Making change for the better in organisations

Most people understand the concept of organisational culture and its relevance to satisfying staff and customers, retaining talent and an employment brand. But when it becomes necessary to reform the internal culture, who drives it, and how do employees feel about it?

Don Purdon, managing director for Grafton Consulting Group, says today's change managers take an evolutionary rather than a revolutionary approach to culture change to avoid offending or unsettling staff.

"In the past the CEO used to say 'we need to change our internal culture' and there would be a series of distinct and well-publicised interventions," he says.

"Today the interventions are still there, but managers are not talking about culture change."

A public statement by an organisation that it is reforming internal culture can lead staff to believe that culture is flawed and they are part of an unhealthy organisation. This perception can be demoralising and is often incorrect, because existing company culture will have positive components as well as some that need changing, says Purdon.

Further, as the 'heart' of an organisation is often maintained by core employees who don't believe change is needed, it is important to canvass these people for their views and listen to them before the organisation tries to change.

Marc Burrage, executive general manager for Hudson Consulting, says successfully managing culture change requires delicacy.

"Culture is the DNA of the company so it's very important [to employees]. From an employee's perspective, if there is a culture change programme, there's an [immediate] belief there is something inherently wrong," says Burrage.

So how do senior managers initiate necessary cultural change and simultaneously work with staff to build mutual understanding and gather support?

Ideally, managers will tread lightly, says Purdon, comparing current internal culture with the desired culture and analysing the gap.

Burrage says they also need to align the desired culture to business objectives and to listen to employees and customers to avoid developing an inaccurate or preconceived notion about what the culture of the organisation should be.

"It's important to start a [culture change] journey with an identified destination and a message you will share with employees to get their support," says Burrage.

He says linking culture change initiatives at both operational and personal levels to individual employees empowers them to focus on the desired outcome. Integrity in the leadership is critical, as is communicating the lighter side of change.

"It's all right to say 'we are going over the hill, follow me'; employees need to know it's going to be fun too," says Burrage.

When change has started, organisations need to have feedback processes in place to ensure as much staff buy-in as possible. The most successful culture changes occur within organisations that can clarify their mission and allow people to plan their own way towards the same destination, says Burrage.

"You can't be overly prescriptive, just map the destination and journey. It's important to get as many people as possible moving in the same direction, even if they ways they get there differ," he says.

For example, some people like to be empowered and made accountable for change while others need to be directed; some staff need to change their behaviours and some don't.

"Some tension is healthy," says Burrage. "You don't want an organisation full of 'yes' people, but you do need a frame of reference everyone works within."

Purdon says leaders need to decide whether the change will be driven from the top down, with edicts from a CEO, or bottom up, where the CEO hands over the responsibility and planning of culture change to employees.

He says some CEOs go overboard on the staff buy-in process and then find it difficult to get agreement.

"Management should determine what needs to happen and then get people involved in the 'how to'; that will deliver the right mix of leadership and employee buy-in," says Purdon.

Burrage says managers also need to realise internal culture change initiatives alone won't deliver improved performance and customer satisfaction - organisational structure, performance management, staff incentives, rewards and even effective information systems are just as important.

An action plan might begin with managers brainstorming new policies and practices and desired behaviours before moving on to the 'how to' with staff.

"It's about ensuring the leadership of the organisation has a clear understanding of the future and can reinforce that through communications and actions that have breadth and depth for key stakeholders," says Burrage.

But why spend so much energy on achieving staff buy-in when some are bound to remain disgruntled? Aren't difficult staff one reason an organisation has a problematic internal culture in the first place?

Sometimes leaders may need to force change, says Burrage, and it's impossible to please everyone.

"You need to establish the size of the change needed and the speed. Does it require major surgery or are we talking about minor cuts and bruises here? [Either way], you need to have integrity and be transparent with staff by sharing all the information you can share. Staff can then make an informed choice about what they want to do."

He says the worst tactic is covert change, and the best chance organisational leaders have of getting employee buy-in is when employees know about change initiatives and the reasons for them and decide to support them for their own benefit.

It's obviously undesirable to alienate employees in an era of profound talent shortage, says Purdon, so while a new CEO after change could once "cut hard and fast" by replacing 10 or 20 per cent of positions with people who supported the new culture, it's now worth taking the time to ensure better staff buy-in.

Problems between managers and staff during culture change happen because of the gap between the manager's vision for the company and the extent to which things actually change for employees at their desks - in other words, staff will resist culture change initiatives until they see them in action and realise the benefits.

"I advise companies to have the first change initiative well designed, the second one ready to go, and the third under construction," says Purdon. "The goal is to avoid a big [time] lag for employees."

Examples of initiatives include structural changes such as new divisions and departments, new leaders, a new IT system or a company merger.

Purdon says it's possible to transform company culture without changing the heart of the company.

"Enduring companies have a set of values which never change and that's why they survive; [in these situations] enhance the culture rather than change it."


CULTURE CHANGE

* Understand the market you operate in; understand your organisation and its view of the world. Find out what customers (external) and what staff (internal) believe.

* Decide on a destination that allows the external perception of the organisation and the internal reality to align.

* Examine fundamental changes that may be needed - for example, why is the business so slow? Is it the way personnel are deployed, it is specific personnel, the way IT systems are set up, or leadership style? Ask: what needs to happen?

* Conduct staff research and solicit feedback. Listen.

* Execute well-timed initiatives, follow through on promises and monitor the positive or negative effects of change on staff.