What China can teach us about Organisational Change
Balancing Strategy and Culture to Drive Traction for Change

All changing organisations must balance its strategic priorities with the impact the change will have on its culture and people.

The ancient philosophies of China teach Yin and Yang as the holistic principle of opposing forces. Applied to organisational change this suggests you focus your energies by balancing strategy and culture, and that failing to do so may create two types of problems which limit results.

Problem 1: Your may drive strategic change without effecting relevant cultural change.

This can create resistance or unsustainable change programs when the leadership and behaviour is not congruent with the intended strategy implementation.

Problem 2: Or, your may drive culture change that lacks connection with your organisation's strategic vision.

This can lead to lack of clarity about priorities, or lowered performance as people are nurtured but not focussed on the desired organisational intent.

Yin and Yang defined

Yin and Yang formed a cornerstone of Chinese philosophy for centuries and this principle of opposites was considered a universal phenomena that applied to all things.

Strategic Yang

Yang describes the principles of maleness, action, control, and strategy. These are the evident and thrusting forces of growth. We can understand strategy as a Yang element, because of it’s driving and tangible nature to shape, focus and prioritise action.

Cultural Yin

Yin describes the principles of femaleness, reflection, yielding and culture. These are the hidden and nurturing forces of growth. Culture is a Yin principle due to its subtle, intangible qualities that influence indirectly the behaviours and perceptions of people as they carry out their work.

The Chinese believe that Yin & Yang work together in a constant cycle, that the seeds of one are contained in the other, and that one can only exert temporary dominance over the other. Thus, a balanced and holistic approach is the natural requirement for healthy change.

Let's look at two real world examples when change was not balanced and learn from these costly and painful experiences.

Strategically-driven change

What went wrong?

Many change programs begin with a strategic purpose but fail to achieve expected results.

For example, one large medical insurer were experiencing push back and waning enthusiasm as they rolled out a Performance Management & Balanced Scorecard implementation. These tools are classic examples of Yang elements, intended to support strategy execution and performance.

Due to a historically hierarchical culture, people feared that the new program was designed to control and monitor their work rates, without much upside for employees. Resistance to take up emerged and leaders were not equipped with the behaviours to position or use the tools in ways that fostered collective benefit. The program was eventually shelved after many attempts to re-design the strategic tools themselves as leaders did not see, understand or act on the potential need for a cultural dimension to the change.

A more balanced approach

In adopting strategically driven change, people need to understand the reasons for the change and what's in it for them. Whilst consultation in change is a common stage of the program, subtle differences in approach become important.

For example, the methods and forums used to plan and forumlate strategy can be innovative and engaging so that new levels of collaboration and ownership are engendered as strategic change begins. If decisions on strategy and outcomes are already made, efforts to consult and get buy-in are incongruent and resistance occurs.

Furthermore, the behaviour of leaders as facilitators and coaches is critical. When and how they ask for input, their openness to feedback and their attitudes and actions in their role as change agents can not be under estimated. Yet rarely are leaders provided coaching in change management about subtle distinctions that can help them succeed.

Traction for strategic change is accelerated when people and cultural considerations are integrated into the planning.

Culturally driven change

What went wrong?

Some change programs are instigated with the best intentions but are not clearly linked to a Strategic vision.

One of Australia’s leading financial institutions implemented an extensive leadership development program which was attended by hundreds of senior managers from the top 5 levels at a cost of millions of dollars. Whilst the program was initially lauded, enthusiasm began to wane as people began asking;

"How does this program fit with the strategic direction?" and "Where are the links between the leadership behaviours espoused and the priorities of the business?"

The program was cancelled when the perception emerged of mis-alignment between cultural and strategic intent.

A more balanced approach

With more holistic design, the change program could have reinforced key strategic priorities and provided more balanced content.

For example, workshops and forums can be designed to ensure that desired values and behaviour are discussed and applied to current business issues, rather than generic scenarios. Communications and messaging surrounding the leadership program can be more strongly linked to organisational performance. Quick wins and tangible results can be used to help put the culture change into context.

Tools introduced during leadership and cultural development can be reinforced by senior leaders showing how they can drive business performance.

Traction for culture change is sustained when there is a context of relevant business strategy around it.

How Yin and Yang can help

The Yin and Yang metaphor can prompt you to think about balancing your Strategy and Culture change efforts.

To gain more awareness about the balance of your change program, answer the following questions;

1. What is the primary reason for your change? Is it fundamentally a Strategic or Cultural change?
2. Do you have a written plan that addresses the strategic elements of change AND the cultural considerations?
3. Are your leaders equipped to coach and facilitate with a balance of Strategic and Cultural awareness, skills and tools?
4. If your change program does not have traction, are there gaps or imbalances in your approach?

More Questions?

FAST Meetings Co. support sustainable action and long term results with experience in balancing the Strategy (Task) and Culture (People) dimensions of change programs.