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Understanding and Building
                Organizational Culture

                                General Assembly
                             Tuesday Oct 11, 2011
                        Elliot Felix, brightspot strategy


©brightspot strategy 2011. All Rights Reserved.
agenda
Objective: Through presentations, discussions, and exercises, learn
how to understand, assess, and build an organizational culture that
expresses your values and brand, attracts and retains talent, and
provides a great experience for your employees and customers. 	
  

6:00 – 6:05	
               Agenda and Introductions	
  

6:05 – 6:25	
               Understanding Culture, including exercise 	
  

6:25 – 6:30	
               Q & A	
  

6:30 – 6:55	
               Assessing Culture, including exercise 	
  

6:55 – 7:00	
               Q & A	
  

7:00 – 7:15                 Building Culture

7:15 – 7:30	
               Q & A	
  

            ©brightspot strategy 2011 All Rights Reserved.      Organizational Culture   2
understanding culture




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   3
organizational culture
What is organizational culture?
How do you define it?




      ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   4
understanding groups
 The culture of a group is like the personality of an individual. To
 understtand culture, we first have to understand groups. The
 two core functions of a group1:
 internal integration                                                external adaptation




1. Edgar Schein Process Consulting Revisited
                    ©brightspot strategy 2011 All Rights Reserved.              Organizational Culture   5
understanding groups
The key attributes of a group are boundary definition, task
accomplishment, and interpersonal interaction. Each of these
can be thought of in terms of content, process, and structure.
Groups must also have some degree of shared history (Schein).




         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   6
understanding groups
The key group attributes according to Schein:

                      Boundary                                Task                Interpersonal
                     Management                          Accomplishment            Interaction

                 Who is in and who                                              Members feelings
Content                                                          Agenda
                      is out?                                                   toward each other

                       Processes of                          Problem-solving
                                                                                    Interpersonal
Process                 boundary                              and decision-
                                                                                      Processes
                       management                                making

                         Recurring                           Recurring task        Formal rules in
                       processes for                           processes,            relation to
Structure
                        maintaining                          organizational         authority and
                        boundaries                              structure             intimacy

            ©brightspot strategy 2011 All Rights Reserved.                     Organizational Culture   7
culture defined
culture (arts)
“the arts and other manifestations of human intellectual achievement
regarded collectively (OED).”

culture (anthropology)
“historically transmitted pattern of meanings embodied in symbols, a
system of inherited conceptions expressed in symbolic forms by means
of which men communicate, perpetuate, and develop their knowledge
about and their attitudes toward life (Clifford Gertz).”

culture (organizational)
“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 (Edgar Schein)1.”
1. Edgar Schein Organizational Culture and Leadership

                  ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   8
organizational culture defined

                                    :
                         al culture            the world
           organ ization              apting to interact
                       pattern for ad     embers
                   on                   m
           a comm g sense of how
                    in
            and mak


culture (organizational)
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 (Edgar Schein)
1. Edgar Schein Organizational Culture and Leadership

                  ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   9
levels of culture
Schein defines three levels of culture:

                                         Contents               Characteristic


Artifacts and           Visible organizational             Easy to see but hard to
Behaviors               structures and processes           decipher

Espoused
                        Strategies, goals, and
Beliefs and                                                Espoused justifications
                        philosophies
Values

                        Unconscious, take-for-
Underlying              granted beliefs,                   Ultimate source of values
Assumptions             perceptions, thoughts,             and actions
                        and feelings

          ©brightspot strategy 2011 All Rights Reserved.          Organizational Culture   10
expression of culture
Organizational Culture is expressed through:

Values                    Skills                           Habits of mind                 Rewards




                                                           flickr gelato alla prugna       flickr michaelrighi



Rituals                  Norms                             Symbols                         Environment




          ©brightspot strategy 2011 All Rights Reserved.                               Organizational Culture    11
expression of culture
Organizational Culture is expressed through:
                                                                                                stories
Values                    Skills                           Habits of mind                 Rewards




                                                           flickr gelato alla prugna       flickr michaelrighi



Rituals                  Norms                             Symbols                         Environment




          ©brightspot strategy 2011 All Rights Reserved.                               Organizational Culture    12
expression exercise
Cultural Expression Mad Libs
Instructions: Take 5 minutes to complete the madlib below

From our <symbol(s)/artifact(s)> you can see that we value <belief/
value(s)> and so we tend to <way of thinking>, are able to <skill(s)>,
and regularly <ritual/behavior>, creating a <climate/environment> and
this is reinforced by our <norm/rule> and by <reward>.


Example
From our publications you can see that we value solving complex
problems and so we tend to constantly take on new challenges are able
to think on our feet, and regularly share what we’ve learned, creating a
academic climate and this is reinforced by our utilization factors and by
who goes to conferences.

See Also: Value Prop framework
For <customer> who <motivation> we deliver <offering> with <differentiator> that <impact>

              ©brightspot strategy 2011 All Rights Reserved.       Organizational Culture   13
questions?




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   14
assessing culture




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   15
assessing culture
Schein’s attributes of a group (along with the different modes in
which culture is expressed) can be used as a basis for
qualitatively assessing your organizational culture:


               Boundary	
   Can you attract and retain talent?	
  

            Interaction	
   Are you satisfied with how people interact?	
  

Task Accomplishment	
   Are people able to get their work done?	
  

                   Content	
   Are your product/service and culture aligned?	
  

                   Process	
   Are your processes/tools/methods working?	
  

                Structure Does your organization reflect your values?



          ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   16
competing values1 framework
Organizational culture is the
product of how different
values interact and compete
with each other – whether
an organization is fixed or
flexible and internally or
externally defined.
These two axes can be further
understood according to 6
factors:
1.  Dominate Characteristics
2.  Leadership Style
3.  Employee Management
4.  Organizational Glue
5.  Strategic Emphasis
6.  Criteria for Success
Notes:
1. The Competing Values Framework was developed by and is copyright of Cameron and Quinn.

                ©brightspot strategy 2011 All Rights Reserved.                 Organizational Culture   17
competing values exercise




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   18
competing values exercise

Instructions (15mins)
1.  Fold the sheet in half
2.  Review and discuss the first question and as a group, decide the A,
    B, C, and D point values for each question in 5 point increments
    (must total to 50 points) (e.g.: A = 50 or A = 20 & B, C, & D = 10
    each)
3.  On the diagram at right, draw a dot at each of the point values in
    each quadrant and write the # of the question next to each dot
4.  If there are point values in different quadrants, connect the dots to
    make a shape
5.  Repeat for questions 2 through 6
6.  We will discuss as a group in 15 minutes.



           ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   19
questions?




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   20
building culture




      ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   21
building culture
Once your current organizational culture is understood and
evaluated, you can take steps to move toward the culture you
are looking for in the future.
Complete                              Review the          Review how it is
competing values                      group               expressed and
framework for                         characteristics:    work backwards:
current and future:                   •  Boundary         •  Values
                                      •  Interaction      •  Rules/Norms
                                      •  Task             •  Symbols/Artifacts
                                         accomplishment   •  Habits of mind
                                      •  Content          •  Skills
                                      •  Process          •  Rewards
                                      •  Structure        •  Climate
                                                          •  Stories
         ©brightspot strategy 2011 All Rights Reserved.     Organizational Culture   22
values
Uncover and express the values of your organization and tie
this to your mission – increasingly, to be successful, your
organization must function more like a cause than a company.




         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   23
symbols and artifacts
Make culture concrete and consistent through the symbols you
have and reference and also with the artifacts you create.




         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   24
norms, rules, and rituals
Decide which rules need to be expressed (if any) and how you
wish to enforce them – are they written down? modeled by
leadership and influencers? memorialized in rituals?




                                                                        image © metropolis


         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture      25
habits of mind
Think about the habits of mind and ways of doing things that
make you unique. Distill these to a set of guiding principles or
key strategies that can be described, taught, and updated.




          ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   26
skills and development
Consider how people grow and develop within the organization,
what skills are valued, how they are acquired, and how people
enter the organization.




workshops                                                 apprenticeships
         ©brightspot strategy 2011 All Rights Reserved.               Organizational Culture   27
rewards
Review how you reward success to be sure your not dampening
intrinsic motivations with external incentives. Create a range of
different means of giving recognition.




                                                          v	
  

                                                                  source: lifehacker.com




conferences      photo: Jeremy Withers     unstructured time
         ©brightspot strategy 2011 All Rights Reserved.                                    Organizational Culture   28
environment
your environment communicates your brand and values 24/7 –
whether you like it or not – and so needs to be considered so as
to send the right messages and express your culture.




Google                          image / design: DEGW      JetBlue Terminal 5        flickr: joe schlabotnik


         ©brightspot strategy 2011 All Rights Reserved.                Organizational Culture         29
stories
Use stories to communicate who you are and what you value.
For example, develop and exploit your “creation myth”




WD-40                           Apple
         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   30
building culture
                       Tips for getting started:
                       1.  Recognize that leadership creates and changes
                           culture, but management works within it
                       2.  Know that culture is hard to change because it
                           provides valued stability, by definition
                       3.  Engage people in understanding and
                           evaluation as a collaborative process
                       4.  Look for ways to be concrete (e.g.: workspace)
                       5.  Lead by example – organizations take on the
                           personality of their leaders by default
                       6.  Repetition is golden
                       7.  How you spend your time speaks volumes
                       8.  The culture inside your organization affect
                           interactions with those outside of it

      ©brightspot strategy 2011 All Rights Reserved.    Organizational Culture   31
building culture exercise
Take a few minutes to
write down some
observations about your
organizational culture and
steps you will take to
sustain or improve it.

We will discuss as a group
as we wrap up and take a
final round of questions.




         ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   32
questions?




     ©brightspot strategy 2011 All Rights Reserved.   Organizational Culture   33

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Understanding and Building Organizational Culture

  • 1. Understanding and Building Organizational Culture General Assembly Tuesday Oct 11, 2011 Elliot Felix, brightspot strategy ©brightspot strategy 2011. All Rights Reserved.
  • 2. agenda Objective: Through presentations, discussions, and exercises, learn how to understand, assess, and build an organizational culture that expresses your values and brand, attracts and retains talent, and provides a great experience for your employees and customers.   6:00 – 6:05   Agenda and Introductions   6:05 – 6:25   Understanding Culture, including exercise   6:25 – 6:30   Q & A   6:30 – 6:55   Assessing Culture, including exercise   6:55 – 7:00   Q & A   7:00 – 7:15 Building Culture 7:15 – 7:30   Q & A   ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 2
  • 3. understanding culture ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 3
  • 4. organizational culture What is organizational culture? How do you define it? ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 4
  • 5. understanding groups The culture of a group is like the personality of an individual. To understtand culture, we first have to understand groups. The two core functions of a group1: internal integration external adaptation 1. Edgar Schein Process Consulting Revisited ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 5
  • 6. understanding groups The key attributes of a group are boundary definition, task accomplishment, and interpersonal interaction. Each of these can be thought of in terms of content, process, and structure. Groups must also have some degree of shared history (Schein). ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 6
  • 7. understanding groups The key group attributes according to Schein: Boundary Task Interpersonal Management Accomplishment Interaction Who is in and who Members feelings Content Agenda is out? toward each other Processes of Problem-solving Interpersonal Process boundary and decision- Processes management making Recurring Recurring task Formal rules in processes for processes, relation to Structure maintaining organizational authority and boundaries structure intimacy ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 7
  • 8. culture defined culture (arts) “the arts and other manifestations of human intellectual achievement regarded collectively (OED).” culture (anthropology) “historically transmitted pattern of meanings embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and their attitudes toward life (Clifford Gertz).” culture (organizational) “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 (Edgar Schein)1.” 1. Edgar Schein Organizational Culture and Leadership ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 8
  • 9. organizational culture defined : al culture the world organ ization apting to interact pattern for ad embers on m a comm g sense of how in and mak culture (organizational) 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 (Edgar Schein) 1. Edgar Schein Organizational Culture and Leadership ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 9
  • 10. levels of culture Schein defines three levels of culture: Contents Characteristic Artifacts and Visible organizational Easy to see but hard to Behaviors structures and processes decipher Espoused Strategies, goals, and Beliefs and Espoused justifications philosophies Values Unconscious, take-for- Underlying granted beliefs, Ultimate source of values Assumptions perceptions, thoughts, and actions and feelings ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 10
  • 11. expression of culture Organizational Culture is expressed through: Values Skills Habits of mind Rewards flickr gelato alla prugna flickr michaelrighi Rituals Norms Symbols Environment ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 11
  • 12. expression of culture Organizational Culture is expressed through: stories Values Skills Habits of mind Rewards flickr gelato alla prugna flickr michaelrighi Rituals Norms Symbols Environment ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 12
  • 13. expression exercise Cultural Expression Mad Libs Instructions: Take 5 minutes to complete the madlib below From our <symbol(s)/artifact(s)> you can see that we value <belief/ value(s)> and so we tend to <way of thinking>, are able to <skill(s)>, and regularly <ritual/behavior>, creating a <climate/environment> and this is reinforced by our <norm/rule> and by <reward>. Example From our publications you can see that we value solving complex problems and so we tend to constantly take on new challenges are able to think on our feet, and regularly share what we’ve learned, creating a academic climate and this is reinforced by our utilization factors and by who goes to conferences. See Also: Value Prop framework For <customer> who <motivation> we deliver <offering> with <differentiator> that <impact> ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 13
  • 14. questions? ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 14
  • 15. assessing culture ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 15
  • 16. assessing culture Schein’s attributes of a group (along with the different modes in which culture is expressed) can be used as a basis for qualitatively assessing your organizational culture: Boundary   Can you attract and retain talent?   Interaction   Are you satisfied with how people interact?   Task Accomplishment   Are people able to get their work done?   Content   Are your product/service and culture aligned?   Process   Are your processes/tools/methods working?   Structure Does your organization reflect your values? ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 16
  • 17. competing values1 framework Organizational culture is the product of how different values interact and compete with each other – whether an organization is fixed or flexible and internally or externally defined. These two axes can be further understood according to 6 factors: 1.  Dominate Characteristics 2.  Leadership Style 3.  Employee Management 4.  Organizational Glue 5.  Strategic Emphasis 6.  Criteria for Success Notes: 1. The Competing Values Framework was developed by and is copyright of Cameron and Quinn. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 17
  • 18. competing values exercise ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 18
  • 19. competing values exercise Instructions (15mins) 1.  Fold the sheet in half 2.  Review and discuss the first question and as a group, decide the A, B, C, and D point values for each question in 5 point increments (must total to 50 points) (e.g.: A = 50 or A = 20 & B, C, & D = 10 each) 3.  On the diagram at right, draw a dot at each of the point values in each quadrant and write the # of the question next to each dot 4.  If there are point values in different quadrants, connect the dots to make a shape 5.  Repeat for questions 2 through 6 6.  We will discuss as a group in 15 minutes. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 19
  • 20. questions? ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 20
  • 21. building culture ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 21
  • 22. building culture Once your current organizational culture is understood and evaluated, you can take steps to move toward the culture you are looking for in the future. Complete Review the Review how it is competing values group expressed and framework for characteristics: work backwards: current and future: •  Boundary •  Values •  Interaction •  Rules/Norms •  Task •  Symbols/Artifacts accomplishment •  Habits of mind •  Content •  Skills •  Process •  Rewards •  Structure •  Climate •  Stories ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 22
  • 23. values Uncover and express the values of your organization and tie this to your mission – increasingly, to be successful, your organization must function more like a cause than a company. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 23
  • 24. symbols and artifacts Make culture concrete and consistent through the symbols you have and reference and also with the artifacts you create. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 24
  • 25. norms, rules, and rituals Decide which rules need to be expressed (if any) and how you wish to enforce them – are they written down? modeled by leadership and influencers? memorialized in rituals? image © metropolis ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 25
  • 26. habits of mind Think about the habits of mind and ways of doing things that make you unique. Distill these to a set of guiding principles or key strategies that can be described, taught, and updated. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 26
  • 27. skills and development Consider how people grow and develop within the organization, what skills are valued, how they are acquired, and how people enter the organization. workshops apprenticeships ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 27
  • 28. rewards Review how you reward success to be sure your not dampening intrinsic motivations with external incentives. Create a range of different means of giving recognition. v   source: lifehacker.com conferences photo: Jeremy Withers unstructured time ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 28
  • 29. environment your environment communicates your brand and values 24/7 – whether you like it or not – and so needs to be considered so as to send the right messages and express your culture. Google image / design: DEGW JetBlue Terminal 5 flickr: joe schlabotnik ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 29
  • 30. stories Use stories to communicate who you are and what you value. For example, develop and exploit your “creation myth” WD-40 Apple ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 30
  • 31. building culture Tips for getting started: 1.  Recognize that leadership creates and changes culture, but management works within it 2.  Know that culture is hard to change because it provides valued stability, by definition 3.  Engage people in understanding and evaluation as a collaborative process 4.  Look for ways to be concrete (e.g.: workspace) 5.  Lead by example – organizations take on the personality of their leaders by default 6.  Repetition is golden 7.  How you spend your time speaks volumes 8.  The culture inside your organization affect interactions with those outside of it ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 31
  • 32. building culture exercise Take a few minutes to write down some observations about your organizational culture and steps you will take to sustain or improve it. We will discuss as a group as we wrap up and take a final round of questions. ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 32
  • 33. questions? ©brightspot strategy 2011 All Rights Reserved. Organizational Culture 33