Framework 137 Adaptive Cultural Change

Introduction

Some of the changes organisations are facing are around

- adoption of new technologies, eg digital, etc

- development of new business models, eg increasing online, etc

- implementation of new ways of working, eg remote, hybrid, etc.

If you ignore the signals or fail to adapt quickly, there is a risk of becoming obsolete.

There is a strong connection between business transformation and cultural change, ie people's behaviour and organisational norms
"...companies that focus on culture were 5 times more likely to achieve breakthrough results in a digital transformation initiative than those that didn't..."
Boston Consulting Group as quoted by Rose Hollister et al, 2021

Culture is defined as a shared

- set of values (what we care about)

- beliefs (what we believe to be true

- norms of behaviour (how we do things)
"...culture exists to align effort, engender shared sense making, increase predictability, and encode organisational lessons about what does and doesn't work..."
Rose Hollister et al, 2021

Culture is dynamic and continually evolving, irrespective of whether he is done to guide it.

A good strong culture is pivotal for an organisation's overall health and competitiveness. However, the wrong culture will undermine strategy, development plans, etc
"...culture eats strategy for breakfast..."
Peter Drucker as quoted by Rose Hollister et al, 2021

"...people and culture are essential determinants of success or failure..."
Rose Hollister et al, 2021

Need to think beyond your own perspective of culture.

Despite all organisations being different, there are some essential elements required to achieve its full potential transformation.

Need a proactive approach to build the right culture, ie adaptive culture approach
"...provides a foundation for transformation. It also helps organisations overcome cultural fragmentation due to the incomplete integration of acquisitions for a legacy of growth across multiple geographies..."
Rose Hollister et al, 2021

Seven elements

Provide a cultural foundation necessary to support rapid adaptation, innovation resilience in an organisation

i) customer-centric (understanding and prioritising the needs of customers rather than focusing on products and/or, promotion and/or profit)

ii) ecosystems focus (concentrate on the well-being of all stakeholders, not just the organisation)

iii) analytical orientation (increased focus on data and analytics and less on experience or judgement)

iv) collaborative reflex (proactively engage in collaboration and teamwork rather than working in silos)

v) bias to action (focus on speed, rather than minimisation or perfection)

vi) learning mindset (engage in innovation, experimentation, etc and rapid learning; mistakes are a learning experience)

vii) leader as enabler (empower, engage, energise, etc stakeholders while holding them responsible and accountable)

NB

i) & ii) are the critical reference points in defining strategy and priorities, ie focus on the customers and networks; the next 4 elements focus on the capabilities and 'habits of mind' that shape staff's daily activities; final element is about how leaders add value.

The 7 elements are comprehensive and mutually reinforced and form the basis for an adaptive culture

(see technique 1.106 on how to assess an adaptive culture)