Tuesday 24 January 2012

Why Organisations Don’t Try to Cultivate Culture #Culturechange

I haven’t come across an executive who is unaware that there is a culture at work within his or her organisation. I’ve met a few who haven’t made the link between culture and the performance of their business but the majority seem to understand that the two things are inextricably linked. I’m therefore surprised how often there’s no conscious, planned activity underway to shape their culture or continuing the theme from yesterday, to cultivate it.

Either consciously or unconsciously, every organisation is shaping their culture. The way in which it responds to internal and external influences, the manner in which decisions are taken and the impact of those decisions, the tone of communications, the behaviours of managers and leaders, the things they recognise and reward, the behaviours they encourage, things they give attention to and talk about (or not), things they tolerate or turn a blind eye to.....are all examples of ways that they cultivate their culture, irrespective of whether they are aware of it or not.

Ignorance of the link between culture and performance is may be an excuse for them,
albeit a poor one! So what's the excuse in organisations where executives do understand the link but still don’t consciously and deliberately cultivate it?

In my experience there are four key reasons:

  1. Fear
    This is a reflection of the human fear of change. We might not like our current circumstances but stay where we are because if we change it might be even worse. “Better the devil you know” and all that. It’s fear of losing control, of making things worse, fear of trying to change and failing, fear of succeeding and having a new set of problems, fear of the unknown. When fear is the dominant driver in the business it will be slow to change, slow to react to changes in the market – and at risk.
  2. Complacency
    Organisations that have no burning platform for change are often complacent. Results will typically be ok, not great but also not poor enough to make change unavoidable. So the “we’ve always done it that way” and “if it ain’t broke, don’t fix it” mentality prevails. These organisations will be ‘comfortable’ places to work, but not great places that encourage and stimulate people to achieve more. These organisations are insular and not particularly concerned about what competitors are doing – and consequently are at risk. See Kodak for an example.
  3. Habit
    When the senior team in an organisation gets too comfortable and habitual ways of managing become embedded, it becomes difficult for leaders to step outside their comfort zone and drive change. It becomes in their best interests to safeguard the status quo – because the alternative would mean them changing. Decisions are communicated and if challenged, explained by suffixing “because the Chairman / CEO says so”. Leaders in these organisations might be perceived as arrogant and disinterested in change and these behaviours put the organisation at risk.
  4. Degree of difficulty
    Some organisations know they should change their culture, thet want to but just don't know how to do it. They perhaps can’t put their finger on what’s wrong currently, and consequently they don’t know exactly what needs to change, and even if they do they don’t know what actions to take to do it or how long it will take, how employees will react, or who
    needs to do what. These organisations are ambitious for change but don’t know where to start and so stress is part and parcel of working there, because it’s hard work overcoming the difficulties inherent in the culture. They experience other organisations doing what they do ......but doing it better and this puts them at risk.

And then there are organisations who understand it and are consciously and deliberately shaping and cultivating their culture. It's a culture that is aligned with their vision, their strategy and their business objectives. They're the organisations you admire and respect AND are achieving extraordinary performance.

What group is your organisation in?

Get in touch, I'd like to help......


LinkedIn: http://uk.linkedin.com/in/timhadfield
Twitter: @accordengage
Telephone: 0044 7906 650019

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