 
Change Initiatives Fail Because of the Culture
By Larry E. Senn & John R. Childress
Between plans and reality lie years of habits, customs, unwritten ground rules, parochialism, and vested interests: the corporate culture. And make no mistake, a corporate culture exists at every business, no matter how small or large it might be. Culture can not only stop a change effort dead in its tracks, it can also propel it to great heights. Wisdom is understanding the power of culture and how to get it
to work for you instead of against you during organizational change.
Corporate culture can often stop change efforts dead in their tracks. |
Why is it that initiatives and strategies with great promise don't live up to their expectations? A window of competitive opportunity is evident, sound planning and processes are often in place, but the advantage doesn't fully materialize. The story often sounds like some version of the following:
-The numbers showed the merger would really pay off; but we've lost some key customers, our best executives are leaving for other companies, and we seem to be having a real clash of cultures.
-The reorganization was supposed to have broken down the barriers between divisions and created a more collaborative organization. Instead, we seem to have created new boundaries and turf issues.
-The new strategy sounded great, but we haven't been able to execute it with our slow moving, risk-averse, bureaucratic culture.
-The new IT system was supposed to be up and running last quarter, saving us time and money. There is a lot of finger pointing going on now because it's behind schedule and it looks like it won't deliver all we thought
it would.
-The analysis showed we'd make dramatic savings through reengineering, but they haven't come through yet. Where are the results? And why is everyone so upset?
-We just completed another record quarter, and I know I should be feeling- good. The fact is, I'm paying too big a price personally to get results around here, and I don't know if I want to stay in this game.
-We've got a few great quality improvement teams in place, but it is not widespread. We haven't been able to build it into the fabric of the organization.
More than just anecdotal evidence exists that change initiatives fail more often than they succeed. A Harvard Business Review article by Nohia and Berkley cites a survey showing that 75% of the managers polled were unhappy with change initiatives underway. Since the current business environment warrants
these initiatives, why do they fail?
The answer is clear. Most change initiatives focus on the operational and technical side. What they too often. ignore, or at best give lip service to, is the human side- the behavioral side of change. Anyone who has ever attempted to implement a change of any kind has experienced the phenomenon of resistance to change by people and institutions.
The business world is beginning to appreciate the power of cultural habits. |
Such was our experience in our early history as performance improvement consultants. We found that it was easier to decide on change than to get people to change.
People and organizations are creatures of habit, and changing habits is much harder than changing structures or systems. It seemed to us that organizations, like people, had personalities, and to ignore or not deal with an organization's personality traits could be fatal to our change efforts. At that time few knew what we were talking about, and we were the only "culture shaping" game in town.
Today, people recognize those personality traits as "corporate culture," and the business world
is slowly beginning to appreciate the power of cultural habits. Most change initiatives have at least token elements of "change management." Unfortunately, most organizations don't address culture barriers as vigorously or systematically as needed. We have long known that the only way to ensure the maximum success of any broad-based change initiative is to systematically deal with the corporate culture.
A company's culture can be one of its greatest strengths--or weaknesses. |
To truly change the corporation, you need to change the culture.
It is also interesting to. note that James Champy, in Reengineering Management, states, "Everything we've learned drives toward one solid conclusion: The rules of governance (and self-governance) for effective business enterprises today are being determined by their culture, not their organizational structure."
The reason it's hard to implement change, teams are often dysfunctional, and people are so stressed at work, is because of what we call the Jaws of Culture.
"A corporation's culture can be its greatest strength when it is consistent with its strategies. But a culture that prevents a company from meeting competitive threats, or from adapting to changing economic or social environments, can lead to the company's stagnation and ultimate demise," is how Business Week put it.
Some of,the cultural barriers that cause change initiatives to fail are:
* Hierarchical structure and top down leadership style;
* Internal competition between departments-turf and "we-they;"
* Heavy entitlement mind-set and poor empowerment;
* Lack of accountability, excessive blaming;
* An "observer-critic" culture that kills new ideas;
* Reluctance to accept ideas from other organizations (the "not-invented-here" syndrome);
* Turf issues and power struggles;
* Groups forming under the protection of ' a politically strong individual which distance themselves from the change process;
* Lip-service and "malicious obedience"-pocket vetos;
* Bureaucracy and resistance to changing the status quo;
* Reinforcement systems that ignore customer satisfaction;
* Lack of trust in the company and between groups;
* Top management calls for behavior change but doesn't walk the talk;
All change initiatives must pass through the jaws of culture. Most get. chewed-up, spit out and forgotten long before they ever accomplish their objectives. The jaws consist of the major cultural barriers that form the ingrained habit patterns of company and individual behavior.
While each company and each team is different, they all have their own barriers that comprise their "jaws" of culture. What are yours?
Culture barriers to change are often hidden in the fabric of the organization and are difficult to see without the aid of a comprehensive "culture audit." Cultural barriers can quickly show up in dysfunctional behaviors once the change initiative begins.
Most organizations and leaders, no matter how successful, face some dysfunction in their teams. Getting results and implementing change in environments with these barriers often seems to extract too high a price. Do you know the cost of your group or company's cultural barriers?
The answer for most companies is no. Fortunately, there is a solution to this perplexing situation. It comes when developing the leadership skills that allow.people to achieve more success with less stress. And most importantly, it lies in creating healthier, high-performance cultures, in which individuals can find balance and fulfillment in their professional and personal lives.
Everyone influences the culture around them in a variety of different ways. |
Everyone influences the culture around them, in their organization, their department, or their own work team. Each of us casts a shadow by our own behaviors and each of us has a choice in terms of our own personal and professional development.
In addition, organizational transformation does not take place without personal transformation. If everyone waits for those above them or around them to change, no one changes. This is the time when all individuals need to take a look at themselves and decide ways in which they can change in order to more effectively deal with the changing times.
Editor's note: This column is excerpted from "The Secret of a Winning Culture: Building High Performance Teams," Gulf Publishing Co., Houston, (713) 5204444.
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