I haven’t come across an executive who is unaware that there is a culture at work within his or her organisation. I’ve met a few who haven’t made the link between culture and the performance of their business but the majority seem to understand that the two things are inextricably linked. I’m therefore surprised how often there’s no conscious, planned activity underway to shape their culture or continuing the theme from yesterday, to cultivate it.
Either consciously or unconsciously, every organisation is shaping their culture. The way in which it responds to internal and external influences, the manner in which decisions are taken and the impact of those decisions, the tone of communications, the behaviours of managers and leaders, the things they recognise and reward, the behaviours they encourage, things they give attention to and talk about (or not), things they tolerate or turn a blind eye to…..are all examples of ways that they cultivate their culture, irrespective of whether they are aware of it or not. Ignorance of the link between culture and performance is may be an excuse for them, albeit a poor one!
So what’s the excuse in organisations where executives do understand the link but still don’t consciously and deliberately cultivate it? In my experience there are four key reasons:
1. Fear
This is a reflection of the human fear of change. We might not like our current circumstances but stay where we are because if we change it might be even worse. “Better the devil you know” and all that. It’s fear of losing control, of making things worse, fear of trying to change and failing, fear of succeeding and having a new set of problems, fear of the unknown. When fear is the dominant driver in the business it will be slow to change, slow to react to changes in the market – and at risk.
This is a reflection of the human fear of change. We might not like our current circumstances but stay where we are because if we change it might be even worse. “Better the devil you know” and all that. It’s fear of losing control, of making things worse, fear of trying to change and failing, fear of succeeding and having a new set of problems, fear of the unknown. When fear is the dominant driver in the business it will be slow to change, slow to react to changes in the market – and at risk.
2. Complacency
Organisations that have no burning platform for change are often complacent. Results will typically be ok, not great but also not poor enough to make change unavoidable. So the “we’ve always done it that way” and “if it ain’t broke, don’t fix it” mentality prevails. These organisations will be ‘comfortable’ places to work, but not great places that encourage and stimulate people to achieve more. These organisations are insular and not particularly concerned about what competitors are doing – and consequently are at risk. See Kodak for an example.
Organisations that have no burning platform for change are often complacent. Results will typically be ok, not great but also not poor enough to make change unavoidable. So the “we’ve always done it that way” and “if it ain’t broke, don’t fix it” mentality prevails. These organisations will be ‘comfortable’ places to work, but not great places that encourage and stimulate people to achieve more. These organisations are insular and not particularly concerned about what competitors are doing – and consequently are at risk. See Kodak for an example.
3. Habit
When the senior team in an organisation gets too comfortable and habitual ways of managing become embedded, it becomes difficult for leaders to step outside their comfort zone and drive change. It becomes in the best interests of the leadership team to safeguard the status quo – because the alternative would mean them changing. Decisions are communicated and if challenged, explained by suffixing “because the Chairman / CEO says so”. Leaders in these organisations might be perceived as arrogant and disinterested in change – and are therefore at risk.
When the senior team in an organisation gets too comfortable and habitual ways of managing become embedded, it becomes difficult for leaders to step outside their comfort zone and drive change. It becomes in the best interests of the leadership team to safeguard the status quo – because the alternative would mean them changing. Decisions are communicated and if challenged, explained by suffixing “because the Chairman / CEO says so”. Leaders in these organisations might be perceived as arrogant and disinterested in change – and are therefore at risk.
4. It’s too difficult
Some organisations know they should change their culture, they just don’t know how to do it. They perhaps can’t put their finger on what’s wrong currently, and consequently they don’t know exactly what needs to change, and even if they do they don’t know what actions to take to do it or how long it will take, how employees will react, or who needs to do what. These organisations desire change and are ambitious but don’t know where to start and so stress is part and parcel of working there, because it’s hard work overcoming the difficulties inherent in the culture. They experience other organisations doing what they do ……better – and so they are at risk.
Some organisations know they should change their culture, they just don’t know how to do it. They perhaps can’t put their finger on what’s wrong currently, and consequently they don’t know exactly what needs to change, and even if they do they don’t know what actions to take to do it or how long it will take, how employees will react, or who needs to do what. These organisations desire change and are ambitious but don’t know where to start and so stress is part and parcel of working there, because it’s hard work overcoming the difficulties inherent in the culture. They experience other organisations doing what they do ……better – and so they are at risk.
And then there’s are organisations who understand it and are consciously and deliberately shaping and cultivating a culture which supports their vision, their strategy and their business plan. They’re the companies you admire and respect AND are achieving extraordinary performance.
Which group is your organisation is in?
Let me know whether you agree with this post and of course, give me a ring if you’d like to chat about it (or anything else).
LinkedIn: http://uk.linkedin.com/in/timhadfield
Twitter: @accordengage
Telephone: 0044 7906650019
