actionable Results. The 7 stood for the 7 values of the Company.

The change effort consisted of the following key activities:

1. Training

a. Phase I (1997-1999)

i. All employees attended two and a half days of training with their

home group team

ii. The training was positioned to demonstrate the leadership support

and corresponding investment in its employees

iii. The executives were present during various portions of the training

to emphasize the importance of the changes required

iv. Videos shown as a part of the training provided the burning

platform for change, i.e., 3 videos – 1 current state, 1 employees

losing employment as a competitor takes over and 1

employees/Company taking steps to change and be competitive

v. Teams developed action items to work on post training

vi. Cross-functional teams gained a better understanding of the work

vii. Posters reinforcing training concepts were displayed throughout the

Company

viii. Employees completed post training surveys which created the

groundwork for the development of a culture health index

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b. Phase 2 (2000-2001)

i. Internally designed training for supervisors and managers to

introduce scorecard performance and reinforce leadership roles

ii. Business drivers and required results provided increased business

understanding

c. Phase 3 (2002-2004)

i. Internally designed half day training for all employees to

remind/reinforce original concepts

d. Phase 4 (2005-2007)

i. Internally designed half day training for all employees to

remind/reinforce original concepts (STAR 7 re-focus)

2. Leadership

a. Clear, straight forward messaging about direction and expected employee

support

b. Continued support after change in CEO

3. Structure

a. No major structural changes were made to support the effort

4. Measuring Results

a. Post training survey

b. Culture Health Index – annual survey

c. Winning Performance – Year end performance payout

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5. Communication

a. Consistent messaging in newsletters, staff meetings, etc.

b. Common language and understanding

6. Human Resource Systems/Processes

a. Created core competencies based on behaviors supporting the values

b. New Employee Orientation – integration of STAR 7 philosophy

c. Instituted pay for performance related to performance measures

d. Initiated reward and recognition programs, e.g., spot awards – small value

gift cards to immediately acknowledge positive behavior

Keys to success

Fully engaged, top down support

Training as a major factor in driving change and engaging employees

Continued reinforcement via training and local activities

Leadership alignment

Used branding and values based approach

Organizational culture survey to measure success

Knowing change is a process and it’s never complete

Updated HR systems/processes to reinforce changes

Analyses or Themes

Planned strategy

External consultant as initial support; used their program/model

Executive alignment and support for the values and program

Total Company approach and unlimited budget

Communicated competitive environment and Company vision to stay in business

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Leadership open and honest communication; direct “if you’re not willing to get on the

bus, then go find someplace else to work”; straightforward about the writing on the

wall

Consistent communication and education were strong reinforcement over the years

All employees attended same initial training as part of the program

Activities to unfreeze current employee mindsets around competition and need to

look at work differently

Organizational culture survey results improved over time and were associated with

organizational performance


Participant 2 initiated an organizational culture change effort in 2004. The effort

was to move the organization from a command and control process to a more flexible

leadership style which moved decision-making to lower levels and increased overall

responsiveness. The change was initiated by the new chairman as a move to better equip

the company for success in the current and future business environment.

The change effort was branded and communicated as the Winning Culture and the

Participant 2 IDEAL – Inspired Leadership, Disciplined Performance Management,

Engaged Employees, Accountability and Loyalty.


1. Training

a. Supervisor and Mid-Manager Level

i. All employees attend various courses which support the Participant

2 IDEAL, e.g., coaching and crucial conversations. Courses are

geared toward managing performance and accountability

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b. All Employees

i. Winning Culture Course – further explains the supporting structure

and the Participant 2 IDEAL employee engagement efforts

c. Winning Culture Council and IDEAL Partner Teams

i. Training to increase the internal teams’ abilities to understand

culture drivers and how to be more effective

2. Leadership

a. Created Vice President position to demonstrate level of support for the

culture change effort

b. Established an internal cross-functional structure

c. Implemented employee review and 6 month turnaround expectation

d. Getting the right leaders in the right positions

3. Structure

a. Established the Winning Culture Council (Council)

i. Led by Winning Culture Manager (prior VP position)

ii. Cross-functional members represent and serve as liaisons to the

departmental IDEAL Partner teams

iii. Liaisons normally represent other lines of business rather than their

own to increase integration of business/cultural understanding

iv. Approximately 2 year term

v. Representatives include employees appointed by the Union

vi. Overall function is to oversee and ensure continuation of employee

engagement as a driver of culture change and business success

1. Provide feedback for change management processes

2. Experience and integrate training to further the culture

change effort

b. Established the IDEAL Partner Teams

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i. Departmental local level support

ii. Includes a sponsor and facilitator to lead the team

iii. Participants are staff level volunteers representing both

management and union employees

iv. Address local culture related issues to improve employee

engagement and inclusion


a. Organizational Health Survey – annual survey

5. Communication

a. Consistent messaging in newsletters, staff meetings, etc.


a. New Employee Orientation – introduction of Participant 2 IDEAL

philosophy

b. Instituted pay for performance related to business results

c. 360 Feedback for mid-managers

d. Performance appraisals focused on IDEAL values

e. Increased the level of testing and criteria to meet hiring requirements

Keys to success


Internal structure as continued reinforcement and employee engagement


Used branding and values based approach

Organizational health survey to measure success

Training as a foundation

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Knowing change is a process and it’s never complete


Analyses or Themes

Planned strategy

Executive alignment and support around values and change required

Staff driven ideas and efforts to ensure commitment

Local leadership sponsors to facilitate partner team decision-making

Structure to establish employee engagement – union and management

Council oversight to provide/ensure culture is addressed, i.e., continuous

improvement

Organizational Health Survey serves as driver to identify areas for improvement

Set stage with employee downsizing, internal assessments to highlight new

expectations and performance reviews with specific timeline to improve

Performance management and hiring practices are aligned with values


Participant 3 initiated an organizational culture change effort in 1994. The effort was to

immediately deal with the issue of the company being placed on the regulatory

commission’s problem plant list. The change was initiated with replacement of members

of senior management and a variety of other leaders in lower levels of the organization.

The new leadership approached the change from a more organic perspective in the

beginning stages. First, an external leadership course was brought in to begin the culture

change. Second, with the new management style, core values were identified and defined

Culture Change 28

as the new expected behaviors, e.g., operating from a teamwork perspective. These two

activities were the foundation of the change.


1. Training

a. Supervisor/team lead and above

i. All employees attend Facilitative Leadership (FL) – foundational

course of leadership by employee participation

ii. Annual leadership refresher to support culture

b. All Employees

i. Internal training designed to reinforce FL concepts

ii. External course Crucial Conversations to build upon FL

c. Leadership Training Advisory Committee

i. Evaluates training and identifies current needs

2. Leadership

a. Senior leadership changes to clearly demonstrate organizational change

b. Direct communication of need for change and burning platform situation

c. Clear expectation of “We team” concept (teamwork)

d. Introduced facilitative leadership as the guiding model

e. Facilitated the FL training to demonstrate support and participation

f. Identified initial list of core values based on transformational success;

current list honed to 4 values – Safety, Integrity, Teamwork and

Excellence

3. Structure

a. No major structural changes were made to support the effort


a. Culture Survey – bi-annual

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b. External assessments of leadership, culture, etc.; ad hoc as necessary

c. Regulatory agency oversight creates additional standard

5. Communication

a. Consistent messaging in newsletters, on-site video screens, etc.


a. Developed and implemented Values in Action course

b. Instituted pay for performance related to core values

c. Leadership Assessment Tool – bi-annual; comparable 360 feedback tool

d. Increased the level of testing and criteria to meet hiring requirements

Keys to success


Leveraged variety of measures of success


Continuous reinforcement and effort, i.e., perseverance

Always striving to close the gap to excellence; never really arrive


Focused on participative leadership styles to model values

Analyses or Themes

No planned strategy – organically developed

Followed “Leading Change” model by John Kotter

Executive alignment and support

Leadership as key messengers, e.g., facilitating the FL training, supporting the We

team concept in meetings

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Engaged middle managers as key change agents for the future

Communication leveraged various forms of media

Various measures to identify areas for improvement (culture survey, industry

benchmarking, etc.)

Continuous improvement in both the culture surveys and the organization


Participant 4 initiated and implemented a redesign of their Human Resources

organization in 2008. This created the need to change the culture from an organization

operating in a silo-by-function manner to a more holistic, customer solutions approach.

The goal was to improve internal customer service and the cost effectiveness of the

organization.

The entire effort was mainly designed and implemented with key staff level

employees and leaders.


1. Training

a. No training was provided/required to support the redesign

b. Post redesign employee transition training

2. Leadership

a. Provided overarching principles and design parameters

b. Provided coaching to design team/participants to stay on track

3. Structure

a. Leadership oversight team

b. Design team consisting of internal HR stakeholders, e.g., employees

currently doing functions impacted

Culture Change 31


a. Leadership informal “coffee talks” – focus groups to identify/address

issues/concerns

b. Organizational culture survey to be issued Summer, 2009

5. Communication

a. Consistent and continuous updates on project progress and opportunities

for questions and answers


a. Job descriptions, objectives and the performance management criteria

were updated to reflect the change in roles

b. Hiring and compensation criteria were realigned with the new roles

c. A variety of different venues for reward and recognition were used to

acknowledge employee efforts, e.g., lunches, parties, cash awards, etc.

d. Developed and followed a change management plan

e. Will be reviewing and updating other HR systems, e.g., talent

management.

Keys to success


Driving for business results: improve efficiency and effectiveness

Leadership alignment as key coaches and support

Employee engagement and support must be maintained

Over communication and transparency regarding activities

Change design to change culture


Analyses or Themes

Culture Change 32

Planned strategy

Leadership alignment and support

Provided guidelines, held fast to them and coached to achieve desired results

Over communication as a goal and driver

Included impacted employees in the process; best and brightest employees

Employees have the best perspective to design change

Listened and addressed employee concerns and fears

Recognized and rewarded participants on a frequent and recurring basis


Participant 5 was initially acquired by a large pharmaceutical company

(hereinafter referred to as Parent). During Participant 5’s tenure as a subsidiary, there

was a continuous struggle between the Parent culture and the culture needed to ensure

Participant 5’s continued success – as measured by developing new products and

increasing sales.

This interview covers the struggle for Participant 5 to operate within the large

Parent hierarchy/bureaucracy. Participant 5 ultimately spun itself off and operates

independently today.


1. Training

a. Only in regard to need to know information around Parent

systems/processes

2. Leadership

Culture Change 33

a. Parent separated Participant 5 functions and centralized with Parent

operations

b. Parent leadership command and control; hierarchical/bureaucratic

c. Participant 5 business and product driven

d. Participant 5 leadership demonstrated teamwork and continually focused

on overarching business goals

e. Participant 5 continued to push the envelope regarding Parent

processes/procedures

3. Structure

a. Participant 5 was a subsidiary of the Parent

b. Participant 5 functions reported to out of state Parent leadership

c. After product successes, Participant 5 gained Parent support to return

portions of direct reporting structure


a. New product development and sales increases

b. Developed pro forma financials to emulate independent business

5. Communication

a. Local leadership support by demonstrating core values, e.g., senior

leadership sits in open desk on same floor with other employees


a. Performance management rewards creativity and innovation whether or

not the final result is successful

b. Human Resources must be flexible and willing to address issues

differently

Keys to success

Fully engaged employees at the subsidiary level

Culture Change 34

Leadership alignment in living and demonstrating the core values

Decision-making based on added value to business

Looked at issues holistically and from long-term perspective

Recognized and rewarded employees based on demonstrating core values

Change is never complete

Analyses or Themes

Leadership alignment and support

Demonstrated core values

Employees passionate about their work will help organization succeed

Need to know the organizational values to define mission and goals

Intention was not to buck trends, but to improve effectiveness

Questioned processes/procedures; eliminated non-value added items

Rewarded innovativeness


Participant 6 initiated and implemented a redesign and process improvement

project within their workplace resources group. This created the need to change the

culture from an organization operating in a silo, tactical manner to a more strategic, cost

effective approach. The goals were to identify the core business processes which were

most appropriately supported internally and also identify the work either no longer

needed or most appropriately outsourced to a third party. The redesigned organization

would be tooled to improve both execution of, and accountability for, defined business

results.

Culture Change 35

The entire effort was designed and implemented with key staff level employees

and leaders.


1. Training

a. Impacted employees – new roles using personas

b. Impacted employees – new end to end processes

2. Leadership

a. Vision of future organization

b. Senior leadership support to ensure completion

c. To be held accountable for results

d. Varied in their ability to think strategically versus tactically

e. In some cases, outreach went to lower level leaders to carry the change

torch

3. Structure

a. Project team established to support

b. Focused on identifying and defining the required work and the

roles/positions to perform it


a. Employees are engaged in their new roles and believe the change will

continue

b. Some employees now looking for better “fit” positions

c. Team beginning gap analysis

5. Communication

a. Consistent messaging in staff meetings, newsletters, websites, etc.

b. Confidentiality limited depth of information provided

Culture Change 36


a. All positions were defined and job descriptions completed

b. Performance management more robust and effective, i.e., increased level of

accountability

c. Change agents rewarded

Keys to success

Top down leadership support

Planned and executed on business goals

Focused on identifying and defining the required work first, and then the

roles/positions to perform it

Defined and established metrics to measure business results

Developed the structure to support increased accountability

Update HR systems/processes to support changes

Analyses or Themes

Leadership support

Needed more robust change management plan

Identified and leveraged change agents

Established clear job descriptions and expectations

Leadership shortfalls required external benchmarking

Worked with HR to improve performance management process and new

organizations

Culture Change 37

Summary

The following summary is presented and discussed in terms of the major activities

or themes across the participants.

1) Approaches to creating the changes varied from Planned to Organic

Four of the six participants (P1, P2, P4, P6) created deliberate up-front

plans and activities to implement. These were a combination of external and

internal consultants based on what appeared to be the magnitude of the change

effort, i.e., number of employees/processes impacted. For example, P1 wanted a

transformational change (new way of thinking about how to get the work done) of

16,000 employees with varying demographic backgrounds and, consequently,

worked with an external consultant’s design and program to initiate the change.

Internal resources, such as employee teams, were used when the changes were

within small groups of 200-300 employees. This fit the models for P4 and P6

who were reorganizing internal functions/departments.

Of the remaining 2 participants, P3 grew their activities as a result of

leadership changes, i.e., executive level changes were made to demonstrate new

desired behaviors (e.g., participatory management rather than command and

control). This led to identifying a model which was used to initiate the change

effort across the organization’s leadership. The model was a third party vendor

training course on facilitative leadership.

Beyond this initial training, the organization followed a mainstream

management guru, John Kotter, to identify best next steps for an overall approach

to the change effort. (e.g., Kotter (1996) suggests an 8 step process to implement

Culture Change 38

and sustain organizational change.) P3 also leveraged knowledge about

organizational change from best practices identified by a consortium of company

representatives across their industry.

P5 did not “plan” for change, but used their fundamental beliefs to drive

business results and effect change. For example, while P5 did not take deliberate

steps to initiate a change effort, they were making daily business decisions based

on their values which ultimately resulted in changes in how they operated.

2) Leadership support was a critical factor in making necessary changes.

For 4 of the 6 participants (P1, P2, P3, P6), “support” was a top down

emphasis and expectation to embrace the changes. This message was delivered in

a number of dramatic ways, e.g., P1 created videos to portray concerns about

market competition while the P3 CEO delivered a “burning platform” speech and

the need for action. These messages were intended to educate and engage

employees in a common vision and desire for change.

For P4, “support”, as an internally designed effort, took the form of

providing the vision, setting the parameters and coaching the employee team to

achieve the desired results. And for P5, “support” was demonstrated daily with

employee interactions and leading by example rather than an explicit call out for

activities.

3 of the 6 participants (P1, P2, P3) wrapped the top down support in an

overall brand and focus on core values. So, in addition to communicating the

reasons for change, leadership created the branding and core values roll-outs to

enable processes to:

Culture Change 39

a) lay the groundwork for an all for one/one for all approach (big

bang and common vision)

b) develop and provide tools which reinforced a common language

c) demonstrate alignment within the leadership

d) focus on becoming a values-based organization

e) drive accountability in everyday actions

These processes, once initiated, were carried forward with employee participation

and continued reinforcement or training.

The remaining 3 participants (P4, P5, P6) were engaged in smaller internal

organizational changes. Consequently, their efforts were more directly focused on

specific activities which furthered the changes required while identifying values as

the foundational requirement.

3) Training and reinforcement activities developed culture change sustainability.

The larger, more formalized programs which 3 of the participants (P1, P2,

P3) initiated, established specific training and reinforcement efforts. The largest

of the 3, P1, implemented the external consultant program which included training

the entire organization. Employees were certified to facilitate the training and, as

a result, helped generate enthusiasm and support. The training was designed to be

the first step in changing employee mindsets around the nature of their jobs, the

company and the way to improve business results. P1 then moved the training

design and development internally to continue reinforcement and refreshment of

the values. For example, beyond the initial external vendor training, P1’s

internally developed training program continued to review the original concepts

Culture Change 40

and desired behaviors over another seven year period. Employees were

continuously asked to examine their behaviors and how they were getting the

work done.

P2 developed and formalized training on their brand and values as a part

of their internal training program. P2 also provided training to Council and

partner team members to help them understand their roles and how to gain the

most from their teams.

P3 used an externally provided course as the model for their approach.

The training was facilitated by internal employees in leadership roles and

delivered to all employees in leadership roles. Although the P3 effort was not an

originally planned process, the internal training facilitation demonstrated

leadership commitment and, therefore, furthered employee commitment. In

addition, a few of the Manager level leaders facilitating the training almost 10

years ago are now Officers in the organization. P3 continued to refresh and

expand the impact of its training. For example, learning from the initial training

roll-out, the next phase of training was provided to all levels in the organization.

This provided all employees with the common language and integrated the

concepts into daily work.

All 3 participants established training programs which initiated, continued

and furthered the progress toward the desired culture change.

P4 and P6 provided training specific to the roles and responsibility

changes resulting from their reorganizations. The training was more related to

their change management process rather than an instituted formal course.

Culture Change 41

P5 did not provide formal training as they were dealing with engaged

employees on a daily basis.

All participants specifically stated the change effort is a process and it is

never really completed. It’s critical to have on-going reinforcement and role

models as continuous support.

4) Structural changes in the organization supported the change effort.

4 of the 6 participants (P2, P4, P5, P6) designed and implemented

structural changes in their organizations to support the effort. P2 established an

internal Council to oversee the culture change as an on-going process. The

Council members acted as liaisons to partner teams throughout the company to

engage employees in improving the work environment. The partner teams

addressed local culture issues and were composed of both management and union

represented employees. This structure has been a major part of their

reinforcement and continuous improvement.

P5 recommended and made changes as it made sense to support business

decisions, i.e., it was not planned. P4 and P6 implemented structure changes as a

part of their reorganization, i.e., it was the change.

P1 and P3 did not make any structure changes as a part of the culture

effort.

5) Measuring results provided a means to gauge culture change progress.

4 of the 6 participants (P1, P2, P3, P4) incorporate surveys to measure the

health of their organization, i.e., how is the culture in the company? The data is

used to identify areas for improvement and the survey questions have been

Culture Change 42

updated over time to better address particular areas. All 4 participants have

historical data demonstrating continued improvement. P1 has also found that

departments with positive cultures have higher performance and business results

70% of the time. P2 works with the Council and partner teams to address the

findings while P3 utilizes their leadership training advisory committee to identify

areas where training is a probable part of the solution. Although P1 was the only

one to directly associate the culture survey scores with functional business

performance (e.g., departments with high culture scores also had high

performance scores), the remaining participants attributed their improved business

results to their culture survey process and associated efforts.

P4 has an instituted culture survey, but it had not been issued since the

reorganization (it was scheduled for later in 2009). P4 did hold meetings for

employees to meet with the leadership team to address concerns regarding the

reorganization.

Neither P5 nor P6 had instituted a culture survey. P5 drove for business

results based on their values. Their day to day decisions and activities resulted in

continuous new product development and sales. Their culture was exhibited

everyday (e.g., all employees sat in a cubicle environment, any employee met with

the President to present ideas, casual working environment, etc.)

P6 will be formulating a survey specific to their reorganization, (e.g., how

employees feel it went, what worked, what didn’t) toward the end of the summer,

2009. Current feedback has been made directly and is positive.

Culture Change 43

6) Open and honest communication was a critical factor in supporting the change

effort.

The participants (P1, P2) who had more formal planned culture change

efforts leveraged the common language, branding and training to reinforce using

the concepts in everyday exchanges. This effort was also measured in their

culture surveys, e.g., questions specifically asked whether the language was being

used in their work groups.

P3 developed their own culture change process; however, they

implemented similar messaging using a variety of media, e.g., TV screens at plant

facilities included concept reminders. P4, as they were completing an internal

reorganization, set a goal of over communicating to ensure transparency around

decision-making and the change process. P5, relied on daily interaction with

employees and leadership to demonstrate the behaviors they valued.

P6, another internal reorganization effort, communicated activities at a

limited level during various staff meetings. They maintained a level of

confidentiality regarding the process and acknowledged this was an area they

should have been more transparent with. Lack of understanding, especially with

job changes, created more stress with employees and, increased the level of effort

required to complete the process.

7) Changes in Human Resources System/Process (HRS) increased the opportunity

for successful culture change.

All the participants either enhanced or developed major aspects of their

HRS. Most changes included the following:

Culture Change 44

a) Aligning employee performance management with values and business

results, e.g., P1 created core competencies based on behaviors

supporting the values

b) Increased accountability associated with better defined roles and

responsibilities

c) Increased level of testing and criteria to meet hiring requirements

d) Initiated reward and recognition programs and/or rewarding specific

efforts associated with the reorganization projects

Other aspects included updates to New Employee Orientation training to

incorporate the branding and values (P1, P2, P3) and Pay for Performance

programs which rewarded achievement of business goals (P1, P2, P3).

Overall, the actions/steps the participants took to implement their culture

change efforts did not vary dramatically. The main differences were more related

to how well the company values and desired behaviors were integrated into the

normal routine of the business, i.e., the level of defined activities each company

took ranged from almost nothing with P5 to a full scale multi-year program with

P1.

In addition, the key success factors did not vary drastically either. As

discussed previously, the general themes of the research included planned versus

organic approaches, leadership support, training and reinforcement activities,

structural changes, measuring results and communication.

Culture Change 45

These themes have been summarized into the following key success

factors:

A. Common vision and values for the company/organization

B. Fully engaged, leadership support and alignment around the values

and goals

C. Employee engagement to ensure change

D. Specific measures to gauge progress

E. Continuous reinforcement

F. Knowing the effort is never completed

Culture Change 46

DISCUSSION


have taken to implement successful culture changes. This research identified several

culture change success factors: the importance of a common vision and stated values; the

involvement of both leadership and employees; the need to measure results to track

progress; and the required follow-through for continuous reinforcement and

improvement.

In the majority of cases, the research results paralleled the literature review

findings. These similarities or differences are presented within the key success factors.

A Key Success Factor: Develop and communicate a common vision and values for the

company/organization

All the participants developed and communicated a common vision and values for

the company to their employees. This is in direct alignment with the literature review and

many authors’ recommended steps. (Rogers & Meehan, 2007, Unwin, 2007, Kotter,

1996, Schein, 2004, Hoyte & Greenwood, 2007, Leigh, 2007) Communicating a

common vision helped identify and drive the need for culture change. In many instances,

the intention was to create a sense of urgency (Kotter, 1996) for employees so they would

understand the implications of NOT changing. In those cases, the company identified the

pitfalls of not following the vision.

Participants engaging in larger organizational efforts leveraged the opportunity to

create a brand which provided immediate, recognizable language. The values became the

Culture Change 47

foundation of the change process. Together, the brand and the values established

common language which served as the mantra to help employees understand and embrace

the changes necessary.

Schein (2004) identified the three levels of culture as artifacts (i.e., the most

visible/apparent aspects of a culture, what you see/hear), espoused values, and underlying

assumptions. Establishing a brand and organizational values introduced new artifacts

(e.g., posters and common terminology) and espoused values for the participants to

embrace. Aligning these with the new vision helped design the roadmap to accomplish

the changes communicated.

Although other participants did not develop a brand as such, the common vision

served as the guidance for their decision-making.

A Key Success Factor: Ensure top-down leadership support

In all cases, participants identified leadership support as the major contributor to

their success. Leadership support was demonstrated in similar fashion with all the

participants, i.e., executives initiated the effort, then broadened the expectation to all

levels of leadership in the organization. The variation was more in the level of effort due

to the size of the audience or the degree of change required. As indicated by many

authors (Schein, 2004, Kotter, 1996, Bossidy and Charan, 2002, Collins, 2001), effective

leadership can make or break a successful culture change.

For most participants, the first leadership step was to develop an overall plan and

strategy to address the culture change. Interestingly enough, plans are usually developed

and identify actions in a linear fashion, yet many of the activities and results beyond the

Culture Change 48

initial kick-off either overlap or happen concurrently. These plans served as the

roadmaps for maintaining and sustaining the efforts. For the larger-sized participants, the

plans encompassed the high level branding and values based approach while for smaller-

sized participants the plans were more detailed to the specific business issue at the local

level.

Second, the participant leaders, such as the CEOs, took steps to gain everyone’s

commitment to change. In many instances this involved: (1) creating a burning platform

that made the status quo seem more dangerous than launching into the unknown, (2)

making it clear that “the way we do things around here” is no longer acceptable and/or (3)

making changes to the top team where appropriate. These steps were also paramount to

creating a strong and united leadership team which could drive the message across the

organization. Kotter (1996), in particular, highlights similar activities to establish a

“sense of urgency” and create a “guiding coalition” to support the change effort.

The third, and most critical leadership step, was to become involved in the process and

role model the desired behaviors. Senior participant leaders attended and spoke during a

variety of venues, e.g., training sessions or all employee meetings. Participant leadership

role modeling, by design, was predicated on the current state of their organization, i.e.,

organizations already living and leading their values were a result of their leaders’

behaviors versus organizations seeking change required more deliberate leadership

activities to demonstrate “walking the talk”. Collins (2001) confirmed the need for

leadership which was genuine and transparent about the direction of the organization and

the steps required to get there.

Culture Change 49

A Key Success Factor: Engage employees at all levels

In addition to common vision and values as a foundation, 4 of the 6 participants

created/changed internal structures in order to engage employees as part of their

implementation strategy. Two examples include the following:

1. A larger change effort participant established an internal structure as an on-going

employee involvement process. This structure was deliberately made up of

employees representing the local population, e.g. management and union

represented employees. Local sponsors/leaders participated in meetings, yet

maintained an equal footing in their roles, i.e., left their stripes at the door. The

local teams and sponsors were accountable to an oversight team which ensured

actions were taken and training was provided when needed. The ultimate goal

was to address specific cultural barriers to improving business results and to

enforce positive culture change.

2. A smaller change effort participant established a working team of employees who

were responsible for leading and developing the required changes. The team was

given clear goals and objectives by the officer team and received on-going

coaching to stay on track. The ultimate goal was to have the employees currently

doing the work design the future work and organization.

Other companies engaged employees but did not make internal structure changes.

One larger change effort participant created engagement through company-wide training

which all employees attended. The training was designed to:

a. reinforce the new brand, vision and values and their link to increased

business results;

Culture Change 50

b. create an environment which would encourage teamwork (intact work

teams attended together);

c. demonstrate the leaderships’ commitment; and

d. serve as the springboard for the required organizational change.

The springboard was specifically designed by their external consultant to

reflect Schein’s (2004) conceptual model for resistance to change, i.e.,

unfreezing, cognitive rethinking and refreezing. The training also required

work teams to identify steps they could take after the workshop to continue

the change process.

Each participant designed the employee engagement effort in a little different

fashion, i.e., ranging from creating a formalized internal structure and on-going process to

broad-brushing all employee training mechanism. However, the fundamental outcome of

each was to reach the hearts and minds of the employees and gain their commitment to

the future organization. The employees were empowered to take action and were

instrumental in determining the activities. Schein (2004) specifically addresses such

employee buy-in as his third level of culture, i.e., underlying assumptions/beliefs. Rogers

& Meehan (2007) identified this level as the “unique personality and soul” of the

organization. (p.255)

A Key Success Factor: Using specific measures to gauge progress

Most of the participants used an employee survey as an instrument to gauge the

culture in the organization. The largest participant built upon their branding, vision,

values and employee-wide training by asking questions which would be reflective of their

Culture Change 51

progress with the culture change. This specific participant had implemented the survey

over a period of 10 years and linked higher level culture scores with higher business

results for each respective department in the organization. Another participant used their

survey results as the impetus for their internal teams who addressed issues at the local

levels. Most participants, during some portion of time, also linked the survey results to

organizational performance and associated annual bonuses.

The surveys were a key factor in maintaining focus on the culture change effort.

The results provided both quantitative and qualitative actionable information. This was

real life: “what gets measured gets done”. Bossidy and Charan (2002) affirm such

activities as a means to ensure execution of the organization’s goals.

A Key Success Factor: Continuous reinforcement of the desired behaviors

Schein (2004) parrots the need for reinforcement as “what leaders pay attention

to”. (p.246) And,…”it is the consistency that is important, not the intensity of the

attention.” (p. 247)

In alignment with top leadership support, the participants implemented similar

activities to reinforce and continue the culture change. Some of these activities included

the following:

1. Developed new training which either built upon or expanded earlier first level

training

2. Developed competency frameworks using the values and desired behaviors as

the basis for performance management

Culture Change 52

3. Redefined job descriptions to increase accountability by clarifying

expectations and roles.

4. Improved current reward systems/processes to acknowledge desired behaviors,

e.g., initiated spot rewards as quick informal positive reinforcement

5. Reviewed and updated hiring practices to increase level of skills and

qualifications for new hires

6. Engaged key employee change agents to help “spread the word”

7. Communicated in a deliberate and strategic manner.

a. Leveraged verbal and written communications to generate new

artifacts, e.g., posters, letterheads, etc.

b. Designed messages to supplement stated vision and values

c. Provided messages in many venues, e.g., meetings, email, bulletins,

videos, TV screens at the local levels, etc.

d. Continued to have leadership play a key role in reinforcing the vision

and values through consistent organizational and local level messaging

e. Erred on the side of too much communication to keep employees

informed

All of the above activities created synergy around the ability to move the

organization forward. No one activity could carry the load alone. Many authors

identified similar approaches as part of the holistic or systems approach to ensure success.

(Rogers & Meehan, 2007, Unwin, 2007, Kotter, 1996, Schein, 2004, Bossidy & Charan,

2002)

Culture Change 53

A Key Success Factor: Realizing the effort is never completed

All participants specifically stated the change effort is a process and never

completed. There was general consensus that if an organization thinks they’re done,

they’ve stopped growing and may be in trouble business-wise.

As the literature has affirmed, organizations operating in the global environment

need to be flexible and continue to change to meet an ever-changing world. Kotter

(1996) specifically addresses this need in his discussion of creating a sense of urgency

when organizations have become either too complacent or too arrogant.

A Model for Successful Culture Change

As indicated, most of the participants initiated similar activities which contributed

to their success. Based on these results, a proposed model should incorporate the

following:

1. Development and communication of a common vision and stated values

2. Top down leadership support to reinforce the need for change, model the

desired behaviors and ensure execution of designed plans.

3. Engaging employees in the process as early as possible. Leadership

support is critical to begin and reinforce an effort; however, it’s an

employee groundswell that will ultimately carry the day.

4. Establish measures to gauge progress and take steps to either reinforce

desired behaviors or identify opportunities to be more effective in creating

desired behaviors.

Culture Change 54

5. Use a systems/holistic approach to identify areas which may need to

change to reinforce and support the effort. Key areas are the Human

Resources systems which establish hiring practices, develop performance

management processes, provide training and leadership development and

reward demonstrated behaviors. In addition, all forms of communication

must be aligned and provide consistent messaging around the vision and

desired values/behaviors.

6. Continue to connect the external and internal environments the

organization is operating in.

7. Don’t be satisfied with the status quo. Complacency and/or arrogance are

two of the evils which can easily hobble continued business success.

Recommendations

Further Study with More Participants

Overall, the participants were successful in achieving the culture changes they

attempted. The sample size for this qualitative study was sufficient to determine a

general model and aligned with most literature. However, given the broader level of

failure indicated in the literature (Kotter 1996, Cameron & Quinn, 2006, Rogers &

Meehan, 2007), additional research is suggested to test the larger population.

Further Study with Increased Level of Detailed Questions

Although the survey questions used for this study were appropriate, there is another

perspective discussed in the literature which was not addressed in the study. As Bossidy and

Culture Change 55

Charan (2002) stated, “We don’t think ourselves into a new way of acting, we act ourselves

into a new way of thinking”. (pg. 89) This perspective aligns with other prevailing

authors such as Schein (2004) and Kotter (1996, 2002). The message being that culture

change occurs as a result of successful new behaviors, i.e., culture change is the outcome,

not the goal. Consequently, these authors emphasize the need to continuously identify

and celebrate small/large successes. Further study with more probing questions to

address specific detailed activities which occurred would help fill in this gap.

Along similar lines, Fullan (2008) warns of Rosenzweig’s described halo effect,

i.e., attributing an organization’s success to behaviors identified after the fact (pg. 7).

Fullan associates this warning with the general vulnerability of leaders to look for “the

silver bullet” and the tendency to adopt whatever activity seems to be working for other

companies (p. 6). The intent of the discussion is not to discount the traits or activities

found in successful companies, but to be aware of an after the fact association and

understand the potential implications. As Fullan states, “..don’t believe everything you

read..” and “Look for the argument and evidence behind the claim” (p. 17). Further

research, again with more detailed questions focused on specific activities/hits/misses and

a broader base of participants will help bring additional issues to the surface which may

complement or refute the halo effect.

Culture Change 56

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Culture Change 58

APPENDIX A

Sample e-mail invitation to identified participants:

SUBJ: Invitation to Participate in Study: Successful Culture Change

I am a graduate student in Organizational Psychology at John F. Kennedy

University. As part of the requirements for the completion of my Master’s degree,

I am conducting a small qualitative research study on companies which have

successfully implemented a culture change. I am requesting your consideration to

participate in this study.

The proposed study will focus on the strategy and steps taken before,

during and after the culture change. The study will be conducted through a series

of individual interviews with Human Resource Directors or their designees; each

interview is expected to be of 45-60 minute duration and will be tape recorded.

Study participants will be asked to describe their own experience as a part of the

cultural change. Data gathered in interviews will be analyzed and interpreted with

the goal of enabling a more complete understanding of how companies might

implement a successful culture change.

Participation is completely voluntary and you are free to change your mind

at any time and choose not to continue. Should you choose to participate, all

information you give during the interview process will be confidential and your

individual contribution will be anonymous. All data collected during the process

will be stored in a secured, confidential location accessible only by me. I will also

make a copy of the summary project report available to you at your request.

Thank you for your consideration. I sincerely hope that you will choose to

participate! If you have any questions or would like to talk with me please feel

free to contact me at 415.973.5858 or 415.412.5831 (cell).

Darla McDougall

Culture Change 59

APPENDIX B

Informed Consent Form

My name is Darla McDougall. I am currently a graduate student in the Masters

of Organizational Psychology program at John F. Kennedy University in Pleasant Hill,

California. The research project is a requirement toward the completion of my Master’s

degree. This research project is being conducted under the advisement of Sharon

Mulgrew, M.P.H. – Organizational Psychology Research Coordinator. She can be

reached a [email protected]. or 510-450-0378.

Project Summary: The proposed study will focus on the strategy and steps taken

before, during and after a successful culture change. The study will be conducted

through a series of individual interviews with Human Resource Directors or their

designees; each interview is expected to be of 45-60 minute duration and will be tape

recorded. Study participants will be asked to describe their own experience as a part of

the cultural change. Data gathered in interviews will be analyzed and interpreted with

the goal of enabling a more complete understanding of how a company might implement

a successful culture change. You may also be contacted by phone at a later date for

clarification or follow-up necessary to insure accuracy of the data.

Voluntary Participation: Participation is completely voluntary and participants

are free to change their mind at any time and choose not to continue even after signing

this consent form.

Confidentiality and Anonymity: All information given by study participants is

confidential and individual contributions are anonymous. All data will be stored in a

secured, confidential location accessible only by me and a third-party subscriber. Each

participant will be identified on the tape by first name and participant code only.

Availability of Results: A Summary of the results of this study will be available

to participants upon request after completion of the study.

Consent: I hereby consent to participate in the above research project. I

understand that my participation is voluntary and that I may change my mind or refuse to

participate or withdraw at any time without consequence. I may refuse to answer any

questions or I may stop the interview. I understand that some of the things I say may be

directly quoted in the text of the final report, and subsequent publications, but that my

name will not be associated with this study.

Participant Signature: ____________________________ Date: ____________

Name: (Please Print) ____________________________

Witness Signature: ______________________________ Date: ____________

Name: (Please Print) ____________________________

Culture Change 60

APPENDIX C

Interview Questions

1. Tell me about your experience with the culture change in your organization. (reference

the specific culture change for their organization)

2. What was the reason for the change?

3. In what way were you involved in the change?

4. What was the strategy? How was it carried out?

5. Was the change successful? How do you know?

6. How did the organization determine their measures of success and why?

7. How long did it take to make the change and how long has it been since it would be

considered completed?

8. Has the culture change been sustained since it was completed? If so, what process/steps

were implemented to ensure sustainability? If not, what is the organization’s plan to

address the issue?

9. Were these steps planned as a part of the change or did they just manifest themselves?

10. What areas took priority during this culture change, which did you emphasize, and why?

11. What were the major keys to the organization’s success?

12. What role did leadership play? What style of leadership was prevalent?

13. What appeared to be the biggest surprise during the process and why?

14. What appeared to be the biggest obstacle to success and how did you overcome it?

15. Looking back, what do you believe could have been done differently? And, how?

16. What advice would you give to an organization planning a culture change?

17. Were there fundamental changes in HR systems/processes, e.g., rewards and recognition,

training or hiring? Any other systems/processes?

keys to successful culture change - john f. kennedy...

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