Leading Blog






01.15.21

Culture Renovation

Culture Renovation

WE hear a lot about changing the culture. And the successful are more like renovations than they are like rebuilding the culture. Kevin Oakes advocates that mindset in Culture Renovation: 18 Leadership Actions to Build an Unshakeable Company

Companies that effectively changed their cultures were successful because they were renovating what they had, not starting from scratch and completely rebuilding or transforming.

Furthermore, he notes that the best time to renovate your culture is when all is well.

Rarely do companies set out to change their culture when everything is calm and running smoothly, even though that is probably the best time to do it.

Making the point that culture renovation begins at the top he replays the appointment of Satya Nadella as CEO of Microsoft after Steve Balmer in 2014. Cultural change at Microsoft began on day one. The key change was instilling a growth mindset.

Microsoft’s culture had been rigid. Each employee had to prove to everyone that he or she was the smartest person in the room. Accountability—delivering on time and hitting numbers—trumped everything. Meetings were formal. If a senior leader wanted to tap the energy and creativity of someone lower down in the organization, she or he needed to invite that person’s boss, and so on. Hierarchy and pecking order had taken control, and spontaneity and creativity had suffered as a result. The culture change I wanted was actually rooted in the Microsoft I originally joined. The culture change I wanted was centered on exercising a growth mindset every day.

The turnaround at Microsoft has been remarkable, and it started at the top.

Oakes offers an 18-step culture change blueprint organized equally into three categories: Plan, Build, and Maintain.

PLAN

Step #1: Develop and Deploy a Comprehensive Listening Strategy. “Before an organization embarks on a culture renovation, it needs to first understand how the current culture is perceived. Too often, the senior team assumes they know what the culture represents. Too often, they are dead wrong.”

Step #2: Figure Out What to Keep. Know what stays and what goes. Listen to employees (Step 1) is so important because “it not only illuminates what the culture is today, but it also helps determine the most positive and valued aspects of the company’s historical culture to carry forward.”

Step #3: Set Your Cultural Path. “In the spirit of renovation, the new direction should acknowledge and embrace past successes, but set up the organization to forge new ground into an unknown future.” A carefully crafted purpose statement.

Step #4: Define the Desired Behaviors. Once you have a short, pithy, and memorable purpose statement, the question is what behaviors will best support that statement.

Step #5: Identify Influencers, Energizers, and Blockers. Know the informal organization using an organizational network analysis.

Step #6: Determine How Progress Will Be Measured, Monitored, and Reported. “Ultimately, the reason for a culture renovation is to enable the organization to execute on its go-forward strategy. Because this change can sometimes take years, it’s important to define upfront what the indicators of a successful renovation should be, and to put in place mechanisms to monitor progress.” Oakes offers a number of common measures and methods.

BUILD

Step #7: Clearly Communicate That Change Is Coming. “To kick off a culture renovation, the CEO must articulate the purpose of the organization (whether new, old, or renovated), and that purpose must resonate with employees.”

Step #8: Ferret Out Skeptics and Nonbelievers Early. This is the hardest step. “It’s the consistently de-energizing people that ultimately slow down or take down cultures. Ferret them out as early in the renovation as possible.”

Step #9: Paint a Vision for the Future. The story matters. “73 percent of successful change efforts relied on stories.” A go-forward vision of the future. Most CEOs of corporate change failure attack previous leadership and focus their messages on the past.

Step #10: Consciously Collaborate. Strong internal collaboration is important to drive change. The group must understand why they are coming together and what they are doing. Collaboration can go too far as in the case where “connectivity is through the roof because everyone believes they need to be consulted on decisions.”

Step #11: Establish a Co-creation Mindset. “Though almost all successful culture change efforts begin top-down, it is critical to also get the buy-in of the workforce by creating a bottom-up (and middle-out) contribution mechanism.” Consider a Culture Hackathon. Ford “held a two-day event where employees worked in randomly selected teams to generate ideas to either fortify elements of the culture they loved or fix elements that weren’t serving the company well - #hackFORDculture.

Step #12: Provide Training on the Desired Behaviors. Train leaders at all levels on the desired behaviors so that they can model them. “While leaders as teachers is one of the most effective ways to reinforce behaviors, it’s clear that successful culture change relies on overall leadership training across the organization.”

MAINTAIN

Step #13: Make Onboarding About Relationships Versus Red Tape. “If you want to maintain that culture renovation you worked so hard to put in place, you can start by improving your onboarding process.” The most overlooked aspect of onboarding: “Helping the new hire establish a network of trusted subject matter experts who will contribute to that person’s career success.”

Step #14: Promote Those Who Best Represent the New. Behaviors that support the renovated culture should be rewarded. Showcase the “career advancement of individuals who best represent the new.”

Step #15: Change Performance Management Practices. Most important is the “frequency and usefulness of feedback, clearly defining the business purpose of the performance process, and aligning it with the culture and values of the organization.”

Step #16: Leverage Employee Affinity Groups. Interestingly, their research found that two-thirds of companies felt Employee Resource Groups were “more effective than other leadership development forums at developing leadership skills and competencies.” An ERGs primary benefit is to “raise awareness of the different groups of people that make up the workforce of most organizations.”

Step #17: Increase the Focus on Talent Mobility. “During a culture renovation, one of the most successful talent initiatives an organization can focus on is rotating talent to strengthen ‘the pack’ and ensure the desired behaviors are exhibited throughout the organization.”

Step #18: Don’t Underestimate the Value of External Sentiment. Use external feedback from places like Glassdoor, LinkedIn, and social media to monitor the progress of efforts to renovate your culture.

Culture Renovation is less theory and more how to. You will find case studies and interviews with the participants of successful culture change.

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Posted by Michael McKinney at 07:35 AM
| Comments (0) | This post is about Change , Human Resources , Management



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