Friday, October 4, 2024

Organizational Values, Culture, Behaviour

 Organizational Values, Culture, and Behaviour

Ajit Chaudhuri – October 2024

 


Culture eats strategy for breakfast” – Peter Drucker

 


I taught strategy earlier this year to a bunch of non-typical management students (i.e., mostly non-engineers, mostly ladies, and mostly prioritizing making the world a better place over becoming masters of the universe). It was interesting for many reasons, including that I had to make a case for quantitative over qualitative methods for project monitoring from first principles (an male-engineer-dominant group would consider this a given) and revert to my PhD reading material on research methods to do so; I was exposed to terms such as ‘girl math’ (see box); and I was subjected to an array of insights that had me questioning my assumptions.


 

Girl Math

Boy Math (the feminist backlash to )

·       It costs under Rs. 500? It’s free.

·       Will not spend Rs. 5,000 on Amazon but will spend Rs. 1,000 five times.

·       Have only three pairs of socks to my name but am afraid of gold diggers.

·       Want a traditional woman who pays the bills

 


One such insight, during a discussion on the soft components of strategy, was on whether an organization should publicly state its values. The counter arguments made were that most stated values are the same everywhere (integrity, excellence, blah, blah, blah, usually articulated as abstract absolute positives); most are unconnected with the organization’s actual values; and actual values are what they are, whether you state them or not. Unless stated values reflect actual values and influence the organization’s culture and the behaviour of employees towards each other and towards external stakeholders, they are just some nice words on a website, much like a Tinder profile.

 


So, should organizational values be articulated? If they are, should they be stated publicly? And how can they influence organizational culture and behaviour?

 


My thinking on these matters is influenced by long stints in two organizations.

 


The first is IRMA, where I spent 2 years (1987-89) working towards a master’s in rural management and then 3 years (2011-14) before flunking out of its doctoral programme. The first of these was interesting because the institution had no stated values but very strong actual ones – and it had most students on board with them from the time we spent 10 weeks in remote corners of rural India (a description of my own stint in north Bihar is available at https://kaaluontheroad.blogspot.com/2007/03/another-world-bihar.html) . The second was interesting because the world had changed – the private sector was much more influential; Dr. Kurien was not at the helm anymore; and IRMA was struggling to distinguish itself from the smorgasbord of management institutes that had sprung up – and it had a website-full of carefully articulated vision, mission, values, etc., statements to communicate what it stood for.

 


The second was in the Tata group (I was there from 2014 to 2023), where the actual values derived from a statement by the group’s founder that ‘the community is not just another stakeholder in business, but is in fact the very purpose of its existence’ (and I know this because I led the group’s disaster response function, where a value system is stress-tested to the extreme) and were different from its stated ones, which were the same old boring corpcomm-concocted stuff cleverly acronym-ed to I-PURE (you can guess what this stands for and I am sure you will be right).

 


So, in my opinion, values are important for many reasons including that, if there is a mismatch between those of the organization and its stakeholders, it is a source of stress and tension (as many Tata employees who leave for competitors discover).

 


An organization should articulate its values only if they are worthy ones, its senior leadership observes and is seen to observe them, and it wishes its employees to use them as a guiding light; and it should publicly state them only if they bear resemblance to its actual ones or it is willing to do what it takes to change actual values to stated ones (which is quite a task, as those dealing with diametrically opposite value systems from, for example, the Tata group’s takeover of Air India, will know).

 


Else, it would be stupid to trumpet values all over the place. Claims of being ‘dedicated’, ‘motivated’, and ‘committed’, acceptable for a young NGO working for the poorest of the poor, would be less so when the same organization transforms into a family business that uses public money for the greater glory of its founder; and you can well imagine my reaction upon discovering that Indian Oil Corporation, who turn a blind eye to its now ex-customers (including me) being scammed at its outlets, includes ‘trust’ among its stated values. Hah!!

 


It is the third question, relating to the relationship between values, culture, and behaviour, that is a little nuanced. Conventional thinking is that values underpin culture, which in turn informs behaviour, and that senior leaders walking the talk and being seen to do so are critical enablers to desirable outcomes on these fronts in an organization.

 


A recent article (“Build a Corporate Culture That Works”, Erin Meyer, HBR of Jul-Aug 2024) claims that managing corporate culture is key to business success, and yet few organizations articulate their culture in a way that it guides employee behaviour. I am not sure I completely agree – I remember a talk on integrity by Dr. Kurien in which he said that honesty was like virginity (or was it pregnancy?), you either are or your aren’t; if you weren’t you did not have a future working with him; and that honesty could not be used as an excuse for poor performance, you had to get your work done AND not pay bribes – as clear an articulation of values, culture and desired behaviour as it gets.

 


The article suggests six guidelines to confront the challenges of culture-building, and I encapsulate five of these (the ones that made sense to me) in tabular form below.


Guideline

Description

#1: Build culture based on real world dilemmas.

·       It is a mistake to focus upon abstract absolute positives (such as integrity, respect, trust, etc.) – they make a statement but are unlikely to drive day-to-day decision-making.

·       Desired culture can come alive using debate and dilemmas –

o   Identify tough dilemmas that employees routinely face and debate how they can be resolved.

o   When employees face situations with multiple possible responses, they can make a choice based on personal preferences or be guided by organization culture.

o   Create value statements that will guide employee responses.

o   Encourage vigorous debate of the responses.

#2: Move culture from abstraction to action.

If building culture from scratch, debate it using dilemmas from the beginning. If there is a stated culture with abstract principles, dilemma-test them to determine whether they are actionable and usable in real decision-making situations. And use words carefully.

 

·       Amazon – ‘Have backbone. Disagree and commit.’

·       Airbnb – ‘Make space for introverts’

#3: Paint your culture in full colour.

Once a clear set of values are identified and dilemma-tested, articulate the desired culture using colourful images to get the values to stick.

 

·       Amazon’s 2-pizza rule – ‘a team should not be made up of more people than two pizzas can feed’ – not ‘we value small teams’.

·       Airbnb – ‘elephants, dead fish, and vomit’ – leaders should transparently address unpleasant stuff that all are aware of but no one dares mention.

#4: Hire the right people, and they will build the culture.

·       ‘Garbage in, garbage out’ – if you hire people whose personalities don’t align with desired culture, you will not get desired behaviour.

o   Patagonia – ‘we’ll take a risk on an itinerant rock climber over a run-of-the-mill MBA’.

·       Look at who you will fire. Should a company have a family ethos? Or should it be like an Olympic team?

o   ‘Shopify is not a family. You are born into a family, they can’t un-family you. The danger of family thinking is that it becomes hard to let poor performers go. Shopify is a team’ – CEO, Shopify.

·       Deal with skilled, brilliant, effective but unsuitable employees?

o   Netflix – ‘no brilliant jerks, the cost to teamwork is just too high.’

o   Shopify – ‘slack trolling, victimhood, us-vs-them divisiveness, and zero-sum thinking must be seen for the threat they are.’

#5: Don’t be a purist.

Culture should be a north star, not a strait jacket. Identify dilemmas where stated values do not apply; define which situations are over the limit. For e.g., with respect to transparency, should everyone know everyone else’s salary?

 

Tuesday, October 1, 2024

Retirement Report Card

 Retirement Report Card

Ajit Chaudhuri – September 2023 to September 2024

 


“Someone, give this man a job. I will not have him hanging around the house all day,” rumoured to have been said by Michelle Obama

 



I retired in 2023 and am often asked what I have done since. I usually respond with ‘nothing’, and this invariably elicits exasperation along the lines of ‘how can you do nothing?’, ‘you have a duty to work/earn for as long as you can’ or ‘you are wasting the wealth of skills and experience that you have accumulated’ (ahem). So, for the benefit of the curious, the appended table is a list of what I have done since retirement.

 


A quick analysis reveals 3 cross-country road trips (and some shorter ones), an unsuccessful first attempt to climb a mountain, four foreign trips (including one trek), and several teaching assignments interspersed with some writing.

 


My plans for the near future include –


·      Start a third novel (I’ve done the research and have the necessary masala, I think).

·      Do the Miao – Vijaynagar – Mugafi trek in Arunachal Pradesh.

·      Try and rediscover my love for cricket by watching Ranji Trophy games in stadiums.

·      Avoid all travel (other than the above, and maybe a visit to Dehradun).

·      Sort out the trilemma of using my remaining years of good health and relevance to earn something; doing things that I would like to do; and fading away with dignity.

 


Some things I have learnt about myself are –


·      I am getting old. I tire easily; I forget things (especially the location of my phone and specs); I find intelligence in women attractive; Aunties refer to me as ‘Uncleji’.

·      I am an agoraphobic sociophobe. Hell, for me, is other people (to quote JP Sartre).

·      I am also a bore. People politely wait for me to have my say before getting on with it.


 

 

 

Activities Undertaken – September 2023 to September 2024

No.

Type of Activity

Purpose

Comments

I.1

Road Trip – Jamshedpur to Delhi

 

(19 to 24 September 2023)


To return to Delhi along with my car and personal belongings

·       Done with Rinky (my wife)

·       6 days: JSR – Lohardaga – Netarhaat – Gaya (2 nights at the OTA with Aruna and Gen. Minhas) – Badlapur (somewhere in UP, between Varanasi and Lucknow) – Delhi

I.2

Road Trip – Delhi to Dehradun to Delhi

 

(1 to 6 October 2023)


To open Rinky’s house in Dhulkot and get it into working order

·       Done with Rinky

·       Planned for two days travel and one day there, ended up spending four days there, loved it.

·       Wouldn’t mind going there again, for a longer time.

I.3

Road Trip – Delhi to Jaipur to Delhi

 

(30 November to 2 December 2023)


To meet my friends Shivani and Kushy

·       Done solo – my first experience of the new Delhi-Mumbai Expressway

·       Great to see Shivani and Kushy again. Met Viveka Kumari (an old friend of my sister Nomita and mine) again, after many years

I.4

Road Trip – Delhi to Kutch to Jaisalmer to Delhi

 

(23 January to 12 February 2024)

To Kharoi for time in a fat farm

 

To Jaisalmer for the Maru Manthan festival

·       Done solo.

·       Spent 13 days (25 Jan to 7 Feb) in Anand Dham (a nature cure centre in Kharoi, Kutch) to detox and lose weight. Have not used pain killer for my knees ever since. And loved it – will go again.

·       Spent two days at the Maru Manthan festival – spoke on women’s issues and nomadic pastoral practices, and on women’s groups in Jharkhand.

·       Done in three stretches; Delhi – Kishangadh – Deesa – Kharoi; Kharoi – Barmer – Jaisalmer; Jaisalmer – Jhunjhunu (via Bikaner) – Delhi


I.5

Road Trip – Delhi to western Rajasthan to Mumbai to Kutch and back to Delhi

 

(2nd to 28thSeptember 2024)

To research my next novel on the NGO world

 

To meet my Ma-in-law in Thane and Dad in Mumbai

 

To attend a Setu Abhiyan board meeting in Bhuj (Kutch)

·       Done solo.

·       Spent time in two NGOs – SWRC Tilonia and Urmul Seemant Bajju.

·       Done in five phases: Delhi – Tilonia (3 nights) – Nagaur (via Kotdi) – Bajju (4 nights); Bajju – Raniwara – Bharuch – Thane; Thane – Mumbai – Thane; Thane – Kutch; Kutch – Delhi

·       2 nights at Ma’s in Thane on the way in, 3 nights on the way out, Rinky was with me for the latter.

·       2 nights in Mumbai at Sea Green Hotel on Marine Drive – lovely hotel, lovely to be in the city again.

·       6 nights in Kutch

·       First experience of the ‘heaven’ road across the rann, Khavda to Dholavira – fantastic


 

 

 

·        

II.1

Foreign Trip – Hong Kong

 

(3 to 13 November 2023)

To meet the children

·       My first visit to Hong Kong – done with Rinky.

·       Spent time in Repulse Bay and Shek o beaches.

·       Ate too much, drank too much, walked a lot.

·       Met Jia, Reuben’s significant other, for the first time.

·       Loved it


II.2

Foreign Trip – Hong Kong

 

(11 to 18 December 2023)

To attend the ceremony for Rustam’s admittance into the Hong Kong Bar

·       Done with Rinky and my Dad

·       Really impressive ceremony at the HK High Court, presided over by Justice Johnny Chan – Rustam’s former pupil master Martin Richmond was a star speaker for Rustam, and it was also attended by his current pupil master Nicholas Pirie


II.3

Foreign Trip plus Trek – Nepal

 

(25th May to 9thJune 2024)


To do the Annapurna Circuit Trek

·       My fourth trek with Boots and Crampons

·       A ladies’ majority trekking group (a first for me)

·       My notes on the trek are at https://kaaluontheroad.blogspot.com/2024/06/circling-mt-annapurna.html .

II.4

Foreign Trip – Malaysia

 

(13th to 18th August 2024)

To celebrate Somnath Sen’s 60th birthday

·       Done with Rinky

·       We were on Penang Island right through – two nights at the main city George Town (13th and 14th nights) and 15th to 17th nights at a resort in Batu Ferringhi. Both experiences were excellent.

·       My first time in Malaysia, my first time on Singapore Airlines, loved both.

·       We were a group of 24 people, all relatives and friends of Somnath Sen.

·       My own 61st birthday was celebrated with the same group at a party on Batu Ferringhi in Penang.


 

 

 

·        

III.1

Climbing Expedition – Mount Friendship

 

(13 to 25 October 2023)





To climb Mt. Friendship, in the Pir Panjal range a little beyond Manali

·       My first climbing expedition, done with Boots and Crampons (third expedition with them, after Gurez valley (Patalwan Lake) and Everest Base Camp.

·       This is a 5,287 m peak outside Manali, considered one of the lowest that requires mountaineering (rather than trekking) skills.

·       My notes on the expedition are at https://kaaluontheroad.blogspot.com/2024/01/on-friendship.html

IV.1

Teaching – IIM Ranchi

 

(27 December 2023)


To teach students at IIM Ranchi

I forget what this was about, but it was part of a Tata Steel Foundation commitment.

IV.2

Teaching – IIM Raipur

 

(12 to 15 January 2024)

To teach part of the course ‘Management for Social Impact’ to the PGP students at IIM Raipur

·       This was a Tata Steel Foundation commitment.

·       Took two sessions of the course – Decoding Business Models for Societal Responsibility, and Communities as Rights Holders for Business

·       Found it tiring to take each session three times.

·       Saw a play after many years – Juhi Raj Babbar was performing ‘With Love, Aap Ki Saiyaara’. Brilliant!


IV.3

Teaching – ISDM

 

(26 Feb to 27 Mar 2024)


To teach strategy to ISDM’s students

This was at the Indian School of Development Management (ISDM); 10 2-hour sessions in Feb and March; done with my old boss Shankar Venkateswaran.

IV.4

Teaching – ISDM

 

(24 to 28 June 2024)


To teach scaling to ISDM’s students

This was as a follow-up to Prof. Madhukar Shukla’s sessions on scaling with the students; 4 full days hanging around with the same group I had taught strategy. It was a pleasure to be back with them.

IV.5

Teaching – IIM Jammu

 

(15 to 16 July 2024)

To teach part of a management development programme for JKAS officers

·       I took sessions on Planning for Model Development and Outputs to Outcomes: Measuring for Change

·       The participants were mostly sarpanches and DDOs, and their knowledge was impressive.

·       I think they appreciated my own knowledge of Kashmir and the use of examples from there.

·       Met my old friend Ateeque, now a Prof there.


IV.6

Teaching – XLRI

 

(24 August 2024)

To teach part of the certificate programme on CSR leadership offered by XLRI and Tata Steel Foundation


·       Took two sessions on Building Institutions for Lasting Social Impact – it was interesting to have to get back to the subject of New Institutional Economics to prepare.

·       This was done on-line – never again.

 

 

 

 

V.1

Writing

To write fiction

Completed four novelettes, compiled them into a collection called ‘An Exploration of Unintended Consequences’ (still trying to find a publisher for this) –

·       Thick and Thin

·       What Happens in Gurez

·       Second Time for Mr. Nice

·       My Modern Family