Leadership & Culture – WDP1 (Culture Theory)
The Appleton Greene Corporate Training Program (CTP) for Leadership & Culture is provided by Ms. Hearn Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Personal Profile
Ms. Hearn is a Leadership and culture expert with proven success in facilitating transformational changes to ensure business sustainability and creating collaborative culture for organisational development. Adept at articulating learning and development interventions tailored for industry-specific needs. Prominent public speaker with demonstrated ability to leverage communication and interpersonal skills to develop future-proof leaders, cultivate diverse and inclusive workplaces and promote personal development. Strong history of forging trusting relationships with key stakeholders and clients to achieve company objectives. Expert at developing leadership and management training courses, seminars and workshops for C-level executives and employees.
Ms. Hearn has spent 25 years focusing on leadership as a driver of organisational culture, which started with her work as an internal consultant with American Express, leading a very successful culture enhancement initiative across Europe for 4 years.
As an international consultant, speaker, facilitator and executive coach, she’s worked in 25+ countries with clients such as American Express, McAfee, Royal Sun Alliance Group, H&M, Skanska, City & Guilds, Greenpeace, IKEA, MasterCard, SOS Children’s Villages, ABN AMRO and the Royal Bank of Scotland.
Ms. Hearn has co-written three multi-award-winning leadership books, and a fourth book will be published in 2024.
She has a degree in Marketing Economics from IHM Business School and an MBA in Leadership and Sustainability from the University of Cumbria and various certifications including Business Sustainability Management at the University of Cambridge, Artificial Intelligence in Business Strategy at MIT CSAIL, and Brain Based Coaching at NeuroLeadership Institute.
MOST Analysis
Mission Statement
“Culture eats strategy for breakfast” is a quote often attributed to renowned management consultant Peter Drucker, who pointed out that the best strategies and plans in the world will fail unless the culture of the company encourages/supports people to implement it. The first workshop sets the scene for the program by exploring what culture is, what the driving forces of culture are and how culture impacts on business results. We look at the facts of culture and debunk the myth that culture is something vague, soft and ‘fluffy’. As culture is ‘how things are done around here’ this needs to be intentionally shaped to be in line with vision, purpose and values, and to drive desired business results. Culture can be created, it can be changed, and it can be shaped and enhanced, and this requires understanding of the dynamic and how to do it. An important part of this is about populating the values, truly bringing them to life. Many organizations struggle with living the values, which often comes down to things like work processes and practices that are counterproductive to the values. We discuss how living the values can become reality, in an authentic way. We also look at examples of companies that have successfully built strong, clear, healthy cultures, what results they have achieved and what we can learn from them and implement for ourselves. Participants get to observe and explore the concept of culture in general terms and then apply insights to their own setting specifically.
Objectives
01. What is culture?: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. The driving forces of culture: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Values and culture: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. The financial value of cultures: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. How work systems can derail cultures: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. How culture supports strategies and operations: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Toxic cultures: departmental SWOT analysis; strategy research & development. 1 Month
08. The foundations of a healthy culture: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. How culture can be created, changed, and shaped: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Companies with strong, clear, healthy cultures: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Your company’s culture: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. The role of leaders: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. What is culture?: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. The driving forces of culture: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Values and culture: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. The financial value of cultures: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. How work systems can derail cultures: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. How culture supports strategies and operations: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Toxic cultures: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. The foundations of a healthy culture: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. How culture can be created, changed, and shaped: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Companies with strong, clear, healthy cultures: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Your company’s culture: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. The role of leaders: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyze What is culture?.
02. Create a task on your calendar, to be completed within the next month, to analyze The driving forces of culture.
03. Create a task on your calendar, to be completed within the next month, to analyze Values and culture.
04. Create a task on your calendar, to be completed within the next month, to analyze The financial value of cultures.
05. Create a task on your calendar, to be completed within the next month, to analyze How work systems can derail cultures.
06. Create a task on your calendar, to be completed within the next month, to analyze How culture supports strategies and operations.
07. Create a task on your calendar, to be completed within the next month, to analyze Toxic cultures.
08. Create a task on your calendar, to be completed within the next month, to analyze The foundations of a healthy culture.
09. Create a task on your calendar, to be completed within the next month, to analyze How culture can be created, changed, and shaped.
10. Create a task on your calendar, to be completed within the next month, to analyze Companies with strong, clear, healthy cultures.
11. Create a task on your calendar, to be completed within the next month, to analyze Your company’s culture.
12. Create a task on your calendar, to be completed within the next month, to analyze The role of leaders.
Introduction
Overview
Welcome to “Culture Theory”!
This is the first in a series of workshops in this exclusive 12-month program created for leaders and managers on a mission to deliver sustainable business results by elevating their leadership and making the most of their roles as culture shapers in their organisations.
“Culture eats strategy for breakfast” is a concept and quote often attributed to renowned management consultant Peter Drucker, who pointed out that the best strategies and plans in the world will fail unless the culture of the company encourages/supports people to implement it.
To illustrate the point, here are some examples to stimulate your thinking:
Risk-aversion and resistance to change: A culture that is risk-averse or resistant to change can create obstacles in executing strategies that require innovation, adaptation, or simply embracing new opportunities. Such a culture may stifle experimentation, creativity, and the ability to capitalise on emerging market shifts.
Lack of transparency and open communication: A culture that lacks transparency and open communication can hinder the effective execution of strategies. Without open dialogue and collaboration across teams and departments, there may be silos, misalignment, and a lack of shared understanding of the strategic objectives.
Hierarchical and autocratic decision-making: In cultures with a high-power distance and autocratic decision-making styles, strategies that require participative decision-making, employee empowerment, and bottom-up innovation may face resistance and lack of employee buy-in.
Individualistic and siloed mindsets: Cultures that prioritise individualism over collectivism and foster siloed mindsets can impede strategies requiring cross-functional collaboration, knowledge sharing, and a cohesive approach to achieving common goals.
Short-term orientation: Cultures with a short-term orientation and a focus on immediate gains may struggle to execute strategies that require long-term planning, investment, and a sustained commitment to strategic objectives.
Lack of accountability and ownership: Suppose a culture lacks a sense of accountability and ownership among employees. In that case, actively aligning employees with the strategic objectives and motivating them to realise the strategic vision can be challenging.
Rigid adherence to traditions and norms: Cultures deeply rooted in traditions and norms may resist strategies that require significant departures from established practices, limiting the organisation’s ability to adapt and innovate.
This is why getting a solid understanding of the dynamics of organisational culture is crucial for anyone in a leadership role.
This first workshop sets the scene for the program by exploring what culture is, what the driving forces of culture are and how culture impacts on business results. As culture is ‘how things are done around here’ this needs to be intentionally shaped to be in line with vision, purpose, and values, and to drive desired business results. Culture can be created, it can be changed, and it can be shaped and enhanced, and this requires understanding of the dynamics and how to do it. An important part of this is about populating the values, truly bringing them to life. Many organisations struggle with living the values, which often comes down to things like work processes and practices that are counterproductive to the values. We discuss how living the values can become reality, in an authentic way. We also look at examples of companies that have successfully built strong, clear, healthy cultures, what results they have achieved and what we can learn from them and implement for ourselves. Participants get to observe and explore the concept of culture in general terms and then apply insights to their own setting specifically.
‘Culture Theory’ gives a foundational understanding of culture through theory, case studies and peer-to-peer work. It provides the first jigsaw piece in the creative masterpiece that this program offers the opportunity for. It forges a route towards a more in-depth exploration in the following workshops. We will explore and discuss various aspects of culture, from what culture is to an overview of leaders’ roles as culture shapers. This thorough exploration and learning experience will elevate participants’ understanding and further enhance their leadership awareness and skills in the context of culture and beyond.
This first workshop lays the groundwork by ensuring that all participants are on the same page regarding their understanding of culture and why it matters in the context of goal achievement and business success. It’s also intended to create excitement about how transformational leadership and culture can be created, maintained, and evolved in a constantly changing world of business. The leadership-culture link is strong, but managers and leaders are often so busy with their day-to-day job that the link is often overlooked. Ultimately leadership is the act and art of influencing others. And many people leaders are not fully aware of what impact they are having on people around them and as a result are not aware of what culture they are creating within their teams or their organisations.
Leadership is the act, and art, influencing and impacting others,
which in turn creates the culture at work
Mandy Flint & Elisabet Vinberg Hearn
As we deep-dive in later workshops, the participants get to explore and master principles and skills essential for thriving in the rapidly evolving technology and business landscapes. This program takes leaders through a step-by-step process of becoming effective leaders as culture shapers; to build self-awareness and social awareness and becoming effective self-leaders, impactful influencers, and culture shapers. It will guide leaders on how to effectively choose behaviours, understand, and authentically shape culture, build collaborative environments and stakeholder experience and engagement, hence more effectively and consistently driving business outcomes and results.
How This Workshop Will Benefit Your Organisation
By deepening leaders’ awareness of what culture is and why it matters, your organisation starts to build a community of leaders and managers that are proactive, impactful culture carriers and shapers through their leadership. This means your organisation continuously supercharge its ability to attract and retain talent, drive innovation, and thrive in a fast-paced business world.
The peer-to-peer interaction and exploration also strengthen the connections across the leadership function and increase the opportunities for collective intelligence and innovation on a shared journey of enhanced leadership & culture. A stronger leadership network is created. Here are some specific benefits that can be achieved:
Fostering a shared understanding of organisational culture
When leaders learn about organisational culture, they better understand the company’s values, norms, and behaviours that create the work environment. This shared understanding enables leaders to align their actions, decisions, and communication with the desired culture, promoting organisational consistency and cohesion.
Identifying cultural strengths and weaknesses
Learning about culture allows leaders to identify and leverage the organisation’s cultural strengths to drive success. At the same time, they can recognise cultural weaknesses or toxic elements hindering performance, innovation, or employee engagement. This awareness allows leaders to address these issues proactively and implement strategies to cultivate a more positive and productive culture.
Developing cultural competence
Learning about culture equips leaders with the knowledge and skills to navigate cultural differences effectively. This cultural competence is particularly valuable in diverse organisations or when operating in global markets. Leaders can better understand and appreciate different perspectives, communicate more effectively, and foster an inclusive culture that maximises the strengths of a diverse workforce.
Facilitating organisational change and transformation
Organisational change often requires a cultural shift. When leaders understand the existing culture, they can spot possible barriers to change and develop strategies to overcome them. They can also communicate the need for change more effectively and align the desired future culture with the organisation’s strategic goals, increasing the chances of successful transformation.
Enhancing employee engagement and retention
Leaders who understand and embody the organisation’s culture can shape a more engaging and motivating workplace for employees. By aligning their leadership style and decision-making with the desired culture, they can foster a sense of belonging, purpose, and commitment among employees, ultimately improving employee engagement and retention.
Promoting continuous learning and improvement
Learning about culture encourages leaders to adopt a growth mindset and embrace continuous learning. As they gain insights into the organisation’s culture, they can identify improvement areas and implement initiatives to foster a learning culture that supports innovation, adaptability, and long-term success.
Case Study
(1) Culture transformation in Microsoft: Microsoft, once known for its rigid and competitive corporate culture under previous CEOs, faced challenges adapting to the rapidly changing tech landscape. 2014, Satya Nadella became CEO and immediately set out to transform the company’s culture and drive business growth. Satya Nadella’s transformational leadership style played a crucial role in driving cultural change and business results. By fostering leadership and a culture of customer-centricity, collaboration and innovation, Nadella empowered employees to drive growth and Microsoft regained its position as one of the most valuable tech companies in the world. And employees reported higher morale, engagement, and productivity. This case study demonstrates how effective leadership can influence organisational culture and drive tangible business outcomes, highlighting the importance of visionary leadership, empowerment, and innovation in navigating change and achieving success in today’s competitive business landscape.
(2) The turnaround at Nissan: In the late 1990s, Nissan Motor Company faced severe financial difficulties, including massive debt and declining market share. In 1999, Renault-Nissan Alliance CEO Carlos Ghosn was appointed to lead Nissan and implement a turnaround strategy to restore the company’s profitability and competitiveness. Ghosn’s transformational leadership was pivotal in revitalizing Nissan and positioning the company for long-term success. Ghosn empowered employees to drive change and achieve remarkable results in a highly competitive industry by instilling a culture of accountability, innovation, and global collaboration. This case study illustrates the impact of effective leadership on organisational culture and business performance. It demonstrates how visionary leadership can drive strategic transformation, foster innovation, and create value for stakeholders worldwide.
(3) A lift for KONE: KONE, a global elevator/lift and escalator industry leader, faced challenges in achieving its ambitious goal of becoming the industry leader. The company was plagued by internal concerns overriding customer needs, safety incidents, and operational inconsistencies. To address these issues, KONE’s former CEO, Vance Tang, viewed leadership development and culture change as the key to driving the desired business results. The company worked through a robust developmental process called “Transforming Your Organization.” KONE’s leadership team drove a cultural transformation by first changing themselves, then engaging the broader organisation, and ultimately delivering tangible business results. The collaborative, transparent approach helped align the company around a shared vision and the required leadership capabilities. The results? Safety incidents declined by over 70%, customer satisfaction tripled, employee engagement reached world-class levels and market share and profits rose substantially.
How This Workshop Will Benefit You
This workshop takes you on a thought-provoking journey of discovery, covering the relationship between leadership, culture, and business results in a comprehensive, engaging, and transformative way, equipping you with a deepened awareness of what culture truly is and how it affects employee experience, teamwork, customer and client experience and the bottom line.
Participants will gain tangible benefits that fuel career advancement and enhance leadership capabilities through a blend of theory and practical applications. The workshop is structured around twelve comprehensive modules covering crucial aspects of Culture Theory, such as values and culture, the financial value of cultures, and the foundations of a healthy culture, how culture supports strategies and operations, toxic cultures, and how culture can be created, changed, and shaped – all underscored by practical application through real-world case studies and cross-functional collaboration.
Designed to be highly interactive, the workshop includes group activities and case studies that provide a dynamic learning experience, alongside individual reflection. You will engage in scenarios that foster a deep understanding of culture while encouraging a well-rounded perspective on the role culture plays in an organisation. By working with your leadership peers, you will challenge your thinking around culture, drilling down below the surface of culture and understand the building blocks of culture to a new level. The conversations with your peers will provide plenty of food for thought that you can apply to your own leadership thought processes, behaviours, and habits.
Fostering alignment on organisational culture
The workshop provides a platform for leaders to align on the desired organisational culture, values, norms, and behaviours. This shared understanding enables leaders to consistently model and reinforce the desired culture across the company, promoting cohesion and unity.
Identifying cultural strengths and weaknesses
Through open discussions, leaders can identify the company’s cultural strengths that should be leveraged and weaknesses or toxic elements that need to be addressed. This awareness allows leaders to take proactive steps to cultivate a more positive and productive culture.
Developing cultural competence
The workshop equips leaders with the knowledge and skills to navigate cultural differences effectively, which is particularly valuable in diverse organisations or when operating globally. Leaders can better understand and appreciate different perspectives, communicate more effectively, and foster an inclusive environment.
Facilitating organisational change
When leaders understand the existing culture, they can identify possible barriers to change and develop plans to overcome them. They can also communicate the need for change more effectively and align the desired future culture with the organisation’s strategic goals.
Enhancing employee engagement and retention
Leaders who embody the desired culture can create a more engaging and motivating work environment for employees. By aligning their leadership style and decision-making with the desired culture, they can foster a sense of belonging, purpose, and commitment among employees, improving engagement and retention.
Encouraging open communication and collaboration
The workshop encourages open dialogue and collaboration among leaders from different teams or departments. This cross-functional interaction helps break down silos, improves understanding of interdependencies, and facilitates the setting of aligned and cohesive goals.
Promoting continuous learning and improvement
Participating this workshop encourages leaders to adopt a growth mindset and welcome ongoing learning. As they continuously gain insights into the organisation’s culture, they can identify areas for improvement and consider initiatives for implementation to foster a learning culture that supports innovation and long-term success. By participating in a culture workshop, leaders can better understand, shape, and align the organisation’s culture with its strategic objectives, fostering a more cohesive, engaged, and high-performing workforce.
By the end of the workshop, participants will have acquired not just theoretical knowledge but also practical skills, insights, and the confidence to talk about Culture Theory and initiate and drive conversations about culture as a driver or success within their organisations. This journey promises not only professional growth but also the enhancement of your organisation’s success, making it an invaluable investment in your future.
How This Workshop Will Benefit Individuals In Your Organization
When you become more of an expert at culture, you’ll see the dynamics at work clearer and you’ll be able to detect areas of culture that functions well and areas where culture could work better. And as your awareness grows, you’ll notice how people are affected by culture and as a result you’ll be able to understand their experience better and how you can help shape a work experience that enable employees to do their best work.
The range of benefits may vary, reflecting the specific strategic and operational context and the individual’s unique qualities, values, and aspirations. Nonetheless, benefits that many individuals can gain include:
Fostering alignment and shared understanding
The workshop provides a platform for leaders to align on the organisation’s vision, mission, values, and desired culture. This shared understanding enables leaders to consistently communicate and model the expected behaviours across the organisation, creating a more cohesive and unified culture. Aligning culture with strategy gives employees a clear sense of purpose and direction. They understand how their individual roles and contributions tie into the company’s overarching goals and vision. This fosters a stronger connection and commitment to the organisation’s mission, driving higher engagement.
Consistent behaviours and decision-making
An aligned culture reinforces the behaviours, values, and norms that support the company’s strategic objectives. Employees have clarity on what is expected of them and how to make decisions that propel the strategy forward. This consistency and clarity increase motivation and engagement.
Improving cross-functional collaboration
The workshop facilitates open communication and collaboration by bringing together leaders from different departments or functions. This cross-functional alignment and understanding can improve teamwork for everyone, remove silos, and shape a more cohesive and collaborative organisational culture.
Improved communication and collaboration
When culture and strategy are aligned, it makes it easier to communicate and collaborate between teams and divisions. Employees better understand interdependencies and can work cohesively towards common goals, fostering a more engaged and connected workforce.
Sense of belonging and pride
An aligned culture promotes a sense of belonging and pride among employees. They feel part of something larger than themselves and can identify with the organisation’s values and purpose. This emotional connection and alignment increase employee engagement and commitment.
Addressing cultural issues and bridging gaps
Leaders can openly discuss and identify potential cultural issues, toxic behaviours, or communication gaps that may exist within the organisation. They can then collectively develop strategies and action plans to address these issues and bridge any gaps, fostering a more positive and inclusive work environment for all employees.
Developing leadership capabilities
The workshop allows leaders to assess their leadership capabilities and identify areas for improvement. They can then develop action plans for training, coaching, or other initiatives to enhance their skills in areas such as communication, conflict resolution, or change management, enabling them to lead and engage their teams and individuals therein more effectively.
Defining and reinforcing cultural expectations
Leaders can collectively define and reinforce the desired cultural norms, behaviours, and expectations for the entire organisation. This clarity empowers leaders to hold themselves and their teams accountable for upholding the established cultural standards, ensuring individuals experience a consistent and positive work environment.
Engaging and empowering employees
When leaders are aligned and consistently role model the desired culture, it creates a sense of clarity and engagement for employees at all levels. Employees feel empowered to embrace and contribute to the organisational culture, increasing job satisfaction, productivity, and overall organisational success. By fostering alignment, addressing cultural issues, developing leadership capabilities, and engaging employees, this workshop can help leaders create a positive and productive work environment that benefits everyone in the organisation.
Talent attraction and retention
Companies with a robust and aligned culture can better attract and retain top talent who resonate with their values and strategic direction. When employees are engaged, this translates to a higher likelihood of staying with the organisation, reducing turnover and fostering a more stable and committed workforce.
Continuous improvement and innovation
When employees are engaged and aligned with the culture and strategy, they are more likely to contribute ideas for improvement and innovation. This continuous feedback loop helps the organisation adapt and evolve, further strengthening the alignment between culture and strategy.
This Workshop’s Role In Surmounting Business Challenges
This workshop can equip organisations and leaders to overcome business challenges in a number of ways. Here are some to consider:
Aligning leaders on the company’s vision and values
This workshop provides a platform for leaders to align on the company’s vision, mission, and core values. This alignment is crucial when dealing with challenges like scaling the business, mergers and acquisitions, or digital transformation. By reinforcing the company’s purpose and values, leaders can make decisions and lead their teams in a cohesive manner that upholds the desired and productive culture.
Identifying and addressing cultural issues
The workshop allows leaders to openly discuss and identify potential cultural issues or toxic behaviours that could potentially be hindering the organisation’s performance. Leaders can collectively brainstorm strategies to address these issues and establish guidelines or policies to shape a more productive and engaging work environment.
Closing communication gaps
This workshop encourages open communication and collaboration among leaders, bridging potential gaps or silos that may exist. Improved communication and alignment among top teams are essential for fostering a unified organisational culture and effectively navigating challenges.
Assessing capability gaps and developing action and behaviour plans
During the workshop, leaders can assess the skills, behaviours, culture, and capabilities required to overcome specific business challenges. They can then identify gaps and develop action plans for training, recruitment, or other initiatives to bridge them and equip the organisation for successful transformation.
Defining success measures and risk mitigation
The workshop allows leaders to explore and work towards consensus on measurable success criteria for cultural initiatives or organisational changes. By fostering alignment, open communication, and a shared understanding of the company’s culture and values, the workshop can empower leaders to navigate various business challenges more effectively and cohesively and comprehensively understand their impact.
Enabling growth and scaling
As a business grows and scales up operations, having a well-defined purpose, values, and behaviours becomes crucial. A strong culture acts as a catalyst, supporting and enabling the business ambitions during periods of growth by fostering alignment, collaboration, and a shared sense of purpose among employees.
Ensuring regulatory compliance
A robust organisational culture emphasising compliance and ethical conduct is essential in highly regulated industries like banking and financial services. An aligned culture ensures employees understand and adhere to necessary regulations, safeguarding the business from potential legal and reputational risks.
Facilitating mergers and acquisitions
Merging two distinct organisational cultures during a merger or acquisition can be challenging. A deliberate process of cultural alignment and redesign, prioritising employee well-being and fostering a unified culture, is vital for the long-term success of the newly formed entity.
Promoting leadership cohesion
Misaligned leadership teams operating in silos can lead to confusion, lack of direction, and a breakdown in the workplace culture. Ensuring that top teams work collaboratively and embody the desired culture is crucial for fostering a positive and unified organisational culture.
Driving digital transformation
Embracing digital transformation requires a culture that encourages adaptability, continuous learning, and employee well-being. Appropriate values and strategies that foster such a culture are essential for maximising innovation and ensuring a smooth transition.
Achieving high performance
A high-performance culture with a solid commitment to excellence, continuous improvement, collaboration, and innovation can help organisations consistently achieve exceptional results, overcome challenges and surpass goals.
Fostering diversity, equity, and inclusion (DEI)
Embracing diversity, promoting equity, and fostering an inclusive culture can lead to innovation, creativity, and a broader range of perspectives, ultimately driving business success in a diverse global marketplace.
Misconceptions About Culture
Culture is sometimes misunderstood, dismissed, or oversimplified. When that happens, the potential of culture as a driver of business success is easily overlooked. Some of the misconceptions often heard are:
Culture in an organisation is so big and complex that it can’t be changed. This is clearly not true. As the case studies above show, large organisations have successfully changed their cultures through self-assessment and concerted effort.
Culture is just a unifying force. There is a common misconception that organisational culture is solely a unifying force that brings people together and fosters cohesion. However, this overlooks the potentially divisive nature of culture, where divergent subcultures with conflicting goals and values can emerge, hindering productivity and goal attainment. This misconception fails to recognise the impact culture can have on organisational effectiveness.
Culture is just something ‘soft and fluffy’ that doesn’t impact the bottom line. Leaders and decision-makers may lack understanding or appreciation of the far-reaching impact that organisational culture can have on various aspects of an organisation, such as employee behaviour, innovation, productivity, and overall performance. Research shows a strong culture can significantly improve financial performance and organisational effectiveness, which is clearly shown in this workshop through for example an early culture study by professors Kotter and Heskett at Harvard Business School which showed that companies with performance-enhancing cultures with a focus on stakeholder relations consistently outperformed those without a performance enhancing culture when it came to revenue growth, employment growth, stock prices growth and net income growth.
Culture can’t be measured. Yes, it can be difficult to measure a multifaceted concept like culture objectively. This difficulty can lead to an undervaluation of its importance, as decision-makers may prioritise more tangible and easily quantifiable factors. But there are ways to measure culture, which may include employee engagement surveys and culture assessment questionnaires (e.g., the Organizational Culture Assessment Instrument and Hofstede’s Organizational Culture Questionnaire), behavioural data, relationship data, employee sentiment analysis, HR metrics, business performance metrics, structured cultural assessments and qualitative methods like ethnographic studies and observational research to understand the unwritten cultural norms and practices.
Culture happens organically and doesn’t need to be actively managed. Organisational culture can and should be deliberately developed through strategic thinking, attention to relationships, and transparency.
Once a strong culture is in place, it will care for itself. Culture must be continuously assessed and adapted as the organisation and its environment evolve. Cultural work is not a tick box exercise, it needs to be an important ongoing commitment for everyone in leadership.
The only way to change an organisation’s culture is to restart the business. This is a misconception, as significant cultural changes can happen without such drastic measures. It just comes down to identifying the key culture drivers that needs work to create better results. The case study on the cultural change journey of IBM under Lou Gerstner Jr clearly proves that point.
No one person can significantly impact their workplace’s culture. Workplace culture is the result of many individual interactions, so one person can make a difference by influencing others one interaction at a time.
A dysfunctional corporate culture is best revamped by changing the leadership at the top. Changing leadership alone does not guarantee culture change, as the underlying issues may remain. However, leaders at all levels need to understand their role as culture shapers.
Culture is just about visible factors like office layout and dress code. No. It’s equally, if not more, about the invisible factors-values, beliefs, and unspoken norms. These aspects are often harder to identify and understand, leading to an undervaluation of their influence on employee behaviour and decision-making processes. Understanding these invisible aspects is crucial for a comprehensive understanding of culture.
Culture is just about fun, perks, behaviours, and values. Culture is more than just these aspects – it’s also about alignment with strategy, purpose and how work gets done. It requires strategic systems thinking to understand interconnections, cause, and effect.
Culture is simply about people getting along. No. Culture encompasses much more than just interpersonal dynamics; it includes structure, values, norms, leadership, and commitment to purpose. The case study about VOLVO IT clearly showcases how culture is about so much more than people getting along.
There are no long-term effects of not working on culture. Decision-makers often tend to prioritise short-term metrics and overlook the long-term impacts of neglecting organisational culture. The adverse effects of a misaligned or toxic culture, such as decreased employee morale, productivity, and overall performance, may not be immediately apparent but can have severe consequences over time.
Yes, there are many common misconceptions about organisational culture that should be avoided and discouraged, as culture needs to be viewed as a vital part of an organisation’s strategic and operational ethos and plan. A strategy for success. Understanding these misconceptions is crucial for any business to make the most of the power of organisational culture. This course is designed to equip participants with the knowledge to recognize and avoid these misconceptions, ensuring they can lead their businesses as effective culture carriers and culture shapers. With a mix of theory and practical application, the course aims to inspire and engender a culture mindset that is both effective and sustainable.
Executive Summary
Chapter 1: What is culture?
This manual, “What is culture?”, is designed to navigate participants through the foundation of organisational culture so that they can see the pillars of culture, the importance of culture and why culture is a crucial responsibility for all leaders. We’ll explore the concept of organisational culture, its history, its growing importance and what the ingredients of culture are, and we explore a few different culture models. It helps them become more aware of how culture fits within their organisations. This engaging manual introduces the core concepts and pillars that make up all cultures and enriches the learning experience with practical examples and case studies, engaging peer-to-peer discussions/exercises, and comprehensive insights, making it an invaluable resource for leaders who want to become influential culture shapers to drive sustainable business results.
Culture below the surface
This section clarifies how much of culture is ‘invisible’ or ‘below the surface’ which can make it challenging to fully identify. So much of culture is implicit, and natural, and we pick up the clues, even if subconsciously, by noticing how things work at work, yet may often find it hard to make tangible and specific.
Culture theory and models
In this segment, we explore the concept of organisational culture, its growing importance and what the ingredients of culture are and explore a few different culture models and how they can help us understand the foundation for culture at work. We look at the 8 types of Company Culture, the Competing Values Framework, The Iceberg Model, The Hofstede Model, and the McKinsey 7-S Model.
Why culture matters
Numerous studies point to the importance of culture, like a recent Price Waterhouse Cooper study where a majority (67%) of survey respondents said that culture is more important than strategy or operations. According to research by Deloitte, 94% of executives and 88% of employees believe that a distinct corporate culture is essential to business success.
A big factor why culture matters is because it can be an employee magnet. People love working for companies with great cultures, where they are valued, where they learn and grow, where they can make a difference. It helps organizations attract and retain talent, and provide value to customers through consistency, clarity, cohesion, collaboration, and creativity.
“What is culture?” offers an insightful experience, provides food for thought and inspires participants to engage with the topic of culture. The manual is intended to ignite a passion for leadership & culture excellence, encouraging leaders to reflect on how culture plays a daily role in their organisation. With its useful coverage, practical insights, and engaging presentation, this course manual is a vital first step for anyone looking to understand culture profoundly and in a sensible and meaningful way.
Chapter 2: The driving forces of culture
In “The driving forces of culture” we continue the discussion by reflecting on what it is that makes a culture be and function a certain way. What are the driving forces of culture? We talk about how dynamic and fluid culture can be, and how it can be left to shape at will or how leaders and organisations to play a part in what those driving forces are. Cultural awareness is crucial in today’s globalised market, and part of that awareness is looking at for example different national cultures within an international company. A case study from American Express Europe gives a glimpse into how that can work.
Culture is a living, dynamic thing
In this segment we find that culture is not static, it evolves, it responds to changes, it’s dynamic. We look at the concepts of culture blockers, culture enablers and how sub-cultures can be formed. This dynamism of culture is one of the key reasons why culture needs to be a strategic consideration for all leaders in a company.
Organically or intentionally?
This section explores the idea that a culture can be left to develop organically or be intentionally created and shaped. There is always a culture, whether worked on or not. This section highlights how organisations with a proactive approach to organisational culture are those where management takes the initiative to define and implement an ideal corporate culture. While organisational culture develops naturally over time, taking a more proactive approach will enable you to shape it deliberately.
Cultural drivers
There are some very clear drivers of culture, influenced by industry, national culture, policies, and procedures. But that’s not the whole story, human behaviour tends to be the most powerful driver. Let’s look at some culture blockers and culture enablers, to become better at spotting behavioural habits and what they lead to.
There can be organizational sub-cultures linked to different countries, business functions and local business conditions. A sales function’s version of organizational culture can be different to that of the finance function for example, just as the tech team tends to be different to a marketing team. The purpose and dynamics of each function drive certain behavioural habits. Sales teams are often more competitive, where finance teams are more data focused. This is also an expression of personality, where data shows that based on personal preferences, people are often attracted to careers and professions that allow them to use their preferences and strengths.
“The driving forces of culture” intends to make culture more tangible and actionable by focusing on the various drivers that leaders can intentionally apply to create, shape and enhance their organisational culture, this course manual deepens the understanding of how culture happens and how to think about one’s role as a leader therein.
Chapter 3: Values and culture
In “Values and culture” we discuss the link between values and culture and clarify how company values are the underlying beliefs and principles that guide an organisation’s behaviour and decision-making processes, while culture manifests those values in day-to-day interactions, behaviours, and practices.
Most organisations have socialised their vision, purpose, and values with their employees, and often also to external stakeholders. That is an important step, but unless people (leaders in particular) behave and act in accordance with the vision, purpose, and values, it all becomes an empty façade that creates suspicion, and disengagement.
Levels of culture
As the model below shows, there are levels of culture, from completely visual at the top to more vague assumptions at the bottom. Another way of describing this is that some components are explicit while others are implicit). It highlights the need to make culture as clear and explicit and understood as possible, to communicate expectations and agree shared ‘ground rules’.
We look at a Heineken case study to see how the Dutch brewery giant has embedded values that drives a successful culture.
Different types of values
We explain the difference between core and aspirational values, highlighting that value work is not just about the here and now but also about the values an organisation may want to develop to achieve future aspirations.
Defining organisational values
Here we spotlight how organisations can benefit from involving employees at all levels in the process of value definition. Research suggests that employees who know their company’s core values are likelier to feel engaged, and companies with a clear purpose can see higher returns. We challenge participants to think about how crucial it is to not just identify values but also ensure that these values are actionable, distinctive, and linked to results.
When there is a gap between professed culture and lived values
In this segment we reflect on how there can be a marked difference between the professed values culture and the values and culture employees (and potentially other stakeholders) experience. We look at a study using Glassdoor which showed that there was no or little correlation between cultural ambitions and what employees experienced. This highlights the challenge of bringing corporate values alive, getting beyond the value statement, making the values relevant and applicable.
Making the values come alive
Here we make the clear case for how values need to be lived to become the drivers of a healthy and successful culture. Effective values are role-modelled by leaders at all levels, so when wanting to populate the values, leaders need to spend time agreeing on the values and their role in organisational success.
‘Values and culture’ creates an awareness of the dynamics between values and culture and showcases how thinking strategically about this is not just a ‘nice to have’ but a business success factor. Leaders are busy people and with the keen appreciation of how values can take principles and make them into habits, they can translate into a success strategy.
Chapter 4: The financial value of cultures
In the 4th manual, the focus is on how a healthy organisational culture is not just a ‘nice to have’ but how it can be a healthy bottom-line lever. We firmly crush any perceptions that culture is something soft, peripheral, or inconsequential by pointing to numerous studies on how culture is directly link to financial performance. A case study about hotel group Ritz-Carlton sheds light on the performance-enhancing potential of culture.
Culture is more than a ‘nice to have’
Until relatively recently the financial value of organizational cultures was vague as best. There is now plenty of data that outlines the effect culture has on factors such as share value and profitability. Here we dive into data to discover the how fundamental culture is to sustainable business success.
An early culture study (over 11 years) by professors Kotter and Heskett at Harvard Business School showed that companies with performance-enhancing cultures with a focus on stakeholder relations consistently outperformed those without a performance enhancing culture when it came to revenue growth, employment growth, stock prices growth and net income growth.
The cost of unproductive cultures
In this segment we look at how costly non-effective cultures can be, where for example employee attrition is a common outcome. According to a 2023 survey by The Chartered Management Institute highlighting the dangers of managers failing to rein in toxic behaviour, almost one-third of UK workers claim they have left a job due to a poisonous workplace culture. The study revealed widespread anxiety about the management standard and how it affects employees’ daily lives.
Culture is definitely not ‘soft and fluffy’
Looking at cause and effect, we reveal how a strong culture of integrity and ethical behaviour can mitigate risks related to compliance and reputation. This is because companies with a strong ethical culture are less likely to face fines, legal issues, or reputational damage that can have significant financial implications.
“The financial value of cultures”, provides the hard-hitting financial facts of culture and debunks the myth that culture is something vague, soft, and ‘fluffy’. This is why taking culture very seriously, indeed making culture a part of the strategic journey for any organisation – is a lever for sustainable profitability and success. Organisational culture significantly impacts the bottom line due to its profound influence on business operations and employee behaviour.
By doing so it provides the participants with further motivation to become proactive culture shapers in their companies, and outstanding leaders of both people and business.
Chapter 5: How work systems can derail cultures
In this manual, we turn our attention to how the way an organisation’s way of operating can disrupt and even derail well-intentioned cultures. We highlight how work systems (infrastructure, tech solutions, goals, processes, procedures etc) and culture need to weave together like a double helix in the DNA structure to be effective. They need to work in harmony, considering each other along the way, leverage each other. If they don’t the results can be dire. Negative work cultures resulting from flawed work systems can significantly impact employee engagement and happiness. Employees who do not feel valued, supported, or satisfied with their work environment are less likely to be productive and stay with the company, as highlighted in the previous manual.
Here’s an example: Imagine two teams in an organisation that above all say that their culture is one of collaboration. The teams are both responsible for the customer experience, but their goals are not aligned or even work against each other, which means the way they operate makes it difficult to collaborate. It creates frustration and drive them away from collaboration rather than the other way around. It derails the collaborative culture. Now imagine what would happen if they instead sat down and reviewed how the work systems can be made more efficient and targeted to support the culture and business results.
There are various ways in which work systems can weaken work cultures.
Work systems resistant to innovation or change might impede growth and the ability to adjust to changing market conditions. Processes that are extremely rigid and resistant to change have the potential to undercut a culture that values innovation and ongoing improvement.
Work systems that do not hold employees accountable for low performance or bad behaviour can foster a culture of mediocrity and toxicity. This can lead to resentment, distrust, and high turnover among talented employees who feel their efforts are not recognised or valued. When work systems are at odds with the expressed culture, inefficiency and frustration follow.
Tech Solutions
We all love great tech solutions! But they need to be appropriately and wisely applied. Here we look at how tech solutions need to be carefully considered and chosen to ensure they don’t become culture derailers. The proliferation of technology in the workplace can lead to an “always-on” culture, where employees feel pressured to be constantly available and responsive to work communications, leading to burnout and work-life balance issues. We can see how this is a great opportunity for leaders to think strategically about how tech is used.
Hierarchy, bureaucracy
Here we look at how work systems emphasising strict hierarchies can hinder open communication and collaboration and empowerment and how environments with excessive bureaucracy can slow down decision-making and innovation, making the organisation less agile and responsive to changes.
Workplace, Processes & Procedures, Goals
In these three sections the focus is on workspace design, goal alignment (or lack thereof) and processes & procedures that clash with intended culture can backfire.
‘How work systems can derail cultures’ takes the participant on a journey of recognising the dangers of not recognising the importance of how work systems and culture need to be work in harmony to deliver results.
Chapter 6: How culture supports strategies and operations
In the sixth manual, the attention is on culture can support strategies and operations. There can be many benefits with organisational culture. With a clear, strong, healthy culture, people know exactly how to operate, and this helps them to act with integrity for the good of all constituents, supporting the brand and the brand experience. In a fast-changing world, it allows people to act with integrity and confidence without necessarily having all the answers, supported by the culture. We investigate how this can result in consistent, long-term success, where actions and behaviours are supported by practices and processes. We show how the culture can supercharge everything from strategy execution to talent retention. We also highlight the role of an effective culture in driving employee engagement up, fuelling profitability and productivity, as found in Gallup research.
Digital Transformation & AI
In this segment we look at Digital Transformation & AI as a specific example of strategic and operational change where culture, if utilised effectively, can be a major success factor. Key success factors of digital transformation are revealed. We also reflect on what the difference between change and real, lasting transformation is. Real transformation requires more than a well-managed project (to change processes, digital tools, organisational structure etc) – it requires a transformation of mindset, habits, and culture.
Measuring the impact
The focus here is on how organisations can employ various methods to assess alignment, employee engagement, and performance to measure the impact of culture on business strategy. We explore some practical ways to measure this impact, such as tracking business outcomes and using frameworks for alignment.
Some other solutions
We share a couple of examples of solutions for driving desired employee habits and behaviour to counteract an always-on culture like the once discussed in manual #5.
A famous IBM case study provides great food for thought when it comes culture change in a world of business. Among other things, we discover how IBM introduced a more decentralised organisational structure, breaking down silos and encouraging collaboration across different units, and how they encouraged a more entrepreneurial mindset, risk-taking, and innovation, which represented a major cultural shift.
‘How culture supports strategies and operations’ makes the clear case for the results that be achieved with culture and strategies/operations are aligned and work in harmony and optimise results. Participants get a clearer and clearer picture of the pivotal role culture plays in organisational culture, which is a major factor in the kind of success leaders can help drive.
Chapter 7: Toxic cultures
In ‘Toxic cultures’ we turn our attention to unhealthy cultures and what they crate in their wake. Many people have experienced toxic cultures resulting in employee turnover, inefficient job execution and customer experience. A toxic work environment is one where management methods, procedures, and rules are prevalent and encourage unproductive behaviours and disagreements among team members. Employees may suffer as a result, as it may hinder their ability to be productive and advance their careers. Ineffective organizational cultures can also result in employee unhappiness and dissatisfaction, which motivates them to search for alternative employment. It’s a costly reality for numerous organisation. We dive into a study in the tech industry by MIT Sloan that shows that toxic cultures tend to be disrespectful, non-inclusive, unethical, cutthroat, and abusive – and what they result in.
Where toxic cultures come from
In this segment we discover common toxic cultures causes such as ineffective workplace practices, management styles, a lack of core company values, unfriendly competition, gossip, a lack of trust among employees, and high turnover rates. Participants are also encouraged to think about what leaders can do to prioritise employee well-being, promote healthy communication and involve employees in issues that affect them.
How toxic cultures look and feel
The focus here is on what it looks and feels like when you are in a toxic, unproductive culture. We explore toxicity indicators such as lack of trust, high turnover rates, and disrespectful interactions.
What toxic cultures lead to
This segment draws the attention to the effect of toxic cultures not just on employees but ultimately also on how the organisation is seen externally by important stakeholders like customers, investors, and potential employees. Toxic cultures are a costly business.
How to overcome/reverse toxic cultures
In the last segment we introduce participants to some strategies for reversing toxic cultures, which will be followed with much more throughout the whole of the programme. One of the most important strategies is building trust. By implementing this and other proven strategies, organisations can work towards creating a more positive and healthier work culture for their employees.
In ’Toxic cultures’ participants learn that toxic cultures are bad both for people and for business and must be addressed in a non-toxic way. Sometimes when aiming to address toxicity, leaders may inadvertently behave in toxic ways (e.g. shaming people publicly), so it’s worth thinking through the foundation of a healthy culture and behaving in accordance with that.
Chapter 8: The foundations of a healthy culture
In the 8th manual, we immerse ourselves in the foundations, the building blocks of a healthy culture. We look at how a healthy organisational culture that is well-articulated can make a significant difference in a variety of outcomes. A great culture encourages teamwork and positive interactions, providing employees with the freedom to think creatively. This is oh so important as employees that believe in their organisation’s mission put in more effort on an individual basis and perform better while being more engaged.
Culture success doesn’t happen by chance, there is a recognisable pattern to it. A healthy culture tends to have similar foundations – like leaders living the values (not just talking about them in a theoretical way), respectful and ethical behaviours, inclusivity, transparency, and care for others. And of course, a shared purpose, a vision to aim for.
Shared purpose
In its simplest form, shared purpose is the idea that everyone in your organisation is aligned to the same mission. People know how they make a difference, why they are needed. Where there is a shared purpose, drive, collaboration, and a shared sense of belonging follow. In this segment we also dissect motivation and a model for releasing intrinsic motivation which empowers employees to be good self-leaders.
Leaders leading the values
Here we talk about behavioural focus, for leaders to understand the power of behaviours when it comes to shaping a great culture. Respectful and ethical behaviours are at the heart of healthy cultures. The behavioural aspect is often overlooked, there tends to be more focus on WHAT to do (processes, tasks, actions) than HOW to be (behaviours, behavioural habits).
Inclusivity
Diverse and inclusive organisations are more likely to capture new markets, innovate faster, and outperform their competitors, highlighting the strategic advantage of inclusivity in the workplace. We engage around the topic that inclusivity is a key foundation that impacts work culture significantly by fostering a sense of belonging, enhancing productivity, promoting innovation, improving decision-making, and boosting employee engagement.
Care for others
Another crucial foundation for a healthy culture is caring for others. Studies show that a culture of care can mitigate the negative impact of challenging events and create opportunities for positive organisational change. Companies can boost performance, retention rates, and overall success by investing in employees’ well-being and professional growth. We show how do this in a practical way.
In ‘The foundations of a healthy culture’ we recognise that culture success doesn’t happen by chance, there is a recognisable pattern to it. A healthy culture tends to have similar foundations – like respectful and ethical behaviours, inclusivity, transparency, and care for others. This makes culture shaping easier for the leaders as they can walk away with tangible solutions for being an impactful culture shaper.
Chapter 9: How culture can be created, changed, and shaped
In this manual we make the case that shaping culture is a strategic and operational concern for organisations. That it’s a success driver to use as a vehicle for business strategies and plans. This whole program is about how we can do this. However, people are often unsure how to do this, as culture can feel vague and abstract. We share insights into how a culture can be shaped from scratch and how an existing culture can be changed or shaped. As mentioned before, it starts with the leaders. An organisation’s culture is greatly influenced by its leaders. Leaders must embody the culture and explain the significance of culture change, provide an example of the appropriate behaviours and values, and provide the tools and resources necessary to effectuate it to improve culture transformation.
Creating a culture from scratch
In this segment, we are reminded that company culture is fundamentally about individuals’ daily experiences with an organisation. It’s about ‘how things are done here’. Consequently, when creating a company culture, it is critical to consider how to implement that culture in the workplace. The company culture is the employees’ daily work experience, so when creating a culture, it’s essential to consider how to integrate the culture into the day-to-day work experience. Here we also share 9 steps to consider when creating a culture from scratch.
Changing or shaping an existing culture
We look at several proven tactics for changing or shaping an existing culture, including diagnosis the diagnosing the current culture and defining the desired future state culture, and how to activate the desired culture. And we get another glimpse from a culture shaping initiative in American Express Europe in a case study.
Considering cultural diversity in international organisations
We also explore what to do when wanting to shape the company culture of a global and culturally diverse company, and share six strategies that can help to weave in national and regional cultures.
Why changing or shaping a culture can be challenging
It’s only natural that a shift in culture can create all sorts of hurdles. As culture is at times unclear in its building blocks, it requires careful consideration to be successful in a culture change. Here we explore some of the reasons why it can be challenging.
By recognising these challenges and implementing strategies to overcome them, organisations can more effectively navigate the complexities of cultural transformation. We look at a case study on VOLVO IT, a global company based in Gothenburg, Sweden, that embarked on a culture change journey from 2000 to 2011. The company proactively transformed its culture to align with changing market conditions and strategic ambitions.
In ‘How culture can be created, changed, and shaped’ participants learn about the reality of culture creation and shaping and how it’s not a quick fix but a commitment over time. Another building block to becoming an impactful leader and culture shaper is firmly added to the structure we are building through this program.
Chapter 10: Companies with strong, clear, healthy cultures
What do companies with strong, clear, healthy cultures, do? How does culture act as a differentiator and success factor? What can we learn from them? How does culture act as a differentiator?
These are the questions we ponder in the 10th manual, when we get inspired by companies that have successfully built strong, clear, healthy cultures, what results they have achieved and what we can learn from them and implement for ourselves.
Some examples of strong, healthy cultures
We look at IKEA, the global home-furnishing and furniture chain. The clarity of culture has allowed them to hire for culture fit, as they know that this is a win both for their co-workers and for the company. It also helps co-workers to operate effectively, make decisions and solve challenges – the values and behaviours that shape the culture become an enabler of empowerment.
We also at Southwest Airlines, with values of gratitude, celebration, and acknowledgement as crucial building blocks to Southwest’s service culture. The company’s outstanding financial results reflect the success of Southwest Airlines’ culture. In 2020 Southwest was the only significant airline operating profitably for more than 45 years straight.
In addition, we dissect the culture success factors of retailers Patagonia and Zappos, and recognise that all of these successful cultures are not down to chance. No, each of these companies are very aware of their power of differentiation when it comes to culture, and they use it consistently and well.
Potential pitfall of strong cultures
In this segment we take a critical look at the dangers of having too strong or clear a culture. If a culture focuses too much on ‘cultural fit’ when employing people, they may find that there is too much similarity and not enough diversity. This can lead to groupthink and lack of challenge on ideas and plans. And this may in turn work against the culture too if for example innovation is a pillar of the culture. It’s of course important that the culture feels good and motivating to prospective new starters, but that must not stop ambitions to hire for ‘cultural add’ too. While often considered a positive force for organisational success, company culture can also have unintended adverse effects if not managed carefully, which we explore here.
In ‘Companies with strong, clear, healthy cultures’ we make the theory of culture very real by looking at well-known companies that show how strong cultures are at the core of all their successful business journeys.
Chapter 11: Your company’s culture
In the 11th manual the participants get to think about their own company culture and starting to apply some of the learning from the previous manuals. In this section we will start to explore how to start thinking about and understanding the culture where you work, including reflecting on questions like: What has shaped your company culture? Is it industry, geographical location, the world around, changes, political decisions?
We also look at a case study which exemplifies how culture assessments can uncover critical insights into an organisation’s strengths, weaknesses, and areas for improvement. They ultimately guide strategic initiatives toward fostering a more aligned and effective organisational culture.
Understanding and measuring a company’s culture
We look at some suggestions for what leaders can do to delve into and understand their company’s culture on a deeper level. Measuring the effectiveness of a company’s culture can be challenging, but with the right methods and metrics we can come to an understanding of a culture and evaluating it. We look at 14 different such methods and metrics, including reviewing artefacts and doing regular pulse checks. By combining traditional methods like employee surveys with studying day-to-day behaviours, leaders can comprehensively understand their company’s culture and work towards fostering a positive and thriving organisational environment.
Challenges in measuring a company’s culture
In this section we explore common challenges when it comes to measuring culture, and how by addressing these challenges through innovative measurement approaches, organisations can gain valuable insights into their company culture, find improvement areas, and effectively align their cultural initiatives with strategic objectives.
The four competing values framework
Here we refer back to the “four competing values” framework, which Robert Quinn and John Rohrbaugh created in 1983 as we reflect on how businesses often describe their present cultural model in their mission statement, which is accessible to all employees. This particular model is just one of the corporate culture models that business leaders can use when wanting to describe the culture.
Participants get to reflect on which of these competing values are most effectively describing their culture.
• Clan is a cooperative, very materialistic civilization.
• Adhocracy is a highly externalized culture that places a strong focus on innovation.
• Hierarchy is a top-down, extremely professional culture that is often more controlling.
• Market is an energetic, competitive professional culture. Organisations that are very focused on their work are likely included in this group.
“Your company’s culture” gives the participants the opportunity to consider their own culture and start applying more of the learning from previous models where the focus has been more theoretical and focused on other organisations.
Chapter 12: The role of leaders
“The role of leaders” manual primes leaders to start thinking in earnest about their role as culture shapers, ahead of workshop 2 which focuses exclusively on this. By now it is already clear that leaders play a BIG role in healthy cultures, that they are the scene setters for culture, and that their actions and behaviours are magnified and multiplied. Leaders are the greatest culture shapers, and this topic is further explored throughout the program, starting in the next workshop.
Leadership is the act, and art, influencing and impacting others,
which in turn creates the culture at work
Mandy Flint & Elisabet Vinberg Hearn
Leader as role model
In this segment we focus on how leaders are role models for their teams and organisations. Yes, a crucial component of any organisation is its leadership. Leadership actions and behaviour define standards for both team members and clients. Leadership can be a critical factor in determining how an organisation’s culture is shaped. All employees of a company contribute to determining its organisational culture, but leaders have the most power to change it. We shine a light on how leaders must be conscious of how their actions affect the organisational culture, through their work ethic, integrity, and ethics overall, communication, adaptability and resilience, accountability, collaboration, empathy and more. Do they provide a good example? Do their behaviours reflect the principles of the organisation? We create the recognition that these are crucial issues for leaders to think about.
Leader as trust creator
In this segment we turn our attention to the importance of building trust as a leader and how while we might be able to function without trust for a while, over time, a lack of trust erodes engagement and happiness in the workplace. Additionally, working in a hybrid environment places additional demands on trust, requiring intentional focus because trust relies heavily on human connection, which is more problematic when it is not regularly experienced face-to-face. We work through various ways of building trust, including transparency, consistent commitment and much more. And we use at a case study that points to the value of trust, including studies that indicate that nations with high levels of generalised trust experience higher income growth rates than nations with low levels of trust. Trust lowers transaction costs, which in turn makes wealth generation easier.
We pay particular attention to how important consistent leadership is. Trust is built when people see consistency in words and deeds. Consistency is often overlooked as a leadership quality, but It’s a crucial one. We look at different ways of measuring the impact of consistent leadership on company culture.
‘The role of leaders’ encourages participants to become more proactive about their roles as culture shapers. It tempts them to dive into the next workshop and enhance their impact as leaders not just of the business and people, but of culture. Imagine how exciting it is to think ‘as ‘culture eats strategy for breakfast’, I am starting to see more clearly how I can make culture support strategy’!
Curriculum
Leadership & Culture – WDP1 (Culture Theory)
- What is culture?
- The driving forces of culture
- Values and culture
- The financial value of cultures
- How work systems can derail cultures
- How culture supports strategies and operations
- Toxic cultures
- The foundations of a healthy culture
- How culture can be created, changed, and shaped
- Companies with strong, clear, healthy cultures
- Your company’s culture
- The role of leaders
Distance Learning
Introduction
Welcome to Appleton Greene and thank you for enrolling on the Leadership & Culture corporate training program. You will be learning through our unique facilitation via distance-learning method, which will enable you to practically implement everything that you learn academically. The methods and materials used in your program have been designed and developed to ensure that you derive the maximum benefits and enjoyment possible. We hope that you find the program challenging and fun to do. However, if you have never been a distance-learner before, you may be experiencing some trepidation at the task before you. So we will get you started by giving you some basic information and guidance on how you can make the best use of the modules, how you should manage the materials and what you should be doing as you work through them. This guide is designed to point you in the right direction and help you to become an effective distance-learner. Take a few hours or so to study this guide and your guide to tutorial support for students, while making notes, before you start to study in earnest.
Study environment
You will need to locate a quiet and private place to study, preferably a room where you can easily be isolated from external disturbances or distractions. Make sure the room is well-lit and incorporates a relaxed, pleasant feel. If you can spoil yourself within your study environment, you will have much more of a chance to ensure that you are always in the right frame of mind when you do devote time to study. For example, a nice fire, the ability to play soft soothing background music, soft but effective lighting, perhaps a nice view if possible and a good size desk with a comfortable chair. Make sure that your family know when you are studying and understand your study rules. Your study environment is very important. The ideal situation, if at all possible, is to have a separate study, which can be devoted to you. If this is not possible then you will need to pay a lot more attention to developing and managing your study schedule, because it will affect other people as well as yourself. The better your study environment, the more productive you will be.
Study tools & rules
Try and make sure that your study tools are sufficient and in good working order. You will need to have access to a computer, scanner and printer, with access to the internet. You will need a very comfortable chair, which supports your lower back, and you will need a good filing system. It can be very frustrating if you are spending valuable study time trying to fix study tools that are unreliable, or unsuitable for the task. Make sure that your study tools are up to date. You will also need to consider some study rules. Some of these rules will apply to you and will be intended to help you to be more disciplined about when and how you study. This distance-learning guide will help you and after you have read it you can put some thought into what your study rules should be. You will also need to negotiate some study rules for your family, friends or anyone who lives with you. They too will need to be disciplined in order to ensure that they can support you while you study. It is important to ensure that your family and friends are an integral part of your study team. Having their support and encouragement can prove to be a crucial contribution to your successful completion of the program. Involve them in as much as you can.
Successful distance-learning
Distance-learners are freed from the necessity of attending regular classes or workshops, since they can study in their own way, at their own pace and for their own purposes. But unlike traditional internal training courses, it is the student’s responsibility, with a distance-learning program, to ensure that they manage their own study contribution. This requires strong self-discipline and self-motivation skills and there must be a clear will to succeed. Those students who are used to managing themselves, are good at managing others and who enjoy working in isolation, are more likely to be good distance-learners. It is also important to be aware of the main reasons why you are studying and of the main objectives that you are hoping to achieve as a result. You will need to remind yourself of these objectives at times when you need to motivate yourself. Never lose sight of your long-term goals and your short-term objectives. There is nobody available here to pamper you, or to look after you, or to spoon-feed you with information, so you will need to find ways to encourage and appreciate yourself while you are studying. Make sure that you chart your study progress, so that you can be sure of your achievements and re-evaluate your goals and objectives regularly.
Self-assessment
Appleton Greene training programs are in all cases post-graduate programs. Consequently, you should already have obtained a business-related degree and be an experienced learner. You should therefore already be aware of your study strengths and weaknesses. For example, which time of the day are you at your most productive? Are you a lark or an owl? What study methods do you respond to the most? Are you a consistent learner? How do you discipline yourself? How do you ensure that you enjoy yourself while studying? It is important to understand yourself as a learner and so some self-assessment early on will be necessary if you are to apply yourself correctly. Perform a SWOT analysis on yourself as a student. List your internal strengths and weaknesses as a student and your external opportunities and threats. This will help you later on when you are creating a study plan. You can then incorporate features within your study plan that can ensure that you are playing to your strengths, while compensating for your weaknesses. You can also ensure that you make the most of your opportunities, while avoiding the potential threats to your success.
Accepting responsibility as a student
Training programs invariably require a significant investment, both in terms of what they cost and in the time that you need to contribute to study and the responsibility for successful completion of training programs rests entirely with the student. This is never more apparent than when a student is learning via distance-learning. Accepting responsibility as a student is an important step towards ensuring that you can successfully complete your training program. It is easy to instantly blame other people or factors when things go wrong. But the fact of the matter is that if a failure is your failure, then you have the power to do something about it, it is entirely in your own hands. If it is always someone else’s failure, then you are powerless to do anything about it. All students study in entirely different ways, this is because we are all individuals and what is right for one student, is not necessarily right for another. In order to succeed, you will have to accept personal responsibility for finding a way to plan, implement and manage a personal study plan that works for you. If you do not succeed, you only have yourself to blame.
Planning
By far the most critical contribution to stress, is the feeling of not being in control. In the absence of planning we tend to be reactive and can stumble from pillar to post in the hope that things will turn out fine in the end. Invariably they don’t! In order to be in control, we need to have firm ideas about how and when we want to do things. We also need to consider as many possible eventualities as we can, so that we are prepared for them when they happen. Prescriptive Change, is far easier to manage and control, than Emergent Change. The same is true with distance-learning. It is much easier and much more enjoyable, if you feel that you are in control and that things are going to plan. Even when things do go wrong, you are prepared for them and can act accordingly without any unnecessary stress. It is important therefore that you do take time to plan your studies properly.
Management
Once you have developed a clear study plan, it is of equal importance to ensure that you manage the implementation of it. Most of us usually enjoy planning, but it is usually during implementation when things go wrong. Targets are not met and we do not understand why. Sometimes we do not even know if targets are being met. It is not enough for us to conclude that the study plan just failed. If it is failing, you will need to understand what you can do about it. Similarly if your study plan is succeeding, it is still important to understand why, so that you can improve upon your success. You therefore need to have guidelines for self-assessment so that you can be consistent with performance improvement throughout the program. If you manage things correctly, then your performance should constantly improve throughout the program.
Study objectives & tasks
The first place to start is developing your program objectives. These should feature your reasons for undertaking the training program in order of priority. Keep them succinct and to the point in order to avoid confusion. Do not just write the first things that come into your head because they are likely to be too similar to each other. Make a list of possible departmental headings, such as: Customer Service; E-business; Finance; Globalization; Human Resources; Technology; Legal; Management; Marketing and Production. Then brainstorm for ideas by listing as many things that you want to achieve under each heading and later re-arrange these things in order of priority. Finally, select the top item from each department heading and choose these as your program objectives. Try and restrict yourself to five because it will enable you to focus clearly. It is likely that the other things that you listed will be achieved if each of the top objectives are achieved. If this does not prove to be the case, then simply work through the process again.
Study forecast
As a guide, the Appleton Greene Leadership & Culture corporate training program should take 12-18 months to complete, depending upon your availability and current commitments. The reason why there is such a variance in time estimates is because every student is an individual, with differing productivity levels and different commitments. These differentiations are then exaggerated by the fact that this is a distance-learning program, which incorporates the practical integration of academic theory as an as a part of the training program. Consequently all of the project studies are real, which means that important decisions and compromises need to be made. You will want to get things right and will need to be patient with your expectations in order to ensure that they are. We would always recommend that you are prudent with your own task and time forecasts, but you still need to develop them and have a clear indication of what are realistic expectations in your case. With reference to your time planning: consider the time that you can realistically dedicate towards study with the program every week; calculate how long it should take you to complete the program, using the guidelines featured here; then break the program down into logical modules and allocate a suitable proportion of time to each of them, these will be your milestones; you can create a time plan by using a spreadsheet on your computer, or a personal organizer such as MS Outlook, you could also use a financial forecasting software; break your time forecasts down into manageable chunks of time, the more specific you can be, the more productive and accurate your time management will be; finally, use formulas where possible to do your time calculations for you, because this will help later on when your forecasts need to change in line with actual performance. With reference to your task planning: refer to your list of tasks that need to be undertaken in order to achieve your program objectives; with reference to your time plan, calculate when each task should be implemented; remember that you are not estimating when your objectives will be achieved, but when you will need to focus upon implementing the corresponding tasks; you also need to ensure that each task is implemented in conjunction with the associated training modules which are relevant; then break each single task down into a list of specific to do’s, say approximately ten to do’s for each task and enter these into your study plan; once again you could use MS Outlook to incorporate both your time and task planning and this could constitute your study plan; you could also use a project management software like MS Project. You should now have a clear and realistic forecast detailing when you can expect to be able to do something about undertaking the tasks to achieve your program objectives.
Performance management
It is one thing to develop your study forecast, it is quite another to monitor your progress. Ultimately it is less important whether you achieve your original study forecast and more important that you update it so that it constantly remains realistic in line with your performance. As you begin to work through the program, you will begin to have more of an idea about your own personal performance and productivity levels as a distance-learner. Once you have completed your first study module, you should re-evaluate your study forecast for both time and tasks, so that they reflect your actual performance level achieved. In order to achieve this you must first time yourself while training by using an alarm clock. Set the alarm for hourly intervals and make a note of how far you have come within that time. You can then make a note of your actual performance on your study plan and then compare your performance against your forecast. Then consider the reasons that have contributed towards your performance level, whether they are positive or negative and make a considered adjustment to your future forecasts as a result. Given time, you should start achieving your forecasts regularly.
With reference to time management: time yourself while you are studying and make a note of the actual time taken in your study plan; consider your successes with time-efficiency and the reasons for the success in each case and take this into consideration when reviewing future time planning; consider your failures with time-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future time planning; re-evaluate your study forecast in relation to time planning for the remainder of your training program to ensure that you continue to be realistic about your time expectations. You need to be consistent with your time management, otherwise you will never complete your studies. This will either be because you are not contributing enough time to your studies, or you will become less efficient with the time that you do allocate to your studies. Remember, if you are not in control of your studies, they can just become yet another cause of stress for you.
With reference to your task management: time yourself while you are studying and make a note of the actual tasks that you have undertaken in your study plan; consider your successes with task-efficiency and the reasons for the success in each case; take this into consideration when reviewing future task planning; consider your failures with task-efficiency and the reasons for the failures in each case and take this into consideration when reviewing future task planning; re-evaluate your study forecast in relation to task planning for the remainder of your training program to ensure that you continue to be realistic about your task expectations. You need to be consistent with your task management, otherwise you will never know whether you are achieving your program objectives or not.
Keeping in touch
You will have access to qualified and experienced professors and tutors who are responsible for providing tutorial support for your particular training program. So don’t be shy about letting them know how you are getting on. We keep electronic records of all tutorial support emails so that professors and tutors can review previous correspondence before considering an individual response. It also means that there is a record of all communications between you and your professors and tutors and this helps to avoid any unnecessary duplication, misunderstanding, or misinterpretation. If you have a problem relating to the program, share it with them via email. It is likely that they have come across the same problem before and are usually able to make helpful suggestions and steer you in the right direction. To learn more about when and how to use tutorial support, please refer to the Tutorial Support section of this student information guide. This will help you to ensure that you are making the most of tutorial support that is available to you and will ultimately contribute towards your success and enjoyment with your training program.
Work colleagues and family
You should certainly discuss your program study progress with your colleagues, friends and your family. Appleton Greene training programs are very practical. They require you to seek information from other people, to plan, develop and implement processes with other people and to achieve feedback from other people in relation to viability and productivity. You will therefore have plenty of opportunities to test your ideas and enlist the views of others. People tend to be sympathetic towards distance-learners, so don’t bottle it all up in yourself. Get out there and share it! It is also likely that your family and colleagues are going to benefit from your labors with the program, so they are likely to be much more interested in being involved than you might think. Be bold about delegating work to those who might benefit themselves. This is a great way to achieve understanding and commitment from people who you may later rely upon for process implementation. Share your experiences with your friends and family.
Making it relevant
The key to successful learning is to make it relevant to your own individual circumstances. At all times you should be trying to make bridges between the content of the program and your own situation. Whether you achieve this through quiet reflection or through interactive discussion with your colleagues, client partners or your family, remember that it is the most important and rewarding aspect of translating your studies into real self-improvement. You should be clear about how you want the program to benefit you. This involves setting clear study objectives in relation to the content of the course in terms of understanding, concepts, completing research or reviewing activities and relating the content of the modules to your own situation. Your objectives may understandably change as you work through the program, in which case you should enter the revised objectives on your study plan so that you have a permanent reminder of what you are trying to achieve, when and why.
Distance-learning check-list
Prepare your study environment, your study tools and rules.
Undertake detailed self-assessment in terms of your ability as a learner.
Create a format for your study plan.
Consider your study objectives and tasks.
Create a study forecast.
Assess your study performance.
Re-evaluate your study forecast.
Be consistent when managing your study plan.
Use your Appleton Greene Certified Learning Provider (CLP) for tutorial support.
Make sure you keep in touch with those around you.
Tutorial Support
Programs
Appleton Greene uses standard and bespoke corporate training programs as vessels to transfer business process improvement knowledge into the heart of our clients’ organizations. Each individual program focuses upon the implementation of a specific business process, which enables clients to easily quantify their return on investment. There are hundreds of established Appleton Greene corporate training products now available to clients within customer services, e-business, finance, globalization, human resources, information technology, legal, management, marketing and production. It does not matter whether a client’s employees are located within one office, or an unlimited number of international offices, we can still bring them together to learn and implement specific business processes collectively. Our approach to global localization enables us to provide clients with a truly international service with that all important personal touch. Appleton Greene corporate training programs can be provided virtually or locally and they are all unique in that they individually focus upon a specific business function. They are implemented over a sustainable period of time and professional support is consistently provided by qualified learning providers and specialist consultants.
Support available
You will have a designated Certified Learning Provider (CLP) and an Accredited Consultant and we encourage you to communicate with them as much as possible. In all cases tutorial support is provided online because we can then keep a record of all communications to ensure that tutorial support remains consistent. You would also be forwarding your work to the tutorial support unit for evaluation and assessment. You will receive individual feedback on all of the work that you undertake on a one-to-one basis, together with specific recommendations for anything that may need to be changed in order to achieve a pass with merit or a pass with distinction and you then have as many opportunities as you may need to re-submit project studies until they meet with the required standard. Consequently the only reason that you should really fail (CLP) is if you do not do the work. It makes no difference to us whether a student takes 12 months or 18 months to complete the program, what matters is that in all cases the same quality standard will have been achieved.
Support Process
Please forward all of your future emails to the designated (CLP) Tutorial Support Unit email address that has been provided and please do not duplicate or copy your emails to other AGC email accounts as this will just cause unnecessary administration. Please note that emails are always answered as quickly as possible but you will need to allow a period of up to 20 business days for responses to general tutorial support emails during busy periods, because emails are answered strictly within the order in which they are received. You will also need to allow a period of up to 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Please therefore kindly allow for this within your time planning. All communications are managed online via email because it enables tutorial service support managers to review other communications which have been received before responding and it ensures that there is a copy of all communications retained on file for future reference. All communications will be stored within your personal (CLP) study file here at Appleton Greene throughout your designated study period. If you need any assistance or clarification at any time, please do not hesitate to contact us by forwarding an email and remember that we are here to help. If you have any questions, please list and number your questions succinctly and you can then be sure of receiving specific answers to each and every query.
Time Management
It takes approximately 1 Year to complete the Leadership & Culture corporate training program, incorporating 12 x 6-hour monthly workshops. Each student will also need to contribute approximately 4 hours per week over 1 Year of their personal time. Students can study from home or work at their own pace and are responsible for managing their own study plan. There are no formal examinations and students are evaluated and assessed based upon their project study submissions, together with the quality of their internal analysis and supporting documents. They can contribute more time towards study when they have the time to do so and can contribute less time when they are busy. All students tend to be in full time employment while studying and the Leadership & Culture program is purposely designed to accommodate this, so there is plenty of flexibility in terms of time management. It makes no difference to us at Appleton Greene, whether individuals take 12-18 months to complete this program. What matters is that in all cases the same standard of quality will have been achieved with the standard and bespoke programs that have been developed.
Distance Learning Guide
The distance learning guide should be your first port of call when starting your training program. It will help you when you are planning how and when to study, how to create the right environment and how to establish the right frame of mind. If you can lay the foundations properly during the planning stage, then it will contribute to your enjoyment and productivity while training later. The guide helps to change your lifestyle in order to accommodate time for study and to cultivate good study habits. It helps you to chart your progress so that you can measure your performance and achieve your goals. It explains the tools that you will need for study and how to make them work. It also explains how to translate academic theory into practical reality. Spend some time now working through your distance learning guide and make sure that you have firm foundations in place so that you can make the most of your distance learning program. There is no requirement for you to attend training workshops or classes at Appleton Greene offices. The entire program is undertaken online, program course manuals and project studies are administered via the Appleton Greene web site and via email, so you are able to study at your own pace and in the comfort of your own home or office as long as you have a computer and access to the internet.
How To Study
The how to study guide provides students with a clear understanding of the Appleton Greene facilitation via distance learning training methods and enables students to obtain a clear overview of the training program content. It enables students to understand the step-by-step training methods used by Appleton Greene and how course manuals are integrated with project studies. It explains the research and development that is required and the need to provide evidence and references to support your statements. It also enables students to understand precisely what will be required of them in order to achieve a pass with merit and a pass with distinction for individual project studies and provides useful guidance on how to be innovative and creative when developing your Unique Program Proposition (UPP).
Tutorial Support
Tutorial support for the Appleton Greene Leadership & Culture corporate training program is provided online either through the Appleton Greene Client Support Portal (CSP), or via email. All tutorial support requests are facilitated by a designated Program Administration Manager (PAM). They are responsible for deciding which professor or tutor is the most appropriate option relating to the support required and then the tutorial support request is forwarded onto them. Once the professor or tutor has completed the tutorial support request and answered any questions that have been asked, this communication is then returned to the student via email by the designated Program Administration Manager (PAM). This enables all tutorial support, between students, professors and tutors, to be facilitated by the designated Program Administration Manager (PAM) efficiently and securely through the email account. You will therefore need to allow a period of up to 20 business days for responses to general support queries and up to 30 business days for the evaluation and assessment of project studies, because all tutorial support requests are answered strictly within the order in which they are received. This does not include weekends or public holidays. Consequently you need to put some thought into the management of your tutorial support procedure in order to ensure that your study plan is feasible and to obtain the maximum possible benefit from tutorial support during your period of study. Please retain copies of your tutorial support emails for future reference. Please ensure that ALL of your tutorial support emails are set out using the format as suggested within your guide to tutorial support. Your tutorial support emails need to be referenced clearly to the specific part of the course manual or project study which you are working on at any given time. You also need to list and number any questions that you would like to ask, up to a maximum of five questions within each tutorial support email. Remember the more specific you can be with your questions the more specific your answers will be too and this will help you to avoid any unnecessary misunderstanding, misinterpretation, or duplication. The guide to tutorial support is intended to help you to understand how and when to use support in order to ensure that you get the most out of your training program. Appleton Greene training programs are designed to enable you to do things for yourself. They provide you with a structure or a framework and we use tutorial support to facilitate students while they practically implement what they learn. In other words, we are enabling students to do things for themselves. The benefits of distance learning via facilitation are considerable and are much more sustainable in the long-term than traditional short-term knowledge sharing programs. Consequently you should learn how and when to use tutorial support so that you can maximize the benefits from your learning experience with Appleton Greene. This guide describes the purpose of each training function and how to use them and how to use tutorial support in relation to each aspect of the training program. It also provides useful tips and guidance with regard to best practice.
Tutorial Support Tips
Students are often unsure about how and when to use tutorial support with Appleton Greene. This Tip List will help you to understand more about how to achieve the most from using tutorial support. Refer to it regularly to ensure that you are continuing to use the service properly. Tutorial support is critical to the success of your training experience, but it is important to understand when and how to use it in order to maximize the benefit that you receive. It is no coincidence that those students who succeed are those that learn how to be positive, proactive and productive when using tutorial support.
Be positive and friendly with your tutorial support emails
Remember that if you forward an email to the tutorial support unit, you are dealing with real people. “Do unto others as you would expect others to do unto you”. If you are positive, complimentary and generally friendly in your emails, you will generate a similar response in return. This will be more enjoyable, productive and rewarding for you in the long-term.
Think about the impression that you want to create
Every time that you communicate, you create an impression, which can be either positive or negative, so put some thought into the impression that you want to create. Remember that copies of all tutorial support emails are stored electronically and tutors will always refer to prior correspondence before responding to any current emails. Over a period of time, a general opinion will be arrived at in relation to your character, attitude and ability. Try to manage your own frustrations, mood swings and temperament professionally, without involving the tutorial support team. Demonstrating frustration or a lack of patience is a weakness and will be interpreted as such. The good thing about communicating in writing, is that you will have the time to consider your content carefully, you can review it and proof-read it before sending your email to Appleton Greene and this should help you to communicate more professionally, consistently and to avoid any unnecessary knee-jerk reactions to individual situations as and when they may arise. Please also remember that the CLP Tutorial Support Unit will not just be responsible for evaluating and assessing the quality of your work, they will also be responsible for providing recommendations to other learning providers and to client contacts within the Appleton Greene global client network, so do be in control of your own emotions and try to create a good impression.
Remember that quality is preferred to quantity
Please remember that when you send an email to the tutorial support team, you are not using Twitter or Text Messaging. Try not to forward an email every time that you have a thought. This will not prove to be productive either for you or for the tutorial support team. Take time to prepare your communications properly, as if you were writing a professional letter to a business colleague and make a list of queries that you are likely to have and then incorporate them within one email, say once every month, so that the tutorial support team can understand more about context, application and your methodology for study. Get yourself into a consistent routine with your tutorial support requests and use the tutorial support template provided with ALL of your emails. The (CLP) Tutorial Support Unit will not spoon-feed you with information. They need to be able to evaluate and assess your tutorial support requests carefully and professionally.
Be specific about your questions in order to receive specific answers
Try not to write essays by thinking as you are writing tutorial support emails. The tutorial support unit can be unclear about what in fact you are asking, or what you are looking to achieve. Be specific about asking questions that you want answers to. Number your questions. You will then receive specific answers to each and every question. This is the main purpose of tutorial support via email.
Keep a record of your tutorial support emails
It is important that you keep a record of all tutorial support emails that are forwarded to you. You can then refer to them when necessary and it avoids any unnecessary duplication, misunderstanding, or misinterpretation.
Individual training workshops or telephone support
Please be advised that Appleton Greene does not provide separate or individual tutorial support meetings, workshops, or provide telephone support for individual students. Appleton Greene is an equal opportunities learning and service provider and we are therefore understandably bound to treat all students equally. We cannot therefore broker special financial or study arrangements with individual students regardless of the circumstances. All tutorial support is provided online and this enables Appleton Greene to keep a record of all communications between students, professors and tutors on file for future reference, in accordance with our quality management procedure and your terms and conditions of enrolment. All tutorial support is provided online via email because it enables us to have time to consider support content carefully, it ensures that you receive a considered and detailed response to your queries. You can number questions that you would like to ask, which relate to things that you do not understand or where clarification may be required. You can then be sure of receiving specific answers to each individual query. You will also then have a record of these communications and of all tutorial support, which has been provided to you. This makes tutorial support administration more productive by avoiding any unnecessary duplication, misunderstanding, or misinterpretation.
Tutorial Support Email Format
You should use this tutorial support format if you need to request clarification or assistance while studying with your training program. Please note that ALL of your tutorial support request emails should use the same format. You should therefore set up a standard email template, which you can then use as and when you need to. Emails that are forwarded to Appleton Greene, which do not use the following format, may be rejected and returned to you by the (CLP) Program Administration Manager. A detailed response will then be forwarded to you via email usually within 20 business days of receipt for general support queries and 30 business days for the evaluation and assessment of project studies. This does not include weekends or public holidays. Your tutorial support request, together with the corresponding TSU reply, will then be saved and stored within your electronic TSU file at Appleton Greene for future reference.
Subject line of your email
Please insert: Appleton Greene (CLP) Tutorial Support Request: (Your Full Name) (Date), within the subject line of your email.
Main body of your email
Please insert:
1. Appleton Greene Certified Learning Provider (CLP) Tutorial Support Request
2. Your Full Name
3. Date of TS request
4. Preferred email address
5. Backup email address
6. Course manual page name or number (reference)
7. Project study page name or number (reference)
Subject of enquiry
Please insert a maximum of 50 words (please be succinct)
Briefly outline the subject matter of your inquiry, or what your questions relate to.
Question 1
Maximum of 50 words (please be succinct)
Maximum of 50 words (please be succinct)
Question 3
Maximum of 50 words (please be succinct)
Question 4
Maximum of 50 words (please be succinct)
Question 5
Maximum of 50 words (please be succinct)
Please note that a maximum of 5 questions is permitted with each individual tutorial support request email.
Procedure
* List the questions that you want to ask first, then re-arrange them in order of priority. Make sure that you reference them, where necessary, to the course manuals or project studies.
* Make sure that you are specific about your questions and number them. Try to plan the content within your emails to make sure that it is relevant.
* Make sure that your tutorial support emails are set out correctly, using the Tutorial Support Email Format provided here.
* Save a copy of your email and incorporate the date sent after the subject title. Keep your tutorial support emails within the same file and in date order for easy reference.
* Allow up to 20 business days for a response to general tutorial support emails and up to 30 business days for the evaluation and assessment of project studies, because detailed individual responses will be made in all cases and tutorial support emails are answered strictly within the order in which they are received.
* Emails can and do get lost. So if you have not received a reply within the appropriate time, forward another copy or a reminder to the tutorial support unit to be sure that it has been received but do not forward reminders unless the appropriate time has elapsed.
* When you receive a reply, save it immediately featuring the date of receipt after the subject heading for easy reference. In most cases the tutorial support unit replies to your questions individually, so you will have a record of the questions that you asked as well as the answers offered. With project studies however, separate emails are usually forwarded by the tutorial support unit, so do keep a record of your own original emails as well.
* Remember to be positive and friendly in your emails. You are dealing with real people who will respond to the same things that you respond to.
* Try not to repeat questions that have already been asked in previous emails. If this happens the tutorial support unit will probably just refer you to the appropriate answers that have already been provided within previous emails.
* If you lose your tutorial support email records you can write to Appleton Greene to receive a copy of your tutorial support file, but a separate administration charge may be levied for this service.
How To Study
Your Certified Learning Provider (CLP) and Accredited Consultant can help you to plan a task list for getting started so that you can be clear about your direction and your priorities in relation to your training program. It is also a good way to introduce yourself to the tutorial support team.
Planning your study environment
Your study conditions are of great importance and will have a direct effect on how much you enjoy your training program. Consider how much space you will have, whether it is comfortable and private and whether you are likely to be disturbed. The study tools and facilities at your disposal are also important to the success of your distance-learning experience. Your tutorial support unit can help with useful tips and guidance, regardless of your starting position. It is important to get this right before you start working on your training program.
Planning your program objectives
It is important that you have a clear list of study objectives, in order of priority, before you start working on your training program. Your tutorial support unit can offer assistance here to ensure that your study objectives have been afforded due consideration and priority.
Planning how and when to study
Distance-learners are freed from the necessity of attending regular classes, since they can study in their own way, at their own pace and for their own purposes. This approach is designed to let you study efficiently away from the traditional classroom environment. It is important however, that you plan how and when to study, so that you are making the most of your natural attributes, strengths and opportunities. Your tutorial support unit can offer assistance and useful tips to ensure that you are playing to your strengths.
Planning your study tasks
You should have a clear understanding of the study tasks that you should be undertaking and the priority associated with each task. These tasks should also be integrated with your program objectives. The distance learning guide and the guide to tutorial support for students should help you here, but if you need any clarification or assistance, please contact your tutorial support unit.
Planning your time
You will need to allocate specific times during your calendar when you intend to study if you are to have a realistic chance of completing your program on time. You are responsible for planning and managing your own study time, so it is important that you are successful with this. Your tutorial support unit can help you with this if your time plan is not working.
Keeping in touch
Consistency is the key here. If you communicate too frequently in short bursts, or too infrequently with no pattern, then your management ability with your studies will be questioned, both by you and by your tutorial support unit. It is obvious when a student is in control and when one is not and this will depend how able you are at sticking with your study plan. Inconsistency invariably leads to in-completion.
Charting your progress
Your tutorial support team can help you to chart your own study progress. Refer to your distance learning guide for further details.
Making it work
To succeed, all that you will need to do is apply yourself to undertaking your training program and interpreting it correctly. Success or failure lies in your hands and your hands alone, so be sure that you have a strategy for making it work. Your Certified Learning Provider (CLP) and Accredited Consultant can guide you through the process of program planning, development and implementation.
Reading methods
Interpretation is often unique to the individual but it can be improved and even quantified by implementing consistent interpretation methods. Interpretation can be affected by outside interference such as family members, TV, or the Internet, or simply by other thoughts which are demanding priority in our minds. One thing that can improve our productivity is using recognized reading methods. This helps us to focus and to be more structured when reading information for reasons of importance, rather than relaxation.
Speed reading
When reading through course manuals for the first time, subconsciously set your reading speed to be just fast enough that you cannot dwell on individual words or tables. With practice, you should be able to read an A4 sheet of paper in one minute. You will not achieve much in the way of a detailed understanding, but your brain will retain a useful overview. This overview will be important later on and will enable you to keep individual issues in perspective with a more generic picture because speed reading appeals to the memory part of the brain. Do not worry about what you do or do not remember at this stage.
Content reading
Once you have speed read everything, you can then start work in earnest. You now need to read a particular section of your course manual thoroughly, by making detailed notes while you read. This process is called Content Reading and it will help to consolidate your understanding and interpretation of the information that has been provided.
Making structured notes on the course manuals
When you are content reading, you should be making detailed notes, which are both structured and informative. Make these notes in a MS Word document on your computer, because you can then amend and update these as and when you deem it to be necessary. List your notes under three headings: 1. Interpretation – 2. Questions – 3. Tasks. The purpose of the 1st section is to clarify your interpretation by writing it down. The purpose of the 2nd section is to list any questions that the issue raises for you. The purpose of the 3rd section is to list any tasks that you should undertake as a result. Anyone who has graduated with a business-related degree should already be familiar with this process.
Organizing structured notes separately
You should then transfer your notes to a separate study notebook, preferably one that enables easy referencing, such as a MS Word Document, a MS Excel Spreadsheet, a MS Access Database, or a personal organizer on your cell phone. Transferring your notes allows you to have the opportunity of cross-checking and verifying them, which assists considerably with understanding and interpretation. You will also find that the better you are at doing this, the more chance you will have of ensuring that you achieve your study objectives.
Question your understanding
Do challenge your understanding. Explain things to yourself in your own words by writing things down.
Clarifying your understanding
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your understanding.
Question your interpretation
Do challenge your interpretation. Qualify your interpretation by writing it down.
Clarifying your interpretation
If you are at all unsure, forward an email to your tutorial support unit and they will help to clarify your interpretation.
Qualification Requirements
The student will need to successfully complete the project study and all of the exercises relating to the Leadership & Culture corporate training program, achieving a pass with merit or distinction in each case, in order to qualify as an Accredited Leadership & Culture Specialist (ALCS). All monthly workshops need to be tried and tested within your company. These project studies can be completed in your own time and at your own pace and in the comfort of your own home or office. There are no formal examinations, assessment is based upon the successful completion of the project studies. They are called project studies because, unlike case studies, these projects are not theoretical, they incorporate real program processes that need to be properly researched and developed. The project studies assist us in measuring your understanding and interpretation of the training program and enable us to assess qualification merits. All of the project studies are based entirely upon the content within the training program and they enable you to integrate what you have learnt into your corporate training practice.
Leadership & Culture – Grading Contribution
Project Study – Grading Contribution
Customer Service – 10%
E-business – 05%
Finance – 10%
Globalization – 10%
Human Resources – 10%
Information Technology – 10%
Legal – 05%
Management – 10%
Marketing – 10%
Production – 10%
Education – 05%
Logistics – 05%
TOTAL GRADING – 100%
Qualification grades
A mark of 90% = Pass with Distinction.
A mark of 75% = Pass with Merit.
A mark of less than 75% = Fail.
If you fail to achieve a mark of 75% with a project study, you will receive detailed feedback from the Certified Learning Provider (CLP) and/or Accredited Consultant, together with a list of tasks which you will need to complete, in order to ensure that your project study meets with the minimum quality standard that is required by Appleton Greene. You can then re-submit your project study for further evaluation and assessment. Indeed you can re-submit as many drafts of your project studies as you need to, until such a time as they eventually meet with the required standard by Appleton Greene, so you need not worry about this, it is all part of the learning process.
When marking project studies, Appleton Greene is looking for sufficient evidence of the following:
Pass with merit
A satisfactory level of program understanding
A satisfactory level of program interpretation
A satisfactory level of project study content presentation
A satisfactory level of Unique Program Proposition (UPP) quality
A satisfactory level of the practical integration of academic theory
Pass with distinction
An exceptional level of program understanding
An exceptional level of program interpretation
An exceptional level of project study content presentation
An exceptional level of Unique Program Proposition (UPP) quality
An exceptional level of the practical integration of academic theory
Preliminary Analysis
LEADERSHIP IMPACT
Book
‘The Leader’s Guide to Impact’ by Mandy Flint & Elisabet Vinberg Hearn. This book breaks down the concept of leadership impact and how to achieve it with different stakeholder groups and for specific outcomes.
Articles
Forbes has many informative articles on the topic of leadership impact including ‘Leadership is more than just efficiency and processes’.
ORGANISATIONAL CULTURE
Book
‘Supercharged Leader: Develop your mind and skillset to deal with anything’ by Mandy Flint & Elisabet Vinberg Hearn. This book helps you develop the mind and skillset needed to build an organisational culture to effectively navigate and excel in a fast-paced world of change.
Articles
Harvard Business Review has many good articles on the topic of organisational culture including ‘¨Company culture is everyone’s responsibility’¨.
NATIONAL CULTURES
Book
‘The Culture Map: Decoding How People Think, Lead, and Get Things Done Across Cultures’ by Erin Meyer. A great book for anyone working in an international setting/organisation who wants to understand other countries and cultures better to work and communicate effectively across borders.
Course Manuals 1-12
Course Manual 1: What is culture?
Culture is about people first and foremost. It’s about ‘how things get done around here’ which is driven by human action, interaction, and behaviour. In a fearful culture people are afraid to make mistakes which often leads to overly cautious behaviour, erosion of trust and low engagement. In a psychologically safe culture on the other hand, people dare to speak up, try new things which typically leads to greater collaboration and innovation.
A company’s values are reflected in its corporate culture. This comprises the company’s core values, working methods, and employees’ standards for best practices. The procedures used at work, the organisation’s attitude towards innovation, and the company’s collaborative values further define a culture. Social engagement and community involvement are examples of other factors that can also influence a company’s culture model. All cultures are unique, as they are shaped by the people that work there.
All employees’ behaviours are influenced and guided by the values, expectations, and practices that make up the organisation’s culture. See it as the assortment of characteristics that define your business. While a dysfunctional workplace culture brings out tendencies that can impede even the most successful firms, a great workplace culture showcases beneficial features that enhance performance. We’ll explore toxic and healthy cultures in depth in later sections.
Although both can assist in defining it, organizational goals and a mission statement should not be confused with culture. When you observe how a CEO handles a crisis, how a team adjusts to changing client needs, or how management corrects an employee who makes a mistake, you are observing business culture in action. Press releases or policy statements don’t build culture; consistent and genuine behaviour does.
“Culture is the deeper level of basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic ‘taken for granted’ fashion an organization’s view of itself and its environment.”
Edgar Schein, Author and former MIT professor
CULTURE BELOW THE SURFACE
Sometimes culture is described as the perks you get as an employee; the space you work in, the fussball table or the coffee station and the Friday after work drinks – or your ability to work from home. But as much as all those things can be expressions of cultural intention, they are not creating the emotional impact on people that behaviours and lived values do. The perks and activities can play a role in employees (and other stakeholders) experience but unless supported by behaviours they become inefficient drivers of culture, or merely a fun and relatively superficial activity.
Culture can be hard to pinpoint and analyse, but that doesn’t mean there isn’t one. There is always a culture, and the better organisations and leaders understand their own culture and the role culture plays and how it is created, the more they can influence and shape it. When the value of culture is fully understood and pursued, it becomes a powerful lever for sustainable business results. Yes, it can be challenging to pinpoint the exact factors that shape a particular culture, but it is much simpler to observe its effects. For instance, the culture of a small, informal software company may differ significantly from that of a large financial institution, which may, in turn, differ from that of a hospital or university.
New employees may only fully comprehend and assimilate the culture for a while or do so relatively quickly, depending on how well the organisation has implemented its onboarding strategy.
Aristotle said, “We are what we repeatedly do.” And that is how culture is shaped, it’s the daily habits, actions and behaviours that becomes the reality of culture. Not what we say, but what we do – repeatedly. So much of culture is implicit and we pick up the clues, even if subconsciously, by noticing how things work at work. In response to the global pandemic in 2020 onwards, working from home became the norm for many. People were even hired without ever having met their manager and went on to work without meeting any of their peers in person. This proved a big challenge from a cultural perspective. Where employees had previously been able to pick up implicit expectations, habits, and routines, now they were missing that dimension of deep understanding about the company and its culture. As a result, leaders had to start being more explicit about the culture, which hasn’t always been easy. Making something that you have learnt implicitly yourself can be hard make explicit. And yet, for anyone who wants to make the most of their culture, there needs to be a way to talk about culture and make it clear and explicit, to de-mystify it.
CULTURE THEORY
Let’s explore the concept of organizational culture, its growing importance and what the ingredients of culture are and explore a few different culture models.
Organizational culture as a concept was first coined in a 1951 book by Elliott Jaques called ‘The Changing Culture of a Factory’, and the concept started appearing in management studies in the late 1970’s. Since then, it’s been a topic of ongoing interest for leaders and organizations, but it’s been more theoretical and conceptual than practical and applicable. Culture has therefore often had the unfair label of being something vague, soft, and ‘fluffy’. That’s not true. Culture is the strongest driving force of an organization. It’s ‘how things get done around here’; it’s made up by explicit procedures as well as implicit behavioural habits. It affects all functions with an organization, the employee and customer experience and ultimately the bottom line. Do culture right and you’ll attract the best employees, loyal customers, and satisfied stakeholders.
What gets measured gets done. Yes, incentives have a significant impact on culture. What people are motivated to do is the best indicator of what they will do. By incentives, we refer to the entire range of benefits that organisation members may receive, including monetary compensation, non-cash benefits like status and opportunities for growth, and sanctions. But from where do incentives originate? There could be a chicken-and-egg situation here. Are patterns of behaviour the result of incentives, or have incentives been formed by culturally ingrained beliefs and values? Probably a bit of both.
“Treat employees like they make a difference, and they will.”
Jim Goodnight
Simply put, culture is the “how” of business, not the “what.” It is the way individuals respond, act, and communicate. It is more intricate than just value descriptions. And this is the ‘problem’ with culture—the idea is straightforward but putting it into practice may be very difficult because habits are hard to break and changing behaviour takes time.
Just as cultural norms govern every society, every workplace has a culture that can either be deliberately established, tweaked, changed, or left to develop at will. But as you can see, it’s simply too important to let it evolve by chance. This is where you come in; this is where leaders come in.
Culture provides meaning; a shared understanding of “what is” and “why is” is provided by culture. With this perspective, culture is about “the story” that members of an organization are a part of, as well as the rituals and values that support it. It also emphasizes the significance of symbols and the necessity of comprehending them, especially the peculiar languages employed in organizations, to understand culture.
CULTURAL MODELS
There are numerous ways to describe and categorize organizational culture. This HBR case study is a good place to start.
CASE STUDY: The 8 Types of Company Culture
After reviewing the vast academic literature on culture, a group of organisational behaviour and culture experts identified eight distinct cultural styles:
ORDER, centred around respect, structure, and shared norms
LEARNING, defined by exploration, expansiveness, and creativity
ENJOYMENT, expressed through fun and excitement
RESULTS, determined by achievement and winning
AUTHORITY, defined by strength, decisiveness, and boldness
SAFETY, characterised by planning, caution, and preparedness
CARING, focused on relationships and mutual trust.
Let’s look at some other well-known cultural models.
THE COMPETING VALUES FRAMEWORK
This four-box culture model, created by Robert Quinn and Kim Cameron contrasts various conflicting priorities that businesses may have, the concept is called a “competing values framework.” Its horizontal axis measures whether an organization is more inwardly or outwardly directed, while its vertical axis examines whether it is more focused on stability or flexibility. The varieties of cultures that evolve inside firms will depend on how organisations prioritise the competing values depicted in their model.
Here is a short description of each of the four cultures.
Clan
A warm and welcoming work environment that strongly resembles a big family and where employees have much in common. The heads of organizations, or leaders, are looked up to as role models and sometimes even parent figures. Loyalty and tradition keep the organisation together. High levels of involvement are present. The organisation strongly emphasises the long-term advantages of developing its people resources and places a high value on interpersonal relationships and morale. Openness to consumer needs and concern for people are critical components of success. Teamwork, involvement, and consensus are critical to the organisation.
Hierarchy
A very regimented and formal work atmosphere, where what people do is determined by procedures. The leaders take pride in being effective, efficiency-driven coordinators and organizers. The most important thing is to keep the organisation operating efficiently. Structured regulations and policy manuals keep the organisation in check. Long-term considerations centre on consistency, outcomes, and effective and seamless task completion. Success is characterized by dependable delivery, easy planning, and affordable prices. Personnel management must guarantee predictability and clarity regarding the position.
Market
A company that prioritizes results and finishes projects with great care.
The population is aggressive and goal-oriented. The leaders simultaneously act as producers, rivals, and drivers. They are demanding and challenging. The organisation’s concentration on winning serves as a unifying force. Success and reputation are crucial areas of emphasis. People concentrate on competitive activities and reaching quantifiable milestones and goals in the long run. Market penetration and market share are ways to define success. Pricing competition and market leadership are crucial. Unflinching competition is the organizational approach.
Adhocracy
A vibrant, entrepreneurial, and creative workplace. Individuals take chances and put out their necks. The leaders are seen as risk-takers and innovators. A dedication to creativity and experimentation serves as the organisation’s unifying factor. The goal is to set new trends. The organisation focus is on expansion and finding new sources over the long run. Success is defined as having novel goods or services on the market; being a pioneer in this area is vital. The group supports personal initiative and freedom.
THE ICEBERG MODEL
The cultural iceberg concept distinguishes clearly between organisational culture’s visible and invisible components. This concept divides cultural components into those we can see and those that create a hidden structure, depicting each as an iceberg.
The visible portion of the iceberg model builds on the foundation of the organization’s vision and mission, as well as its strategy and policies. Values, conventions, attitudes, connections, and other values and unspoken laws can all be found in the unseen element.
The guiding idea of the iceberg workplace culture model is that culture is determined by the way we approach the invisible elements. It’s a people-oriented strategy for the culture that prioritises the requirements of the workers and encourages positive involvement.
THE HOFSTEDE MODEL
Hofstede’s model, which asserts that culture results from several people, each with their own personality and experience, is another model businesses use to understand the culture.
Hofstede’s model depicts culture as an onion with four layers at its core; Values, Rituals, Heroes, Symbols.
This model’s socialization component may be its most distinguishing feature. This concept is an excellent technique for designing an action plan through collaboration by comprehending differentiation between individuals, teams, and departments.
Business leaders must include workplace culture feedback mechanisms in their framework for this model to be effective and for organisations to achieve their desired culture.
They can set up a variety of feedback methods that they can use to promote and improve cultural values thanks to performance management software.
Young businesses and start-ups frequently adopt the Hofstede corporate culture model. It’s appropriate for emerging cultures because it fosters an atmosphere where all employees can contribute to defining its principles and procedures.
The Hofstede model is a successful strategy for developing trust in the workplace by making culture a collaborative effort and fostering this sense of trust and feedback.
THE MCKINSEY 7-S MODEL
This model from McKinsey provides a framework for transformation based on an organization’s organizational design. Focusing on the interplay of seven crucial elements—structure, strategy, system, shared values, skill, style, and staff—it seeks to illustrate how change leaders may manage organizational transformation effectively.
The model emphasizes that there is a cascading effect when any one factor is changed to restore effective balance. The emphasis on shared values in the center highlights how a strong change culture influences all the other factors that motivate change.
“Customers will never love a company until the employees love it first.”
Simon Sinek
CASE STUDY: Google
Google (part of Alphabet Inc) is well-known for having an informal culture built on innovation and fun, to find new innovative solutions to complex problems. And a significant factor supporting that culture is their emphasis on trust and transparency embodied by their unofficial motto: “Don’t be evil.” This catchphrase has become an essential component of their identity and one of their self-declared guiding principles. It also shapes the organisation’s ethical standards, as Google lays the groundwork for truthful judgments and separates itself from all sorts of cheating. Because of its ethical standards, Google establishes guiding principles for its advertising initiatives and activities, which account for most of its income. Pop-up ads, a disruptive type of advertising that prevents consumers from seeing the material they searched for, are, for example, not accepted by Google. The integrity of their search results is unaffected because they don’t manipulate ranks to elevate any of their partners in their search results or permit anyone to purchase their way up the PageRank. One of the reasons Google’s ad business has been so successful is because customers trust Google’s neutrality and ethical ideals in this way. Google’s founders firmly believe that it is worth missing out on short-term financial wins in order to build and deserve trust and make decisions that are good for the world. That’s how important the culture is to Google.
The value of this clarity and consistency is also internal trust (it’s not just empty words) and makes it easier for employees to make decisions and operate with collaborative autonomy.
WHY CULTURE MATTERS
It’s probably clear already, but let’s get straight-talking about why culture needs to be on every leader’s and manager’s agenda. It’s an employee magnet. People love working for companies with great cultures, where they are valued, where they learn and grow, where they can make a difference. It helps organizations attract and retain talent, and provide value to customers through consistency, clarity, cohesion, collaboration and creativity.
Cultures change with time. They constantly and incrementally evolve in response to both internal and external changes. Because you are shooting at a moving target, it is challenging to evaluate organizational culture. Yet, it also allows culture change to be seen as a continual process instead of through significant changes (often in response to crises). Additionally, it emphasizes that a stable “destination” may never be attained and never should. The organizational culture should be one of constant growth and learning, in harmony with vision, purpose, values, strategies and goals.
Numerous studies point to the importance of culture, like a recent Price Waterhouse Cooper study where a majority (67%) of survey respondents said that culture is more important than strategy or operations. According to research by Deloitte, 94% of executives and 88% of employees believe that a distinct corporate culture is essential to business success.
Organizational culture is not merely a ‘nice to have’. A recent study by McKinsey of 1000+ organizations showed that those in the top culture quartile achieved 60 percent higher shareholder return than median companies and as much as 200 percent higher return than those in the lowest quartile. This data is supported by a multitude of other studies. Culture matters and culture starts with leaders.
We’ll explore all of this in more detail later in this program and get practical about how to shape and utilise culture through leadership.
EXERCISE 1.1
• What company cultures are you aware of or familiar with?
• What sets them apart from other organisations?
• What can you learn from them on the importance of culture?
• What is your main insight and take-away from this section?
Course Manual 2: The driving forces of culture
CULTURE IS A LIVING, DYNAMIC THING
Culture is not static, it evolves, it responds to changes, it’s dynamic. This is also one of the key reasons why culture needs to be a strategic consideration for all leaders in a company.
All cultures are driven by factors such as company vision, purpose, values, structure, policies, procedures, systems and more. Drivers of culture are also influenced by industry, national culture, leadership style and other specific factors.
Cultural awareness is crucial in today’s globalised market. Multinational and cross-cultural teams are becoming increasingly prevalent as more organisations expand and the global economy opens to small businesses. So, for businesses to succeed beyond their founding country’s borders, it is critical for them to comprehend the culture of their foreign markets and consider those cultural differences when expanding internationally and finding ways to make the corporate culture work in harmony, or at least partial alignment with the national culture. Culture refers to a person or society’s beliefs, practices, and social interactions. In a corporate setting, culture refers to the types of conduct that are normal and respected in one place vs another. What is considered good business practice in one nation may differ from the strategy companies employ abroad. Hence, it is vital to understand how culture might impact international business to prevent miscommunications between employees and clients and ensure that companies effectively present themselves to their new markets.
Companies need to be aware that cultural perspectives on business vary. Scandinavian nations, like Sweden, strongly focus on social equality, and as a result, their organisational hierarchies are frequently relatively flat. This is related to their casual style of cooperation and communication, which is typically at the core of their organisations. In Japan, a reasonably distinct organisational structure reflects the country’s traditional ideals of respect for seniority and relative standing. This implies that senior management always commands respect and demands a certain amount of formality from younger team members. Roles in multinational teams may be difficult to define due to these varied cultural perspectives regarding management.
CASE STUDY: American Express Europe
In the mid-90’s American Express went from having separate national markets in Europe to becoming a European organisation with a European HQ in the UK and local ‘back offices’ in the local markets. Having worked in the Stockholm office for a few years, I moved the UK and took on a Service Excellence Management role for all of Europe. When working with all the different national offices, I observed unique variations of the USA originated culture. When the various nationalities came together it was easy to see both foundational similarities (e.g. relentless customer experience focus, relative informality in interactions) and national differences (e.g. greater formality in some countries, not using first names in communications, and giving feedback to superiors not being the norm in certain countries). With the new European HQ, we continued working with the foundational culture that allowed cross-culture collaboration across the globe to work effectively, while weaving in the local awareness to ensure we could respect the differences that existed too.
Having a focused effort put into the culture across Europe allowed us to operate more effectively and consistently as an international organisation.
Businesses that operate worldwide also need to be mindful of proper workplace conduct. When engaging with co-workers and clients from different cultures in international enterprises, the formality of the address is another critical factor to consider. Do they mind being addressed by their first names, or prefer titles and last names? In the USA, first names are typically used, while Asian nations like China appear to prefer the latter. Even though the formality of the address may not seem crucial, if you start a potential international client relationship poorly, it may be impossible for you to engage with them again. So, a level of flexibility in the corporate culture is needed. Because of differences in workplace etiquette, certain cultures also have distinct views on conflicts at work, rules, and regulations, and working hours. While some may view putting in long hours as a sign of dedication and success, others may view these extra hours as evidence of inefficiency or a disregard for family or personal time.
But that’s not the whole story, human behaviour tends to be the most powerful driver. The intentions behind an organization’s infrastructures can be enhanced or hindered by how people act and behave within the infrastructure. Let’s look at some culture blockers and culture enablers, to become better at spotting behavioural habits and what they lead to.
Culture blockers
Culture blockers are structures, processes, policies, systems, habits, and behaviours that make it difficult for the culture to flow and do what it’s supposed to do (enable a healthy and effective workplace, to achieve the goals and drive towards the vision).
One such example can be and organisation who says it values collaboration and want people to operate in a collaborative and collegiate manner. Now imagine a work process where handovers happen between different teams, who are not aligned in expectations and goals. This means one person may find the handover of greater importance than the other does. And as mentioned in the previous section, people tend to focus on what gets measured so they will prioritise what is in their goals. The cultural intention of collaboration is good in this case but is blocked by structural issues.
Adding the national differences in for example etiquette, as referred to earlier, another blocker example to consider is that a firm with a competitive culture may find that the culture works differently in a country where harmony and personal values are of higher importance. Where that is the case, the company would need to be much more transparent about what the competitive character of their culture means and ‘translate’ it to the local market to make it work there.
Culture enablers
Culture enablers are structures, processes, policies, systems, habits, and behaviours that enable the culture to flow and do what it’s supposed to do (enable a healthy and effective workplace, to achieve the goals and drive towards the vision). One such example can be how the hotel group Ritz-Carlton has a credo for their employees that says, “We are ladies and gentlemen serving ladies and gentlemen”. The ethos behind this credo is that to deliver the higher level of personalised guest experience they must first treat their employees with the respect they are expected to treat their guests with. This authentic practice to treat employees with real care makes the credo come alive in an authentic and impactful way. The internal behaviours enable the guest facing behaviours an experience.
Sub-cultures
There can be organizational sub-cultures linked to different countries, business functions and local business conditions. A sales function’s version of organizational culture can be different to that of the finance function for example, just as the tech team tends to be different to a marketing team. The purpose and dynamics of each function drive certain behavioural habits. Sales teams are often more competitive, where finance teams are more data focused. This is also an expression of personality, where data shows that based on personal preferences, people are often attracted to careers and professions that allow them to use their preferences and strengths.
ORGANICALLY OR INTENTIONALLY?
Organisational culture and cultural development can be approached in two different ways. The first is the emergent, organic approach, where culture is left to its own devices, developing as the company encounters new challenges and opportunities. This often means that the culture isn’t considered at all. While your culture is allowed to develop naturally, this brings significant risks and restrictions, which may not support your company’s objectives.
Organisations with a proactive approach to organisational culture are those where management takes the initiative to define and implement an ideal corporate culture. This can include getting feedback on the impact of feedback, setting an example, holding training sessions, getting advice from consultants, and more.
It’s crucial to remember that while organisational culture develops naturally over time, taking a more proactive approach will enable you to shape it deliberately.
With the right direction, you can reshape it to benefit your co-workers, change with the times, improve customer service, and set yourself apart from the competition.
Company culture is influenced by various factors, with leadership, communication, organisational values, and people being central to its development and sustainability. Yes, employees’ beliefs about their organisations are shaped by their work experiences, influencing their actions and outcomes. That’s culture in action. Consistency is a driver. One-off incidents do not cement the culture, it’s the experiences we have continuously that largely shape the culture. It’s how meetings are run, how follow-thru happens (or not), how people communicate with each other.
As you think about how you and your company can shape culture, let’s get into the specifics of some of the key drivers mentioned above.
Leadership and Communication
Leadership holds a significant influence over a company’s culture. How leaders communicate the brand’s purpose and vision, and more importantly, how they embody these in their actions, sets a precedent for employee behaviour. A service-oriented culture, for example, requires leaders to demonstrate service orientation in their actions, creating a friendly work environment that encourages employees to serve customers better.
Shared Organisational Values
The principles most important to a person and an organisation are their values. The foundation of your mission or vision statements is them. Organisational values are the backbone of company culture, affecting how employees interact, and the culture evolves. Companies with strong, meaningful values that resonate with employees are more likely to see these values reflected in exceptional customer service. Regular training and reinforcing these values help maintain relevance and alignment with company goals. People can express values in a single word, but more is needed. They need to be supported by a definition that clarifies what that word implies. The distinction between shared values and having a company mission statement or a list of company principles is crucial. Only half of the equation relates to a company’s ideals. Employees must share the company’s values for there to be shared values. We’ll talk more about values in the next section.
People
The phrase “people make a company” underscores the importance of investing in employees to foster a service culture. Selecting and engaging employees in ways that promote the company’s cultures and values is crucial. This involves providing career development opportunities, hiring for culture fit, continuous training, and rewarding employees who embody the company’s values.
Behaviours
What people do shouts louder than what they say they are going to do.
The Iceberg Model that we looked at in the first course manual shows how we may have an intention to do things a certain way (explicitly), through policies and procedures and structures. But people’s attitudes and assumptions (implicit culture) about a task (e.g. ‘this doesn’t make any sense, we have tried this before and it didn’t work, but they still insist we should do it’) will drive behaviours that creates a culture of disillusionment and even resignation, which is clearly not a cultural effect that any organisation intend to create.
People’s behavioural habits become visible and over time, through consistency, they become the cultural norm – positively and negatively. What people do shouts louder than what they say they are going to do.
Leadership style
How leaders act and behave and interact with others, is a major driver. Leaders are the ultimate culture shaper. Formal leaders create formal cultures. Inclusive leaders create inclusive cultures. Innovative leaders create innovative cultures. And so on. And as just described above, observable action and behaviours become the norm, especially when leaders do something as they have greater visibility and are consciously and subconsciously observed by those without the leadership platform. We will go on a deep journey of discovery of the role of leadership when it comes to culture, throughout this program.
Language & communication
Every business and industry have its own dialect, vocabulary, and symbols that are as distinctive as their goods and services. This is a crucial component of the second of the five cultural building blocks. Communication becomes considerably more effective if everyone in a firm is familiar with the common language used by the industry and within the organization. However, a lack of comprehension might lead to misunderstandings and errors. When you hire new employees, offer training materials on the terminology used at your organization and foster a respectful work atmosphere. Establishing some communication guidelines helps cultivate the culture you want.
Procedures and systems
Productivity can flourish within a corporation with scalable systems and procedures.
Tasks can be streamlined and made more efficient with the correct techniques and procedures. Every business has methods and procedures that fit its specific objectives. Professional chefs use assembly line techniques to ensure that food is produced quickly, for example, while businesses that often deal with large numbers of consumers use CRM software to manage their client contacts efficiently.
Meetings and other routines
Routines is another word for repeat meetings and regular occurrences. How do the regular meetings at your workplace contribute to or take away from the culture you wish to foster?
You may establish a cadence of accountability that keeps individuals and projects on track by organising frequent meetings or project reviews. Employees can control their energy and focus on what’s important thanks to regular routines that bring discipline. Because they involve little effort to produce maximum effects, good practices can be effective. Here’s a word of caution: keep a meeting’s regularity from degenerating into a waste of time. To ensure that meetings stay fruitful, you must continue to be diligent.
Management’s actions, the quality of the employee experience, and the company’s external reputation all shape the internal culture. The importance of measuring and actively managing culture to ensure it aligns with desired outcomes is crucial.
In summary, company culture is a multifaceted construct driven by leadership behaviour, articulation and embodiment of organisational values, and the strategic management of human resources. When these elements come together effectively, they create an environment where employees feel valued, respected, and aligned with the company’s goals, ultimately contributing to the organisation’s success.
We will encounter more culture enablers and blockers, and also drill down on the ones above as we progress through the programme.
EXERCISE 2.1
1. What cultural drivers are you aware of in your organisation? Which enable and which block progress and results?
2. Which of these have the biggest impact on people, goals, and results?
3. How do meetings and other routines work? And how does that impact your culture?
4. What insights have you had from this section and how will you apply them in your role?
Course Manual 3: Values and culture
Company values and culture are closely related concepts that influence each other significantly. Company values are the underlying beliefs and principles that guide an organisation’s behaviour and decision-making processes. They are the moral and ethical compass that provides direction for the company’s actions and are intended to be reflected in every aspect of its operations.
Company culture, on the other hand, manifests these values in the organisation’s day-to-day interactions, behaviours, and practices. It encompasses the norms, behaviours, and unwritten standards that dictate how employees interact with each other and external stakeholders. Culture is influenced by overt policies, such as remote work and dress codes, as well as by the leadership style and the way employees communicate and socialise.
The link between company values and culture is that values are the foundation upon which culture is built. When company values are clearly defined and authentically reflected in the culture, they help create a supportive work environment, guide employees in making decisions, and foster positive employee experiences.
Most organisations have socialised their vision, purpose, and values with their employees, and often also shared the finished product with external stakeholders. That is an important step, but unless people, leaders in particular, behave and act in accordance with said vision, purpose, and values, it all becomes an empty façade that can create suspicion and disengagement.
As the model below illustrates, there are levels of culture. There can be many levels of culture, but these are the main ones, as outlined in Ed Schein’s culture model
LEVELS OF CULTURE
SYMBOLS
The outward symbols of an organisation’s culture are also called artefacts. They are audible, visual, and perceptible. It can be the dress code (or uniform), how the workplace looks, how co-workers address one another and how they communicate internally and externally.
ACCEPTED CORE VALUES
These are the public declarations of the organisation’s core values. As mentioned earlier, many organisations make their core values, the principles they uphold and live by, known to the world.
UNDERLYING ASSUMPTIONS
The fundamental presumptions can be challenging to define; they are intangible and often only genuinely understood by individuals who have grown accustomed to how the organisation functions. Imagine what it’s like when you join a company and initially find it difficult to fully ‘fit in’. That’s mainly because you still need to understand these fundamental presumptions that more seasoned employees seem to take for granted. Underlying assumptions are usually not visible, and they won’t be written down anywhere. Others may avoid discussing them, but they do exist and are essential.
Another way of describing this is that some components are explicit (such as symbols and values) while others are implicit (underlying assumptions). It highlights the need to make culture as clear and explicit and understood as possible, to communicate expectations and agree shared ‘ground rules’. This was visualised in the iceberg model in the previous course module.
Culture is “how things are done around here.” Often, it is implied rather than explicit. It is the “how” of business, not the “what.” It is the way individuals respond, act, and always communicate. It is more complex than the corporate value words. This can be a challenge with culture—the idea is straightforward but putting it into practice may be very difficult because habits are hard to break and changing behaviour takes time. It’s a question of making the values behavioural, identifying the behaviours that make the values come alive and playing their part in creating the desired culture.
Values can help an organisation define its personality and differentiate itself from the competition. They have the power to convey what a company stands for.
Apart from the organisational values, leaders may also have their own unspoken values and expectations they want their employees to uphold. If that is the case, they need to be aligned with and supportive of the organisational values, otherwise they will only create confusion and misalignment. But most importantly they need to be agreed with the team, which is part of creating an effective, engaged, successful team. We will explore how to develop your team and team culture in workshop 6.
“Many companies claim they have core values, but typically what they’re referring to are generic beliefs: having integrity, making a profit, responding to customers and so on. These values only have meaning when they’re defined in terms of how people behave and are ranked to set priorities”.
Ken Blanchard
A 2018 survey by LinkedIn found that values are the number one priority for employees. Just under two-thirds (71%) would take a pay cut to work for a company with shared values and a mission they believe in, and 39% would leave their current job if their employer asked them to do something that conflicted with their morals or ethics. Nearly half (47%) want to work in an environment where they can be themselves and positively affect society (46%). Employees care about corporate values. Some care about them so much that they will decide who they work for and why.
CASE STUDY: HEINEKEN
Heineken’s values are deeply intertwined with its corporate culture, creating a solid link between them. The company’s core values of respect, enjoyment, and passion for quality are reflected in its culture in the following ways:
Employee engagement: Heineken’s values are integrated into its corporate culture, which helps attract and retain talent. The company invests in employee development through initiatives like the Heineken University, which trains current and future executives worldwide.
Sustainability: Heineken’s commitment to respect for people and the planet is reflected in its sustainability efforts, which are part of its corporate culture. The company’s sustainability reporting and initiatives demonstrate its environmental and social responsibility dedication.
Branding and marketing: Heineken’s values can be seen in its branding strategy, which helps define the corporate culture and working methods. The company’s positioning statement and marketing campaigns reflect its values, contributing to its brand image and consumer perception.
Code of business ethics: Heineken’s values include a code of business ethics, which is part of its corporate culture. The company emphasizes responsible communication and marketing, ensuring that its brands are promoted legally, ethically, and truthfully.
Internationalisation: Heineken’s values are essential to its internationalisation strategy, as the company embraces cultural diversity and respect for individuals, society, and the environment. This approach helps the company adapt to different markets and cultures.
Overall, Heineken’s values are integral to its corporate culture, guiding its actions and determining the boundaries of its behaviour. This alignment between values and culture helps the company maintain a strong brand image, attract, and retain talent, and achieve long-term success.
DIFFERENT TYPES OF VALUES
There are two main types of values:
1. CORE values are the underlying, deeply ingrained values that govern every business decision. They are the type of non-negotiable ethics principles that everyone must always adhere to.
2. ASPIRATIONAL values are ideals that a company’s leadership would want to see, but people may not yet exhibit them. They can provide inspiration and guidance for a change of culture, but embedding new values that people want to embrace takes time, so you must allow them to develop organically and intentionally simultaneously. We will explore this further, later in the programme.
Let’s explore how to populate the values with practical and consistent behavioural habits, hence making values into a powerful living, practical framework.
DEFINING ORGANISATIONAL VALUES
The first step is to involve people at all levels in the process of value definition. Learn more about the values that employees feel are essential for the company through surveys or focus groups.
Your organisation’s values can be defined using the mission and vision statements, as the values should be enablers of said vision and mission. Look for recurring themes and ideals in these statements, and then examine how you may translate them into specific organisational values. When creating a company’s principles, many organisations also consider best practices and industry standards by reflecting on the values that define your sector – and how they may apply to your company.
CASE STUDY: VALUES IN A GROWING ORGANISATION
When working with a US organisation that was growing fast through mergers and acquisitions, the executive team became increasingly aware of the power of cultures, particularly when they were very different from each other. Each new company and its employees that became part of the bigger company highlighted the need to do something to harmonise and clarify the culture. It wasn’t just a question of every newly acquired company to adopt the acquirer’s culture. The executive team recognised that they hadn’t just acquired a brand, clients, and employees, but also a culture that on some level would have played a role in creating the level of success which had made them want to buy them in the first place.
I worked with them to identify, engage, and lead culture ambassadors who wanted to be key players in making the values and culture come alive and be harmonised and maximised.
The strategic objective was to shape a strong, cohesive culture that allowed for quick growth through effective mergers & acquisitions. The overall goals were to achieve better collaboration across locations and functions, quicker onboarding of new employees, and increased revenue.
The first thing we did was to look at the existing values, some that were CORE and some that were ASPIRATIONAL. We then formed smaller teams or 2-3 people where each team worked with a value each. They discussed each value by asking questions like:
What does this value really mean?
What behaviours are involved?
How do you know that someone is ‘living’ a value? What do you observe?
What is the power of this value? What does the embodiment of this value lead to? What impact does the value have.
We’ll return to this case study in later workshops and/or manuals.
Some examples of popular organisational values
• Customer obsession
• Inclusion and diversity
• Innovation
• Integrity
• Collaboration
Research suggests that employees who know their company’s core values are likelier to feel engaged, and companies with a clear purpose can see higher returns. Moreover, strong company values can attract and retain employees who share those values, leading to better performance and engagement. In essence, company values set the “what” and “why,” while culture defines the “how” and “when.” Values are the ideals that the company strives to uphold, and culture is the practical application of those values in everyday work life. It is essential for companies to not only state their values but also to ensure that these values are actionable, distinctive, and linked to results, as this alignment can build trust with stakeholders, increase brand equity, and attract top talent.
WHEN THERE IS A GAP BETWEEN PROFESSED CULTURE AND LIVED VALUES
Research by Culture X in 2019 where researchers compared 689 companies (mainly US based) values (expressed on websites) with employee experience in Glassdoor reviews, showed that there was no correlation between cultural ambitions and what employees experienced. This highlights the challenge of bringing corporate values alive, getting beyond the value statement, making the values relevant and applicable. If that isn’t done, it creates cynicism, where employees (and other stakeholders) question what the organisation really stands for. And this is turn has a negative impact on the culture overall, where the culture becomes cautious and non-dynamic.
MAKING THE VALUES COME ALIVE
Values come alive through people’s consistent actions and behaviours, the way people do their job, which is why a behavioural code needs to be added to values.
Effective values are role-modelled by leaders at all levels, so when wanting to populate the values, leaders need to spend time agreeing on the values and their role in organisational success. Unless leaders fully live the values, they can damage leadership credibility and give the impression that they are merely empty platitudes. Start by discussing the core values and what they mean to each function head within the context of their department. These workshops are also excellent team-building activities and a great method to demonstrate your values, so leaders can search for concrete examples within their teams.
Involve people at all levels in the process and talk to people. Learn more about the values that employees feel are essential for the company through surveys or focus groups.
Your organisation’s values can be defined using the mission and vision statements, as the values should be enablers of said vision and mission. Look for recurring themes and ideals in these statements, and then examine how you may translate them into specific organisational values. When creating a company’s principles, many organisations consider best practices and industry standards by reflecting on the values that define your sector – and how they may apply to your company.
It’s also crucial to talk about and clarify the underlying assumptions that make up the culture, as these can of course be misinterpreted. Say for example that a key value is to be ‘transparent in all we do’, but this doesn’t marry up with what people see and experience that leaders do. Leaders may for example intend to be transparent but may omit certain information even if only not to worry people unnecessarily, but it may still be obvious that something isn’t being shared.
Establishing strong organisational principles is essential for developing a positive working culture. Leaders can ignite a sense of purpose and direction that can lead to successful business outcomes and employee engagement by defining and conveying a set of core values and principles that influence the behaviour and decision-making of the organisation.
CASE STUDY
To give a behavioural explanation to each of their core values, a professional services company in the USA ran a workshop where a diverse group of employees at all levels got practical about what their values meant specifically in day-to-day activities and interactions both internally and externally. What do you see when someone is living this value?
Here are some of their core values made behaviourally explicit.
Customer obsession – We know that our customers have many choices, and we work creatively and collaboratively to make us their choice. We listen and respond to their needs and expectations.
Inclusion and diversity – By being kind and inclusive we invite differences and know that we will make better decisions as a result.
Innovation – We love to challenge the status quo by being curious and solutions focused, driving creativity and innovation.
Integrity – We are sincere, fair, transparent and we walk the talk. People know that we always keep our promises.
Collaboration – We work together, we’re smarter together, we win together.
Although developing organisational values and behavioural principles can be difficult and complex, the effort is worthwhile if it results in a more harmonious and effective workplace. Leaders may create a resilient, adaptive culture focused on a standard set of values by involving employees, prioritising diversity, regularly measuring, and improving the organisation’s values – and helping people see how the values and culture impact the results.
Lived values (=actions and behaviours) create the culture, and leaders have a leading role in role modelling the company’s values in a practical way, so that values equal culture. We’ll explore the role of leaders in more detail throughout the programme.
EXERCISE 3.1
• What are our organisational values?
• What do they mean in the practical sense, what behaviours and practices do they encourage?
• How do we know if these values are truly lived? What do we see, hear, experience?
• What else can we do to role model the values? What difference will that make?
• What culture do our values shape? And is that what we want and need, or is there something that needs to change, be tweaked, or clarified? If so, how? And what difference will that make?
• What is your main insight/take-away from this section? And how will you apply that?
References
https://mitsloan.mit.edu/ideas-made-to-matter/5-enduring-management-ideas-mit-sloans-edgar-schein
https://www.creativehuddle.co.uk/post/what-research-says-about-the-importance-of-business-core-values
https://sloanreview.mit.edu/article/when-it-comes-to-culture-does-your-company-walk-the-talk/
Course Manual 4: The financial value of cultures
CULTURE IS MORE THAN A ‘NICE TO HAVE’
Until relatively recently, the financial value of organisational cultures was vague at best. There is now plenty of data that outlines the effect culture has on factors such as share value and profitability. Let’s dive into some of that data to discover how fundamental culture is to sustainable business success.
The Core Beliefs & Culture Study from Deloitte in 2014 found that corporate cultures can emerge consciously or unconsciously. It is much easier to change an intentionally formed culture than undo one brought about by unconscious means. Businesses with the most effective cultures afterwards achieved the best customer happiness and sales, and this trend was replicated throughout time. Companies that actively promote appropriate cultural characteristics might anticipate a return on investment (profitability) three to four times higher than those that do not.
An early culture study (over 11 years) by professors Kotter and Heskett at Harvard Business School showed that companies with performance-enhancing cultures with a focus on stakeholder relations consistently outperformed those without a performance enhancing culture when it came to revenue growth, employment growth, stock prices growth and net income growth.
The financial value of organisational culture is significant, as evidenced by various studies and analyses. A strong organisational culture is correlated with better economic performance, including higher stock returns and profitability. A study from the University of Northern Iowa found that companies with strong organisational culture, as identified by Fortune magazine’s 100 Best Companies to Work for in America, demonstrated a strong correlation with higher financial performance over ten years. This is further supported by Great Place to Work research which indicates that companies with high trust are more profitable and have higher stock market returns. Companies listed as ‘Fortune 100 Best Companies to Work For’ outperform the market significantly, and high-trust cultures contribute to higher retention rates, lower burnout levels, faster innovation, and quicker recovery from recessions.
A study in the Journal of Financial Economics suggests that while proclaimed values may appear irrelevant, the perception of integrity among employees is correlated with better firm performance.
Forbes emphasises that a strong corporate culture is a decisive advantage for companies, leading to increased revenue growth. Companies with strong cultures have seen a fourfold increase in revenue growth, and those listed as ‘Fortune 100 Best Companies to Work For’ see higher average annual returns.
There are various reasons why culture has such a comprehensive impact on the bottom line. When culture is fully understood, it makes it easier for employees to make decisions and move at speed, they know how to act and behave because of clarity of culture. This empowers and builds confidence. The effect on customers and clients is that they encounter a more engaged work force and get more consistent experience. And as shown in various studies customer loyalty impacts shareholder value. The Service Profit Chain that we cover in this manual is a well-known example of that.
According to Arbinger, the workplace trends most frequently predicted to negatively impact the business culture in the next few years are ‘quiet quitting’ (47%) and ‘the great resignation’ (41%). They also found that organisations with successful cultures are five times more likely to have experienced considerable revenue growth in the previous year than those with less successful cultures. (47% vs 9%)
In summary, there is a strong correlation between a robust organisational culture and financial success, with companies that prioritise culture often experiencing higher profitability and stock market performance.
“I used to believe that culture was ‘soft,’ and had little bearing on our bottom line. What I believe today is that our culture has everything to do with our bottom line, now and into the future.”
Vern Dosch, author, Wired Differently
The Service Profit Chain
The Service Profit Chain is a concept created by a team of Harvard University academics. It details the relationship between employee and consumer satisfaction, engagement, and loyalty. And it starts with leadership. When managers, leaders and higher management regularly reaffirm employees’ value engagement is heightened. In addition, ideas and proposals for development can be shared and discussed, making problem-solving a collaborative process in a culture that values mutual respect. This can help employees generate higher-quality goods or services as they are engaged and content at work. Customers may be more likely to return when they receive high-quality products and services. This drives more revenue for the business, which could enhance working conditions for employees. Because the employees’ satisfaction grows, the cycle keeps going. Working with this concept can help companies boost profitability while increasing employee engagement, customer engagement, and loyalty. On the other hand, every flaw in the entire chain propagates in both directions and ultimately has an impact.
The first step in understanding the theory behind the Service Profit Chain is to recognise that bottom-line profitability is achieved by cultivating customer loyalty and that a significant component of customer loyalty is employee engagement. Pay special attention to the crucial factors that fuel profitability in the new service paradigm.
Leadership that emphasises the significance of each employee and customer strengthens the service profit chain. Such leaders must demonstrate their values in action. The consumer mindset is made tangible based on a highly developed connection with employees. Employing workers with the proper attitude is crucial; if only quantification is the emphasis, the core of the business, PEOPLE, will be missed. If a company wishes to participate in the profitable virtuous circle of service, it must start with the most effective leadership mindset.
Organisations need to develop deeper relationships with their workforces to stay competitive. They must find ways to provide individuals with a sense of worth, belonging, well-being, and safety. The balance of power has changed from organisations to individuals, and if people feel their needs are not being addressed, they will leave their companies in search of a better fit. Organisations are more likely to attract, engage, develop, and retain the talent necessary to produce world-class business results by implementing people-first initiatives. And this has a direct impact on financial results and value.
Customer loyalty and employee engagement are closely related, although rarely referred to in such basic terms. In industries where customers interact with a variety of service providers, such as the hotel and hospitality sectors, customer satisfaction is a crucial factor, determined in large part by experiences with different people, from the front desk clerk to the housekeeping staff. A less-than-satisfactory incident can negatively impact the entire luxury hotel experience. A less-than-welcoming greeting at a fine dining establishment can have an even more significant impact on a customer’s perception of quality. The Service Profit Chain model aims to identify and address these weak links and address them.
When working with an international client, we used The Service Profit Chain as a model to drive awareness of how employee engagement is not just a ‘nice to have’ but a core organisational principle as it highlights the dynamics of employee experience and customers experience in driving financial results. The leaders became aware that they had so far not fully utilised this business principles; they hadn’t joined up the dots. But when they did, and when they involved everyone in the process, to understand the dynamics, they saw both employee engagement and customer engagement go up.
CASE STUDY: Ritz-Carlton and the Service Profit Chain
The international luxury hotel chain Ritz-Carlton is an excellent example of The Service Profit Chain in action, and their success at it has been studied by organisations all around the world for more than three decades. Their focus on outstanding guest experience is built on the concept of the Service Profit Chain; creating an inclusive, appreciative, empowered employee experience. Because they know that when they take care of their employees, they can in turn take care of the guests. This can be seen in several different ways:
Their employee motto is: We are ladies and gentlemen, serving ladies and gentlemen (highlighting that their employees are as important as their guests)
Their approach to empowerment is: All employees are fully empowered to resolve a guest issue, regardless of what it is. If an employee is approached by a guest, it’s their responsibility (as far as possible) to resolve it. They even have a budget to address any issue in the moment. The thinking behind this is all about creating a memorable experience, where the guests just want to keep coming back. The guests feel seen, heard and taken care of – by employees who also feel seen, heard and taken care of. It’s about the knock-on effect of experience.
And it’s paid off. The hotel chain has won numerous awards, including the United States Department of Commerce’s ‘Malcolm Baldrige National Quality Award’ twice. There are no other hotels that have ever been awarded this prestigious award.
THE COST OF UNPRODUCTIVE CULTURES
According to a 2023 survey by The Chartered Management Institute highlighting the dangers of managers failing to rein in toxic behaviour, almost one-third of UK workers claim they have left a job due to a poisonous workplace culture. The study revealed widespread anxiety about the management standard and how it affects employees’ daily lives. Other concerns mentioned as reasons for leaving a job in the past by the 2,018 workers polled in the survey included a bad relationship with a manager (28%) and discrimination or harassment (12%). One-third of employees who reported having an ineffective manager said they were less motivated to do a good job and half thought about quitting in the coming year.
The estimated financial cost of ineffective cultures varies; however, a 2021 study from HR software firm Breathe put the UK’s annual cost at £15.7 billion. Legal fees and settlements to employees are costly, with average pay-outs reaching over £380,000. However, these are not the only or always the most expensive financial consequences.
A significant cost factor is attrition. 69% of the 6000 employees questioned by Randstad UK were certain they would switch jobs soon. The predicted attrition rate is around 11% annually, yet 21% of SME employees left their jobs due to a toxic work environment.
Employee replacement costs tend to be high, averaging £11,000 per person and rising significantly for higher roles. With 42 employees leaving a 200-person company, the replacement costs will be close to £500,000.
The impact on the bottom line is more difficult to quantify but may account for the largest share of the financial outflow. Employees who are uncomfortable at work are likely to have trouble focusing, which will lower productivity. The ensuing stress frequently causes burnout, which may result in potential sick absences and costs like paying temporary personnel to fill the workload. More than half of workers who worked in very hazardous conditions had to take a lengthy leave of absence. On the other hand, employees are likely to feel unable to take sick time in toxic settings. Employers lose up to £29 billion a year due to unproductive presenteeism.
We will come back to the topic of ‘toxic cultures’ later in WS1 Course Manual 7 and explore it in more detail.
CULTURE IS DEFINITELY NOT ‘SOFT AND FLUFFY’
As you can see, culture is so much more than a ‘nice to have’, the causality and correlation between human experience and profitability and growth is undeniable. As culture is ‘how things get done around here’, it has more than a theoretical link to financial performance. It’s hard hitting. Let’s summarise.
Employee productivity and engagement
A strong culture enhances employee happiness and productivity. Engaged employees are more invested in their work, producing higher quality output and efficiency. This directly affects the bottom line by improving operational performance and reducing costs associated with low productivity.
Talent attraction and retention
Companies with positive cultures attract top talent and have lower turnover rates. High employee churn can be costly due to the expenses linked to recruiting and training new staff – and of course loss of experience and knowledge. A strong culture retains top performers, saving costs and maintaining organisational knowledge. It’s a good place to work.
Customer satisfaction and loyalty
A positive organisational culture often translates into better customer service and experience. Engaged and happy employees are more likely to provide superior service, increasing customer satisfaction, loyalty, and revenue.
Innovation and adaptability
Cultures encouraging collaboration, trust, and openness foster new thinking, creativity and innovation. Innovative and adaptable companies are better positioned to respond to market changes and capitalise on new opportunities, driving growth and profitability.
Reduced absenteeism and better health
Cultures that support employee well-being result in lower absenteeism and better overall health among staff. This reduces costs related to sick leave and lost productivity and can also lower healthcare costs for the organisation.
Operational efficiency
A cohesive culture streamlines communication and reduces inefficiencies, leading to smoother operations and better collaboration. When everyone understands the company’s goals and values, decision-making is faster, and there is less conflict and duplication of effort.
Risk management
A strong culture of integrity and ethical behaviour can mitigate risks related to compliance and reputation. Companies with a strong ethical culture are less likely to face fines, legal issues, or reputational damage that can have significant financial implications.
Yes, organisational culture directly and significantly impacts the bottom line through various channels, including employee productivity, talent management, customer satisfaction, innovation, operational efficiency, and risk management. Investing in and nurturing a positive culture is not just about creating a pleasant workplace; but is a strategic imperative that drives financial performance.
This is a BIG reason for taking culture very seriously, indeed making culture a part of the strategic journey for any organisation – a lever for sustainable profitability and success. Organisational culture significantly impacts the bottom line due to its profound influence on business operations and employee behaviour.
EXERCISE 4.1
• What companies can you think of that creates financial value through their culture?
• What can you learn from companies who have worked with culture as a driver of business success? (e.g. Ritz-Carlton and others)
• Stakeholder engagement has been found to add value – where can you see that in your company?
• What can you as leader do to drive more value through the culture of your team or division?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://strategiccfo.com/articles/management-ownership/culture-drives-financial-results/
https://scholarworks.uni.edu/cgi/viewcontent.cgi?article=1262&context=hpt
https://www.eief.it/files/2015/07/guiso_sapienza_zingales_joffe_2015.pdf
Course Manual 5: How work systems can derail cultures
Despite the best of intentions, unless work systems are designed in harmony with culture, or the culture is shaped to wrap around existing work systems, they can end up highly incompatible and even disruptive to one another.
Work systems refer to the structures, processes, and methods implemented within an organisation to accomplish tasks and achieve goals efficiently and effectively. A work system encompasses various elements such as technology, people, procedures, resources, and the work environment. It aims to optimise productivity, quality, and performance while meeting the organisation’s objectives.
Work systems can vary widely depending on the type of organisation and its specific goals. They can range from manufacturing processes in a factory to administrative procedures in an office setting or even complex systems in fields like information technology or healthcare.
Effective work systems are designed to streamline workflows, minimise waste, enhance communication and collaboration among team members, and adapt to changes in the external environment or organisational needs. Continuous improvement and optimisation are essential for managing work systems to ensure they remain efficient and aligned with the organisation’s objectives.
Ineffective cultures, derailed by work systems, can cause decreased employee satisfaction, productivity, and overall organisational health. Let’s look at some ways in which work systems can have a detrimental effect on and even derail the culture.
TECH SOLUTIONS
The proliferation of technology in the workplace can lead to an “always-on” culture, where employees feel pressured to be constantly available and responsive to work communications, leading to burnout and work-life balance issues.
Easy access to information and communication tools can overwhelm employees, decreasing productivity and increasing stress levels. This constant barrage of information can make it hard for employees to focus and maintain high performance.
HIERARCHY, BUREAUCRACY
Work systems emphasising strict hierarchies can hinder open communication and collaboration. In environments where hierarchy is rigid, employees may feel less empowered to share ideas or raise concerns, stifling innovation and problem-solving.
Excessive bureaucracy can slow down decision-making and innovation, making the organisation less agile and responsive to changes. Conversely, a lack of structure can create confusion, inefficiency, and a lack of direction for employees. Ineffective communication and information silos can result in miscommunication and inefficiencies. The sense of teamwork and belonging among individuals in the workplace might be negatively impacted when they feel ignored or alone.
Work systems that do not hold employees accountable for low performance or bad behaviour can foster a culture of mediocrity and toxicity. This can lead to resentment, distrust, and high turnover among talented employees who feel their efforts are not recognised or valued.
WORKPLACE
What happens when a workplace and its processes and goals are about immediate results, but the company aims for an innovative, future-oriented culture? This would result in much frustration, as the expectations are nearly impossible to achieve unless processes and goals are also changed. This scenario highlights the need for complete alignment between culture and the practicalities of work.
Let’s think about workspace design. Depending on how well-designed a workspace is, it can have either positive, or negative effects on employees. While poorly designed workspaces might hinder, stifle, or annoy business culture, well-designed workspaces can nourish, foster, and enhance it.
Here are some factors to consider when creating a practical workspace design that boosts engagement, collaboration, and productivity.
Ensure a conducive culture before focusing on the office layout. Which is of course what this whole programme is about. Ensure that the physical workspace aligns with your company’s values, priorities, and culture to enhance employee engagement and productivity.
Employee input: Involve employees in the design process to meet their preferences and needs. Design a balanced workspace that caters to various work styles, including quiet spaces and areas for collaboration.
Encourage and create space for movement: Incorporate opportunities for movement in the workspace to enhance focus and productivity. Design the workspace to allow for movement, which can help employees stay focused and productive.
Consider office layout: Tailor the office design to address the specific needs of your business, team members, and industry for optimal productivity. If opting for an open-office layout, ensure practices that respect privacy and cleanliness are in place. Encourage employees to personalise their work areas with items that inspire productivity and motivation. If ‘hot-desking’ is the practice used, then the personalisation can be at a team level.
Design for well-being: Create an ergonomic environment to promote employee comfort, health, and engagement. Prioritise employee well-being by providing spaces for relaxation and areas that support emotional health.
GOALS
According to McKinsey, as many as 97% of executives and employees
believe a lack of alignment negatively impacts the results of a
project or task within a team.
One of the most proliferate challenges for many organisations is silo working, where teams across a company can have conflicting goals (or different measures of success) from other teams they need to work with and depend on. Conflicting company goals can lead to
• Decreased productivity. When different departments or individuals within a company have conflicting goals, it can lead to confusion and inefficiency. Employees may spend time and resources working towards different objectives, hindering productivity.
• Poor decision-making. Conflicting goals can result in disagreements and difficulty in reaching a consensus on important decisions. This can, in turn, lead to late decision-making or decisions that do not align with the company’s best interests.
• Internal conflict. Conflicting goals can create tension and conflict among employees and teams within the organisation. This can result in a toxic work environment, decreased morale, and increased turnover.
• Missed opportunities. When resources are spread thin due to conflicting goals, the company may miss out on valuable opportunities for growth and innovation. Focusing on too many competing priorities can prevent the company from fully capitalising on its strengths and market opportunities.
• Damage to company culture. Conflicting goals can erode trust and collaboration within the organisation, leading to a breakdown in communication and teamwork. A healthy company culture is crucial for employee engagement and retention; conflicting goals can undermine these efforts.
Here’s an example: Imagine two teams in an organisation that above all say that their culture is one of collaboration. Both teams are responsible for the customer experience, but their goals are not aligned or even work against each other, which means the way they operate makes it difficult to collaborate. It creates frustration and drive them away from collaboration rather than the other way around. It derails the collaborative culture. There may also be competing priorities in the goals, where collaboration becomes difficult as everyone has different expectations they are trying to live up to. And if a critical cultural factor is collaboration, then that will create cultural dissonance. Now imagine what would happen if they instead sat down and reviewed how the work systems can be made more efficient and targeted to support the culture and business results.
Overall, conflicting company goals can hinder its ability to achieve its strategic objectives and negatively impact its long-term success. Companies must align their goals and priorities to ensure everyone works towards a common purpose.
PROCESSES & PROCEDURES
Disconnects can occur when work procedures like promotions, awards, and performance reviews are not in line with the goals and values of the workplace culture. For instance, a company’s culture that emphasises cooperation and group achievement is weakened if employees are promoted only based on their performance indicators, as opposed to collaboration and teamwork.
Traditional hierarchical arrangements have the potential to hinder creativity and teamwork. Creativity and engagement may be impeded when decision-making is centralised at the top, and individuals have little autonomy. This hierarchical framework undermines a culture that promotes independence and empowerment.
If an organisation claims to have a meritocratic culture where promotions and rewards are based solely on performance and merit, but its performance evaluation systems are biased or subjective, it creates a misalignment. Employees might feel demotivated and disengaged if they perceive their hard work is not fairly recognised.
Implementing collaborative tools for communication and collaborative exchange in a company that operates in silos and encourages competition between departments can lead to resistance and underutilisation of these tools. The cultural emphasis on individual success over collaboration may hinder the adoption and effectiveness of such systems.
A company that champions diversity and inclusion but has a leadership team composed primarily of individuals from similar backgrounds may struggle to realize the benefits of diversity fully. The disparity between stated values and leadership composition can create a culture where diverse voices and perspectives are not adequately represented or valued.
Yes, work systems and culture misalignment can occur in various ways within organisations.
Let’s look at some more examples of what this could look like.
Product-centric processes with a customer-centric culture
A company that claims to prioritise customer satisfaction and has a customer-centric culture but has internal processes primarily focused on product development without sufficient consideration for customer feedback and preferences is misaligned. Such misalignment can result in products failing to meet customer needs or expectations.
Flexible work policies in a hierarchical environment
Suppose a company has a hierarchical culture where status and rank are highly valued. In this situation, the organization’s policies that encourage a greater work-life balance may conflict with rigid work schedules and a lack of remote work options.
Inflexible policies with an agile culture
Rigid and inflexible work systems might make it more challenging to be flexible and responsive to change. For example, strict rules about flexible work schedules or remote work can damage a company’s work-life balance and trust-based culture.
Inequitable practices with a fair culture
Trust and morale can be undermined by work environments that support discrimination or inequality. This can involve discriminatory recruiting procedures, unequal compensation, or lack of growth prospects due to non-merit-based issues. Such actions damage an inclusive and equitable culture.
Micromanagement that stifles an innovative culture
In a company that promotes innovation and creativity, micromanagement can stifle employees’ autonomy and creativity. When managers closely monitor and control every aspect of employees’ work, it contradicts the culture of trust and autonomy necessary for innovation to thrive.
Employee wellness programs in a high-stress environment
Implementing employee wellness programs, such as mindfulness workshops or fitness initiatives, in a work environment characterized by high stress, long hours, and unrealistic expectations may not effectively address the underlying causes of stress and burnout. Unless the root causes of workplace stress are addressed, wellness programs may be perceived as superficial or insincere.
Emphasis on short-term results with a long-term, ethical culture
Work systems that put short-term profits ahead of sustainability over the long run can cause employee burnout and disillusionment. For example, a company’s culture prioritising sustainability and ethical conduct is undermined if it overly emphasises fulfilling quarterly financial targets at the expense of employee well-being or moral considerations. Organisations that espouse ethical values but pressure employees to achieve short-term financial targets may inadvertently encourage unethical behaviour, such as cutting corners or engaging in deceptive practices, to meet those goals.
Technology that promotes ‘always-on’ culture in a work/life balance culture
When an “always-on” culture contradicts a company’s stated value of work-life balance, it can lead to negative consequences such as increased stress, burnout, reduced productivity, and diminished employee well-being, contributing to burnout and decreased engagement.
These examples illustrate how misalignments between work systems and professed organisational culture can undermine employee morale, productivity, and the organisation’s overall effectiveness. Aligning systems and (desired) culture requires deliberate efforts to ensure that policies, processes, and practices reflect and reinforce the desired cultural values and norms.
IMPACT ON EMPLOYEE ENGAGEMENT AND HAPPINESS
Negative work cultures resulting from flawed work systems can significantly impact employee engagement and happiness. Employees who do not feel valued, supported, or satisfied with their work environment are less likely to be productive and stay with the company.
Organisations should strive to create work systems that promote flexibility, open communication, accountability, and a healthy work-life balance to mitigate these negative impacts. Emphasising employee well-being, fostering a culture of recognition and feedback, and ensuring that technology enhances rather than hinders the work experience are crucial steps in building a positive work culture.
There are various ways in which work systems can weaken work cultures.
Work systems resistant to innovation or change might impede growth and the ability to adjust to changing market conditions. Processes that are extremely rigid and resistant to change have the potential to undercut a culture that values innovation and ongoing improvement.
A holistic approach to addressing these challenges is needed to align work systems with the values and goals of the work culture, foster open communication and collaboration, promote equity and inclusion, and encourage adaptability and innovation.
CASE STUDY: Enron
Based in Houston, Texas, Enron was an American energy company that became infamous for one of the largest accounting scandals in history. Enron filed for bankruptcy in 2001.
It’s interesting to reflect on how the stated values of integrity, communication, respect, and excellence at Enron were not upheld. The company’s yearly report and the establishment’s walls prominently featured these ideals. However, the company’s activities and behaviours were diametrically opposed to these professed values. The culture of Enron ended up being one of conceit, greed, and a relentless pursuit of profit, which resulted in immoral actions, a lack of moral character, and a poisonous workplace. The leadership’s emphasis on monetary gain, financial statement fabrication, and encouragement of a “winner-take-all” mindset directly opposed the declared ideals of excellence, integrity, communication, and respect.
The culture at Enron contributed to the company’s downfall in several ways. The corporate culture was characterised by arrogance, greed, and a focus on profit at all costs, which led to unethical behaviour and a lack of integrity within the organisation.
The leadership promoted a toxic environment of secrecy, competition, and distrust, using a “rank and yank” system that fostered internal competition and lack of trust among employees. The culture of prioritising financial gain and falsifying financial statements eroded ethical values and integrity, which if upheld could have shaped a very different culture, ultimately leading to the company’s demise. The intense pressure to keep Enron stock rising led to more significant risks with investments, inflated revenue, and hidden debts, creating a “house of cards” that eventually collapsed. The culture of greed and the “up-or-out” environment created a belief that employees were worth nothing if they were not extremely wealthy, fostering an environment of fear and cutthroat competition.
The company’s collapse led to significant financial losses for shareholders, employees, and other stakeholders. Enron’s demise also had broader implications, leading to increased regulatory measures and a heightened focus on corporate governance and ethical organisational culture in the business world.
The Enron scandal is a cautionary tale about transparency, ethical business practices, and regulatory vigilance in preventing corporate misconduct and financial fraud. And of culture gone wrong.
Work systems (infrastructure, tech solutions, goals, processes, procedures etc) and culture need to weave together like a double helix in the DNA structure. They need to work in harmony, considering each other along the way. When working well, they strengthen and fast-forward each other. But all too often they don’t interlink effectively, and the culture is negatively affected, as in the Enron example.
EXERCISE 5.1
• Can you think of any examples where you have experienced a misalignment between organisational infrastructure and culture? What were the results of that misalignment? How could alignment have been achieved?
• Why does such misalignments occur? How can they be avoided from the start?
• What does the Enron case study say to you?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://ap.themyersbriggs.com/content/Type_and_the_always_on_culture__TheMyersBriggsCo_2019.pdf
https://blog.bit.ai/collaboration-statistics/
Course Manual 6: How culture supports strategies and operations
As mentioned in the previous manual, work systems (infrastructure, tech solutions, goals, processes, procedures etc) and culture need to weave together like a double helix in the DNA structure to work effectively, consistently, and as intended. They need to work in harmony, considering each other along the way. And by doing so, they are strengthening and fast-forwarding each other.
Company culture is crucial in supporting and shaping an organisation’s strategies and operations. It influences how a strategy is developed and implemented and its overall success. The relationship between company culture and business strategy is interconnected, with culture serving as the backbone that supports the execution of strategic goals.
There can be many benefits emanating from organisational culture. With a transparent, strong, healthy culture, people know exactly how to operate, and this helps them to act with integrity for the good of all constituents, supporting the brand and the brand experience. In a fast-changing world, it allows people to act ethically and with confidence without necessarily having all the answers. This is possible by being supported by the agreed principles and playbook by culture. This drives consistent, long-term success, where actions and behaviours support practices and processes.
Culture is crucial in several ways when it comes to supporting a company’s strategies and processes. A strong and positive organisational culture can enhance performance, foster innovation, and contribute to the company’s success.
Here are some important ways in which company culture supports strategy and operations.
Alignment with strategic goals
Organisational culture must be aligned with the company’s strategic objectives to ensure long-term success. A strong culture encouraging collaboration, innovation, and accountability can support the implementation of strategic goals.
Behavioural support for strategy
Culture defines the shared values, beliefs, and behaviours that guide how employees interact and work together. A supportive culture encourages behaviours essential for the success of the business strategy, such as accountability, teamwork, and work ethic.
Execution of strategy
While a strategy is outlined on paper, the company’s culture determines how it is executed. A strong culture is essential for translating strategic plans into action.
Impact on decision-making
Organisational culture influences how business decisions are made, how resources are allocated, and how different initiatives are managed, which in turn affects the development and implementation of business strategies.
Attracting and retaining talent
A positive organisational culture can help attract and retain talent, leading to a workforce that is a more engaged and productive, which is essential for the successful execution of business strategies.
Alignment with company values and mission
A well-defined culture helps employees understand and align with the company’s values and mission. When employees share values and a sense of purpose, they are likely to work towards achieving strategic goals.
Employee engagement and productivity
A positive culture promotes employee engagement and satisfaction. Engaged employees are typically more productive, committed to their work, and willing to contribute to the success of the company’s processes and strategies.
Innovation and creativity
A culture that promotes creativity and innovation can catalyse the development of new strategies and improved processes. Employees feeling empowered to share ideas without fear of criticism fosters a more dynamic and adaptive organisational environment.
Adaptability and change management
A flexible and adaptive culture supports the company’s capability to act on business environment changes. A culture that embraces change in rapidly changing industries can help the company adjust its strategies and processes more effectively.
Communication and collaboration
Culture influences communication patterns and collaboration within the organisation. Open communication channels and a collaborative culture can facilitate sharing information and ideas, leading to better-informed decision-making and streamlined processes.
Customer focus
A customer-centric culture helps shape strategies and processes prioritising customer needs and satisfaction. When customer experience is prioritised, businesses are more likely to develop strategies that enhance customer loyalty and improve overall business performance.
Employee empowerment and autonomy
A culture that empowers employees and gives them autonomy can lead to a more agile and responsive organisation. When empowered, employees are more likely to take initiative, make decisions, and contribute to successfully executing strategies.
Talent attraction and retention
An appealing organisational culture can attract top talent and retain skilled employees. This, in turn, contributes to the effective execution of strategies, as the company benefits from a motivated and qualified workforce.
Ethical decision-making
Culture has a significant role in shaping ethical behaviour within the organisation. An ethical culture supports developing and implementing strategies and processes that align with ethical standards, enhancing the company’s reputation and stakeholder trust.
As highlighted throughout this manual, you can see that company culture is not just a so called “soft” issue; it is a critical factor that underpins the success of business strategies and operations. A strong and supportive culture is essential for translating strategic plans into action and achieving long-term success.
In summary, a solid organisational culture can drive the successful implementation of strategies and processes by influencing employee behaviour, fostering innovation, and creating a positive and adaptive work environment.
Let’s look at a specific example of strategic and operational change where culture, if utilised effectively, can be a major success factor.
DIGITAL TRANSFORMATION & AI
All organisations need to continually change, even transform, to be successful not just here and now but long into the future. And digital transformation is at the heart of pretty much all transformation. Technological advances are raising the bar as we speak. Which of these transformation reasons resonate with you and what you see around you in the world?
Staying competitive
In today’s digital age, businesses that fail to adapt to technological advancements risk falling behind their competitors. Digital transformation enables companies to modernise their operations, stay agile, and remain competitive in fast-evolving markets.
Meeting customer expectations
Consumers increasingly expect seamless digital experiences across all touchpoints. Through digital transformation, businesses can better understand their customers’ needs and preferences, deliver personalised experiences, and engage with them more effectively through digital channels.
Improving efficiency and productivity
Digital tools and technologies streamline processes, automate repetitive tasks, and optimise workflows, increasing efficiency and productivity. By digitising manual processes, companies can reduce errors, cut costs, and reallocate resources to more strategic initiatives.
Enabling data-driven decision-making: With the help of digital transformation, companies may obtain enormous volumes of data that can be examined to learn essential things about industry trends, customer preferences and company performance. Businesses may find opportunities for expansion, make well-informed decisions, and successfully manage risk by utilising data analytics and business intelligence solutions.
Enhancing innovation and agility: Digital technologies empower companies to innovate at higher speed, experiment with new ideas, and rapidly adapt to changing market conditions. By embracing digital transformation, organisations can foster a culture of innovation, encourage collaboration, and respond quickly to emerging trends and competitive threats.
Expanding market reach: Digital channels enable companies to connect with a wider audience and grow into new markets geographically. Whether through e-commerce platforms, social media, or digital advertising, businesses can leverage digital transformation to extend their market reach and attract new customers.
Creating value for stakeholders: Digital transformation can create value for various stakeholders, including customers, employees, shareholders, and partners. Companies can generate long-term value and sustainably grow their business by delivering enhanced customer experiences, driving revenue growth, improving operational efficiency, and fostering innovation.
Future-proofing the business: Embracing digital transformation is essential for future-proofing the business against technological disruptions and industry shifts. By continuously evolving and investing in digital capabilities, companies can adapt to changing market dynamics, make the most of new opportunities, and remain relevant in the digital economy.
Overall, digital transformation is not just about adopting new technologies but fundamentally reshaping how businesses operate, interact with customers, and create value in an increasingly digital world. Companies prioritising digital transformation are better positioned to thrive and succeed in today’s competitive landscape.
Change is sometimes enough, but the problem is that change often isn’t enough, or the efforts put into change are not impactful enough and therefore don’t really change anything other than what’s on the surface. People fall back into old habits – as habits die hard – we all know that. It’s like an ice cube that melts and changes into water. It’s not necessarily transformed; it’s only changed as it can be changed back again. It can become ice again if placed in the freezer.
Transformation on the other hand, real transformation, is a marked, significant change, where the change is so thorough, so disruptive, so – well, yes, transforming – that it can’t go back to what it once was. A bit like how a butterfly can’t transform back into a caterpillar.
Real transformation requires more than a well-managed project (to change processes, digital tools, organisational structure etc) – it requires a transformation of mindset, habits, and culture. And that transformation must be led from the top, where leaders themselves transform how they lead the organisation, how they behave, what they prioritise, and what actions and behaviours they ignite in others. Real transformation doesn’t happen overnight. It happens over time, through reflection, dialogue, action and insight. This builds sustainable habits which goes beyond simply an intellectual understanding. It cements the culture.
Digital transformation projects require a strong organisational culture to succeed. Here are some key insights:
Cultural change and continuity
Digital transformation involves cultural change and organisational continuity. Understanding how these aspects interact is crucial for successful transformation efforts.
Data-driven culture
Fostering a data-driven culture is essential for the success of digital transformation. Organisations must prioritise data literacy skills, training, and tools to leverage data effectively in their transformation initiatives.
Cultural requirements
Dr Pamela Hinds outlines five cultural shifts essential for successful digital transformation: customer-centricity, agility, unbounded collaboration, voracious learning, and a risk appetite.
Role of culture
Culture is a critical factor in digital success. Companies need a culture conducive to executing their digital strategies, including support from top leadership, breaking down silos, and overcoming risk aversion.
Inclusive culture
A fundamental shift in organisational culture, mindset, and processes is necessary for digital transformation success. Cultivating visionary leadership, agility, collaboration, learning and development, customer-centricity, and change management are vital to fostering an inclusive digital success culture.
These insights emphasise that a supportive and adaptive organisational culture is pivotal for the triumph of digital transformation initiatives alongside technological advancements.
Without it, it’s unlikely that transformation will happen.
We must transform how we think, how we behave, how we interact, how we collaborate, how we work with our stakeholders, how we measure success and more. Let’s look at some success factors.
Some key factors often attributed to the success of digital transformations are:
MEASURING THE IMPACT
Organisations can employ various methods to assess alignment, employee engagement, and performance to measure the impact of culture on business strategy. Here are some practical ways to measure this impact:
Define culture and strategy
Define your organisation’s culture and strategy, ensuring they support and reinforce each other.
Align culture with strategy
Use tools like the Balanced Scorecard or Strategy Map to evaluate how well your culture aligns with your strategic goals.
Quantify culture impact
Measure culture through surveys, interviews, observations, or analytics, focusing on metrics like employee engagement, customer satisfaction, innovation rate, productivity, and profitability.
Track business outcomes
Monitor critical indicators such as employee engagement levels, strategy adoption rates, cultural consistency in decision-making, and alignment-driven innovations to gauge success in aligning strategy with culture.
Use frameworks for alignment
Utilise frameworks like the Balanced Scorecard to map organisational performance aspects to cultural dimensions such as innovation, collaboration, accountability, and empowerment.
Continuous monitoring and improvement
Regularly survey employees to gauge engagement levels and track performance against strategic goals over time. Engage external stakeholders to assess how well the company’s culture and strategic goals are received.
When following these steps and using appropriate tools and frameworks, organisations can effectively measure the impact of culture on business strategy, leading to improved alignment, performance, and overall success.
SOME OTHER SOLUTIONS
Overall, policies and organisational cultures can be adjusted to drive desired employee habits and behaviour. For example, some organisations discourage employees from corresponding via email outside of work hours to help employers counteract an always-on culture like the once discussed in manual #5. This can be supplemented with technological default mechanisms that make it logistically more difficult or impossible to schedule meetings or send emails during off-peak hours.
This IBM case study provides great food for thought when it comes culture change in a world of business.
CASE STUDY: CULTURE CHANGE AT IBM – From traditional to agile
Until the late 1980s, IBM was known for its traditional and bureaucratic culture, which focused on strict hierarchical structures, formal procedures, and adherence to rules and regulations.
A focused culture transformation initiative was launched that would allow IBM to embrace a more agile and innovative culture. The company encouraged collaboration, flattened hierarchies, and invested heavily in employee training and development. Louis V. Gerstner Jr. played a crucial role in transforming IBM’s culture during his tenure as CEO from 1993 to 2002. When Gerstner joined IBM, the company faced significant financial challenges and needed a major overhaul to continue being competitive in the constantly changing landscape of technology. Here are some critical aspects of how Lou Gerstner transformed IBM’s culture.
Customer focus: Gerstner shifted the company’s focus from a product-centric approach to a customer-centric one. He emphasised understanding and meeting customers’ needs,
aligning IBM’s products and services with market demands.
Decentralisation: IBM was traditionally known for its highly centralised structure, with separate divisions operating as almost independent entities. Gerstner introduced a more decentralised organisational structure, breaking down silos and encouraging collaboration across different units.
Embracing open standards: Gerstner recognised the importance of open standards in the technology industry. He shifted IBM’s strategy from a proprietary approach to one that embraced open standards, promoting interoperability and collaboration with other companies.
Cost-cutting and efficiency: Facing financial difficulties, Gerstner implemented significant cost-cutting measures. This included streamlining operations, reducing bureaucracy, and eliminating redundant processes. The focus was on making IBM more efficient and agile.
Focus on services: Gerstner recognised the growing importance of services in the technology industry. He expanded IBM’s focus beyond hardware and software to include a strong emphasis on services, consulting, and solutions, which helped diversify the company’s revenue streams.
Cultural change: Gerstner worked on changing the company’s internal culture. He encouraged a more entrepreneurial mindset, risk-taking, and innovation. He emphasised a sense of urgency and responsiveness to market changes.
Employee training and development: Gerstner invested in employee training and development programs to ensure that IBM’s workforce had the skills needed for the rapidly evolving technology landscape. This helped employees adapt to new technologies and market demands.
Globalisation: Under Gerstner, IBM became more globally oriented. He expanded the company’s presence in emerging markets and recognised the importance of a global perspective in operations and customer relationships.
Strategic alliances and partnerships: Gerstner forged strategic alliances and partnerships with other technology companies. This approach helped IBM leverage the strengths of various industry players and collaborate on joint initiatives.
Lou Gerstner’s leadership revitalised IBM by promoting a more customer-centric, flexible, and innovative organisational culture. These decisions helped the company regain profitability and relevance in the ever-changing technology landscape.
EXERCISE 6.1
• How has digital transformation impacted your industry?
• What role has culture played in that transformation? How has it helped? How has it been counter-productive to the transformation?
• What have you learnt about culture and how it can support strategies and operations in this section?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://online.stanford.edu/5-cultural-requirements-successful-digital-transformation
Course Manual 7: Toxic cultures
Imagine a workplace where you are treated disrespectfully, where people go behind each other’s back, where your boss shouts at you – often where everyone can see and hear it.
Imagine having a sick feeling in your stomach on a Sunday evening because you know you are going to work tomorrow.
These are just a few signs of a toxic work culture. Sadly, many people have experienced toxic cultures resulting in employee turnover, inefficient job execution, poor customer experience and stagnation of ideas. It’s not just painful for those that experience it, it’s also a costly reality for numerous organisations.
CASE STUDY: FIVE TOXIC ATTRIBUTES
An MIT Sloan study in the tech industry found that more than anything, toxic cultures tend to be disrespectful, non-inclusive, unethical, cutthroat and/or abusive. These ‘Five Toxic Attributes’ are the culture characteristics that have the worst negative impact on how employees rate their firm’s culture on Glassdoor according to the study.
Let’s look at what’s meant by the ‘Five Toxic Attributes’.
Disrespectful
Any unprofessional, improper, unfriendly, unpleasant, unsettling, or offensive behaviour expresses a disrespectful workplace culture. It frequently causes harm to others and creates stress for team members and management. Some examples of disrespectful behaviours include interrupting others when they are speaking, disregarding others’ views, making rude comments or joking at someone’s expense.
Non-inclusive
When people feel excluded for whatever reason, they feel less valued, less important, and maybe even invisible. They are not made to feel part of the group, they don’t feel equal. This can be based on for example gender, race, age and sexual orientation, or cliques and sub-groups where you are either included or excluded. An example could be someone not being included in communication or an activity, and found out afterwards that they had been excluded.
Unethical
Unethical behaviour can be seen when people lie, deceive, make false promises, and mislead. Like respect, ethics is a fundamental aspect of culture that matters at both the organisational and individual levels. When people act unethically, they may do so out of selfishness or because they are unaware that their actions are going against moral standards or causing distress to others. There can, of course, also be situations where people act unethically without realising they are doing so. Such scenarios can include failing to consider crucial information when making decisions, failing to recognise the ethical implications of their actions, or simply not knowing what is acceptable in a particular community.
Cutthroat
Employee cutthroat behaviour is frequently the result of poor leadership. When a team sees that leaders are willing to win by whatever means necessary, they will wear their ‘boxing gloves’ to match them. People who work in a cutthroat environment often suffer from high levels of stress, unhealthy competition, persistent backstabbing, and unethical behaviour; and their mental and physical well-being eventually deteriorate.
Abusive
The most extreme example of an abusive workplace is physical abuse, but there are of course also more frequently verbal and threatening behaviours like bullying that takes place here. Bullying at work hurts employees’ health, well-being, productivity, and performance. Bullying at work does not always have to be blatant or overtly aggressive. It can also take on more subdued forms, such as gaslighting, which is when a bully acts abusively but then denies doing so to cause the victim of the abuse to question their reality and experiences.
CASE STUDY: WORKPLACE DISRESPECT
The most concerning form of workplace disrespect is physical violence; roughly 12 per cent of manual labourers and one in twenty office workers have experienced it. The APA’s Work in America Survey found that 95% of workers said that being respected at work was very or somewhat important to them. However, disrespectful experiences are far from uncommon: 24 per cent reported that someone within or outside their organization had yelled at or verbally abused them, and 19 per cent said they had experienced workplace bullying.
WHERE TOXIC CULTURES COME FROM
A toxic work environment is one where ineffective management methods, procedures, and rules are prevalent and encourage unproductive behaviours and disagreements among team members. Employees typically suffer as a result, as it may hinder their ability to be productive and advance their careers. Ineffective organisational cultures can also result in employee unhappiness and dissatisfaction, which motivates them to search for alternative employment.
Toxic work cultures can stem from various factors and are detrimental to employees and the overall organisation. Common causes of toxicity in the workplace include ineffective workplace practices, management styles, a lack of core company values, unfriendly competition, gossip, a lack of trust among employees, and high turnover rates.
These toxic environments can result in increased stress, burnout, anxiety, depression, and decreased productivity among employees.
Signs of a toxic work culture include a lack of core values, unfriendly competition, employees working late or on weekends, physical symptoms of stress, public criticism by managers, and high employee turnover.
To combat toxic work cultures and promote a healthier work environment, leaders must prioritise employee well-being, create open communication channels, address barriers that hinder productivity, and involve employees in discussions to fix these issues.
Additionally, fostering trust among team members, clarifying roles and responsibilities, promoting work-life balance, and preventing gaslighting behaviours are essential steps to mitigate toxicity in the workplace.
Organisations can improve employee morale, retention rates, and overall productivity by recognising the signs of a toxic work environment and taking proactive measures to address them.
To some degree, a toxic culture is institutional-centric, meaning that the organisation’s policies and procedures were created with the firm in mind rather than the employees. Negative workplace culture is also frequently characterised by out-of-date work policies, such as the mandate to work from the office, that are intended, incorrectly, to maximise productivity from employees or by providing benefits and perks that are inexpensive for the business but burdensome for the employees.
“A toxic workplace isn’t only toxic for the people who work there,
but also toxic for the company’s success” – Unknown
Big amounts of data analysed by Sull, Sull & Zweig shows that turnover is ten times more likely to result from a toxic culture than compensation. Employees feeling disrespected, unethical behaviour, and the inability to encourage diversity, equity, and inclusion are some of the main factors contributing to toxic environments.
The relationship between toxicity and attrition is not new. Prior to the Great Resignation (following the COVID pandemic), it was estimated that employee turnover brought on by a toxic culture cost US employers close to USD 50 billion annually.
HOW TOXIC CULTURES LOOK AND FEEL
Name-calling, making sarcastic remarks, and demeaning individuals in front of others are signs of toxic cultures, as is not paying attention when others speak; being uninterested, disengaged, or bored tells them they are irrelevant or that what they have to say is.
Another sign of rudeness is persistently cutting others off mid-sentence and finishing their sentences, as are facial expressions like rolling one’s eyes, having an arrogant attitude or smirking. Taking credit for someone else’s idea or work is another toxicity indicator. This results in distrust and a sense of not being valued, eroding employee engagement.
Toxic habits and behaviours are not necessarily intentional. When I collected qualitative feedback for one of my executive coaching clients, several of his stakeholders shared that he often pulled faces or smirked in meetings. When I was working through the anonymised feedback with him, he was completely taken aback by this. He didn’t realise that he was sending unintentional facial expression messages, and he was horrified to think that people thought he was mocking them or behaving in a bordering-on-bullying kind of way. The key takeaway here is that asking others how you come across and what behaviours others experience is a must for leaders. It puts you in control of your impact.
Observe the turnover rate in your organisation. If employees are leaving their jobs frequently, it may indicate other toxic elements. A high turnover rate typically indicates disorganisation, poor leadership, a lack of direction, or little opportunity. Something is likely going wrong with the culture when you notice rapid employee turnover.
There is no trust in a toxic culture, and without trust very little can be achieved. When trust is lacking, people become cautious and protective, which deteriorates collaboration and learning, and brings negative stress and often lead to people being overworked, and even burnout.
A toxic work culture can manifest in various ways, pointing to an unhealthy environment for employees. Some core indicators that a work culture is toxic include:
• High turnover rates, where employees leave the workplace frequently
• Lack of trust between employees and management
• Employees feel undervalued, disrespected, or unsupported
• Adverse effects on both employees and the company as a whole
Collectively, these signs point to an environment detrimental to employee well-being and overall organizational success.
WHAT TOXIC CULTURES LEAD TO
Businesses with a toxic culture will struggle to replace departing employees in addition to losing staff. When applying for a job, more than 75% of job seekers examine the culture of the potential employer. Companies cannot hide their culture issues for long in the age of online employee reviews. A toxic culture is the best indicator of a poor Glassdoor rating.
It is more challenging to attract candidates when your corporate culture and brand are toxic.
Bullying in the workplace can have long-lasting effects that extend beyond the office. It can lead to psychological and physical health issues, such as elevated blood pressure, anxiety, panic attacks, stress, and ulcers. Bullying can also cause physical symptoms like headaches, tense muscles, and changes in appetite. Bullying can also have an impact on the length and quality of sleep.
Yes, toxic cultures lead to things like
Improving a poor or even toxic culture should be a key focus, especially for companies where workers work closely together or have numerous direct encounters with consumers. People do not perform well in toxic work environments and cultures.
Businesses with high-performance cultures can better adjust to an increasingly competitive and ever-changing business environment. This culture helps you recognise and satisfy new client needs, enhancing financial performance.
HOW TO OVERCOME/REVERSE TOXIC CULTURES
This whole programme is here to raise awareness of the power of culture and how you as a leader play a big role in shaping the culture where you work. This of course includes spotting and turning around a toxic culture. We’ll touch on a summary of few key factors here but rest assured that the programme as a whole will give you solutions and help you develop the skills that can develop healthy cultures, the ultimate antidote to toxic ones.
The first step is to understand the culture, to do a culture study, capturing employee experiences to get a grasp on what the culture looks and feels like for them. It’s worth keeping in mind though that in a toxic environment people may be reluctant to share truthful feedback, so work may be needed to reassure the effort is genuine and done for good reasons. This is then followed by behavioural focus, starting with the leaders, helping them understand what role they can play in creating a healthy work culture, or turning around a toxic one.
When leaders lead with behaviours consistently applied, they create a professional atmosphere where employees feel appreciated, acknowledged, and heard. These positive behaviours also contribute to the business’s success by boosting creativity and innovation, enhancing team dynamics and effectiveness, and elevating the company’s brand both as a workplace and for its products and services.
To address a toxic work culture, several strategies can be implemented. These may seem obvious but through conscious focus, they can be applied with intention and continuity.
Build trust: Foster trust between employees and management to create a more positive work environment.
Value and support employees: Ensure that employees feel valued, respected, and supported within the organisation.
Engage in conversations: Encourage open dialogues to address issues and concerns within the workplace.
Focus on critical drivers: Focus on critical drivers like leadership, accountability, and alignment to combat toxicity in the workplace.
Recognise signs of toxicity: Be aware of signs of toxicity, such as high turnover rates and employee dissatisfaction, and take proactive steps to address them.
By implementing these strategies, organisations can work towards creating a more positive and healthier work culture for their employees.
An inclusive, thoughtful, and hostile-free work environment where all members of the collective feel secure, seen, and valued is fundamental to a good work culture. People should be treated with respect, equality, and justice in this setting.
Disrespectful employee behaviour has far-reaching adverse consequences like distrust, lower productivity, and decreased profitability. When dealing with rude staff, it is essential to use multiple strategies, from hiring and training to enforcing disciplinary actions, and evaluate these strategies to measure their effectiveness. Building a workplace culture that values respect and professionalism is critical for maintaining a positive work atmosphere and contributing to the organisation’s success.
Establish clear expectations for employee behaviour from the start of the onboarding process. Explain and document expected behaviours, such as professionalism, respect, and communication. Share examples of what happens when respectful and disrespectful behaviours are displayed. For instance, stress the value of inclusive communication when interacting with clients, peers, and other stakeholders. And remember that leaders are culture shapers, your own behaviours are contagious so choose them with care.
Toxic cultures are bad both for people and for business and must be addressed in a non-toxic way. Sometimes when aiming to address toxicity, leaders may inadvertently behave in toxic ways (e.g. shaming people publicly), so it’s worth thinking through the foundation of a healthy culture and behaving in accordance with that. That’s what we will focus on in the next section.
EXERCISE 7.1
• Where have we seen toxicity in our careers? What did it look at feel like? And what did it lead to?
• Look at your own habits and behaviours: Might you, even if unintentionally, create an element of toxicity in the workplace? In meetings etc?
• What actions would you take if you noticed toxic habits and behaviours in the workplace?
• What data above did you find the most interesting? Why? And how can you make use of that data?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://sloanreview.mit.edu/article/why-every-leader-needs-to-worry-about-toxic-culture/
https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being
https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being
https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/
https://consultthehive.com/insights/articles/addressing-toxic-workplace-culture/
Course Manual 8: The foundations of a healthy culture
A healthy organisational culture that is well-articulated can make a significant difference in a variety of outcomes. A great culture encourages teamwork and positive interactions, providing employees with the freedom to think creatively. Employees that believe in their organisation’s mission put in more effort on an individual basis and perform better while being more engaged. Healthy, well-functioning workplace cultures are typically established with the business’s mission and core values in mind and maintained by employee feedback, evolving priorities, and diversity of thought. Since no two firms have the same aims or value proposition, no two cultures are the same.
While workplace cultures are significant, the people within them are even more so – as they are the carriers of culture. Without employees’ engagement, productivity, and output, businesses cannot exist, and a positive workplace culture is not necessary. This is why leaders should always consider employees’ needs and opinions.
Culture success doesn’t happen by chance, there is a recognisable pattern to it. A healthy culture tends to have similar foundations – like leaders living the values (not just talking about them in a theoretical way), respectful and ethical behaviours, inclusivity, transparency, and care for others. And of course, a shared purpose, a vision to aim for.
“Customers will never love a company until the employees love it first.”
Simon Sinek
Let’s look at those foundational factors in more detail.
SHARED PURPOSE
Whatever a person’s role within an organisation, they need to understand how they fit into the bigger picture. Finding meaning and fostering a sense of shared purpose are crucial to unlocking performance and goal achievement. In its simplest form, shared purpose is the idea that everyone in your organisation is aligned to the same mission. People know how they make a difference, why they are needed. Where there is a shared purpose, drive, collaboration, and a shared sense of belonging follow. This leads to more engaged and motivated employees, which drives high performance.
The purpose is not just a “nice-to-have” in today’s workplace; leaders must integrate it into the organisation’s core principles and people’s work. Today, stakeholder relations, customer value, employee engagement, and company reputation depend on a clear purpose and awareness of impact. So, effectively integrating purpose into everyone’s day-to-day work is very important.
An organisation’s purpose is inextricably linked to every individual that makes up the organisation, so leadership should not prescribe the purpose top-down but aim to find ways to include employees in the journey. The more there is a sense of co-creation, the more people will buy into it and support it.
Leaders must understand what matters to and is meaningful to their workforce. When companies arrive at a purpose through transparent communication and teamwork, employees are more inclined to take action because they can see how their work fits into the bigger picture. These conversations and working hours must be valued equally with other aspects of the workplace, with the process being maintained and made evident in daily operations and employee growth.
CASE STUDY
In his book ‘Drive: The surprising truth about what motivates us’ Daniel H Pink talks about the difference between extrinsic and intrinsic motivation. Extrinsic motivation is awarded by someone outside of ourselves (e.g. leaders, parents) in the form of rewards or punishments which make us do or not do something. Intrinsic motivation on the other hand comes from inside when what we do resonates with what matters to us. The following three factors were identified as the drivers of intrinsic motivation: Autonomy, Mastery and Purpose. This means that the more people can find their own intrinsic motivation, and the more leaders can facilitate and enable that, the more employees will have drive and motivation for a purpose that is meaningful to them.
Autonomy refers to the degree to which we feel we are in control of our own situation. The more we feel we have the freedom to do our jobs the way that works best for us (to use our strengths, personality, and experience in the most effective way). This is about feeling empowered to the greatest possible degree. Workers who are free to choose how they carry out their duties are more satisfied, dedicated, productive, and devoted than those whose every move is dictated to them. Autonomy also significantly impacts how engaged employees are with their work and the organisation, and it influences their decision to stay or look for other opportunities. A well-known example of autonomy can be found at Google, whose engineers are allowed, even encouraged, to use 20% of their time working on projects of their creation that align with their core passion and purpose. Over 50% of Google’s most significant revenue-generating products, such as AdSense, Gmail, Google Maps, Google Earth, and Gmail Labs, have come from that 20% concept. For 20 years, Google has worked with autonomy as a driver of innovation and employee engagement.
Mastery refers to becoming more and more of a master at something that matters to you. It’s about developing those skillsets that you enjoy, and probably also are good at, your strengths. It’s noticing that what you do allows you to sharpen your skillset while also contributing in a more meaningful way when you can deploy those skills at work. A commitment to being the best at everything in your work will lead to a disjointed approach and, potentially, a diluted impact. While it may go against societal pressure to add more and more to your plate, the reality is that you have limited time and energy. This is why focus is a crucial mark of mastery. Everyone leaves a legacy through their career and life—a lasting influence on everyone who has ever worked with you—which can only be achieved through mastery.
Purpose refers to contributing to something that is bigger than us. Just going to work to be paid tends to lose it allure over time. When people can see that what they do contributes to something beyond themselves, their ability to make a difference, it lights a fire within that has its own rewards and drive. We all want to make a difference in some way. Money is often the most important thing at the beginning of your career. It will remain important in your life, no question about it. However, after a few years of working, the money will be assumed and, therefore, be less of a driver. One day, you will want to enjoy what you do for a living rather than “fall” into your workday. You will need something more than money to wake up smiling and looking forward to your workday in the morning. This is something more, your “higher purpose” at work. It is something that provides you with a sense of fulfilment and fulfilment beyond financial transactions like compensation.
LEADERS LIVING THE VALUES
Culture is not about what we say, it’s what we do, it’s who we are. And leaders living the values of the organisation is crucial. There are many ways this practice has been described over the years. How about ‘walking the talk’, ‘practice what we preach, our ‘say-do ratio’?
Assuming they align, the organisation’s cultural values, along with our own, provide us with a stable and guiding basis that we can use to orient ourselves, our goals, and our decisions. When we operate and lead with values and culture in mind, we may reduce work complexity, struggle, and stress. This of course highlights the crucial importance of self-leadership, to know yourself so well that you understand what your values and driving forces are, so that you can make the best decisions for yourself, including choice of work. If our values don’t align with the cultural values of the company we work for, we may not be able to operate at our best. This also highlights the need to hire for cultural fit, to help new employee recognise what their own values are and how that fits with the organisation’s.
What we are talking about here is behavioural focus, for leaders to understand the power of behaviours when it comes to shaping a great culture. Respectful and ethical behaviours are at the heart of healthy cultures. The behavioural aspect is often overlooked, there tends to be more focus on WHAT to do (processes, tasks, actions) than HOW to be (behaviours, behavioural habits).
CASE STUDY: THE IMPORTANCE OF VALUES
A 2018 survey by LinkedIn found that values are the number one priority for employees. Just under two-thirds (71%) would take a pay cut to work for a company with shared values and a mission they believe in, and 39% would leave their current job if their employer asked them to do something that conflicted with their morals or ethics. Nearly half (47%) want to work in an environment where they can be themselves and positively affect society (46%). Employees care about corporate values. Some of them care about them so much that they will decide who they work for and why.
INCLUSIVITY
Regardless of colour, age, physical ability, or gender, inclusive workplaces give all team members equal access to opportunities and professional resources. Businesses must understand this practise because it can foster a kind and secure work environment. It can also help them draw and retain top talent and boost productivity.
Creating an inclusive culture involves establishing inclusive leadership, setting flexible policies, adopting inclusive recruitment practices, celebrating workplace diversity, promoting allyship, and creating accessible environments.
An inclusive workplace attracts diverse talent and retains it effectively, leading to higher employee satisfaction and retention rates. Companies prioritising diversity and inclusion benefit from increased innovation, better problem-solving capabilities, improved decision-making processes, and enhanced revenue generation.
Fostering an inclusive work environment empowers employees, nurtures loyalty, encourages feedback, and contributes to positive organisational change. Employers can encourage employees to voice their opinions by providing a safe space to express their curiosities without fear of repercussions. While company policies may not allow for the inclusion of every worker’s viewpoint, offering a listening ear will inspire the need to create an inclusive workspace for all team members.
Let’s summarise. Inclusivity at work is crucial for several reasons. How about these?
Enhanced performance
Inclusive workplaces improve engagement, decision-making, collaboration, innovation, and overall business outcomes.
Employee retention
Inclusive environments contribute to higher employee retention rates as employees feel valued, respected, and supported, leading to increased job engagement and loyalty.
Diversity management
Inclusion makes diversity work effectively by ensuring that diverse teams are managed well, leading to better performance and innovation.
Employee well-being
Inclusive cultures promote pro-social behaviour, self-regulation, a sense of purpose, and overall well-being among employees, reducing social anxiety and enhancing mental health.
Market advantage
Diverse and inclusive organisations are more likely to capture new markets, innovate faster, and outperform their competitors, highlighting the strategic advantage of inclusivity in the workplace.
Inclusivity impacts work culture significantly by fostering a sense of belonging, enhancing productivity, promoting innovation, improving decision-making, and boosting employee engagement. Research shows that inclusive workplaces lead to greater pro-social behaviour, self-regulation, a sense of purpose, and overall well-being among employees.
CARE FOR OTHERS
People spend a lot of time at work. With a foundation of genuine care for one another (it’s not just the leader’s role) opportunities for learning, collaboration, fun and support are created. Being genuinely interested in others, accepting others as they are, and listening with genuine curiosity and without prejudice are great ways to show we care. And imagine what it feels like to work in a company where that is the norm. It’s compelling. Care for others is a factor of some importance when it comes to how great teams work. We will talk more about this when we focus more on teams.
Caring for others at work is crucial for organisational culture. It fosters a positive environment where employees feel valued, supported, and motivated. A caring workplace culture emphasises empathy, compassion, and understanding, improving employee morale, satisfaction, and loyalty. When leaders prioritise caring for their team members, it results in better mental health for employees, reduced turnover rates, lower onboarding costs, and enhanced customer satisfaction.
Studies show that a culture of care can mitigate the negative impact of challenging events and create opportunities for positive organisational change. Companies can boost performance, retention rates, and overall success by investing in employees’ well-being and professional growth.
Establishing a culture of care involves translating caring language into meaningful actions that positively impact employees’ daily lives. It goes beyond superficial gestures or statements on company websites; it’s about consistent efforts to create an environment where individuals thrive personally and professionally.
Building a caring culture includes providing meaningful work, encouraging vulnerability and support, offering well-being programmes, fostering regular communication, focusing on candidates’ potential during hiring, and ensuring a moderate workload for every employee.
Leaders can show care for others by implementing various strategies that demonstrate genuine concern for their teams. Here are six critical ways to do just that.
1. Get to know others. Leaders should show an appropriate level of interest in their team members’ lives, ask questions, listen actively, and remember important details about them, such as birthdays and family events.
2. Value opinions and ideas. Engage with employees about their roles, ask for their input, and show that their opinions are valued.
3. Be transparent. Open and honest communication fosters trust. Share successes, failures, and market insights with your team to create a culture of transparency.
4. Trust employees. Avoid micromanaging and empower your team to make decisions. Encouraging new ideas and feedback builds a more satisfying work environment.
5. Give praise. Offering genuine praise boosts morale and self-esteem. Specific compliments tailored to individual achievements are particularly impactful.
6. Lead by example. Demonstrate the values you expect from your team. As mentioned before, living by the culture you promote sets the tone for the entire organisation.
By incorporating these practices into their leadership approach, leaders can cultivate a caring environment that enhances employee well-being, resilience, and overall team performance.
In conclusion, a caring culture in the workplace is not a trend but a foundational aspect that significantly influences organisational success and employee well-being. By prioritising empathy, support, and genuine concern for employees, companies can create a nurturing environment that drives excellence and unity within the organisation.
EXERCISE 8.1
• To what degree can the foundations of a culture be impacted by leaders and employees?
• How clear is the shared purpose for your team/division/company? Would it benefit from being made clearer, more explicit? If so, how could you achieve that?
• What aspect of intrinsic motivation could you focus on more to ignite engagement in your team?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://neuroleadership.com/your-brain-at-work/benefits-of-inclusion-at-work
Course Manual 9: How culture can be created, changed, and shaped
Creating, changing, and shaping culture is a strategic and operational concern for organisations. As the culture is a success driver which can and should be used as a vehicle for business strategies and plans, it can’t be left to chance. There is plenty that can be done to take control of the culture. Indeed, this whole program is about how we can do this.
At a high level it comes down to pro-actively working with the culture by
• identifying desired culture and existing culture, and then analysing the gap between the two
• identifying the culture drivers – values, behaviours, structures, communication etc
• finding culture stories and communicating them
• involving everyone in the culture as culture carriers
• showing the links between culture and outcomes
In all instances it’s about taking control of the culture, to maximise the power of the culture for sustainable success. Changing a company culture is a process that requires time and effort. Changing a company culture can take anywhere from months to several years, depending on the scale of change and organisational dynamics. The CEO plays a crucial role in driving culture change, and their commitment and leadership significantly impact the pace and success of cultural transformation.
Yes, culture change is an ongoing process that needs attention and effort throughout; it is a journey of constant improvement. Leadership commitment, alignment with organisational goals, and continuous monitoring are critical factors in successfully changing a company’s culture.
As mentioned before, it starts with the leaders. An organisation’s culture is greatly influenced by its leaders. Leaders must embody the culture and explain the significance of culture change, provide an example of the appropriate behaviours and values, and provide the tools and resources necessary to effectuate it to improve culture transformation.
CREATING A CULTURE FROM SCRATCH
When an organisation is formed, culture can be considered from the start.
As we’ve discussed, part of the foundation of any company culture is its set of values, which will determine everything from how employees interact to the expectations surrounding work. Therefore, defining the values is the first step in creating a company culture. The leadership team (or the whole team) would explore and identify the values they wish to incorporate into their culture. Whichever values a company has, it is critical to identify them at the outset, as they will serve as the cornerstone of the culture. This would also involve getting specific about the kind of behaviours and actions that would embody the culture. Alternatively, if work-life balance is central to a company’s culture, one of their goals could be to require all employees to take at least X weeks of paid time off each year or log off at 5 pm at least two days a week. It starts with considering the corporate values and how to live those values in the culture.
Employee involvement throughout is vital. This is not just a leadership exercise. As employees are the ones whom the company culture will most impact, asking them what kind of culture they would like to work in is a must. The cultural work greatly benefits from their ideas about what their ideal corporate culture looks like, and then use their answers to inform their organisational culture strategy.
As mentioned, company culture is fundamentally about individuals’ daily experiences with an organisation. It’s about ‘how things are done here’. Consequently, when creating a company culture, it is critical to consider how to implement that culture in the workplace. The company culture is the employees’ daily work experience, so when creating a culture, it’s essential to consider how to integrate the culture into the day-to-day work experience.
Here are 9 steps to consider when creating a culture from scratch.
1. Define your ideal company culture: Start by defining what you want your company culture to look like. This involves identifying the values, behaviours, and standards shaping your work environment.
2. Share vision, mission, values, and goals: Clearly define and communicate your company’s vision, mission, values, and goals. This foundation is crucial for building a strong culture that aligns with your organisation’s objectives.
3. Focus on employee wellness: Prioritise employee wellness to create a positive work environment. Healthy employees are essential for fostering a great company culture.
4. Encourage healthy communication: Foster open and healthy communication within your organisation. Effective communication is vital to a positive work environment.
5. Ask for employee input: Involve employees by seeking their input and feedback. Their insights can help shape the culture and make them feel valued.
6. Continuous monitoring and feedback: Regularly monitor employee engagement and gather feedback through surveys. This ongoing evaluation helps refine and improve the company’s culture.
7. Align recruitment practices with values: Ensure your recruitment practices align with the company’s core values. Hiring individuals who resonate with your culture is essential for its sustainability. A small word of warning against similarity bias though – striving for culture alignment mustn’t hinder diversity which is crucial when it comes to collective intelligence and innovation. We’ll come back to this topic later in the programme.
8. Promote workplace relationships: Encourage the development of workplace relationships among employees. Strong relationships contribute to a positive and collaborative work environment.
9. Reinforce core values: Reinforce your core values through workshops, onboarding processes, and daily practices. Consistent reinforcement helps embed these values into the organisational culture. Be a role model for the values.
CHANGING OR SHAPING AN EXISTING CULTURE
CASE STUDY
When leading a cultural change/shaping initiative within American Express Europe, we identified that two of the key cultural factors to focus on were leadership and communication as they have such a big impact on employee experience. There was already a good culture, but the decision was made to be more intentional in shaping the culture to truly provide a workplace where people choose to be and can deliver the best customer experience.
One of the first things we did was to invite employees to be part of a project group to explore the Employee Vision – what employees wanted it to be like to work there. This was a very exciting and engaging project that highlighted the feel of the ideal work environment.
We then took the Employee Vision and overlayed it with the company vision and the regional goals and objectives. In doing so we could clearly see where they gaps were that we could work on to further enhance employee experience.
Here are some other proven tactics for changing or shaping an existing culture.
1. Diagnose current culture and define desired culture: Start by diagnosing the current culture and defining the desired future state culture you wish to move towards. Understand the existing culture and design an approach to shift it towards the desired state. Involve employees here, let them have a say in what they need to do their work.
2. Create a clear vision and plan: Having a well-defined future state and a well-thought-out plan on how to get there are critical for effectively changing an organisation’s culture. Tracking progress and holding the organisation responsible requires measurable goals, timetables, and key performance indicators, all of which should be included in the plan. Set priorities.
3. Unify leaders and employees: Create shaping experiences and action plans that unify leaders to drive culture transformation and develop common behaviours aligned with the desired culture. Ensure everyone is clear on behavioural expectations.
4. Activate desired culture: Activate the desired future state culture through workshops starting with top leadership and flowing through the organisation. Guide leaders and teams towards specific behaviours aligned with the desired culture. Adapting new behaviours, skills, and knowledge is frequently necessary to change an organisation’s culture. Organisations should prioritise training and development initiatives that assist staff in acquiring the skills needed to support the intended culture and achieve culture change. Since culture is dynamic, training must have robust feedback loops and repeated behaviours.
5. Integrate people processes and systems: Changing a culture involves more than simply modifying attitudes and behaviours; it also entails aligning processes and systems to promote the intended culture. Organisations should assess their systems, practices, and policies to ensure they support the appropriate behaviours and values and align with the intended culture to facilitate better cultural transformation. Align all people processes, systems, performance drivers, and talent processes with the desired behaviours. Develop action plans to integrate them with the desired culture.
6. Reinforce desired culture in organisational systems: Ensure all critical systems are revised to reinforce desired behaviours. Modify recruiting, assessment, performance management, and development processes to drive the culture.
7. Rapidly reward emerging culture: Empower managers to immediately recognise and reward people for displaying new behaviours aligned with the emerging culture. Encourage just-in-time recognition to accelerate the adoption of new behaviours.
8. Recognise culture change as a marathon: Understand that culture change is a long-term process that requires ongoing effort and resources. Celebrate progress along the way and measure success through breakthroughs in cultural transformation. Be patient.
These steps give clarity to achieve cultural change, align employees with company values, and create a positive work environment that supports business objectives.
CONSIDERING CULTURAL DIVERSITY IN INTERNATIONAL ORGANISATIONS
When wanting to shape the company culture of a global and culturally diverse company, the following six strategies can help to weave in national and regional cultures.
1. Define a global culture blueprint: Conduct an in-depth diagnosis of the existing cultural attributes across different regions and create a global culture blueprint that unites the diverse teams as one cohesive unit with shared cultural goals.
2. Cultural intelligence and cross-cultural collaboration: Embrace cultural intelligence by creating an awareness and appreciation for cultural differences. Encourage cross-cultural collaboration internally to leverage diverse perspectives, enhance problem-solving abilities, and foster organisational creativity.
3. Cultural due diligence in M&A: When engaging in mergers and acquisitions, conduct cultural due diligence to identify and manage cultural differences between the acquirer and seller. Evaluate critical areas like communication, decision-making, and performance management to ensure successful integration.
4. Promote inclusivity and diversity: Establish mentorship programs for diverse talent, create an inclusive work environment, and promote diversity within the organisation to ensure that employees from various cultural backgrounds feel valued and safe in their work environment.
5. Continuous communication and alignment: Define and share the company’s mission, values, and goals across all regions to provide a common foundation for the global workforce. Continuously monitor employee engagement, gather feedback, and align recruitment practices with company values to maintain cultural alignment.
6. Adaptability and evolution: Recognising company culture is a dynamic, evolving process. Be open to adjusting along the way while staying true to the core values and mission of the organisation. Building a positive organisational culture requires ongoing effort from all company levels.
By implementing these strategies, a global and culturally diverse company can effectively shape its culture to foster inclusivity, collaboration, innovation, and success across different regions and among employees from diverse backgrounds.
WHY CHANGING OR SHAPING A CULTURE CAN BE CHALLENGING
It’s only natural that a shift in culture can create all sorts of hurdles. As culture is at times unclear in its building blocks, it requires careful consideration to be successful in a culture change. Let’s explore some of the reasons.
Resistance to change
People often resist change, especially if it threatens their status quo, job security, or comfort. Overcoming this resistance and getting employees to embrace new cultural values can speed up the process of culture change.
Lack of leadership buy-in
Culture change efforts may gain traction with strong leadership buy-in, ownership and support. Leaders are crucial in shaping an organisation’s culture and must actively promote and model new cultural values and behaviours.
Employee burnout
Increased levels of employee burnout, mainly due to external stressors like the pandemic, can limit employees’ bandwidth to engage in additional change efforts, thus slowing down the pace of culture change.
Lack of resources
Cultural change requires time, people, and resource investment. Without adequate investment in training, development programmes, and other resources, meaningful progress in changing the culture may be challenging.
Deeply embedded behaviours
Changing an organisation’s culture involves shifting deeply embedded behaviours and norms, which can take time and effort. Existing organisational processes, systems, or structures often reinforce these behaviours.
To address these challenges effectively when changing company culture, leaders can take proactive steps such as involving employees in the process, creating a clear vision and plan for change, prioritising learning, and development programmes, aligning processes and systems with the desired culture, and ensuring that incentives reinforce desired behaviours.
By recognising these challenges and implementing strategies to overcome them, organisations can more effectively navigate the complexities of cultural transformation.
CASE STUDY: VOLVO IT
Volvo IT, a global company based in Gothenburg, Sweden, embarked on a culture change journey from 2000 to 2011. Led by a full-time culture manager, the company proactively transformed its culture to align with changing market conditions and strategic ambitions.
Key themes in the culture change journey:
Grow one company: The Volvo IT identity (2000–2002)
Volvo IT consolidated IT departments from seven Volvo business units, leading to internal positioning and competition. The challenge was to develop a shared set of values and culture among dispersed teams to create a unified identity.
Grow customer focus (2003–2008)
After establishing internal cultural norms, Volvo IT shifted focus externally to customer/supplier relationships. The company expanded from 3,000 to 7,000 employees, emphasising new behaviours and attitudes towards external customers.
Ensure resilience: Culture in downturn (2008–2010)
During the financial crisis, Volvo IT faced a decline in business and had to make tough decisions, including laying off employees. Leadership maintained values to preserve the desired culture and trust, resulting in high employee satisfaction rates.
Realise strategy: Culture as an enabler (2010–2011)
Volvo IT focused on fulfilling its strategy while nurturing and evolving its culture as the market recovered. The company achieved high levels of employee satisfaction, increased customer satisfaction, and improved project delivery precision.
Outcomes
Volvo IT maintained high employee satisfaction levels even during layoffs. Customer satisfaction increased significantly, and project delivery precision improved substantially.
It was recognised as the best in class for being the most attractive IT employer.
This case study demonstrates the power of commitment to a culture change journey and how aligning culture with strategic goals can drive organisational success and resilience over time.
EXERCISE 9.1
• When and where have we seen efforts to create, change or shape a culture? What happened and what were the results?
• To what degree do we know what our employees want the culture to be like? How they want the ideal working environment to be? How could we find out?
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://www.sweetrush.com/culture-change-case-study-volvo-it/
Course Manual 10: Companies with strong, clear, healthy cultures
Starbucks was founded around the experience and the environment of their stores. Starbucks was about a space with comfortable chairs, lots of power outlets, tables and desks at which we could work and the option to spend as much time in their stores as we wanted without any pressure to buy.
The coffee was incidental.
Simon Sinek
What do companies with strong, clear, healthy cultures, do? How does culture act as a differentiator and success factor? What can we learn from them?
Building on what we covered in the last section, the foundations of a healthy culture, let’s get real and focus on some well-known companies where culture plays a big role in their success. As you’ll see in all these examples, the foundations mentioned are all there.
SOME EXAMPLES OF STRONG, HEALTHY CULTURES
Let’s look at examples of companies that have successfully built strong, clear, healthy cultures, what results they have achieved and what we can learn from them and implement for ourselves.
IKEA
One such example is IKEA, the home-furnishing and furniture chain, operating globally in 62 markets with more planned. IKEA is known for its culture, which is shaped by direct, down-to-earth people who like getting the work done. It’s non-hierarchical and informal. It is less about status or an official position. IKEA’s culture is influenced by Swedish heritage that originated in Småland in southern Sweden. In Sweden, where there are charming seaside villages and boundless forests, nature is a significant part of daily life. People here work hard, are no-nonsense and humble, are kind to one another, and closely interact with and look after the natural world. And they are careful with money. These characteristics reflect in IKEA’s ideals, which serve as the cornerstone of IKEA’s culture. The clarity of culture has allowed them to hire for culture fit, as they know that this is a win both for their co-workers and for the company. It also helps co-workers to operate effectively, make decisions and solve challenges – the values and behaviours that shape the culture become an enabler of empowerment. Let’s look at some of the details.
Democratic design
IKEA is committed to “democratic design”. which involves making well-designed, functional, and affordable products accessible to as many people as possible. This principle guides their product development and design processes.
Cost-consciousness
Frugality, as mentioned above, is a significant aspect of IKEA’s culture. The company is known for its cost-conscious approach, which includes efficient supply chain management, flat packaging to reduce transportation costs, and offering self-assembly options for customers.
Team collaboration
IKEA places a strong emphasis on teamwork and collaboration. Employees are encouraged to work together across departments and contribute their ideas. The flat organisational structure allows for open communication and quick decision-making.
Employee empowerment
IKEA values its employees and believes in empowering them. The company often emphasises how each person contributes to the organisation’s overall success. Employees are encouraged to take on responsibilities and contribute creatively to their work.
Sustainability
Sustainability is a crucial focus for IKEA. The company strives to integrate environmentally friendly practices into its operations, from sourcing materials responsibly to reducing waste and energy consumption. This commitment to sustainability is linked with broader societal values and obligations.
Inclusivity and diversity
IKEA promotes an inclusive and diverse workplace. The company believes that a diverse workforce enhances creativity and innovation. IKEA strives to create an environment where employees feel valued regardless of background.
Customer-centric
IKEA strongly emphasises knowing their customers and meeting their needs. The company aims to offer affordable and well-designed products that enhance the quality of life for its customers.
SOUTHWEST AIRLINES
Another example is Southwest Airlines. One of its most prized assets is its culture.
Herb Kelleher, the company’s founder, is credited with fostering the notion that profitable business results from having content people. With the “Warrior Spirit,” “Servant’s Heart,” and “Fun-LUVing Attitude” as its guiding principles, Southwest expects its employees to demonstrate tenacity, perseverance, proactive customer service, and good humour in everything they do. Managers are urged to train for skill and hire for attitude. The values of gratitude, celebration, and acknowledgement are important to Southwest’s service culture. Employees at Southwest take the opportunity to acknowledge one another in formal and informal settings, such as through internal awards and activities. The company’s outstanding financial results reflect the success of Southwest Airlines’ culture. Southwest’s culture and people management strategies give the company a competitive advantage. In 2020 Southwest was the only significant airline operating profitably for more than 45 years straight. Without its culture, it would have been unlikely for Southwest to consistently receive the honour of being one of Fortune’s Most Admired Companies for more than 23 years.
These cultural elements have contributed to Southwest’s reputation as a unique and successful airline with a commitment to both its employees and customers. The company culture is often cited as a critical factor in Southwest’s ability to weather challenges and consistently keep a positive brand image in a competitive industry.
Let’s have a look at some critical aspects of their culture.
Fun and light-hearted atmosphere
Southwest is often described as having a fun and informal work environment. Employees are encouraged to bring their personalities to work, and humour is essential to the workplace culture.
Employee empowerment
The company places a strong emphasis on empowering its employees. Southwest believes that happy and engaged employees lead to satisfied customers, as reflected in its policies and practices.
Teamwork and collaboration
Southwest fosters a sense of teamwork and collaboration among its employees. Teamwork is a core value, and employees are encouraged to work together to achieve common goals.
Servant leadership
The leadership style at Southwest is often characterised as servant leadership. Leaders are there to serve and support their teams, helping them succeed and grow.
Customer-centric focus
Southwest is renowned for its commitment to providing excellent customer experience, where employees are encouraged to go the extra mile for customers, and this focus on customer satisfaction is ingrained in the company’s values.
Open communication
The company promotes open and transparent communication. Employees are actively asked to share their ideas and opinions, fostering an environment where everyone’s voice is heard.
Loyalty and long-term employment
Southwest has historically had low employee turnover compared to other airlines. The company values loyalty, and many employees have long tenure with the airline.
Focus on work/life balance
The organisation recognises the importance of work-life balance and works to provide a suitable environment for its employees to have a healthy balance between their professional and personal lives.
Inclusive culture
Southwest has been recognised for its commitment to diversity and inclusion. The company values a diverse workforce and has implemented initiatives to ensure an inclusive workplace.
Entrepreneurial spirit
The airline encourages an entrepreneurial spirit among its employees, fostering an environment where creativity and innovation are embraced.
CASE STUDY: WHY STRONG, HEALTHY CULTURES ARE IMPORTANT
46% of job applicants think company culture is very important when applying for a job, with 88% finding it at least relatively important.
Organisations with great cultures are 72% more likely to invest in leadership development than others.
In an organisation with a high company culture, the probability of employee turnover is only 13.9%, while in a low company culture, it is 48.4%.
High company culture refers to a set of values, beliefs, and behaviours within an organisation that enable it to achieve excellent results, high levels of growth, and employee engagement.
Low company culture refers to an organisational environment in which values, behaviours, and beliefs do not support employee engagement, growth, or success
PATAGONIA
Patagonia, a renowned clothing company, has a rich history that intertwines innovation, environmental consciousness, and a commitment to quality. Founded in 1973 by Yvon Chouinard, the company’s origins trace back to Chouinard’s passion for climbing and his desire to create functional and durable gear for himself and his friends. What started as a humble endeavour of making climbing equipment like pitons evolved into a full-fledged clothing brand with a unique ethos.
Patagonia is known for having a distinctive and socially responsible company culture. Here are some critical aspects of Patagonia’s company culture:
Environmental stewardship
Patagonia is deeply committed to environmental sustainability. The company incorporates environmentally friendly practices into its business operations and product manufacturing to reduce its ecological footprint and promote awareness of environmental issues.
Work/life balance
Patagonia places a strong emphasis on work/life balance. The company encourages employees to lead active, outdoor lifestyles, and it is known for supporting initiatives such as flexible work schedules, on-site childcare facilities, and offering paid time off for environmental activism.
Corporate activism
Patagonia is known for its activism on social and environmental issues. The company takes a stand on various causes, often using its platform to advocate for environmental conservation and social justice. This commitment to corporate activism is ingrained in the company’s culture.
Transparent communication
The company values open and transparent communication. This includes sharing information about its supply chain, production processes, and the environmental impact of its products. Patagonia believes in educating its customers and the public about the ethical considerations surrounding their business.
Employee empowerment
Patagonia fosters a culture of employee empowerment and involvement. The company encourages employees to contribute ideas and actively participate in decision-making processes. This collaborative approach is intended to create a sense of ownership and engagement among employees.
Quality and durability
Patagonia is known for producing high-quality and durable outdoor clothing and gear. The company’s culture emphasises creating products that last, discouraging the disposable culture associated with fast fashion.
Fair labour practices
Fair practices for employees and ethical sourcing are considered crucial. The company strives to ensure that its products are made under humane working conditions, and it promotes fair wages and labour rights in its supply chain.
Holistic benefits
In addition to standard benefits, Patagonia offers unique perks such as on-site yoga classes, fitness facilities, and opportunities for employees to engage in outdoor activities. Holistic well-being is seen as very important.
ZAPPOS
The online retailer is known for its extensive product selection and distinctive and vibrant company culture, famously built around delivering happiness. Here are some key characteristics of Zappo’s culture:
Delivering happiness
Zappos has a unique approach to its organisational culture with a core focus on delivering happiness to customers and employees. The company believes that happy employees result in happy customers and business success.
Holacracy and flat organisational structure
The retailer adopted a holacratic structure. Holacracy is a decentralised management and organisational governance method that distributes authority and decision-making through self-organising teams rather than a traditional management hierarchy. It is characterised by a flat management structure where power is distributed among self-organising groups, promoting efficiency, agility, transparency, accountability, employee engagement, and innovation.
Customer-centric philosophy
Zappos places a strong emphasis on customer service. The company is known for its legendary service with free shipping and returns, a 365-day return policy, and a dedicated customer support team that goes the extra mile to create that great customer experience.
Culture fit in hiring
The company is committed to maintaining its unique culture, reflected in the hiring process. The company places a significant emphasis on cultural fit during recruitment, ensuring that new hires align with the organisation’s values and principles.
Focus on employee well-being
Zappos understands the importance of a positive work environment. The company offers various perks to enhance employee well-being, including on-site fitness classes, wellness programs, and a supportive work atmosphere encouraging personal and professional growth.
Zappos’ commitment to its distinctive culture has led to several positive outcomes:
Exceptional customer loyalty
Their customer-centric philosophy has resulted in exceptionally high levels of customer loyalty. The company is known for building solid customer relationships, often going the extra mile to exceed expectations.
High employee engagement
Zappos has consistently high levels of employee engagement. The focus on delivering happiness extends internally, creating a positive and vibrant workplace where employees feel valued and motivated.
Innovation and adaptability
The holacratic structure at Zappos encourages innovation and adaptability. Employees are empowered and expected to contribute ideas and take risks, fostering a culture of continuous improvement and flexibility.
Strong brand image:
Zappos’ unique company culture has contributed to a strong brand image. The company is often cited as an example of how a positive and purpose-driven culture can lead to business success and customer loyalty.
Positive impact on the bottom line
The combination of a happy workforce, satisfied customers, and a commitment to core values has positively impacted Zappos’ financial performance. The company has continued to grow and thrive in a competitive market.
POTENTIAL PITFALL OF STRONG CULTURES
If a culture focuses too much on ‘cultural fit’ when employing people, they may find that there is too much similarity and not enough diversity. This can lead to groupthink and lack of challenge on ideas and plans. And this may in turn work against the culture too if for example innovation is a pillar of the culture. It’s of course important that the culture feels good and motivating to prospective new starters, but that must not stop ambitions to hire for ‘cultural add’ too.
While often considered a positive force for organisational success, company culture can also have unintended adverse effects if not managed carefully. Here are some potential unintended adverse effects of company culture:
Exclusion and alienation
In an attempt to foster a specific culture, there is a risk of excluding individuals who don’t fit the mould. This can make employees who see themselves as outsiders feel excluded.
Groupthink
A robust and homogeneous culture may inadvertently promote groupthink, where employees conform to the prevailing mindset, stifling creativity, and diversity of thought. This can hinder innovation and problem-solving.
Resistance to change
A profoundly ingrained company culture may lead to resistance when changes are introduced. Employees may resist new ideas, technologies, or working methods that deviate from the established cultural norms.
Lack of diversity and inclusion: A company culture that is too rigid or exclusive may discourage diversity in terms of demographics and perspectives. This can limit the organisation’s ability to adapt to market conditions and cater to a diverse customer base.
Burnout and overwork: Certain cultures that emphasise long hours and a constant drive for success can contribute to burnout and overwork among employees. This can negatively impact employee well-being and productivity in the long run.
Fear of failure: Employees may become afraid of failure if a company culture places excessive emphasis on success and achievement. This fear can stifle creativity and risk-taking, hindering the organisation’s ability to learn and grow from mistakes.
Poor work/life balance: Some company cultures may inadvertently encourage an unhealthy work-life balance by placing a high value on constant availability and dedication. This can lead to increased stress and negatively impact employee health and satisfaction.
Erosion of ethical values: A toxic culture can erode ethical values, leading employees to prioritise success at any cost. This can result in unethical behaviour, including dishonesty, fraud, and a disregard for social responsibility.
High turnover rates: A culture that doesn’t align with employees’ values or promotes a negative work environment may contribute to high turnover rates. Constant turnover can disrupt productivity and incur significant costs for recruitment and training.
Inflexibility: A strong company culture, if too rigid, can hinder adaptability and flexibility. This may become problematic in rapidly changing industries where open-mindedness and agility are necessary for survival.
It’s essential for organisations to regularly assess and adapt their company culture to ensure it aligns with their values and goals while avoiding the unintended negative consequences outlined above.
EXERCISE 10.1
1. What do the strong cultural examples above tell you about positively powerful cultures? Are there any common threads?
2. How would you counteract any negative effects of a ‘too strong’ culture?
3. What have you learnt about strong cultures, and how has that inspired you to be a culture ‘ambassador’?
References
https://builtin.com/company-culture/company-culture-statistics
https://arbinger.com/blog/the-ultimate-list-of-corporate-culture-statistics/
https://academiccommons.columbia.edu/doi/10.7916/D8DV1S08
Course Manual 11: Your company’s culture
How familiar are you with your company’s culture? How can you see your company’s culture in artefacts, in values, in practices in your daily work life? Throughout the programme you will be asked to apply the theory in your work. In this section we will start to explore how to start thinking about and understanding the culture where you work. What has shaped your company culture? Is it industry, geographical location, the world around, changes, political decisions?
You’ve probably already thought about this, as part of this programme as well as before joining it. Understanding a company’s culture is crucial as it influences employee satisfaction, retention rates, and overall work experience. Exploring and understanding the company’s culture provides a great opportunity for leaders to create a healthy and productive workplace.
As a leader you are first and foremost shaping the culture of your team(s), as this is where you can have direct and immediate impact. But you are of course also a shaper of the culture that is created in your interactions with peers and other stakeholder within the organisation – and as a result you are of course also having some impact on the overall culture.
CASE STUDY: CULTURE ASSESSMENT FOR BUSINESS TRANSITION
A company in the entertainment industry undergoing significant growth due to mergers and acquisitions decided to conduct a culture assessment to help it transition from a technical organisation to a customer-centric business and meet evolving market needs.
The assessment combined qualitative and quantitative analysis, involving a culture survey and focus groups. 3,000 employees completed the survey with a 57% response rate, and six focus groups with 62 participants were conducted. The analysis took five weeks from the first focus group to the final results.
The assessment revealed a solid people-first attitude within the organisation but identified low empowerment levels, particularly in courage and speaking up due to pressure on results and product delivery. This lack of empowerment impacted quality and customer satisfaction. Following the assessment, a culture plan was developed globally to realign systems and symbols, focusing on empowerment and customer-centricity. Detailed behaviours were identified for senior leadership to model the desired culture, supported by an engagement activation campaign.
This case study exemplifies how culture assessments can uncover critical insights into an organisation’s strengths, weaknesses, and areas for improvement. They ultimately guide strategic initiatives toward fostering a more aligned and effective organisational culture.
This case study exemplifies how culture assessments can uncover critical insights into an organisation’s strengths, weaknesses, and areas for improvement. They ultimately guide strategic initiatives toward fostering a more aligned and effective organisational culture.
UNDERSTANDING AND MEASURING A COMPANY’S CULTURE
Here are some suggestions on what leaders can do to delve into and understand their company’s culture on a deeper level. Measuring the effectiveness of a company’s culture can be challenging, but there are some methods and metrics that can be used to evaluate it.
Have open communication channels
Foster open and transparent communication channels. Encourage people to share their thoughts, opinions, and feedback. Conduct regular town hall meetings, forums, or anonymous surveys to gather insights on how employees perceive the company culture, having identified specific measures the related to culture.
Third-party culture measurement tools
Utilise external tools and assessments designed to measure and analyse organisational culture, including refined and agile features that can provide deeper insights into organisational culture. These tools offer personalised plans, trackable growth goals, turnover prediction, and other features that help measure, understand, and enhance company culture. Some popular third-party tools include CultureAmp and CultureIQ.
Engage employee resource/focus groups
Conduct one-on-one interviews or focus groups with employees from different departments and levels to better understand their experiences. Ask questions about their day-to-day work, the values they believe the company upholds, and how they perceive leadership.
Encourage the creation of employee discussion forums that can provide insights into the company culture. Engage with these groups to understand different perspectives and experiences.
Review organisational artefacts
Examine tangible elements like mission statements, vision statements, company policies, and physical workspace design. Reflect on and analyse how these artefacts align with employees’ day-to-day experiences and whether they reflect the desired culture.
Explore the online presence
Visit the organisation’s website to explore what is communicated externally, including its mission statement, blog, and careers section etc. Review sites like Glassdoor to gather insights on company perception. Scrutinise the company’s social media presence for insights into its values and engagement with clients, and consumers, and the external world overall.
Observe daily interactions
Spend time observing daily interactions and behaviours within the organisation. Pay attention to how employees collaborate, communicate, and handle challenges. Identify any unwritten rules or norms that influence employee behaviour. Monitor and analyse patterns of behaviour within the organisation to gauge the prevailing culture.
Shadow teams
Spend time shadowing various teams and departments to understand their work environment and dynamics. Witnessing leadership interactions with employees can provide valuable insights into the organization’s cultural norms.
Do regular pulse checks
Distribute regular pulse surveys to gauge employee satisfaction, engagement, and cultural alignment. Use these surveys to identify improvement areas and track perception changes over time.
Perform values alignment
Evaluate how well employees’ values align with the company’s stated values. Ensure that the leadership team consistently reinforces and exemplifies these values in their actions.
Assess the alignment between culture and behaviour
Assessing whether individual behaviours support the desired company culture.
Do exit interviews
Hold detailed exit interviews with departing employees to understand their reasons for leaving and their perceptions of the company culture. Look for recurring themes that may indicate areas for improvement.
Ensure effective training and development
Gauge the impact of training, workshops, and development programs on reinforcing the desired cultural traits. Ensure that learning initiatives align with the company’s cultural goals.
Analyse data
Analyse performance metrics, turnover rates, and other relevant data to identify patterns indicative of cultural strengths or challenges. Use data to measure the impact of cultural initiatives and interventions.
Carry out cultural audits
Conduct periodic cultural audits with the help of external consultants or specialists who can provide an unbiased perspective.
It’s important to note that while traditional methods like employee surveys have been commonly used, new approaches such as analysing electronic communication and studying day-to-day behaviours are employed to gain a deeper understanding of organisational culture. By combining these methods, organisations can gain valuable insights into the effectiveness of their company culture. By combining these methods, leaders can comprehensively understand their company’s culture and work towards fostering a positive and thriving organisational environment.
CHALLENGES IN MEASURING A COMPANY’S CULTURE
Cultural consistency
One of the primary challenges is achieving consistency in culture across the organisation. Inconsistencies in culture can hinder the effectiveness of measurement efforts.
Dynamic nature of culture
Company culture constantly evolves, making capturing and measuring accurately through traditional methods like surveys and questionnaires challenging. Questions and prompts may for example need to be changed, which makes comparison year-on-year difficult.
Subjectivity in measurement
Cultural aspects are often subjective and can be interpreted differently by individuals, leading to challenges in quantifying and measuring cultural elements effectively.
Employee Engagement
Measuring the impact of leadership on employee engagement and morale can be complex due to the multifaceted nature of these factors and the varying perceptions among employees.
Alignment with core values
Ensuring that cultural measurements align with the organisation’s core values and mission can be tricky, especially when there are differences between stated values and actual behaviours.
Data reliability
Traditional methods like surveys may not always provide reliable data on company culture, as employee self-reports may not fully reflect the actual cultural dynamics within an organisation.
Cultural misalignment
Identifying misalignments between core values, vision, and organisational objectives can pose a challenge in accurately measuring culture and highlighting improvement areas.
Continuous measurement
Culture is not static, requiring ongoing measurement efforts to track changes over time. Implementing continuous measurement practices can be resource-intensive and time-consuming.
Interpreting behaviour/culture alignment
Understanding how individual behaviours support the desired culture and how these behaviours are connected to organisational outcomes can be complex and challenging to measure effectively.
Leadership influence
Assessing how leadership styles influence culture and behaviour within the organisation presents a challenge in measuring the direct impact of consistent leadership on company culture
By addressing these challenges through innovative measurement approaches, organisations can gain valuable insights into their company culture, find improvement areas, and effectively align their cultural initiatives with strategic objectives.
THE FOUR COMPETING VALUES FRAMEWORK
Businesses typically describe their present cultural model in their mission statement, which is accessible to all staff members. Business leaders can choose from a variety of corporate culture models. One of them is the “four competing values” framework, which Robert Quinn and Kim Cameron created in 1983. We mentioned these in the first section.
As you will remember, the values of this framework are:
• Clan is a cooperative, very materialistic civilisation.
• Adhocracy is a highly externalized culture that places a strong focus on innovation.
• Hierarchy is a top-down, extremely professional culture that is often more controlling.
• Market is an energetic, competitive professional culture. Organisations that are very focused on their work are likely included in this group.
Here is a short description of each of the four cultures.
Clan
A warm and welcoming work environment that strongly resembles a big family and where employees have much in common. The heads of organizations, or leaders, are looked up to as role models and sometimes even parent figures. Loyalty and tradition keep the organisation together. High levels of involvement are present. The organisation strongly emphasises the long-term advantages of developing its people resources and places a high value on interpersonal relationships and morale. Openness to consumer needs and concern for people are critical components of success. Teamwork, involvement, and consensus are critical to the organisation.
Hierarchy
A very regimented and formal work atmosphere, where what people do is determined by procedures. The leaders take pride in being effective, efficiency-driven coordinators and organizers. The most important thing is to keep the organisation operating efficiently. Structured regulations and policy manuals keep the organisation in check. Long-term considerations centre on consistency, outcomes, and effective and seamless task completion. Success is characterized by dependable delivery, easy planning, and affordable prices. Personnel management must guarantee predictability and clarity regarding the position.
Market
A company that prioritizes results and finishes projects with great care.
The population is aggressive and goal-oriented. The leaders simultaneously act as producers, rivals, and drivers. They are demanding and challenging. The organisation’s concentration on winning serves as a unifying force. Success and reputation are crucial areas of emphasis. People concentrate on competitive activities and reaching quantifiable milestones and goals in the long run. Market penetration and market share are ways to define success. Pricing competition and market leadership are crucial. Unflinching competition is the organizational approach.
Adhocracy
A vibrant, entrepreneurial, and creative workplace. Individuals take chances and put out their necks. The leaders are seen as risk-takers and innovators. A dedication to creativity and experimentation serves as the organisation’s unifying factor. The goal is to set new trends. The organisation focus is on expansion and finding new sources over the long run. Success is defined as having novel goods or services on the market; being a pioneer in this area is vital. The group supports personal initiative and freedom.
EXERCISE 11.1
• What is your organisation’s culture like? How do the four values above (Clan, adhocracy, hierarchy, market) compete? What structures, practices and habits exist that create the team/department/organisational culture?
• What artefacts or symbols represent the culture? How do these help and support?
• How is your company culture assessed and measured today? (if relevant)
• What is your main insight/takeaway from this section? And how will you apply that?
References
https://blog.walkingthetalk.com/culture-assessment-case-study
Course Manual 12: The role of leaders
You will have seen already that leaders play a BIG role in healthy cultures, they are the scene setters for culture, their actions and behaviours are magnified and multiplied. Leaders are the greatest culture shapers, and this topic is further explored throughout the program, starting in the next workshop.
Leadership authenticity is a common denominator for great leaders. They are genuine and true to themselves, as authenticity earns respect and trust from others. We can often instinctually feel if someone is authentic. If not straight away, then certainly after repeated encounters. You could say that authenticity is a leadership style where individuals align their internal values, beliefs, and personality with their external behaviour. It’s about being true to oneself, being transparent, acting with integrity, and fostering positive relationships with those being led. Authentic leaders do not adopt personas but bring their natural character to their roles, sharing personal stories and experiences openly to create connections with their team members. They embrace vulnerability in appropriate contexts to build trust and growth within themselves and their teams. They communicate their purpose and vision, inspiring others to commit to a purpose while remaining faithful to their values. They prioritise building cultures of authenticity by leading by example, creating spaces for open and honest communication, and fostering psychological safety for all team members.
Additionally, authentic leaders seek transformative relationships over transactional ones, focusing on building trust and mutual well-being for long-term growth and success. In essence, leadership authenticity is about being genuine, transparent, empathetic, and committed to personal growth while fostering an organisation’s trusting, respectful, and inclusive culture.
We mentioned trust before, and building trust through fairness, honesty, and consistency is vital for leaders to earn the trust of their team members. Integrity is also closely linked to trust. Leaders with integrity consistently follow all rules and policies, which is critical to maintaining integrity and being effective role models.
LEADER AS ROLE MODEL
A crucial component of any organisation is its leadership. Leadership actions and behaviours define standards for both team members and clients. Leadership can be a critical factor in determining how an organisation’s culture is shaped. All employees of a company contribute to determining its organisational culture, but leaders have the most power to change it. Unsurprisingly, this paradoxical behaviour trickles down if, for example, management is renowned for breaking the same regulations that employees are told to obey and keep to. However, if leaders are known for upholding the company’s values, staff members will likely do the same.
Leaders must be role models because they are pivotal in shaping organisational dynamics by setting the tone for acceptable behaviour, ethics, and values. Leaders who serve as role models inspire greatness, foster trust and loyalty and create an environment where innovation and productivity flourish. By embodying qualities like authenticity, transparency, empathy, continuous learning, and leading by example, leaders cultivate a culture of role models that inspire others to reach their goals and potential. Ultimately, leaders who act as role models significantly impact organisational success, employee morale, and the overall effectiveness of teams.
Leadership is the act, and art, influencing and impacting others,
which in turn creates the culture at work – Mandy Flint & Elisabet Vinberg Hearn
Leaders must be conscious of how their actions affect the organisational culture.
Do they provide a good example? Do their behaviours reflect the principles of the organisation? These are crucial issues for leaders to think about.
So, leaders who wish to maximise the power of culture must start by examining their own behaviour. What signals do my actions send to others? What actions am I encouraging in other people? And to develop the desired, healthy culture, they may need to start modifying their behaviour and adopt new habits. In the next workshop we’ll focus entirely on the role of leaders and how you can make the most of your unique leadership in an authentic and impactful way.
Leaders have a significant role in shaping the culture and dynamics of a workplace, and one of the most impactful ways they influence their teams is by serving as role models. Because, simply put, people don’t do what we say, the do what we do. Behaviours are contagious. Leadership is contagious. Here are some examples of how leaders can serve as role models in the workplace.
Work ethic
Leaders set the tone for the work ethic in an organisation. If a leader is dedicated, hardworking, and committed to their tasks, it sends a clear message to the team about the importance of diligence and effort. Yes, great leaders demonstrate a strong work ethic and commitment to company goals, which is crucial for leaders who want to set an example for their team. This doesn’t mean working all hours, which may ignite an ‘always-on’ culture.
Integrity and ethics
Ethical behaviour is fundamental to building trust within a team. Leaders who demonstrate integrity, honesty, and ethical decision-making become role models for moral conduct, fostering a workplace culture of trust and transparency. Influential leaders respect all individuals, whether customers, employees, partners, or any other stakeholder, which is essential in every interaction.
Communication skills
Effective communication is vital to a successful workplace. Leaders who communicate openly and respectfully serve as examples for their teams. They demonstrate the importance of sharing information, listening actively, and addressing concerns promptly.
Adaptability and resilience
In today’s rapidly changing business environment, adaptability and resilience are crucial. Leaders who navigate challenges gracefully, learn from setbacks, and remain resilient in adversity inspire their teams to do the same. Maintaining a positive attitude, especially during challenging times, helps leaders model the behaviour they expect from their team. They exhibit steady persistence in the face of obstacles, showing their team that no one has all the answers while also indicating that they can be relied upon in challenging situations.
Collaboration
Successful leaders understand the value of teamwork and collaboration. By actively participating in collaborative efforts, leaders encourage a sense of unity and shared responsibility among team members.
Continuous learning
Showing a commitment to ongoing learning and growth is essential for leaders. When leaders prioritise continuous learning, it encourages a culture of development and improvement within the organisation.
Empathy and compassion
Leaders who show empathy and compassion create a positive and supportive workplace environment. By understanding the challenges and concerns of their teams, leaders can build stronger relationships and foster a culture of care and understanding.
Accountability
Accountable leaders are role models who take responsibility for their actions. They encourage others to do the same by admitting mistakes and correcting them. No one is perfect. When leaders hold themselves accountable, it sets the expectation that everyone in the organisation should be responsible for their work and decisions.
Inclusivity and diversity
Leaders play a vital role in promoting inclusivity and diversity in the workplace. By championing diversity and creating an inclusive environment, leaders demonstrate the importance of embracing different perspectives and backgrounds.
Balancing work and life
Achieving a healthy work-life balance is essential for employee well-being. Leaders who prioritise and model a balanced approach to work and personal life send a positive message about maintaining overall well-being.
Yes, leaders clearly serve as powerful role models in the workplace by embodying the values, behaviours, and attitudes they wish to see in their teams. Leaders shape the organisational culture through their actions, inspire their employees, and contribute to the company’s overall success.
LEADER AS TRUST CREATOR
While we might be able to function without trust for a while, over time, a lack of trust erodes engagement and happiness in the workplace. Additionally, working in a hybrid environment places additional demands on trust, requiring intentional focus because trust relies heavily on human connection, which is more problematic when it is not regularly experienced face-to-face.
Leaders who want long-term, sustainable results need to be in the ‘trust business’. They must earn people’s trust. It’s essential to be trustworthy. They absolutely need to embody leadership people can trust.
Reflect on the following ways that leaders can build trust. Are there any of these that you can do more with to build deeper trust?
Connection
It’s hard to trust someone you don’t know, so getting to know people is a good start. Being genuinely interested in people and taking the time to connect with them is part of the job.
Generosity
When people generously share what they know, and give credit where credit is due, trust grows.
Honesty and support
Be honest, even when difficult, and support your team members. Transparency and support go a long way in building trust.
Transparency
Open communication and honesty are crucial for building trust. Encourage open dialogue and share information openly with your team.
Admit mistakes
No one is perfect. Acknowledge and rectify mistakes promptly. Owning up to errors demonstrates accountability and integrity, essential for building trust.
Show trust
Demonstrate trust in your team members by empowering them, respecting their decisions, and avoiding micromanagement. Trust begets trust.
Approachability
Make yourself approachable to your team members. Encourage open conversations where they can express their thoughts without fear of repercussions.
Consistent commitment
Follow through on your commitments consistently. Keeping promises and delivering on commitments helps establish trust in the workplace. When someone does what they said they were going to do or apologise and explain why and what will happen next if they couldn’t keep the promise, it builds trust.
Empathy and support
Show empathy towards your team members, especially during challenging times. Listen to understand. Being present and supportive builds trust and fosters a positive work environment.
Accountability
Take ownership of mistakes and failures. Leaders who admit their errors teach their team members valuable lessons in accountability and integrity.
Continuous improvement
Building trust requires effort and dedication. Continuously strengthen authenticity, logic, and empathy to enhance trust levels within your team.
CASE STUDY: TRUST
Studies indicate that nations with high levels of generalised trust experience higher income growth rates than nations with low levels of trust. Trust lowers transaction costs, which in turn makes wealth generation easier. Research also demonstrates that good encounters with others, including strangers, cause the brain to release the neurochemical oxytocin, which indicates that the other person seems trustworthy.
Research led by Dr Paul J Zak has illuminated the profound effects of oxytocin levels. Increased levels of oxytocin have been associated with increased generosity and trust in economic decision-making and improved team performance and productivity. Masterfully triggering the oxytocin system in leadership builds strong bonds with followers and cultivates a sense of solidarity and cooperation.
Consistency
Ensure that your words and actions are always in alignment. Trust is built when people see consistency in your words and deeds. Consistency is often overlooked as a leadership quality, but It’s a crucial one. Let’s deep dive into consistency to explore that further.
• Consistency helps employees know what to expect, enabling them to act accordingly and feel empowered.
• It builds trust with clients, customers, and stakeholders, as well as within the team.
• When leaders are consistent, it becomes easier to predict their actions, which is essential for meeting milestones and completing projects successfully.
• Consistency in leadership authenticity, tone, and visible support is vital to building employee trust and aligning organisational culture with strategic objectives.
• Fairness and consistency are critical leadership traits that establish a culture where followers know what to expect and can count on their leader.
• Consistency implies an absence of contradictions, allowing people to understand what to expect from a leader.
• Inconsistency can lead to insecurity and uneasiness among employees, affecting morale and organisational direction.
• Consistent leaders reinforce workplace culture, empower their teams and drive results by aligning actions with stated values and priorities.
• Consistent leadership training fosters predictable leadership behaviours that align with organisational goals and values.
• It ensures that leaders and managers make defensible decisions consistently, maintain positive employee-employer relationships, and work towards high employee engagement.
• Inconsistent leadership often stems from a lack of learning and development during transitions into leadership roles or a failure to understand the impact of inconsistent behaviours on team members.
If you want to measure the impact of consistent leadership on company culture, here are some metrics to consider.
Productivity metrics
Productivity metrics can measure the ratio of projected work to completed work, reflecting how a great company culture leads to highly productive employees.
Employee engagement and retention
Measuring employee engagement and retention rates can indicate how well the culture attracts and retains top talent, showcasing the impact of consistent leadership on employee commitment.
Diversity, equity, inclusion, and belonging
Evaluating DEIB initiatives within the company culture provides insights into how well the culture aligns with these values, reflecting the inclusivity fostered by consistent leadership.
Shared core values, mission, and purpose
Assessing alignment with core values and mission helps gauge how effectively leaders communicate and uphold these foundational aspects of the culture.
Employee performance
Linking company culture to employee performance can reveal how a supportive culture motivates employees towards high performance, showcasing the influence of consistent leadership on driving results.
Innovation and creativity
Measuring innovation and creativity within teams can highlight how a collaborative culture fosters innovation, indicating the impact of consistent leadership on promoting a creative environment.
Customer relations
Consistency in customer interactions reflects a strong company culture. Monitoring customer satisfaction and feedback can demonstrate how consistent leadership influences external perceptions and relationships.
Organisational cohesion
Assessing organisational cohesion through employee accountability and alignment with core values shows how consistent leadership fosters unity and clarity within the organisation.
Leadership styles alignment
Evaluating whether current leadership styles align with fostering the desired culture provides insights into how leadership behaviours influence organisational values and employee engagement.
Cultural misalignment
Identifying misalignments between core values, vision, and organisational objectives signals the need for cultural transformation to achieve strategic goals effectively, highlighting areas where consistent leadership impact is crucial.
By utilising these metrics, organisations can effectively gauge the influence of consistent leadership on shaping a positive company culture, driving employee engagement, fostering innovation, enhancing customer relations, and ensuring organisational cohesion.
EXERCISE 12.1
• Why is trust so important in leadership and a healthy culture?
• How consistent is your leadership? What works particularly well? Is there anything else you can do to elevate consistency? (if relevant)
• Could you be more intentional about being a role model in the organisation? If so, in what way?
• What is your main insight/takeaway from this section? And how will you apply that?
• We’ve come to the end of the first workshop. How would you summarise what you’ve learnt?
References
https://www.frontiersin.org/articles/10.3389/fpsyg.2020.579459/full
Project Studies
Project Study (Part 1) – Customer Service
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 2) – E-Business
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 3) – Finance
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 4) – Globalization
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 5) – Human Resources
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 6) – Information Technology
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 7) – Legal
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 8) – Management
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 9) – Marketing
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 10) – Production
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 11) – Logistics
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Project Study (Part 12) – Education
The Head of this Department is to provide a detailed report relating to the Culture Theory process that has been implemented within their department, together with all key stakeholders, as a result of conducting this workshop, incorporating process: planning; development; implementation; management; and review. Your process should feature the following 12 parts:
01. What is culture?
02. The driving forces of culture
03. Values and culture
04. The financial value of cultures
05. How work systems can derail cultures
06. How culture supports strategies and operations
07. Toxic cultures
08. The foundations of a healthy culture
09. How culture can be created, changed, and shaped
10. Companies with strong, clear, healthy cultures
11. Your company’s culture
12. The role of leaders
Please include the results of the initial evaluation and assessment.
Program Benefits
Management
- Leadership excellence
- Increased collaboration
- Greater innovation
- Emotional intelligence
- Inclusive environment
- Effective communication
- Increased engagement
- Increased productivity
- Strength utilisation
- Empowered employees
Human Resources
- Greater retention
- Productive workplace
- Enhanced culture
- Effective teams
- Increased engagement
- Empowered employees
- leadership excellence
- Improved relationships
- Talent retention
- Collective intelligence
Information Technology
- Change management
- Digital transformation
- Hybrid teams
- Online collaboration
- Emotional intelligence
- Stakeholder management
- Effective communication
- Future readiness
- Customer experience
- Employee experience
Client Telephone Conference (CTC)
If you have any questions or if you would like to arrange a Client Telephone Conference (CTC) to discuss this particular Unique Consulting Service Proposition (UCSP) in more detail, please CLICK HERE.