ORGANIZATIONAL CULTURE Assumptions About External Adaptation Issues MSEL 532 – Designing Organizational Culture Sonia M. Farace Stephanie Armstrong Jan 14th, 2013 C-13 Master of Science in Executive Leadership 1 Learning Objectives 1. Leaders as entrepreneurs, are the main architects of culture 2. Culture once its formed, it influences & shapes Leadership. 3. If needed, Leadership can & must speed up culture change C-13 Master of Science in Executive Leadership 2 THREE LEVELS OF CULTURE • Conscious beliefs • Ideologies • Rationalization 3 C-13 Values & Attitudes Leadership Style Informal Groupings Power & Politics Non-confrontable BASIC ASSUMPTIONS • Unconscious, taken for granted beliefs & Values • Perceptions, Thoughts & Feelings INVISIBLE Theories in Use SPOUSED VALUES 2 Observed Behavior (difficult to decipher) VISIBLE The way we say we get things done (Informal) 1 • Language/Technology • Emotional Displays • Physical Structure • Dress Code Structures & Processes (Formal) ARTIFACTS Non-debatable Rules of behavior Self-Esteem The way we really get things done Master of Science in Executive Leadership 3 The Process of Culture Formation ...for long term growth 1. Survival in adaptation to the external environment. 2. Integration of the internal processes. C-13 Master of Science in Executive Leadership 4 Basic Assumptions Big or small, all organizations have external and internal assumptions C-13 Master of Science in Executive Leadership 5 Culture Formation • Shared Experiences • Leadership • Common Learning Group Growth & Culture Formation are the two sides of the same coin C-13 Master of Science in Executive Leadership 6 Problems of External Adaptation & Survival Mission & Strategy Goals Measurement Correction Means C-13 Master of Science in Executive Leadership 7 Mission & Strategy An organization survives & grows when obtains a shared understanding of their reason they exist F U T V U R I S T R A T E G Y I I O M I S S I O N N C-13 Master of Science in Executive Leadership 8 Goals...consensus ENGINEERING EXECUTIVES OPERATIONS …of the three cultures C-13 Master of Science in Executive Leadership 9 Means...to get things done! SKILLS RESOURCES PROCESSS SYSTEMS C-13 Master of Science in Executive Leadership 10 Measurement …improving performance 4.5 4.3 3.5 2.5 KPI #1 C-13 KPI #2 Master of Science in Executive Leadership KPI #3 Consensus on the criteria to be used in measuring the performance of current and members KPI #4 11 Error Detection & Correction… Reject the ones that don’t work Try many options… Keep the ones that do C-13 Master of Science in Executive Leadership 12 Correction …action to take if change in course is needed Consensus on repair strategies… C-13 Master of Science in Executive Leadership 13 Conclusion • Focus on the External Problems • Successful management of External Problems will determine your success …Leadership and Culture are intertwined C-13 Master of Science in Executive Leadership 14 "USD is founded and sustained by a belief in the essential goodness of creation, the worthiness of a lifelong commitment to understanding and working on behalf of the human condition." - President Mary E. Lyons