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The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Welcome to “How to Measure Culture”
Clarke
Debra Levantrosser
Michigan Lean Consortium
November 15, 2017Mid Atlantic Lean Conference, Baltimore
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The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
•What are Culture and Climate?•Why Care About Measuring Them?•How Can We Measure Culture?• Denison Model• CLS 360• The Circumplex
•Examples
Topics For Today
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.The Circumplex & all models copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty. Human Synergistics Center for Applied Research
The Culture and Climate Link
ClimateThe apparent
organization
CultureThe “below-the-surface”
organization
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
What Is Organizational Culture?
Values
Behaving
Perceiving
Thinking
❖ A pattern of basic assumptions, invented, discovered or developed … that has worked well enough to be considered valid and, therefore is taught to new members as the correct way to perceive, think, and feel.
E.H. Schein
Sloan School of Management, MIT
It’s the personality of an organization!!
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
• What it takes to “fit in” around here.
• How decisions get made when you can’t be there.
• The way we do things around here.
• How people will act under pressure.
• The glue that holds the organization together.
The basic assumptions, shared values and
beliefs that guide the way organizational
members behave toward each other and
approach their work.
Organizational Culture
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
“In fact, there is a possibility -
underemphasized in leadership research -
that the only thing of real importance
leaders do is to create and manage culture
and that the unique talent of leaders is
their ability to work with cultures.”
Is It Important?
Edgar Schein, PhD, MIT
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Why Care About Measuring
Culture?
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
“I came to see, in my time at IBM, that
culture isn’t just one aspect of the game
– it is the game.”Lou Gerstner, Chairman and CEO of IBM
Is It Important?
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Measure
Everything
That
Results
In
Customer
Satisfaction
Metrics
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.http://history.nasa.gov/rogersrep/crew.jpg
http://story.news.yahoo.com/news?tmpl=story&u=/030826/168/52udh.html
http://www.open2.net/forensic_engineering/methods/advances/advances_12.htm
O-Ring
Challenger - 1986
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
-from Yahoo! Photos (AFP/NASA/File)
http://story.news.yahoo.com/news?tmpl=story&u=/030827/241/53ay8.html
http://www.cnn.com/resources/video.almanac/1986/
Shuttle report blames NASA Culture
Columbia - 2003
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
The organizational causes of this accident are rooted in the
Space Shuttle Program’s history and culture. Cultural
traits and organizational practices detrimental to safety
and reliability were allowed to develop , including:
reliance on past success as a substitute for sound
engineering practices (such as testing to understand why
systems were not performing in accordance with
requirements/specifications); organizational barriers
which prevented effective communication of critical
safety information and stifled professional differences
of opinion ; lack of integrated management across
program elements; and the evolution of an informal chain of
command and decision-making processes that operated
outside the organization’s rules.
NASA’s organizational culture and structure had as much to do
with this accident as the External Tank foam.
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Typical Measures of a Lean Culture
• # of kaizen events
• # of employee suggestions
• $ saved
• Reduction in lead time
• # of defects
• Others?
NO! We need to know the HOW, not just the WHAT! The
HOW is WAY more important in a lean culture.
DO THESE REALLY TELL US
WHAT WE WANT TO KNOW??
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Other Ways of Measuring
Culture
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Revenue Growth
Growth Staff
Increase Stock Price
Increase Net ProfitSource: Kotter J. P. and Heskett J.L. (1992)
682%
282%
901%
756%
166%
36%
74%
1%
ADAPTIVE LEAN CULTURE
(Constructive)
UNADAPTIVE CULTURE
(Defensive)
Culture can have a significant impact on a
firm’s long-term economic performance:
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
The Leadership Circle
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Denison Consulting
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
CLS 360
Dr. Kenneth Locke University of Idaho
Quentin JonesAustralia
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Dr. Timothy Leary 1920 - 1996
Leary Circumplex - 1957
The circumplex tradition in
interpersonal psychology was
inspired by the sociological
theory of George Herbert Mead
(1934) and the interpersonal
theory of Harry Stack Sullivan
(1953)
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Dr. J. Clayton Lafferty - 1928 - 1997
The Circumplex
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
• Defensive Cultures - Inactive/Reactive
– How people see you is more important than what you do
– Focus on blame
– Maintain the status quo
– Value winning above competence
Two General Types of Culture
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Jigs, Fixtures and all other items in this area are the property of the Engineering Department.
Manufacturing people are not welcome here!
Sign on area door of Fortune 50 Manufacturing Company
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
• Defensive Cultures - Inactive/Reactive
– How people see you more important than what you do
– Focus on blame
– Maintain the status quo
– Value winning above competence
• Constructive Cultures - Proactive
–Foster innovation
–Reinforce personal responsibility and accountability
–Value performance
–Value cooperation and teamwork
Two General Types of Culture
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Members interact with
people in ways that will
not threaten their own
security.
• 3 Approval
• 4 Conventional
• 5 Dependent
• 6 Avoidance
Passive/Defensive
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Members approach
tasks in forceful ways
to protect their status
and security.
• 10 Perfectionistic
• 9 Competitive
• 8 Power
• 7 Oppositional
Aggressive/Defensive
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
• 11 Achievement
• 12 Self-Actualizing
• 1 Humanistic-Encouraging
• 2 Affiliative
Members interact with
others and approach
tasks in ways that will
help them to meet their
higher-order
satisfaction needs.
Constructive
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Satisfaction
Security
Higher Order
Needs
Lower Order
Needs
Satisfaction vs. Security Needs
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Task
Centered
People
Centered
Task vs. People Orientation
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
• Emphasis on human assets
• Adaptable
• Customer service excellence
• Innovation • Loyalty/Satisfaction
• Inter-unit coordination
• Cooperation
• Market shaper
•
• Secretive
• Punitive
• Reactive
• Concerned with Appearance
• Arrogance
• Bullying
• Hierarchical
• Internally Competitive
• Unresponsive
• Driven by market
• Formal
• Entitlement
• Bureaucratic
• Conservative
• Inactive
• Fearful
Organizational Effectiveness Model
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Total Group Ideal N=15,982
Preferred Culture – North America
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Preferred Culture - Worldwide
Latin American Cluster
Chile, Columbia, Venezuela
Germanic Cluster
Germany, Switzerland
Near Eastern Cluster
Greece, Turkey
N=15,982
North American Cluster
USA, Canada
Nordic Cluster
Denmark, Finland, Norway
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Australia Korea
Preferred Culture - Worldwide
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Military DefenseIdeal Culture
Air Force Base Navy Yard
US Military Ideal
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
US Government IdealN=1173
US Government
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Female
N=5014
Male
N=5325
US Male / Female
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Under 20
20 - 29
30 - 39
40 - 49
50 - 59
60 +
Age
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Operating Culture(OCI Norms)
Outcomes(System
Effectiveness)
Supersystem(Customers)
Organizational(Profitability)
Subsystem(Members)
Causal Factors(Levers for Change)
Mission and
Philosophy
Structures
Systems
Technology
Skills/Qualities
Ideal Culture(Values)
.
How Culture Really Works
Lean
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
How Culture Works
Antecedents(Levers for Change)
Operating Culture(OCI Norms)
Outcomes(Effectiveness)
Individual
Group
Organizational
AssumptionsEspoused
Values (Ideal Culture)
PhilosophyMission
GoalsStrategies
Structures
Systems
Technology
Skills/Qualities
Technology
Job design
Complexity
Inter-dependence
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
*Based on Balthazard, Potter, and Cooke, 2008
(n=31 virtual teams)
The Electronic Disintegration of Interpersonal Teams
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Opposes new ideas
Looks for mistakes
Resists change
Critical of others
7
Wants to control everything
Believes in force
Has little confidence in people
Seldom admits mistakes
8
Competes rather than cooperates
Strong need to win
Constantly compares self to others
9
Never wants to make a mistake
Sets unrealistic goals
Personally takes care of every detail
Creates self-induced stress
10
Shows strong commitment to organization
Receptive to change
Creative problem solver
Non-defensive
Self respecting
12
Trustworthy
Resolves conflicts constructively
Encourages growth and development in
others
Involves others in decision making
Motivates by serving as a role model
1 Cooperative
Friendly
Genuine concern for others
Accepts change
2
Achieves self-set goals
Accepts and shares responsibility
Insightful in diagnosing problems
Believes that individual effort is important
Takes on challenging tasks
11
Sets goals that please others
Supports those with the most authority
Agrees with everyone
Reluctantly deals with conflict
3
Treats rules as more important than ideas
Follows policies and practices
Reliable and steady
Sets predictable goals and objectives
4
Relies on others for direction
A good follower
Doesn’t challenge others
Aims to please everyone
5
Avoids conflict
Has difficulty making decisions
Is non-committal
“Lays low” when things get tough
Hopes that problems will take care of themselves
Individual Effectiveness Model
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Predominance in 11 O’clock Achievement Style
Company President/Chief Executive Officer
Selected as the Industry’s Executive of the Year
Stylus Level 1
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Stylus Level 1
Predominance in 10 O’clock Style of Perfectionism
A 54-year-old Male Who Has Had Five Ulcers
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Stylus Level 1
March The following March
Vice-President of Non-Routine Operations “Banking”58-year-old Male
Managed Customer Service Department
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
LSI 2
President of Financial Services 57-year-old MaleLSI 1
• Ineffective in his job
• President & Chairman
had not spoken for 3 years
• Divorced after 29 years
• Son — drug charges
Stylus Level 1 & 2
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Others View
n=5
Self View
Corporate Resources of Fortune 50 Company41-year-old Female Executive Director
• Ranked 1 of 189 in
internal employee
satisfaction survey 3
years running – 79.2%
favorable rating
• Department
consistently under
budget and schedule
on managed projects
Stylus Level 1 & 2
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Senior Management Management Non Management
Large Manufacturing Company
Organizational Culture Actual
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Department Managers
n=24
Manager
LSI Level 1
38-year-old Female
• 1.3% MCE
• Rework high, monthly
money loss
• Turnover < 300%
• Mgr – severely disturbed
• VP – ex Marine DI
• Co – RICO violations
Division of a Large Computer Company
Organizational Culture Inventory
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Total Group
Ideal Culture N=35
Large Telecommunications Company Ideal
Total Group
Current Culture N=313
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Manager’ of a Subsidiary of a Large
Telecommunications/Broadcasting Company
Total Group
Current Culture
N=313
Large Telecommunications CompanyManager Level 1
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Manager of a Subsidiary of a Large
Telecommunications/Broadcasting Company
Total Group
Current Culture
N=313
Large Telecommunications CompanyManager Level 2
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Large US Law Firm – 700 Attorneys
Competition/Perfectionism•Be a “winner”
•Win against others
•Be seen and noticed
•Never appear to lose
•Always try to be right
•Out-perform their peers
•Be the center of attention
•Turn the job into a contest
•Compete rather than cooperate
•Maintain an image of superiority
IDEAL
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
All 2000 N=133
All 2005 N=205
All 2009N=187
State Government Agency
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Navy – Culture Initiative
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Fortune 50 Manufacturer
The Circumplex copyright Human Synergistics Inc. , Dr. Rob Cooke, Dr. J Clayton Lafferty.
Moving to a Lean Culture
These Presenter Units are scanning for your
feedback!
This session is:
222 Levantrosser-Clarke
Are you a future presenter? Contact Jeff Fuchs at [email protected]
about presenting at next year’s conference.