Sunday, November 29, 2015

First Determine the Strength of the Culture and then...

This week’s MSLD 631 blog compares two leaders’ (Ret. General Stanely McChrystal & Jim McIngvale) approaches to change and how their approaches relate to the two figures (15.4 - Relative Strength of Corporate Cultures & 15.5 – The Strategy Culture Matrix) in the Brown (2011) text found in Chapter 15, Organization Transformation and Strategic Change. Stanely McChrystal’s and Jim McIngavale’s stories to change is provided in Listen, learn...and then lead and Influencer | Gallery Furniture Video Case Study respectively. A review of these videos is needed to follow the rationale used in this blog to explain why their actions and approaches make sense.

Jim McIngvale and Gallery Furniture

               Jim McIngvale (known in the furniture industry as “Mattress Mack”) started in the furniture business in 1981, and like other established retail businesses the events of Sep 11, 2001 threatened to put him out of business. If a drop of 75% in core customers was not enough, a fire in May 2009 at a main store placed the business on life support (VitalSmarts, 2012).
            The steps Jim took before his company went under changed everything. A simple thing such as picking up a business journal and reading about how to transform his company caught his attention. He would follow through by changing the behaviors of all the employees at Gallery Furniture to bring more a positive experiences to their customers when they shopped at his stores, which in-turn would bring more revenue into the store. When comparing Jim’s transformation of his company’s culture from on where employees where indifferent to the customers to one of staying engaged with the customers to Figure 15.5 and Figure 15.5 shown below, it is easy to understand why this change in culture went rather smoothly and why it was needed.

          (Brown, 2011, p. 406-407)

When determining the culture strength of Jim’s company before the changes were implemented using Figure 15.4, the culture at Gallery Furniture was weak and with a weak culture in place it is easier to make changes to the culture and would explain why the employees did not put up much resistance to the changes. The weak culture was also a contributing factor to the underachieving performance of the company that remained unremarkable to in the Post 9-11 era.
When comparing the company’s situation to figure 15.5, the company’s survival depended on transformation so the need for strategic change was high.  Compatibility of the culture change needed to make the transformation was low. One might think that Change the Strategy would be needed in such a case, but Brown (2011) provides this advice that changes that direction to Manage Around the Culture “Here the critical point is whether the changes can be implemented with a reasonable probability of success.” (p. 407).  Because the change itself is about a change in culture itself, and Figure 15.4 indicates this change in culture is likely to succeed, Manage Around the Culture is the clear choice for implementing the change.
So just how does one “manage around the culture” when it’s the culture that your trying to change? Confusing? It may seem that way. The approach to changing the culture at Galley Furniture is not to make it about changing the culture necessarily. No the change agents are zoomed into the specific behaviors (like training on follow-up calls, and prospecting) that make up the culture.

 Ret. General Stanely McChrystal and the Rangers

Having served 20 years in the military, my initial impression on this portion of the assignment was “piece of cake”. When will I learn that my initial impressions are almost never accurate!
McChrystal’s dilemma, while focused on the same event of 9-11 as Jim’s, was also about how technology has incrementally changed the Army’s way of doing business and open my eyes to the fact that the Armed Forces in general are really a remarkable set of highly adaptable organizations in a very oligarchic traditional hierarchical system. Seems to be a paradox, and it is really…but one part of military training that is drilled into soldiers, sailors and airman is to remain adaptable and be ready for anything. From day one of basic training you’re told that “you’re a GI (Government Issue) and your job is to be ready for anything”. So the culture of flexibility and adapting to new environments begins early for all new recruits. For the ones that don’t get it (adapt to the culture), they are weeded out before basic training is completed.
A review of Figure 15.4 and 15.5, as it applies to the McChrystal’s situation when 9-11 occurred would indicate a strong culture, high need for strategic change and high compatibility with existing culture perfect match for the military mind…”let’s go kick some terrorist butt”!
The other change topics that McChrystal refers to in his discussion concerns incremental changes that sneak up on you. He refers to having to develop teams without able to reach out and touch that team member, in having to deal with generational gaps, in watching a battle unfold on a live video stream. McChrystal refers back to the common bonds and values that are shared between all soldiers, and that is that they will take care of each other. I’m not convinced that just taking care of each other is enough. Perhaps if given an opportunity, McChrystal could elaborate more on this point. The culture of change that is ingrained into new recruits from day one, is in my mind, a critical factor in the military staying current and relevant into the 21st Century. Carrying Figure 15.4 and 15.5 around with you to help you decide how to best implement change might also be helpful.

References:
Brown, R. D, (2011). An experiential approach to organization development (Eighth edition.). Upper Saddle River, NJ: Prentice Hall.
VitalSmarts Video (2012, September). Influencer | gallery furniture video case study [Video file]. Retrieved from https://www.youtube.com/watch?v=E20RW75Fhu4.

McChrystal, S, (2012, March). Listen, learn…then lead [Video file]. Retrieved from http://www.ted.com/talks/stanley_mcchrystal.

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