Fundamentals of Cultural

Transformation
Implementingwholesystemchange
ByRichardBarrett

Abstract
Thispaperexplorestheconceptofwholesystemchange.Itidentifiesthefourprinciples
necessaryforwholesystemchange,andprovidesaninestepprocessforimplementing
culturaltransformation.

Wholesystemchange
Asthetitleofthispapersuggests,forculturaltransformationtooccurthewhole
systemhastochange.Icanbestexplainwhatismeantbythetermwholesystemby
referringtoFigure1.Thefourquadrantsinthisfigurerepresentthefourdifferent
perspectivesofahumansystem.1
Theperspectiveasviewedfrominsideanindividualpersonalvaluesand
beliefs(topleftquadrant)
Theperspectiveasviewedfromoutsideofanindividualpersonalactionsand
behaviours(toprightquadrant)
Theperspectiveasviewedfrominsideofacollectiveculturalvaluesand
beliefs(thebottomleft)
Theperspectiveasviewedfromoutsideofacollectivesocialstructures,
systems,processes,actionsandbehaviours(bottomrightquadrant).

KenWilbur.ABriefHistoryofEverything.NewYork:Shambala,1996;p.71.

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Thefourquadrantsarelinkedinthefollowingway.Whenindividualschangetheir
valuesandbeliefs(topleftquadrant),theirbehaviourschange(topright).When
sufficientnumbersofpeoplechangetheirvalues,beliefsandbehaviors,thenashiftin
thecollectivevaluesandbeliefsoccurs(bottomleft).Thisresultsinachangeinthe
behavioursofthewholegroup(bottomright).

Figure1:Thefourquadrantsofhumansystems
Inanorganisationalsetting,thevalues,beliefs(topleftquadrant),andbehaviours(top
rightquadrant)oftheleaderandtheleadershipgroupsignificantlyinfluencethe
valuesandbeliefsofthecollective(bottomleftquadrant)andthebehavioursofthe
collective(bottomrightquadrant).Inotherwords,theleadersvalues,beliefsand
behaviourssignificantlyinfluencethecultureoftheorganisation.
Tobeevenmoreprecise,thecultureofanorganisationisareflectionofthevaluesand
beliefsofthepresentleadersandtheinstutionalisedlegacyofthevaluesandbeliefsof
pastleadersasreflectedinthestructures,systems,processes,policiesandprocedures
oftheorganisation.
Fourconditionsmustbemetforwholesystemchangetooccur.Thesearedescribed
belowandshowninFigure2.
Personalalignment:Theremustbeanalignmentbetweenthevaluesandbeliefs
ofindividualsandtheirwords,actions,andbehaviours.Thisisparticularly
importantfortheleadershipgroup.Itisimportantthatleadersareauthentic
thattheywalktheirtalk.
Structuralalignment:Theremustbeanalignmentbetweenthestatedvaluesof
theorganisation,andthebehavioursoftheorganisation,asinstitutionalisedin
thestructures,systems,processes,policies,incentivesandprocedures.Itis
importantthatthevaluesoftheorganisationarefullyreflectedinallthe
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structures,systems,processes,policies,incentivesandproceduresofthe
organisationtoinstitutionalisetheculture.
Valuesalignment:Theremustbeanalignmentbetweenthepersonalvaluesof
employeesandthestatedvaluesoftheorganisation.Itisimportantthatall
employeesfeelathomeintheorganisationandcanbringtheirwholeselvesto
work.
Missionalignment:Theremustbeanalignmentbetweensenseofmotivation
andpurposeofallemployees,andthemissionandvisionoftheorganisation.It
isimportantthateveryemployee,managerandleaderhasaclearlineofsight
betweentheworktheydoeachdayandthemissionorvisionofthe
organisation,sotheyknowhowtheymakeadifference.
Everyculturechangeortransformationinitiativemustaimatsatisfyingallfourof
theseconditionsifitistobesuccessful:itwillfailifthewholesystemdoesntchange.

Figure2:Thefourconditionsforwholesystemchange
Theprocessofwholesystemchange
Withthisbackgroundandunderstandingwecannowdelineatethekeystepsin
implementingaculturaltransformationprocess.
Step1:Commitmentandownership
Theprocessofwholesystemchangebeginswiththepersonalcommitmentofthe
leaderandtheleadershipteamtotheirownpersonaltransformation.Thisisnecessary
becausethecultureoftheorganisationisareflectionofleadershipconsciousness.If
youwanttransformthecultureofyourorganisation,theleadersmusttransformor

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theleadersmustchange.Organisationaltransformationbeginswiththepersonal
transformationoftheleaders.
Ifthereisnocommitmentbytheleaderandhisorherleadershipteamtopersonal
behaviourchangeitwillbepointlessembarkingonanyformofculturaltransformation
process.
Aculturechangeinitiativemustbeownedandpersonallysupervisedbytheleaderof
anorganisation,andfullysupportedbytheleadershipteam.Culturaltransformationis
notsomethingthatcanbedelegated:norcanitbehandedofftoateamofoutside
consultants.Itissomethingthattheorganisationhastodoforitself,anditisalways
ongoing:itisnotaproject,itisaprocess!
Atthisstageitwillbeimportant,ifheorshehasnotalreadydoneso,fortheleaderto
handpickhisleadershipteam.Gettingtherightpeopleonthebusandsittinginthe
rightseatsisextremelyimportant.
Itisquiteusualfortheretobeoneortwonaysayersintheleadershipteamwhoare
notwillingtosignupforpersonaltransformation.Theyarehappyforotherstodoit,
buttheyarenotinterestedthemselves.Thisisthepointwheretheyhavetodecideto
eithergetonoroffthebus.Thereisnoroomonthebusforanyonewhoisnota
willingparticipantandcommittedtotheprocess.Itisusuallyatthispointthatthe
naysayersstartlookingforalternativeemployment.Itisimportantthattheleaderbe
awarethatthismighthappen,andiswillingtogoaheadforthegoodofthecompany.
Step2:Baselinemeasurement
Aftertheleaderandtheleadershipteamhavecommittedtotheprocess,beginby
carryingoutaculturalvaluesassessmentofthewholeorganisation,and,atthesame
timebuildascorecardoftheorganisationscurrentlevelsofperformancerevenues,
employeeengagement,customersatisfaction,culturalentropy,valuesalignment,etc.
Theideahereisdevelopasetofbaselinemeasurementsfromwhichyoucanmeasure
theprogressofyourculturaltransformationinitiative.
Step3:Visionandmission
Afteryouhavecompletedyourbaselinemeasurements,thenextstepistodefine
wherethecompanyisgoingandhowitisgoingtogetthere.Itistimetodevelopan
internalandexternalvisionandmissionfortheorganisationusingtheFourWhys
processdescribedinLiberatingtheCorporateSoul.2
Iftheorganisationalreadyhasavisionandmission,itwillbeimportanttorevisitit,
especiallyiftherearenewpeopleintheleadershipteam.Settingthevisionisthejob
oftheleadershipteam.Thistaskcannotbedelegated.Thedirectreportsofthe
leadershipteam(theteamsofthemembersoftheleadershipteam)shouldbeasked

RichardBarrett.LiberatingtheCorporateSoul:BuildingaVisionaryOrganisation.Boston:Butterworth
Heinemann,1998;pp.103123.

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fortheirinputsandcommentsoncetheleadershipteamiscomfortablewiththevision
statementstheyhaveproduced.
Thevisionstatementsshouldbe:
Shortandeasilymemorable
Inspirepeopleintheorganisationtomakeadifference
Step4:Valuesandbehaviours
Aspartoftheprocessofthedevelopingavisionandmissionfortheorganisationitwill
beimportantalsotodefinetheorganisationsvaluesandbehaviours.Theresultsof
theculturalvaluesassessmentwillbeusefulinthisregard.Totheextentpossible,all
employeesshouldbeinvolvedinthisprocess.Thevaluesshould:
Besinglewordsorsmallphrasesthatareeasilymemorable
Supportthevisionandmission
Befour,andnotmorethanfive
Includerelationshipvaluesaswellasorganisationalvaluesi.e.trustand
continuousimprovement
Oncetheorganisationsespousedvalueshavebeenidentified,twoorthreebehaviour
statementsshouldbedevelopedforeachvalue.Thepurposeofdevelopingbehaviour
statementsistwofold:
Togiveclaritytowhateachespousedvaluemeansinthecontextofthedayto
dayoperationsoftheorganisation
Toprovideawayofevaluatingexecutiveandemployeeperformance.
Becausebehavioursarealwayscontextual,itisnotunusualfordifferentbehavioursto
beusedforthesameespousedvaluesindifferentpartsoftheorganisation.The
behaviourstatementsshould:
Beshort,memorable,onesentencestatements
Describetheactionsthatsupportthevaluetheyrepresent
Beappropriateforthecontextoftheworkunit
Step5:Compellingreasonsforchange
Theremustbeaclearunderstandingamongtheexecutivepopulationaboutwhythe
organisationisembarkingonawholesystemchangeprocess.Thechangeprocess
mustbegroundedinreality,anddrivenbyrealisticoptimismthatprovidesthe
employeeandexecutivepopulationswithhopeforsuccess.Peoplewanttobe
associatedwithsuccess.Incompaniesthataresufferingfromlowperformance,the
compellingreasonsforchangeareusuallyobvious.Theissuesthatunderliethepoor
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performancecaneasilybeidentifiedfromtheresultsoftheculturalvalues
assessment.
Forhighperformingcompanies,thecompellingreasonsforchangeshouldfocuson
threefactorshowthecompanycanstayadaptable,positioningitselfforthefuture,
andbuildingitslongtermresilience.
Step6:Personalalignment
Personalalignmentshouldbeginwiththeleadershipteam.Tothisend,itwillbe
importantforallmembersoftheleadershipteam,andtheextendedleadershipgroup,
tofocusontheirownpersonalmasterybyseekingfeedbackand,ifnecessary,receive
coaching,usinga3600instrumentsuchastheLeadershipValuesAssessment(LVA).
Oncetheleadershipteamhasembarkedonaprocessofpersonalmasterytoenhance
theiremotionalintelligence,thedirectreportsoftheleadershipteamshouldfollow
suit.Eventually,everyoneintheorganisationthathasamanagementorsupervisory
roleshouldparticipateinsomeformofpersonalmasteryprocess.
Step7:Structuralalignment
Thepurposeofthestructuralalignmentprogrammeistoreconfigurethestructures,
systems,processes,policies,incentivesandproceduressothattheyfullyreflectthe
desiredvision,mission,valuesandbehavioursoftheorganisation,thereby
institutionalisingthemintothecultureoftheorganisation.Thesystemsandprocesses
thatmayneedtobereconfiguredinclude:
Newemployee/executiveselection
Newemployee/executiveorientation
Employee/executiveperformanceevaluation
Employee/executivepromotioncriteria
Selectingtalentedperformersforfasttrackdevelopment
Leadershipdevelopmentprogrammes
Managementtrainingprogrammes
Valuesawarenessprogrammes.
Inlargeorganisations,structuralalignmentcantakeupto2to3yearstoimplement.
TheresponsibilityforthisusuallyfallstotheHumanResourcefunction.Thisstepisthe
onethatismostfrequentlyforgotteninculturaltransformationinitiatives.
Step8:Valuesalignment
Thepurposeofthevaluesalignmentprogrammeistoinculcatetheespousedvalues
andbehavioursoftheorganisationintotheexecutiveandemployeepopulation.Apart
fromtheinformationalcontent,theprogrammeshouldgiveparticipantsthe
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opportunitytoexploretheirownvalues,andunderstandandpracticetheconceptof
valuesbaseddecisionmaking.Weusevaluesbaseddecisionmakingsothatwecan
consciouslycreatethefuturewewanttoexperience.Forexample,ifwevaluetrust,
thenwemakedecisionsthatallowustodisplaytrust.Ifwevalueaccountability,then
wemakedecisionsthatallowustodisplayaccountability.
Step9:Missionalignment
Thepurposeofthemissionalignmentprogrammeistoinculcatethevisionandmission
oftheorganisationintotheexecutiveandemployeepopulation.Apartfromthe
informationalcontent,theprogrammeshouldgiveparticipantstheopportunityto
exploretheirownsenseofmissionandvision,andseehowtheirrolesupportsthe
visionormissionoftheorganisation.Itisveryimportantthateveryoneinthe
organisationhasaclearlineofsightbetweentheworktheydoeachdayandthevision
and/ormissionoftheorganisation.Withoutaclearlineofsight,peoplearenotableto
valuetheircontributionandunderstandhowtheymakeadifference.
FrequentMistakes
Thethreemostfrequentmistakesthataremadeinculturaltransformationinitiatives
areasfollows:

Mistake#1:Focusonpersonalalignmentonly
Manyorganisationsfocusonpersonalalignmentwithoutdoinganythingabout
structuralalignment.Thisservesonlytoaggravatediscontentanddisillusionmentin
theexecutiveandemployeepopulation.Whenemployeesreturnfrompersonal
masteryprogrammes,theyusuallycomebackwithahigherpersonalawarenessabout
howtointeractwiththeircolleagues.Theyquicklybecomedisillusionedwhenthey
realisethatalthoughtheyhavechanged,theorganisationhasnotchanged.Thenew
behaviourstheyhavelearnedarenotpracticedbytheirsuperiorsandarenot
rewarded.

Mistake#2:Focusongroupcohesiononly
Anotherfrequentmistakeisfocusingonteambuildingwithoutfirstcarryingouta
personalalignmentprogrammethatinvolvespersonalmastery.Thislimitsthe
potentialforsuccessbecausepeopleentertheseprogrammeswithouttheself
knowledgeandinterpersonalskillsnecessarytomaketheteambuildingexercisea
success.Formaximumimpact,teambuildingorgroupcohesionprogrammesshouldbe
precededbyapersonalalignmentprogramme.

Mistake#3:Failuretocustomisethetransformationprogrammes
Changeagentsandconsultantsfrequentlymakethemistakeofusingofftheshelf
personalalignmentorteambuildingprogrammeswhichhavenotbeentailoredtothe
specificneedsoftheorganisation,thedivision,orthebusinessunitwithwhichthey
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areworking.Whenyoucarryoutaculturalvaluesassessmentofyourorganisation,
youimmediatelyknowwhatissuesneedtobetackledandwhattopicsyourpersonal
alignmentandteambuildingprogrammeshouldfocuson.
RichardBarrett
February2010

www.valuescentre.com

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