System Dynamics modelling of Organizational Culture Transformation: A study of the organizational and technical factors that affect the implementation of Toyota production system in organizations

Abstract

Organizational culture is a vital source of competitive advantage. Nevertheless, it is often overlooked or given a lower priority due to its complex nature and the effort required to drive change. Existing change methodologies offer frameworks for implementing and sustaining organizational change, but success rates are low, with only one in three endeavours yielding favourable results. This research aims to adopt systems thinking approach to culture change. It utilizes system dynamics modelling to unravel the dynamics of change. Initially, a hybrid change methodology is developed, incorporating the best aspects of models from literature and insights gained from organizational experiences in change efforts, including standard failure modes. This hybrid method serves as the foundation for building the system dynamics (qualitative) model. The developed model represents a shift from conventional linear methods to a circular system-based approach to change efforts. The qualitative (casual loop diagram) system dynamics model facilitates a transformative understanding of the interconnectedness and temporal dynamics. Leaders can gain insights into the complexity of these interconnected relationships and time dynamics. Further research involves validating and updating the model through experimentation within a company, where key variables in the model can be measured easily. These measurements and the qualitative model together can be leveraged to produce an action plan to improve the variable. As we follow our action plan and track these variables repeatedly, the change implementation can be sustained.