Monday, June 13, 2011

How to manage cultural change within your organization?

In my last blog, I talked about few high-level tips to successfully change your organizational culture. As I help my client to divide this high-level vision of cultural change into smaller parts, I will simultaneously blog about my current experience. My client is a manufacturing company, who manufactures the same equipment from last several years. In order to change the organization's culture, existing employees need to unlearn the old values, assumptions, and behaviors before they can learn new ways of operations. I have provided following recommendations to manage this cultural change:

 

Provide training: Change in organizational culture will depend on individual's behavior changes. Thus, we need to provide extensive training to our employees to make them understand what is expected of them, and how to actually do that using new methodologies, and how they will be rewarded for their new behaviors. For example: provide training of differences in national cultures, provide training of new acquired standards such as 'six sigma', etc.

 

Change organizational structure: If your existing structure doesn't support your desired organizational culture then you need to change the physical structure of the organization to align it with the desired organizational culture. For example: flatten your organizational structure for quick responsiveness, add few verticals to incorporate new acquired divisions, etc.

 

Change reward system: Changing reward and recognition is the key aspect of the cultural change. By changing reward system, we can encourage desired behaviors in the organization to achieve the desired organizational culture. For example: provide extra bonuses for peak performer, provide salary raises based on the performance, etc.

 

Change your documents: In order to change organizational culture, we need to make sure that we document our new mission, vision, values, and processes. This will serve as a new guidelines for existing employees, while it can be also used as a reference for any new hires in the organization. For example: remove your posters of existing vision and replace it with the new vision, update your internal website with this information, change process documents with new guidelines, etc.

 

I hope, these tips will help you to successfully manage your organizational culture change. Please feel free to comment on my blog, if you have any other suggestions regarding organizational cultural change. Thanks. – Bhavin Gandhi

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