1. We are looking at Organisational Change. Are we ready? Can we cope?
Today
We are looking at Organisational Change.
Are we ready? Can we cope?

2. What is culture? How can we diagnose organisational culture?
What do we mean by change? Are we ready to embrace it? How do we manage it?
What is our vision of the future organisation? Do we want a learning organisation?

3. Organisational Culture
Kevin Hinde

4. A Definition of Organisational Culture
Schein EH (1985) defined it as
"A deeper level of basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic 'taken for granted' fashion an organisation's view of itself and its environment".
Defining Corporate Culture
Even to introduce the word “culture” into the discussion makes many managers shudder - often with some justification, since this is often an excuse for posturing rather than detailed analysis. Nevertheless, it has become generally accepted that the experience of managers has an important impact upon the way organisations function. Indeed, groups within organisations, and the organisations themselves, can be seen to build up experience over time, affecting the way in which they view the world and the actions they take.
Corporate culture can be defined as:
“The set of shared values, beliefs, habits of thought which interact with the structure, politics and policies of the organisation to produce a set of behavioural norms.”
As one manager said:
“Culture is something which makes members of an organisation behave more like each other than non-members!”
Edgar Schein of the Massachusetts’ Institute of Technology amplifies this definition:
“Culture is not the overt behaviour or visible artefacts that one might observe if one were to visit the company. It is not even the philosophy or value system which the founder may articulate or write down in various charters: rather it is the assumptions which lie beyond the values which determine the behaviour patterns and the visible artefacts such as architecture, office layout, dress codes and so on.”
His understanding of culture is like peeling away the layers of an onion to find the central paradigm. This is highlighted and described in Johnson and Scholes as like peeling away the layers of an onion:
Johnson and Scholes talk about the factors that might affect the taken-for-granted assumptions of a group, be it as narrow as a department within an organisation, or as broad as a nation. These frames of reference have an influence upon the individual through the groups to which they belong and are identified as:
Often these frames of reference are expressed in the shared language or jargon used by members of the group, their common understanding of rituals and their assumptions on the way in which business is done. For example, it is not unusual for politicians in the UK to have friendships which transcend Party loyalties - despite differences of policy and philosophy there is a shared understanding of the world of politics, its jargon and rituals, of which non politicians have little awareness. Johnson and Scholes outline examples of regional culture and industry recipes in Illustration 2.4.

5. Three layers of culture (1)
Values
often written down
statements about purpose, mission, objectives
usually general/vague (e.g. Service to the Community)
Beliefs
more specific
usually overt/talked about
eg the company should not trade with Iraq 5

6. Three layers of culture (2)
Taken-for-granted assumptions
this is the real “core” of culture
difficult to identify and explain
often linked to the raison d'être of the organisation
(e.g. police forces are needed to catch criminals) 6

7. Can we shape Organisational culture?
‘something an organisation is’ not ‘something an organisation has’

8. Can we shape Organisational culture?
‘it is imperative that we understand the beliefs, symbols, myths, ideologies and folklores - the ‘culture’ - of the modern organisation as a form of social control. It is not a form of social control created and manipulated by management, but a process in which management, workers and the community at large participate alike” (Lynn-Meeks p.272).

9. Can we shape Organisational culture?
“while...culture as a whole cannot be consciously manipulated by management or any other group, culture is not necessarily static: cultures do change within organisations, and management does have more direct control than other organisational members over certain aspects of the corporate cultures, such as control over logos and officially stated missions and ethos.” (Lynn-Meeks, p )

10. Can we shape Organisational culture?
“corporate culture is describable, measurable if necessary and, within limits, alterable.” Peters and Waterman (1982)

11. The Cultural Web

12. Elements of The Cultural Web
Stories
Members of the organisation tell these to insiders and outsiders. The history of the organisation is embedded in the present through important past events and personalities, including mavericks that deviate from the norm.
Routines and Rituals
Routines are part of the culture (‘the way things are done around here’) and as such may demonstrate a beneficial competency. Rituals signal what is especially valued. They include events such as training programmes, promotion and assessment.

13. Elements of The Cultural Web
Symbols
These are demonstrated by the language and terminology used in the organisation. They include logos, offices, cars and titles.
Control Systems
These are measurement and reward systems that monitor activities designated as important.

14. Elements of The Cultural Web
Power Structures
These are most likely to be considered as integral to the nature of the paradigm. Key groups are likely to be associated with an organisation’s core assumptions and beliefs.
Organisational Structure
These are more informal ways in which the organisation works. Structures are likely to reflect power.
The Paradigm
These are the taken for granted assumptions about the organisation. They partly appear in Mission Statements and other documents but it would be a misrepresentation to say that these were the paradigm.

15. Organisational rituals and cultural change
Source: Johnson and Scholes (2003)

17. Mapping Required
Changes
FROM
WHAT IS TO
WHAT IS NEEDED 3

18. Culture and Strategy Not a BEST culture
Fit between culture and strategy
change
diversity
Culture is SELF-PERPETUATING
Managing the MIX of sub-cultures
clones
open (or covert) warfare
constructive friction 7

19. Activity Draw up a cultural web for your organisation.
Identify the reasons underlying your choices of term and their placement in the web.
What sort of culture are you trying to create? Is there a more preferable cultural web?

20. Change and Complexity
Kevin Hinde

21. Complexity
organisations are complex systems in a constant state of flux and transformation; they are complex non-linear systems. (Stacey, 1997)
“despite all the unpredictability, coherent order always emerges out of the randomness and surface chaos” (Morgan, 1997).

22. Complexity
An important aspect of chaos is that we need to understand the concept of ‘attractors’.
Some pull a system into equilibrium or near equilibrium;
for example, as a result of negative feedback loops which counteract destabilising fluctuations.

23. Complexity
Other attractors flip a system into completely new configurations.
The system is then pushed far from its original equilibrium point.
These departures are bifurcation points.
Organisations are paradoxes because they have both stability – instability

24. Complexity To manage in the midst of complexity it is important
to rethink what we mean by organisation, especially the nature of hierarchy and control
to learn the art of managing and changing contexts
learn how to use small changes to create large effects
to live with continuous transformation and emergent order as a natural state of affairs
So are we ever in control?

25. Complexity
“Ordinary management can only be practised in closed or contained change situations” (Stacey, 1997, p.71).
This requires knowledge of rational processes to secure harmony, fit, or convergence to a configuration that can only proceed incrementally.
Where a change of strategic direction is required ‘Extraordinary Management’ must be practised.
This requires the use of intuitive, political, group learning modes of decision-making control in situations of open-ended change, Stacey (1997, p.72).
Managers have to understand and develop the ‘shadow system’.

26. Change The environment is dynamic – non-linear.
How can we view our role in the change process?
Ruddle and Feeny (1997) simplify the process by relating the proposed style of change to the way the proposer of the change views the environment.
Remember that whilst you might plan for change often change is emergent.
Chaos
A type of system behaviour appearing random-like, yet is actually deterministic and is constituted by a "hidden" order or pattern.
Complexity
A description of the complex phenomena demonstrated in systems characterized by nonlinear interactive components, emergent phenomena, continuous and discontinuous change, and unpredictable outcomes.

28. The Change Gap Where are we now?
Where do we want to be in 5 years time?
How do we get there?
Goals
Issues
Strategies
Plans and implementation timetable

29. The Readiness for Change Equation?
A+B+C > D
A = Dissatisfaction with the status quo
B = Shared vision
C = First Steps (Knowledge of)
D = Costs of change
Are people dissatisfied with the status quo
Do they all share the same vision?
First step is required for the longest journey
Costs relate to psychological as well as real costs

30. Managing Change
Kevin Hinde

31. Quick Survey
Answer the following questions in turn by stating whether you a) agree, b) disagree or c) neither agree or disagree:
I understand the need for change in my organisation?
I support the need for change?
I look forward to change as a challenge?
The reasons for change are well communicated?
Change in my organisation is well managed?

32. (Source: Audit commission, 2001)

33. ‘Unfreezing’ and the management of change STAGES PRESSURES
ORGANISATIONAL
'SYMPTOMS'
STAGES
PRESSURES
FOR
CONFORMITY
Unfreezing
mechanisms
Early signals
made sense of
within paradigm
Rumours and
signals
Questions and
challenges
Organisational
anticipation
Political pressures
not to 'rock the boat'
'Felt need' for
change
Competing views
of causes of problems
and remedies
Organisational flux
Information made
sense of within
paradigm
Information collection
Political 'testing' of
support
Information building
Resistance to new
ideas
New ideas tested out
Experimentation
Refreezing
(the signalling or
confirmation of
change)
Source: Johnson and Scholes (2003) 12

34. Managing the Strategic Change Process
What approaches need to be considered by the change agent?

35. Styles of managing strategic change.
education and communication - where there is misinformation.
participation.
intervention.
manipulative - where some form of trigger is required for the change to occur.
Coercion or edict

36. Styles of managing
strategic change
Source: Johnson and Scholes (2003)

37. Note that education and communication and participation are best suited to incremental changes. or to transformation where the time horizon is long.
Coercion or edict are appropriate when transformation is required.
Intervention is an intermediate form.

38. Changes in organisational routines
Routines are 'the way things are done round here'.
These are powerful instruments to blocking the change process.
so it is important to ensure that the correct personnel are in place to implement and carry out changes and that individuals have some control of the new sytem

39. Symbolic Activity in Managing Change
There is a need to understand that the
'mundane tools that involve the creation and manipulation of symbols over time have impact to the extent that they re-shape beliefs and expectations' (Tom Peters, 1987)
The rituals or rites of organisations have an important role in affecting or consolidating change.
Note that the behaviour of the change agent is an important and powerful symbol in the change process. Language (or more generally communication) is important in this respect. Thus, change agents could be questioning, challenging, encouraging experimentation and endorsing change.

40. Political Processes
What are the political mechanisms that can be manipulated within organisations?
Resources
Elites
Subsystems
Symbolic
Here some understanding of leadership and power structures are important (See Handy Understanding Organisations; Armson and Paton eds., Organisations: cases, issues and concepts).
elites - and these may, of course, correspond to stakeholders groups.
subsystems - these are the main vehicles for communicating and consolidating the acceptance of change processes.
symbolic - symbols are required to build power, to overcome resistance and consolidate.
But, of course, there are problems with managing political systems.
Change agents have to develop tactical counter manoeuvres to those who want to resist change.

41. Political mechanisms in Organisations
Source: Johnson and Scholes (2003)

42. Political manoeuvres
and change
Source: Johnson and Scholes (2003)

43. Political manoeuvres and change
Adapted from D. Buchanan and D. Boddy, The Expertise of the Change Agent: Public performance and
backstage activity, Prentice Hall, 1992,pp. 78-9

44. Leadership and the Change Agency
What do change agents need to consider in implementing change?
Clarity of vision/direction
Context
Style

45. ability to use the political and symbolic processes
Endowed authority and empowerment of individuals
personal traits

46. Key competences
of change agents

47. Key competences of change agents
Source: From D. Buchanan and D.Boddy, The Expertise of the Change Agent:
Public performance and backstage activity, Prentice Hall, 1992, p.92-93

48. Building Effective Change
Are you ready for change and able to manage it?
Activity….

49. Learning Organisations

50. Learning Organisations
Definition:Varies from author to author
What is the distinction between learning organisation and organisational learning?
The LO is an aspiration - ‘a view of what might be possible’.(End)
OL is the activity and the process by which organisations reach their ideal. (Means)
Note we are examining organisations undergoing transformational change.

51. Learning Organisations
Do organisations have ‘Brains’?
With ‘bounded rationality’ managers have to search for solutions, perhaps randomly, with rational explanations being sought after the event.
‘Garbage Can’ model of decision making.
Borrowing from cybernetics organisational theorists have developed the ideas of single and double looped learning.

54. Feedback
Negative and positive feedback are important aspects of the learning process.
It is only by accepting errors are possible that managers can ensure that strategic direction involves inclusive ownership.

55. Emergence Thus, there is a need for managers to
encourage the ‘emergent’ organisation
create designs that facilitate learning.
Learning organisations involve all members of the organisation sharing information and knowledge

56. PSOs and the LO
What factors encourage moves towards a LO in public services?
Pressures from without and within
Government initiatives: Best Value, CPA , League Tables, encouragement of best practice, etc.
Citizens looking for value for money, requiring greater information, interested in democracy and accountability, etc.
Managers (politicians) looking to be professional, wanting to improve their job market (electoral) prospects, interested in public issues.
Examples of organisational learning
Creation of self evaluation processes (e.g. IIP, EFQM)
Creation of organisational processes, which may be tied to the above (e.g. training, appraisal, cascading, Futures thinking)