Managing culture changes in the workplace poses a significant challenge for leaders. All organizations will inevitably face the need for cultural transformation, but achieving successful change is a formidable task. Culture represents the organization’s identity, encompassing its mission, values, and preferred methods of achieving objectives. If any of these aspects require modification, it necessitates a shift in the behaviors of every individual within the organization. Considering the difficulty of persuading even one person to embrace change, the challenge intensifies when dealing with a workforce of 15,000 employees.
Recent research highlights that communication holds greater significance than managing expectations or setting goals when implementing a change strategy. Leaders play a crucial role as culture communicators, as their actions shape the underlying culture of the organization. Therefore, when a cultural shift is required, company leaders must take the lead in communicating the “Who, What, When, Where, and Why” of the change. However, this task is further complicated by the evolving nature of how company cultures are constructed in the first place.
Modern businesses now embrace the concept of culture as a shared responsibility among all members of the organization, rather than solely the HR department. Employees are encouraged to take ownership of the company’s culture, granting them a sense of organizational citizenship where their opinions hold weight and can influence operational decisions. In the past, culture was dictated and defined by a select few individuals, but evolving attitudes and new feedback channels now position employees as crucial contributors to shaping the culture. Since they are the ones actively operating the organization, it is only fair that they have a say in its functioning.
However, it is important to recognize that employee sentiment is not the sole determinant of culture. The issue of shareholder value significantly impacts organizational operations. Every company is accountable to its shareholders, who have invested financially in its success. Therefore, large organizations often have extensive mission statements, visions, and value propositions that explicitly address their financial obligations. It would be incomplete not to acknowledge that culture changes are often driven by shareholder concerns, leading to adjustments in organizational operations to adapt to fluctuating market conditions.
Thus, there are two distinct parties at opposite ends of the organizational spectrum: employees and investors. While their interests in company culture may not directly clash, there is ample opportunity for conflicts to arise between them. When culture inevitably needs to change, it is the responsibility of the leadership team, situated in the middle, to develop an approach that addresses the needs of both parties. They must effectively communicate this strategy and exemplify behaviors consistent with the desired changes. This is crucial because while culture is a shared responsibility, the role of leaders in driving cultural change holds unique power and can either make or break the entire endeavor.
Leaders can enhance their communication of workplace culture changes by focusing on two key aspects: the personal effort they invest and the authenticity they exhibit.
Be present to be personal
Convincing employees that change is necessary is one of the most challenging aspects of culture transformation. People tend to stick to familiar and comfortable routines, showing a natural inclination for the old way of doing things. When rumors of change start circulating, employees become anxious about the potential impact on their lives. To effectively address these concerns, leaders must directly confront them.
McKinsey & Company has previously emphasized the crucial role of executives, particularly CEOs, in leading during times of transformation. Through their research, the consulting firm found that significant culture change initiatives were most successful when executives took the lead and personalized the story for employees. By making themselves available to employees, leaders were able to address their most pressing question – “How does this affect me?” – in a convincing and relatable manner.
I have personally witnessed the effectiveness of the executive’s role in bringing about change. I previously worked in the HR department of a company that underwent a complete rebranding process after separating from a larger organization. This transformation involved changes in our name, logo, and mission, essentially making us a new company. Despite being a “smaller” organization, we had over 10,000 employees located across various international sites.
To guide employees through this significant transition, the executive leadership team personally visited every location to engage with the employees. Instead of using impersonal and inexpensive communication channels, these leaders recognized the importance of devoting resources to address employee concerns and ensure a positive start to the changes.
As one of the selected “change champions,” I participated in this process. My role involved facilitating follow-up sessions where we used a board game as an interactive and enjoyable way to reinforce our new cultural principles. I was also there to answer any remaining questions related to the culture change. This process took time, but it was undoubtedly worthwhile. I personally observed the difference in how employees not only understood the methodology and reasons behind the changes but could also recite our new culture statements, such as our mission and values. Such a high level of retention cannot be achieved through an email alone. It was a direct outcome of leaders genuinely investing effort to keep employees engaged at every stage of the learning process.
Authenticity is consistency
A recent survey reveals that the majority of attempts to bring about organizational change fail not due to inadequate planning, but due to poor execution. This observation aligns with employees’ perspective, as they are initially enticed by leaders who demonstrate effort and approachability. However, this initial appeal is short-lived and insufficient to maintain their attention. Companies often underestimate the intelligence of their employees. After the initial announcement of change, employees closely scrutinize leaders for any signs that the change is insincere.
For successful workplace cultural changes, leaders must exhibit sincerity and authenticity. As stated by McKinsey & Company, CEOs who merely pay lip service to a transformation will find that others do the same. Leaders need to be mindful of the values they reinforce throughout the entire process.
To be authentic, leaders must demonstrate consistency. Consistency is the key to transforming “change” from a disruptive and unwelcome presence into the new norm of the company. If a leader declares that integrity is a new core value, they themselves, above all others, must exemplify integrity in their daily actions until employees clearly understand what it entails. If the company announces a transition to a flat organizational structure, leaders cannot become upset when lower-level employees begin to exercise newfound authority.
Building authenticity and sincerity requires time. Employees will not immediately embrace change, but with each day that leaders remain consistent in upholding the desired values, trust is gradually established. Over time, leaders will become visibly connected to the message they convey, thus displaying authenticity. When employees believe that their leaders are genuine, the desired changes will gradually permeate their daily behaviors.
Culture is not something that can be defined once and remain fixed. As an organization operates over an extended period, cultural changes are more likely to occur. Workplace culture changes can evolve organically as employees come and go, or they can be the result of a deliberate organizational effort. In any case, leaders must possess the skills to effectively communicate the cultural values at all times and exhibit genuine dedication to living those values when it matters the most.
