Organizational Culture Change Notes

Culture change is a popular topic, but it can be a major undertaking, especially for larger organizations. So why would leaders decide to embark on a culture change initiative? Does it make sense for your company? We'll explore five scenarios that could warrant the investment and time to change our corporate culture. The first one is growth. A lean and mean start-up company that was basically winging it early on might begin to experience growing pains. They realize that policies and procedures are important, but they're also concerned that more structure will ruin the initial appeal of their entrepreneurial venture. Of course, if they want to grow, things have to change. The organization might choose to implement a more defined infrastructure but also infuse some of that original excitement and freedom into the culture in interesting ways. The second reason could be downsizing. In larger companies that experience a significant size adjustment through layoffs, the work environment may have deteriorated because of the fear and anxiety that grows during management transitions. Once the transition is complete, a change strategy would be important to reboot the culture and start fresh with a more positive tone and a unified atmosphere. The third reason culture change might be needed is mergers and acquisitions. This might be one of the toughest challenges. In these situations, two distinct cultures collide, which can lead to power struggles, confusion, and plenty of uncertainty. Without a culture realignment, the lack of internal unity can send mixed messages to consumers. Product and service quality could suffer, and the brand identity could be fractured. Culture change is the only solution to get all the employees on the same page and create a more cohesive environment. Fourth is the emergence of a revised mission or operating goals. The culture is designed to support the mission, so if the mission adjusts, the culture likely needs a makeover as well. Perhaps a company decides to change product lines or an economic or regulatory issue forces an overhaul in production or distribution, or perhaps advances in technology require hiring people with all new skillsets. Any of those factors could prompt a change in an organization's overall mission or its goals, and changing the culture could play a big role in achieving them. Finally, culture change could be important to combat an inadvertent shift over time. We realize that culture needs to be monitored and managed, but that task can sometimes be overlooked. At some point, a leadership team may realize that negativity has crept in. Certain management decisions made independently have combined to start sending the wrong message. Employees are unhappy, and performance is down. It happens, but until there's a proactive effort to get things back on track, that negativity will continue to erode morale. Whatever the reason for needing culture change, leaders have to be prepared to make the necessary adjustments, and they need to be prepared for pushback. When organizations proactively drive culture change, despite initial reluctance, and do so with real dedication and calculated execution, the benefits can be extraordinary.

Changing habits can be tough, but it's possible with real commitment and a well-designed plan. If you sense it might be time for a change in your organization's culture, here are a few steps to help make that happen. First, analyze your existing culture. You need to know exactly where you are before you can navigate to where you want to be. To assess the current state of your culture, get feedback directly from the people who are experiencing it. Talk to employees at every level in every department. Use surveys, interviews, focus groups, whatever feedback tools will give you an accurate view of your existing culture. Your goal is to find out what's important to your employees, what inspires them, what frustrates them, what would they change? This process involves asking some tough questions. If you want honesty, and you do, employees will need to feel comfortable providing candid responses without the fear of retribution if their reviews are less than positive. Sometimes the answers are difficult for leaders to hear, but those perspectives are critical. To give you a headstart, I've provided a culture survey you can download. Second, develop a strategy for change. Once you have a better idea of what's working within your culture and what's not, you can begin to formulate a strategy for making improvements, developing a plan that will significantly increase the employee's ability to meet the organizational goals and achieve the vision. Where are the roadblocks in your culture? How can you remove them? What factors are prompting engagement and loyalty? How can you strengthen those? If you want different results, you need a different formula. Figure out what cultural changes could have the greatest potential to upgrade morale and motivate employees to perform at a higher level. Maybe your employees tell you that they're craving more communication, more interaction with upper management, more freedom and flexibility to explore innovative options, a different type of incentive structure perhaps. Get creative about ways to deliver on those wants and needs. When you do, you'll create a culture where people are genuinely engaged and committed to success. Third, implement your unique strategy with real conviction. This is about bringing your culture change to life and there are several things to keep in mind. Be authentic and transparent. This means communicating strategically with everyone in the company. Tell them upfront what you're trying to do. Explain why it matters and how they will personally benefit. Make sure you have a powerful way to convince them that the culture change is of value to them and to the business. Communicate clearly and often using a variety of different channels. Be honest and straightforward. Build the brand story. Help your employees understand your brand narrative, and emotionally become a part of the story. This is more than reciting a catchy slogan. It's about capturing the feelings and the promises of your brand and helping employees believe them and bring them to life. Draw your employees in and enlist them as storytellers to share the message with customers. When a company's culture change involves using employees to build the brand story, they end up with brand ambassadors who embrace the vision and genuinely care about reaching goals. Next, use leaders to drive the process. Infusing culture change throughout your organization has to start at the top. The leaders need to be the first to understand the reasons for the change. Get behind it, model it and sell it all the way down the org chart. Last, commit to consistency. Here's an example. Say you determine you can improve your results by transforming to a warmer, friendlier, more open culture. You introduce the new approach at an interactive all hands meeting that's very well received, but then nothing else changes. The employees see right through that. Meaningful change isn't going to happen if you don't follow through and back it up. Consistency is mandatory. The values of your new culture need to be part of everything you do, who you hire, how employees are motivated and rewarded, how supervisors interact with their teams. From employee manuals to HR policies, the tone of every component needs to send the same cohesive message. When you use a well-defined plan that includes consistent communication and practices that support the new culture, you'll pave the way for real progress within your organization. 

Leaders have a powerful influence on an organization's culture. They set the tone for how employees perceive their work experience. So leadership and culture go hand in hand. In many ways, a leader's success depends on their ability to help shape and uphold organizational culture. That's a formidable task and one that requires conviction and strong character. Besides nurturing those qualities, there are some specific things you can do to improve your impact on company culture. First, be strategic and intentional about your leadership brand. Like it or not, you're a role model. Employees are watching how you speak and act, how you handle tough situations, what you believe in, and how you motivate others. Your purpose as a leader isn't simply to get your direct reports to work together toward reaching a common goal. Your attitudes and behaviors also form the backdrop for how that work gets done. Employees look to leaders who truly believe in the company's vision and mission. They need to see that you identify with the cause, that you can articulate it, and spread the values of the organization in an explicit way. If you want your employees to create a results masterpiece, you need to provide the right culture canvas. Second, maximize employee engagement. That's the formal way of saying create a team of believers, people who genuinely buy into the corporate vision and feel invested in achieving it. Your job as a leader is all about sales. Doesn't matter what business or industry you're in. Your job as a manager and a culture cultivator is to sell your team on caring about the big picture. That can be difficult. It means making sure your employees understand the vision and not just traditional ones, but visions that shake up the status quo, start a revolution, or impact the community as a whole, then making sure they understand how their individual jobs play a role in achieving that vision. In a winning culture, great leaders work to inspire teams to be committed to the cause. And don't forget about having fun in the process. The best corporate cultures in the world are known for keeping employees engaged with a lively spirit and a sense of humor. Yes, the team had to work all night to solve a customer problem, but you can bet they'll remember the hot donut delivery at 2:00 AM and the five-minute dance party. Third, make culture part of your operating and decision process. Your standard operating procedures should reflect the vision and values of the company. If leaders want to create a culture that is customer-focused, they need to make sure their behaviors reflect that. Do they spend time in meetings discussing customer issues or visiting with customers on site to better understand their challenges? The way they operate sends a message about what's really important to the rest of the employees. The impact on culture should also be considered in major decision making. Think about how your employees will feel about certain decisions. How will those change the way they view their jobs or even do them? Sometimes trimming a program from the budget looks like a smart option to save money at first glance, but the negative impact on culture could be much more expensive if it means higher turnover. Successful leaders know how to expand their view from the financial ledgers to make decisions that build great cultures and deliver superior results. Finally, work to build trust. Trust infiltrates every part of the work environment. It's the centerpiece of a great culture and the responsibility for creating that sense of trust lands on the shoulders of every leader. Among all the attributes of the greatest leaders of our time, one stands above the rest. They are all highly trusted. You can have a compelling vision, rock solid strategy, excellent communication skills, and a skilled team, but if people don't trust you, you will never get the results you want. Ask yourself some pointed questions about the level of trust in your organization. Are employees trusted to make decisions? Do they feel like their opinions are valued? Do they trust their leaders to be honest, authentic and transparent? You can build trust and transform your culture, but it takes time. Be consistent in your approach and what you support, and above all else, keep your commitments to those you serve.