This week, I came across the
article, “How do you change an organizational culture?” on Forbes.com (Denning,
2011). This article perfectly coincided
with the Sorenson (2009) reading. In the
Forbes.com article, it is emphasized how difficult it is to change the
organizational culture of a company (Denning, 2011). Denning (2011) notes that the culture is intrinsically
related to multiple functions and aspects of the organization; therefore,
change is something that must be done deliberately and with calculation. As mentioned in the Sorenson (2009) reading,
Denning (2011) states that leadership tools is the core of an organizational strategy.
Denning
(2011) cites the organizational culture change at the World Bank as an example
of difficulty in changing organizational culture. The World Bank under the direction of Robert McNamara
in 1968 through 1981, created a gradual culture change (Denning, 2011). He worked with the management staff that
existed when he came into power, and he never tried to reorganize or change until
four years into his position (Denning, 2011).
This method coincides with the Sorenson (2009) reading, which states
that it is important to get all the managers on the same page to be effective
in executing strategy. Sorenson (2009)
also notes the importance of consistency, which McNamara (Denning, 2011) held
to by not implementing change within the organization for multiple years.
McNamara had one vision for the World Bank, and he ensured that his managers understood that vision, which is also a strategy from the Sorenson (2009) reading (Denning, 2011). Sorenson (2009) notes the correlation between strong cultures and strong companies. McNamara led the World Bank by creating a strong culture, and thereby experienced success (Dinning, 2011). After McNamara left the World Bank, other managers came and went, but non had the same effect and stability as he did (Denning, 2011). Maybe those managers would have benefited from the Sorenson (2009) reading, as well.
References:
McNamara had one vision for the World Bank, and he ensured that his managers understood that vision, which is also a strategy from the Sorenson (2009) reading (Denning, 2011). Sorenson (2009) notes the correlation between strong cultures and strong companies. McNamara led the World Bank by creating a strong culture, and thereby experienced success (Dinning, 2011). After McNamara left the World Bank, other managers came and went, but non had the same effect and stability as he did (Denning, 2011). Maybe those managers would have benefited from the Sorenson (2009) reading, as well.
References:
Denning, S. (2011, July 23). How do you change an organizational
culture? Forbes.com. Retrieved from: http://www.forbes.com/sites/stevedenning/2011/07/23/how-do-you-change-an-organizational-culture.
Sorenson, J. (2009, September 1). Note on Organizational
Culture. Harvard
Business School, 1-6.
Cathryn,
ReplyDeleteCould you think of any other reasons that Robert McNamara didn't make any changes to the environment until 4 years in his position? You state that managers have to be on the same page, but what about the employees? How do you think McNamara dealt with them in the first 4 years? I agree that changes should take time and should not be rushed. When there is too much change in a short period of time there can be negative effects on the organization's culture that can be difficult to fix. I think it's important for managers/leadership to be reminded that they should consider everyone who is part of the culture. Great write-up!!!
Cathryn, did Denning talk about any of the strategies that McNamara used to get all of the managers on the same page? Sorensen says that in order to create and sustain a strong organizational culture it is necessary to "invest resources and awareness in symbols and signals that are consistent with the basic assumptions of the culture." Based on the article that you read, do you have any idea what form those sorts of symbols and signals might have taken in the context of the World Bank?
ReplyDeleteDear Cathryn,
ReplyDeleteI found it funny that we both reviewed the same article. (Great minds really do think alike.) I found it fascinating the McNamara had such a strong and enduring affect on the World Bank. As the article stated, when he first arrived McNamara did not immediately bring in new managers or restructure, and when he needed a new manager he relied upon younger talent that was already there.
Do you feel that this way just a matter of his personal style or do you feel that it was a strategic move to gain and keep the trust to the employees that were already established and entrenched the organization?