Author: Axialent Global

Innovation is a recurring theme in organizations, but is it truly being implemented effectively and with a clear purpose? Drawing from our webinar, “Innovate with Purpose”, led by Constanza Busto, Partner for the South Cone at Axialent, alongside innovation expert Borja Baturone, we present three essential strategies to drive innovation in your teams.

1. Fall in Love with the Problem, Not Just the Solution

Before jumping into solutions, take the time to deeply understand the problem you’re trying to solve. Too often, we rush to propose answers without fully exploring the challenges at hand. As Borja insightfully shared, “Innovating with purpose requires pausing to grasp the context and real needs.” By dedicating time to analyze the problem and its root causes, you ensure that the solutions developed are truly aligned with what’s needed.

2. Organizational Culture: The Catalyst for Innovation

Your company’s culture can either fuel or hinder innovation. A culture that fears failure or prioritizes stability over change stifles adaptability and experimentation. According to Borja, “People don’t fear change; they fear being changed by others.” This highlights the importance of involving everyone in the innovation process. Encouraging collaboration not only fosters a sense of ownership but also creates an environment where innovation can thrive.

3. Innovate with Purpose and Collaboration

Innovation isn’t just about technology or disruptive products—it’s about creating value for society. At Axialent, we advocate for innovation that aligns with your organization’s values and purpose. As Connie explained, “Innovating with purpose not only drives financial performance but also creates a positive impact on people and society.” Ensuring that every initiative is tied to your company’s purpose makes innovation not only sustainable but also a powerful driver of organizational and social success.

These three principles can help your organization unlock the full potential of innovation. It’s not just about being disruptive; it’s about crafting solutions that deliver meaningful value and purpose, both inside and outside your company.

Interested in learning how to embed a culture of innovation in your teams?


At Axialent, we’re here to support you in developing strategies to drive purposeful innovation.

Reach out for a personalized conversation.

Family businesses hold a unique position in the global economy, combining tradition, entrepreneurship, and emotional ties. However, preserving their legacy requires intentional strategies that address behavioral risks, values alignment, and intergenerational collaboration. With only 30% of family businesses surviving into the second generation, 12% to the third, and 3% to the fourth, according to the Conway Center for Family Business, the stakes are high.

This article explores the key principles of a conscious family business, inspired by insights shared in our recent webinar with experts Alex Felman, founder of Exponential U and Subject Matter Expert and Carlos Agustin, Partner at Axialent and Subject Matter Expert hosted by Anabel Dumlao, Partner at Axialent. 

Why Family Businesses Need Consciousness 

Family-owned businesses often face distinct challenges: 

  • Balancing personal and professional dynamics. 
  • Transmitting core values across generations. 
  • Preparing successors for leadership roles. 

Carlos highlighted the importance of achieving balance across three critical dimensions: the “It” (business results), the “We” (family dynamics), and the “I” (individual well-being).
A conscious approach integrates these elements, ensuring sustainable growth and harmony.

However, a Harvard Business Review study reveals that 70% of families lack a succession plan, a critical gap that undermines their long-term viability.
Leadership transitions remain one of the primary reasons for failure, with 50-70% of all new executives failing, according to a Corporate Executive Board report. 

 

The Role of Core Values 

Values serve as the foundation for decision-making and legacy building. Alex, emphasized that transferring entrepreneurial mindsets and maintaining a growth-oriented culture are essential. However, conflicts may arise when generational perspectives diverge, especially regarding: 

  • Strategic priorities. 
  • Governance structures. 
  • Work-life balance. 

Generational dynamics add another layer of complexity. 85% of rising generations feel ready to take control, but only 39% of those currently in power agree, according to the Camden Wealth 2022 report. This disconnect often fuels misunderstandings and stalls progress. Aligning around shared values fosters a unified vision for the business’s future. 

Addressing Behavioral Risks 

Behavioral risks, such as unresolved conflicts or unclear roles, can jeopardize the longevity of a family business. Using the metaphor of an iceberg, Carlos explained that most issues stem from “beneath the surface,” such as: 

  • Misaligned beliefs. 
  • Emotional grievances. 
  • Lack of meaningful communication. 

Proactive conversations, supported by trust and emotional intelligence, help families navigate these challenges. Without addressing these underlying dynamics, 70% of change management efforts fail, according to a Harvard Business Review report, underscoring the need for conscious leadership. 

Practical Steps for a Conscious Family Business 

  1. Establish Governance Structures : Clear roles and decision-making frameworks ensure accountability and reduce power struggles. 
  2. Prioritize Open Communication : Schedule regular family meetings to discuss business and personal goals. 
  3. Foster Intergenerational Education: Combine technical and human skills development for younger members, including negotiation, feedback, and conflict resolution. 
  4. Develop a Shared Narrative : Carlos recommended creating a “family story” to instill pride and commitment among members. 
  5. Measure and Align Goals : Tools like the Family Office Navigator can assess financial and emotional capital, aligning the family’s vision with actionable steps. 

Building a conscious family business is a dynamic process that requires continuous effort and collaboration. By focusing on trust, intentionality, and shared values, families can preserve their legacy and thrive across generations. As Alex Felman put it, “Consciousness begins with self-awareness—knowing where you are today and deciding where you want to go.” 

The AI Imperative for Business Leaders 

In today’s rapidly evolving business landscape, Artificial Intelligence (AI) has emerged as a transformative force. A recent study by McKinsey & Company revealed that 75% of C-suite executives believe failing to scale AI in the next five years could lead to business obsolescence. 

As AI reshapes industries globally, business leaders face critical questions: 

  1. How can we align AI initiatives with our core business objectives to drive growth and innovation? 
  2. What governance frameworks and ethical guidelines ensure AI adoption enhances our organizational values and societal responsibilities? 
  3. How can leadership shape an AI-enabled future that balances technological advancement with human-centric principles and sustainable business practices? 

The Global Shift to AI-First 

Recognizing the immense potential of AI organizations worldwide are racing to become AI-first. This paradigm shift involves: 

  1. Prioritizing AI integration across all business functions.
  2. Investing heavily in AI infrastructure and talent upskilling.
  3. Reimagining products, services, and processes through an AI lens 
  4. Cultivating a data-driven culture to fuel AI initiatives 

Leaders are beginning to view AI not just as a tool, but as a core business strategy. The belief is that AI-first companies can unlock unprecedented efficiency, innovation, and competitive advantage. 

Beyond AI-First: The Conscious-First Paradigm 

While AI-first offers benefits, it also presents risks. Thought leaders like Yuval Noah Harari and Elon Musk have raised concerns about AI’s societal impact. At Axialent, we see these risks as symptoms of “unconscious leadership” in AI adoption—a challenge we address through a mindful approach. 

At Axialent, we believe true competitive edge comes from actively shaping a future where AI serves humanity and business ethically. We propose moving beyond “AI-first” towards “Conscious-first” AI adoption. Our approach empowers organizations to leverage AI for extraordinary sustainable success, aligning technological advancement with human values and long-term societal benefits.  

aligning technology with human values and long-term benefits. 

Conscious-First AI leadership enables organizations to: 

  • Maximize AI’s potential while upholding ethics 
  • Put people at the center of tech adoption 
  • Align AI with company values and goals 
  • Reduce risks of unchecked AI use 
  • Foster responsible innovation 

We partner with clients to make AI a force for good —driving both, profit and positive impact. 

Conscious Leadership in the AI Era 

Three core attitudes prevail in conscious-first AI leadership: 

  1. Adaptive Humility: Seeing AI as an extension of human capabilities, not a threat.  
  2. Holistic Responsibility: Taking full ownership of AI integration and its broader impacts. 
  3. Essential Stewardship: Using AI to uphold and enhance values and integrity. 

These principles guide leaders in fostering sustainable growth, trust-based relationships, and emotional mastery—ensuring AI is a tool for good, not just for profit. 

The Culture Challenge: From Leadership to Organizational Transformation 

Cultivating conscious AI leadership is essential, but the real challenge lies in scaling these principles across the organization. As Satya Nadella, Chairman and CEO of Microsoft, said: 

“At the end of the day, companies will have to take a process, simplify the process, automate the process, and apply these solutions. And so, that requires not just technology, but in fact, companies to do the hard work of culturally changing how they adopt technology.” 

For successful AI adoption, businesses need to foster a conscious culture where AI is embedded in daily practices and works as a catalyst for innovation and ethical progress. 

Axialent’s Approach to Sustainable Transformation 

We empower organizations to adopt a conscious-first AI mindset through: 

  1. Mindset Transformation: Shifting beliefs and values through leadership programs and executive coaching. 
  2. Behavioral Change: Developing ethical AI usage skills, improving decision-making processes, enhancing communication skills and cultivating continuous learning habits. 
  3. Tech-Enabled Embedment: Integrating AI-powered tools like ConsciousInsights AI into daily leadership practices to deliver in-the-moment, relevant insights for crafting individual development plans, addressing challenges effectively, and preparing for difficult conversations, among other leadership capabilities.   

This creates a self-reinforcing system of continuous improvement and innovation, making AI a key driver of sustainable transformation. 

Embracing the AI-Powered, Human-First Future 

AI integration is not just a tech shift— it’s a major shift in how businesses operate. Conscious AI leadership balances technological progress with human values. 

Tomorrow’s leading organizations will harness AI’s power while maintaining strong ethics. By embracing adaptive humility, holistic responsibility, and essential stewardship, leaders can build more efficient, innovative, and conscientious businesses. 

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Procrastination is a common struggle many people face, particularly in the context of modern, mentally demanding jobs. But what is the underlying cause, and how can individuals effectively address it?  

This term, defined as the act of delaying or postponing tasks, often manifests as a form of dread when faced with a task, leading to the creation of excuses to delay in favor of something seemingly more urgent. Contrary to popular belief, this behavior is not necessarily a fault of character or a lack of productivity. Instead, it can be understood as an issue of emotional regulation; which refers to the ability to manage and respond to one’s emotional experiences in a healthy and productive manner. When faced with tasks that evoke feelings of stress, anxiety, or overwhelm, individuals may struggle to manage these emotions effectively, resulting in procrastination as a coping mechanism.  

 Adam Grant, among others, has framed the Procrastination tendency as a problem of managing emotions rather than a deficiency in motivation or drive. This perspective is particularly relevant for knowledge workers who frequently encounter challenges in maintaining concentration and avoiding delays.  

 Procrastination and Stress  

 Like stress, postponing tasks can have both positive and negative aspects. A small amount of stress can be beneficial, providing focus and energy to tackle priorities. Similarly, delaying tasks can sometimes be strategic, allowing time to gather necessary information before making a decision. However, when this tendency extends beyond these limits, it becomes counterproductive.  

 Understanding the root causes of procrastination is crucial. These can include:  

  • Emotional Overload: When the emotional burden of a task is too high, it can lead to avoidance behaviors.  
  • Cognitive Overload: Complex organizational structures, such as matrix organizations with conflicting directives, can overwhelm individuals, leading to delays.  
  • Structural Issues: Sometimes, the practical set-up of tasks or the lack of clear guidance can contribute to delays. 

How Do Procrastination and Stress Impact Work Culture and Team Performance?  

The culture within an organization plays a significant role in addressing procrastination. A culture that prioritizes emotional regulation, stress management, and a player mindset fosters, in the long term, high-performing teams. This is crucial for leaders that wish to achieve their team’s full potential.  Such a culture encourages individuals to view tasks not as sources of stress but as opportunities for growth and learning. This shift is important for transforming procrastination from a habitual response into a manageable and even avoidable issue.  

 Practical Strategies to Combat Procrastination include:   

  • Physical Exercise: Engaging in regular aerobic exercise can boost energy levels and interest, making it easier to tackle tasks.  
  • Mindfulness and Meditation: These practices help improve focus and reduce emotional overload, providing a clearer mental state for approaching tasks.  
  • Reframing: A technique from behavioral therapy, reframing involves changing the perspective on a task. For instance, instead of aiming for perfection, individuals can focus on making progress and learning from the process. This shift can reduce the pressure and make it easier to start and continue tasks.  

 Perfectionism often contributes to procrastination, as individuals fear not achieving perfect results. By reframing tasks as opportunities to make progress rather than prove perfection, individuals can break free from unproductive thought patterns. This approach encourages a mindset of continuous improvement rather than one of stagnation due to fear of imperfection.  

To address these issues, it is essential for leaders to view the brain as a critical organizational asset. By understanding and prioritizing brain health, leaders can enhance productivity, innovation, and overall well-being within their teams. This leads to the crucial areas of focus for brain health:   

The Brain as an Asset  

As a leader of a team or company, focusing on brain health for your team can significantly enhance productivity, innovation, and overall well-being. When considering brain health as a priority, as we covered before, Physical Exercise, Reframing challenges and Stress Regulation are crucial for performance success.  

But before diving into these priorities, the most crucial step as a leader is to allocate your attention to what matters most. If brain health is the current priority, commit fully to this conversation and action plan. If an immediate business need takes precedence, focus on that, and revisit brain health when appropriate.   

 The ability to prioritize and allocate attention effectively is the foundation of strong leadership.  

Investing in brain health is not just an individual benefit; it is a strategic organizational asset. By prioritizing physical exercise, reframing challenges, and regulating stress, you can create a more resilient, innovative, and productive workforce.   

 Encourage your team to engage in regular physical exercise, adopt a growth mindset towards challenges, and practice stress management techniques. Your leadership in prioritizing brain health will pave the way for a thriving, high-performing organization.  

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Finding Meaning in Challenging Times

In our recent webinar, Leading with Purpose , Teryluz Andreu and Michelle Hollingshead addressed the challenges of finding significance in work, particularly during tough times. While motivational quotes like “Follow your passion” are easy to share, real life often requires enduring stress, change, and the need to provide for one’s family. Michelle offered her insights on how individuals can find significance in their work, even when they can’t immediately pursue their dream jobs.

She reflected on her own journey, highlighting the importance of understanding why one is willing to take risks in pursuit of meaningful work. Defining work as contributing to society and emphasized the need to focus on what is important and how one can contribute through their job. From her research, she identified four ways to find significance in work, which align well with the key stages of adult development:

  • Work as Just a Job: For many, especially young professionals, their job might not feel inherently meaningful. Leaders can coach their employees to connect their jobs to what is most important for them in their current life stage, such as providing for their families or accessing desired experiences. This approach encourages employees to recognize and utilize their gifts and strengths in their work.
  • Work as a Stepping Stone: This perspective is highly motivating for high achievers. Leaders can support their employees’ career progression by helping them see their current role as a critical step in their development. Connecting their work to skill acquisition and future aspirations can provide significant motivation.
  • Work as Purposeful: For those who have the privilege to align their work with a deeper purpose, it involves being drawn to something greater. This stage is about finding work that resonates deeply with one’s values and aspirations.
  • Work as Progress: Some individuals are driven by the desire to solve complex and challenging societal issues. Recognizing and supporting these employees’ orientation towards making significant progress can help them find deep significance in their work.

Michelle emphasized that leaders listen with curiosity and understand that not everyone will be motivated by the same factors at any given moment. By considering these different perspectives, individuals can find significance in their work regardless of their current circumstances.

Finding Significance in Any Job

During the conversation, the speakers explored how managers can help employees find significance and meaning in their work through thoughtful reflection and coaching. It was mentioned the importance of asking insightful questions and creating a supportive environment.

One key question highlighted by Michelle was “How is your work connected to what is most important to you now?” This question encourages employees to reflect on the current relevance of their work to their personal values and goals. It’s crucial for managers to see themselves as coaches and engage in regular, meaningful exchanges with their team members. Citing Gallup research, she noted that 15 to 30 minutes of meaningful interaction each week can have a significant impact on an employee’s engagement level.

To foster these meaningful conversations about meaning, managers should focus on:

  • Consistency: Regularly engaging in reflective conversations helps build a habit of focusing on what matters most. This ongoing dialogue is essential in a dynamic and ever-changing work environment.
  • Psychological Safety: Creating a trusting and safe environment is crucial for employees to openly share their thoughts and feelings. Managers must invest in building strong, quality relationships to encourage openness and exploration.
  • Attention to Change: Acknowledging that employees are often overwhelmed by constant change, managers should help them navigate these shifts by maintaining a steady focus on what is important now.

By asking reflective questions and fostering a supportive atmosphere, managers can help employees find significance in their work, even amidst challenges and changes.

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In the webinar Leading with Purpose, Teryluz Andreu and Michelle Hollingshead had a conversation about the multifaceted nature of meaning in life and work, as explained in Michelle´s book Meaning Indicator .  One of the key concepts of the book is a definition of meaning that is much broader than purpose. 

Michelle elaborated on the key dimensions of meaning, sharing insights from her research project, which included a comprehensive literature review of positive psychology and assessments conducted since the 1950s. She highlighted four key dimensions of meaning: comprehension, purpose, significance, and belonging.

  • Comprehension involves understanding one’s identity and the factors that have shaped it. This dimension parallels organizational identity, as organizations also need to continuously ask, “Who are we?” and “Who are we becoming?”
  • Purpose is about direction and goals, both individually and collectively. It’s crucial for individuals to connect their personal sense of purpose with the shared mission of their organization.
  • Significance, a concept Michelle found particularly intuitive and exciting, involves having a sense that we matter. Recent studies, and the impact of the pandemic, underscored the importance of understanding what truly matters in life and work.
  • Finally, belonging addresses the human need to be part of something greater while also seeking growth and expansion. This dimension involves balancing the tension between belonging and aspiring beyond current circumstances. Organizations need to create environments where individuals feel they are part of a larger purpose while also supporting their personal growth.

When individuals connect with these dimensions, it significantly impacts their motivation and the quality of their engagement in all areas of life.

Finding Deeper Meaning During Challenges​

In their discussion, Teryluz and Michelle delved into how leaders can help their teams find deeper meaning when facing external challenges. The importance of creating conditions that allow for the honest expression of feelings, which can lead to emotional mastery[Potential link a prox webinar] and curiosity include:

  • Acknowledging feelings: Leaders need to create a safe space for team members to express what is real and true for them. By addressing feelings openly, leaders can help their teams identify underlying needs and move through challenges more skillfully, avoiding unhealthy coping mechanisms.
  • Leaders’ self-development: Leaders must also focus on their own development. Effective leadership involves continuous personal growth and showing up authentically. Leaders need to invest in their development through community and connection, demonstrating emotional intelligence and resilience.
  • Ongoing conversations: There is no one-size-fits-all solution for finding meaning during tough times. Instead, it involves ongoing, quality conversations. Culture changes one conversation at a time and leaders should strive to be aware, clear, and present in their interactions, fostering an environment where deeper meaning can emerge.

By creating a supportive atmosphere for emotional expression, investing in their own growth, and maintaining continuous, meaningful conversations, leaders can help their teams find deeper meaning and build resilience during challenging times.

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In today’s fast paced environment, organizations often unknowingly compromise the cognitive potential and the well-being of their leadership and whole workforce due to inefficient setups. Here’s a look at how this happens and what leaders can do to address it: 

1. Adopting a Growth Mindset to Enhance Cognitive Engagement 

We must recognize that rapid change and uncertainty increase the likelihood of distractions, procrastination and chronic stress, especially in the case of virtual teams and interactions, the lack of human interaction can impact cognitive engagement and productivity. So, companies, teams and individuals who adopt a Growth Mindset, also related in the Brainhealth landscape to the “brain-as-an-asset” mindset, are more likely to take charge of their cognitive well-being and skillset, actively prioritizing tasks and better regulating distractions and stressors that can impair working memory, decision-making and overall productivity.   

2. Leadership Interventions  

Broad leadership Interventions are key in shaping cultures and practices that shape brain health in positive ways. For example, one effective strategy is to structure virtual meetings differently and ensure that they do not exceed 20-25 minutes. Clear agendas and frequent 5-minute breaks between meetings allow participants to recharge and stay focused.   

Besides these examples, leaders should also promote a shift towards conscious meeting participation, limiting them to essential participants and minimizing distractions during meetings by asking to turn off alarms and notifications on devices. 

3. Working Memory 

Let’s talk about Working Memory and how to protect it and deploy it well.  Working memory is the ability to hold multiple units of information simultaneously. These “units of information” can be thought of as pieces of data that the brain actively processes and can integrate “online” at any given time. For instance, remembering specific instructions, keeping track of deadlines, integrating relevant facts and feedback. Working memory is a crucial and limited cognitive resource essential for tackling any cognitive challenge. Organizations can help preserve this valuable resource by minimizing noise, distractions, and “detail overload.” By doing so, employees can focus on real priorities, conceive solutions, and execute them creatively and flexibly. 

 The average person can manage and integrate five to seven units of information at a time. However, distractions such as stress, concerns, and random thoughts can consume these units, reducing the capacity available for productive tasks. Imagine a person whose units of information are all occupied with stressors like an upcoming conversation with a boss or political events highlighted in the media. This preoccupation significantly diminishes their capacity to learn and solve tasks at hand, resulting in decreased performance and productivity, and even more stress and concerns. What could be a virtuous circle becomes a vicious one. 

 To protect working memory, it is important to avoid distractions by being aware of stressors and actively working to mitigate their impact during important tasks. Additionally, utilizing external systems such as calendars and notebooks can help free up working memory, allowing for more efficient information processing. 

4. Protecting and Optimizing Working Memory 

Stress and working memory are closely linked, and their interaction profoundly impacts decision-making, productivity, and resilience – for good or for bad. Some levels of stress, properly regulated, can be a positive factor, elevating alertness and motivation. Too much of it, once the person is not able to regulate it, harms wellbeing and performance. When dealing with rapidly changing, uncertain environments such as what we experience today in the nascent AI era it is important to master stress regulation with techniques such as:  

  •  Breathing, Visualizing, Reframing, Biofeedback: Implementing stress-regulation techniques to preserve working memory for essential tasks as the “mental athletes” we need to be. 
  • Efficient Memory Use: Encourage the use of external memory aids to protect cognitive resources.  
  • Reduce noise: To minimize chances of misallocating limited working memory to unproductive or even counterproductive endeavors. 

5. Mindfulness 

Incorporating mindfulness practices such as meditation can help build focus and reduce distractibility. A more radical approach could be to erase all recurring meetings from calendars, encouraging employees to mindfully prioritize necessary meetings.  

Alongside mindfulness, there is another core approach to Empower Minds and Optimize Cultures: Physical Exercise. We´ll dive deeper into these in our next article “Procrastination, Emotional Regulation & Reframing”.  

 Understanding and optimizing the use of working memory and brain health overall can lead to better decision-making and enhanced well-being and productivity. Organizations that prioritize these strategies can create a more resilient and effective workforce, and of course the opposite goes for those who don’t. 

 To harness and grow the potential of our teams, let’s prioritize brain health in our organizational strategy. Let’s restructure meetings, especially virtual ones, incorporate mindfulness practices, and educate our teams on the importance of managing working memory. These steps can not only enhance productivity in the short term but also foster a healthier and more engaged workforce in the longer term.  

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In the world of care—be it in schools, hospitals, or nursing homes —real success goes beyond the basic duties we perform. It’s also about the well-being of the caregivers themselves. For you, leading such a distinguished institution, it’s crystal clear: You’re here to nurture a culture of dedication, excellence, and positivity among your staff. But let’s face it, the past few years have tossed us into uncharted waters. The post-pandemic era has left many feeling burned out, less driven, and disconnected.

The core of your institution beats with the passion and dedication of your team, who came aboard inspired by the noble goal of serving others, not just hitting business targets.

In our recent webinar, “Beyond Burnout: The Blueprint for Transformative Culture”, we explored how to kickstart change, enrich your culture, and boost the morale of your team, even when times are tough.

Here at Axialent, we stand by the conscious business approach. This model intersects caregiving with the deep levels of human connection and kindness. In a conscious business, the goal isn’t just about making money—it’s also about the well-being of everyone involved. This includes your employees, the people you serve, and the larger community. Caregivers, mostly driven by values of empathy and kindness, are dedicated to caring for others yet often feel neglected. Conscious Business practices teach caregivers to know themselves better and be resilient, which helps them deal with their complex roles in a sustainable way. By bringing these principles into their work, caregivers can create an environment that focuses on the complete well-being of those they look after, although not at the expense of their own.

“Easier said than done,” you might say. How do we strike the balance between the business side of things and taking care of our caregivers’ well-being? With the constant push to do more with less, we run the risk of thinking that doing ‘more’ is the same as doing ‘better.’ This dilemma points to an urgent need for solutions that get to the heart of burnout and lack of drive while also rekindling the inner fire and commitment within your team.

Our approach is tailored; we get that caregivers face unique challenges. We know that their well-being can’t be the object of quick fixes. It needs a whole-person approach that is rooted in a culture of empathy, support, and self-care within the organization. By truly embracing the idea of caring for caregivers, institutions can create an environment where staff feel valued, respected, and in control. This fosters a stronger sense of belonging and purpose among caregivers, reigniting their spirits and dedication.

Investing in the well-being of caregivers isn’t just good for them—it’s smart for the institution too. By looking after the mental, emotional, and physical health of caregivers, organizations build a foundation for lasting success. This isn’t merely about lessening burnout or upping productivity; it’s about cultivating a culture where caregivers don’t just get by—they thrive. This empowers the institution to live out its mission with true integrity.

In conclusion, taking care of our caregivers is essential, now more than ever. It’s not just about the numbers; it’s about creating a supportive community where everyone can do their best work. So let’s roll up our sleeves and get to it. Let’s build a culture that looks after those who look after us all.

Because when our caregivers succeed, so do we.

In a rapidly evolving business environment, characterized by constant changes and growth challenges, corporate culture emerges as a crucial pillar for the survival and prosperity of organizations. This global phenomenon not only affects large corporations but also startups and medium-sized enterprises. This article explores the nature of corporate culture, its economic impact, and its influence on business performance, offering a comprehensive perspective on its role in the modern era.

Corporate culture transcends a set of written values; it represents the soul of the company. It is the complex fabric of beliefs, behaviors, symbols, and systems that dictate how employees interact and make decisions. It is essential for navigating a disruptive business world, where only 23% of executives acknowledge that they can effectively manage cultural changes to align them with the business. Symbols in the form of rituals and myths, observable behaviors, and underlying systems define the unique character of each organization. This intangible yet powerful component is what drives companies to overcome obstacles and achieve their strategic goals.

To illustrate the economic impact of corporate culture with concrete data, we can consider, according to a survey by the Korn Ferry Institute, that between 30% and 50% of an organization’s market value can be directly attributed to its culture. This shows us that culture is not only a key strategic differentiator but also a considerable and compelling economic asset.

Furthermore, a recent study has revealed the power of a single cultural attribute, such as recognition, in the economic performance of a company. If the number of employees perceiving recognition as an essential attribute of their work environment were doubled:

  • a 9% improvement in productivity,
  • a 22% decrease in safety incidents,
  • and a 22% reduction in absenteeism would be observed.

This translates to $92 million in productivity gains and millions more in savings due to decreased incidents and unscheduled absences.

Other studies also emphasize that companies prioritizing culture and investment in their employees can grow sales and margins up to twice as much as those that do not.

The economic influence of a strong corporate culture is undeniable. Another comprehensive study has shown that companies with strong cultures aligned with their strategy have significantly better financial performance.

A longitudinal analysis of 25 companies over 11 years revealed that organizations with adaptive and aligned cultures experienced a 682% increase in revenue, compared to a 166% increase in companies without such alignment. Additionally, in the realm of mergers and acquisitions, an aligned culture is a critical factor for success, with executives willing to abandon deals if the culture is incompatible or reduce the purchase value by up to 30%.

These data underscore the power of culture as a driver of growth and sustainability. Likewise, a strong culture positively impacts employee retention and satisfaction, customer loyalty, and the innovative capacity of the company, creating an ecosystem where all aspects of the business nurture and strengthen each other.

  • A well-defined and executed corporate culture becomes a key strategic differentiator. In the current competitive landscape, where the pace of change is staggering, a culture that supports and embraces this change is vital. This is a key aspect that companies should not overlook if they seek not only to survive but also to thrive in the modern business landscape.
  • Effective culture management can and should be a strategic initiative to generate more economic value and ensure a prosperous future.
  • Companies that prioritize a culture of innovation and adaptability tend to outperform their competitors in terms of agility and ability to respond to market changes.

Additionally, culture directly affects operational efficiency, decision-making, and strategy implementation. A culture that supports and embraces change is vital. Culture thus becomes the central axis for strategy execution, the development of new products, and expansion into new markets.

It is more than a strategic component; it is the heart that drives success in a competitive and disruptive world. With economic importance clearly established and tangible impacts on business performance, it becomes evident that deliberate actions to foster a strong culture are essential.

The remaining questions are: Is your organization prepared to transform its culture and move towards a prosperous future? And in addition to this, it is worth questioning how much economic value we are leaving on the table by not strengthening the culture to achieve unbeatable results.

In summary: The best business we can invest in is our corporate culture consciously.

Behavioral risk management is an emerging field that aims to understand the underlying human and cultural factors that can lead organizations into both success and failure. By digging deeper than surface-level controls and metrics, behavioral risk assessments provide valuable insights for leadership teams looking to transform their culture and bolster integrity.

Mirea Raaijmakers, a pioneering expert in the subject, has over a decade of experience applying behavioral science to regulatory oversight and internal bank programs. In our recent webinar, Mirea delved into the core principles and promising potential of this approach.

The Bright and the Dark side of companies

There are two sides, the dark side and there’s also the positive side of organizational culture, which is a very good place to be. It’s where risks are taken in a very balanced way, and we’re efficient and in control, and we know there’s trust and integrity. But there’s also this other side of culture, which is also part of our focus.

I would say it’s behavioral risk management, that’s the darker side. It’s where, inconsistencies are inefficiencies, distrust, that’s where the sharks are. And I think the question is not so much, do organizations have a dark side? I think every organization has a dark side, every organization also has bright sides. And honest management and leadership is about understanding both sides, understanding what’s going on and doing something about it when necessary, and then being able to dive deep below that waterline and also swim out to where the sharks are is absolutely part of the leadership that you know today in this rapidly changing world.

The Desire State

How does behavioral risk management connect with safety in industrial enterprises?

There’s absolutely a connection there, so if we think about safety, if we’re talking about a safety culture or a risk culture, we’re talking about this as a desired state, at that moment we’re talking about the desired behaviors we want to see and that are essential and crucial for our organization because, in the work we do, we need to ensure our people and employees are safe, we have to ensure that the products we’re producing are also safe for our customers, in banking it’s important to have a strong risk culture, which means you’re aware of the risks.

You’re identifying your risks, you’re escalating them when necessary, but all of this has to do with the desired state, the desired behavior we want to see and behavioral risk management can be very helpful in developing you toward that desired state because it gives you an insight into what’s preventing me from reaching that state, what’s preventing me from reaching that safe culture that I need.

Culture of Avoidance

Many organizations may inadvertently foster a culture of avoidance when it comes to risks. It’s like wanting to do the right thing, but unintentionally causing avoidance, which isn’t good for business. What are some signs? I think when we talk about avoiding this, and I believe in such a turbulent world, avoiding risks or staying in the safe zone is a behavior we see quite often.

Bringing it back to Darwin, you know how people respond to stress and threat in their lives—either fighting, fleeing, or freezing. I think you know how avoiding and evading risks in this turbulent world is putting things backwards; avoidance is a coping mechanism. A coping strategy for many organizations or individuals in organizations who feel overwhelmed, out of control, psychologically threatened, and choose to simply do as little as possible and stay away from risk. I believe this is very undesirable because for organizations, we think about, small business entrepreneurs, but also corporations, taking risks is part of organizational life and being part of staying viable. And I think here again, it’s true, instead of avoiding challenges in life, you know it’s better to face them and organize yourself around them, make sure you understand them as much as possible, organize support, and face them head-on rather than avoiding them because you know you’re on the road to nowhere.

Is an Honest Mistake acceptable? 

What is your opinion on an honest mistake that could lead to a major regulatory issue or loss of lives?

People aren’t perfect, we’re not perfect, and we make mistakes, I think many things going wrong have to do with human errors and there are absolutely examples of ill intent of crossing the line, I think you have to be very clear that there’s something that’s not at all acceptable.

I think many organizations fall into the trap of not being clear about accepting unacceptable behavior, but if it boils down to human errors you have to do it. I think the obligation is to find out what really happened and then with a lot of individual behavior that you see, there’s also a connection to the culture of an organization, so the social system of the organization you know sets a social norm that people must adhere to and there’s, social reward and social rejection. If it’s unacceptable behavior, then be very clear about it, but I think most behavior is like that. It’s a much more complex story, which I think for organizations is key to uncover because they have to carry on with their organization, they have to move forward, they have to keep the organization alive.

In conclusion, behavioral risk management emerges as a transformative approach, shedding light on the intricate interplay of human behavior and organizational dynamics.

By embracing this paradigm, organizations can navigate uncertainties and foster cultures conducive to long-term success and sustainability.

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