ɕɕ Step 3: Map current culture. Our firm has developed a proprietary database of more than 500 different cultural characteristics we use to customize surveys, interviews and focus groups to map the current-state cultural characteristics, values and behaviors. Figure 1 includes an excerpt of a culture map that details how you can visually depict the similarities and differences between your current and desired cultural characteristics. You can visually depict the current characteristics (C) and the desired characteristics (D) to note areas of convergence and divergence. ɕɕ Step 4: Identify culture gaps. Conduct a gap analysis to identify the disparity between the desired and currentstate cultures. Specifically, a number of structured meetings are facilitated to identify and prioritize gaps between the current cultural characteristics, values and behaviors, and those that are future-state. Pay careful attention to those that must evolve to be successful in the future. The focus is to not change everything, which is impossible, but to focus on a finite list of cultural characteristics, values and behaviors that MUST change to successfully deploy your strategy! ɕɕ Step 5: Create and execute culture alignment plan. Most leaders and business owners don’t understand that an
organization’s culture is an output of your organization’s business model. A number of factors ultimately determine your organization’s culture, such as the amount/type of technology you use, the leadership styles of your management team, performance management practices, and compensation and hiring practices. Therefore, culture can be modified over time by minimizing undesired characteristics, values and behaviors and enhancing desired ones. An example of a high-level culture alignment plan appears below. By modifying specific attributes of your organization, you can evolve the culture over time. The key is to understand the link between inputs and outputs. If you modify such factors as your recognition, compensation, metrics and performance management practices, then cultural characteristics, values and behaviors will change over time. Culture serves as a semi-permeable boundary in terms of what an organization can achieve. Cultural characteristics, values and behaviors drive organizational outcomes. Organizations that are able to align their culture to closely support their strategy are better able to transform themselves when market conditions dictate and will typically outperform their competitors. P
Strategic Thrusts
Key Gaps
ɕɕ Increase revenue by 18% ɕɕ Increase market share in XXX segment to 30% ɕɕ Reduce operating costs by $10MM
Key Value/Behavioral Gaps
Value: ɕɕ Performance —Use effective judgment Behavior: ɕɕ Create an environment where there is no fear
Inputs
Culture Alignment Activities ɕɕ ɕɕ ɕɕ ɕɕ ɕɕ
Identify business drivers Create predictive metrics Incorporate metrics into performance management process Differentiate rewards and create forced ranking Institute up or out
ɕɕ ɕɕ ɕɕ ɕɕ ɕɕ
Reduce job classifications by 50% Implement team recognition system Re-enigineer order fulfillment process Redesign physical layouts to promote teamwork Outsource nonstrategic process
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