Being truly heard is rare in the workplace. Listening is a gift that every leader can give. It leaves your team feeling valued, affirmed, and connected emotionally with you. Being heard creates psychological safety in relationships and is vital to establishing productive conflict and trust. Active listening eases tensions where resentment exists. Although not commonly experienced, listening is a competitive advantage available to any leader looking for a powerful point of differentiation. Rushing from meeting to meeting leaves most leaders feeling trapped with little time to listen. Most conversations hardly ever get the space to go below the surface with a focus on words rather than their meaning. The hybrid workplace has not helped. In a remote environment, leaders receive less context and fewer cues due to technology limitations. And all of this is happening while distrust is breeding polarization in society, and only 30% of employees believe their opinion counts. The good news is that exploring, developing, and applying active listening can elevate your employees and grow your business. Here are the three active listening skills you need, two ways to overcome common barriers, one tool to assess your skills, and much more. Why does active listening matter? The skill of active listening is the most effective form of listening. The benefits of active listening are well-documented in the workplace. Evidence suggests active listening builds trust, improves the quality of relationships, and creates a positive work environment. Employees that feel heard feel better about their work and their leader. Improved relationships reduce stress. Active listening is a skill that cannot be outsourced by leaders. Listening to your team's and customers' implicit and explicit needs and wants leads to innovations that are used and valued. Also, evidence suggests that improved perceptions of respect mediate an environment for joint problem-solving and creativity. 3 Active listening skills Actively listening is your ability to hear and improve mutual understanding. When you actively listen, you pay attention, show interest, suspend judgment, reflect, clarify, summarize, and share to gain clarity and understanding. When practicing active listening, you are available to the other person. Suspending judgment can be tricky for leaders pressed for time. Leaders are used to fixing problems quickly, so slowing down can be very challenging. The goal of active listening is to hear the other person. Try to understand before you try to be understood. Listening does not mean agreement. One of the most sincere forms of respect is actually listening to what another has to say. Bryant McGill Clarifying involves asking open-ended, probing, and clarifying questions. A good starting question is to ask, what's on your mind? And follow it up by asking, and what else? You might be amazed at what you learn. Actively listening doesn't mean only listening and asking questions. But it is best to share your thoughts, ideas, feelings, and suggestions after you believe you have heard the other person. The part many leaders struggle with is empathic listening. However, statements like, "You aren't the only one feeling that way," or "I felt similarly," helps to connect emotionally with followers. The following short video from Simon Sinek is about creating an environment where the other person feels heard. Active Listening Skill #1: Verbal Listening Active verbal listening comprises paraphrasing, reflecting feelings, assumption checking, and questioning skills. The words you use matter. Research looking into the value between verbal and nonverbal active listening skills demonstrated that speaking skills are more critical for improving outcomes than nonverbal. Active Listening Skill #2: Nonverbal Listening Active nonverbal listening refers to your body language. Eye contact, leaning forward, and an open body position all provide cues of affirmation. Avoid checking your phone, leaning back in your chair, and crossing your arms. Whether intended or not, these are all cues you are not actively listening to the employee. Active Listening Skill #2: Empathic Listening Active empathic listening combines verbal and nonverbal listening skills with empathy. Leaders practice this listening by sensing the explicit and implicit feelings being communicated. Active Empathic Listening is vital to innovation and maintaining close relationships. 2 Ways to overcome active listening barriers The use of paraphrasing with metaphors and paying attention by slowing down are helpful tips for overcoming common barriers to listening. Active Listening Tip #1: Paraphrasing with Metaphors Like when playing catch with a ball. When the conversation is tossed to you, that is the time to put what you heard into your own words (paraphrase) and use that to make sure you hear the key points correctly. A metaphor is a phrase that conveys something typically abstract through a symbolic image with shared understanding. As the saying goes, a picture is worth a thousand words. Metaphors help create connections. For example, when attempting to clarify, you could state, "It is like driving in the fog at night," instead of asking, "Are you confused?" Active Listening Tip #2: Paying Attention by Slowing Down It is easy not to be aware that you are sending unintended signals that you are in a hurry. Put your technology on mute. Get curious about what they are saying and their emotions. This is not the time to multi-task. Be natural and use verbal and nonverbal cues such as nodding your head or saying yes to let them know you are engaged. Active listening does not typically happen in a rushed environment. The key is not to try and force a conversation into an arbitrarily scheduled time frame. Allow the option to reschedule additional time as appropriate. 1 Active listening assessment tool When you can't see yourself objectively and don't accurately understand the perspectives of others, you can't make the transformational changes necessary for business growth. Evidence suggests that employee perceptions of their leader's listening skills are very low despite being very important to employees. This is significant because perceptions are proven to influence actions taken. When employees don't perceive they will be heard, they will unlikely continue to speak up. Here are a few statements adapted from the research by Longweni and Kroon (2018) developed to solicit feedback from direct reports. You should adjust the wording for different audiences, such as your peers, customers, and leader. As designed, they are appropriate for use in a formal leadership 360 survey or anonymous pulse survey. My leader can sense how I feel without me having to say how I am feeling. My leader reads my non-verbal messages when we are in a conversation. My leader reflects on my emotions to let me know that they understand how I am feeling. My leader calms me down when I become angry by reflecting on my feelings. My leader restates my words to make sure that they understand me correctly. My leader makes sure to know what I am saying in a conflict situation. My leader does not justify their actions when I complain about something they have done wrong. My leader does not get angry or defensive when corrected. How to encourage others to use active listening Everyone has been in a situation where they don't feel heard. The next time you encounter that situation, here are a few strategies you can use to try and help bring about the change you want to see in others: Find common ground. Whether you are getting to know a person or engaging an executive on a complicated topic, starting with something you share in common can help create interest. Be a role model. Being the change you want to see in the world is a powerful tool for influencing change in the workplace. Don't be the one wanting to be listened to but unwilling to hear yourself. Look in the mirror and assess your skills honestly before fixing someone else. Let them know. Often it is not a lack of desire as to why someone is not using active listening skills. If you decide to provide this feedback, you want to use an "I" statement, such as I don't feel like you are hearing me. How to develop active listening skills If you are ready to invest some energy into developing your active listening skills, the following strategies are compiled from various studies on active listening. Daily reflection. Reflect and assess daily how you are doing. Reflect on specific conversations to identify what went well and what still needs improvement. Specifically, focus on how well you pay attention, show interest, suspend judgment, reflect, clarify, summarize, and share to gain clarity and understanding. Find a mentor or accountability partner. A mentor should be someone that is a skilled active listener. This person can role model and help ask good reflective questions to help you learn. Find an accountability partner. An accountability partner can be someone also working on building their active listening skills, or they could be already skilled. The key is that they can observe and catch you using or not applying active listening skills. Focus. Consciously focus on building active listening skills rather than expecting to learn these skills while focusing on another competency. Experiential practice. You can build active listening skills with training, like physical endurance and strength. Use blended experiential methods that require learning by doing. Active listening is influenced by the conversation context and cues best learned by doing. Don't just rely on reading about active listening. Key Summary Points: Actively listening to employees leaves them feeling valued, affirmed, and connected emotionally with you. Listening eases tensions and makes productive conflict work where resentment exists. When you actively listen, you pay attention, show interest, suspend judgment, reflect, clarify, summarize, and share to gain clarity and understanding. Active Empathic Listening is vital to innovation and maintaining close relationships. The benefits of active listening are well-documented for building trust and improving relationships and the work environment. A study of employee perceptions of their leader's listening skills revealed it was the lowest-rated competency despite being very important to employees. Using metaphors, slowing down, paying attention, and paraphrasing key points are helpful tips when practicing active listening. Being the change you want to see in the world is a powerful tool for influencing change in the workplace. You can build active listening skills with practice, like building physical endurance and strength. References: Bodie, G., Vickery, A., Cannava, K., Jones, S. (2015). The role of "active listening" in informal helping conversations: Impact on perceptions of listener helpfulness, sensitivity, and supportiveness and discloser emotional improvement. Western Journal of Communication;79(2):151-173. Center for Creative Leadership. (2019). Active listening: Improve your ability to listen and lead, second edition, 2nd edition. Center for Creative Leadership. Doolittle, J. (2023). Life-changing leadership habits: 10 proven principles that will elevate people, profit, and purpose. Organizational Talent Consulting. Gearhart, C., Bodie, G. (2011). Active-empathic listening as a general social skill: Evidence from bivariate and canonical correlations. Communication Reports;24:86-98. Jahromi, V., Tabatabaee, S., Abdar, Z., & Rajabi, M. (2016). Active listening: The key of successful communication in hospital managers. Electronic physician, 8(3), 2123–2128. Kourmousi, N., Kounenou, K., Yotsidi, V., Xythali, V., Merakou, K., Barbouni, A., & Koutras, V. (2018). Personal and job factors are associated with teachers' active listening and active empathic listening. Social Sciences, 7(7) Longweni, M., & Kroon, J. (2018). Managers' listening skills, feedback skills and ability to deal with interference: A subordinate perspective. Acta Commercii, 18(1), 1-12.

An Examination of the Importance of Leadership Behaviors and Attributes on Shaping Culture Executive Summary Organizational culture is a critical factor in financially successful companies. But culture change is often overwhelming and elusive. In a fast-paced digital workplace, leaders face increasing pressure to innovate, make data-driven decisions, and effectively lead a remote and multicultural workforce. To thrive, change is necessary. It is crucial for leaders at every level to be equipped with the capability to act both within and upon a company's culture. Although overwhelming, culture change doesn't require sizeable investments and employees in the office. Leaders with dynamic transformational leadership attributes and behaviors are effective culture change agents. Evidence suggests that idealized influence and inspirational motivation are key leadership attributes and behaviors for leaders to drive culture change. They are foundational for enhancing trust, emotional connection, and the leader-follower relationship. Additionally, these leadership behaviors and attributes increase the willingness of employees to excel and give discretionary effort. The benefits of architecting a positive organizational culture are found to extend beyond financial success to include improved employee morale, commitment, health, and well-being. HOW TO READ THIS WHITE PAPER This white paper is divided into five sections. Each section is essential to understanding the importance of key leadership behaviors and attributes in shaping organizational culture. Sections one and two of the white paper provide a contextual understanding of what is meant by organizational culture and modern organizational culture challenges. Section three focuses on proven approaches to architect organizational culture. Section four looks at two key leadership behaviors and attributes vital to shaping culture. The white paper concludes by highlighting the significant benefits associated with improving organizational culture. This white paper aims to establish the importance of leadership behaviors and attributes and guide business considerations for architecting organizational culture. As designed, the insights covered will improve our communities and workplaces by applying proven thought leadership. Section 1: Understanding Organizational Culture Organizational culture is the one thing that influences every aspect of a business. It directly impacts organizational success, employees, customers, and communities. The underlying cultural values of an organization affect the behaviors of employees and their decisions. Scholarly research directly linked the effects of an organization's culture on customer satisfaction, employee teamwork, cohesion, employee involvement, and innovation (Gregory et al., 2009). Just as some organizational culture characteristics can support these qualities, others can also inhibit these qualities. For example, a hierarchical corporate culture type is proven to decrease an organization's ability to innovate (Cameron & Quinn, 2011). The idea of organizational culture is abstract and often not well understood. The word culture gets used in different ways by people at different times. Culture has been studied for many years resulting in many different models and definitions. Organizational culture is complex because it involves individuals, their interactions, teams, and the organization. Edgar Schein, who is considered to be one of the most influential contemporary thought leaders on organizational culture, described it as: "a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems" (Schein & Schein, 2016). A more simplified working definition of organizational culture is how things get done within the organization when no one is watching. It is easy to focus on the things that are visible to describe an organization's culture. However, an organizational culture framework consists of artifacts, values, and underlying assumptions. Artifacts: These are the things you can see, feel, or hear in the workplace. Examples include what is displayed, office layouts, uniforms, identification badges, and discussed and not discussed. Espoused Values: What you are told and beliefs that you can use to make decisions. Examples include a company's vision and values or mission statement. They are explicitly stated official philosophies about the company. Basic Assumptions: These are things that go without saying or are taken for granted. Examples could include speaking up in meetings, holding a door for someone, smiling, or greeting someone by name when walking down the hall. Often many elements of an organization's culture are not visible daily and drop into the background. However, significant events like a company merger or acquisition can make organizational culture differences noticeable. Section 2: The Organizational Culture Reality No organization is looking to stay the same year over year. The world needs organizations that desire to create a better future. According to the Business Roundtable, made up of the CEOs of 181 largest corporations, the principal purpose of a corporation is no longer only to maximize shareholder return (Business Roundtable, 2021). The purpose includes creating value for customers, investing in employees, dealing fairly with suppliers, and supporting the communities where corporations operate. Modern leaders are asking, can organizational culture be changed? This question is not just about changing but thriving. Today’s organizational culture reality includes challenges with innovation, making data-driven decisions, and a geographically dispersed multicultural workforce. Innovation Organizational cultures need to cultivate innovation. A global survey of over 5000 CEOs revealed that greater than 60 percent of organizations anticipate introducing new products or services to fuel their growth. A quick walk through a parking lot looking at the similarity of cars reveals a need for organizations to move beyond making incremental improvements. Company cultures centered on efficiency thinking have flooded the marketplace with low-cost, widely available products and resulted in tremendous waste and social issues (Brown, 2009). The future for organizations involves changing the organization's culture to create value for both the individual consumer and society. Data-Driven Decision Making Advances in technology create a significant advantage for organizations that can leverage data to make better decisions and take the right actions. To maximize their technology and talent investments, organizations need a culture that aligns with data-driven decision-making (Bartlett, 2013). This represents a sizable shift for many cultures that rely on stories to make decisions. A study involving more than 1000 executive leaders demonstrated that 80% of organizations with a mature approach to data analytics exceeded their goals, and 48% significantly exceeded their goals (Deloitte, 2019). Geographically Dispersed Workforce Modern organizations need to foster a culture that is shared across geographically dispersed and physically present workers. Hybrid models of remote and physically present workplaces for knowledge workers are projected to persist. According to a study of 2000 tasks, 800 jobs across nine countries project that 20 percent of an organization’s workforce could be remote three to five days a week (Lund et al., 2020). This represents an increase of three to four times as many employees working remotely. These changes are fueled by the workforce, advances in technology, and the pandemic. Multicultural Workforce The world is full of complex problems like cybersecurity and global political uncertainty. Still, the topics of diversity, equity, and inclusion are being discussed from the boardroom to the breakroom. As companies continue to expand into new markets, the makeup of the workforce in our companies and communities served is becoming more diverse. The United States is more diverse today than at any time since data has been collected, and projections are for continued increases in diversity (Vespa et al., 2020). However, organizations face serious cultural challenges, including broadly held perceptions of inequity to illegal business practices based on race, sex, language, and other diversity factors. Inequity and discrimination result from failure, one person at a time, one action at a time (Greenleaf, 2008). These ethical failures are often not the result of one "bad actor" alone but systemic issues. Section 3: Architecting Organizational Culture Leaders at all levels in the organization play a vital role in the success of shaping organizational culture in business. Although architecting organizational culture is challenging, making changes often doesn't require considerable investments or physically co-located employees. Leaders can leverage the following primary and secondary actions and tools for leaders to embed the desired culture (Schein & Schein, 2016): Primary Actions and Tools Pay attention to metrics that matter and provide regular updates Respond to organizational crises Resource allocation Training and development Rewards and recognition Selection, promotions, and terminations Manage change Secondary Actions and Tools Organization design Policies and procedures Rituals and events Workspaces Traditions and stories Vision and mission statements Organizations are likely to deny the need for organizational culture change. It is common for organizations to become anxious at the suggestion of change. Leaders should exercise caution and approach the change thoughtfully or risk being seen as the problem. Overcoming resistance to change begins with establishing a desire for survival and reducing learning anxiety through creating a sense of psychological safety. Psychological safety is created by leaders proactively helping followers understand and accept the need for change. Section 4: Two Key Leadership Behaviors and Attributes Organizational culture is everyone's responsibility, and leaders play a fundamental role in influencing and supporting culture (Schein & Schein, 2016). Leaders must be able to operate both within and upon the organization's culture. Leadership is a system increasingly influenced by technology and consists of the leader, followers, the situation, and time (Sosik & Jung, 2018). In today’s turbulent and fast-paced digital marketplace, leaders are challenged to quickly discern and apply the appropriate leadership attributes and behaviors that will bring out the best in followers, so they will go beyond what is expected in ways that contribute to the organization’s results and make the world a better place. Leadership Behavior – is how a leader responds within the leadership system. A behavior is something that can be seen and described. Leadership Attribute – is an inherent quality of a leader as perceived by others. Often each leadership challenge requires a blended approach. Based on research, generally, the more dynamic transformational leadership behaviors and attributes are most effective (Sosik & Jung, 2018). Leadership thought leaders Sosik and Jung identify two key leadership behaviors and attributes to help leaders meet today’s complex organizational culture challenges: idealized influence and inspirational motivation (Sosik & Jung, 2018). Leadership Key #1: Idealized Influence Success is achieved through others rather than a leader alone. Establishing positive leadership influence is not easy, and it is vital for leaders to shape organizational culture. Leaders displaying idealized influence possess a high degree of moral behavior, virtues, character, and work ethic (Sosik & Jung, 2018). These leaders reflect the organizational culture, impart pride in followers, and reinforce the importance of teamwork and shared success. The following are idealized influence behaviors and attributes (Sosik & Jung, 2018): Idealized Influence Behaviors Talk about their most important values and beliefs Communicate the importance of team trust Reinforce the importance of purpose Evaluate the ethical consequences of decisions Reinforce the need for teamwork and its possibilities Idealized Influence Attributes Infuse pride in others Make personal sacrifices for others Create respect Demonstrate confidence Encourage others about the future Idealized influence increases trust, enhances learning, increases emotional connection, and empowers followers to think independently and express their individuality. A modern example of idealized influence leadership behaviors and attributes is Jack Welch. He is the former GE CEO and is known for achieving tremendous organizational results and developing followers. Leadership Key #2: Inspirational Motivation In a volatile and uncertain marketplace, leaders need to adapt and motivate followers toward a challenging and aspirational vision (Sosik & Jung, 2018). Human nature focuses on what is missing or needs to be fixed when presented with organizational culture change. However, inspirational motivation behaviors involve creating and effectively communicating a shared positive vision and purpose for followers (Sosik & Jung, 2018): Inspirational Motivation Behaviors Optimistically communicating about the future Enthusiastically communicating about what needs to be achieved Communicate a compelling vision of the future Provide an exciting image of what is essential to consider Express confidence that goals will be achieved Like idealized influence behaviors, inspirational motivation enhances the leader-follower relationship by increasing trust and emotional connection. Additionally, inspirational motivation behaviors heighten the willingness of followers to excel. Jack Ma is a modern example of idealized influence leadership behaviors and attributes. He is the former Alibaba CEO known for his ability to communicate a small business eCommerce vision, leading Alibaba to become the world's largest retailer and online marketing company. Section 5: Benefits of Improving Organizational Culture Ultimately every organizational result is the direct contribution of an employee. Organizational culture is identified as a critical factor in financially successful companies (Craig, 2018). Research has linked organizational culture to employee morale, commitment, health, and productivity (Schein & Schein, 2016). Failing to improve the organizational culture on challenges such as social justice reinforces stereotypes in communities, increases litigation risks, damages the organization’s brand, and increases missed opportunity costs. According to the Business Roundtable, made up of CEOs from the largest corporations in the United States, advancing social justice promotes access to key enablers of well-being and prosperity, such as healthcare, finances, education, and housing (Business Roundtable, 2019). Conclusion Architecting organizational culture is necessary for organizations to thrive in a volatile, uncertain, complex, and ambiguous marketplace. Leaders need to be able to operate within and upon an organization's culture. The leadership behaviors of idealized influence and inspirational motivation are key for leaders to shape an organization’s culture. The benefits of improving organizational culture extend beyond performance and financial success to include employee morale, commitment, health, productivity, and well-being. If you have organizational culture or leadership development needs you cannot solve independently, we're ready to partner with you to craft a solution specific to your organization's context and challenges. Getting started is as easy as visiting www.organizationaltalent.com or contacting us via email info@organizationaltalent.com. References: Bartlett, R. (2013). A practitioner's guide to data analytics: Using data analysis to improve your organization's decision-making and strategy. McGraw-Hill. New York. Brown, T. (2009). Change by design: How design thinking transforms organizations and inspires innovation. HarperCollins Publishers. Business Roundtable. (2021). Statement on the purpose of a corporation. https://opportunity.businessroundtable.org/ourcommitment/ Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (Third ed.). San Francisco, CA: Jossey-Bass. Craig, W. (2018, March 6). As Company Culture Improves, So Does Your Business. Retrieved from https://www.forbes.com/sites/williamcraig/2018/03/06/as-company-culture-improves-so-does-your-business Deloitte. (2019). Deloitte survey: Analytics and data-driven culture help companies outperform business goals in the age of with’. https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-survey-analytics-and-ai-driven-enterprises-thrive.html Doolittle, J. (2023). Life-changing leadership habits: 10 proven principles that will elevate people, profit, and purpose. Organizational Talent Consulting. Greenleaf, R. (2008) The servant as leader. The Greenleaf Center for Servant Leadership. Gregory, B. T., Harris, S. G., Armenakis, A. A., & Shook, C. L. (2009). Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes. Journal of Business Research, 62(7), 673-679. Lund, S., Manyika, J., Madgavkar, A. & Smit, S. (2020). What’s next for remote work. An analysis of 2,000 tasks, 800 jobs, and nine countries. McKinsey Global Institute. https://www.mckinsey.com/featured-insights/future-of-work/whats-next-for-remote-work-an-analysis-of-2000-tasks-800-jobs-and-nine-countries# Schein, E. H., & Schein, P. (2016). Organizational culture and leadership, 5th edition (5th ed.) John Wiley & Sons. Sosik, J. & Jung, D. (2018). Full range leadership development: Pathways for people, profit, and planet. Routledge. Vespa, J. Armstrong, D. & Medina, L. (2020). Demographic turning points for the United States: Population projections for 2020 to 2060. United States Census Bureau. https://www.census.gov/library/publications/2020/demo/p25-1144.html

No leader strives to create a toxic culture. It's a liability. Just its mention can stir up negative emotions within those with experience. Evidence from an MIT Sloan study suggests workplace culture is the most potent driver behind the more than 50 million workers that quit their jobs recently. Employees and employers are trying to avoid toxic cultures at all costs. But when present, there is no escaping, even if working remotely. It is easy to understand that having a toxic culture is terrible. But it is much less clear how to distinguish between a characteristic of the culture that is just irritating and one that is so dreadful that it makes the culture toxic. A doctor – let's call him Dr. Strange – was a newly hired surgeon employed by a cash-strapped healthcare system. Executive leadership considered Dr. Strange the best surgeon to lead a new, highly competitive, and lucrative service line. However, during surgery, Dr. Strange slapped a nurse's hand in the operating room out of frustration. Although not always as ruthless and obvious in the workplace, tolerating toxicity forces leaders to wrestle with the question, is it worth the damage? A positive company culture is a competitive advantage and force multiplier. Here are five signs of a toxic culture and two detoxing steps every leader can take. Why Leaders Need to be Concerned About a Toxic Culture Culture is the one thing that influences everything in your business. It directly impacts your success, your employee's success, your customers, and the communities where you operate. Your organization's underlying cultural values influence employee behaviors and decisions. A recent study by MIT Sloan into the factors driving the great resignation identified that toxic company culture is a more reliable predictor of voluntary turnover than how employees assess their compensation. Surprised? Evidence from this study suggests that a toxic organizational culture is more than ten times stronger at influencing employee attrition than what you are paying your employees. There are negative consequences when employees are treated rudely or blamed for things over which they have no control. A survey of 800 leaders and employees across 17 industries revealed the following reactions to a lack of civil treatment in the workplace: 48% decreased effort 66% lower quality work performed 80% lost work time worrying about how they were treated 63% lost work time avoiding the offender 78% less organizational commitment The side effects of a toxic culture extend beyond the workplace. Evidence suggests that negative consequences create a harmful ripple effect. Employees working in a toxic workplace report experiencing decreased well-being and increased work-family conflict. Does Your Company Culture Show Signs of a Toxic Culture? Company culture is a complex topic because it involves individuals, their interactions, teams, and the organization. A toxic culture is characterized by harassment, bullying, insulting leadership, threatening behaviors, and incivility directly linked to workplace stress. There are many different opinions on the attributes of a toxic culture. Analysis by MIT Sloan revealed that the five most pervasive characteristics of cultures that are toxic and not just irritating: Toxic Culture Sign #1: Lack of Consideration, Courtesy, and Dignity Feeling disrespected has the most significant impact on an employee's overall rating of their corporate culture. Demonstrating respect includes encouraging others to contribute and listening to others before sharing your point of view. Toxic Culture Sign #2: Lack of Inclusion This sign refers to companies that are not inclusive and includes references to identity, including gender, race, and age, as well as nepotism and playing favorites. When there is an us and them mentality between employees, there is a lack of inclusion. Toxic Culture Sign #3: Unethical and Dishonest Behavior In addition to cheating, being shady, lying, and misleading, this sign includes regulatory compliance and safety standards that protect employees. Toxic Culture Sign #4: Ruthlessness and Backstabbing These behaviors are the opposite of teamwork and collaboration and are not areas of modest friction but are described as intentional sabotage and throwing the other person under the bus. Toxic Culture Sign #5: Harassing and Bullying This sign is characterized by hostile behaviors, including yelling, physical and verbal abuse, and condescending comments and treatment toward others. Culture Detox Step #1: Define Your Company Culture Defining your company or team culture in measurable and actionable terms can feel overwhelming, but it is extremely helpful for creating and sustaining positive change. The concept of culture is often considered too abstract and is not well understood. The Competing Values Framework is an actionable measure and framework you can use to define your company culture. The Competing Values Framework identifies four fundamentally different cultures. Clan Culture creates a collaborative atmosphere like a family. This culture emphasizes the value of teamwork, participation, and a consensus decision-making style. Adhocracy Culture creates an energetic and entrepreneurial atmosphere. This culture stresses the importance of research and continuous improvement. Market Culture creates a competitive, fast-paced, results-oriented environment. This culture highlights coming in first. Hierarchy Culture is a top-down formal rule-based atmosphere. This culture emphasizes efficient, reliable, and cost-effective performance. Note: Adapted from Cameron and Quinn (2011). The framework enhances cultural understanding by simplifying the cultural description to only two fundamental dimensions: flexibility or stability and internal or external focus. A culture survey aligned with the Competing Values Framework can define the alignment of the current culture with the preferred organizational culture. "Feedback is the breakfast of champions." Blanchard Culture Detox Step #2: Be the Change Gandhi said, "Be the change you want to see in the world." Often accidental bad leadership habits trickle down and become acceptable ways of behaving. Every leader can model good behavior and ask for feedback from followers. Enhance your self-awareness of your leadership habits. Evaluate the ethical consequences of your decisions and create an open-door policy allowing employees to provide input where their voices and concerns can be heard. Then, actively architect and manage the workplace culture. A recent study found that only 12% of companies claim to have a program in place to define and improve culture. Hire and fire employees to create and reinforce the desired company culture. Teach leaders and employees through stories about how they should respond in different situations and the costs of tolerating toxicity. Reinforce and communicate the importance of trust and teamwork. Reward employees that live the desired culture. Measure company results and alignment with the preferred company culture. What is Your Company Culture Challenge? We can partner with you to assess whether you have the right culture for your strategy, develop attributes needed to support great company culture and implement measures to track progress and sustain transformation. Busy leaders and employees often lack access to high-quality training, proven tools, and over-the-shoulder guidance necessary to create positive culture change. Our solutions accelerate positive culture change, create committed employees, and drive your business growth. References Hickok, H. (2021). Why toxic workplace cultures follow you home. BBC. Porath, C. & Pearson, C. (2013). The price of incivility. Harvard Business Review. Priesemuth, M. Times up for toxic workplaces. Harvard Business Review. Priesmuth, M. & Schminke, M. (2017). Helping thy neighbor? Prosocial reactions to observed abusive supervision in the workplace. Journal of Management. Schein, P. (2017). Organizational culture and leadership (5th ed). Wiley. Sull, D., Sull, C., & Zweig, B. (2022). Toxic culture is driving the great resignation. MIT Sloan Management Review. Sull, D., Sull, C., & Zweig, B. (2022). Why every leader needs to worry about toxic culture. MIT Sloan Management Review. Van Rooij, B. & Fine, A. (2018). Toxic corporate culture: Assessing organizational processes of deviancy. Administrative Sciences. Wang, Z., Zaman, S., Rasool, S. F., Zaman, Q. U., & Amin, A. (2020). Exploring the relationships between a toxic workplace environment, workplace stress, and project success with the moderating effect of organizational support. Risk management and healthcare policy, 13, 1055–1067.

Despite R&D being risky and expensive, businesses are betting big on innovation to fuel growth and competitive advantage. Companies like Amazon, Apple, Alphabet, and Meta are investing billions annually. The R&D budgets from the top 100 innovation leaders total over $720 billion, an increase of 15.3% from the prior year. But evidence suggests that executives remain dissatisfied with their company's innovation performance. As the world rapidly changes, businesses and people must change. Culture is the one thing that impacts everything. An innovation culture supports beliefs and feelings about the importance of innovation, as well as habits that encourage research and development. Here are three proven steps that will move your company closer toward an innovation culture. Benefits of an innovation culture It is no secret that culture is a powerful force multiplier for your company's mission and values - and when properly harnessed, it can become a powerful competitive advantage. Companies with a positive culture experience 8x more profitability than S&P 400 firms. Organizational culture defined is "a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems." Edgar Schein Although innovation requires taking risks, failing to innovate can be fatal to a business. The proven benefits of innovation include: increased competitive advantage improved operational productivity reduced costs and increased revenue improved commercial value enhanced problem-solving One modern innovation that is impressive to watch is SpaceX's reusable Falcon 9 (watch the video below). Space travel alone is challenging, but reusing a rocket by landing it on a drone ship takes the complexity to another level. A financial services company engaged in investment banking and capital markets estimated the customer benefit of the Space X Falcon 9 reusable rocket. If Space X passed on 50 percent cost savings to its customers, this one innovation could reduce company costs by 21% or $48.3 million per launch. A recent study found that only 12% of companies claim to have a program in place to define and improve culture. Although only one in four employees strongly agree that they can apply their company's values daily. Here are the three steps leaders can take to cultivate a culture of innovation. Innovation Culture Step 1: Defining Your Culture Trying to define and change company culture is overwhelming. When you don’t have a shared understanding of culture, it's difficult to create a plan to transform it. You waste time and money on ideas that don't move the needle, you guess instead of following a proven process, and employee performance stalls (or worse) dips. Defining an innovation culture in measurable and actionable terms is essential for a thriving company culture. The Competing Values Framework created by Dr. Kim Cameron and Dr. Robert Quinn identified four fundamentally different cultures. This tool can be extremely useful for defining the current and desired culture of any organization. Clan Culture creates a collaborative atmosphere like a family. This culture emphasizes the value of teamwork, participation, and a consensus decision-making style. Adhocracy Culture creates an energetic and entrepreneurial atmosphere. This culture stresses the importance of research and continuous improvement. Market Culture creates a competitive, fast-paced, results-oriented environment. This culture highlights coming in first. Hierarchy Culture is a top-down formal rule-based atmosphere. This culture emphasizes efficient, reliable, and cost-effective performance. Note: Adapted from Cameron and Quinn (2011). Innovation Culture Step 2: Overcoming a Fear of Failure Fear of failure is the enemy of an innovative culture. An organizational fear of failure limits experimentation, risk-taking, and failure, all of which are necessities of innovation. In three separate studies, researchers found that the fear of failure triggered by an objective or psychological reaction is detrimental to decision-making and reduces opportunity-seeking behaviors. The acceptance of failure as learning is fundamental to innovation but challenging to comprehend. Watch the following short video to see why Honda accepts failure and suggested it is the secret to their success. A step toward learning to overcome the fear of failure is to reframe that failure is necessary and learning is the opportunity. I like adopting the paradigm of experimentation. The following are three proven strategies leaders can use to help employees overcome a fear of failure: Game Theory: Game theory can be used in a safe environment without the harmful consequences of the real world to teach employees about failure as learning. Mindfulness: Mindfulness-based stress-reduction meditation training has been shown to have a positive outcome in overcoming the fear of failure. Mindfulness meditation is defined as learning to focus on purpose at the moment without judgment of experiences. Rewards: Innovation behaviors need to be rewarded and recognized even if they do not directly achieve the desired goal. I am not advocating for rewarding the result of failure. However, reinforcing desired innovation behaviors increases the behaviors necessary for innovation. Innovation Culture Step 3: Leadership The role of leadership is to encourage, guide, and empower innovative behaviors. Cultural change should be approached with purpose and caution. Cultivating an innovation culture is not a one-off initiative. Leaders can increase innovation effectiveness by clarifying the gap between the current and desired state, identifying and removing barriers to innovation, and clarifying innovation processes. Innovations are dependent on leadership's ability to deliver: Effective leadership Company innovation integration Controlled change volume and focus Creativity and innovation value realization Reward and recognition for desired behaviors Internal and external diverse relationships and talent Remove barriers and negative reactions to innovation After setting expectations, leaders need to align what they regularly pay attention to, how they respond in a time of crisis, where they allocate resources, what they reward, and how they buy, build, and bounce employees with the defined behavioral expectations of the innovation culture. A culture of innovation comprises many different attributes, and learning quickly is critical to building an innovation-based culture. Cultures that produce innovation adhere to three basic rules: Creating innovation teams and addressing the "lack of time" barrier Holding employees accountable and providing persuasive prompts for innovation Recruiting, rewarding, recognizing, and developing innovation champions An empirical study of over 800 organizations found that effective innovation characteristics are not the same for product innovation and process innovation. For example, the research demonstrated that increasing problem-solving freedom among employees decreased product innovation. We can help you cultivate a culture of innovation Organizational culture is often complex to describe making change difficult and confusing, while busy leaders and employees lack access to high-quality training, proven tools, and over-the-shoulder guidance necessary to create positive culture change. Our solutions accelerate positive culture change, create committed employees, and drive your business growth. References: Beswick, C., Bishop, D., & Geraghty, J. (2015). Building a culture of innovation: A practical framework for placing innovation at the core of your business. Kogan Page, Limited. Cameron, K. S. (2006). Competing values leadership: Creating value in organizations. E. Elgar Pub. Cantaragiu, R., & Hadad, S. (2013). The importance of play in overcoming fears of entrepreneurial failure. European Conference on Knowledge Management, 833. Çokpekin, Ö., & Knudsen, M. P. (2012). Does organizing for creativity really lead to innovation? Creativity and Innovation Management, 21(3), 304-314. Doolittle, J. (2023). Life-changing leadership habits: 10 Proven principles that will elevate people, profit, and purpose. Organizational Talent Consulting. Gierczak-Korzeniowska, B., & Gołembski, G. (2017). Benchmarking in the process of creating a culture of innovation in hotel companies. Economics and Business Review, 3 (17)(2), 101-113. Hjeltnes, A., Binder, P., Moltu, C., & Dundas, I. (2015). Facing the fear of failure: An explorative qualitative study of client experiences in a mindfulness-based stress reduction program for university students with academic evaluation anxiety. International Journal of Qualitative Studies on Health and Well-being, 10(1), 27990-27990. Kollmann, T., Stöckmann, C., & Kensbock, J. M. (2017). Fear of failure as a mediator of the relationship between obstacles and nascent entrepreneurial activity—An experimental approach. Journal of Business Venturing, 32(3), 280-301. Loeb, W. (2018). Amazon Is the biggest investor in the future, spends $22.6 billion on R&D. Forbes. McKinsey & Company. (2021) Global innovation survey. Schein, P. (2017). Organizational culture and leadership (5th ed). Wiley. Tucker, R. B. (2008). Driving growth through innovation: How leading firms are transforming their futures. Berrett-Koehler Publishers, Incorporated.

EXECUTIVE SUMMARY Mergers and acquisitions (M&As) are key growth strategies for many organizations: entering new markets, acquiring new technologies, or leveraging scale and size. Culture is acutely critical during notable changes, such as M&As, which offer an opportunity for a renewed start on culture. When two organizations combine through mergers and acquisitions for economic reasons, it is doubtful that the two cultures will remain precisely the same. Sadly, evidence suggests that 50% to 85% of mergers fail to deliver on shareholder returns despite leadership's best intentions. The two cultures must harmonize to achieve the desired financial goals of the new organization and avoid a clash. Anyone who has endured an M&A knows how stressful it can be for everyone. The clashing of organizational culture is the most cited reason for failure. The leadership challenge is to figure out the best way to manage the formation of a blended new shared culture. Without intervention, it is most likely that a new culture will evolve, and the dominant culture will assimilate or reject members from the other culture. The best method to achieve the goals of the merger or acquisition is to identify the best parts of both cultures and create a new harmonized culture. This article explains the role of culture in M&As, cross-cultural issues, and the proven practices of creating a shared culture intentionally. HOW TO READ THIS WHITE PAPER This white paper has five sections. All sections are essential to understanding the importance of creating a shared culture. The white paper starts with understanding culture and a summary of the role of culture in organizations. The challenges and proven steps to harmonize the two cultures are then discussed. The white paper ends with a discussion of the significant benefits of creating a shared culture and a conclusion. The purpose of this white paper is to provide an understanding of why creating a shared culture when bringing two organizations together is essential. As designed, this white paper presents a clear picture of the organizational culture and, ultimately, a leader’s role in leading culture harmonization for the merger or acquisition. UNDERSTANDING ORGANIZATIONAL CULTURE Culture has been studied for years, resulting in many different models and definitions. Also, if ten employees are asked to define the company culture, there may be ten different answers. The concept of culture is abstract and not well understood. Organizational culture is complicated because it involves individuals, their interactions, teams, and the organization as a whole. A working technical definition of corporate culture is an often hidden shared pattern or system of beliefs, values, and behavioral norms. A simplified working definition of organizational culture is how things get done within the organization when no one is watching. Culture lives in the stories that are passed on from employee to employee. An organization’s culture reflects the various lessons it has learned through its history and incorporates the many behaviors and processes that have developed over time. Often many elements of an organization’s culture are not visible to its employees. It is comparable to breathing. Breathing is essential to life but controlled unconsciously. Likewise, many elements of culture drop into the background and become automatic. However, highly visible and disruptive events like mergers and acquisitions can make cultural differences striking. UNDERSTANDING THE LOCAL CULTURAL CONTEXT Today many industries and organizations operate on a global scale. Understanding the dynamics of organizational and local cultural context is imperative for leaders in these organizations. Not understanding the impact of local culture on organizational culture can lead to grave miscalculations. Local culture is learned at the beginning stages of childhood and reinforced by local social, spiritual, economic, and education systems. Local culture is held deeply and typically changes slowly over generations. It influences how employees perceive and judge the organization's and leaders' actions. Also, local culture affects employee communication both verbally and non-verbally. Organizational culture does not replace local culture. Therefore, the opportunity for leaders is to harmonize local and organizational cultures. Leaders have to be experts in the paradox of local versus organizational culture. The diversity of employee and customer interactions are two significant issues most global organizations face. One company in the casual dining industry that has navigated some of these issues well holds to company quality standards and values but allows local flexibility on its customer menu. For example, rice is a substitute on the menu for fries in Indonesia and roasted pork for hamburgers in Korea. ROLE OF CULTURE IN ORGANIZATIONS Organizational culture impacts everything in business and plays a role at the individual, team, and organizational levels. The following is a short list of some of the critical roles of organizational culture by level: Individual Level Drive and reinforce profitable behaviors among employees. Shape employee interactions in the workplace. A healthy culture promotes employee trust, community, positive competition, and effective leader-follower relationships. Enhance individual commitment to the company within the workplace. Influence the leaders’ leadership style. Team Level Shape the structure, performance, capability, and effectiveness of teams. A healthy culture promotes productive conflict, team member participation, and team engagement. Organization Level Support the brand image with a unique identity to the market. Organizations become known by their culture. Provide policy guidance enabling the organization to bring out the best in each employee. Influence organizational design in support of the vision, mission, strategies, and critical priorities. CROSS-CULTURAL ISSUES IN MERGERS AND ACQUISITIONS Many studies have reported that the first reason for merger and acquisition failure is the lack of cultural integration. Even companies with strong organizational cultures may develop into dysfunctional organizational cultures after a merger without actions to harmonize the two cultures. Mergers and acquisitions create volatile, uncertain, complex, and ambiguous environments for those trying to integrate cultures. Additionally, in recent years the push for a quick return on investments has impacted how cultures are integrated. This push leads to an organizational priority placed on financials, and creating a shared culture takes a back seat to financial needs. Also, as momentum builds, more people become involved, and it becomes more visible and harder to stop. Lack of cultural due diligence is often a problem. Usually, due diligence is conducted by lawyers and experts in finance or accounting rather than experts in understanding and diagnosing culture. Because culture is resilient and implicit, it is not susceptible to change. The staying power of culture is because it feels right and natural; cultural values imposed are opposed and seldom replace existing cultural elements. Employee communication is difficult during mergers and acquisitions. Both organizations struggle to know whom to communicate with and when to communicate, leaving employees in the dark about the merger and acquisition, amplifying the rumor mill, and fear among employees being left out. Communication is a skill that becomes critical for leaders during mergers and acquisitions. Listening becomes more complex as workloads increase. Awareness of employees' concerns and questions is crucial for knowing what to communicate. Employee retention is a challenge during mergers and acquisitions. Negative thoughts and beliefs about the change can result in employees leaving. Also, the uncertainty, lack of job security, questions about leadership credibility and trust, and confusion frustrate employees. The added complexity of the merger and acquisition of the turnover creates distractions making it harder to get the work done. Also, the turnover contributes to the loss of tribal knowledge about how to get things done. Global mergers and acquisitions can present a challenge of physical distance and time zone differences between employees. Also, language differences become cross-cultural issues in mergers and acquisitions and can create added costs for translations or misunderstandings. Additionally, variations in national culture can further complicate communication. M&A may create a sense of fear among employees because of the anticipated changes and known high failure rate. Perhaps it is the fear of the unknown or the fear of repeating a past failure. Employees from the announcement start to wonder how this change will impact them personally, such as redundancy of their position, changes in reporting structure, changes in responsibilities and their capabilities to meet the changes, and many more factors. PROVEN STEPS TO INTEGRATE CULTURE The purpose of this section is not to provide expectations of a panacea that will guarantee success but to provide practical and proven steps and tools a leader can take to face the challenges of cultural issues in mergers and acquisitions. The key is to engage in efforts to create a shared culture early into the merger and acquisition process rather than waiting for a culture clash to occur. Changing culture requires much more than creating and communicating a new company's catchphrase, vision, and mission statement. Successful mergers and acquisitions require more than integrating policies, organization charts, and systems that often get the most attention. Strategies need to include CEO sponsorship, reinforcement, and communication, as much as specific action plans. Proactive and transparent communication can help build trust. A frequently asked question (FAQ) document to communicate answers to questions employees might have in advance of them being asked can help reduce fears and rumors. Creating a shared culture requires lots of involvement, input, ideas, teamwork, and commitment to take place. Culture During Mergers and Acquisitions The merger and acquisition process has three phases. First, the organization identifies a growth strategy in the pre-combination phase, and potential targets are selected. Due diligence begins, the executives negotiate the deal, and then it is legally approved by shareholders and regulators. Second, in the combination phase, action plans start to combine both companies. Third, in the post-combination phase, the shared culture begins to form and settle in. Creating a shared culture in mergers and acquisitions begins with the pre-combination phase to review potential targets and conduct due diligence. Once the company has selected a target for merger or acquisition, then the target’s culture should be discussed. Be discrete during the due diligence to allow for analysis. If not already defined, it is a good practice to assess the current state of the culture and identify the company’s strengths and weaknesses. Potential targets should be reviewed for known elements of the target’s external culture. Consider the target’s ability to adapt by evaluating their perceived customer focus, change resilience, mission, and vision. Also, it is vital to establish cultural goals along with economic growth goals. In the due diligence stage, creating the desired end state for the culture is critical. It is a target, not an absolute. Through the M&A, there may be issues or opportunities, and the goal is to adapt as they arise. While there are many ways to define the end state (see Defining the End State figure below), ranging from using one culture or another or transforming a new culture, perhaps the best option is to utilize the best of both companies achieving synergy through harmonization. Blending the best of both cultures is often the most successful. Anticipate that most people will initially respond to the merger or acquisition with concern. During the pre-combination phase of the merger or acquisition, it is an excellent practice to be confidential with a small team to allow for as much work as possible before both organizations find out. More work done in advance allows for a quicker response and minimizes employee turnover risk. Expect that the process of working toward a shared culture will take time. Plan on the creation of shared culture to take at least a year. Establishing a new culture is like pouring cement; it takes time to cure completely. Even after the initial work is done, do not let up. Don’t walk away. Define the End State Marks, M. L., & Mirvis, P. H. (2011). A framework for the role of the human resource in managing culture in mergers and acquisitions. Human Resource Management, 50(6), 859-877. doi:10.1002/hrm.20445 During the combination phase of the merger or acquisition, conducting a current state culture assessment of the newly merged or acquired company is essential. Do not accept comments that the two companies are exactly alike. The evaluation will surface strengths and weaknesses as well as identify any possible sub-cultures or areas of opportunity. Taking the time to assess both cultures allows for a better definition of the culture and behaviors necessary for teamwork and optimal performance. Engage in a discussion to create a shared understanding of the evaluation results and to discuss the implications of the current culture. This discussion helps clarify an approach to creating a shared culture. Next is choosing what to harmonize, gaining agreement on keeping the best of both, and focusing the efforts on areas with the most significant business impact. Lastly is creating action plans to move the shared culture forward by prioritizing and developing specific action plans. It is essential to anticipate and plan for likely reactions from both companies’ employees. What leaders reinforce, either from positive reward and recognition or negative threats and punishment, will be done. Leaders at all levels play a vital role in the success of the M&A. When creating action plans, utilize the following primary and secondary actions and tools for leaders to embed the new culture : Primary Actions and Tools Pay attention to metrics that matter and provide regular updates Respond to organizational crises Resource allocation Training and development Rewards and recognition Selection, promotions, and terminations Manage change Secondary Actions and Tools Organization design Policies and procedures Rituals and events Workspaces Traditions and stories Vision and mission statements Remember that resistance is almost guaranteed with mergers and acquisitions, even when perceived as desirable. The disruption from resistance can derail or delay action plans. Make plans to respond to disruptions and quickly respond to questions, concerns, or rumors that surface from employees. During the post-combination phase of the merger or acquisition, sustaining the efforts to create a shared culture is crucial. A culture assessment should be repeated to measure the progress of creating a shared culture. Also, the assessment results can be used to develop new action plans to support and shift to the new shared culture and connect culture back to the economic goals of the merger or acquisition. BENEFITS OF CREATING A SHARED CULTURE Mergers and acquisitions continue to be widespread forms of corporate economic growth strategies. In 2004, there were over 30,000 acquisitions completed globally, and in 2015 the total deal value equaled $5 trillion, which is more than the gross domestic product (GDP) of countries like Ireland and Switzerland. Financially successful companies, according to Forbes, have identified organizational culture as the critical factor in their success. Also, empirical evidence has highlighted the importance of organizational culture on organizational performance. Ultimately every organizational result is the direct contribution of an employee. In addition to organizational outcomes, research has linked culture to employee morale, commitment, health, productivity, and well-being. CONCLUSION Most mergers and acquisitions (50-85%) fail to be successful. So why do organizations pursue mergers and acquisitions? If successful, they can lead to tremendous organizational growth. Creating a shared culture is the best method to achieve merger and acquisition success. The proven actions and tools leaders can use to harmonize both cultures and avoid culture clashes outlined in this article do not guarantee success. Best practices are to consider the culture and take action at each phase of the merger or acquisition from pre-combination to post-combination. Leadership creates difficult choices. If you need help architecting a shared organizational culture or an executive coach, we're ready to partner to craft a solution specific to your organization's context and challenges. Getting started is as easy as scheduling a meeting by visiting www.organizationaltalent.com or contacting us via email at info@organizationaltalent.com. REFERENCES Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (Third ed.). San Francisco, CA: Jossey-Bass. Heffernan, M. (2012). Why Mergers Fail. https://www.cbsnews.com/news/why-mergers-fail/ Schein, E. H., & Schein, P. (2016). Organizational culture and leadership, 5th edition (5th ed.) John Wiley & Sons. Marks, M. L., & Mirvis, P. H. (2011). A framework for the human resources role in managing culture in mergers and acquisitions. Human Resource Management, 50(6), 859-877. doi:10.1002/hrm.20445

Whether you're the CEO or a frontline leader, financial performance is a measure of effectiveness. But how do you improve bottom-line performance amid economic uncertainty, a persistent talent crisis, and the reality that only 3 in 10 employees are engaged? One key is self-awareness. A study involving 486 companies found it moderated business success, and poor-performing businesses had 20% more leaders with blind spots. Unfortunately, self-awareness is rare in leadership. A global study found that 95% of leaders think they are self-aware, but only 10-15% met the criteria to be considered self-aware on essential leadership competencies related to empathy, trustworthiness, and leadership performance. When you can't see yourself objectively and don't accurately understand the perspectives of others, you can't make the transformational changes necessary for business growth. Here are two proven strategies to increase leadership self-awareness and the signs when it might be lacking. Why leadership self-awareness matters Recently the positive connection between self-awareness and improved company earnings was established by Korn Ferry. A study of 486 companies over 30 months found that organizations with a higher percentage of self-aware leaders outperformed organizations with a lower rate. Poor-performing businesses had 20 percent more leaders with blind spots than high-performing businesses. The importance of self-awareness for achieving success and significance is not new. The researched benefits of knowing yourself are numerous beyond improving a business's bottom line. Some of these include: higher quality leadership relationships improved self-control better decision-making enhanced life satisfaction.⁠ In today's increasingly complex and culturally-diverse workplace, leaders that are able to perceive, assess, and regulate their own and others' emotions accurately are able to better promote unity and team morale⁠. Studies have demonstrated that followers perceive leaders with a heightened emotional intelligence as being successful and effective leaders. Also, increased awareness may enable leaders to create shared emotional experiences that enhance personal and follower growth, well-being, and psychological safety. Leaders are better prepared to adapt appropriately when they possess a heightened self-awareness. Self-awareness in leadership It is natural to see the world from our unique point of view. We tell ourselves stories about our strengths and areas where we need to be better, as well as what is or is not good leadership. Leadership habits are shaped by past experiences and the words used to describe our actions. With good intentions, we set out to lead as best as possible. Then life happens, and for most of us, we realize we have blind spots and distortions that jeopardize our goals. “To know yourself, you must sacrifice the illusion that you already do.” Vironika Tugaleva Consider the passenger-side rearview mirror on a car. The required safety warning on the mirror states that objects in the mirror are closer than they appear. Also, these rear-view mirrors have blind spots. Distortions and blind spots can be hazardous to our well-being if what is seen and not seen is not interpreted within the proper context. Leaders can make bad decisions without understanding the wisdom of knowing their distortions and blind spots. How to become more self-aware The higher you move within any organization, the less objective and the less feedback you tend to receive. This makes knowing yourself even more critical and challenging. The last thing any leader needs in today's demanding workplace is someone or something telling them what they already know or what they perceive they want to hear. The better the quality of the feedback you receive, the better the decisions you can make. Leadership is a relationship, and it is vital to know what others think. When we only consider ourselves, we have an incomplete understanding. Self-Awareness Strategy #1: Leadership Assessment A 360 leadership assessment is a type of multi-rater instrument that collects feedback from multiple directions relative to the leader's position within an organization. Typically the questions in a 360 assessment are focused on leadership performance, skills, and contributions. While 360-degree feedback effectively improves leadership skills across all cultures, it is most effective in cultures with low power distance and individualistic values, such as Germany, the Netherlands, the United Kingdom, and the United States. “Look outside and you will see yourself. Look inside and you will find yourself.” Drew Gerald Self-Awareness Strategy #2: Executive Coaching Combined with leadership assessments, executive coaching helps reveal deep insights into areas that, with attention, lead to enhanced potential. Research supports that a coach's timely and appropriate use of leadership 360 assessments leads to improved self-awareness and organizational outcomes.⁠ Given that the ultimate goal of coaching is related to change within you, the process centers on using essential questions and client-centered critical thinking to invoke self-awareness and personal responsibility. Signs you might lack self-awareness Lacking self-awareness limits your specific ability to realize your professional and personal goals, like trying to navigate a ship without a sextant. Self-aware leaders are not naive about their accidental habits and are better positioned to develop life-changing leadership habits. Overestimating your ability can lead to negative consequences for your performance and the organization.⁠ Leaders who have a distorted view of their strengths and weaknesses usually cannot effectively regulate their emotions and behaviors. Research has demonstrated that the symptoms of a lack of self-awareness include negative consequences to your physical health, work performance, and social interactions. Signs of a lack of self-awareness include: Stalling career Lack of direction Absence of learning something new Surprised frequently by feedback from others Frequently make excuses Constantly firefighting and struggling with time management What is your real self-awareness challenge? Key summary points When you know yourself, you have the insight necessary to recognize leadership bad habits and make transformational changes that deliver proven results. Self-awareness means to know yourself so that you are able to see yourself objectively, you are aware of similarities and differences from others, and you understand the perspective from which you see others and the world. A study of 486 companies over 30 months demonstrated that organizations with a higher percentage of self-aware leaders outperformed organizations with a lower rate. Leaders can make bad decisions without understanding the wisdom of knowing their distortions and blind spots. The better the quality of the feedback you receive, the better the decisions you can make. Executive coaching combined with leadership 360 assessments help reveal deep insights into areas that, with attention, lead to enhanced potential. References Athanasopoulou, A., & Dopson, S. (2018). A systematic review of executive coaching outcomes: Is it the journey or the destination that matters the most? The Leadership Quarterly, 29(1), 70-88. Baldoni, J. (2013). Few executives are self-aware, but women have the edge. Harvard Business Review. Bratton, V. K., Dodd, N. G., & Brown, F. W. (2011). The impact of emotional intelligence on accuracy of self-awareness and leadership performance. Leadership & Organization Development Journal, 32(2), 127-149. Goldstein, G., Allen, D. N., & Deluca, J. (2019). Handbook of psychological assessment. Elsevier Science & Technology. Gorgens-Ekermans, G., & Roux, C. (2021). Revisiting the emotional intelligence and transformational leadership debate: Does emotional intelligence matter to effective leadership? SA Journal of Human Resource Management, 19(2), e1-e13. June, C. (2020). 10 signs you lack self-awareness. Psych2Go. Oltmanns, T. F., Gleason, M. E. J., Klonsky, E. D., & Turkheimer, E. (2005). Meta-perception for pathological personality traits: Do we know when others think that we are difficult? Consciousness and Cognition, 14(4), 739-751. Pekaar, K. A., Bakker, A. B., van der Linden, D., & Born, M. P. (2018). Self- and other-focused emotional intelligence: Development and validation of the Rotterdam emotional intelligence scale (REIS). Personality and Individual Differences, 120, 222-233. Wilson, T. D., & Gilbert, D. T. (2005). Affective forecasting: Knowing what to want. Current Directions in Psychological Science: A Journal of the American Psychological Society, 14(3), 131-134. Zes, D., & Landis, D. (2013). A better return on self-awareness. Korn Ferry Institute.

An increasingly ambiguous world impacts all of us. Effectively dealing with ambiguity is a life skill and a contemporary business imperative for employees and leaders at all levels and businesses of any size. Having a reliable way to clarify workplace ambiguity helps you avoid costly mistakes and improve performance. Unclear roles and responsibilities are one common workplace stressor. Whether being asked to do more with less or reporting to a new leader, when employees feel inefficient or unsure how to prioritize their work, it increases stress. Evidence from a global study by Gallup revealed that 49% of leaders and 42% of non-managers struggle with anxiety at work. So, how can you reduce workplace ambiguity? Here is one simple yet powerful tool busy leaders can successfully apply to deal with ambiguity. The costly effects of not dealing with workplace ambiguity As the world changes, businesses and individuals must change too. Organizational changes increase the opportunity for role ambiguity. Role ambiguity is described as one employee's understanding of their job or organizational objectives being different from another's, leading to an unproductive workplace conflict or wasted efforts. Poor communications, unclear policies, or a general lack of workplace relationships are typical sources of role ambiguity. Several studies have demonstrated that role ambiguity has significant negative personal and workplace results. One such study within the Big Four Public Accounting Firms showed that organizational role ambiguity led to: decreased performance increased work stress increased employee turnover In this study, role ambiguity significantly increased anxiety and physical and psychological stress at an individual level. Role ambiguity increases non-productive conflict and employee burnout even when a team has good working relationships. How to deal with ambiguity A RACI matrix is a simple and powerful tool for effectively dealing with role ambiguity. I have used this tool at the organization, team, and individual levels resulting in enhanced role clarity, improved workload balance, and decision-making. RACI is an acronym for responsible, accountable, consult with, and informed. Each letter represents the roles and degree of involvement for a given organizational role or task: Responsible: Who is ultimately responsible for doing the task? Accountable: Who is the decision-maker and accountable that the job is successfully completed? Consult with: Who needs to know the details and requirements so they can provide meaningful input to the task Informed: Who needs to be kept aware of task updates? An essential part of organizational consulting is helping individuals and teams gain clarity during change and dealing with role ambiguity created by the changes. Applying a RACI template in conjunction with a given change initiative is not intended to substitute for a robust change management plan. Instead, this tool creates additional awareness and understanding to support a given change. How to create a RACI Matrix Here are four steps to creating a RACI matrix for creating for dealing with role ambiguity. RACI Creation Step 1: Select a team As with most initiatives selecting the right team members to involve is essential to creating the most value. A critical quality step is to engage those closest to the work in creating the RACI. Additionally, you will want to include the manager and potentially the executive sponsor for the role. RACI Creation Step 2: Identify tasks associated with the target role Start with a high-level outline. Using a job description can be a good starting point. Then go back and break down the tasks into subtasks. For example, you could argue that an essential task for a knowledge worker is to turn on their computer. However, is it worthwhile to clarify who is responsible for this activity? This likely goes without saying. Getting too granular too early in creating the RACI can paralyze the team and overcomplicate the work. RACI Creation Step 3: Align groups and individuals with RACI designations Review each task, and identify the individual or group associated with each RACI designation. There will likely be differences of opinion at this step. It is important to surface the differences and then seek consensus. A common cause of the differences can come from differences of opinion on what is meant by definitions such as responsible vs. accountable. To help the team work through the differences, it is a good practice to write down the definitions and have them available to the team. RACI Creation Step 4: Walk the matrix After you create the RACI matrix, it is helpful to have those involved simulate a task and confirm with each responsible group that the level of their involvement is appropriate and that no groups or essential details that should be included were left out. It is easy to forget tasks when building these in a meeting. It's kind of like taking a familiar route to work each day and forgetting to recall the railroad tracks or stoplights you go through. When conflict is associated with ambiguity, you should first consider utilizing an external facilitator. Establishing trust and clarifying expectations is an essential starting point for creating a valuable outcome. The following short video provides a good overview and example of using a RACI matrix. RACI Matrix example I have enjoyed the Disney+ Star Wars series, The Mandalorian. I have used some key season one episode events in the table below to explain the RACI Matrix. "This is the way." When you have organizational or leadership development needs you cannot solve independently, we're ready to partner to craft a solution specific to your organization's context and challenges. Getting started is as easy as visiting www.organizationaltalent.com or contacting us via email at info@organizationaltalent.com to schedule a meeting. References: Amiruddin, A. (2019). The mediating effect of work stress on the influence of time pressure, work-family conflict, and role ambiguity on audit quality reduction behavior. International Journal of Law and Management, 61(2), 434-454. https://doi.org/10.1108/IJLMA-09-2017-0223 McCormak, N. (2013). Managing Burnout in the workplace: A guide for information professionals. Science Direct. Chandos Publishing. Wigert, B., & Pendell, R. (2023). 6 Trends Leaders Need to Navigate This Year. Gallup Workplace.

Our world has changed, and the hybrid workplace with work-from-home opportunities is part of a new normal. For many of us, going to the "office" has taken on a new meaning. Companies that require employees to be on-site full-time are finding it harder to hire employees as competitors are offering flexibility. Technology enables individuals and teams to work collaboratively remotely. There is no need to ask if you should use virtual coaching. Instead, a better question is, how can you develop quality coaching relationships through technology? A quick Google search on the effectiveness of virtual coaching makes it appear as if virtual coaching is just as effective as face-to-face coaching. However, most of those articles are authored by virtual coaching organizations using their data. Here is what peer-reviewed research contributes to the discussion on the effectiveness of virtual coaching. What is virtual coaching? Virtual coaching is often used interchangeably with e-coaching, distance coaching, online coaching, and remote coaching. Like in-person coaching, there is a general lack of consensus on its meaning. Virtual coaching is a technology-facilitated partnership between a coach and client to maximize the clients' personal and professional potential. Virtual coaching can include asynchronous communications, such as email and text messaging through a virtual coaching app, and synchronous such as voice and video communications, that provide immediate feedback with a coach. Asynchronous - means not existing or happening at the same time Synchronous - means existing or occurring at the same time Independent researchers have concluded that, like in-person coaching, virtual coaching improves learning, goal achievement, and work-life balance. Evidence suggests that the primary benefits of virtual coaching are added convenience, service, and support over traditional face-to-face coaching. Virtual Coaching Benefit #1: Accessibility Accessibility is likely one of the most significant benefits associated with virtual coaching, especially for global organizations and times when offices need to close. Technology enables the coach and client to connect, whether in different places within the same building or worldwide. Also, a digital environment improves access to tools supporting goal setting, coaching preparation, and progress tracking. Virtual Coaching Benefit #2: Availability Virtual technology platforms enable the coach to be brought into just-in-time and rapid-response situations or situations like cross-cultural coaching goals. Also, both the coach and client benefit from the flexibility and administrative ease in scheduling. Virtual Coaching Benefit #3: Affordability You have probably heard it said that time is money. Affordability improves through reduced travel and associated time out of the office costs. Although these benefits are very advantageous, the research does not support replacing face-to-face coaching with virtual coaching. In reality, in-person and virtual coaching have pros and cons. What are the top challenges with virtual coaching? It probably goes without needing scientific research to recognize that face-to-face communication is the most effective medium of communication. In reality, many people have some hesitation or even resistance to using virtual coaching. Numerous studies have shown that different mediums of communication have varying degrees of effectiveness in supporting in-the-moment feedback, information sharing, communication cues, emotions, and customization of the message. Although evidence suggests that the challenges with the lack of multiple cues and sharing emotions could be moderated by a skilled virtual coach, it is best to look at each client's situation and needs uniquely rather than a one size fits all strategy. A key is assessing the coaching situation and context to determine the best use for virtual coaching. How to know if you are a good fit for virtual coaching Virtual coaching is not for everyone and is not a fit for every coaching goal. So how do you know if it is a good fit for you? Coaching clients using virtual coaching need to have the competence and confidence to be coached in a digital environment. Research indicates that virtual coaching requires a more significant commitment and accountability from the client. It is also best if you are self-confident with the use of the virtual coaching platform. Your personality plays a role in whether virtual coaching is a good fit. Multiple studies conclude that clients with a higher degree of extroversion have stronger preferences and success with face-to-face coaching versus virtual coaching. Your environment moderates the effectiveness of virtual coaching. Having a location free from distractions, dogs barking, and the temptation of multitasking improves coaching effectiveness. It is important to take an honest assessment of your motivation, desire, confidence, competence, access to technology, and environment to understand if you are a good fit for virtual coaching. Here is a free quiz you can use to help you discover if you are a good fit for virtual coaching. What makes for an excellent virtual coach? Coaching does not have to be face-to-face to be personalized and effective. Evidence suggests that virtual coaching and face-to-face coaching are equally effective when it's a good fit for you and the coach. Here are a few of the attributes you should consider when hiring a virtual coach: Virtual Coach Attribute #1: Qualification A good virtual coach is a trained and qualified coach. Coaching is a skill, and the International Coaching Federation (ICF) is a globally recognized association with evidence-based competency and code of ethics certification requirements. Virtual Coach Attribute #2: Education What the coach knows matters. Evidence suggests that an academic background in a field like psychology enhances executive coaching outcomes such as the client's self-awareness and leadership performance. Virtual Coach Attribute #3: Virtual Technology Competence Just like your fit matters, the technical competence of the coach moderates the effectiveness of virtual coaching. An excellent virtual coach has the ability to: Operate the tools and functions of collaborative technology. Effectively interact to perform a task or solve a problem using technology. Manage and provide support on how to use the technology and interact effectively. Select and organize virtual tools in a way that optimizes interaction and best supports activity management. The ability to dynamically design the environment based on emerging collaborative and cognitive requirements. References: Ahrend, G., Diamond, F., & Webber, P. G. (2010). Virtual coaching: Using technology to boost performance. Chief Learning Officer, 9,44–47. Berry, R. M., Ashby, J. S., Gnilka, P. B., & Matheny, K. B. (2011). A comparison of face-to-face and distance coaching practices: Coaches’ perceptions of the role of working alliance in problem resolution. Consulting Psychology Journal: Practice and Research, 63, 243–253. Charbonneau, M.A (2002). Participant self-perception about the cause of behavior change from a program of executive coaching. Unpublished doctoral dissertation, Alliant International University, Los Angeles, CA. Cornelius, C., Schumann, G., & Boos, M. (2009). Time and goal-management for junior researchers: Evaluation of online coaching. Organisationsberatung, Supervision, Coaching, 16, 54–65. Frazee, R.V. (2008). E-coaching in organizations. A study of features, practices, and determinants of use. Unpublished doctoral dissertation, San Diego University, USA Ghods, N. (2009). Distance coaching: The relationship between coach-client relationship, client satisfaction, and coaching outcomes. Unpublished doctoral dissertation, San Diego University, USA Hamilton, B. A., & Scandura, T. A. (2003). Implications for organizational learning and development in a wired world. Organizational Dynamics, 31 (4), 388–402. Hernez-Broome, G., Boyce, L. A., & Ely, K. (2009). The coaching relationship: A glimpse into the black box of coaching. In L. A. Boyce & G. Hernez-Broome (Chair), The client-coach relationship: Examining a critical component of successful coaching. Symposium conducted at the 24th Annual Conference of the Society for Industrial and Organizational Psychology, New Orleans, LA. Hernez-Broome, G. & Boyce, L.A. (2010). Advancing Executive Coaching : Setting the Course for Successful Leadership Coaching, edited by Gina Hernez-Broome, and Lisa A. Boyce, Center for Creative Leadership. Hubschman, B. G. (1996). The effect of mentoring electronic mail on student achievement and attitudes in a graduate course in education research (Doctoral dissertation, Florida International University, 1996). Dissertation Abstracts International, 57–08A , 3417. Newberry, B. (2001). Raising student social presence in online classes. World Conference on the WWW and Internet Proceedings, Orlando, FL: ED466611, 2–7. Pascal, A., Sass, M., & Gregory, J. B. (2015, January 12). I’m Only Human: The Role of Technology in Coaching. Consulting Psychology Journal: Practice and Research. Advance online publication. Sitkin, S., Sutcliffe, K., & Barrios -Choplin, J. (1992). A dual-capacity model of communication media choice in organizations. Human Communication Research, 18 (4), 563–598. Ting, S., & Hart, E. W. (2004). Formal coaching. In C. D. McCauley & E. Van Velsor (Eds.), The Center for Creative Leadership handbook of leadership development (pp. 116–150), San Francisco: Jossey-Bass. Trevino, L., Lengel R., & Daft R. (1987). Media symbolism, media richness, and media choice in organizations. Communications Research, 14 (5), 553–574. Wang, L., & Wentling, T. L. (2001, February–March). The relationship between distance coaching and the transfer of training. Paper presented at the Academy of Human Resource Development, Tulsa, OK.

Have you ever wrestled with the idea of being vulnerable in a conversation? Regardless of leadership level or amount of experience, all leaders struggle with the tension of being vulnerable or not. In difficult conversations, followers want to know you care about them. But, concerns about managing perceptions often keep leaders from showing vulnerability. And when a leader is guarded in a difficult conversation, it promotes distrust. Although leaders are expected to convey an image of competence, confidence, and power, followers already know you are not perfect. Leaders have to learn to be comfortable without having all the information wanted or needed in difficult conversations. Being vulnerable requires courage and produces trust. If you find yourself accidentally avoiding vulnerability in difficult conversations, here are five proven strategies that will move you closer to your goal. Why Leadership Vulnerability Matters in the Workplace In a fast-paced digital workplace, leaders need empowered followers to take charge. But taking charge in a crisis can be risky. However, a recent study revealed that only 30% of employees see a reason to say something when they see something is wrong, and only 30% believe their opinion counts. Vulnerability in the workplace is found to enhance: trust collaboration innovation employee retention psychological safety and a feeling of connection that improves the quality of leader-follower relationships and employee performance The Power of Vulnerability As a leader, vulnerability involves taking risks that might end in failure or create the best of what might be in the organization. Often the word "weakness" is considered a synonym for vulnerability. However, being vulnerable as a leader takes strong leadership and creates a significant amount of leadership power, confidence, and influence. Vulnerability is a courageous choice. In this short video, Simon Sinek expands on the tension leaders face and how to show vulnerability in the workplace as a leader. Leaning into vulnerability in a difficult conversation is best modeled by leaders first. When leaders model vulnerability in a conversation, it establishes trust and safety for followers. A display of vulnerability by the leader encourages followers, in turn, to take risks by being vulnerable. Vulnerability given is vulnerability received, leading to improved communication, productivity, and relationships. Followers want to see that their leader cares for them and is open to learning. Here is a Ted Talk by Brene Brown discussing The Power of Vulnerability: Are You Being Vulnerable in Difficult Conversations? To identify your tendency—to be vulnerable in difficult conversations —take the following free five-question quiz and receive your vulnerability leadership score. a score of 75-100 indicates you have a high degree of vulnerability in difficult conversations a score of 55-75 indicates you have a moderate degree of vulnerability in difficult conversations a score of 20-55 indicates you have a low degree of vulnerability in difficult conversations. After completing this quiz, if you'd like to go to the next level, consider asking others to give you their feedback on how vulnerable you are in difficult conversations using these same questions. How to Be Vulnerable in a Difficult Conversation While there is no one complete checklist of actions you can take to show vulnerability. The following five strategies are compiled from proven research on mastering difficult conversations: Vulnerability Strategy #1: Be transparent Keep the conversation open and genuine. This does not mean sharing personal secrets. It means metaphorically that you invite those you are speaking with into the front door of your house rather than making them stand on the doorstep and talk with you from behind your screen door of image management. Being transparent pertains to both the logical rationale aspects of the conversation as well as your feelings about the other person and the conversation. Vulnerability Strategy #2: Put others first Entering a difficult conversation with the motivation to win or give the best answer will not lead to good outcomes. Putting others first doesn't mean thinking less of yourself. It means starting with the intent to understand before being understood. Listen for what they need from the conversation. Vulnerability Strategy #3: Demonstrate selfless love Selfless love is to will the good of the other person. Demonstrating selfless love in a difficult conversation involves being self-aware and showing empathy and compassion rather than speaking from positional power. Self-awareness improves your communication clarity and ability to understand multiple perspectives. Empathy helps you listen and understand how others are feeling, and compassion inspires actions that are helpful. Vulnerability Strategy #4: Take action Difficult conversations are costly when neglected. Consider the what, where, how, and when of the conversation. Balance the need to prepare with the need to take action. It is easy to get caught in a trap of waiting for more information, leading to procrastination. Vulnerability Strategy #5: Ask for feedback Vulnerability is about being weak to defend your point of view and desiring to learn something new. When asking for feedback in a difficult conversation, it is helpful to remember that it is a gift given. You can not address what you can not hear. If you are delivering a very tough message that has not been shared before, it can be best to be direct and to the point and then offer to discuss it later. This allows time for the message to be processed analytically and emotionally at their pace before you ask for feedback. What is your leadership vulnerability challenge? Key Summary Points: Regardless of leadership level or amount of experience, all leaders struggle with the tension of being vulnerable or not. Leadership vulnerability involves the willingness to take risks that might end in failure or create the best of what might be in the organization. Vulnerability is a courageous choice. When leaders model vulnerability in a conversation, it establishes trust and safety for followers. Be transparent, put followers first, demonstrate selfless love, take action, and ask for feedback. References: Edelman. (2023). Edelman trust barometer: Navigating a polarized world. Grenny, J., Patterson, K., McMillan, R., Switzler, A., & Gregory, E. (2021). Crucial conversations. McGraw-Hill Education. Patterson, K., (2005). Crucial confrontations: Tools for resolving broken promises, violated expectations, and bad behavior. McGraw-Hill. TEDTalks: Brene Brown—The power of vulnerability (2010). TED.

The world needs leaders that aspire to create a better tomorrow. Just as no one is perfect, no organization is perfect, and no organizational culture is perfect. Organizations, like all other natural systems, over time, head toward a state of randomness. Stated another way, if leaders are not continually investing in making organizations better, the organization will constantly decline. It is not about changing but about survival. There are many different definitions for leadership, but most would agree it is about influence. Organizational culture is everyone's responsibility, and leaders play a central role in influencing and reinforcing the company culture. Leaders need to be able to operate within and upon the business. Today, many leaders are asking how they can change the organizational culture. Although culture change is challenging, making changes doesn't require considerable investments or team colocated in the same building. Here are six practical culture change strategies that will move your company closer toward your goal. What is Organizational Culture? If you are looking for a good discussion topic at an upcoming meeting, take some time to ask those attending how they would describe the organization's culture. You will likely hear many different perspectives on what culture is and is not. The word culture gets used differently by different people at different times. Edgar Schein is considered to be one of the most influential contemporary thought leaders on organizational culture, and below is his organizational culture definition: "a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems." It is easy to focus on the things that are visible to describe an organization's culture. However, an organizational culture framework consists of artifacts, values, and underlying assumptions: Artifacts: These are the things you can see, feel, or hear in the workplace. Examples include what is displayed, office layouts, uniforms, identification badges, and what is discussed and not discussed. Espoused Values: What you are told and beliefs that you can use to make decisions. Examples include a company's vision and values or mission statement. They are explicitly stated official philosophies about the company. Basic Assumptions: These are the things that go without saying or are taken for granted. Examples could include speaking up in meetings, holding a door for someone, smiling, or greeting someone by name when walking down the hall. Why Organizational Culture is Important Organizational culture is the one thing that influences every aspect of your business. It directly impacts the overall success of your organization, your people, your customers, and your communities. The underlying values of an organization influence the behaviors of employees and their decisions. Much has been written on the impact of culture on business effectiveness. Scholarly research has directly linked the effects on customer satisfaction, employee teamwork, cohesion, and employee involvement. Organizational culture creates an internal and external brand identity that influences what and how people think about your organization. Organizational culture is also key to unlocking innovation. Just as some organizational culture characteristics can support innovation, others can also inhibit innovation. For example, a hierarchical organizational culture type has been proven to decrease an organization's ability to innovate. 3 Organizational Culture Company Examples Organizations with strong organizational cultures are defined by having their culture deeply rooted in how they operate. The following three companies are frequently recognized for their organizational culture. Southwest Airlines operates within an industry routinely made fun of for its poor customer service; however, it is known for the opposite. Employees at Southwest can do what is needed to make customers happy, and as a result, their customers are loyal. Zappos is an organization that has tightly connected its culture with its hiring practices. Zappos offers new hires $2000 to quit if they feel the job is not the right fit for them within the first week of employment. Check out this Zappos organizational culture video: Keeping culture strong becomes more challenging as the organization grows. Google has faced many challenges on its path to becoming the 5th most valuable company by market capitalization in the world. Businesses have to reinvent themselves to grow and adapt to changes. Google is known for being unique and leveraging data everywhere. Google uses people analytics not just for feedback but also for organizational culture analysis. Check out Google Project Aristotle to learn how data is used to improve teamwork. How can Organizational Culture be Changed? The following six proven leadership strategies can change how employees behave, and what they think, feel, and perceive. Culture Change Strategy #1: What leaders pay attention to regularly This is one of the most potent mechanisms leaders have available. What leaders choose to systematically measure, reward, and control matters, and the opposite is also true. For example, suppose an organization wants to build an analytical orientation within the culture. In that case, a great starting point is to ask leaders what data they are using to make decisions or start rewarding leaders for making data-driven decisions. Culture Change Strategy #2: How leaders react to critical incidents Much can be revealed when a business or a leader faces a significant challenge. These crucible moments are like a refining fire. It is the heightened emotional intensity that increases individual and organizational learning. For example, the recent global pandemic revealed much more about an organization's values than any about page on a website or company orientation ever would. Sodexo is one positive example of an organization demonstrating its commitment to employees through leadership's pandemic response. Culture Change Strategy #3: How leaders allocate resources and control costs Follow the money. Budgets reveal a lot about the organization's assumptions and beliefs. Additionally, resources include physical assets such as equipment and tools, as well as human resources. What gets resourced gets reinforced. Going back to the example of creating an analytical orientation, leaders should consider what tools and resources employees have available for data analytics. Culture Change Strategy #4: Deliberate role modeling and training How leaders act and behave outside of training is more significant than what is said or demonstrated within training events. Leaders looking to build an analytical cultural orientation would benefit by explaining to and showing the organization how they use data to make decisions on a routine basis. Culture Change Strategy #5: How leaders allocate rewards Rewards and recognition come in many different forms. Also, what is considered a reward varies from person to person. Both what gets rewarded and how it gets rewarded and what does not get rewarded reinforces organizational culture. There are tangible rewards and social rewards. Simply saying thank you for presenting a decision using data analytics is a social reward. Culture Change Strategy #6: How leaders recruit, promote, and fire Who gets hired, promoted, and fired, and for what both creates and reinforces your organization's culture. Talent management decisions can be viewed as a more subtle nuance to culture change because decisions are influenced by explicitly stated criteria and unstated value priorities. A leader looking to influence an analytical cultural orientation would benefit from assessing the skill sets needed within the organization and then hiring based on those skills. How to overcome culture change resistance? Organizations are likely to deny the need for change and become defensive at the suggestion of change. If leaders are not attentive to the resistance, they can be considered the change needed. Just mentioning the word change creates anxiety. Creating momentum within the organizations around the desire to survive and thrive reduces learning anxiety by creating psychological safety. Psychological safety is a condition when you feel included, able to learn, contribute, and provide critical feedback without fear of being embarrassed, excluded, or penalized. Leaders increase psychological safety by consistently helping followers comprehend and accept the challenge. A key takeaway observation from the six strategies for change is that they are about the leader's habits rather than a one-and-done culture change intervention. Also, these strategies tap into key drivers of organizational change: The inspiration of employees. The involvement is of everyone as much as possible. The internalization of the change. As the world changes, people and organizations must change too. We partner with clients to cultivate desired organizational cultures so that they can thrive. Contact us to discuss how we can partner with you to create a pathway toward your desired future. References: Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A meta‐analytic review. The Journal of Product Innovation Management, 30(4), 763-781. Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (Third ed.). San Francisco, CA: Jossey-Bass. Gregory, B. T., Harris, S. G., Armenakis, A. A., & Shook, C. L. (2009). Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes. Journal of Business Research, 62(7), 673-679. Nieminen, L., Biermeier-Hanson, B., & Denison, D. (2013). Aligning leadership and organizational culture: The leader-culture fit framework for coaching organizational leaders. Consulting Psychology Journal: Practice and Research, 65(3), 177-198. Pater, R. (2015). Advanced culture change leadership. Professional Safety, 60(9), 24. Schein, E. H., & Schein, P. (2016). Organizational culture and leadership, 5th edition (5th ed.) John Wiley & Sons.

The future workforce is more diverse than ever. Census data confirms cultural diversity is growing faster than predicted, especially among Gen Z. A competitive talent landscape, technological advances, and global population shifts are rapidly increasing cultural diversity in the workplace. Regardless of your industry, you will likely experience vast differences between cultural expectations among employees, challenges in attracting and retaining culturally diverse talent, and the growing need to develop intercultural professionals and leaders. This article explores these challenges and, more importantly, five practical strategies you can take to solve them. Cross-Cultural Strategy #1: Culturally Agile Leadership Leaders increasingly face cross-cultural differences working with diverse customers and employees. With over 60 global cultures identified and numerous variations in regions within the national cultures, it is virtually impossible to be experienced in every potential situation. Cross-cultural differences require leaders with cultural agility. A large-scale global study involving over 32,000 people from 28 countries found only 20% are willing to have someone they disagree with their point of view as a coworker. Cultural differences in the workplace can be substantial and quickly escalate into conflict and limit a leader's and organization's effectiveness. Successful, culturally agile leaders can see themself through another person's perspective. They can: understand their culture, their organization's culture, and how it impacts the business. recognize and appreciate the differences between other cultures as compared to their own. use their understanding of cultural differences to conduct business within cross-cultural situations effectively. Cross-Cultural Strategy #2: Recruit for Intercultural Competence Talent acquisition is a critical process for any leader and business. Increased competition intensifies the pressures on companies to find talent capable of immediately contributing to the organization with reduced onboarding periods. Adding to the challenge is the reality that the work is changing quickly, and positions needed today may not exist in the future. The increased demand for cross-cultural professionals and leaders is multiplying the challenge for companies. To face these challenges, businesses can benefit by identifying and incorporating intercultural competencies into hiring practices. Unlike competencies that address technical and behavioral knowledge, skills, and abilities of the work, these competencies address the cross-cultural leadership aspects of the work and workplace. Recruiting practices need to attract and select leaders with the inter-cultural competence to: identify and appropriately engage in cross-cultural situations drive cross-cultural value by capitalizing on cross-cultural advantages achieve mutually beneficial outcomes presented in a cross-cultural situation Cross-Cultural Strategy #3: Apply Strategic Workforce Planning Likely you are familiar with conducting a SWOT analysis as a part of your strategic planning, where you identify strengths, weaknesses, opportunities, and threats to achieving your company's overall mission, vision, and goals for the future. Strategic workforce planning similarly identifies strengths, weaknesses, opportunities, and threats that apply to the talent needed. Incorporating strategic workforce planning into your business's strategic planning process provides feedback to enhance strategy execution. Strategic workforce planning is a dynamic process to ensure a business has the correct number of people with the right skills in the right places at the right time to deliver on current and future goals. There is no "one- size fits all" approach to strategic workforce planning. The best approaches account for the unique context and culture of your business. It all begins with getting clear on your strategic business priorities and then integrating the following steps into your planning: Role segmentation. Identify strategic roles based on their importance to the execution of the business strategy. Environmental scanning. Conduct quantitative and qualitative analysis of the internal and external workforce supply and demand. Scenario planning. Consider a range of potential futures to improve the possibilities of future success in your business. Cross-Cultural Strategy #4: Employee Retention Interviews Most organizations conduct exit interviews, but employee retention interviews are proactive instead of reactive. Retention interviews are intended to learn from current employees about the factors that motivated them to accept the offer to work with your company and if those reasons are being met today from the employee's perspective. Retention interviews involve asking a series of questions so changes can be made to meet employee expectations before they exit the company. These interviews can be built into a regular part of one-to-one meetings or in large group team meetings. Sometimes, human resources can administer these interviews to help with anonymity and psychological safety. Here are a few sample retention interview questions you can use: Why did you decide to work for this company? Are those reasons still valid in your current job? If you could change anything about the workplace, what would you change? If you could make this job everything you wanted it to be, what would you change? Focusing on retention and making changes where needed to meet the needs of cross-cultural employees will benefit recruiting efforts by improving the employment value proposition. Cross-Cultural Strategy #5: Talent Development There are many horror stories of organizations that have taken successful leaders with in-depth technical knowledge from one location and placed them in different cross-cultural situations, only to fail. Underestimating cultural differences from one part of the business to another is dangerous, especially in an increasingly cross-cultural context. Cross-cultural leaders are not born; they are developed. Developing the competency of cultural agility requires dedicated effort and investment to break from the typical classroom presentation or eLearning module. Developing cross-cultural talent is most effective in a blended learning environment, including assessments, cross-cultural immersion experiences, and structured feedback. Key Summary Points Businesses cannot rely on leaders' tenure and technical expertise to solve increasingly complex cross-cultural challenges. Modern leaders need cultural agility Businesses should be recruiting leaders and professionals with intercultural competence Strategic workforce planning should be incorporated into strategic planning activity Leaders need to take a proactive approach to talent retention Developing culturally agile professionals and leaders requires more than traditional approaches to learning and development What is your cross-cultural opportunity? References Caligiuri, P. (2012). Cultural agility: Building a pipeline of successful global professionals. Jossey-Bass. Frey, W. (2020). The nation is diversifying even faster than predicted, according to new census data. Brookings. Mayo, A. (2015). Strategic workforce planning – a vital business activity. Strategic HR Review, 14(5), 174-181.

What makes certain leaders excel in the workplace while others struggle? Have you ever wondered if you were capable of getting more out of life and work? In the Netflix series Medal of Honor, inspiring stories of impossible bravery are recreated from sworn accounts and battlefield forensics. You quickly learn combat is not something great, and recipients of the nation's highest recognition don't set it as a goal. But these heroic lessons from the worst day of life reveal an unexpected leadership lesson. It's a leadership mindset and skillset for how to become a better leader than you thought possible. Selfless love changes everyone and everything The contemporary workplace needs a different kind of leader. Rates of stress, anxiety, sadness, and anger are trending up. In a recent survey, Gallup found that 57% of US employees feel stressed daily. In speaking with frontline to c-suite leaders across various industries, one common theme is that the new normal is crisis-driven. In the series trailer, Medal of Honor recipient Army Capt. Florent Groberg says, "One thing you will learn a lot about in combat is love." The stories in the series remind us of what has been done for our country and what is possible when leaders embrace selfless love. Selflessness means being more concerned with the needs and desires of others than with your needs. And one of the best definitions I have come across for love in the workplace context comes from St. Thomas Aquinas. "To love is to will the good of the other." St. Thomas Aquinas Selfless love is a radically different paradigm from a transactional worldview of the workplace. Without selfless love in the workplace, the best of what might be is impossible Selfless love creates remarkable courage that overcomes the fear of failure. Selfless love unlocks the leader's and their team's potential to deliver amazing results. Overcoming the fear of failure No organization is looking to stay the same year over year. Fostering innovation within an organization is an increasingly important leadership behavior for every business. Innovation and failure are interconnected, where one produces the other. Failure is not always bad, but an unhealthy fear of failure puts results at risk. Fear minimizes experimentation and risk-taking, which impact innovation and change. The greater the fear of failure, the more likely an individual or organization will avoid taking necessary risks. "On his very worst day, he managed to summon his very best. That's the nature of courage — not being unafraid but confronting fear and danger and performing in a selfless fashion. He showed his guts, he showed his training; how he would put it all on the line for his teammates." President Obama speaking of Medal of Honor recipient Captain Groberg Selfless love creates remarkable courage that overcomes fear. When leaders practice selfless love, it creates safety where followers are more willing to take risks and be open to failures. Selfless love does not imply that leaders ignore the fear of failure. Instead, they recognize the negative influence of fear and use it as an advantage. Delivering Results and Maximizing Performance Potential Too often, employees are treated like light bulbs, considered disposable. When they aren't working well, leaders look to replace them. Disposable employees aren't committed to the business, and a failure to maximize employee performance is a costly mistake. Selfless love unlocks potential in the leader and their team, delivering amazing results and business growth. Selfless love makes a better workplace and improves outcomes. It increases leader and follower commitment, increasing intrinsic motivation that amplifies workforce alignment and business strategy benefits. Evidence suggests that increased employee intrinsic motivation causes people to achieve better business results. In addition to increased productivity of expected behavior, selfless love impacts an employee's discretionary effort, also known as organizational citizenship behavior (OCB). Discretionary effort is considered the penultimate type of performance in organizations. OCB is when employees contribute to an organization beyond their formal job requirements. There's nothing stronger than the heart of a volunteer. "— General James Doolittle, Medal of Honor Recipient An emerging leadership style for the new normal Evidence suggests that only 43% of employees indicate a positive team climate at work, only 30% see a reason to say something when they see something is wrong, and only 30% believe their opinion counts. This distrust breeds polarization in society and the workplace. There are many red flags that the workplace is in trouble. Gallups Global Workplace report found evidence suggesting that 2 in 10 employees consider their mental health fair or poor, 3 in 10 are engaged at work, and 5 in 10 are only doing the minimum required at work. Effective leadership makes a difference in the results you achieve and the life you live. The costs of poor leadership often show up in the workplace disguised as low employee engagement, a lack of team cohesion and collaboration, high employee turnover, and failed execution. Leaders must continually transform and adapt or fall behind. Striving for better habits is a competitive advantage available to any leader looking for a powerful point of differentiation. Servant Leadership is a distinctly different emerging leadership style described by the attribute of selfless love. A servant leader serves others first. The benefits of servant leadership extend beyond reducing costs and improving performance to include employee retention, intrinsic motivation, and discretionary effort. The following short video from leadership expert Ken Blanchard provides some thoughts on the power of servant leadership in today's workplace. Robert Greenleaf is attributed by most as the founder of servant leadership, described a servant leader as a servant first and used the following test to answer the question, what's servant leadership? The best test, and difficult to administer, is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants? And, what is the effect on the least privileged in society; will they benefit, or, at least, will they not be further deprived. ~Greenleaf & Spears Are you a Servant Leader? Take this free quiz to learn if your leadership style aligns with servant leadership. If you’re like most leaders, you’re running from meeting to meeting and working at a breakneck pace to manage your business and help those around you be successful. You’ve probably neglected to invest in your development more than once and wish you had a meaningful development plan to help you and your business grow and lead at a higher level. I invite you to check out our Servant Leadership Development Program. I challenge you to apply selfless love as a leader in the workplace and see your business results improve. What about your leadership style needs to change to get more out of life and work? Key Summary Points Selfless love changes everyone and everything Selfless love creates courage and overcomes the fear of failure Selfless love unlocks potential in the leader and the organization Selfless love delivers amazing business results The world needs a different kind of leader. Selfless love is rare. References Becchetti, L., Castriota, S., & Tortia, E. C. (2013). Productivity, wages, and intrinsic motivations. Doolittle, J. (2023). Life-changing leadership habits: 10 Proven principles that will elevate people, profit, and purpose. Organizational Talent Consulting. Gallup Workplace. (2021). State of the global workforce. Gallup. Greenleaf, R. K., & Spears, L. C. (2002). Servant leadership: A journey into the nature of legitimate power and greatness (25th-anniversary ed.). Mulinge, P. (2018). ALTRUISM AND ALTRUISTIC LOVE: Intrinsic motivation for servant-leadership. The International Journal of Servant-Leadership, 12(1), 337-370. Patterson, K. (2003, October 16). Servant leadership: A theoretical model [PDF]. Shu, C. (2015). The impact of intrinsic motivation on the effectiveness of leadership style towards work engagement.