2 Agenda Summary for the article Implication for management Criticism and more thinking over culture
3 The Space Shuttle Columbia In the February year 2003 the Shuttle was exploded apartColumbia Accident Investigation Board was set upThe immediate cause to the disaster was a hole in the Thermal Protection SystemThe indirect causes was found in the organizational culture
4 Organizational culture From engineering culture to the managerial cultureFrom open communication to the communication barriersEfficiency over the risk“Faster, cheaper, better”“What can go wrong?”
5 Agenda Summary for the article Implication for management Criticism and more thinking over culture
6 Implication Culture is Culture is learned. a pattern of shared basic assumptions that a group learned as it solved problems of external adaptation and internal integration,to be taught to new members as the correct way to perceive, think and feel in relation to those problems.Culture is learned.An individual or a group acquires patterns of thought and behavior by processes of socialization and acculturation.Leaders play a major role in shaping organizational culture.When norms of safety, respect, honesty, fairness and the like are integral parts of a culture, its people make ethical decisions.
8 Agenda Summary for the article Implication for management Criticism and more thinking over culture
9 Criticism 1 Strategy wrong or culture wrong? Usually we only judge culture as “suitable” or “unsuitable”Long-term: Whether it’s suitable for Vision or Core ValueShort-term: Whether it’s suitable for Strategy“Wrong culture” = “unsuitable Culture”NASA’s vision and mission remain unchanged; However, NASA’s culture change keeps close pace with strategy change (see next slide)If culture is suitable and right, what is wrong ???? STRATEGY !!!
10 Criticism 1 (cont’d)NASA Established19581972Nixon’s announcement1986Challengerdisaster2003Columbia2011Space Shuttle Program end1982Reagan’s declarationStop Mars project and Space PlatformShuttle was “fully operational”Core Value: Safety / People / Excellence / IntegrityStrategy Change:All eggs in one basket: Shuttle ProgramHeavy schedule of Shuttle launch, e.g. target 714 flightsStrategy Change:Internalize the commercial and military goalsMore launch pressureOutside economic resources, e.g. contractor which designs O-ring for ChallengerStrategy Change:“Manage risk and cost to ensure success”Make individual manager understand risk and cost estimationCulture focus on ExcellenceCulture focus on Production and Bureaucracy
11 Criticism 2 How to develop HRO (Highly Reliable Organization)? For NASA, we suggest to establish hypocrisyImage to government: promising economy engine in the futureImage to public: world’s hero, safety first, meaningful workImage to internal: still care about technical problems and engineers’ opinionsMaybe by PR management and cautious Scorecard designMore and more isolated from US government
12 Criticism 3 Can culture really be changed individually? Culture is a comprehensive “side product” of other factors: History, Leader, Strategy, Performance Management, HR Management, Internal Control......Changes must start from factors other than CultureFor NASA, we suggest change from STRATEGY DESIGN !!Prioritize safety, at least measure technical risk and financial risk separatelyCost control can be included, but cannot be aggressiveStrongly advise to put all commercial projects in one business unit......
13 Thanks for listening and sharing ! By 17th Group:Virpi Hytönen, Mengyuan Yang, Xiaohui Zhu
14 DiscussionHave you ever experienced interesting or freaky working cultures?What is culture in your opinion?How to change culture?… …Any suggestion for such political economy as NASA?
15 A case about “lethal culture” Foxconn: largest employer in China ( 1 million+), manufacturer for BlackBerry, iPad, iPhone, Kindle, PlayStation 4, Xbox One, and Wii UDuring the whole year of 2010, 14 employees took suicide at plant site, aging from 18 to 24Some clues for working culture:12 hours’ working / dayIf unable to meet hourly quota, no restConversation in the workshop is forbiddenEvery movement is standardized for maximum efficiencySo hard to make friends because work shift changes quite oftenModern factory facility: swimming pool and cinemas