1 - Stop Blaming Your Culture
1 - Stop Blaming Your Culture
1 - Stop Blaming Your Culture
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STOP
BLAMING
YOUR
CULTURE
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Ashley Harshak
[email protected]
is a London-based partner
with Booz & Company. He is
part of the firms organization,
change, and leadership practice, with a focus on the public
sector and financial services.
When a new leaders strategy puts the culture of a company at risk, the culture will trump the strategy, almost
every time. There are good reasons for this. Every companys identity the body of capabilities and practices
that distinguish it and make it effective is grounded
in the way people think and behave. Deeply embedded
cultural influences tend to persist; they change far more
slowly than marketplace factors, and cause significant
morale problems when not addressed effectively. When
your strategy and culture clash visibly, more likely than
not, the culture is trying to tell you something about
your own leadership philosophy.
But many leaders overlook this message. They
blame the companys culture for the resistance they
encounter. In the most extreme cases, they assume an
explicit mandate for wholesale cultural change. This
leads them to remove key leaders and old practices,
restructure operations, set in place new rewards and
promotions, and announce other across-the-board programmatic changes. This approach is costly, disruptive, and risky. Moreover, it takes years to accomplish.
Working in a culture that is under attack reduces employees energy and de-motivates them. It may require
a major marketplace or economic disruption to get
people to buy in. Clearly, this is not a game for the faint
of heart. Worst of all, it is rarely successful; few
major corporate transformations, especially those involving a wholesale change in the culture, achieve their
strategy+business issue 62
Jon Katzenbach
[email protected]
is a senior partner with Booz
& Company. Based in New
York, he leads the Katzenbach
Center, which focuses on innovative ideas in leadership,
organization, culture, and human capital. He is the author
or coauthor of nine books,
including Leading Outside the
Lines: How to Mobilize the (In)
Formal Organization, Energize
Your Team, and Get Better
Results (with Zia Khan; JosseyBass, 2010).
Why dont corporate leaders naturally respond to culture in this productive way? Because of several myths
about culture change that have become prevalent in
the business world. Each of these assumptions leads to
treacherous pitfalls.
Our culture is the root of all our problems. This
becomes an all-purpose, convenient excuse for performance shortfalls. Our process-oriented culture inhibits
collaboration, managers say. Or our long-standing beliefs about nurturing people make us coddle weak performers. Underlying this myth is a view that attitudes
and beliefs shape peoples behavior. This view ignores
the realities of organizational culture. As well see, behavior can influence beliefs at least as much as the other
way around.
We dont really know how to change our culture, so
lets escape it. Theres a long tradition, going back to
Lockheed Aircrafts Skunk Works in the 1940s, of creating pockets of entrepreneurial activity for high-performance results. These are explicitly intended to operate
outside the prevailing culture. They may thrive for a
few years, but they are typically treated as outliers by
the rest of the company. Eventually, they are either spun
off or absorbed back into the mainstream, succumbing
to the companys cultural malaise. Our culture kills
even our most innovative efforts thus becomes a selffulfilling prophecy. One of the most famous of these
efforts was General Motors ill-fated Saturn brand,
modeled after the culture of Japanese automakers and
set up to run separately and independently but eventually overtaken by GMs culture.
Leave culture to the people professionals. Executives with an engineering, finance, or technology
background often feel ill-equipped to deal with cultural
issues. They delegate them to their human resources,
organizational development, or communications teams.
Its all about the soft side, say the executives. We
have to improve our employee engagement scores. But
the quality of the culture is as much a product of the
hard side of the organization (strategies, structures,
processes, and programs) as it is of the soft side (beliefs,
opinions, feelings, networks, and communities of common interest). Although your internal professionals can
measure and monitor behavior as well as advise line
management on culture issues, they cannot motivate,
execute, or implement strategic or performance imperatives. Ensuring behavior change that drives competitive
advantage is the role of line leaders at multiple levels.
Culture is the job of the top leaders. It is very
powerful when the CEO and other top executives
take explicit personal accountability for the companys
culture. But senior leaders cannot change cultures by
themselves. They operate at such a large scale, and with
such broad visibility, that they cannot directly motivate
people to implement the specific practices and behaviors
that are required. To succeed with a culture intervention, top leaders need the support of many leaders down
the line particularly those who have daily contact
with the people whose behavior change is most critical.
Sometimes, this myth manifests itself at the board
level. Directors assume that the only way to improve
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performance is to replace the current CEO with another top leader who can bring forth a new and better culture. Because they are looking for someone who
promises major change, the company inevitably gets a
full-scale culture overhaul with all the expense, risk,
disruption, and likely failure involved.
Working with and within Your Culture
Each of these myths plays out differently. But underlying all of them is a big dose of defeatism. Culture is
thought to be too big to ignore, too tough to conquer,
and too soft to understand (at least by typical managers).
Thinking this way, especially when there have been previous culture change disappointments, is enough to sap
your energy and enthusiasm for change. It can squelch
any realistic effort toward high performance before you
gain the momentum necessary for sustainable success.
By contrast, working with and within a culture is
sensible, practical, and effective. Thus, it is inherently
energizing. When leaders learn to operate this way, their
employees tend to become more productive and their
own efforts become more rewarding.
The first thing to change is the view that, as a leader, you can fix your culture by working on it directly.
Rarely is that the case. Just as you typically cant argue
someone out of a deeply held belief, you cant force people to change the way they think and feel about their
work. Instead, you need to focus on specific behaviors
that solve real problems and deliver real results. This, in
turn, enables people to experience the results of thinking differently. Experience becomes a better teacher
than logical argument.
Imagine that you were an advisor from an industrialized nation, sent to a remote island village to help lo-
strategy+business issue 62
One executive leader who worked expertly with his existing culture was John W. (Jack) Rowe, CEO of Aetna
Inc. from 2000 through 2006, chairman from 2001
through 2006, and currently on the faculty of Columbia Universitys Mailman School of Public Health. A
former gerontologist at Harvard Medical School, Rowe
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compassionate way, with a clear rationale for those chosen to leave, and with pay increases and stock options
(along with an increased work week) for those who remained. Rather than worrying that their jobs might be
next, the remaining staff at Aetna now had a culture
that they had helped define, in which they felt more a
part of the growth direction.
Rowe and Williams also commissioned a crossorganizational effort to build motivational capability
among the most respected frontline supervisors in the
company. These master motivators were respected by
their peers; they connected widely and virally in ways
that energized many of the changes.
Numerous principles for changing culture through behavior have become evident through ongoing practice.
Start pragmatically. Dont try to change everything at once. Focus on a few critical behaviors that
resonate with your current culture, but that will raise
your organizations performance. Explicitly identify
the target group the employees whose behavior needs
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Resources
Joel Cooper, Cognitive Dissonance: Fifty Years of a Classic Theory (Sage,
2007): Solid introduction to Leon Festingers grand idea and its relevance to todays conflicts.
Jon Katzenbach and Zia Khan, Leading Outside the Lines: How to Mobilize the (In)Formal Organization, Energize Your Team, and Get Better
Results (Jossey-Bass, 2010): Integrating formal and informal measures
(with more on the Aetna story).
Jon Katzenbach and Zia Khan, Leading Outside the Lines, s+b, Summer 2010, www.strategy-business.com/article/10204: How StockPot, a
division of Campbells Soup, used metrics to shift cultural behavior.
Richard Pascale, Jerry Sternin, and Monique Sternin, The Power of Positive Deviance: How Unlikely Innovators Solve the Worlds Toughest Problems (Harvard Business Press, 2010): Changing behavior by championing
people who get better results.
Edgar H. Schein, The Corporate Culture Survival Guide (rev. ed., JosseyBass, 2009): Realistic, masterful handbook for diagnosing your culture
and raising its tacit assumptions to the surface.
The Katzenbach Center website, www.booz.com/global/home/what_
we_think/katzenbach_center: Ongoing source of research and insight on
culture change theories and methods.
For more thought leadership on this topic, visit s+bs website at:
www.strategy-business.com/organizations_and_people.
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