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ORGANIZ ATIONAL CULTURE WHY SHOULD I CARE?

TEXAS POLICE CHIEF LEADERSHIP SERIES L A R RY B O Y D

ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? • Learning Objectives – Understand what we mean by the term “organizational culture.” • Know the components of organizational culture. • How organizational culture is formed/shaped/developed. • Are there components unique to “police” organizational culture? – Why is organizational culture important?

• What are the benefits of a “positive” culture? • What are the pitfalls of a “negative” culture? • Why should a police leader care about organizational culture?

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ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? • Learning Objectives (cont.) – How to Create a Culture of Engagement • Engagement vs. Motivation – What is the difference? • Understand the impact and potential of an engaged workforce. • How does organizational culture impact/influence engagement? • Know the feedback mechanisms that enhance employee engagement.

– Understand the major factors that influence retention? • Know the retention factors most influenced by organizational culture.

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ORGANIZATIONAL CULTURE: WHY SHOULD I CARE? • Learning Objectives (cont.) – Understand the leader’s role in shaping Culture—What Can Leaders Do? • Discuss why it always starts with personal accountability • Tips for leaders modeling positive culture • Discuss some “take-away” concepts and a personal plan of action for each participant

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ORGANIZATIONAL CULTURE: WHY SHOULD I CARE?

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WHAT IS ORGANIZATIONAL CULTURE? • Concept of Organizational Culture not introduced in the field of Management Studies until the late 1970s – Prior Management studies focused on individual behavior • B.F. Skinner – Operant Conditioning • Frederick Taylor – Scientific Management • Hawthorne Studies – Hawthorne Effect • Abraham Maslow – Hierarchy of Needs • Etc.

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WHAT IS ORGANIZATIONAL CULTURE? • Andrew Pettigrew – “On Studying Organizational Cultures” Administrative Science Quarterly 1979 • Defines Organizational Culture as an amalgam of: – Beliefs – Identity – Ritual – Myth 7

WHAT IS ORGANIZATIONAL CULTURE? • Psychology and Society – Defines Organizational Culture as: • Organizational Values – What we feel is important • Organizational Beliefs – Acceptance of what is true • Organizational Norms – Typical acceptable behaviors and actions

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WHAT IS ORGANIZATIONAL CULTURE? • “The Power of Habit: Why We Do What We Do in Life and Business” – Charles Duhigg (2012) • Culture grows out of “Keystone” habits – Right habits create positive results – Wrong habits create disasters • There are no organizations without institutional habits (culture) – Just places where they are deliberately managed or places where they are created without forethought 9

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WHAT IS ORGANIZATIONAL CULTURE? “What is Organizational Culture and Why Should I Care?” Harvard Business Review – May 2013

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WHAT IS ORGANIZATIONAL CULTURE? • “Culture is how we do things.” – “We are what we repeatedly do” –Aristotle – This view elevates repeated behavior or habits as the core of culture

HBR – May 2013 11

WHAT IS ORGANIZATIONAL CULTURE? • Culture is a product of compensation (incentives) –The best predictor of what people do is what they are incentivized to do. • What are incentives? – Monetary – Advancement – Status – Recognition – Sanctions HBR – May 2013

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WHAT IS ORGANIZATIONAL CULTURE? • Organizational Culture is a jointly-shared description from within – Culture is a product of “sense-making” – Jointly-held beliefs and interpretations about “what is” – Process to help orient members to “reality”

HBR – May 2013 13

WHAT IS ORGANIZATIONAL CULTURE? • The sum of values and rituals which serve to unite – Culture is the carrier of meaning – Culture is about the “story” and the value and rituals that reinforce that narrative

HBR – May 2013 14

WHAT IS ORGANIZATIONAL CULTURE? • Organizational Culture is “civilization” in the workplace – Culture is the social control system – Reinforces “right” thinking – Sanctions “wrong” thinking – The idea of behavioral norms that must be upheld HBR – May 2013 15

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WHAT IS ORGANIZATIONAL CULTURE? • Culture is the Organizations “Immune” system – Prevents viruses (wrong-thinking) – Disposes bacteria (wrong people) – Problem—Immune systems can attack agents of needed change

HBR – May 2013 16

WHAT IS ORGANIZATIONAL CULTURE? • Organizational Culture is an over-simplification – What about sub-cultures • Organizational culture is not monolithic • Many factors drive internal variations

HBR – May 2013 17

POLICE CULTURE • Is there such thing as “Police Culture” – What might be considered positive aspects of police culture – What might be considered negative aspects of police culture

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POLICE CULTURE

Huffington Post – June 2013 Radley Balko “What Cop T-Shirts Tell Us About Police Culture”

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POLICE CULTURE Shirt for SRO Association Fundraiser

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POLICE CULTURE • Shirt sold by Denver Police Union prior to 2008 DNC

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POLICE CULTURE • Sold by a Police Chief

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POLICE CULTURE • Remember –Studies show that the leaders view of the organizational culture and the line employees view of organizational culture are always different.

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EXERCISE • On a 3x5 card write: – What you believe describes the current culture in your organization – How you believe average employee would describe the culture – How you would like them to describe the culture

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THREE CASE STUDIES

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WELLS FARGO • Culture Statement excerpts – Culture is the most important part of a company’s success – We define “culture” as understanding our vision and values so well that you instinctively know what you need to do when you come to work each day. – Every time we serve a customer, we should ask ourselves, “If I were the customer in this situation, how would this experience feel for me?” – We never put size ahead of culture. We get bigger by getting better — we don’t get better by getting bigger.

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WELLS FARGO • Facts of Case – From approx. 2010 through 2015 Wells Fargo employees engaged in one of the largest fraud scandals to ever hit the banking industry – Bank employees opened as many as two million fraudulent accounts – Over 5300 employees fired for illegal behavior – Company investigated by SEC, DOJ – CEO Jonathan Stumpf testified (grilled) before House and Senate Banking Committees – Fined $185M by Consumer Financial Protection Bureau • Citing “serious flaws with toxic internal culture.” 29

WELLS FARGO • How Could This Happen?

– Mid 2000s Senior Management initiated an aggressive “cross-selling” program with impossible goals – As early as 2005 employees complained of unrealistic quotas and a “soulcrushing culture of fear – Employees who complained were demoted, transferred or terminated • One employee sent an email directly to Stumpf—He was fired – To meet goals, some employees opened fraudulent secondary accounts on new customers without their knowledge (about 2 million accounts) – During his Senate testimony Stumpf said he doesn’t care about process, he cares about outcomes 30

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WELLS FARGO • Case Discussion – What was the “stated” culture at Wells Fargo? – What was the actual culture? • Outcomes/results of the actual culture

– What are the factors that created the difference? • Role of the CEO

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CASE STUDY #2

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UNITED AIRLINES • Facts of case: – United Airlines flight docked at Chicago bound for Louisville was overbooked • Actually they needed to make room for UA employees

– After attempts to find a volunteer passenger in video was randomly selected – For three days CEO Oscar Munoz blamed the passenger and defended the incident saying established protocol was followed – United Airlines consistently ranks at the top of customer complaints for passenger “bumping”

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UNITED AIRLINES • How Could This Happen? – Rules-based culture with little discretion to handle “glitches” • Everything scripted – CEO Oscar Munoz new to position and partly brought in to help heal tense relationship between management and employees • CEO failed to view incident from customer perspective • Reinforced strict adherence to rules regardless of consequences for customer

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UNITED AIRLINES • Case Discussion – What are the advantages of a “rules-based” approach? – What kind of organizational culture does this approach facilitate? – What is the role of the CEO in this kind of organization? – What are the disadvantages of a “rules-based” approach? – What are the implications for the organization’s culture?

• Is there a more effective alternative to a “rules-based” approach? – What are the advantages and disadvantages of this approach? – What kind of organizational culture would this approach facilitate? – What would the role of the CEO be in this type of organizational culture? 36

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CASE STUDY #3

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JAMES BLAKE INCIDENT • Facts of Case – The man standing at the entrance to the hotel is James Blake, retired professional tennis player and current chairman of the United States Tennis Association Foundation – He arrived in New York earlier that day on a “red-eye” flight and is waiting on a limo to take him to a U.S. Open Sponsor event – The person who runs into the screen and takes Blake to the ground is NYPD Officer working undercover – An informant had given a description of someone resembling Blake who was involved in transporting stolen cell phones

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JAMES BLAKE INCIDENT • Facts of case (cont.) – Blake was taken down, handcuffed and held for 12 minutes – At least six officers arrived on-scene to aid in the investigation – Ultimately, they discovered they had the wrong person and released Blake without explanation – At the U.S. Open event, Blake spoke with reporters and his account spread – NYPD released a statement admitting to an encounter, but stated Blake was not mishandled or handcuffed—Officers initially had not completed any report about the event – Then came the video! 41

JAMES BLAKE INCIDENT • Case Discussion – If you could interview the officers involved in this incident, do you believe they would tell you their police department promotes a culture of integrity and telling the truth? • What do you think happened in this case? – How did organizational culture support what happened?

• What are the lessons? – How could this culture change to respond to future cases like this one?

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C R E AT I N G A C U LT U R E O F E M P LO Y E E ENGAGEMENT

CREATING A CULTURE OF EMPLOYEE ENGAGEMENT

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT “There are three kinds of people: those who make things happen, those who watch things happen, and those who ask, ‘What happened?” --Casey Stengel

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • Employee Engagement vs Employee Motivation – What’s the difference? – Motivation • Strongly influenced by external factors, especially an expectation that certain efforts will yield valued rewards – Compensation – Status – Recognition

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • Engagement – An intrinsic deep-rooted sense of commitment, pride and loyalty that is not easily altered – A high level of engagement buffers the negative impact of environmental factors on motivation • Conversation with Arlington City Manager

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • How to Recognize an Engaged Employee – Brings new ideas to work – Passionate and enthusiastic about work – Takes initiative – Seeks to improve self, others, and business – Consistently exceeds goals and expectations – Optimistic and positive; smiles – Overcomes obstacles and stays focused – Committed to the organization

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • According to research and engaged workforce results in: – Increased productivity – Higher quality of work – Lower turnover – Reduced absenteeism – Higher rates of customer satisfaction – Higher employee satisfaction

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SHORT DETOUR TO DISCUSS TURNOVER • Top Factors that Impact – They’re motivated by higher pay – They are not engaged – Lack of opportunity – Disrespectful and toxic work environment

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • Factors that disengage

– Seeing managers who aren’t engaged

– Not being respected

– Lack of support from manager

– Unrealistic expectations

– Criticism that isn’t constructive

– Never seeking input

– Work that doesn’t add value

– Lack of coaching and feedback

– Burdensome process

– Constantly being underappreciated

– No sharing of vision and direction

– Supervisors belittling employees – Lack of basic pleasantries

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CREATING A CULTURE OF EMPLOYEE ENGAGEMENT • RESPECT Model – Recognition – Empowerment – Supportive Feedback – Partnering – Expectations – Consideration – Trust

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ORGANIZ ATIONAL CULTURE BRINGING IT HOME

ORGANIZATIONAL CULTURE: BRINING IT HOME • Where should leaders start? • Leaders always start with themselves!

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ORGANIZATIONAL CULTURE: BRINGING IT HOME • Learn to ask the right questions—avoid victim thinking – How can I do my job better today? – What can I do to improve the situation? – How can I support others?

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ORGANIZATIONAL CULTURE: BRINGING IT HOME • Parting Wisdom – Culture Trumps Everything • You are the Chief Culture Officer • Every day presents an opportunity to enhance the culture

– People want to see you and hear from you • Make opportunities to communicate both formally and informally • People want to know your vision for the organization and how they fit in

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ORGANIZATIONAL CULTURE: BRINGING IT HOME • Wisdom (Cont) – We exist for the community • Be the gentle reminder

– Be connected with the community • Be front and center, but don’t be the only one out there

– People watch everything you do • Each day is an opportunity to set a positive example

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ORGANIZATIONAL CULTURE: BRINGING IT HOME • Wisdom (Cont.) – Don’t compromise on the big stuff • Loyalty to the community • Loyalty to the employees • Cultivating an ethical department • Responsible use of authority • Commitment to diversity 58

ORGANIZATIONAL CULTURE: BRINGING IT HOME • Wisdom (Cont.) – Commitment to Organizational Growth • There is no growth without change

– Cultivate collaborative engagement at all levels of the organization • It creates ownership-based decisions

– Look first to your own growth and change • The only person you can really change is you—everyone else your hoping to influence in a positive way

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ORGANIZATIONAL CULTURE: BRINGING IT HOME • Now its your turn! – Take the 3x5 cards and write at least two ideas that you plan to take back with you to implement with your organization

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Larry Boyd Strategic Government Resources [email protected] Ph# 469-261-5113

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