Showing posts with label culture adaptation. Show all posts
Showing posts with label culture adaptation. Show all posts

Friday, August 31, 2012

Business Culture: Part 3, Evolution of Culture

This is the third part in a series of six blog posts on Business Culture.  Cultures are rarely designed, but emerge from sustained human relationships.  This part explores the evolution of culture as a product of collaboration with flexible roles and shared goals.  VDML (value Delivery Modeling Language) under development at OMG, provides for modeling the formal context and informal collaborations of an enterprise, but does not include culture that drives participation and supports agility.
When people come together to collaborate, they have a shared purpose, but they do not have a shared culture that is aligned with that shared purpose.  They have personal interests, beliefs, capabilities and experiences along with personal relationships from other cultures and activities in their lives.  The personal interests of participants must be compatible with respect to the goals, objectives and methods of the collaboration, and they will be more comfortable with other participants who have similar interests outside those that are pertinent to the collaboration. 
Note that under my definition of collaboration, I include citizens of a country, professional associations and members of a religion as well as corporations, departments, committees, task forces and personal relationships.  Any collaboration can develop a culture.
If given the opportunity, individuals that join a collaboration with a compatible culture will look for ways they can contribute to the shared purpose in a way that is consistent with their personal interests and beliefs, and where they can best use their capabilities, experiences and personal relationships.  They will evolve their individual roles by working with others and developing consensus on how they and others communicate and contribute.  Their roles will be influenced by successes of the group, reinforcement they receive for their individual contributions, and satisfaction of their personal interests.
Patterns of activities and interactions—business practices—will emerge to address recurring undertakings.  These will become accepted practices of the culture.  Successes will shape the related patterns of work and individual contributions, but these patterns are not cast in stone—they may not be documented.   The roles defined by these practices tend to reflect the individual characteristics of the members who were part of the original collaboration.  Thus when membership changes, the roles and associated practices may need to be adapted, or else the new members may not fit in, and the contributions of departing members may be lost.  The participant interests, beliefs, experiences, capabilities and relationships are less likely to change than the roles and practices.
As collaboration continues, the group will encounter different situations and adapt to improve their effectiveness.  This will drive adaptations of roles, activities and contributions, but it will also influence interests, beliefs and individual commitment.  Some members may increase their commitment and loyalty while others may lose interest and become less committed or leave.  The departure of less committed individuals strengthens the culture.  The resulting synergy is the real strength of culture. 
Culture supports and adopts certain business practices but it provides a complementary source of resilience and flexibility that transcends any given practice. A business practice can be formalized as a business process, but the rigidity of a business process may undermine the ability of the group to respond to exceptions or changes of participants.  A formal business process may also limit the roles and expectations of participants to the lowest common denominator—failing to utilize the unique talents and interests of individuals.
For example, a production line engages a number of individuals in well-defined roles.  Their behavior and relationships are tightly prescribed.  Culture has little effect on what work is done and how it is done.  However, the culture of the production worker community may affect absenteeism, grievances, responses to changes in production rates, effort to reduce defects or support for operational improvements.  The production workers have shared interests and expectations and probably have practices for dealing with these issues.  Culture clearly can be a blessing or a curse.
As another example, information systems development requires much more judgment, individual initiative and collaboration.  An application development team may be assembled for a particular project with little common experience.  The team will go through a period of adjustment for getting to know each other and their respective roles and capabilities.  A team that works together harmoniously for an extended period of time will evolve its own culture that will enable its members to organize a response to a problem or new situation with minimal discussion.  Each of them knows what to expect from the others—including their strengths and weaknesses. They can be highly efficient and fulfilled by their work.  The experienced team may be highly effective in dealing with a variety of circumstances and adapting to new challenges.  They will develop business practices that are more like Lego blocks, to be assembled in different patterns to address particular circumstances.
If directed to use a prescribed methodology, an established team could become less effective than a newly formed one.  They will be disoriented by a methodology if it appears to conflict with their cultural roles, their relationships with others, their personal interests, their successful past experiences or their “Lego blocks.” 
On the surface, culture for a particular collaboration may be evidenced by accepted business practices, or “the way we do things,” but culture is much more than a collection of practices.  Culture includes “who we are, what we do, and why we do it,” both individually and collectively.

Business Culture: Part 1, Why Is Culture Important

This is the first in a Six-Part series of posts about business culture:
·         Part 1, Why Is Culture Important
·         Part 2, Examples of Cultural Challenges
·         Part 3, Evolution of Culture
·         Part 4, The Corporate Cultural Network
·         Part 5, Cultural Inertia
·         Part 6, An Abstract Model of Culture

Introduction

I define culture as a collection of intangible, informal forces and ideas that influence how and why people collaborate for a shared purpose.  It includes the interests, beliefs, experiences and patterns of work that extend beyond any formally defined roles and responsibilities of the participants.  A culture tends to resist change, but at the same time it can continually evolve to address changes of membership and environment.  Culture can make the difference between success or failure of a collaboration, and thus can make the difference between success and failure of an enterprise.
The LinkedIn Business Architecture Community recently had a lengthy discussion under the topic “Architecture of Business Culture.”  Much of the focus was about how to align culture with corporate goals. Of particular interest is how to resolve culture conflicts such as those that may occur in business reorganizations, consolidations, alliances, mergers and acquisitions.  Differences in business practices in these cases are potential sources of culture conflict. As the Business Architecture Community discussion evolved to a focus on modeling business culture, I was inspired to explore modeling culture in more depth, leveraging some of my past work (discussed in Part 2).

Business Impact of Culture

Culture extends a formal business model with informal relationships and contributions.  The effects of culture are significant, but understanding of culture tends to be intuitive.  When describing culture, the focus is usually on the visible behaviors and artifacts rather than the underlying forces that drive the behavior of individuals and the group.
Culture has become increasingly important to business success.  The traditional business organization has been driven, top-down, with employees expected to focus on their prescribed tasks.  Over time, rote tasks have become automated and the  workforce has become a workforce of knowledge workers who can deal more effectively with non-routine challenges.  Knowledge work deals with the unpredictable, and knowledge workers must be relied upon to recognize and solve problems based on their own skills and insights rather than formally defined roles and processes.  The personal interests of knowledge workers influence their initiative and creativity in their work.  In addition, most knowledge workers rely on informal relationships and support from other knowledge workers, both inside and outside their formal group, to be most effective.  These interests and informal relationships are key elements of culture.
Not only has the nature of work changed, but reorganizations, consolidations, outsourcing, alliances, mergers and acquisitions have become frequent business events.  These require reconciliations of cultures that can ripple through an organization.  In addition to disrupting the way affected groups do things, these changes may result in conflicts between individual interests and the interests of others, as well as the goals of their organization, the incentive system or the broader corporate culture.  Compatibility of organizations is much more than the similarities of the businesses; it includes compatibility of the interests of individuals with organizational goals and the interests of co-workers as well as the willingness of individuals or their cultures to adapt to new business patterns and technologies.
Globalization of business is another factor driving concerns about culture.  In addition to obvious differences between people in different countries, people have different attitudes, interpersonal relationships and expectations regarding the way work gets done.  If done poorly, mixing people of different cultures may cause confusion and conflict along with degraded productivity and quality of work.  If done well, diversity can be an advantage.
Finally, businesses must be prepared to adapt to changes in technology and market opportunities.  An effective business culture can streamline the work of transformation if existing relationships and expectations are properly engaged.  There is less need to develop detailed plans if everybody knows what is expected of them and what they can expect from others.  However, business changes may be difficult or impossible if they challenge culture.

Purpose of this series

The purpose of this series is to explore various aspects of culture, the conceptual elements of culture and their relationships.  These discussions are intended to develop a shared understanding of business culture as a basis for a proposed reference model discussed in Part 6.  Such a model will enable us to better work with the mechanisms that develop and evolve culture and potentially shape or inspire a culture to achieve exceptional goals.  This model represents a potential extension of VDML (Value Delivery Modeling Language), a business modeling language under development at OMG (Object Management Group).  See Outside-In Business Architecture with VDML and earlier posts about VDML on this blog.