For most executives we know, embarking on a transformation journey at the helm of an organization is thrilling. It’s nothing short of an adrenaline rush, like the climbing expedition we’ve been comparing it to over the last few weeks. However, journeys come to an end, and life -as well as business- goes on. Business as usual, they say. At the foot of the mountain, the heroes of the hike blend with ordinary folks and continue onward. That part of the story typically gets left out of the books because… who wants to hear about the ‘normal’? We revive that story here, in the final article of the series, The Next Normal of a New CEO.
In the first article, we laid out a roadmap for the first 100 days of a CEO and the ‘new’ leadership team that results from that appointment (from A to B in the illustration above). We continued with a second article where we explained the focus of the team’s next 100 days in its safe descent back to base camp (from B to C). We finish the series with the ‘next normal’ of this team (‘new normal’ sounds too definitive for a VUCA world).
The Next Normal of a New CEOBeginnings, or new beginnings, are exciting. They create momentum, but it’s a hard job to keep the flame alive. If the leadership team does an excellent job with the four D’s mentioned in article two, there’s a higher chance that the flame will last longer. However, they will need a sustainable fuel source for that flame because eventually, it will die out. No matter how well-intended the leaders are, their behaviors are not enough to consolidate an evolving or transforming culture. Culture needs to be hinged on systems to endure.
 

Systems and Symbols

What are systems? For us, systems are to the organization what behaviors are to individuals. They are the workflows, procedures, policies, practices (you name it) that shape collective actions. As such, they can be powerful symbols of what the company values, regardless of the words on their posters.
An example of the power of systems and symbols is how top leadership deals with ‘airtime’. What they spend time on, or whom they spend time with, sends a loud message to the organization. Take one of our clients. They decided to end their hierarchical, command-and-control leadership style because their business strategy called for swifter moves that they believed would happen with more autonomous, empowered, and customer-centric teams.
Their leadership manifesto called for them to be ‘servant leaders’. Some took on the challenge of transforming their mindsets and behaviors to become that type of leader. However, their meeting protocols remained unchanged. Front-line employees were still called to provide status updates to top leadership, which meant taking an elevator to the ‘noble’ floor, projecting the same lifeless PPTs as always, as if they were making a case in front of a tribunal waiting for the verdict.
The culture only started shifting when the executives brought the change to another level. No more status updates at the top of the high-rise corporate headquarters. They systematically took the same elevator down, attended the forums where teams did the actual work and asked questions when their turn came. Their leadership manifesto got grounded in their collective rituals, which had a compounding effect on their behaviors.
 

The Road Ahead

Other systems and symbols in an organization are how the budget is allocated (what do they spend their money on?), whom they hire, who gets promoted, what gets celebrated and punished, and how they reward and discipline. These are the infrastructure on which the leaders keep traveling when they return from their climbing expedition. They arrive eager to reach milestones on their ongoing journey toward long-term, sustainable success in the form of robust business results, healthy relationships, and personal fulfillment. Excellent leadership teams realize that:

    1. The road ahead is full of curves. They will arrive at crossroads where the tools they gathered on their way to the peak will come in handy. The good news is that, after a climb, a curvy road pales in comparison.
    2. They can’t let their guard down. Continuing to measure how the team is doing on their levels of trust, conflict management, commitment, accountability, and results is paramount for them to keep working out where they are weaker. No matter how well they’re doing, they know that the moment they quit going to the gym, they’ll get out of shape. Staying at the top of their game is a life-long sport.
    3. They need to get rid of the inappropriate infrastructure that slows their momentum, sometimes to a halt.
    4. They found their fuel – a healthy fuel that keeps the fire (the one they kindled at the fireside chat at base camp) burning and lighting the way. Holding on to their purpose, their true North, they move not for themselves, but for something that transcends them.
    5. There is a legacy to leave behind, and they have decided what they want that to be.

We hope you enjoyed the journey alongside this new CEO and leadership team. Let us know in the comments which part of the journey you found most helpful for your own!

Many companies begin their culture journey motivated to make big changes. While the intention of major change is there, some will lack the follow-through to sustain focus and solidify lasting change. Taking the time to measure the progress of your culture in a conscious, intentional, and continuous way is important to keep your initiatives on track.

The first step for many organizations is to conduct a baseline culture assessment, typically consisting of quantitative and qualitative data. The purpose of the assessment is to identify their ideal culture, measure the current culture, and find out where the gaps are. This data helps leaders get aligned on their vision, as well as to better understand the mindsets, values, and beliefs that are widely shared in the organization, and how they may enable or get in the way of attaining results.

As the culture transformation process unfolds – roadmaps are defined, workshops are conducted, communication strategies are implemented and change agents are mobilized – measurement typically goes to the bottom of the priority list.  Rarely do we find that the same level of rigor that was used in the assessment step is applied to measure the progress and impact of culture change initiatives.  The approach is often limited to informal sensing based on unstructured conversations and casual observations, or relying on employee engagement surveys, which seldom measure shifts in mindsets and behaviors. This makes it hard to pinpoint where are we making progress and what we need to do to accelerate the change.

However, administering comprehensive culture surveys and conducting multiple interviews and focus groups may not always be feasible if you want to keep the pulse on the change and assess progress in a continuous way.

Here are some ideas to help you design your culture measurement strategy:

Identify where you are in your culture journey

Have you recently started your culture transformation effort?  Have you already started mobilizing people and launching initiatives?  Understanding where you are will help you define what you need to look for (your key hypothesis and key research questions) and the data sources that will be most helpful.  For example, you could assess the following:

  • Change readiness – Do you want to see if leaders and employees are aware, willing, and able to drive change?
  • Culture drivers – Do you want to see how effective the new programs or initiatives are?
  • Mindset changes – Do you want to assess if the desired culture mindsets and behaviors are becoming norms?
  • Outcomes – Do you want to understand how culture is impacting key business and people results?

At the beginning of your culture journey, you may want to focus on measuring change readiness and the effectiveness of culture initiatives.  As your process takes root, you can focus more on behavioral and outcome measures.

Identify potential sources of data

Since culture is experienced, the best insights typically come from a mix of quantitative and qualitative data.  Based on your key research questions, you can strategically identify potential data sources (such as employee lifecycle surveys, leadership 360s, performance evaluation forms, training feedback, sentiment analysis from employee comments, or feedback data) that can be re-imagined for intentionally capturing meaningful culture insights.  If your focus is more on assessing outcomes, consider conducting advanced analytics, integrating people metrics (such as engagement, retention, development and performance measures) with employee surveys and customer data.

Identify potential experiments

Many successful culture change initiatives are rolled out in phases.  This gives the organization the opportunity to learn and adjust, create success stories, and form culture champions.  The phased approach also lends itself to measuring the impact of the culture initiatives over time for certain groups and to compare the differences among groups who have experienced the change vs. those who have not.  Designing and measuring experiments will help you refine your approach before committing to bigger investments, make participants an active part of your broader change process, and assess the ROI of your initiatives.

Conclusion

Your strategy to measure the progress of your culture should be aligned to the mindsets that you are looking to drive – whether it is agility, innovation, accountability, or inclusion.  Be intentional and approach the measurement process with curiosity – you are not looking for a pass or fail grade, but for powerful insights that will help you shape your best next step in your culture transformation journey.

If you ask any leader, “What has been one of the most defining moments in your career?” most likely, the answer will be related to leading a significant organizational change.  This is not surprising: our brains are wired to remember peak moments more vividly. These are experiences that capture us at moments of achievement or courage; or moments that change our understanding of ourselves and the world around us.1
Organizations place a lot of value on leaders who can effectively lead others through change.  In fact, effective change leadership is a common competency used to identify and develop high potential employees.2 However, despite the importance that both leaders and organizations place on change leadership, many organizations lack an intentional strategy to help their leaders become effective change-makers.  Many of us are guilty of having used the ‘sink or swim’ approach disguised as ‘on the job learning’.  Intentionally or not, we throw our up-and-coming talent into leading changes in an environment that is increasingly complex and unpredictable without the benefit of a foundation to help them along the way.
For on-the-job learning to be effective, it needs to reinforce the behaviors we are looking to shift or embed. This means that we need to define the guiding principles of how we should lead through change and the experience that we want to provide our change-makers, employees, partners, and clients.  The benefit of talking about ‘how we lead change’ goes beyond leadership development. It sets clear norms of behavior and common expectations of how we will measure success while empowering our change-makers to ask for what they need.
 

How can we best prepare our current and future change-makers? 

It’s useful to think about the actions that we can take preemptively, through more structured leadership development, coaching, and resources. We should also consider the ‘just-in-time’ support we can provide to help leaders navigate a change event.
The good news is that there is significant overlap between what makes an effective change-maker and what makes an effective leader.  Development activities (such as training and coaching) that encourage leaders to increase their self-awareness and growth mindset and help them become more resilient, inclusive, accountable, and collaborative, will also help them be better change-makers.  In addition, change-makers need to be good at storytelling, influencing, and systems thinking. To maximize impact, we need to be intentional in helping them understand how they can apply these leadership skills in a change situation.
 

As they get ready to embark into a large-scale, high-impact change, we can support change-makers in two dimensions:

  • Change acceptance – In order to lead, change-makers need to be willing to move. In many situations, we ask leaders to take on new initiatives on top of their current responsibilities.  You can increase their willingness to lead by creating a space to intentionally discuss how this initiative fits into the broader organizational picture and what’s in it for them personally.  When they intentionally set their personal goals – whether it is to accelerate their development, build their network, gain a broader enterprise view, learn new skills, or do something with impact – they will feel valued and more energized to take on a new challenge.
  • Change-related skills – Leaders need to feel able to lead the change. Beyond the resources and information needed to execute the ‘what’ of the change, they also need access to practical, ‘just-in-time’ change management guidance and tools. Instead of providing theoretical change toolkits and training that few people will use, employ a design thinking approach to uncover what would be most useful for change-makers as they navigate large-scale change.  This may include practical tools, like a change playbook tailored to your organization, and targeted coaching/advice to discuss ideas and overcome challenges.

Our change-makers can survive a change event, or they can consciously experience and lead the change.  This will not make the change less complex or challenging, but it will help them approach the experience with a different mindset, less fear, and a higher level of confidence.  It will also help advance the business goals that the change is looking to achieve and help build organizational agility and resilience.
 

References
  1. Doll, Karen. (2019). What is Peak-End Theory? A Psychologist Explains How Our Memory Fools Us.com
  2. Fernandez-Araoz, C., Roscoe, A., Aramaki, K. Turning Potential into Success: The Missing Link in Leadership Development. Harvard Business Review, November–December 2017 Issue

When it comes to culture transformation initiatives, complying with change is different from committing to change. For it to be successful, leaders need to be committed to changing how they think, act, and interact. You can’t force this kind of change… at least not sustainably. An essential part of closing the gap between where an organization is now and where they need to be is providing a clear roadmap of the culture plan. This is an important step toward making the necessary changes.
 

Creating the roadmap for culture change

 
The results of the tools we use in Axialent to measure the current and ideal culture (OCI® Organizational Culture Inventory® and OEI® Organizational Effectiveness Inventory®) and the leadership styles and behaviors (LSI® (Life Styles Inventory®) allow an organization to identify levers for change, so they can establish a detailed action plan for successful change management and measure their progress.
Developing an action plan for culture change requires planning for deeper, longer lasting transformation. It is not your regular change management plan.
It needs to cover the following aspects:

  • People need to understand the change, what it implies, and most importantly, why they should change.
  • They need to overcome any negative emotions associated with the change and connect it with positive emotions.
  • They need to be capable of change.
    The “Shadow of the Leader” is long. People will seek their leaders’ example of what it truly means to change. By using the LSI®(Life Styles Inventory®)tools from Human Synergistics, we provide leaders a powerful roadmap for themselves, that weaves neatly into the organizational roadmap because it is built on a common framework and a shared language.
    Most leaders easily “get” what needs to be done at an intellectual level. However, bridging the gap between knowing what they need to do and actually doing it requires working on a deeper level – what we call at Axialent the “being” level. Leaders have to become the leaders that the new culture needs them to be before we can aspire to achieve any true change and get others on board.
    Traditional training is insufficient for this – adaptive learning is a must in most cases.

Only after addressing these three factors can you expect people to be willing and committed to change.
 

Next steps – some food for thought

  • An action plan CAN be simple. It all boils down to who does what, by when.
  • Think of action planning as a proxy of the culture change you want to see. For example, if you want to foster a culture of greater accountability, empower autonomous teams to lead action planning for culture transformation in their sphere of influence and hold them accountable for progress and outcomes.
  • Consider mapping stakeholders by subcultures instead of the usual employee segments and check if this adds value to your action plan.
  • When you have a powerful suite of tools like the LSI, OEI, and OCI, you remove the guesswork from prioritization. You will have the main causal factors that will move the needle toward your desired culture. Concentrate on the handful of measures that will create the most impact instead of merely scratching the surface with various initiatives.
  • When you plan, test if executing short sprints instead of rolling out a titanic change program adds value. Carve out time in your plan to pause, re-measure, and recalibrate your plan itself.
  • Don’t wait until the end to conduct a post-mortem. Make learning an ‘action’ in your action plan by ensuring you will collect and analyze feedback and, more importantly, make time to integrate feedback.
  • Clearly lay out your options once you receive and analyze feedback (for example: pivot, persist, or pull the plug) to facilitate decision-making when that time comes.

 

Conclusion

Ensure that your roadmap for culture change includes actions that get people to truthfully say: “I understand why I need to change, I feel excited/happy/______ (<- your positive emotion goes here) about this change, I feel capable of changing what I am asked to change, and I’m committed to do so”. A clear roadmap of the culture journey will help to ensure success in implementing real and lasting change.
 
 

psychological safety - image of a lighthouse beacon in the dark
 

“A shared belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns or mistakes.” Amy Edmonson

 
As leaders we have heard about the critical role psychological safety plays in team effectiveness. Amy Edmonson first identified the concept back in 1999. In 2012, Google, through its Project Aristotle research (How to build the perfect team)*, concluded that psychological safety is the most important condition for a high performing team.
No one can argue against the importance of providing a safe place and environment for team members to voice their opinions freely without fear of retaliation, punishment or humiliation. This is a key element to team effectiveness and to an environment that prioritizes innovation and agility.
It seems like common sense, and yet in our experience working with different teams across the globe, it is not necessarily common practice. The need to nurture psychological safety is often a blind spot for leaders. It is a perfect example of disconnect between intent and impact in leadership. Most leaders genuinely want to leave a legacy through their people, they act and lead from good intent. Yet how a team interprets the actions and decisions of the leader determines the impact of their leadership.
 

Leadership behaviors that diminish psychological safety

There are some very visible leadership behaviors that drive disconnect and diminish psychological safety. These are things anyone can identify while observing a team interacting. For example: blaming others, using hostile and aggressive language, dictating what needs to be done, shutting people down, killing another’s ideas, monopolizing the conversation, combative listening, excluding people from conversations.
As well as these very visible behaviors, there are also other, more subtle, behaviors and symbols that diminish psychological safety. These are less visible and ones that we don’t necessarily pay as much attention to, and yet can have the same impact.
The following are some of the most common examples I have observed when working with teams:

  • Missing the connection: Diving directly into the agenda at the start of a meeting without dedicating some time to connect and acknowledge each other’s state of mind.
  • Nonverbal signs: According to research only 7% of messages pertaining to feelings and attitudes are in what we say. The rest of the messages are in facial expressions and tone of voice. Our body speaks louder than our words.
  • The leader opening the conversations and voicing own opinions first: This sets the tone of the conversation for the rest of the team and establishes a hierarchical message that the boss speaks first.
  • Asking rhetorical questions: Asking something with a desired response in mind shuts out other ideas and triggers defensive behaviors.
  • Being spaced out in a meeting: Multitasking, checking phones etc., while other team members are speaking and sharing ideas.
  • Going along with “just kidding” excuses: Playing along and tolerating jokes and topics that could be sensitive to people, possibly leading to feelings of discomfort or exclusion.

 

How can leaders increase psychological safety in teams?

Much has been said and written about this, adding to Amy Edmonson’s suggestions based on her research. Following are 8 key things I believe every leader should do and pay attention to in order to increase psychological safety:

  • Be aware of your own leadership style and impact on others: Learn how you perceive yourself, and how others perceive your leadership style. Identify your own strengths, derailers and blind spots, and the impact you have on your team.
  • Connection before context, and context before content: Take time to connect and receive each other in each interaction. Then set the intention for your meeting and align on the agenda before jumping into the content of the conversation.
  • Agree on operating principles: These are the rules of the game, they sum up how the team will interact together. Team members must commit to honoring these principles; not only agreeing to comply to them but also to speaking up when any of these principles are not being followed.
  • Balance airtime: Make sure all voices are heard; consciously plan team dynamics to ensure everyone can provide their feedback and contribute to the discussion. Listen and ask clarifying questions to check assumptions before sharing your opinion.
  • Turn feedback into a habit: Ask questions to the team. What’s working? What could make our meetings more effective? How can I help you become more effective? What would you like to see differently in the way we interact? What would help you improve your experience at work? Be prepared to receive others’ points of view without resistance.
  • Address undiscussables: These are the unspoken topics everyone knows about, and team members choose not to address. Put things on the table with compassion and express your truth with honesty and respect.
  • Call out uncomfortable / improper comments: Walk your talk and demand others to comply with your standards. Create an inclusive environment where everyone feels valued and respected.
  • Respect and honor your relationships: Make this a priority. Invest time in strengthening your relationships and letting people into your circle of trust. Get to know each other, learn from one another’s journeys and understand how you complement each other.

 

Creating a safe environment

Psychological safety is not something that can be taken for granted. It can take time to build and seconds to break, and should be part of every leader’s agenda. Creating a safe environment where people can openly express their opinions freely is our ultimate responsibility as leaders.
 
https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Group_Performance/Edmondson%20Psychological%20safety.pdf
*https://rework.withgoogle.com/print/guides/5721312655835136/

As we fast approach Q4 2020, the world is still experiencing much uncertainty and fast-paced change. Although we may be struggling with how to adjust to these changes, we must find a way to reconnect together with where we are now, our future, vision, and opportunities.
Many corporations normally gather for Leadership Summits at the end of their fiscal year to review what has been achieved and learnt, reflect on the coming year, and share key outcomes with their employees via global and/or local Town Halls. This routine is now in question as large in-person gatherings are not currently possible.
Revamping your Leadership Summit and Employee Town Hall : rows of seats in a lecture hall
 

Should the Covid-19 crisis freeze Corporate annual gatherings?

I would argue definitely not, for two reasons summarized by the saying “Never let a good crisis go to waste”:

  • In the coming months, you might still have to face and overcome the kind of organizational trauma Fran and I described in our first article in the series, Survivor Syndrome: Overcoming Organizational Trauma in Times of Crisis. This potential trauma needs to be ‘put on the table’ and addressed, as my colleague Richi stated the only way out is through
  • This crisis is not only about trauma and disruption. It is also a fantastic opportunity for people and businesses to grow. Over the past 6 months we have seen many companies demonstrate extraordinary levels of resilience, agility, creativity, speed in decision making and action, collaboration, empathy and solidarity. We heard from CEOs that “we’ve shown that we can be quick, agile, innovative. Now we can’t ignore it and go back to our old way of thinking, working and interacting”.

End-of-year Leadership Summits and Town Halls are exactly the right moments to address these two issues.
 

Revamping your Leadership Summit and Employee Town Hall

As of today, for obvious reasons, there is no practical way to have global and regional gatherings in person. Having them digitally however not only makes them quicker and cheaper but potentially also more agile and impactful.
After a 6 month digital intensive “gym” practice, organizations now know that interactive and highly productive online events are possible. Alternating structured discussions in plenary sessions with breakout workshops, facilitating brainstorming sessions, leveraging voting tools, using online pulse surveys and practicing learning exercises.
Designing and facilitating digital large gatherings requires the use of professional instructional designers. Specialists who master both the technology, the content, and the online collaborative work dynamics.
 

How to do it digitally:

  1. A 2 or 3 day offsite and in-person Leadership Summit can become 3 half-day webinars. Purely focused on reflection and action rather than on the necessary, but long and often boring, information sharing.
  2. With pre-work designed to share this necessary information/insights/learning material. Including asking each individual to reflect and work on some critical questions, actions and decisions that will be addressed during the webinars.
  3. Well-structured post-gathering follow-up is also key for the real success of these digital gatherings.
  4. Will you miss the drink and dinner with your peers and managers? Nothing could replace this as such, but there are other creative ways to share a virtual moment and space of friendly informal connections.

There are similar opportunities with all-employee Town Halls, both global or regional.

  1. An in person event can be a 2 or 3 hour webinar (recorded for those not available at that time).
  2. With a pre-work platform for information sharing and individual reflection.
  3. The webinar could include active listening, along with a pulse survey for example, so you can focus the webinar on interactive connections, collective work and reflections.
  4. End with post-gathering follow-up.

You can position the Town Hall as a broadly shared conclusion of your Leadership Summit. Alternatively, the Town Hall can be in the middle of it, designed so employees’ input and questions form part of the last day of the Leadership Summit working program.
 

What should the content be this year?

In the current context of uncertainty, vulnerability and complexity we recommend that your agenda includes the following key topics:

  • Managing our organizational trauma based on data (pre-work including employee pulse survey and focus groups).
  • Leveraging our extraordinary learnings from the crisis to replicate them in a sustainable way (also prepared in pre-work).
  • Planning with agility for our future in this crisis. How can we create a future together when there is still so much uncertainty? How can we help our team members feel less anxious and find a way forward that adds value for everyone?
  • Boosting our culture transformation first where it has the fastest and biggest impact.

 

Conclusion

The more VUCA in our current world, the more we need to reconnect and take a reflective break with our people. 2020 is not the year to freeze or cancel, but rather to focus on revamping the Leadership Summit and Employee Town Hall. Do not avoid the crisis risks and opportunities issues.

“Genius is not enough. It takes courage to change people’s hearts.”

— Green Book

 
In this final blog post in my culture shift series, I will take a look at some of the symbols and systems that shape workplace culture and explore one of the fundamental shifts needed for a new paradigm.
One of Axialent’s founders wrote the book “Conscious Business.” When I first read the book, I was particularly encouraged by this quote:
 

“Many believe that it is necessary to sell out in order to achieve economic success, or drop out in order to pursue a meaningful life. This is a false polarity. When business is conducted as an expression of your core values there is harmony between material and spiritual wealth.”

 
This expanded what I thought about business and settled a dilemma I had wrestled with internally. How do we transform the way we conduct business, consistently aligning vision and values, profit and purpose, and experience this harmony between material and spiritual wealth? What if more people could experience prosperity, ease and joy in their work and lives? What if you don’t have to sell out or drop out to find peace?
Research states that the average person will spend up to 90,000 hours at work over a lifetime. During those 90,000 hours, the environment you work in really does matter and ultimately impacts your success, health and well-being. How do we work together to shift systems and create more conscious cultures?
First, we become more aware of the way we think and talk about things. Language is a powerful symbol of what we value and is expressed through rituals and stories. We pass these stories on, and they express what is most important in a particular culture and signal how business gets done. For example, I recently watched the documentary about Theranos called “The Inventor: Out for Blood in Silicon Valley.” It was evident that in order to succeed at Theranos, you did not challenge the vision and were expected to spread the claim that the company could perform over 200 blood tests with a single drop of blood. Those who spoke up with concerns and evidence to the contrary were contacted by lawyers or the CEO and COO personally. This culture of dishonesty, fueled by centralized command, enabled fraud and mistreatment of employees.
Since many of the messages about what is valued in an organization are nonverbal, it takes effort to take a sincere look at their unintended impacts. Symbols to consider include:

  • How leaders’ behaviors set the tone: What is acceptable and what is not?
  • How budgets are allocated: What do we choose to prioritize and why?
  • How time is spent: Meetings, email, etc.
  • Who gets promoted: What is it based on? Performance, potential, relationships, etc.
  • Who leaves: Why are they leaving? Do we conduct exit interviews?
  • Recognition and compensation: Are we equitable and fair?
  • Title: Who has power and authority to make decisions?

Once these symbols and their impact have been considered, then strategies and plans can be made for organizational change. Structures that might need evolution include:

  • How you do strategic planning and budgeting: Who has a seat at the table? What is our process for decision-making?
  • Performance review and reward: Do we reward what we say we value? When competing commitments are exposed, how will we decide what to prioritize?
  • Measurement, reporting and learning: What do we measure? How do we share data? How do we learn from our missteps and utilize these learnings to inform our future choices?
  • Organizational structures: Do we need to reorganize or redesign roles to be more effective?

So what are the barriers to real change? Power and intent.
Many business practices happening today are rooted in the mental model of power over and zero-sum game, a win/lose mindset, which is contributing to a deficit of spiritual wealth including meaning, well-being and joy. Tolerating bad behaviors at the highest levels in an organization can have a negative impact on the culture, as people take their cues from those at the top of what is acceptable behavior. What is needed for greater harmony and sustainability is a fundamental shift to a mental model of power with and power through, a win/win mindset, where we really practice “partnering” to help improve all aspects of business and life. This shift in intent will require a rebalancing of valuing intellect and knowledge as much as the wisdom of the heart.
 

“The culture of your business is its heartbeat. Without a healthy one, the business will ultimately fail.”

— Conscious Capitalism

 
Just like getting an annual physical to check on the health of your body, building in practices to check on the health of your organization’s heartbeat, your culture, is essential. Here are a few ideas to consider:

  1. The Culture Journey Experience. This interactive experience helps leaders and change agents understand the complexities of culture, leadership and their connection to performance in an accelerated environment. You will explore foundational forces, current operating culture and levers for change.
  2. Assess and measure the current state of your organization’s climate and culture using both qualitative and quantitative tools.
  3. Prioritize conversations on workplace culture as part of the executive team’s agenda just as you would other business metrics.

It takes courage to examine your own heart as well, which is an ongoing practice, and to aspire for something greater — not just yourself and your organization but for humanity.

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!”

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.