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Introducing Cultural Transformation

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1 Introducing Cultural Transformation
Individual Assessment Leadership Commitment to Develop Cultural Capital Team Assessment Vision, Mission and Values Corporate Culture Assessment Leadership Team Development Leadership Values Assessment Leadership Coaching

2 Derivation of Consciousness Model
Service Making a Difference Internal Cohesion Spiritual Needs 7 6 5 4 Transformation 4 3 2 1 Maslow’s Hierarchy of Needs Self Actualization Self-Esteem Belonging Survival

3 Derivation Personal Consciousness Model
Expansion of Maslow’s model to give more definition to spiritual motivations. Substitute “states of consciousness” for “hierarchy of needs.” Each state of consciousness focuses on specific beliefs, values and behaviors associated with the particular life theme. Organizational values are more important today than at any other time in history because the personal and societal context within which business operates is changing. Who you are as an organization, and what you stand for, are becoming just as important as what you sell. The values that an organization lives by are important to a variety of stakeholders: ·         Society: Organizational values need to meet society’s expectations with regard to environmental stewardship and social responsibility. Failure to support society’s values can have a very significant impact on financial performance.[1] ·         Shareholders: Organizational values need to meet the needs of the new breed of shareholders that are only investing in companies that: (a) meet socially responsible investment criteria; and (b) compete to be the best companies to work for, or other quality awards. ·         Potential employees: To attract the best people, the organizational values need to meet the needs of potential new employees who are choosing to work in organizational cultures that align with their personal values. Existing employees: To retain the best people, the organizational values also need to meet the needs of existing employees and support them in finding personal fulfillment at work. [1] 76% of American Consumers in 1997 said they would switch to brands associated with a good cause if price and quality were equal. Up from 66% in 1993.

4 Cultural Transformation Tools
Key Attributes: Makes it possible to translate qualitative data into quantitative data Provides a base-line measurement instrument for monitoring changes in the organizational culture This is not a bench-marking tool. Recommend that organizations re do the assessment every six to twelve months. This is possible because: It is very affordable. Easy to administer – takes only 15 –20 minutes. Provides a method for measuring cultural capital

5 Seven Levels of Consciousness
Human Needs Human Motivations 7 Service 6 Spiritual Making a Difference 5 Internal Cohesion Mental Transformation 4 Start by explaining that MODELS ARE BASED ON HUMAN NEEDS AND MOTIVATIONS. Everyone has four basic needs: These needs are the basis for human motivations. PHYSICAL - Survival: Health, Safety, Security EMOTIONAL - Relationship: Sense of Belonging, Open Communication. Self-Esteem: Sense of own self-worth based on feedback from others. MENTAL - External – Mind invited into the community or work place. Internal – Mind used for personal growth. Change in beliefs and assumptions. SPIRITUAL - Meaning: Sense of meaning derived through work or other activities. Making a Difference: Sense of being able to change things for the better. Service: Sense of making a contribution to the common good or assisting others without thought of reward. Self-Esteem 3 Emotional Relationship 2 Physical 1 Survival

6 Continuous Improvement Customer Satisfaction
Full-Spectrum Consciousness Business Language Maslow Long-term Viability Collaboration Shared Vision Continuous Improvement Best Practices Customer Satisfaction Financial Stability Service Making a Difference Internal Cohesion Survival Relationship Self-Esteem Transformation

7 What does this mean? Looking at an aligned organization:
Red = matches – personal (p), current cultural (cc) desired culture (dc) What do you notice? What is relevant? What do you think is important? Why? What would be your next step?

8 Mis-aligned Red empty circles = possible liabilities
Blue = matches pv + dc (##) = number of people responding to this value Meaning? What is apparent? What is relevant? What is important Where would you start? What would you do?

9 What’s the Cost? How would you calculate the cost of mis-alignment?
How would you approach the client system with this information? How would this information impact your over-all design?

10 Aligned Organization – Sterling Bank (979)
Personal Values 1. honesty (532) 2. commitment (498) 3. family/ friendship (479) 4. reliability (387) 5. integrity (321) 6. friendliness (294) 7. responsibility (283) 8. humor/fun (276) 9. courtesy (263) 10. trust (255) Current Culture Values 1. customer service (504) 2. teamwork (487) 3. customer satisfaction (476) 4. community involvement (399) 5. vision (373) 6. organizational growth (296) 7. being the best (285) 8. integrity (275) 9. commitment (261) 10. friendliness (252) Desired Culture Values 1. teamwork (513) 2. customer satisfaction (491) 3. customer service (489) 4. employee fulfillment (477) 5. community involvement (430) 6. integrity (337) 7. commitment (301) 8. vision (295) 9. being the best (288) 10. accessibility (274) Sterling Bank was the first organization ever assessed as Full Spectrum in the current culture. No limiting values and 8 matches between CC & DC. These are happy people and the organization is very successful and profitable. Notice the IROS match too. The values in black on the DC (in this case Employee fulfilment & Accessibility) are the new requests. They do not come from the personal values and not in current culture. How can these be implemented and supported in the culture? As a response to employee fulfilment, Sterling bank created a program for all staff called Live your Dreams. PL = 10-0 IRS (P) = 5-5-0 IRS (L) = 0-0-0 3 Matches PL = 10-0 IROS (P) = IROS (L) = 8 Matches PL = 10-0 IROS (P) = IROS (L) = 2 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Red = PV, CC & DC match L = Potentially Limiting R = Relationship Red = CC & DC match (hollow dots) O = Organizational Blue = PV & DC match S = Societal

11 Misaligned Organization – Kennex (432)
Personal Values 1. honesty (312) 2. humor (279) 3. accountability (242) 4. flexibility (235) 5. politeness (212) 6. openness (196) 7. responsibility (193) 8. listening (188) 9. loyalty (179) 10. cooperation (169) 11. ethics (169) 12. fairness (169) Current Culture Values 1. complaining (L)(301) 2. bureaucracy (L) (286) 3. dissatisfaction (L) (264) 4. disclaim responsibility (L) (241) 5. humor (219) 6. caution (L) (203) 7. conflict (L) (187) 8. resistance (L) (182) 9. shallowness (L) (167) 10. expulsive (L) (142) 11. individualism (142) 12. tradition (142) Desired Culture Values 1. honesty (301) 2. open communication (283) 3. accountability (266) 4. flexibility (263) 5. including (254) 6. competence (247) 7. shared values (230) 8. humor (224) 9. dialogue (173) 10. openness (158) Key learning points When you see white dots, look at the IROS to see where those dots are showing up? What might IROS (L) suggest? Look at the word Humor in the current and desired? You can see that they might mean very different things in the context of the values that surround them. Where are the transformational opportunities? What are the values in the desired list that might be the antidotes to the L values in the current list? The point here is that the limiting values do not show up unless people are getting benefit from them. The task then is to find out how can we achieve that same level of benefit by replacing limiting values for positive ones. PL = 12-0 IRS (P) = 5-7-0 IRS (L) = 0-0-0 1 Match PL = 3-9 IROS (P) = IROS (L) = 1 Match PL = 10-0 IROS (P) = IROS (L) = 5 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Red = PV, CC & DC match L = Potentially Limiting R = Relationship Red = CC & DC match (hollow dots) O = Organizational Blue = PV & DC match S = Societal

12 This extra survey allows you to find out the costs of the PLVs or the cost of fear. This is not a scientific survey. It answers the question so we have a $30 problem or a $30,000,000 problem. This helps people who are strongly level 1 focus to understand the financial value of values.

13 Cost of Limiting Values
Short-term Focus £3,480,818 Confusion £3,178,636 Bureaucracy (unnecessary) £1,799,618 Empire Building £1,764,682 Information Hoarding £1,634,045 Sickness and leavers £ 834,225 Hierarchical £ 624,327 Long Hours £ 187,909 Total Entropy (potential business value) £13,504,261 Based on staff’s perception of lost productivity & opportunity. Annual income £33,000,000 & loss of -£500,000 in 2000. Real worked example and the materials for this are available on MY CTT and trained on CTT Part 2 Investment Leadership – Jim Ware’s book contains data showing the comparison between healthy and unhealthy cultures and bottom line performance

14 Sterling Results Record annual profits for 13 years
680% growth since going public in 1993 Annual return of 32% for the last 5 years From 1 to 33 locations – 1000 staff – all staff share in profits Normal profit sharing – 9.5% of base salary Salaries are 18.5% above industry norm CEO’s salary is no more than 16 times lowest salary

15 Improvements: What happens when use tool over period of years?
What can be tracked? What can be evaluated? What is the value?

16 The Methodist Hospital Group (1695) - 2001
Personal Values 1. caring (916) 2. accountability (856) 3. dependability (839) 4. honesty (684) 5. commitment (634) 6. compassion (592) 7. family (487) 8. competence (484) 9. responsibility (441) 10. continuous learning (440) Current Culture Values 1. patient satisfaction (609) 2. cost effectiveness (551) 3. continuous improvement (532) 4. being the best (495) 5. accountability (487) 6. commitment (487) 7. bureaucracy (411) (L) 8. continuous learning (366) 9. achievement (355) 10. teamwork (349) Desired Culture Values 1. accountability (981) 2. commitment (774) 3. continuous improvement (644) 4. compassion (526) 5. teamwork (478) 6. competence (462) 7. employee recognition (447) 8. employee fulfillment (430) 9. ethics (423) 10. continuous learning (414) PL = 10-0 IRS (P) = 5-5-0 IRS (L) = 0-0-0 3 Matches PL = 9-1 IROS (P) = IROS (L) = 5 Matches PL = 10-0 IROS (P) = IROS (L) = 5 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Bold & italics = CC & DC match L = Potentially Limiting R = Relationship Bold = PV & DC match (hollow dots) O = Organizational Bold, italics & underline = PV, CC & DC match S = Societal

17 The Methodist Hospital Group (6814) - 2003
Personal Values Current Culture Values Desired Culture Values 1. accountability (4118) 2. caring (3693) 3. dependability (3325) 4. compassion (2747) 5. honesty (2706) 6. respect (2403) 7. commitment (2286) 8. responsibility (1861) 9. integrity (1828) 10. patience (1708) 1. accountability (2815) 2. patient satisfaction (2608) 3. being the best (2231) 4. continuous improvement (2067) 5. commitment (2028) 6. cost effectiveness (1874) 7. compassion (1724) 8. teamwork (1676) 9. achievement (1490) 10. continuous learning (1467) 1. accountability (4030) 2. commitment (2674) 3. continuous improvement (2387) 4. compassion (2353) 5. teamwork (2132) 6. patient satisfaction (2028) 7. being the best (1955) 8. respect (1733) 9. integrity (1693) 10. open communication (1677) PL = 10-0 IRS (P) = 5-5-0 IRS (L) = 0-0-0 3 Matches PL = 10-0 IROS (P) = IROS (L) = 7 Matches PL = 10-0 IROS (P) = IROS (L) = 5 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Red = PV, CC & DC match L = Potentially Limiting R = Relationship Red = CC & DC match (hollow dots) O = Organizational Blue = PV & DC match S = Societal

18 The Methodist Hospital Group (7502) - 2004
Personal Values Current Culture Values Desired Culture Values 1. accountability (4889) 2. caring (3943) 3. dependability (3488) 4. compassion (3232) 5. honesty (2964) 6. respect (2810) 7. commitment (2494) 8. integrity (2310) 9. responsibility (2181) 10. patience (1832) 1. accountability (3352) 2. patient satisfaction (2956) 3. being the best (2376) 4. commitment (2270) 5. compassion (2087) 6. continuous improvement (2066) 7. integrity (1921) 8. teamwork (1878) 9. cost effectiveness (1816) 10. respect (1662) 1. accountability (4495) 2. commitment (2921) 3. compassion (2640) 4. continuous improvement (2395) 5. teamwork (2320) 6. integrity (2233) 7. patient satisfaction (2208) 8. respect (2159) 9. being the best (1970) 10. open communication (1823) The core values of Methodist are I-Care (Integrity, Compassion, Accountability, Respect and Excellence). 4 out of 5 of the core values are present in the CC. This shows an organization where the leaders and people are living the values. PL = 10-0 IRS (P) = 5-5-0 IRS (L) = 0-0-0 5 Matches PL = 10-0 IROS (P) = IROS (L) = 9 Matches PL = 10-0 IROS (P) = IROS (L) = 5 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Red = PV, CC & DC match L = Potentially Limiting R = Relationship Red = CC & DC match (hollow dots) O = Organizational Blue = PV & DC match S = Societal

19 Graphic Representations
Different ways of sharing information

20 Cultural Transformation Tools
General Hospital (509) Personal Values Current Culture Values Desired Culture Values 1. accountability (274) 2. caring (259) 3. honesty (221) 4. reliability (202) 5. compassion (200) 6. family (192) 7. respect (172) 8. commitment (161) 9. humour/fun (157) 10. co-operation (139) 1. bureaucracy (199) (L) 2. avoidance (174) (L) 3. hierarchy (170) (L) 4. cost-consciousness (145) 5. patient focus (141) 6. control (138) (L) 7. manipulation (135) (L) 8. continuous learning (122) 9. long hours (121) (L) 10. community engagement (120) 1. accountability (338) 2. patient focus (188) 3. employee satisfaction (185) 4. open communication (167) 5. caring (166) 6. respect (163) 7. continuous improvement (159) 8. teamwork (151) 9. balance (physical/emotional/ mental/spiritual) (121) 10. employee involvement (117) PL = 10-0 IRS (P) = 3-7-0 IRS (L) = 0-0-0 0 Matches PL = 4-6 IROS (P) = IROS (L) = 1 Match PL = 10-0 IROS (P) = IROS (L) = 3 Matches LEGEND Underline = PV & CC match P = Positive I = Individual Red = PV, CC & DC match L = Potentially Limiting R = Relationship Red = CC & DC match (hollow dots) O = Organizational Blue = PV & DC match S = Societal Values Assessment Cultural Transformation Tools

21 Cultural Transformation Tools
General Hospital (509) Personal Values Current Culture Values Desired Culture Values C T S 7 6 5 4 3 2 1 CTS = CTS = CTS = Entropy = 3% Entropy = 36% Entropy = 2% C = Common Good T = Transformation S = Self-interest Positive Values Potentially Limiting Values Distribution Cultural Transformation Tools

22 Cultural Transformation Tools
General Hospital (509) Positive Values Cultural Transformation Tools

23 Cultural Transformation Tools
General Hospital (509) Personal Values Current Culture Desired Culture Common Good Transformation Self-Interest CULTURAL ENTROPY CTS Chart Cultural Transformation Tools

24 Cultural Transformation Tools
General Hospital (509) BALANCED NEEDS SCORECARD Current Culture Values Desired Culture Values Corporate Finance Corporate Finance Corporate Fitness Client Relations Corporate Evolution Corporate Culture Society/ Community Contribution Society/ Community Contribution Balanced Needs Scorecard Cultural Transformation Tools


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