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do with respect to business and IT and the processes that connect them. The 15
classifications of IT/business culture are the starting point for the identification.
Exhibit 11.3 shows the focus for each class of management culture, and gives
the framework for possible as-is and to-be statements.


EXHIBIT 11.4 Sample Questions for Identifying Culture
Management Culture Template 1

Management Beliefs and Actions As-Is Statement: Are Current To-Be Statement:
Plans and
Is this Should this
Actions
statement true? statement be
Consistent with true in the
this Statement? future?
‘ ‘ ‘ Yes
Yes Yes
IT activities”new initiatives and current
operations”are integral to the ‘ ‘ ‘ No
No No
achievement of our business strategy.
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know
‘ ‘ ‘ Yes
Yes Yes
IT is an important component of our
strategic business initiatives. ‘ ‘ ‘ No
No No
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know
‘ ‘ ‘ Yes
Yes Yes
IT is an important component of, and
consideration in, our business plans and ‘ ‘ ‘ No
No No
business planning processes.
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know
‘ ‘ ‘ Yes
Yes Yes
IT planning is integral to, and done
concurrently with, our business plans. ‘ ‘ ‘ No
No No
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know
‘ ‘ ‘ Yes
Yes Yes
Our business initiatives stand alone; any
necessary technology support is filled in as ‘ ‘ ‘ No
No No
needed.
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know
‘ ‘ ‘ Yes
Yes Yes
Our business unit annual and strategic
plans specifically include IT initiatives. ‘ ‘ ‘ No
No No
‘ ‘ ‘ Don™t Know
Don™t Know Don™t Know




Exhibit 11.4 lists a sample focus for identifying the culture within the first
of the 15 culture classifications shown in Exhibit 11.3. The sample statements
in Exhibit 11.4 express some aspects of the business-to-IT connection. We do
not suggest that any of these culture situations is right or wrong. However, some
culture situations are better for successfully adopting NIE practices. Consequently,
we identify the as-is situation within a company for each culture classification,
227
Part 4: Applying Culture Management Concepts


and then the to-be. The gap between the as-is and to-be establishes a target for
change.
The assessment is based on a set of questions for each of the 15 culture clas-
sifications. While Exhibit 11.4 is a sample, the complete questionnaire process
is tailored to the individual company™s situation in three important ways. First,
the relative significance of the 15 culture classifications is determined. This pri-
oritizes them, to assure the most important ones to the company™s situation are
addressed. Second, the questions themselves are selected to meet the exact com-
pany circumstances. For example, we will employ a different set of questions
for companies that are organized functionally rather than around lines of busi-
ness. Finally, the set of managers answering the questions depends on the com-
pany circumstances.
Exhibit 11.4 is a sample questionnaire template for the first culture classi-
fication, IT™s importance to the business. Two specific objectives are addressed:
first, the as-is to to-be gives a sense of the gaps to be filled. Second, the “con-
sistent with statements” gives direction for the real culture impact on manage-
ment processes, and the prospects for embedding NIE practices within them.

Tool 2: Assess the Maturity Level of the Company™s
Management Processes
Chapter 12 will introduce the Business Value Maturity Model as a tool for assess-
ing the company™s process maturity in areas covered by NIE practices. Although
the focus is on process, there is a close connection between where a company
is with respect to its processes and its culture about the importance and accept-
ance of those processes.
In Chapter 12, we point out that maturity assessment establishes the cur-
rent as-is ability of companies to perform strategy-to-results processes, and
enables a decision on what the company needs to do to improve its ability to
perform those processes. The Chapter 12 goals are overcoming management
culture barriers and improving the company™s ability to act.
Culture sets the boundaries of what is possible for a company to do through
its management processes. The maturity of those processes is dependent on the
culture accepting and acting upon the outcomes of the processes. The ability to
connect the processes (i.e., whether the Strategy-to-Bottom-Line Value Chain can
actually function within an organization) is dependent on management culture.

Tool 3: Change Managers™ Experiences
Culture change is experiential in nature. While Tools 1 and 2 above are about
assessing culture and process maturity, this section is about changing the culture
and impacting process maturity. Our approach is based on the principle that cul-
ture is not changed by dictate or decision or rational arguments. Culture changes
when managers™ experiences lead them to new ways to think about the business.
Culture changes when managers are required, whether by crisis or by new cir-
cumstances, to perform different tasks and different roles.
228 DEAL WITH CULTURE


Accordingly, our approach focuses on managers performing new roles and
tasks, through participating in and owning NIE processes. Exhibit 11.1 lists many
of the roles to be played by various leadership teams in the steps of the Value
Chain. We assert that the experience of playing the roles changes that culture.
Peter Senge provides one way to think about culture, its influence, and what
needs to change. He uses the term “mental model” to describe how a manager
views the world: “Mental models are deeply held internal images of how the
world works, images that limit us to familiar ways of thinking and acting. Very
often, we are not consciously aware of our mental models or the effects they
have on our behavior.”6 In this view, moving managers to new ways of thinking
and acting requires changing the mental models managers have.
This is what our experience approach is about: changing the mental mod-
els, the culture, that managers have about business and IT.

Changing Culture through Experience
Traditional thinking about management culture emphasizes the role of senior
management in setting and changing it, through, for example, using world-class
performance targets, leadership changes, major reorganization, or changing
reward structures. While these techniques may be useful, they are not sufficient.
Management culture about IT is created, and exists, as an accumulation of the
observations and experience of individual managers. If their experience is not
changed, the culture will endure.
Our approach moves business managers from passive, reactive observers of
IT to active participants in managing and directing IT. Management culture is
a collection of experiences, and the Culture Management principles affirma-
tively change the experiences of managers. For example, when the business lead-
ership team participates in an enterprise-level prioritization process, the team
gets an enterprise view of business strategy, a view of what each of the com-
pany™s silos is doing and relative importance of that to the company. The cul-
ture changes as individual managers participate and engage in processes that
affect what they know and what they experience about IT and business.
Again, our approach to changing culture through management experience
has three basic elements:

1. Identify the mental models managers have about business and IT. This analy-
sis is based on the as-is assessment, and leads to understanding the culture
hurdles we face in making the Strategy-to-Results process changes and adapt-
ing NIE practices.
2. Establish to-be culture goals and through the Maturity Model (see Chapter
12) establish process targets; these goals and targets explicitly define the
new roles and experiences expected of managers.
3. Engage the appropriate managers and give them the experience of working
with NIE practices; this gives them hands-on experience with the values and
229
Part 4: Applying Culture Management Concepts


processes represented by the NIE goals and critical success factors. The
identities of appropriate managers are defined partly by their roles (see
Exhibit 11.1) and partly by the degree of support for this process from sen-
ior management (discussed further below).

The third point above is key. Our experience tells us that managers change
their attitudes and opinions only as a result of successful experience and learn-
ing based on experience. Rarely do managers change because they™re told to.
Even more rarely do managers change their attitudes based on logic and per-
suasion. Management culture grows out of experience, and changes in man-
agement culture are based on experience.

Summary of Part 4: Concepts of Culture Management
In an ideal world, the idea of addressing culture in three steps is very appeal-
ing. First, identify the as-is for culture. Then establish the to-be management
process target and assess the current management process status, thereby high-
lighting the requirements for culture change. Then provide a method for achiev-
ing culture change.
In reality, the process is much more circular and much less serial. Assess-
ing culture and process maturity, and changing managers™ experiences, are all
part of the same set of problems and issues. We know that culture is critical and
that it limits (or enables) what needs to be done. By shedding some light on it
through assessment, establishing targets for process maturity change, and chang-
ing management™s experiences, we get closer to our overall goal of increasing
IT™s impact.
We have emphasized throughout this book that culture inhibits these new
roles, as well as inhibiting the adoption of the new practices and processes. In
practical terms, how can we get managers to expend time and energy and to
commit to the results of the process when the culture doesn™t support their
doing so? The answer is that certain standard management roles are important
to beginning the process of culture change. The first role is senior management
support. This is where the importance of assessing the current culture and
assessing the process maturity level becomes so critical. These tools make it pos-
sible to communicate the problem, and the nature of the solution, to senior
management. Indeed, this is vital. Whereas making a rational argument for
change will not work (only experience will work), support does need to exist
for gaining the experience. Getting this support is important, and making the
case for the support and for adopting one or more NIE practices, is based on
the understanding and assessment that comes through assessment of culture and
process maturity. A second role is leadership, exercised by the management team
most directly concerned about the company™s success in Strategy-to-Bottom-
Line-Results. This leadership provides the energy to carry out the assessments
and process changes.
230 DEAL WITH CULTURE


DEAL WITH CULTURE: MANAGEMENT AGENDA

If No, What Is
Yes or Our Plan for
Management Question No? Correcting This?

Our management culture suppor ts business and IT planning
processes being fully connected and integrated.

Our management culture suppor ts IT-enabled innovations that
impact business planning and result in new business
strategies and better ways to implement existing strategies.

Business and IT managers can work together so that IT
investments are prioritized in relation to business strategy.

The entire IT spend, including development, operations,
maintenance, and services, aligns with business strategy.

Performance measurement is a par t of our culture, so IT
business and technical performance is tracked.

Business and IT management teams can work together to
consistently execute the management processes that improve
IT™s contribution to the business™s bottom-line performance.

Business managers can par ticipate in the planning and
management processes that focus on the entire IT investment,
both lights-on and projects.

IT and business managers par ticipate effectively in these
management processes.



ADDITIONAL READING
The book™s website contains additional information:
Website Note 3: IT, Bottom-Line Impact, and Government
Website Note 10: Stage Theory and Management Culture
Website Note 11: Right and Wrong in Management Culture
Website Note 12: Value and Values
The appendices also contain related information for Chapter 11:
Appendix B: Management Team Roles in Right Decisions/Right Results

NOTES
1. Taylor Cox, Jr., Cultural Diversity in Organizations: Theory, Research & Prac-
tice (San Francisco: Berrett-Koehler, 1993), p. 161.
231
Deal with Culture: Management Agenda


2. A company CFO once told us that a business manager complained that “the pri-
oritization process wasn™t working.” The CFO pressed the issue, and the busi-
ness manager reported that the projects “which we know are important” weren™t
scoring high on the business impact assessments. The CFO understood: priori-

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