Organizational Culture Change

Running Head: ORGANIZATIONAL CULTURE CHANGE
Creating a Process for Organizational Culture Change
Benjamin S Cheeks
International School of Management, Paris, France
Author Note
This paper was submitted to fulfill the requirements of 7028-LORN - Leadership,
Organizations & Networks. I would like to thank Dr. Marco Tulio Zanini and my fellow ISM
doctoral and MBA students for making the class an interactive and successful learning
environment.
Correspondence concerning this article should be addressed to Benjamin S. Cheeks.
Email: bencheeks@hotmail.com

ORGANIZATIONAL CULTURE CHANGE
Cheeks, Benjamin S. 2
Abstract
Organizational culture has a powerful effect on the performance and long-term
effectiveness of organizations. Organizational culture has the power to influence employee
behaviors and increase employee commitment and productivity. Therefore, a clear
understanding of organizational culture and how to effect its change is important for
business leaders because it influences the way that organizations react to the changing
demands of the business environment. The goal of this paper is to explore what is meant by
organizational culture, why it is important, and how to change an established culture so that
it is better aligned with the organization’s strategy.
Keywords: organizational culture, culture change, change management

Introduction
Since the early 1980s, the subject of organizational culture has captured the interest
of managers, consultants, and scholars alike. The impetus of this attention is the belief that
organizational culture is an important social characteristic that influences organizational,
group, and individual behavior. Popular books (e.g., Peters & Waterman, 1982; Schein,
1985; Davis, 1984) hyped the promise of organizational culture as a way to understand how
organizations operate and succeed.
According to estimates by Hartnell, Ou, & Kinicki (2011), since 1980, over 4,600
articles have been written on organizational culture and nearly as many definitions. Despite
the wide variety of meanings for organizational culture, a few concepts are generally
accepted among researchers. First, organizational culture is a system of values, beliefs, and
assumptions shared among members that define what is important and norms that define
appropriate attitude and behaviors for organizational members (Schein, 2004; O’Reilly &
Chatman, 1996; Glisson & James, 2002). Second, a system of social control influencing
members’ focus of attention, behavior, and commitment (Smircich, 1983)
The ability of an organizations’ cultural power to influence behavior makes it a
powerful force. In their classic research at Western Electric Roethlisberger, Dickson, &
Wright (1939) showed that culture could shape behavior more than rewards or work
environment. Workers that deviated from production norms, either too high or too low,
were shunned by their fellow workers. Therefore, few workers deviated significantly from
the norm. People are so influenced by other’s expectations that they uphold social norms,
and they are willing and likely, to alter their behavior.
We assimilate because the consequences of violating strong norms—at best,
embarrassment, and, at worst, exclusion or alienation from the social group—threaten our
ability to survive in an interdependent world (Chatman & Cho, 2003).
In addition to culture’s influence on employee behavior, positive organization culture
can increase staff alignment, thereby increasing commitment, productivity, and profitability.
It can also increase employees understanding of organizational objectives and their

willingness to work toward these objectives, thereby increasing an organization’s ability to
attain valued goals by executing more efficiently on its strategy (O’Reilly & Tushman, 2004).
It is exactly this link between organizational culture and strategy execution that makes
understanding organizational culture one of the most important aspects of leadership.
Research by Charan & Colvin (1999) suggests that the number one reason that CEOs fail is
the inability to execute on their strategy. Therefore, a clear understanding of organizational
culture is important for all leaders because it influences the way organizations react to the
changing demands of the business environment.
Why Might an Organization Need to Change its Culture
The primary reason that an organization would look to change its culture is when it
finds that its strategy and business objectives and its organizational culture are not aligned.
When culture and strategy are not aligned, culture will beat strategy almost every time.
Peter Drucker is credited with saying, “culture eats strategy for breakfast”. There are several
reasons why this misalignment may occur. These are:
1. Mergers and acquisitions. According to a study by Towers & Perrin (2002), 57% of
mergers fail due to incompatible cultures between those companies coming together.
2. Strategic redirection. Deeply entrenched cultural behaviors tend to change far more
slowly than market forces and with a sudden change of direction, a company can find
its culture and strategy at odds.
3. Globalization. As companies globalize, many attempt to maintain a unified
organizational culture across all operations based upon the same set of core values.
National cultural differences and local laws can at times cause conflict forcing the
organization to customize the culture locally.
What is Involved in Changing Organizational Culture?
Changing a culture is a large undertaking and all the organizational tools for
changing minds need to be utilized. Before determining the changes required, a baseline of
the current culture needs to be assessed. There are several tools, models, and processes that
can used to accomplish this task. Once the organization’s culture has been assessed, a model

for the desire or future state culture must be established. From the resulting gap analysis
(between the current state and future state cultures), the proper interventions can then be
ascertained. The following sections will highlight each of these steps in more detail.
Assess the current culture
Dawson (2010) lists four basic approaches to assessing organizational culture. These
are:
1. Statistically valid and reliable tools
2. Checklists and information tools
3. Qualitative interviews
4. Large group dialogue
This paper will focus only on some of the more popular statistically valid tools. These are
those tools that were developed using psychometric techniques and has been statistically
validated over repeated administrations.
Assessment Tools. There is a multitude of organizational cultural models
available, however, only a few have been statically validated. A well-known tool that has
been in use for more than 20 years at more than 5,000 companies is the Denison
Organizational Culture Survey (DOCS). The Denison model looks at four key traits about an
organization. These are mission, adaptability, involvement, and consistency. Each of these
traits is then broken down into three indexes. These indexes describe specific behaviors in
business language to make the results both relevant and actionable. The DOCS
questionnaire is proprietary and can only be used with a license from Denison Consulting.
Another popular tool is Hofstede’s Multifocus Model, also called the Organizational
Cultural Model (Geert-Hofstede, 2015). The Organizational Cultural Model measures
culture across six autonomous dimensions and two semi-autonomous dimensions (Table 1).

Dimension Type Descriptions
Means vs. goal oriented Autonomous Are employees more focused on how
work is carried out (means) versus the
end result (goal)?
Internally vs. externally driven Autonomous Are employees more focused on the
customer and the world at large
(externally driven) or results (internally
driven)?
Easygoing vs. strict work
discipline
Autonomous Does the organization have little control
and discipline in their process
(easygoing) or a high amount of internal
structuring (strict)?
Local vs. professional Autonomous Do employees identify with the boss or
work unit (local) or by the profession or
content of the job (professional)?
Open vs. closed system Autonomous Are newcomers immediately made
welcome (open) or is acceptance of
newcomers slow (closed)?
Employee vs. work oriented Autonomous Does the organization feel responsible
for the welfare of its employees
(employee oriented) or is the focus on
results even at the expense of employees
(work oriented)?
Degree of acceptance of
leadership style
Semi-
autonomous
To what degree is the leadership style of
the employee’s direct boss in line with
the employee’s preference?

Degree of organizational
identification
Semi-
autonomous
To what degree does the employee
identify with the organization in its
entirety?
Table 1. Descriptions of the six autonomous dimensions and two semi-autonomous
dimensions in the Organizational Cultural Model/Hofstede’s Multifocus Model.
A third example of a statistically validated tool is the Organizational Culture
Assessment Instrument (OCAI), based upon the Competing Values Framework as described
by Cameron & Quin (1999). The Competing Values Framework has been found to have a
high degree of congruence with well-known and well-accepted schemes that organize the way
people think, their values and assumptions, and the ways they process information
(Cameron & Quin, 1999). This cultural model places organizations in a continuum of four
core values. These four core values represent opposite or competing assumptions. They are:
flexibility and discretion versus stability and control and integration and internal focus
versus differentiation and external focus. When these four competing values are
incorporated into the 2x2 matrix they create the four cultural types of adhocracy, clan,
hierarchical, and market (Figure 1).
Figure 1. The four cultural types in the Organizational Culture Assessment
Instrument.

Additionally, the OCAI matches key management theories about leadership and
management styles, strategic emphasis, success criteria, and the “glue that binds the
organizational together”.
An additional dimension of the assessment tools. The cultural assessment
tools reviewed above are sophisticated models that can lead to valuable insights. O’Reilly
(1989) highlights two key dimensions of culture not directly addressed in the tools above.
These are cultural intensity, or how forceful the culture is held by employees, and cultural
consensus or how widely employees share and agree on cultural norms. These two
dimensions are plotted on a 2x2 matrix shown in Figure 2. The lower left quadrant (low
intensity, low consensus) represents a weak culture. The upper right quadrant (high
intensity, high consensus) represents a strong culture. The upper left quadrant (low
intensity, high consensus) is called vacuous. In these cultures, everyone understands top
management values, but there is no strong approval or disapproval attached to the
behaviors. The lower right quadrant (high intensity, low consensus) is called the warring
culture. In these cultures, certain norms or behaviors are strongly valued by one group and
not valued by another. Understanding culture along these two continuums highlights
valuable information and an organizational view of the culture (O’Reilly, 1989).
Figure 2. Relationship and impact of organizational cultural intensity and cultural
consensus.

Once the current organizational structure has been assessed, the next step in the
process is to determine the desired culture. Tools such as the Denison Organizational
Culture Survey (DOCS) and the Organizational Culture Assessment Instrument (OCAI)
recommend completing the survey again thinking about the desired culture rather that the
current culture. In other words, when answering the survey questions, the participant
should not answer based upon the existing culture, but rather with the mindset of what is the
desired culture. The resulting analysis will deliver a future state culture using the same
framework as the current culture. This makes the gap analysis between current and future
states straight-forward.
Mallak & Lyth (2006) have designed a stand-alone process that they call the Desired
Culture Analysis (DCA) for use in the healthcare industry. For cultural assessments
performed with tools other than the surveys mentioned above, a process such as this would
be required.
What the Culture is not. In addition to determining the future state culture, it is
important for team members to determine what the changes to culture will and will not
mean. This step will remind individuals that many of the core competencies and aspects of
the organization that makes it unique must not be abandoned. For example, using the
Competing Values Framework terminology, an organization may want to increase their clan
focus and reduce their hierarchy focus. However, they do not want to lose their focus on
productivity. In this example, this could mean eliminating useless or restrictive rules, but it
does not mean the elimination of accountability and measurement.
Determine the Appropriate Interventions
Connors & Smith (2011) suggest using the following process when determining the
appropriate interventions to take.
• Defining the Results That Guide the Change. Given that culture should be aligned
with the business strategy, the change should be guided by the results the
organization’s strategy is looking to achieve.

• Taking Action That Produces Results. What actions and activities should the
organization be engaged in to produce the desired results? What should the
organization do more of, less of, start doing, stop doing?
• Identifying the Beliefs That Generate the Right Actions. What values and beliefs do
the organization and employees need to have to take the actions determined above?
• Providing Experiences That Instill the Right Beliefs. Once the desired values and
beliefs are determined, the organization can then design interventions around
instilling those within the employees.
Katzenbach, Steffen, & Kronley (2012) recommend first focusing on a few critical changes in
behavior. Focusing heavily on a few key behaviors, may improve the chances of the changes
being adopted. Ideally, these behaviors are already present in existing employees and their
examples can be leveraged. Katzenbach, Steffen, & Kronley (2012) also advocate
incorporating both formal and information interventions. Table 2 lists common change
management interventions.
Formal Interventions Informal Interventions
Changing or revising:
• Organizational structure
• Decision-making rules
• Management systems
• Rewards and consequence systems
• Mission and vision statements
• Organizational goals
• Communication strategies
• Training systems
• Creating communities of interest
• Increasing peer-to-peer interactions
• Creating stories, legends, and symbols
that represent the desired culture
• Redesigning physical space
Table 2. Formal and Informal Interventions, Katzenbach, Steffen, & Kronley (2012)
and authors experience.

Keys to Successful Organizational Culture Change
Changing an organizational culture requires a complete and comprehensive system of
change. The following sections describes key elements of such a system.
Communication, Communication, Communication. Just as the top three
most important things in real estate investing are location, location, location, the top three
things for a successful change is communication, communication, communication.
Communication is the means by which culture is created and shared. When changing
the culture, it is extremely important to communicate in new, and culturally appropriate
ways, to support the change. Communications must be credible, consistent, and prominent.
Successful communication strategies start before the change program begins and
continues as the culture evolves. Communication should be deliberate, frequent and use a
variety of mediums, from email messages to workshops. A communications plan is an
effective tool to facilitate the process of determining the most effective communication
strategies and capturing the information. Common elements included in a communication
plan include the following:
• Audience – consider if it is a company-wide message or specific to a select group,
level or department. Determine the communication messages that are relevant
for each group.
• Key message to communicate – dependent upon the stage of the project, the
message needs to be tailored in such a way that it meets the purpose.
• Purpose – the intended outcome or result of the message, such as to inform, or to
request action.
• Vehicle – how the message will be delivered. It may be through more traditional
channels of delivery, such as email, intranet, or newsletter. Informal channels
such as a conversation with a group delivered by a peer leader, or personal
communication one to one are effective. Other vehicles may be a video from the
CEO or planning forums for collaboration between leaders and employees and

holding workshops. These are intentionally designed to share new cultural
meanings and create the opportunity to stimulate group discussion.
• Sender – by whom will the message be sent. Choose the most effective messenger
to achieve the desired result.
Commitment to the change is crucial and it is important when designing the
communication plan to include multiple ways for employees to engage and contribute.
Create spaces, places, and reasons for people to come together. Make efforts to reach the
hard-to-reach. Listening tours and pulse surveys are useful to include in the communication
plan. These activities can solicit feedback to gauge the change effort and to improve the
communication plan.
Create a Team of Change Agents. In order to be successful, you need the
backing of formal and informal leaders within the organization; the people who are
influential and are the early adopters. Kotter (2006) states that "A strong guiding coalition is
always needed—one with the right composition, level of trust, and shared objective.
Identify a group of employees invested in improving the organization; people who are
willing to commit their time and energy. Build a system around them to develop and support
these change agents; especially those on the grassroots level. Train them in change
management skills in order to help them improve the attitudes and actions of others.
Successful change management efforts are more likely to be successful when the
process includes the means to produce new leaders over time. Do this by encouraging these
change agents to support each other first. Incorporate strong mentorship systems so that
they, in turn, can do the same for peers.
Finally, these change agents are also great sources of information. Listen to their
feedback and concerns as they can be used as an “early detection system” of conflict or
resistance.
Model the Change Process on the New Culture. Once the desired culture has
been determined, it is critical that from this point forward, the change needs to be made
within the context of the future state culture. This will help to demonstrate that the new

culture has already been embraced. The way that the change is communicated, designed,
and led must reflect the future state culture. Using the cultural quadrants and terminology
of the OCAI, if the current culture is primarily clan and the desired culture is more
hierarchical, the change process should be more formally organized, presented, and
managed. Simply put, if you cannot execute the cultural change strategy through the lens of
the desired culture, people will be less likely to believe the change is real.
Stories and Symbols. Organizational culture is best communicated and illustrated
by stories and symbols (Martin, Feldman, Hatch, and Sitkin, 1983; Martin and Powers,
1983). Cameron & Quinn (1999) states that “key values, desired orientations, and behavioral
principles that are to characterize the new organizational culture are usually more clearly
communicated through stories than in any other way.”
For example, Haley & Haley (2006) relate the story of the Haier sledgehammer.
Zhang Ruimin, Haier's CEO, was appointed by the Chinese government in 1985 to run SOE,
now the Haier Group Co, which manufactured refrigerators. "The real problem was that
workers had no faith in the company and didn't care. Quality didn't even enter into
anybody's mind," recalled Zhang. After a customer complained, Zhang arranged a colorful
demonstration. He gathered the workers in a yard outside the plant, and in front of them 76
substandard fridges were smashed to pieces with sledgehammers. He also smashed some
himself. "The message got through that there's no A, B, C, and D quality," he said. "There's
only acceptable and unacceptable". The sledgehammer that Zhang reportedly used currently
resides in China’s National Museum in Beijing
Thomas (2015) relates the story of the IDEO bell. IDEO is regarded as one of the
most innovative design firms in the world. In order to encourage innovation in its
employees, IDEO leads brainstorming sessions where they encourage their employees to
come up with wild and crazy ideas. The one rule is that no idea is to be criticized during this
initial phase. Any person found doing so “gets the bell”. The facilitator of the session will
give a light ding of the bell to remind the guilty person of the rule. “It is a gentle but very
powerful reminder that the foundations of IDEO’s business model are based on employees

discussing radically new ideas in an atmosphere of trust and encouragement” (Thomas,
2015).
Prepare for Resistance. Willpower alone does not lead to success. Change
leaders need to realize that there will be resistance along the way and be prepared to address
it. "Whenever you let up before the job is done, critical momentum can be lost and
regression may follow." (Kotter 1996, p. 133). When it comes to resistance, the current
culture can be the biggest culprit. Cultural inclinations are well entrenched and during times
of change, the culture can dig in and become unyielding. Change will also prove difficult for
some people individually. Most will quickly identify themselves and the resistance can be
addressed.
Dawson (2010) identified three causes of resistance and how to overcome them
(Figure 3). The three causes of resistance are misunderstandings, competence, and values
difference. Misunderstandings are overcome by communication and educating the resistor
on the case for change. If the resistance is due to skill competence, then the resistor is
provided the appropriate training and development to overcome the skill or meaning gap.
Finally, resistance due to value differences will likely end in confrontation. Mediation is
required to determine if the value difference can be bridged and a win-win situation created.
Those resistors that are unwilling or unable to change after the appropriate
interventions should be released from the organization or put into a position where the
impact of their resistance can be mitigated.

Figure 3. Causes of change resistance and how to overcome (Dawson, 2010).
With all three types of resistance, communication about and conversation around the
resistance are critical. It is vital that change leaders be alert to differences of opinion. People
are more likely to learn something from people who disagree with them than with people
who agree. At times, these resistors have ideas that might have been missed or can bring
deeper understanding to an issue.
Prepare for the Implementation Dip. Fullan (2001) defines the
implementation dip as the decrease in performance and confidence that ensues as the
cultural change requires new skills and understandings that may not be fully developed.
Providing the appropriate coaching and training at this point is important in order to regain
momentum and get the organization moving again.
Course Correction Assessments. Course correction assessments are regularly
scheduled reviews of your cultural change plan. The first goal of the assessment should be to
determine if the target culture is still aligned with the organizational strategy. Perhaps
external factors have forced a change of strategy and in so doing have shifted cultural

priorities. The second goal of a course correction assessment is to determine if the actions
taken to date are having the desired impact. Perhaps the new behaviors are not taking hold
or perhaps they have but are not delivering the expected results. The third goal is to evaluate
the progress to the vision. Is the project progressing at the desired rate? If not, do timelines
or resource requirements need to be revised? Perhaps the organization needs to be
reminded of the case for change and a new communications plan devised.
Properly Designed Incentive and Consequence Systems. Incentive systems
should address wages, benefits, assessments, raises, promotions, and bonuses. It must also
consider the level of freedom and participation required to conduct individual roles. And
most importantly the system must be perceived as fair and just by the employees.
Consequence systems must be in agreement with the moral content of top executives and
balance the handling of honest mistakes and the punishment of dishonest mistakes.
Internal Process Management. Management must ensure that internal
processes exist in order to support the organization’s desired culture and that these
processes are aligned across the organization. In order to increase trust, the management of
internal processes must also allow for open debate between the supervisors and employees to
regularly question the necessity, efficiency, and effectiveness of processes. This will help to
ensure processes are self-correcting and value producing.
Work With-in the Existing Culture. Organizational cultures don’t change very
quickly. Therefore, if you are seeking change in your company or institution, you are most
likely to succeed using your existing culture to help you change the behaviors that matter
most. Bit by bit, as these new behaviors prove their value through business results, the
culture you have can evolve into the culture you need.
Build a Foundation of Long-Term Success. The catalyst for culture change can
be many. A common finding is the desire to improve performance, increase the commitment
level of employees, and align the organization. In this attempt to achieve desired business
results, actions must be taken to ensure long-term success.

• Set targets. Culture supports meaningful business results and strategic intentions.
Setting targets for teams, departments, and individuals and tracking progress is
imperative. Holding managers accountable for communicating the status of goals,
reaching milestones and delivering results is essential.
• Build a process for learning and reflecting. Encourage managers and employees to
collectively examine their work practices and behaviors. Reflect on actions and their
alignment to impacting business goals. Allowing people to be honest about their
learnings helps to create a culture of trust and commitment and the opportunity to
modify behaviors.
• Integrate new leader development. Successful culture-building efforts are more likely
to occur when the process includes the means to produce new leaders over time.
• Nurturing and support values. Encourage workers to share stories of how they
embody the culture and values of the organization and promote the stories internally,
and possibly externally. In some organizations, this may mean encouraging
employees to experiment when innovation is a value and empowering local leaders to
take responsibility. At other organizations, it may mean managers being instructed
to achieve specific targets by specific dates at all costs.
• Celebrate wins. Acknowledge, validate and celebrate employee and team
performance that positively impact the goals and vision for the organization.
Aligning celebration and rewards with values of the company will promote desired
behaviors and attitudes. Honor and reward people who embody the values of the
organization in the way the organization values. For example, celebrating the
longevity of an employee at a company that values commitment. Celebrate a new
process or system at a company valuing creativity.

Conclusion
Organizational culture can be defined as a system of values, beliefs, and assumptions
shared among members that define what is important, and norms that define appropriate
attitude and behaviors for organizational members. Its importance in organizations is its
power to influence employee behavior. Organizational culture is too important to leave to
chance and organizations must use their culture effectively in order to execute their strategy.
Therefore, business leaders must understand organizational culture and how to effect its
change.
There are three steps that must be taken when attempting to change an
organization’s culture. The first is to assess the current culture. There are many different
tools and techniques that can be utilized to assess an organization’s current culture. Before
selecting a tool, an organization should understand the strength and weaknesses of each
approach and select an approach that balances involvement across all aspects of the
organization while minimizing the impact on people’s time. The second step is to determine
the future-state culture and the final step is to plan steps to bridge the gap and execute.
Eleven keys to successful organizational culture change were included in this paper.
Incorporating these elements into a culture change plan will assist in leading an organization
to achieving business results and make the overall change less jarring for all involved.
Organizational culture change is not easy. Charles Schultz of Starbucks described the
process as: “Like crafting the perfect cup of coffee, creating an engaging, respectful, trusting
workplace culture is not the result of any one thing. It’s a combination of intent, process, and
heart, a trio that must constantly be fine-tuned” (Schultz & Gordon, 2011).

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