A Process for Changing Organizational Culture

Kim Cameron
Ross School of Business
University of Michigan
701 Tappan Street
Ann Aror! Michigan "#10$
7%"&'1(&()"7
*im+cameron,umich-e.u
/n Thomas 0- Cummings 12.-3 4an.oo* of 5rgani6ational 7evelopment! 1pages ")$&""(3 Thousan. 5a*s! CA8
Sage 9ulishing-
A Process for Changing Organizational Culture
Kim Cameron
University of Michigan
Much of the current scholarly literature argues that successful companies&&those :ith
sustaine. profitaility an. aove&normal financial returns&&are characteri6e. y certain :ell&
.efine. e;ternal con.itions- These con.itions inclu.e having 113 high arriers to entry 1e-g-! the
.ifficulty of other firms entering the mar*et! so fe:! if any! competitors e;ist3! 1)3 non&
sustitutale pro.ucts 1e-g-! others cannot .uplicate the firm<s pro.uct! an. fe:! if any!
alternatives e;ist3! 1%3 a large mar*et share 1e-g-! the firm can capitali6e on economies of scale
an. efficiencies y .ominating the mar*et3! 1"3 uyers :ith lo: argaining po:er 1e-g-!
purchasers of the firm<s pro.ucts ecome .epen.ent on the firm ecause they have no other
alternative sources3 1(3 suppliers :ith lo: argaining po:er 1e-g-! suppliers to the firm ecome
.epen.ent ecause they have no other alternative customers3! 1'3 rivalry among competitors
1e-g-! incentives to improve are a pro.uct of rigorous competition3! an. 173 rare pro.ucts or
services 1e-g-! offering something that no other company provi.es3 19orter! 1$#0= Barney! 1$$13-
Un>uestionaly! these are .esirale features that clearly shoul. enhance financial success-
A sustantial amount of research supports the importance of these factors- 4o:ever! :hat is
remar*ale is that several of the most successful U-S- firms in the last )0 years have ha. none of
these competitive a.vantages- The top five performers in the last t:o .eca.es of the t:entieth
century?efore the .ot-com ule?:hich literally le: a:ay the competition in financial
returns?:ere not the recipients of any of the so&calle. prere>uisites for success- These highly
successful firms inclu.e. South:est Airlines 1)1!77( percent return3! @al&Mart 11$!#07 percent
return3! Tyson Aoo.s 11#!11# percent return3! Circuit City 11'!"10 percent return3! an. 9lenum
9ulishing 11(!'#$ percent return3-
)
Thin* of it- /f you :ere going to start a usiness an. :ante. to ma*e a lot of money!
:hat mar*ets :ill you most li*ely avoid?airlines! .iscount retailing! consumer electronics!
pulishing! foo. .istriutionB The list of in.ustries represente. y these five companies loo*s
li*e an impen.ing .isaster for ne: entrants&&massive competition! horren.ous losses in the
in.ustry! :i.esprea. an*ruptcy! virtually no arriers to entry! little uni>ue technology! many
sustitute pro.ucts an. services! an. a non&lea.ership position in mar*et share- Cet! these five
firms out&performe. everyone even :ith none of the special competitive a.vantages-
@hat .ifferentiates these e;traor.inarily successful firms from othersD 4o: have they
een ale to succee. :hen others faile.D 4o: .i. @al&Mart ta*e on Sears an. K&Mart! the t:o
largest retailers in the :orl. at the time! an. almost .rive them out of usinessD @hile @al&Mart
prospere.! its largest rivals :ere force. to sell&off .ivisions! replace C25s 1more than once3!
.o:nsi6e .ramatically! close stores :holesale! an. even file Chapter 11 an*ruptcy- 4o: .i.
South:est thrive :hen several of its strongest competitors :ent elly&up 1e-g-! 2astern! 9an&Am!
T@A! Te;as Air! 9eople 2;press3D 4o: .i. Circuit City! Tyson Aoo.s! an. 9lenum 9ulishing
succee. :hen their competitors :ent out of usiness so rapi.ly that it<s har. to *eep upD
The *ey ingre.ient in every case is something less tangile! less latant! ut more
po:erful than the mar*et factors liste. aove- The maEor .istinguishing feature in these
companies! their most important competitive a.vantage! the factor that they all highlight as a *ey
ingre.ient in their success! is their organi6ational culture- The sustaine. success of these firms
has ha. less to .o :ith mar*et forces than company values= less to .o :ith competitive
positioning than personal eliefs= less to .o :ith resource a.vantages than vision- /n fact! it is
.ifficult to name a single highly successful company! one that is a recogni6e. lea.er in its
in.ustry! that .oes not have a .istinctive! rea.ily i.entifiale organi6ational culture-
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@ith very fe: e;ceptions! virtually every lea.ing firm has .evelope. a .istinctive culture
that is clearly i.entifiale y its *ey sta*ehol.ers- This culture is sometimes create. y the initial
foun.er of the firm 1e-g- 7isney or Microsoft3- Sometimes it is .evelope. consciously y
management teams :ho .eci.e to improve their company<s performance in systematic :ays
1e-g-! 0-2 or Mc7onal.s3- But! almost all successful companies have .evelope. something
special that superse.es corporate strategy! mar*et presence! or technological a.vantages- They
have foun. the po:er that resi.es in .eveloping an. managing a uni>ue corporate culture-
Fot all organi6ations automatically possess a strong an. highly effective culture! of course! so
this article .iscusses a metho.ology for ho: to lea. a culture change effort in an organi6ation- A
.efinition of organi6ational culture is first provi.e. follo:e. y the e;planation of a frame:or* for
un.erstan.ing culture in the conte;t of organi6ations- Ainally! a process for initiating culture change
is .escrie. :hich can e use. in organi6ational .evelopment interventions-
Definition of Organizational Culture
Although over 1(0 .efinitions of culture have een i.entifie. 1Kroeer G Kluc*hohn! 1$()3!
the t:o main .isciplinary foun.ations of organi6ational culture are sociological 1e-g-! organi6ations
have cultures3 an. anthropological 1e-g-! organi6ations are cultures3- @ithin each of these
.isciplines! t:o .ifferent approaches to culture :ere .evelope.8 a functional approach 1e-g-! culture
emerges from collective ehavior3 an. a semiotic approach 1e-g-! culture resi.es in in.ivi.ual
interpretations an. cognitions3- The primary .istinctions are .ifferences et:een culture as an
attriute possesse. y organi6ations versus culture as a metaphor for .escriing :hat organi6ations
are- The former approach assumes that researchers an. managers can i.entify .ifferences among
organi6ational cultures! can change cultures! an. can empirically measure cultures- The latter
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perspective assumes that nothing e;ists in organi6ations e;cept culture! an. one encounters culture
anytime one rus up against any organi6ational phenomena- Culture is a potential pre.ictor of other
organi6ational outcomes 1e-g-! effectiveness3 in the former perspective! :hereas in the latter
perspective it is a concept to e e;plaine. in.epen.ent of any other phenomenon-
A revie: of the literature on culture in organi6ational stu.ies reveals that a maEority of :riters
have come to an agreement that culture refers to the ta*en&for&grante. values! un.erlying
assumptions! e;pectations! an. .efinitions present :hich characteri6e organi6ations an. their
memers 1that is! they have a.opte. the functional! sociological perspective3- Most .iscussions of
organi6ational culture 1Cameron G 2ttington! 1$##= 5<Reilly G Chatman! 1$$'= Schein! 1$$'3
agree :ith the i.ea that culture is a socially constructe. attriute of organi6ations :hich serves as
the Hsocial glueI in.ing an organi6ation together- Culture represents Hho: things are aroun. here!I
or the prevailing i.eology that people carry insi.e their hea.s! thus! culture affects the :ay
organi6ation memers thin*! feel! an. ehave-
/mportantly! the concept of organi6ational culture is .istinct from the concept of organi6ational
climate. Climate refers to temporary attitu.es! feelings! an. perceptions of in.ivi.uals 1Schnei.er!
1$$03- Culture is an en.uring! slo: to change! core characteristic of organi6ations= climate! ecause
it is ase. on attitu.es! can change >uic*ly an. .ramatically- Culture refers to implicit! often
in.iscernile aspects of organi6ations= climate refers to more overt! oservale attriutes of
organi6ations- Culture inclu.es core values an. consensual interpretations aout ho: things are=
climate inclu.es in.ivi.ualistic perspectives that are mo.ifie. fre>uently as situations change an.
ne: information is encountere.- The approach to change in this article focuses on cultural
attriutes rather than climate attriutes- /t consi.ers the Hlin*s among cognitions! human
interactions! an. tangile symols or artifacts typifying an organi6ationI 17etert! Schroe.er! G
(
Mauriel! )0008#(%3! or! in other :or.s! Hthe :ay things areI in the organi6ation rather than people<s
transitory attitu.es aout them-
Unfortunately! most people are una:are of their culture until it is challenge.! until they
e;perience a ne: culture! or until culture is ma.e overt an. e;plicit through! for e;ample! a
frame:or* or mo.el- Most people .i. not :a*e up this morning! for e;ample! ma*ing a
conscious .ecision aout :hich language to spea*- /t is only :hen confronte. :ith a .ifferent
language! or as*e. specific >uestions aout language! that people ecome a:are that language is
one of their .efining attriutes- Similarly! culture is un.etectale most of the time ecause it is
not challenge. or consciously articulate.- Measuring culture! therefore! has presente. a
challenge to organi6ational scholars an. change agents-
Measuring Organizational Culture through Competing Values
The Competing Jalues Arame:or* has proven to e a helpful frame:or* for assessing
an. profiling the .ominant cultures of organi6ations ecause it helps in.ivi.uals i.entify the
un.erlying cultural .ynamics that e;ist in their organi6ations- /t helps to raise consciousness of
cultural attriutes- This frame:or* :as .evelope. in the early 1$#0s as a result of stu.ies of
organi6ational effectiveness 1Kuinn G Rohraugh! 1$#13! follo:e. y stu.ies of culture!
lea.ership! structure! an. information processing 1Cameron! 1$#'= Cameron G Kuinn! 1$$$3-
The frame:or* consists of t:o .imensions! one that .ifferentiates a focus on fle;iility!
.iscretion! an. .ynamism from a focus on staility! or.er! an. control- Aor e;ample! some
organi6ations are effective ecause they are changing! a.aptale! an. organic! :hereas other
organi6ations are effective ecause they are stale! pre.ictale! an. mechanistic- This .imension
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ranges from organi6ational versatility an. pliaility on one en. to organi6ational stea.iness an.
.uraility on the other en.-
The secon. .imension .ifferentiates a focus on an internal orientation! integration! an.
unity from a focus on an e;ternal orientation! .ifferentiation! an. rivalry- That is! some
organi6ations are effective ecause they have harmonious internal characteristics! :hereas others
are effective ecause they focus on interacting or competing :ith others outsi.e their oun.aries-
This .imension ranges from organi6ational cohesion an. consonance on the one en. to
organi6ational separation an. in.epen.ence on the other-
Together these t:o .imensions form four >ua.rants! each representing a .istinct set of
organi6ational effectiveness in.icators- Aigure 1 illustrates the relationships of these t:o
.imensions to one another along :ith the resulting four >ua.rants- These .imensions have een
foun. to represent :hat people value aout an organi6ation<s performance an. :hat they .efine
as goo.! right! an. appropriate- 4o:ever! these .imensions have also een foun. to accurately
.escrie ho: people process information! :hat fun.amental human nee.s e;ist! an. :hich core
values are use. for forming Eu.gments an. ta*ing action 1Beyer G Cameron! 1$$7= Cameron G
2ttington! 1$##= La:rence G Fohria! )00); Mitroff! 1$#%= @iler! )0003- 4ence! they .escrie
some of the fun.amental un.erlying .imensions that comprise organi6ational culture 1Cameron
G Kuinn! 1$$$3-
Figure 1 goes about here
@hat is notale aout these .imensions is that they represent opposite or competing
assumptions- 2ach continuum highlights a core value that is opposite from the value on the other
en. of the continuum&&i-e-! fle;iility versus staility! internal versus e;ternal- The .imensions!
therefore! pro.uce >ua.rants that are also contra.ictory or competing on the .iagonal- The upper
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left >ua.rant i.entifies values that emphasi6e an internal! organic focus! :hereas the lo:er right
>ua.rant i.entifies values that emphasi6e e;ternal! control focus- Similarly! the upper right
>ua.rant i.entifies values that emphasi6e e;ternal! organic focus :hereas the lo:er left >ua.rant
emphasi6es internal! control values- These competing or opposite values in each >ua.rant give
rise the name for the mo.el! the Competing Jalues Arame:or*-
2ach of the four >ua.rants has a lael that characteri6es its most notale characteristics&&
clan! a.hocracy! mar*et! an. hierarchy- These >ua.rant names :ere .erive. from the scholarly
literature an. i.entify ho:! over time! .ifferent organi6ational values have ecome associate.
:ith .ifferent forms of organi6ations?for e;ample! @eer<s 11$"73 hierarchy! @illiamson<s
11$7(3 mar*et! 5uchi<s 11$#13 clan! an. Mint6erg<s 11$7$3 a.hocracy- 1Similar .imensions
have emerge. in other scholarly .omains&&such as organi6ational >uality! chil. .evelopment!
lea.ership roles! information processing! management s*ills! organic rain functioning! an.
philosophy?suggesting that the .imensions an. the >ua.rants are very roust in e;plaining core
values an. human orientations3 1Mitroff! 1$#%= 9iaget! 1$%)= 4ampton&Turner! 1$#1= La:rence
G Fohria! )00)= @iler! )0003-
5rgani6ations ten. to .evelop a .ominant orientation an. value set?or organi6ational
culture?over time as they a.apt an. respon. to challenges an. changes in the environment
1Schein! 1$$'= Sathe! 1$#(3- Must as in.ivi.uals :ho face threat! uncertainty! an. amiguity
reassert their o:n haituate. ehavior :ith re.oule. force 1Sta:! San.elan.s! G 7utton! 1$#1;
@eic*! 1$$%3! institutions also ten. to respon. to challenges y amplifying their core cultural
values- As competition! change! an. pressure intensify! organi6ational culture ecomes more
soli.ifie. an. is given more prominence an. emphasis 1Cameron! )00%3-
#
Culture Types
As note. in Aigure 1! the competing values frame:or* i.entifies four .istinct types of
cultures in organi6ations-
The clan culture! in the upper left >ua.rant of Aigure 1! is typifie. as a frien.ly place to
:or* :here people share a lot of themselves- /t is li*e an e;ten.e. family :ith est frien.s at
:or*- Lea.ers are thought of as mentors! coaches! an.! perhaps! even as parent figures- The
organi6ation is hel. together y loyalty! tra.ition! an. collaoration- Commitment is high- The
organi6ation emphasi6es the long&term enefits of in.ivi.ual .evelopment :ith high cohesion
an. morale eing important- Success is .efine. in terms of internal climate an. concern for
people- The organi6ation places a premium on team:or*! participation! an. consensus-
/n the upper right >ua.rant of the competing values frame:or* is the adhocracy culture-
/t is characteri6e. as a .ynamic! entrepreneurial! an. creative :or*place- 9eople stic* their
nec*s out an. ta*e ris*s- 2ffective lea.ership is visionary! innovative! an. ris*&oriente.- The
glue that hol.s the organi6ation together is commitment to e;perimentation an. innovation- The
emphasis is on eing at the lea.ing e.ge of ne: *no:le.ge! pro.ucts! an.Nor services-
Rea.iness for change an. meeting ne: challenges are important- The organi6ation<s long term
emphasis is on rapi. gro:th an. ac>uiring ne: resources- Success means pro.ucing uni>ue an.
original pro.ucts an. services-
A market culture in the lo:er right >ua.rant is a results&oriente. :or*place- Lea.ers are
har.&.riving pro.ucers! .irectors! an. competitors- They are aggressive an. .eman.ing- The
glue that hol.s the organi6ation together is an emphasis on :inning- The long&term concern is
on competitive actions an. achieving stretch goals an. targets- Success is .efine. in terms of
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mar*et share an. penetration- 5utpacing the competition! escalating share price! an. mar*et
lea.ership .ominate the success criteria-
The organi6ational culture in the lo:er left >ua.rant! the hierarchy culture! is
characteri6e. as a formali6e. an. structure. place to :or*- 9roce.ures an. :ell&.efine.
processes govern :hat people .o- 2ffective lea.ers are goo. coor.inators! organi6ers! an.
efficiency e;perts- Maintaining a smooth&running organi6ation is important- The long&term
concerns of the organi6ation are staility! pre.ictaility! an. efficiency- Aormal rules an. policies
hol. the organi6ation together-
Cameron an. 2ttington<s 11$##3 revie: of the literature foun. more than )0 .imensions
of organi6ational culture! inclu.ing .imensions such as internal&e;ternal focus! spee.! ris*iness!
participativeness! clarity! po:er .istance! masculinity! an. in.ivi.ualism- 2ach of these
.imensions helps estalish a profile or a pattern for an organi6ation<s culture- By far the three
most .ominant an. fre>uently appearing pattern .imensions in the literature! ho:ever! are
cultural strength 1the po:er or preeminence of the culture3! cultural congruence 1the e;tent to
:hich the culture in one part of the organi6ation is congruent :ith the culture in another part of
the organi6ation3! an. cultural type 1the specific *in. of culture that is reflecte. in the
organi6ation3- Cameron G 2ttington 11$##3 foun. that Hthe effectiveness of organi6ations is
more closely associate. :ith the type of culture present than :ith the congruence or the strength
of that culture 1p-%#(3-I
Profiling Organizational Culture
Cameron an. Kuinn 11$$$3 reporte. a great .eal of evi.ence confirming that in.ivi.uals can
accurately .escrie the cultures of their organi6ations accor.ing to the competing values
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frame:or*! an. that the resulting culture profiles are pre.ictive of multiple performance factors
such as organi6ational effectiveness 1Cameron G Areeman! 1$$13! the success of mergers an.
ac>uisitions 1Cameron G Mora! )00%3! an. >uality of life in organi6ations 1Kuinn G Spreit6er!
1$$13- The manner in :hich organi6ational culture is .escrie. an. e;perience. y in.ivi.uals! in
other :or.s! is congruent :ith the .imensions of the competing values frame:or* 1see Mason G
Mitroff! 1$7%= Mitroff G Kilmann! 1$7'3- The *ey to assessing organi6ational culture! therefore! is
to i.entify aspects of the organi6ation that reflect its *ey values an. assumptions an. then give
in.ivi.uals an opportunity to respon. to these cues- An instrument! calle. the 5rgani6ational
Culture Assessment /nstrument 15CA/3! :as .evelope. to i.entify an organi6ation<s culture profile-
/t has no: een use. in almost 10!000 organi6ations :orl.:i.e in most sectors 1e-g-! private sector!
pulic sector! e.ucation! health care! ne: start&ups! F05s3- 2;amples of the *in.s of profiles that
result from this instrument are sho:n in Aigure )-
Figure 2 goes about here
/n the 5CA/! organi6ation memers are provi.e. :ith a set of scenarios that .escrie certain
fun.amental cultural in.icators in organi6ations- /n.ivi.uals rate their o:n organi6ation<s similarity
to these scenarios y .ivi.ing 100 points among four .ifferent scenarios! each .escriptive of a
>ua.rant in the competing values frame:or*- Si; .imensions are rate.8 113 the dominant
characteristics of the organi6ation! 1)3 the leadership style that permeates the organi6ation! 1%3 the
organizational glue or on.ing mechanisms that hol. the organi6ation together! 1"3 the strategic
emphases that .efine :hat areas of emphasis .rive the organi6ation<s strategy! 1(3 the criteria of
success that .etermine ho: victory is .efine. an. :hat gets re:ar.e. an. celerate.! an. 1'3 the
management of employees or the style that characteri6es ho: employees are treate. an. :hat the
:or*ing environment is li*e- /n comination these content .imensions reflect fun.amental cultural
11
values an. implicit assumptions aout the :ay the organi6ation functions- They reflect Hho: things
areI in the organi6ation- This list of si; content .imensions is not comprehensive! of course! ut it
has proven in past research to provi.e an a.e>uate picture of the type of culture that e;ists in an
organi6ation- These si; .imensions! for e;ample! have een foun. to e e>ually pre.ictive as :hen
eight! t:elve! or si;teen .imensions are use. 1see Cameron G Kuinn! 1$$$3- By having organi6ation
memers respon. to >uestions aout these .imensions! the un.erlying organi6ational culture can e
uncovere.- The items in the 5CA/ are repro.uce. in the appen.i;-
An important caveat in culture assessment is that it may ma*e little sense to assess the
culture of the overall Aor. Motor Company! for e;ample! inasmuch as it is too large!
heterogeneous! an. comple; an organi6ation- Conse>uently! in.ivi.uals are .irecte. to target a
specific organi6ational unit as they respon. to the >uestions on the 5CA/- This organi6ational
unit is one in :hich unit performance is a relevant factor?not :holly .epen.ent upon a larger
unit?an. that possesses its o:n organi6ational i.entity- 2valuations shoul. e in.ivi.uals in the
organi6ation :ho have a perspective of the relevant organi6ation<s overall culture! :ho :ill e
engage. in implementing change initiatives! an. :hose acceptance is necessary for ensuring a
successful culture change effort- These in.ivi.uals assess the current culture of their
organi6ation-
Using in.ivi.ual scores on the instrument! respon.ents participate in a .iscussion to
generate a consensual vie: of the current organi6ational culture 1not an average vie:3! :ith
everyone having input into the consensus profiling process- 7iscussing an. highlighting the
potentially .isparate perspectives of in.ivi.ual raters is a rich an. enlightening part of culture
assessment since it uncovers multiple perspectives an. a variety of aspects of the organi6ation
that may go unnotice. other:ise- This .iscussion uil.s un.erstan.ing! opens lines of
1)
communication! an. reveals elements of the organi6ation<s culture that a single in.ivi.ual or tas*
force may miss-
Aollo:ing this consensus uil.ing .iscussion focuse. on the current culture! this same
group of evaluators completes the 5CA/ a secon. time- This time they rate the 5CA/ items in
response to this >uestion8 If your organization is to flourish, to achieve dramatic success, and to
accomplish its highest aspirations in, say, five years, what kind of culture will be required? After
in.ivi.ual culture scores are pro.uce. a secon. time! a consensus uil.ing process occurs again
in :hich a preferre. future culture profile is .evelope. y the respon.ent group y follo:ing the
same .iscussion process- The current an. the preferred future culture profiles can then e
compare. to .etermine the e;tent to :hich a culture change process is re>uire.- /n a large
maEority of organi6ations! some culture change is .esire. as in.icate. y a .ifference in the
culture profiles pro.uce. y the t:o consensus uil.ing .iscussions-
A Process for Changing Organizational Culture
Changing organi6ational culture is a very .ifficult goal to achieve! not only ecause
culture is largely unrecogni6e.! ut ecause once set! commonly share. interpretations! values!
an. patterns are .ifficult to mo.ify- 4o:ever! once it has een .etermine. that culture change is
a .esire. oEective! memers of an organi6ation can engage in a set of steps that :ill put a
culture change process in motion- The outcome of these steps is a process for moving an
organi6ation<s culture from the current state to the preferre. future state- These steps are ase.
on the :or* of several authors :ho have .escrie. successful change interventions aime. at
organi6ational culture change 1e-g-! 4ooiEerg G 9etroc*! 1$$%; 7enison! 1$#$; Trice G Beyer!
1$$%; Cameron G Kuinn! 1$$$= Kotter! 1$$(3- These steps initiate change in in.ivi.ual an.
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organi6ational processes! conversations! language! symols! an. values! none of :hich y itself
ensures that culture change :ill occur! ut in comination they create a great .eal of momentum
to:ar. fun.amental culture change in organi6ations-
To e;plain these seven steps! an 1anonymous3 organi6ational e;ample is provi.e. :ith its
current an. preferre. future culture profile. in Aigure %- The soli. line represents the
organi6ation<s current culture! an. the .otte. line represents the preferre. culture- The results of
the culture assessment process in.icate. that this organi6ation .esire. to change its culture
to:ar. the clan an. a.hocracy cultures an. a:ay from the hierarchy an. mar*et cultures-
2;amples of ho: this organi6ation engage. in this seven step culture change process are provi.e
elo:-
Figure 3 goes about here
1- Clarifying meaning- The first step in culture change is to clarify what it means
an. what it doesnt mean for the organi6ation<s culture to change- This is an interpretation an.
meaning&ma*ing step- Moving to:ar. one particular type of culture .oes not mean that other
culture types shoul. e aan.one. or ignore.- /t means only that special emphasis must e
place. on certain factors if the culture change is going to e successful- Kuestions that may e
a..resse. :hen .etermining :hat culture change means an. .oesn<t mean inclu.e8 @hat are the
attriutes that shoul. e emphasi6e. if the culture is to move to:ar. the preferre. >ua.rantD
@hat characteristics shoul. .ominate the ne: cultureD @hat attriutes shoul. e re.uce. or
aan.one. in the move a:ay from a particular >ua.rantD @hat characteristics :ill e
preserve.D @hat continues to e important aout this culture type even though there :ill e an
emphasis on another culture typeD @hat are the most important tra.e&offsD
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The purpose of this step is to clarify for the organi6ation the things that :on<t change as
:ell as the things that :ill- @il*ins 11$#$3 i.entifie. the importance of uil.ing on corporate
character in any change effort! that is! on the core competencies! the uni>ue mission! an. the
special organi6ational i.entity that has een create. over time- An organi6ation shoul. not
aan.on core aspects of :hat ma*es it uni>ue! :hereas some other aspects of the organi6ation
:ill nee. to e transforme.- /.entifying :hat culture change means an. .oesn<t mean helps
remin. the organi6ation aout :hat :ill e preserve. as :ell as :hat :ill e change.- /t
attaches specific meaning to the i.ea that culture change :ill occur-
By :ay of illustration! the organi6ation profile. in Aigure % interprete. a culture change
to:ar. the clan >ua.rant to mean more employee empo:erment! more participation an.
involvement in .ecision ma*ing! an. more cross&functional team:or*- More clan emphasis .i.
not mean lac* of stan.ar.s an. rigor! an asence of tough .ecisions! or a tolerance for
me.iocrity- /n a..ition! moving a:ay from the hierarchy >ua.rant :as interprete. to mean
fe:er sign&offs on .ecisions! less micro&management! an. eliminating paper:or*- /t .i. not
mean lac* of measurement! not hol.ing people accountale! an. not monitoring performance-
)- Identifying stories- Since organi6ational culture is est communicate. through
stories 1Martin! 1$$)= Martin! et al-! 1$#%3! a secon. step in the culture change process is to
i.entify one or t:o positive inci.ents or events that illustrate the *ey values that :ill characteri6e
the organi6ation<s future culture- That is! real inci.ents! events! or stories are recounte. pulicly
in or.er help in.ivi.uals capture a sense of :hat the culture :ill e li*e :hen the ne: culture is
in place- @hat :ill the ne: culture feel li*eD 4o: :ill people ehaveD @hat is an illustration of
:hen something consistent :ith preferre. future culture has occurre. in the pastD The *ey
values! .esire. orientations! an. ehavioral principles that are to characteri6e the ne: culture are
1(
more clearly communicate. through stories than in any other :ay- Fot only .o these stories help
clarify the culture change! ut in.ivi.uals are less an;ious aout moving into an un*no:n future
:hen they can carry parts of the past :ith them- @hen the parts of the past eing carrie.
for:ar. are e;amples of est practices! pea* performance! an. aspirational levels of
achievement! organi6ation memers are motivate. to pursue them! they are clear aout :hat is to
e accomplishe. y the change! an. they can i.entify :ith the core values eing illustrate.-
/n the organi6ation illustrate. in Aigure %! the most common an. motivational story
associate. :ith the preferre. future culture :as of a special proEect that ha. recently een
accomplishe. appro;imately 7( percent ahea. of sche.ule an. #0 percent un.er u.get :ith
e;tremely high morale an. i.entification among employees- Fumerous e;amples of innovation
an. entrepreneurship ma.e that achievement possile- /n fact! the :atch cry :as! HMa*e the
impossile possileI in the proEect team- 2lements of that story :ere use. to illustrate :hat the
organi6ation as a :hole :as shooting for as eing in.icative of their future culture-
%- etermining strategic initiatives. Strategic initiatives involve the activities that
:ill e starte.! stoppe.! an. enhance.- They are actions .esigne. to ma*e maEor changes that
:ill pro.uce culture change- @hat ne: things must e egunD @hat activities :ill e stoppe.!
or :hat :oul. have een .one that :ill no: not e .one as a result of the culture change
initiativeD Most organi6ations have much more .ifficulty stopping something than starting it! so
i.entifying :hat :on<t e pursue. is a .ifficult ut critical step- @hat resource allocation
changes .oes this implyD @hat ne: resources :ill e re>uire.D @hat processes an. systems
nee. to e .esigne.! or re.esigne.! to support the change initiativesD /n :hat :ays can the
organi6ation<s core competencies e leverage. an. magnifie. so that the culture change pro.uces
a sustaine. competitive a.vantageD
1'
/.entifying :hat is to e starte. is a :ay to help the organi6ation thin* of strategic
initiatives that have not een previously pursue.- /.entifying :hat is to e stoppe. helps focus
resources an. energy so that non&value&a..e. activities?usually characteristic of the previous
culture?:ill not inhiit the change process- /.entifying :hat is to e enhance. implies that
some activities eing pursue. currently can engen.er change if they are enhance. :ith more
resources! more attention! or more lea.ership-
2;amples of strategic initiatives in the illustrative case in Aigure % inclu.e the
.evelopment of a lea.ership .evelopment program! a uni>ue employee o:nership program! an.
a u.geting process that set asi.e fun.s for entrepreneurial ventures an. e;perimentation :ithin
the company-
"- Identifying small wins- The rule of thum regar.ing small :ins is to fin.
something easy to change! change it! an. pulici6e it- Then! fin. a secon. thing easy to change!
change it! an. pulici6e it- Small :ins are imme.iate actions that represent ay steps in the
.irection of culture change- They can e implemente. imme.iately! ut none of them y
themselves represent sustantial change- Small successes create momentum in the .esire.
.irection! inhiit resistance&&since sel.om .o people resist small! incremental changes&&an.
create a an.:agon effect so that a..itional supporters get on oar.- @hen in.ivi.uals see that
something is changing! even if it is small in scope! a sense of progress an. a.vancement is
create.! an. that sense helps uil. support for the larger an. more fun.amental changes- The
iggest mista*e ma.e y organi6ations instituting a small :ins strategy is that the first t:o steps
are achieve. ut not the thir.- That is! small changes are initiate. ut they are not pulicly
ac*no:le.ge. an. celerate.- The pulicity accompanying the small :ins is the chief
momentum creator-
17
/n the illustrative case 1Aigure %3! part of the culture change effort involve. the
.ismantling of an ol. program! inclu.ing some physical structures- Certain of these visile
physical structures :ere .ismantle. even though .oing so :as not a necessary part of the ne:
strategy nor .i. their .emolition create any particular a.vantage- The removal of the structures
:as simply part of a small :ins strategy?to sho: progress! create a sense of momentum! an.
uil. support for the larger initiatives- 5ther small :ins inclu.e. things as simple as changing a
color scheme in uil.ings! painting offices! .ecorating :or* spaces! an. eliminating 1or creating3
special par*ing spaces-
(- Craft metrics, measures, and milestones- 7etermining the *ey in.icators of
success! :hat to measure! ho: to measure it! an. :hen certain levels of progress :ill e note. is
a crucial part of the change process- An important shortcoming in most change processes!
especially :hen the target of change is as soft an. amorphous as organi6ational culture! is the
neglect of har. measures of achievement an. progress- Change re>uires the i.entification of
in.icators of success in culture change as :ell as interim progress in.icators- A .ata gathering
system nee.s to e .esigne. as .oes a time frame for assessing the results- @hat gets measure.
gets attention! so the *ey initiatives an. outcomes must have metrics an. measuring processes
associate. :ith them- 5f course! overloa.ing systems :ith multiple measures is a sure :ay to
*ill change initiatives! so the *ey to goo. metrics! measures! an. milestones is to i.entify fe:
enough to e helpful! attach them to .ecisions an. resource allocations! attach them to the *ey
levers an. in.icators of change! an. ensure that they are un.erstoo. y those involve. in the
culture change process-
By :ay of e;ample! the organi6ation in the case illustration specifie. times for specific
changes to e complete.! .esigne. follo:&up an. reporting events! an. .evelope. mechanisms
1#
such as a monthly intervie: program in or.er to ensure that in.ivi.uals an. organi6ational units
follo:e. through on personal commitments an. assignments-
'- Communication and symbols- /t is certain that resistance to culture change :ill
occur in organi6ations- /n.ivi.uals< asic :ay of life :ill e challenge. an. change.! an.
familiar territory :ill e altere.- Aun.amental aspects of the organi6ation :ill e change.! so
culture change is sure to generate stiff resistance- Communicating the culture change process!
therefore! is a critical tool in helping to overcome resistance an. generate commitment-
2;plaining :hy the culture change is necessary an. eneficial is proaly the most vital step in
generating commitment- Research suggests that people ten. to e;plain H:hyI to people they
care aout an. hol. in high esteem- They ten. to tell H:hatI to those they care less aout or hol.
in lo: esteem- 2;plaining H:hy!I therefore! communicates oth caring an. esteem to those
involve. in the culture change process-
Sometimes in or.er to ma*e a case for change! the current or past state is critici6e. or
.enigrate.- The prolem is! most organi6ation memers :ere a part of the previous con.ition as
:ell as part of the future culture change- Criticism of the past .iminishes commitment ecause it
is interprete. as a criticism of organi6ation memers< previous est efforts- /nstea. of criticism!
hol.ing a funeral?celerating the est of the past ut outlining a future in :hich certain parts of
the past :ill not e carrie. for:ar.?is a more effective :ay to move past aspects of the ol.
culture that :ill e urie. an. left ehin.-
Buil.ing coalitions of supporters among *ey opinion lea.ers! involving in.ivi.uals most
affecte. y the changes! an. empo:ering in.ivi.uals to implement aspects of the change process
are also :ays to help re.uce resistance- Sharing as much information as possile on a regular
asis! an. as roa.ly as possile! helps inhiit the ten.ency people have to ma*e up their o:n
1$
information in the presence of amiguity or uncertainty- Re.ucing rumors y provi.ing factual
information! provi.ing fee.ac* on initiatives! an. hol.ing pulic events to share up&.ates are all
:ays to engen.er support-
Ainally! among the most important initiatives that accompany culture change is a change
in symols- Symols are visual representations of the ne: state! so i.entifying symols that
signify a ne: future is an important part of culture change- Symols help organi6ation memers
visuali6e something .ifferent! provi.e a ne: interpretation of the organi6ation! an. provi.e a
rallying point for people supportive of the change- Fe: logos! ne: structures! ne: events! ne:
charters! or other symolic rallying points can e use.-
The organi6ation in Aigure % pro.uce. vi.eo tapes featuring in.ivi.uals :or*ing on the
culture change to highlight progress in the change efforts! hel. regular to:n meetings to share
up&.ate. information! sent teams of representatives to various parts of the organi6ations to
a..ress >uestions an. hol. focus groups! an. create. numerous symols?inclu.ing specific
company songs?signaling the successful culture change initiative-
7- !eadership development. All organi6ational change re>uires lea.ership!
champions! an. o:ners- Culture change sel.om occurs ran.omly or ina.vertently in
organi6ations! an. it re>uires lea.ers :ho are consciously an. consistently .irecting the process-
A great .eal has een :ritten on the role of lea.ers in change processes! of course! an. a revie:
of change lea.ership principles are not repeate. here- 4o:ever! t:o *ey points shoul. e ma.e-
5ne is that each aspect of the culture change process?for e;ample! each strategic initiative! each
communication process! an. so forth?nee.s a champion or someone :ho accepts o:nership for
its successful implementation- Accountaility is maintaine. est :hen specific in.ivi.uals are
.esignate. as o:ners of the initiative?an. an array of o:ners helps ensure roa. participation
)0
an. commitment- Secon.! not only must current lea.ers champion the culture change! ut a
cohort of future lea.ers must e prepare. to lea. the organi6ation :hen the culture change has
een put in place- The ne: lea.ership competencies that :ill e re>uire. in the preferre. future
culture must e specifie.- 7ifferences et:een current lea.ership an. future lea.ership
re>uirements shoul. e articulate.- Then! learning activities! .evelopmental e;periences! an.
training opportunities must e put in place to .evelop the nee.e. lea.ership competencies-
Selection processes must e aligne. :ith the strengths nee.e. in the future culture! not Eust the
:ay things are at the present time-
The organi6ation illustrate. in Aigure % implemente. activities such as the follo:ing to
help ensure that sufficient ench strength e;iste. in their lea.ership ran*s to lea. the transforme.
organi6ational culture8 113 on&going %'0 fee.ac* processes :ith sponsorship an. coaching! 1)3
formal mentoring y 1mainly3 senior e;ecutives! 1%3 management .evelopment an. training
programs! 1"3 assigne. rea.ing material outsi.e the normal :or*&relate. material! 1(3 atten.ance
at professional conferences each year! 1'3 a formali6e. support group for high potential lea.ers!
173 .evelopmental an. stretch assignments at :or*! 1#3 non&:or* service opportunities aime. at
giving ac* to the community-
Summary
Almost all organi6ations .evelop a .ominant type of organi6ational culture over time! an.
these culture types can e relialy an. vali.ly assesse. using an instrument ase. on the
Competing Jalues Arame:or* 1see Cameron G Kuinn! 1$$$3- 9articular types of cultures form
as certain values! assumptions! an. priorities ecome .ominant :hen organi6ation a..ress
challenges an. a.Eust to changes- These .ominant cultures help the organi6ation remain
)1
consistent an. stale as :ell as a.aptale an. fle;ile in .ealing :ith a rapi.ly changing
environment- @hereas organi6ational cultures often evolve in pre.ictale :ays over time
1Cameron G @hetten! 1$#1=Kuinn G Cameron! 1$#%) organi6ations face the nee. to change
cultures as a result of environmental Eolts! mergers an. ac>uisitions! ne: mar*etplace
opportunities! or the nee. to implement certain *in.s of strategic or structural changes- @ithout
a change in culture! for e;ample! most change initiatives such as TKM! .o:nsi6ing! mergers an.
ac>uisitions! an. team:or* often fall short of e;pectations 1Cameron! 1$$73- The prolem :ith
trying to change organi6ational culture is that it is so amorphous an. vague- /t is har. to *no:
:hat to target an. :here to egin- Culture is often the catch&all concept for almost anything in
organi6ations that is .ifficult to specify or assess- This article has e;plaine. one relatively :ell&
accepte. process for effectively lea.ing organi6ational culture change- An instrument has een
.iscusse. that helps assess the organi6ation<s current culture! its preferre. future culture! an. the
strategic lea.ership activities that are nee.e. to help culture change occur-
The main oEectives in outlining this assessment process! inclu.ing the seven steps for
implementing culture change! are to help ensure that the organi6ation is clear from the outset
regar.ing :hat its current culture is an. :hy it nee.s to change- A common mista*e in
organi6ations .esiring to improve is that they .o not create a common vie:point regar.ing :here
the organi6ation is starting an. ho: that .iffers from an i.eal future state- Unsuccessful
organi6ations often launch a change initiative :ithout consi.ering the nee. to .evelop a
consensual vie: of the current culture= to reach consensus on :hat change means an. .oesn<t
mean= the specific changes that :ill e starte.! stoppe.! an. enhance.= the small :ins an.
celerations that are re>uire.= the measures! metrics! an. milestones re>uire. for accountaility=
the re>uisite communication system nee.e.= an. the on&going lea.ership .eman.s face. y
))
organi6ations in the mi.st of culture change 1Cameron! 1$$73- This e;planation provi.es a short
ut :ell&teste. formula for overcoming the common ostacles to culture change an. helping to
ma*e the process of culture change more systematic-
Research Directions
This culture change process! of course?:hile use. :i.ely in hun.re.s of organi6ations
?also gives rise to a variety of research >uestions that necessitate systematic investigation- A
comparison of the 5rgani6ational Culture Assessment /nstrument 15CA/3 an. other culture
assessment instruments has never een un.erta*en! for e;ample! so the relationships among
various .imensions of organi6ational culture have not een clarifie.- Comparing the vali.ity an.
reliaility of a variety of culture assessment instruments has! thus far! never een un.erta*en-
Moreover! i.entifying the effects of various .imensions of culture on organi6ational performance
re>uires more systematic investigation- @hereas some research has een con.ucte. on these
relationships 1e-g-! Cameron G Areeman! 1$$13! too little is *no:n aout the relationships among
various .imensions of culture! their impact on performance! an. the effects of changes in cultural
.imensions- /n&.epth case stu.ies of successful culture change initiatives are rare in the
literature! as are other forms of systematic measurements of cultural .imensions- More
>ualitative as :ell as >uantitative measures of organi6ational culture :ill certainly lea. to a
richer un.erstan.ing of culture an. its *ey .imensions-
The culture change process itself also egs for systematic assessment- @hich of the steps
is most crucial! :hich has the most impact on performance! :hich must e achieve. in
collaoration :ith other steps as oppose. to eing in.epen.ent in its effect! an. :hich se>uence
the change process must follo: to e most effective all are areas in :hich systematic
)%
investigation can pro.uce a..itional insight- The sources of .ata?top managers compare. to a
.iagonal slice of employees! for e;ample?may have impact on culture profiles! ut .ifferences
among various samples of evaluators have not een systematically compare.- The e;tent to
:hich evaluators must also e implementers of culture change initiatives is also an area of
controversy an. nee.e. investigation-
As in any en.eavor in :hich comple; an. amiguous concepts are eing stu.ie. along
:ith their comple; an. amiguous relationships to performance! research on organi6ational
culture an. the change process is neither simple nor necessarily straightfor:ar.- /t re>uires
careful .efinitions! measurements! an. theoretical frame:or*s- The Competing Jalues
Arame:or* .iscusse. here is one such useful frame:or*- /mportantly! empirical evi.ence .oes
e;ist highlighting the importance an. effectiveness of culture change efforts! an. the crucial role
culture plays in accounting for the success of other *in.s of organi6ational change initiatives is
une>uivocal- Continuing research on the measurement an. process of changing of organi6ational
culture! conse>uently! is certainly an important an. :orth:hile en.eavor-
)"
igure ! The Competing Values rame"or#
Individuality
Flexibility
Culture Type$ C%A& Culture Type$ AD'OCRAC(
Orientation$ CO%%A)ORAT* Orientation$ CR*AT*
Internal External
Maintenance Positioning
Culture Type$ '+*RARC'( Culture Type$ MAR,*T
Orientation$ CO&TRO% Orientation$ COMP*T*
Stability
Control
)(
Transforming
Change
%ong-term
Change
+ncremental
Change
ast
Change
igure . */amples of Culture Profiles for Si/ Organizations
)'
igure 0 Comparing an Organization1s Current an2 Preferre2 uture Culture
Profiles

Preferre2
uture Culture
Current Culture
Clan
A2hocracy
'ierarchy Mar#et
)7
Appen2i/ The Organizational Culture Assessment +nstrument
3 ,im Cameron an2 the Regents of the 4ni5ersity of Michigan
". #$I%&%' C(&)&C'*)I+'IC+
A- The organi6ation is a very special place- /t is li*e an e;ten.e. family- 9eople seem to share
a lot of themselves-
B- The organi6ation is a very .ynamic an. entrepreneurial place- 9eople are :illing to stic*
their nec*s out an. ta*e ris*s-
C- The organi6ation is very pro.uction oriente.- A maEor concern is :ith getting the Eo .one-
9eople are very competitive an. achievement oriente.-
7- The organi6ation is a very formali6e. an. structure. place- Bureaucratic proce.ures
generally govern :hat people .o-
,. #)-&%I.&'I#%&! !*&*)+
A- The lea.ers of the organi6ation are generally consi.ere. to e mentors! facilitators! or parent
figures-
B- The lea.ers of the organi6ation are generally consi.ere. to e entrepreneurs! innovators! or
ris* ta*ers-
C- The lea.ers of the organi6ation are generally consi.ere. to e har.&.rivers! pro.ucers! or
competitors-
7- The lea.ers of the organi6ation are generally consi.ere. to e coor.inators! organi6ers! or
efficiency e;perts-
/. $&%&-*$*%' #0 *$1!#2**+
A- The management style in the organi6ation is characteri6e. y team:or*! consensus an.
participation-
B- The management style in the organi6ation is characteri6e. y in.ivi.ual ris*&ta*ing!
innovation! fle;iility! an. uni>ueness-
C- The management style in the organi6ation is characteri6e. y har.&.riving competitiveness!
goal .irecte.ness! an. achievement-
7- The management style in the organi6ation is characteri6e. y careful monitoring of
performance! longevity in position! an. pre.ictaility-
3. #)-&%I.&'I#% -!4*
A- The glue that hol.s the organi6ation together is loyalty an. mutual trust- Commitment to this
organi6ation runs high-
B- The glue that hol.s the organi6ation together is orientation to:ar. innovation an.
.evelopment- There is an emphasis on eing on the cutting e.ge-
C- The glue that hol.s the organi6ation together is the emphasis on pro.uction an. goal
accomplishment- Mar*etplace aggressiveness is a common theme-
7- The glue that hol.s the organi6ation together is formal rules an. policies- Maintaining a
smooth running organi6ation is important-
5. +')&'*-IC *$1(&+*+
A- The organi6ation emphasi6es human .evelopment- 4igh trust! openness an. participation
persist-
B- The organi6ation emphasi6es ac>uiring ne: resources an. meeting ne: challenges- Trying
ne: things an. prospecting for ne: opportunities are value.-
C- The organi6ation emphasi6es competitive actions an. achievement- Measurement targets
an. oEectives are .ominant-
7- The organi6ation emphasi6es permanence an. staility- 2fficient! smooth operations are
important-
)#
6. C)I'*)I& #0 +4CC*++
A- The organi6ation .efines success on the asis of .evelopment of human resources!
team:or*! an. concern for people-
B- The organi6ation .efines success on the asis of having the most uni>ue or the ne:est
pro.ucts- /t is a pro.uct lea.er an. innovator-
C- The organi6ation .efines success on the asis of mar*et penetration an. mar*et share-
Competitive mar*et lea.ership is *ey-
7- The organi6ation .efines success on the asis of efficiency- 7epen.ale .elivery! smooth
sche.uling! an. lo: cost pro.uction are critical-
)$
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