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Navigating Cultural Leadership in Organizational Change

Explore the dynamics of merging cultures, maintaining vs changing culture, and organizational democracy, with insights on external and internal forces for change. Learn how to communicate, reward, and set examples to navigate resistance and drive successful transformation.

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Navigating Cultural Leadership in Organizational Change

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  1. Sources of Culture • Founder • Change Agents • Experience • National, Regional Culture

  2. Cultural Leadership Maintaining/Changing Culture: • Communicate • Reward • Set Examples

  3. Possible Negative Aspects of Culture • Can impede change • May not tolerate diversity of thought • Can prevent successful mergers and acquisitions

  4. Merging Cultures • Bank of America acquired MBNA (2005) • B of A • “No-nonsense, low-cost operator” • Attire: Business Casual • Everyone participated in discussions • MBNA • Opulent headquarters, generous salaries, lavish perks • Attire: Jackets and Ties • Junior employees kept quiet

  5. Merging Cultures • Senior MBNA managers’ pay cut • MBNA Division: Still dressy in corporate offices and in front of clients; business casual in back offices. • B of A became more conscious of “how they look.” • B of A adopted MBNA’s approach of depending less on computerized decisions and more on human judgment in granting credit • Increasing participation in the MBNA division was difficult.

  6. Organizational Democracy • Organizational democracy is a system based on freedom, not fear and control. • Allows people to self-govern and determine their own destiny. • Designing organizations to realize human potential. • Includes being organic and cross-functional.

  7. Organizational Change:Two Metaphors • Calm Waters (Incremental, Evolutionary) • White Water Rapids (Radical, Revolutionary)

  8. External: Customers Competitors Technology Economic Social Political International Internal: Financial Problems Production Inefficiencies Employee Expectations/ Demands Management Goals Forces for Change

  9. Resistance to Change • Uncertainty • Fear of the unknown • Self-interest • e.g., Fear poorer job conditions or outcomes • Lack of understanding and trust • Don’t believe change necessary • Conflicts • Interdepartmental • Cultural • Personal

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