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For CIOs tackling culture change, knowing what to change is often harder
than executing the changes itself.
Key Findings
IT culture is determined by four main working styles, which in turn influence four primary
aspects of organizational culture.
Failure to understand the key drivers of culture and their attributes, and to make informed
choices during transformations are the main reasons for culture issues in transformations.
Culture clashes happen because leadership lets them happen; don't let personal preference
dictate working styles that strongly influence culture.
Culture change is a process of carefully choosing the desired attributes and behaviors of the
future culture and then consistently encouraging and supporting them over a period of time.
Recommendations
Do not define decision rights, measurement strategies, engagement methods and work styles
based solely on personal preference, or past experience. Pick the styles that will have the
greatest impact on business outcomes/mission success.
Don't look for a single "best" culture: Cultural attributes need to fit the nature of the challenges
faced and the outcomes desired.
Make sure everybody understands the choices you made and why.
Incorporate your chosen cultural attributes and behaviors in everybody's personal brand.
Table of Contents
Analysis.................................................................................................................................................. 2
Cultures Are Easy to Change and Easy to Break...............................................................................2
List of Tables
Table 1. Decision-Making Styles............................................................................................................. 7
Table 2. Measurement Styles.................................................................................................................. 9
Table 3. Engagement Styles................................................................................................................. 11
Table 4. Working Styles........................................................................................................................ 13
Table 5. Cultural Attributes and Their Effects on Management Style...................................................... 14
List of Figures
Figure 1. Key Attributes of Culture.......................................................................................................... 4
Figure 2. Impact of Decision-Making Styles on IT Culture........................................................................6
Figure 3. Impact of Measurement Styles on IT Culture ........................................................................... 8
Figure 4. Impact of Employee Engagement Styles on IT Culture........................................................... 10
Figure 5. Impact of Working Styles on IT Culture...................................................................................12
Analysis
Cultures Are Easy to Change and Easy to Break
As we discussed in "Culture Change Is Easier Than You Think," people are wired to adapt their
professional or casual social behaviors to the contexts they're in. Since culture is really just a set of
default organizational behaviors, this makes changing culture easier than is often assumed. As
such, it is incumbent on CIOs to explicitly set those behaviors that will lead to success in the future.
All too often, however, the reasons and opportunities for culture change, such as a large
transformation, merger or acquisition, are squandered because CIOs are focused on returning the
business results required of the transformation and not on changing people's behaviors. This results
in people reverting back to their default behaviors and culture clashes. Imagine:
A small Midwestern U.S. publishing company buys another such company in Denmark. The two
publishers have very different creative styles. In the acquired company, ideas for stories are put up
on a wall, and the editors and creative staff engage in a "survivalist" approach, poking holes and
tearing ideas down until only the fittest remain. In the acquiring company, the process is different.
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Ideas are still put up on the wall, but the team uses an "evolutionary" approach, where they try to
build each idea up until the best float to the top.
Which is best: survivalist or evolutionary? It is difficult to tell, since both companies are successful.
Some leaders may argue that the different approaches are really just factors of differences between
the underlying Midwestern U.S. and Denmark cultures. That may also be true, but it should not be
an excuse not to act. The one thing that we can determine for certain in the case above is that, if
our aim is to truly integrate the organizations, both creative processes cannot exist simultaneously.
The answer may be merging the best of the two processes, for example: using the survivalist
approach early in the process to narrow ideas to the best ones, and then applying the evolutionary
approach to ensure that everyone has contributed and is bought into the ideas that remain. Or it
could simply be just picking one of them and moving on. What we cannot do is expect things will
just sort themselves out. We have to have the courage to make explicit changes to the way we do
things around here to get the culture we want. This is the hard part of culture change knowing
what to change.
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When we think of organizational culture, just trying to fix what we can and should change can be
overwhelming. However, by selecting a single anchor point, the customer experience (as we
recommend in "Culture Change Is Easier Than You Think") making this decision becomes easier. We
need but ask ourselves, which part of our culture most effects the customer experience, and our
choices will become much clearer. Figure 1 describes the attributes of organizational culture that
most affect the customer experience.
"How we make decisions" speaks to the general leadership style of IT and generally affects the
overall responsiveness or tempo of the culture.
"How we engage" focuses on how employees collaborate internally and with external
stakeholders, which affects the employee experience.
"How we measure" focuses on IT metrics and measurements and how they affect the overall
focus or direction of the IT culture.
"How we work" looks at the working style of IT and how IT learns, experiments or develops its
solutions for the business.
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Understanding these four attributes and their characteristics helps CIOs make informed choices
when trying to change culture.
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Definition
Positive Effect On
Negative Effect On
Authoritarian
Accountability
Measurability
Strategic focus
Tactical focus
Individual initiative
Reaction time
Consistency
Decision latency
Leader of One
Individual initiative
Group Accountability
Decision latency
Individual accountability
Creativity
Consistency
Measurability
Quality
Strategic focus
Bureaucratic
Consistency
Measurability
Resilience
Tactical focus
Initiative
Readiness for change
Accountability
Collective
Group accountability
Reaction time
Sustainability
Innovation
Strategic focus
Tactical focus
Reaction time
Decision latency
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speed of an organization, measurements determine the direction. Consider the following: One
organization measures service availability, whereas another measures service recoverability both
measures are fundamentally similar in the context of business outcome (that a given service is
available), but they are very different in implication. One implies managing risk, while the other
implies problem solving. How would measuring one versus the other affect architecture, technical
decisions and organizational culture?
Figure 3 and Table 2 break measurement styles into four quadrants.
Figure 3. Impact of Measurement Styles on IT Culture
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Definition
Positive Impact On
Negative Impact
On
Just Do Things
Strategic focus
Quality
Resiliency
Do Better
Things
Strategic focus
Innovation
Business outcomes
Adaptability to changing business
priorities
Quality
Resiliency
Don't Do Wrong
Things
Consistency
Quality
Resiliency
Agility
Innovation
Do Things Well
Strategic accomplishments
Measurability against business
outcomes
Tactical results
Agility
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Definition
Positive Impact On
Negative Impact On
Selling
Agility
Decision latency
Cocreating
Personal commitment or
engagement
Consensus
Time to develop the solution
Innovation
Telling
Clarity
Sustainability
Strategic focus
Buy-in
Engagement
Time to develop the
solution
Testing
Consensus
Time to develop the solution
Quality
Personal commitment
Creativity
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Definition
Positive Impact On
Negative Impact On
Iterate
Engagement
Incremental improvement
Transition state quality
Risk
Predictability
Cost
Innovation
Experiment
Breakthrough innovation
Engagement
Creativity
Agility
Risk
Transition state quality
and reliability
Predictability
Cost
Plan and
Execute
Predictability
Transition state reliability
Resilience
Innovation learning
Engagement
Agility
Predictability
Transition state quality and
reliability
Cost
Agility
Innovation
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Direction
Collaboration
Value
Personal Empowerment
Accountability
Risk Aversion
Engagement
Process/Metrics Focus
The arrows in these charts don't suggest good or bad; rather, they show a positive or negative
effect on several characteristics directly associated with the four attributes of culture described
previously. This does not suggest that increasing them should always be the goal. Each attribute is
determined by a number of trade-offs that need to be considered. The demands and challenges
posed by the organization's goals, tasks and environment determine what the optimal trade-off is
for each of the attributes.
Some organizations benefit from the more deliberate pace of lowering an attribute (for example,
chemical manufacturing demands a lower tempo).
As organizations increase tempo:
They will require higher personal empowerment and increased personal accountability.
Engagement can go either up or down (for example: in very high-tempo, very mission-critical
organizations, people can become disengaged as the mission takes over).
Organizations have fewer high-impact measures, and focus on repeatable processes will go
down.
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Risk aversion will tend to increase as willingness to stray from the core mission erodes. Number
and degree of measurements (which are a surrogate for decision making) will also increase.
Personal empowerment and accountability will increase as each worker is aware of and
responsible for value.
Risk aversion can go either way and is largely dependent on the risks associated with value
creation.
Process and metrics focus can go either way depending on the need for measurement in value
creation.
Conclusion
For CIOs, the hard part of change is often determining what to change. Traditional approaches to
organizational change focus on process, metrics and organizational structure. These are lagging
indicators to behavior, and such changes often fail to result in the desired behavioral changes.
Instead, CIOs should take a hard look at decision making, engagement, measurement and working
styles as the sources of organizational behavior and focus their change efforts on determining and
supporting changes in these styles.
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