Tag: culture

How comfortable are you with your co-workers’ emotions? How comfortable are you with your own?
Emotions make us human. They have a strong impact on the success, collaboration and engagement of our teams. Research clearly shows that we are all critically affected by our emotions at the workplace. It also shows that the negative influence of frustration has a stronger effect on performance than the positive influence of optimism.
Emotions strongly influence decision-making, creativity and interpersonal relationships. And yet many leaders are uncomfortable with the topic of emotions or are unaware of its influence and impact on leadership, organizational culture and performance.
Conscious, courageous leaders are aware of the power that emotions hold. They harness it and make it work for them.
Let me be clear. Bringing emotions to your leadership is NOT the same as being emotional. Being “emotional” describes someone who is “sensitive” or reacts to circumstances in an intense way — when one takes things personal that are not personal. Being able to process emotions and using the powerful information they contain is a way to improve your capacity to look at the world, take action in it, and accomplish the results you are striving for. If you ignore your and other people’s emotions and the power they hold, then you set yourself up for unpleasant surprises.
The philosophy of Conscious Business regards emotional mastery as a meta mindset that underlies all other mindsets. Emotions deeply influence how we perceive the world and whether we are able, in a given moment, to choose responsibility over victimhood or curiosity over the need for certainty. The key is to consciously engage with emotions and leverage the power and energy they have. This means to engage with the power of all emotions — the so-called positive and negative ones — be it happiness, excitement, gratitude, pride, sadness, fear, anger or guilt.
Over 20 years ago, Daniel Goleman already declared emotional intelligence (EI) as a key competence of leaders:“After analyzing 181 competence models from 121 organizations, I found that 67 percent of key abilities were related to EI. Compared to IQ, EI mattered twice as much.”
Emotions arise from the stories we tell ourselves about what we observe and experience. These stories then consciously or unconsciously influence our actions. The more aware we become of our ability to influence our interpretation of a certain situation (i.e., the story we tell ourselves), the more we can direct our actions.
Have you noticed in emotionally charged situations that our good intentions often go out the window? We know how we would like to behave and show up, but we feel so triggered in the moment that we don’t care about reason or find we are not able to choose an empowering response. Instead, we react.
You can read hundreds of books or attend seminars, but emotional mastery is not about an intellectual understanding of how to lead or have difficult conversations. It is about being aware and equanimous in the moment and choosing a helpful response.
People work differently with emotions, and we recognize three different responses to emotions arising:explosion, repression or expansion of awareness, and management of the emotion. I am sure we all have experienced the harm it does when we or someone else “explodes” because of a strong, negative emotion. For the person showing the strong emotion, it may feel like a relief in the moment, but consequences for relationships and the outcomes they are trying to achieve are mostly negative. And after a short while, it doesn’t feel that good anymore either.
On the other hand, the more we try to suppress or control our emotions, the more control they have over our thoughts and behavior, not allowing us to operate from a higher level of consciousness and leadership. The secret is not to control our emotions but to balance, manage and align our emotions with who we are and how we want to lead. It’s key to productively use the energy the emotions carry to our advantage and become aware of the message it sends us so we can act in a productive way.
Let me share a five-step framework on how to increase your emotional mastery and leverage emotions in a conscious way:

  1. Become aware of the emotion. Feel it and label it. Do I feel anger or sadness? Happiness or excitement?
  2. Unconditionally accept your emotions and those of others. Don’t argue with what is. Accept without judgment and create space for the emotion.
  3. Regulate self and respond effectively to others’ emotions. Expand your awareness. Learn to respond and not react. Practicing equanimity and being able to use the power that emotions carry is a key element of emotional mastery.
  4. Inquire and analyze the story underlying the emotion. Be curious. Every emotion carries a message.
  5. Constructively express the emotion. Reframe and tell yourself a different, empowering story. Productively advocate for your own emotion. Productively inquire into other’s emotions.

Try this the next time you experience a strong emotion arising. Pause for a moment, take a deep breath, focus and spend a few moments to harness its power. Then consciously direct this power to support the people around you and the task at hand. I wouldn’t be surprised if you’ll feel better, too.

In cased you missed it, here are the first five questions.
 
Dear CEO,

6) We are not going to refer to this as “the soft stuff” anymore. Devaluing the human dimension compared to the technical dimension of business is not helping us adapt more quickly. We will learn to measure and understand the direct business benefits of our transformation efforts across all three dimensions of success: i) the task, ii) the team, iii) the self. We will overdeliver on all three dimensions.

Regardless of the outside help we get, we can’t “outsource” this work. We have to do this ourselves. We have to become transformation exemplars, and that will require us to integrate the human and technical dimensions of business. We will work on designing and capturing tangible ROI from the beginning. The experts I am bringing in will teach us how to do that in a practical way that matters to us. At the same time, we can also illustrate tangible value by comparing the culture/leadership investment to the cost of NOT shifting (e.g., employee turnover, inability to attract star employees, stalled customer focus improvements, stalled innovation, slower implementation times, lack of agility).
 

7) Expect a significant transition during year 2 and year 3. Companies like ours that are successful shifting culture do not usually say, “we got it” during year 1. This is not an HR project; this is a business prototype, which will give us a chance to “really learn by doing.”

The experts I’m bringing in will take us through a series of 90-day sprints that will help us “learn by doing.” These prototypes will help us learn what helps us deliver better results in the context of working on the business, not in theory. They have seen and lived through all kinds of scenarios facing other peer executives in situations like ours. They heard me admit and ask the same textbook questions while giving me the objective, outside, cold-water-wake-up-call answers that we need to hear…

  • We’re stuck. How do we break free from the inertia of learned helplessness and tyranny of low expectations to get to the next level? Clarify the culture standards (and learning gaps) that we have between our current level and our desired level, then clarify how committed we are to get to the next level (and why). What’s at stake for you? me? our team? the organization?
  • How do we avoid the early-on potential for unskilled false starts (e.g., too big or too fluffy) or snapping back to homeostasis/current level? We won’t get tricked into shortcuts and we won’t “bolt this on.” Connect the development work directly to high priority business imperatives — that’s the best reason to train. We won’t treat this like a communication project; it’s a business prototype.
  • How do we accelerate the process? We will stop delaying it, and we will go deeper faster. We will let the leaders and teams also “learn by doing” with high-impact, real-world, 90-day sprints where we can experiment to see what works here (what we’re ready for).
  • How do we extend and keep the flame going? Let’s stop asking that “cascading” question right now. We’re not sure that we’re willing to do what’s necessary to even “pack the snowball tight” with the senior executives and focused experiments. Let’s focus on that first. If that sticks, then we’ll start building peer learning communities as well as formal/informal communities of practice where we all will learn while doing — we train together while delivering business imperatives.

 

8) Expect to pay attention to things you haven’t paid attention to before.

  • We are going to be doing something that most leaders have not been invited to do before…to courageously observe our own leadership style/techniques, the impact it’s having on delaying the organizational performance/shifts, and then optimize them according to what we say matters most to us.
  • We are going to start with the initiation phase of a vertical learning adult development program, where we will become more objectively aware of our current level and next level gaps…and we will see more clearly than ever before.We will be even more committed than ever to the possibilities that come with our next level goals. We all deserve to get to the next level!
  • It will take deliberate, focused practice to shift these specific organizational capabilities from unconsciously incompetent to consciously competent, and to deliver consistently on the high-performance attributes we have chosen. Some individuals will go faster than others, and some microcultures will influence others faster. Meanwhile, our brain’s biases, our history and our system inertia are working against us more than working with us to support the change. However, once we build our transformation muscles, we will have more wind at our back…exponential business benefits and odds of success for 202X and beyond.

9) I need you to ask for more help.

Not because you are weak but because you are strong — because you have all the power. When it comes to preparing yourself to be an exemplar transformation mentor/leader, you need to ask for more help so everyone will see that being a learner, “asking for help,” and being transformed ourselves is something we value at the highest levels of the organization. Saying “I don’t know how to do this” and asking for help is not a sign of weakness around here anymore. From now on, we win by learning.

You (we) should be asking for more feedback and more guidance on how other companies make this shift — on how to best mentor the executive team through this beyond stepping up as a public player in workshops. The majority of adult development/learning doesn’t happen in the workshop; it will happen in the learning experiences we share with each other during the course of running the business. And it will come from the social influence that we contribute in every meeting, every agenda and every interaction that we have within the leadership team.
 

10) We are going to lead the way.

 
 
 
 


Based on several true stories inside of multinational organizations:
When the chief human resources officer (CHRO) or any C-suite executive finally refuses to be a complicit bystander and commits to leading the business (like a real business leader)…here are 5 ways to start the conversation:
Dear CEO,

1) We have a serious problem …a culture problem.


We are witnessing a historic shift in what’s expected of us when it comes to understanding and evolving our company’s culture. We can’t deny or minimize the negative impact that our executive leadership is having on our culture any longer. The crisis of unconscious leaders is all around us, AND it is clearly a disadvantage for our business performance. This is a new era with new rules. We need to let go of some of the old success formulas…not all of them…just some. We are up to this challenge. We are going to shift the culture and expand the future-focused capabilities that we need (e.g., alignment, collaboration, curiosity, innovation, agility) so that we can not only stay relevant and competitive in the future but so that we can win. I (CHRO) am going to help you lead the way through this. I will need you to trust me. We will do this together.
 

2) Our industry, our history and our future are at odds.

It’s time for us to reactivate some of our originating startup/adaptive DNA and take our enterprise transformation seriously if we expect to win in the future.
Yes, we’re already rich, we have plenty of reserves, and we’ll probably stay afloat beyond your retirement…but we’re just floating right now. We’re not moving forward. We’re stuck. That’s not the kind of legacy we want to leave here after all this time, after all our hard work. The business case for change is undeniable, and yet we keep putting our head back in the sand, hiding in our offices, telling our employees and each other, “we got this.” But we’re just floating — and floating is insufficient. Just “getting by” is creating a long-term disadvantage for us, and it’s creating a ridiculous amount of unnecessary suffering right now.
“Just floating” is not going to be your legacy. And it’s not going to be mine either.This is not going to be fixed by having a two-day workshop or retreat. There is no shortcut. We need to shift some of our default thinking patterns/habits and close the gap on some key organizational attributes/behaviors that can make us more agile, collaborative and innovative. To be a legitimate competitor, we need to perform these attributes consistently at a professional, world-class level. This is not amateur hour or a time for dabbling/hacking away at this like it was a hobby to pick up over a weekend seminar. We have to evolve rapidly. We have to transform. We’ve been talking about this for years. If it were easy for us, we would have already been doing it. We’re stuck. We clearly all have a lot to learn. We need to adjust the way we think, relate, make decisions and take action. It’s never too early (and hopefully not too late) to ready our teams and ourselves for the future.

3) Our employees are losing faith…

So we have to act decisively. You saw what they wrote in the annual engagement survey. The research firm quantified just how much they are losing faith. You read the verbatims. You were upset by the quantity and toxicity of verbatims. You asked me:

“Who does that? Who writes that kind of terrible stuff, knowing that their bosses are going to be reading it?” Seriously, who does that? The “un-led” do that. (JL)
We can lead better. The people in our organization are telling us that we have a problem, and they want us to create a more constructive work environment.

  • They basically called BS on our leadership team’s ability to deliver on a majority of our company core values (e.g., teamwork, innovation, courage, respect, trust, creativity, integrity). They notice the incongruence. THAT IS A STRONG SIGNAL FOR US.
  • They said they have 20 percent less confidence in our business potential over the next two to three years compared to their confidence a year ago. THAT IS A STRONG SIGNAL FOR US.
  • They said they are 25 percent less engaged than a year ago across all business units. THAT IS A STRONG SIGNAL FOR US.

None of this will fix itself. We MUST ready ourselves to respond more effectively by leading a sustainable, strategic culture shift.
 

4) Our leadership team is not yet equipped to respond/lead a transformation like this alone. We don’t know how to do this effectively yet (and pretending to know is only making things worse). 

By our own words, we are at an inflection point that our default thinking patterns, behaviors and leadership muscles are NOT prepared for and need to change in order to achieve our three- to five-year plan success/goals — LET ALONE THIS YEAR’S STRETCH GOALS. We can do this, and I am going to lead this. We’re not transformation experts yet, so I’m going to get you and our entire leadership team the expert support, learning and development we all need to feel strong leading the way.
We will focus on consistency over intensity. We’re going to play the long game — no culture “change theater” or quick fixes. We will lead the way, with humility and empathy — not by knowing but by BECOMING LEARNING EXEMPLARS, showing that we value learning more than saving face. We are not yet personally connected to the kind of transformation that we are asking of our people, but we will be. This journey will be one of the greatest achievements of our career. We can do this.
 

5) To ready the organization for change  we should expect to invest in both expanding leadership capabilities and building internal capacity. 

We need to work on our inner game (transforming our mindsets) and our outer game (the way we execute the business). Our internal team of leaders will be fully involved and take on this initiative in a way that integrates with all of our existing work. Our leaders will be doing the majority of the training and development of middle manager cohorts — once we get a couple of cycles under our belt and I am confident that we can skillfully marry executive mentors and the extended leader/team cohorts into effective, sustainable programs that simultaneously support specific business priorities. For the transformation and readiness part, we will need to partner with an expert firm for the high-leverage areas that require their expertise, and we will need to be focused on the C-suite leadership development and culture change readiness (mentoring and coaching) work as well as ensuring high quality, internal capacity building.





To successfully achieve next level results/culture shift that we say we want, to maintain momentum and to build internal capacity to sustain it, I would expect us to work with expert resources/interventionists over the next three-year time frame while we build internal competency. It will more likely be front-loaded than equally spread out across those three years. It doesn’t have to be incremental learning and development dollars; we can reallocate some of our other important learning and development budget for this essential work.
Here are five more questions to engage the CEO.
 

In an ever-connected world, it’s very easy for an organization’s faux pas to be blasted all over the internet. Just look at the recent Starbucks incident.
Two black men, while waiting for a friend to order, were arrested in Philadelphia because they tried to use the restroom without first ordering anything.
In just a few hours, the arrest turned into a gigantic problem, affecting the company’s reputation. As in many other similar cases, the incident was disclosed by a customer who was at the coffee shop and captured with his/her mobile phone how police officers talked to two black men sitting at a table, handcuffed them and escorted them out, while other customers were explaining to them that the two men were not doing anything wrong. Impact on the media was immediate at a worldwide level, and millions of people wondered if this situation would have occurred with two white men. This is a textbook example of how an employee’s incorrect action, inflated by social media, can turn into a major complication for any global organization since it reveals the vulnerability thereof.
Starbucks’ CEO promptly reacted, regretting the occurrence and said, “The video is very hard to watch and does not represent the values nor the mission of our brand.“ Furthermore, he asked to meet with the two men who were arrested and decided to close 8,000 U.S. stores for half a day on May 29. The purpose of this meeting was to create more awareness around unconscious bias.
The employees were not living Starbucks’ values as stated on their website, which includes phrases such as: “We are committed to upholding a culture where diversity is valued and respected. So it’s only natural that as a guiding principle, diversity is integral to everything we do.” And so training was needed.
Are those values stated real or just a marketing strategy? Closing the stores for one afternoon is not enough to achieve any sustainable cultural change.
A strong and healthy culture is part of the value of the company because it helps to develop a competitive advantage difficult to imitate. Such transformation can only be achieved by defining and developing behaviors, systems and symbols aligned with the publicly stated goals and values, lowering the occurrences of unethical behaviors, including abuse, theft and fraud.
There is an increasing number of customers and shareholders who prefer to do business with organizations that apply sustainable and conscious policies, providing them with a higher public value than that of organizations that do not apply them.
In these uncertain, complex and connected times, the organizations’ priority is to consistently align their business or strategy with sustainable behavior and leadership. The cost of not doing so is the reputation, trustworthiness and perceived value of the brand, even before the loss of income.
Think about Volkswagen, United Airlines and Well Fargo that went before them, and many more will follow.

Make sure your innovation initiative is connected to your culture.

If you are investing heavily in building innovation competencies and investing in rapid adaptation, it is usually because of one of two reasons:

  • You are behind the curve in a slow growth industry or have a slow growth position in the market and you need to quickly catch up and adapt.
  • Or you are in a high velocity, high growth organization, trying to maintain agility, momentum and speed with which you adapt and lead the market.

In both of these situations, IF you are investing in innovation to support your mission and fulfill your “next level” business strategy, THEN you will want to protect that investment and drive a satisfactory return on innovation.
Both scenarios require rapid adaptation to changing circumstances. Most leaders only become aware of their culture when they have to adapt to something (as Edgar Schein would say) — otherwise, it’s just there.
Innovation is all about adapting (and improving on the current level foundation), so you will run into major culture challenges, depending on how much of your current culture is constructive. A constructive culture will allow the organization to proactively adapt and excel in a changing marketplace (versus just survive).

Measure your culture baseline so that you can measure improvement.

You do not need an assessment to confirm that you are not innovative. You need useful data to help you better understand why and how your business culture (and/or your business climate) is helping or holding you back. Culture and climate are always doing both — it’s always BOTH.
You need the outcome of the assessment to help provide a common language and valid measurement along with visibility into how culture dynamics show up differently across teams, groups and locations. It is most effective when you combine group or team efforts with a validated, reliable culture model so the team has visibility into the specifics (beyond anecdotal) to be more actionable and useful for the culture.
Culture is built and changed through shared learning and mutual experience. The assessment outcome is used (on day one) to engage the organization in shared learning as it relates to the connection between culture and business performance.
It doesn’t necessarily need to be a survey, but you need some kind of a proven model that connects the dots, similarly to the one behind the strategic culture survey (i.e., OCI/OEI circumplex), that can help give you a stronger, more accurate understanding, dimensionalization and distinction of culture so you can intervene differently than you ever have before.
All the other surveys you’re doing (e.g., engagement surveys, morale) will only provide a limited “connecting-the-dots” benefit and therefore only deliver marginal culture improvement opportunities.

An innovative culture is the new minimum standard for performance improvement.

Innovation is necessary to break through internal culture and external market challenges that may exist. The more that innovation is a natural part of a culture, the more effective an organization will be at maintaining or improving performance in a changing marketplace.
Culture doesn’t just “eat strategy for lunch” — culture eats EVERYTHING.
Culture is the unique and sustainable driver of performance. We want our culture to become more innovative (e.g., entrepreneurial, adaptive, agile, collaborative, creative) so that we can deal with all the demands of a changing marketplace.
Your culture is always helping and holding back performance in unique ways — always.

Approach innovation like a journey, not a project.

It’s a learning journey as the organization evolves norms or “unwritten rules” that are part of the culture and modifies aspects of the work climate (systems, structures, leadership approaches, etc.) to support the change.
The journey should be a series of phases or business prototypes. The organization is focused on one or more specific outcomes that innovation will help deliver. It might be growth, improved customer experience or another top priority.
We assess the work culture and climate to understand how they will help us achieve the outcome we need and how they will hold back results or progress.
We capture “key learnings” from the assessment as an input to revising or refining our innovation strategies for a specific priority so that we dramatically increase the likelihood of success.
Part of the planning is engaging the rest of the organization in new ways to accelerate results in the priority area. A huge amount of discipline and consistency is needed, but it nearly always results in accelerated performance in the targeted area.
We then capture what we learned from the initial phase of improvement as an input to the next phase, which may be all about the same performance priority or a different one. This continued learning process is part of the journey and helps accelerate innovation and effectiveness with each phase.
We also combine this “on-the-job,” improved engagement and execution approach (or business prototype) with the development of people (individually and collectively), starting with top leadership. Leadership needs and wants to understand how they may be unintentionally reinforcing the current state.
We refer to this as the “double helix” approach for culture. We support the organization with intertwining, simultaneous prototyping across these two fronts:

  • One strand of the helix is driving shared learning and tangible results (leading indicators) from the business priority (execution).
  • The other strand is the development (transformation) of leaders and managers.

Both are needed for effective culture change, sustainable innovation and performance improvement.

If culture change is hard for you, then you’re doing it wrong.

Start smart; don’t “just start.”
It’s easier to get started when you have accurately diagnosed the culture gap and can align around an actionable “FROM – TO” case for change.
Start small; don’t “go big.”
The reality is that an organization does not need to understand the entire journey to get started. The initial work to define the purpose and need for improved innovation can be combined with some thorough assessment and planning work and completed in 90 days or less.
Start quick; don’t “slow your roll.”
It’s ideal to combine that “quick-start” approach with a leadership development plan so that personal transformation is combined with the innovation and organization transformation, as we discussed in the “double helix” analogy. You should expect to see meaningful and measurable results in six months or less, but the sustainable culture change obviously takes longer.
Start strong; don’t “go it alone.”
Contact us for a discussion about your unique innovation and culture. Every journey is different, but the principles to connect culture, innovation and performance are the same. This is a specialized domain with effective, emerging best practices that all executives need help with. Your responsibility is to ask for the right help. Innovation and change are easier when you and your team learn how to minimize the unnecessary suffering and permanent damage (that result from doing it wrong). You won’t figure this out on your own until it is too late. Don’t choose to learn this the hard way.

 
This article was produced in collaboration with Tim Kuppler from Human Synergistics.

There are many ways to change a culture in an organization, but the actual transformation comes from its people doing something different, adopting new behaviors, changing the way they have conversations and how they interact with each other.

In order to change something, we need to understand how it’s created, shaped and influenced. There are three influencers that drive culture: behaviors, systems and symbols.

 
Behaviors
“What you do speaks so loud that I cannot hear what you say.”
— Ralph Waldo Emerson
Most organizations have values and a mission posted on their website. They are presented to the organization in a beautiful way. However, those become obsolete if the leaders and key influencers do not role model those values. People in the organization will copy the behaviors of their leaders in order to be like them and create a sense of belonging, with the belief that the display of those behaviors will help them fit in and be successful. We learn this by looking around, mainly toward our leaders. What behaviors helped elevate them to the top? All become symbols, which we will discuss later. By themselves, behaviors are one of the most powerful tools leaders have to design and change the culture. If leaders and the key influencers can change their own behaviors by living more aligned to the values declared, people would get it faster.
If you notice as a leader that people are not displaying the behavior you would like to see in the organization, you need to first look at yourself and ask: “What am I doing (and my colleagues) that might cause others to believe it is the right behavior?” The interesting thing is, we are all leaders or an example to someone else in the organization. So in the end, we can all do something about it. I know, I know…you might be wondering why it all goes back to you. Remember the Player mindset: “If it affects you, it’s your problem.” The question is: How can you respond to the challenge?
Do you recall the secret change agents from the previous article? Understanding how behaviors influence the culture is a great way to create change.
How can you role model the behavior you would like to see in the organization?
 
Systems
These are related to all the processes you have in place in your organization. Some might be based on historical decisions and others might be more recent or born out of necessity. How is success in the organization measured, and how is it reported? What HR processes are in place, how is compensation defined, and what is the bonus scheme based on? How is budget allocated? These are all examples of systems at play. Systems are deeply ingrained in an organization and can be difficult to change. The question to change culture toward the behaviors you need should never be about the systems you currently have, but rather about the systems you will need two to three years from now. You need to stand in the future. Once you are there, look back to define the plan to get there.
Where do you see an opportunity for a systemic change in your organization to create the culture you need? If you had a magic wand:

  • How would people be rewarded?
  • What would the process be for allocating budgets?
  • How would decisions be made?
  • Is there any other system that is critical in your organization?

 
Symbols
This is the most visible and recognizable. When you walk into an office building, you can get a first sense of the culture by observing people at work, how things are organized, who is where, what you see on the walls, parking lot allocations, office spaces and how people talk to each other.
Other meaningful symbols include the way a budget is allocated, how time is invested, who is promoted and who is not, and how accomplishments are celebrated. Are they individuals or teams? What values and what results are taken into account? Does any of this sound familiar?
One of the more relevant symbols is the story or stories being shared. Like any other community (from our tribal ancestors to our current days), we often share stories about how things were created and who succeeded (even creating myths). We share stories that are funny and stories about failure. We share learnings, and many times we talk about cases and people. We create symbols, ideas, myths and a future based on history. One of the most powerful assets for culture change might be which stories are being shared in the organization. When linked with behavioral change and new systems, everything comes together, making sense to people in a faster, more effective way.
What are some of the symbols in your organization? How can this be changed toward the culture you need?
What are the main stories being told? How is this conducive to the culture you want? Which stories can start being told?
In working with a large tech company, we discovered how the behaviors, systems and symbols could be quite a force at play in an organization. One of the main goals for the year was to align the company with a new set of values and create a “one company.” We looked at all the different behaviors that would be needed or changed to align with what “one company” would look like. Increased collaboration, openness, listening and sharing are all characteristics of new behaviors. However, employees found it difficult to change, and we were curious what might be getting in the way.
The organization was heavily matrixed. Employees had multiple reporting relationships. One manager would be really good at role modeling the new behaviors, while another would revert back to his/her “old, more hierarchical” ways. A second layer was that the compensation and bonus plan was entirely based on individual performance, which created a conflict of interest. On the one hand, there was an ask for collaboration and sharing, but this would possibly put someone’s bonus at risk because sharing or collaboration might not yield the same results. Why take such a risk?
Lastly, there were some heavy restrictions on the type of computers and phones that an employee could use; yet at the same time, a lot of the leaders would have the “forbidden” equipment, which made it all very confusing.
From this example, it’s easy to see how behaviors, systems and symbols could have a significant impact on the culture of an organization — and how we need to link the three and work on all of them to create an effective culture change.
Once leaders see what we explained until now, they say, “We need a culture project!” This is something you might say in your mind. And yes, there are a lot of things you can do to influence the culture, but culture change is not just a project.
This is another strong belief or myth.
Just as the Greeks, Egyptians and Romans went before us, so did the culture of your organization. The culture was already there when you arrived, and it will continue long after you leave.
Culture is a never-ending process of defining and redefining who you are as an organization — and finding new ways to bring this alive in new contexts, with new people, addressing different challenges. You are always designing the culture, and you can do a significant amount of change in a short period of time. You might call it a project if you want to “shock” the systems to address big challenges and to get specific budget and focus. However, culture — as a concept and as a whole — will continue to evolve. It will need to be taken care of beyond your timeframe, and there will not be a day where you say, “We did it!”

Now that we have busted the belief that you need everyone on board in order to start a culture transformation process, we will add an additional layer to that belief — the belief or myth that you need to start such a process at the top, with the most senior leaders, the CEO or the Executive Committee.
But do you really need them to start?
Of course, it is an ideal scenario to have the top leadership of your organization leading the culture transformation efforts — the leaders who are role-modeling the behaviors of the desired culture and are fully engaged in the process. In our experience helping global companies with culture transformation, this only happen in about half of the cases.
Remember the story in the previous article about the large manufacturing organization and how we engaged with a single team at the time. Other teams took notice and engaged with the HR team to set the teams up with their own leadership development programs, and slowly the culture change in the organization began to grow more and more obvious. After four years of working with different teams, business units and leaders, the CEO started to take notice. The overall performance of the organization kept improving, and he realized the new organizational culture was the driver for this. The organization’s board, including the CEO, is now embarking on their own leadership development journey to take the culture transformation to another level. This program will cascade to other leaders in the organization who have not yet participated. The HR team never lost sight of their ultimate desire to change the culture, but they focused their energy on those willing to engage, eventually impacting the 56,000+ employees.
Instead of focusing on who is not on board (e.g., your CEO), how can you focus on who is? Just like the innovators and early adopters, can you find a leader or a team that has the energy, engagement and appetite to start something new? The more you focus on who is on board instead of focusing on who is not, the more likely you will see those who are, and there are more than you had imaged. You just didn’t see them.
Just think about when you had set the intention of buying a new car, for example. All of a sudden, you are much more conscious about the cars around you — the colors, the ones you want, the ones you don’t like, the model, the make. You see those same cars every day on your commute, but when you actually put your focus on them, you are more aware or conscious of them.

As we referred to in our first article, culture is everywhere, just like the air we breathe. The problem is that we forgot.
The second layer to this is that we often hear that people need to “start” working on the culture. However, the culture has always been there and is continuously influenced by everyone — the way people behave, lead and manage; what leaders do (not what they say); how an organization compensates their employees; internal communications; who gets promoted; its values on the website versus what it has really done every day; the external marketing; and every single thing that lets people know “what’s valued around here.” This is all part of the culture. Culture is like a live organism; it is always evolving, moving and shifting. Whether you choose it or not, it’s there.
The question then becomes, are you going to let the culture drive you, or do you want to drive the culture and have it be more aligned with your business needs and emerging challenges?
To engage on a culture transformation journey, you will need to identify and assess the current culture. It is very important to understand where you are.

  • Did a new CEO, with a new vision and direction, join?
  • Is your CEO leaving and would like to leave a legacy?
  • Is the market steering you in a new direction?
  • Is the company growing so rapidly that it’s hard to keep up?

The answers will be unique for each organization and its leaders. What is critical is to understand what’s driving the change. Why are you embarking on this journey? Why do people need to be part of this? Having a case for change is a very important first step. The second one is to understand who is ready to understand it.
Once you have identified these points, the next step is to identify your key sponsors and champions who can connect with the need. We hear it over and over again — the belief or myth — that you need to have everyone on board to start the initiative. However, it is exactly that — a belief or myth — and it gets in the way of making change happen.
In his book “The Tipping Point,” Malcolm Gladwell talks about The Law of the Few. In order to create sustainable change, you need to look for the connectors, mavens and salesmen — or as Everett Rogers developed his theory on “Diffusion of Innovations,” illustrated in the bell curve below.
Both authors describe that you do not need to have everyone on board. You need to look for the innovators and early adopters in your organization. Who can you work with to start the change?
As an example of how this works, I remember when we started working with a large manufacturing organization through the HR department. The team was really eager to start working on their culture. The main concern was that not everyone in the organization was ready to engage or even talk about culture change. Together, we identified a group of middle managers who were eager to change and develop new skills and who, at the same time, had a relevant influence in the business. We co-created a specific leadership development program for them. This group became the innovators and helped us connect with the early adopters. Through their leadership journey, they learned new mindsets, skills and behaviors. And as they implemented those new skills in their way of leading their departments and teams, it influenced the culture. Others in the organization noticed how the innovators and early adopters became more effective in their jobs, were more agile in their decision-making, and their overall performance improved, and they wanted the same.

Let’s start by talking about culture and what it means.
Every day, we breathe in order to survive. The air goes in and out of our lungs. We know the air is there, but we never think about it. The air allows us to do everything we do; and at the same time, we don’t even notice it. That’s the same with culture. Culture enables an organization to function. But as the air we breathe, it becomes invisible, and we forget how it affects everything we do.
We define culture as the messages, mostly nonverbal, that people in an organization receive about what is valued. Then people adapt in order to “fit in” (i.e., belong).
How is culture created? As an example, I’d like to refer you to the book “An Italian Education” by Tim Parks. It describes the life of a British expat family in Italy. The parents are starting to notice their children becoming more and more “Italian.” Initially, they are puzzled as to where they are picking it up. So then they tried to understand it: classmates at school, the neighbors, the media, and religion, among other things. In order to fit in, the children started to unconsciously embed some of the behaviors of the influencers that surround them, based on what works for them. Can you think about how all this is at play in any organization?
Think back for a moment to the first day you arrived at the company for which you now work. What did you notice? The way people talk, relate to each other, make decisions? What about the general communications? And the office look and feel? And what the boss does to be successful? And who gets promoted?
Understanding how culture is created and how it influences employees can become a lever as you work on culture change in your organization.
In recent years, culture has become a hot topic. You hear people talk about it often. Most organizations are involved in some kind of culture initiative. This is because we are getting more and more conscious about how important it is to get new strategies to work, to adapt to the new fast changing world, to be aware of the behaviors we are driving, by the context and environment we have created so far and for the strategies that worked in the past to be successful. There is much more consciousness about how the conditions, the environment, the incentives, the values and messages people receive are creating meaning for people to do what they do. The sense of alignment with a common purpose and way of working can become a competitive advantage. If the world is changing and our organizational strategies are changing, then our culture needs to shift to serve this new world of possibilities. We need to recreate the conditions for people to flourish and flow, making sense to a new world.
At the same time, the more and more we talk with people in organizations, in HR, Senior Leaders or CEOs, they all feel it’s hard to make all this change happen at the speed they expect. Many times it looks more like a burden than a great opportunity. How can we make culture change simpler? How can we make it happen?
In this series of articles, we will look at five beliefs (stories we tell ourselves as if they were absolutely true) that may even become myths. When it comes to culture change, the myths make it harder and may even impact the way we approach culture change and the tools we use for it. Are you ready to do some myth busting?
Not so fast. Going over the speed limit while trying to change the culture will cause chaos.
Before we dive into the myths, there are some things to consider.
Nobody is a culture expert on day one. Most of us have taken a biology class in school and can name a decent amount of body parts, organs, etc. However, this doesn’t make us capable of performing surgery. Surgery requires a different skill level. The same applies to culture. We have some knowledge, but we are not anywhere near expert level. In our experience, this is something that is being overestimated. An organization will assign someone, often from HR, as the person in charge of culture change. Having the title does not make them an expert, but you can be an expert in the future, by knowing a bit more every day. Can you imagine how much more you can know in one year if you consider everything to be opportunity to learn more about culture?
You can start by acknowledging that you don’t need to know it all on day one. This is hard because in big organizations, people are expected to know. Actually, this is the first step for the change you would like to drive. The danger is when you pretend you know but you don’t. So we suggest, that you just stop pretending!
Start seeking the expertise. Think about what information you need to learn in order to be capable of delivering on this great assignment.
Don’t decide to focus on everything all at once. You can’t eat ice cream in one big bite (brain freeze anyone?), nor can you with culture. It might be overwhelming when you are in the middle of it, like standing in a crowd of people. Imagine what it would be like if you look out of the airplane window, when you are 30,000 feet off the ground, and you see the different landscapes of cities and suburbs. Start by looking at the bigger picture before you zoom in. Where do you want to focus your attention? I like to use the metaphor of the flashlight. If culture is a big, dark room, you can flip the switch and light up the entire room, but that becomes quickly overwhelming. If you take your flashlight, you can focus on a specific item or task without being distracted. But for that, you first need to see the big room; and then the opportunities will come. Because, what you focus on expands.
A new process doesn’t change a culture. Processes help and are an integral part of culture change. But to create real and sustainable change, there is another layer.

Remember William Hung (aka Hung Hing Cheong), the now world-famous American Idol singer of Ricky Martin’s hit song “She Bangs”? We love William. Over a decade and a half ago (early 2004), he entertained us all with his charisma (he says) and with his unconscious example of the Dunning-Kruger effect (others say).
The Dunning-Kruger effect is “a cognitive bias in which low-ability individuals suffer from illusory superiority, mistakenly assessing their ability as much higher than it really is” — Wikipedia. Psychologists Dunning and Kruger say that “the miscalibration of the incompetent stems from an error about the self.” They write that for a given skill, unconsciously incompetent people will:

  • fail to recognize their own lack of skill
  • fail to recognize the extent of their inadequacy
  • recognize and acknowledge their own lack of skill only AFTER they are exposed to training for that skill

UNCONSCIOUSLY INCOMPETENT TO CONSCIOUSLY COMPETENT
William Hung’s (and many other Idol’s) example of unconscious incompetence on live TV in front of millions of people satisfies at least one of the primary premises of the show. It lets the audience feel superior and relieved (for the moment) that at least we’re not THAT clueless about our own talents and abilities — as far as we know anyway. However, the Dunning-Kruger effect (aka the American Idol effect), like most cognitive biases, is a condition that we ALL can suffer from in our professions as well. Thankfully, we can all overcome it too, with a deliberate approach to training, rewiring default/reactive habits, surrounding ourselves with reliable feedback loops, increased mental complexity, increased levels of emotional intelligence and expanded curiosity muscles. (Note: The best way to develop curiosity muscles is by first working on the humility muscles.)

We are often unconsciously unaware of our own incompetence, in fact, that David Dunning goes on to say in the “You Are Not So Smart” podcast that “of all the irony of the things we don’t know, the one thing we definitely don’t know is where the borderline is between our knowledge and our ignorance.” That, he says, applies to everything including our decision-making in everyday life, not to mention the highly valued business decision-making arena of our professional life. It applies to our role as leaders of our family, our community and our company.
This psychological insight illuminates one reason why so many executives have heard themselves (including myself) say that innovation is hard. Maybe we say that because we don’t want to take responsibility or blame. Maybe it’s because we like to self-congratulate and brag about ourselves for doing the hard things that others won’t. Maybe we’ve bought into the party line. Either way though, innovation (change) is not hard or easy. It just is what it is. “Hard” or “easy” is not an attribute of innovation or change but merely a relative comparison of two things: 1) the challenge and 2) our ability/inability to respond to the challenge effectively.
Whether the challenge is to sing a hit song on the American Idol stage, squat 300 pounds or respond to changing market conditions in my industry, there are two ways to approach it: I can say, “singing at a world-class level is hard,” ignoring my own competence/ability/skill level, or I can say, “singing at an elite level is hard for me. My vocal skills/muscles aren’t skilled/strong enough to sing at that level yet.” But we don’t say that. We say it’s too hard to do. “HARD” is only relative to our ability to respond to the challenge of singing the song (on key), lifting the weight or accomplishing the innovation goal. If our muscles aren’t ready for the innovation challenge, then the challenge/change is harder for us. But that same challenge is NOT hard for many other leaders. Change (innovation) is not hard for teams and leaders who operate from higher levels of consciousness — less subject to pitfalls of outdated thinking patterns. Conscious leaders make better innovation leaders. Their cognitive muscles, mental models, mindsets, relationship/teaming productivity and fear/stress management skills are developed/trained and ready to respond effectively to VUCA (i.e., volatility, uncertainty, complexity, ambiguity). But you can’t work on it if you don’t even notice it.
NOTICING THE GAP IS A GOOD THING
We likely don’t even realize that we are blaming innovation/change for our own lack of ability to respond effectively to changes in our business environment and market conditions. Years of neglecting the change-readiness individual and collective leadership development work are a root cause that explains the leadership complexity gap. That’s why we are unconscious and unaware — we don’t know we are. If we don’t notice it, we can’t work on it. Conversely, if we do notice it, then we can choose whether or not to work on it. Either way, it’s better than falling victim to the Dunning-Kruger effect.

We can’t just try harder. That doesn’t work. Trying harder is not the same as deliberately training our innovation/change muscles to be able to respond better.

Experienced innovation leaders and conscious business Jedi (like Oseas Ramirez Assad, co-founder of Startup // Cisco) inside of David’s (startups) and Goliath’s (large corporations) will agree that innovation/change is easier when you:

REactivating your company’s startup DNA will require you to face entrenched cultural norms, fear of change, career risk and other obstacles that will require you to be working from well beyond your current level. You will need to be working from your “next level” of thinking — more open and more grounded as a conscious leader. This grounding is the platform to recognize old/new paradigms (yours and others), to be less blissfully ignorant, to engage in difficult conversations/healthy debates, to untangle explicit agenda versus hidden/unconscious competing commitments, their feelings versus emotional triggers, etc. Getting to our next level of Jedi thinking and behaving takes practice.

  • Even the biggest companies were startups once
  • Design a grass roots effort and apply startup innovation best practices that are right for your company (e.g., lean startup, BMC, design thinking, service design)


Focus on training mindsets, biases and core values (to help amplify the new growth strategy and fulfill the company purpose). This is an essential part of an innovation-centric lifestyle. Innovation can only be driven by a conscious leader who embodies the right mindsets, is aware of his/her own biases, and actively works to defuse them. Otherwise, people will immediately spot the incongruousness and slew of organizational contradictions. This will speak louder than the mindset itself.

  • Build a strong cultural foundation of expanded capabilities that help increase conscious awareness, broaden cognitive diversity, and deepen mental complexity and emotional intelligence
  • Apply startup constraints and bend/ignore rules as long as it’s clearly aligned with shared goals and core values


Target corporate antibodies (e.g., the fear of failure). You will have to earn the right to influence the corporate system. Even if you have the hierarchical authority, you will need moral and social authority (e.g., trust, respect, confidence) for the community of people to want to follow you. You could try and force them to follow you via command and control techniques, but compliance does not generate the same energy or integrity as inviting voluntary commitment.
The moral/social authority that is earned by being a more conscious leader will always be surprisingly more powerful and sustainable.

  • Address the organizational contradictions, competing initiatives, undiscussables and cultural/social norms (policies) designed to preserve/protect the status quo
  • Don’t just train alone; train together (cross-functionally) in a way that builds relationships and engagement across the enterprise (breaking down silos)


CONSCIOUS LEADERS MAKE BETTER INNOVATION LEADERS
They consistently deliver better results to the organization — it is as straightforward as that — for the sake of better business outcomes. The current leadership complexity gap clearly suggests that innovation leadership and transformation is a learned capability — a muscle group that has to be developed/trained for the gap to be closed.
The only way for our businesses to be more conscious is for our leaders to be more awake/self-aware. We need more men and women working from higher levels of consciousness — especially those who are responsible for implementing innovation strategies and those pursuing a new master plan of any kind.
The goal is to help leaders of organizations see more, plus collaborate better, plus feel stronger, becoming more agile in the face of uncertainty and fear. “Getting in the reps” of deliberate practice is what helps leaders more quickly and more effectively get to the complex problem-solving.
We need to pursue mastery of the fundamentals of conscious business. This practical approach helps leaders respond more resourcefully under stress, and it upgrades their operating systems with the intent of shifting to a culture with higher standards of performance, relationships and purpose.
Then again, we could be wrong. What if William Hung can sing really well…and we are the ones who are all tone deaf?