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AUL LIB Nrchtvws 3 1 2006I THE U. S. COAST GUARD SECTOR CONSTRUCT: A STUDY OF ORGANIZATIONAL CULTURE by CATHERINE W. KANG B. S. Government, U. S. Coast Guard Academy, 1989 M. A. Educational Technology, San Diego State University, 1998 Submitted to MIT Sloan School of Management NRCHtVWS in partial fulfillment of the requirements for the degree of MASSACHU SETTS INSTSI E Master of Business Administration OF TECHNOLOGY at the Massachusetts Institute of Technology AUL 3 1 2006I June 2006 LIB RARIES © 2006 Catherine W Kang. All rights reserved. The author hereby grants to MITpermission to reproduce and to distributepublicly paper and electronic copies of this thesis document in whole or in part. Signature of Author: -, MIT Sloan School of Management May 15, 2006 Certified by: John Van Maanen rwin H. Schell Professor of Organization Studies Thesis Supervisor Accepted by: I 7,.-> *-'~ '.--- - - Stephen J. Sacca Director, MIT Sloan Fellows Program in Innovation and Global Leadership THE U. S. COAST GUARD SECTOR CONSTRUCT: A STUDY OF ORGANIZATIONAL CULTURE by CATHERINE W. KANG Submitted to MIT Sloan School of Management on May 12, 2006 in partial fulfillment of the requirements for the degree of Master of Business Administration ABSTRACT The U. S. Coast Guard has recently merged the operational forces responsible for maritime security in port and coastal zones into a new organization called the Sector construct. This thesis examines the cultural issues associated with this reorganization and poses three questions: 1. What are the cultural challenges associated with the Sector organization? 2. To what extent is cultural management relevant to the Coast Guard's strategic planning process? 3. How can the senior managers of the Coast Guard intentionally manage culture in order to facilitate lasting organizational change? The application of frameworks from several academic fields presents a holistic view of Coast Guard culture - its history, present state of transition, and future implications. ACKNOWLEDGEMENTS For reasons of non-attribution, I regret not being able to name the numerous Service members who provided enormous insight about the Coast Guard. Many thanks to all who willingly gave their time and honest input during my research. I am also indebted to Professor John Van Maanen for his wise counsel and impressive patience as my thesis advisor. Most importantly, I salute all the men and women of the Coast Guard who always get the job done. DEDICATION I dedicate this thesis to Richard Kermond. Recently retired from the Coast Guard, Richard inspired my choice of topic and enthusiastically supported me during this challenging and rewarding experience. I am thankful for our journey to come. TABLE OF CONTENTS Title Page ................................................................................................................................... 1 Abstract ...................................................................................................................................... 2 Acknowledgm ents......................................................................................................................3 Dedication .................................................................................................................................. 4 Table of Contents ........................................................................................................................ 5 I. Am erica's Maritim e Guardian................................................................................................. 7 Operators versus Regulators............................................................................................ 8 Objective ....................................................................................................................... 12 II. M ethodology........................................................................................................................13 Fram ework....................................................................................................................13 Organizational Analysis: Rossett ....................................................................... 13 Causes of Perform ance Gaps: W ile .................................................................... 14 Research ....................................................................................................................... 15 III. Literature Review ............................................................................................................... 17 Organizational Culture and Strategy.............................................................................. 17 Strategic M anagem ent: Hax and M ajluf............................................................. 17 Corporate Culture: Schein.................................................................................. 18 The Three Lenses: Ancona, Kochan, Van Maanen and Westney ........................ 21 M ental M odels: Senge................................................................................................... 23 Organizational Change .................................................................................................. 24 M odel of Transform ative Change: Schein.......................................................... 25 Leading Change: Kotter..................................................................................... 27 IV. Coast Guard Culture ........................................................................................................... 30 External Survival Issues ................................................................................................ 30 Coast Guard Roles and M issions........................................................................ 30 Ports, W aterways and Coastal Security.............................................................. 32 Strategies and Legislation .................................................................................. 34 The Sector Construct ......................................................................................... 39 Internal Integration Issues ............................................................................................. 48 Core Values....................................................................................................... 48 Com mandant's Direction................................................................................... 49 Officer Careers .................................................................................................. 51 Officer Insignia.................................................................................................. 52 Traditional Officer Specialties ........................................................................... 55 N ew Officer Specialties ..................................................................................... 62 Officer Assignm ents .......................................................................................... 64 Deeper Underlying Assumptions................................................................................... 68 Equity and Equality ........................................................................................... 68 The Status of"O ................................................................................................ 69 Good Coasties ................................................................................................... 70 Virtue of Comm and...........................................................................................71 Breadth Over Depth...........................................................................................72 Customer Focus.................................................................................................73 Battle Rhythm ................................................................................................... 74 W ork Hours ....................................................................................................... 74 Resource Constraints ......................................................................................... 75 A Fram ework for Organizational Culture ...................................................................... 76 V. Cultural Challenges.............................................................................................................. 78 Sector Commander Performance ................................................................................... 78 01 Code ......................................................................................................................... 86 Comm and Opportunities ............................................................................................... 90 VI. Recommendations .............................................................................................................. 93 The M ountain................................................................................................................ 94 M oving the Mountain.................................................................................................... 95 People Solutions................................................................................................ 95 The Foundation..................................................................................................96 The Road Ahead ......................................................................................................... 101 VII.
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