School of Engineering and the Built
Environment
WEEK 3:
PROMOTING A CLIENT/CUSTOMER
CULTURE WITHIN ORGANISATION’S
SUPPORTIVE MATERIAL
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
Introduction
For any organisation to survive they need customers. Customers who buy-in for a long term
relationships and will eventually transform into repeat business customers. To create such
an environment requires dedicated commitment from all its employers, and employees to
ensure a positive customer/client culture is promoted across the organisation.
Week 3 examines some of the key principles why organisations look to create a customer/
client organisational culture, and discusses some of the key components, and assets that
may influence the success or failure of any cultural changes. The use of the referral to both
customer and client is to aid understanding to all participants in this unit, however it should
be recognised that both clients and customer’s share similarities in their needs and wants
Client - Those who buy services
Customers – Those who buy consumer products
Organisational Development
Organisational development looks to map the long term direction for most organisations.
Supported by top management and strong leadership the generic aim will look to improve an
organisations vision, empowerment, learning and problem – solving processes through an
on-going collaborative management of the organisation’s culture. Enriched within these
processes will be the proposal to improve customer/ client relationships, and improve the
overall performance and effectiveness of your organisation.
“Essentially, it is an implied behavioural science approach to planned change and
development of an organisation” Munford (1986p329).
An organisation is made up of many components; however the main asset for any company
must be its employees. Although accountable for many internal and external stakeholders,
people are the main driver behind making organisational development and organisational
change succeed. Therefore it is clear to see that employees must be motivated to make
things happen. This may be further extended to include employee attitude and moral all of
which maintains their level of performance.
You tube links: As part of your review of supplied literature, you are expected to watch the
following electronic links. The material is provided to enhance your learning experience.
You tube link 1 – Three Building Blocks of Organisational Culture
http://www.youtube.com/watch?v=7PoOZmqWGUU&feature=related
You tube link 2 – Building Five Cultures In One Organisation
http://www.youtube.com/watch?v=NB0Wtydbv9s&feature=channel
You tube link 3 – Culture Archetypes People First Culture
http://www.youtube.com/watch?v=fUcJ26s-9rk&feature=channel
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
“Management and organisational development interventions make no direct physical impact
organisations as such; they create no product; yet they change things. What they change is
managers’ minds…. And in changing managers’ minds such interventions thereby change
those constructs which comprise organisations, markets, careers, and so on. In other words
as managers minds so do their organisations” Patching (1999p27).
Therefore to contextualise organisational development, we must further identify the
components that improve organisational performance.
Figure 1: Major topics associated with organisation development
Mullins (2002:p800)
Further detailed examination will be evaluated in other 5 credit units but for the purpose of
this unit we will focus on organisational culture and organisational climate. No two
organisations are the same and each organisation has its own approach to client/ customer
care. The majority of organisations will of course boast the validity of any existing systems
however in reality using a knowledge management system to share feedback from recent
client engagements may well identify deficiencies in current systems and provide further
ways of improving current systems. Therefore the starting point for any evaluation is to
reflect on your own organisation
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
There are various definitions of what organisational culture might be. A popular and simple
way of defining culture is: How thing are done around here Mullins (2002: 802).
Atkinson refers organisational culture to “what is acceptable and not acceptable” “and what
behaviour and actions are encouraged and discouraged” Atkinson (1990p6-10), where as
McLean et al (1993) defines organisational culture as “the collection of traditions, values,
policies, beliefs and attitudes that constitute a pervasive context for everything we do and
think in an organisation.” However again returning back to employees Oswick et al
(1996p106-20) states “the culture of an organisation is likened to the personality of an
individual”
Clearly all definitions make reference to values, actions and beliefs, and all rely on a strong
believe in a client/customer culture. Additionally to succeed these beliefs must be held by all
levels of the organisation.
Mullins(2002) reviews Handy’s(1993) development on Harrison’s (1972) ideas and identifies
four main types of organisational cultures:
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Power Culture
Role Culture
Task Culture
Person Culture
Power culture – Depends on a central power source with rays of influence from a central
figure throughout the organisation. A power culture is frequently found in small
entrepreneurial organisations and relies on trust, empathy and personal communications for
its effectiveness. Control is exercised from the centre by the selection of key individuals.
There are few rules and procedures, and little bureaucracy. It is a political organisation with
decisions taken largely on the balance of influence.
Role culture – Is often stereotyped as a bureaucracy and works by logic and rationality.
Role culture rests on the strength of strong operational ‘pillars’ – the function of specialists in
for example, finance, purchasing, and production. The work of, and interaction between, the
pillars is controlled by procedures and rules, and co-ordinated by the pediment of a small
band of senior managers. Role and job description is often more important than the
individual and position power is the main source of power.
Task Culture – Is job oriented or project-oriented in terms of structure, the task culture can
be likened to a net, some strands of which are stronger than others, and with much of the
power and influence at the interstices. An example is the matrix organisation. Task culture
seeks to bring together the right resources and people, and utilises the unifying power of the
group. Influence is widely spread and based more on expert power than on position or
personal power.
Person Culture – Is where the individual is the central focus and any structure exists to
serve the individuals within it. When a group of people decide that it is in their own interests
to bond together to do their own theory and share office space, equipment or clerical
assistance then the resulting organisation would have a person culture. Examples are
groups of Barristers, Architects, Doctors or Consultants. Although it is found in only a few
organisations many individuals have a preference for person culture, for example University
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
professors and specialists. Management hierarchies and control mechanisms are possible
only by mutual consent. Individuals have almost complete autonomy and any influence over
them is likely to be on the basis of personal power.
Deal and Kennedy (1982) add to this review and categorise corporate cultures according to
two determining factors in the marketplace
> The degree of risk associated with the organisations activities; and
> The speed at which organisations and their employees receive feedback on their
success of decisions or strategies.
These factors give rise to four generic types of culture:
- The tough – guy culture
- Macho culture
- Work-hard play-hard culture
- Process culture
“Tough-guy, macho culture – an organisation of individualists who frequently take high
risks and receive quick feedback on the right or wrong of their actions. Examples cited
include police departments, surgeons, construction, cosmetics, and management consulting
and entertainment industry. Financial stakes are high and there is a focus on speed. The
intense pressure and frenetic pace often results in early burn-out. Internal competition and
conflict are normal, stars are temperamental but tolerated. A high staff turnover can create
difficulties in building a strong cohesive culture.
Work-hard/play-hard culture – characterised by fun and action where employees take few
risks, all with quick feedback. There is a high level of relatively low-risk activity. Examples
include sales organisations such as estate agents and computer companies, mass
companies such as Mc Donald’s, office equipment manufacturers and retail stores.
Organisations tend to be highly dynamic and the primary value centres on customers and
their needs. It is the team who produce the volume, and the culture encourages games,
meetings, promotions and conventions to help maintain motivation. However, although a lot
gets done, volume can be at the expense of quality.
Bet-your-company culture – Where these are large-stake decisions with a high risk but
slow feedback so that it may be years before employees know if decisions were successful.
Examples include oil companies, investment banks, architectural firms, and the military. The
focus is on the future and the importance of investing in it. There is a sense of
deliberateness throughout the organisation typified by the ritual of the business meeting.
There is a hierarchical system of authority with decision-making from the top down. The
culture leads to high-quality inventions and scientific break-throughs, but moves only very
slowly and is vulnerable to short-term fluctuations.
Process culture – a low-risk, slow-feedback culture where employees find difficulty in
measuring what they do. Typical examples include banks, insurance companies, financial
services, and the civil service. The individual financial stakes are low and seem to disappear
into a void. Lack of feedback forces employees to focus on how they do something, not what
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
they do. People tend to develop a “cover your back” mentality. Bureaucracy results with
attention to trivial events, minor detail, formality and technical perfection. Process cultures
can be effective when there is a need for order and predictability”
Taken from Mullins (2002p803-04).
Perhaps your own organisation can be identified as one of the above or indeed in many
circumstances a mix of the above very much dependant on the type of organisation you
belong to or the leadership style adopted by the top management.
Additionally your organisation will be influenced by other historic factors such as the
historical nature of the organisation, where old habits and traditions may have existed from
the beginning – Consider the Heritage of Cadbury which in 2009 may be under threat from a
take-over. Primary functions, size, location, management styles; current economic conditions
and corporate goals.
Consider Blue chip companies on the worlds stock markets. Prior to the recent collapses
many of the quoted company’s shares were traded on the strength of confidence.
Confidence that the organisation was solid, true, trustworthy, and prudent with their
approach to finance. The culture of such organisations during their humble beginning may
have been very different from today’s culture, and perhaps one the main cultural changes
may well have included taking on additional risk. If history and lesson’s learnt teaches’ us
anything it is that liquidity in any business is paramount to its survival.
So why is an organisations culture so important..?
Clearly the maintenance of a positive culture is very challenging. Client’s expectations
require honesty and transparency, and managing your organisations profile and culture is
very fickle, and relies on consistent messages of a positive nature. A positive culture also
allows organisations to differentiate from other groups.
Case study
During 2008/09 Barhale a local engineering firm within the West Midlands, undertook a
contract for Severn Trent to replace storm and foul water drainage systems to alleviate
flooding in the town of Newport. The project would involve major disruption to both the
town’s residence and businesses, and the reputation of contractors in this area of work is
very negative. Barhale took a different approach, and by adopting a customer friendly
culture cascaded throughout the organisation via pep talks, sharing of their vision to all
their team, and by using directly employed labour they began work in 8 key phases.
A customer care code of conduct was adopted and local residence and businesses were
invited to contribute towards the document and strategy.
The strategy and techniques used to aid customer liaison will be discussed in week 4, but
the analogy demonstrates how organisational culture can influence perceptions and
potentially lead to future repeat business.
At the closure of the contract local residents organised a ‘Thank you’ party for the
contractors and Severn Trent and national exposure lead to Barhale receiving a national
award for customer care. Barhale have also been appointed to undertake further contracts
for the client.
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
Clearly the actions of individuals made an important difference. We have already reviewed
the importance of employees as a whole, but individual’s actions are just as important.
Consider the actions of so called celebrities. Clients in the form of large multi national
organisations rely on these stars to promote their products and increase both sales and
awareness. Company’s make careful choices as to who they feel best represents their
organisations image and culture. Valuable sponsorship deals are struck. However if the
individual actions offend the companies expectations the sponsorship is quickly axed.
Another view surrounds the concept that cultures are predominately created through
effective leadership or employee/individual/group commitment. Leadership styles and affects
on organisations structure will be tackled on a further module.
Other academics and practitioners align culture to organisational climate, characterised by
the nature of the people-organisation relationship and the superior-subordinate relationship.
Mullin takes this a step further and highlights what he identifies as two key areas for positive
environments; characteristics of a healthy organisational climate and staff morale
Although similar types of organisations will share certain common features and norms, each
organisation will have its own differing and distinctive features. In general terms, however a
healthy organisational climate might be expected to exhibit the following characteristics
1. The integration of organisational goals, and personal goals.
2. The most appropriate structure based on the demands of the socio-technical systems
3. Democratic functioning of the organisation with full opportunities for participation
4. Justice in treatment with equitable personal and employee relations policies and
practices.
5. Mutual trust, consideration and support among different levels of the organisation
6. The open discussion of conflict with an attempt to avoid confrontation.
7. Managerial behaviours and styles of leadership appropriate to the particular work
situation.
8. Acceptance of the psychological contrast between the individuals and the organisation.
9. Recognition of people’s needs and expectations at work, and individual differences and
attributes.
10. Equitable systems of rewards based on positive recognition.
11. Concern for the quality of working life and job design.
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
12. Opportunities for personal development and career progression.
13. A sense of identity with, and loyalty to the organisation and a feeling of being valued as
an important member of the team.
This is not to say a healthy climate within organisation’s will guarantee increased
performance, but the adoption of some the above points would certainly contribute towards
encouragement of greater achievement and increase the potential for employee commitment
towards new initiatives, like the introduction of client/customer cultures.
Creating a Customer-led organisation
A pattern is emerging that unless commitment from all levels of the organisation is
forthcoming the success of a positive client culture will not emerge. Views are mixed as to
which side of the organisation is best placed to promote customer care, and who is better
placed to influence clients most effectively. However over the last decade larger organisation
like Pepsi cola, British Airways, Morrison’s, and departments within city councils all
subscribe to the right side up approach.
Figure 2 – Wrong- and right-side up organisation
Doyle (2002p46)
Doyle (2002p45-46) “identifies that today’s leading companies are attempting to take out
layers of management and so slash overhead costs. By turning their approach upside down,
they seek to create customer-led business with front-line employees motivated and
empowered to satisfy customers. These new organisations recognise that everything should
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
start from the customer’s perspective. Second, those employees’ closest to the customer or
client are at the top of the organisation. They should be empowered to exercise their
freedom to act within their areas of competence- take responsibility, accept accountability,
exercise initiative and deliver results. As far as possible they should see themselves as
owner operators, recognising that what is good for the customer/client is good for the
organisation and good for them as individuals”.
“Others take a step back and refer to the creation of a customer led business- begging with a
mission. Managers and staff must be motivated to commit to a revolutionary change in the
culture. They need to buy into an inspiring vision of a mission statement –a shared goal
worth putting all their energies and ideas towards achieving. At British Airways, Chief
executive Colin Marshall inspired change with the highly visible mission of making the airline
the best in the world,’ the worlds favourite airline’. Doyle (2002p53).
What is your organisations mission?
A further connection to all theories is the positive message culture. Securing success is a
sure fire way of satisfying clients. Let’s return to the early debate of client association with
individuals. Organisations that portray success attract clients, and sponsorship. Consider the
growth of local construction firms, or indeed the obtainment of one of the local football teams
in achieving premiership status. Do you feel the association and connection to clients is
stronger at this current time, and do you feel clients are willing to pay a premium to be
associated with this success? So perhaps creating the customer led business commences
through a strategic mission of knowing where as an organisation you are heading. And
success follows when the understanding of what is important to the organisation (the mission
is achieved).
Figure 3 – Creating the customer led business
Doyle (2002p46)
Furthermore one of the key features of translating strategy into action involves organisational
commitment towards education and training. The mere fact that you are engaging in the unit
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009
perhaps demonstrates your importance within the organisation, and demonstrates that your
organisation is keen to better engage in customer/client care. After all client/ customer care
is vital to the organisations survival and future prosperity. Never more so than in this current
climate. Suddenly organisations across the world are reviewing their policies and procedures
so that positive messages, and new mission statements are issued and understood. Even
political parties are constantly revisiting their cultural policies, and appointing consultants to
action in-depth analysis or review client satisfaction.
Conclusion
In conclusion we have examined various approaches towards better understanding of the
need for organisations to become more customers focussed and reviewed some of the key
issues behind these required changes. As Peppers et al (1999) identifies to almost all top
executives now claim that their organisation are, or are to become, customer led. Hospitals,
public sector organisations and non-profit bodies increasingly echo this claim. All now
appear to see that the dedication to meeting the needs of customers is the critical
requirement for survival and growth. Yet few companies, in practice, are truly customer led
and many that have tried to transform themselves have seen their initiatives languish.
“Creating a customer led business requires clarity of goals, an intense commitment over a
long period and the active involvement of the entire workforce” Doyle (2002p53).
Week 3 Task- Improving awareness of the need for a positive customer culture within
your own organisation
Aims: This task is to help you individually evaluate the existing customer/client culture within
your organisation.
Q1: Examine and discuss the strategy towards a customer/client culture currently adopted by
your organisation
Q2 Reflect on your own values towards customer/client care. Do these align with the
Organisations culture?
Q3 What improvements would you make to your organisations current ethos towards
Customer/client care to ensure improvements are continuous?
Submission:
Your individual reflections and evaluations should be posted in your
e-portfolio (PebblePad) week 3. Format at discretion of the learner.
Word count: 500 words (indicative)
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Unit 2009
Referencing
Atkinsons,P.E.(1990) Creating Cultural Change, Vol 34. Management Sevices.
Charvet,S.R.(1997) Words That Change Minds 2nd Edition. Kendall/Hunt Publishing Company
Deal,T.E. and Kennedy,A.A. (1982) Corporate Cultures: The Rites and Rituals of Corporate Life Penguin . Cited
in Mullins,L.J.(2002)
Doyle,P.(2002) Marketing Management and Strategy 3rd Edition. Prentice Hall
Handy, C.B. (1993) Understanding Organizations 4th Edition. Penguin cited in Mullins L,J (2002) Management
and Organisational Behaviour 6th Edition.
Harrison,R. Understanding Your Organisation’s Character. Harvard Business Review., Vol 50, May/June 1972,
pp. 119-28. cited in Mullins L,J (2002) Management and Organisational Behaviour 6th Edition.
Mullins,L.J.(2002) Management and Organisational Behaviour 6th Edition. Prentice Hall
Munford,E.(1986) Helping Organisations through Action Research; Quality of Work Life,Vol 3
Oswick, C., Lowe, S. and Jones,P(1996) Organisational Culture as Personality: Lessons from Psychology?
Pitman Publishing
Patching,K.(1999) Management and Organisational Development. MacMillan Business
Robbins.S.P and Hunsaker.P.L.(2006) Training In Interpersonal Skills: Tips for Managing People at Work 4th
Edition. Prentice Hall
Stanton,N.(1996) Mastering Communication 3rd Edition. MacMillan Press Ltd.
Figures:
Figure 1: Major topics associated with organisation development Mullins (2002:p800)
Figure 2 – Wrong- and right-side up organisation Doyle (2002p46)
Figure 3 – Creating the customer led business Doyle (2002p46)
Electronic Resources
You tube link 1 – Three Building Blocks of Organisational Culture
http://www.youtube.com/watch?v=7PoOZmqWGUU&feature=related
You tube link 2 – Building Five Cultures In One Organisation
http://www.youtube.com/watch?v=NB0Wtydbv9s&feature=channel
You tube link 3 – Culture Archetypes People First Culture
http://www.youtube.com/watch?v=fUcJ26s-9rk&feature=channel
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The University of Wolverhampton
School of Engineering and the Built Environment
Unit 2009