How does an organization’s culture change?

Consultants, trainers, change managers and OD consultants do not and cannot change the culture of an organization. I see that as common sense. Yet common sense is not so common.

(As an aside, this morning I read a fascinating article about back pain; if you take 1000 people off the street to give them an MRI-it is impossible for orthopaedic surgeons to predict whose back actually aches. Yet diagnostic tests for back pain are more numerous than cultural change programs).

In this post, I want to share with my readers how an organization’s culture actually changes.

1) External regulation-when the regulator steps in to dictate change, cultures start to change because things must be done differently. Safety and financial regulators are effective culture changers.

2) A one time success changes a culture, often by dumbing the organization down, lowing the level of awareness, or making it overly fat and out of touch with the changing needs of its customers. Similarly as Terry Seamon points out below in his comments, a huge failure can spark cultural change.

3) Massive immigration can change a culture by providing a ready made pool of talent that other global competitors do not have. The newly acquired competitive edge drives rapid growth which changes the culture.

4) Too much cultural socialization as well as an overdose on making values explicit can change company culture by making everyone cynical and lowering the degree of caring people feel towards success. In one company I worked for, the overdose of getting people to “buy into decisions“ caused people to check out.

5) Customers force cultural change on organizations. When I work with Asian facing units as opposed to American or EMEA facing units, the huge impact of the customer on culture is clear. The American clients drive the need for documentation, stability and predictability whilst Asian markets drive down costs, encourage innovation and show tolerance for speed over quality.

What gives with CEOs and cultural change? It is my experience that replacing a CEO is not enough to drive cultural change, unless the CEO has the “tail wind” of an external factor.

And what about consultants, trainers, change managers and OD consultants?  Well, we are midwives, easing pain and nursing things along. Not quite side show Bob, but not the drivers of cultural change. And the more you realize that, the more impact you will have.

 

 

 

 

 

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