Effects of Diversification on Culture LO25235

From: Gavin Ritz (garritz@xtra.co.nz)
Date: 08/29/00


Replying to LO25230 --

Hi Udy

The area of culture and values is one of my main interests and I have a
couple of very radical views on this issue that is a little diverse from
the main stream.( and totally diverse from systems thinking, I believe
that systems thinking practice is very confused by this issue-my
opinion-one just has to look at the 5th discipline field book a real mess
in this area)

First of all it is my experience that culture and values are derived from
human motives which are derived from a tension between our fears and
hopes, needs, ideals (pain- pleasure signal "algedonic signal).

These are innate in all humans and collective human organizations and
there is no way of managing (that I know of ) them, least of all setting
up some accountability structure. When all humans understand their deep
seated needs and fears we will have achieved something real great in this
world. Before we espouse value laden concepts or notions.

Most people have no idea what their algedonic signals are and besides that
we all project our values on to others of which they are unaware. They in
turn project theirs on to us. (their biases). So all in all a real sorry
state of affairs. Huge amounts of mental fluff, believe me I have seen
managers doing clean desk check ups.

In all the companies that I have done work, they are vaguely aware of whom
they want to work with and why? or even what their ideals are.

Every company value statement I have read actually disconnects half the
company. Besides these values some people are internally motivated so
they don't need external factors like rewards, recognition, praise,
harmonious surroundings, succession, power etc. Others are externally
motivated so they need all their libidinal supplies from the outside
world. (like praise, public praise, nice gifts, being shown as the best of
the best) remember Men in Black the movie at the initiation room.

Still others are motivated by their fears or fear of fear or pain and others are
motivated by their desires.
e.g. an engineer will design a building away from it falling down whilst a sales
person is motivated by moving towards their goals or sales targets and maybe
recognition.
a doctor takes away our dis-ease (pain) or tensional opposite of our harmony or
beauty needs.

All this can be measured and shared with people, however different roles
demand different values e.g. a sales rep thrives on recognition, and maybe
monetary rewards , another by making her customers happy (harmony needs).
Engineers thrive on problem solving i.e. perfection (harmony needs but an
away from movement). customers services too. That is why it is so
difficult to change a customers service person into a rep their motives
are like chalk and cheese. One is lucky to get the same person motivated
by both a sales and customer services role and in most instances we don't
want that.

e.g. a meat inspector must see differences in color have an away from
motive and probably safety and harmony needs (perfect clean safe meat)
with an internal frame of reference. (he knows when the meat is not to
standard he doesn't need outside motives for that.

And each role attracts those people with certain values ( what we attach
value to our motives). Outside professional memberships have a huge impact
(e.g.. accounting society values. Engineers union values, unions want to
reap before they sow. etc)

What your company needs to do is do a viability study to assess what type
of support your producing parts will need. (those departments that produce
the firm). i.e. credit control etc etc.

One can also not really get synergy out of control departments like
(finance, stock, purchases etc) but you can get synergy out of your
producing departments.

If you manufacture the parts then that is the producing part, if you sell
cars then the sales dep. that sells those cars are the producing
department. When you sell a car you provide special rates on parts for the
cars that you have sold etc. or whatever. (you get synergy out of the
producing departments)

Other problems that will crop up here is that the producing parts often go
into wild oscillations that need to be damped effectively by invariant
factors like time tables that are mutually agreed to.

However the biggest problem that you will have is schizophrenia in the
company because of roles across depts. and systems. Total role confusion
(most companies are totally blissfully unaware of this problem) and most
often this is where your biggest problem will lie and this is often
confused with values. Roles cross boundaries and systems and really
interfere with peoples motives. It is like being threatened. It's like me
turning up on your doorstep behaving like their father and wanting to take
your kids to school. (yes that ludicrous)

Or your central command and control function which tries to squeeze out
the producing parts (like finance, they love control). again a threat.

Good luck with your venture, I hope that I have highlighted some very key
elements in values. You will have plenty fun and games.

Kindest
gavin

Udy David-Adjah wrote:

> Dear Steve,
>
> Thanks for your contribution.
>
> The diversification I was referring to here is in terms of economic
> diversification. Where a company diversifies from one line of business to
> another. For example where they were selling car spare parts before they
> now decide to move on to selling whole cars, while still maintaining the
> spare parts business. This will entail new infrastructure, new personnel
> and maybe new management.
>
> The question now is, how will these changes affect the culture of the
> company? Will it affect their attitudes, values and the way they do
> things? If the diversification will affect these things, how? Positively
> or negatively. Another question arising from this is whether the effects
> on the culture can be controlled or managed. Whose responsibility will
> that be and for what purpose?

-- 

Gavin Ritz <garritz@xtra.co.nz>

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