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Developing Your Company Culture: The Joy of Leadership

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At some point in your career either in an organization or as an external consultant you are likely to be handed a "golden baton" and asked to facilitate or create change within the corporate culture. On one hand you may be delighted that the organization has seen the value in this sort of initiative and recognizes the need. On another hand you may be aware of the task at hand and wonder, "Does this organization really understand what it is asking for. Is it truly ready to make the necessary changes to create this `said' desired outcome." If in fact you accept at this endeavor, ( and I choose this word lightly-as many are not asked but assigned to the undertaking) I recommend you read two useful resources. The first you are probably already familiar with, John Kotter's Leading Change; the second I will be sharing with you here, Barry Phegan's Developing Your Company Culture-The Joy of Leadership.

John Kotter's Leading Change is very useful as a pragmatic guide to the strategic steps necessary in creating change. Strategy, alone, cannot ensure cultural change. What Phegan does is put strategy in the context of what he calls the "Five Levels of Evolution, Culture, and Leadership." According to Phegan, there are five areas in organizational culture that require balance: physics, life, competition, language, and experience. In most companies the organizational cultures are strong in some areas, weak in others. In order to align a "cultural change" strategy in a way to create meaningful change, there must be leadership to balance out these areas.

5. Experience-feelings, trust, fear, caring, values, involvement, satisfaction There is always experience, but in most organizations the quality of it is poor. You cannot get to this directly, only through actions at level 4.

4. Language-communications, listening, meaning, understanding, relationships, teamwork, consensus, win-win This is the thinnest area in most organizational cultures. Communications, understanding, relationships, and teamwork are usually weak. +

3. Competition-economics, authority, control, politics, win-lose, rules, information, productivity, profits, decisions Although not always discussed, openly, this level is overemphasized in most organizational cultures.

2. Life-systems and processes, biology, operational procedures and methods, training, software, efficiency Operating systems are often poorly developed. There is usually plenty of room for process improvements. *

1. Physics-chemistry, equipment, hardware, engineering, technology In most organizations, this level is fine. It is easier to talk about equipment than the more productive areas of processes (2), or communications (4). The table below (page 53 of text) points to the fact that the largest opportunity to develop changes in the work culture lies in language-which has been broken down into communications, listening, meaning, understanding-basically relationship building. The next largest opportunity lies in tackling problems in processes and procedures.

While I am sure that this makes intuitive sense to you, the task becomes how to document and put together a means to actively measure the actions you are taking and how they affect the bottom line or the goals and objectives by which you are to be measured while leading this imitative. Phegan does not offer any solution to that dilemma. What he does, however, is offer a template to improve the areas that need the attention. The most effective strategy that Barry Phegan advocates is the use of an informal interview. He provides a template for an interview format that will allow organizational leaders to get clearer understanding of the framework of the organizations employees. It is from these "non-agenda-conversations"-not "fireside chats" relationships are built, the "true" picture of the existing culture can be drawn, and human beings can feel individual and valuable. This is where he claims you get the biggest return on your cultural change investment.

The book is full of information regarding group dynamics, the art of negotiating, and skillful tips to managers. What is somewhat discouraging is that after several pages of information, guidance, and helpful hints, he ends his book with a section called Reflections where he points out that "work cultures are very stable. Sometimes they would rather die than change." He outlines why managers resist employee involvement in cultural change initiatives. Perhaps the knowledge of why there is resistance is helpful, but he does not offer any solutions to this aspect of human management nature. He even encourages external consultants to work in teams, "culture consultants should always work as a team. Work cultures are simply too seductive."

As you go forward with the task at hand to lead or create cultural change, don't get discouraged. Remember, each positive conversation, change, meeting does have a ripple effect. Phegan encourages you as a cultural leader to look for "pockets of readiness" and to encourage them. Work and gain momentum with those who "get it" and allow the change to evolve over time. It cannot be forced.

As a teacher and practitioner of organization development I recently re-read this book and found it especially germane given today's acceleration of mergers, acquisitions, and pace of life in general. Work is more challenging yet less fulfilling than ever. Change sometimes seems to be expected if not immediately, then soon thereafter. The quick fix solution is sought all too often, typically in the form of a high profile "program" which does not adequately address underlying issues and therefore is doomed to failure. This includes culture, a label that in popular use has been hung on everything from common behavioral patterns to espoused new corporate values that senior management wishes to inculcate. The metaphor nevertheless has considerable relevance for developing organizations, particularly in regards change and change management. Language-including communications, understanding, relationships, and teamwork-is usually the weakest area in organizational cultures, particularly so with the increase in computer-mediated communication. Thus the book provides a critically needed counterpoint. For example, one of its practical tools, "the cultural interview," reveals common themes which provide the basis for discussion, thereby opening and directly developing the culture and enabling the possibility of people finding new meaning at work and life such that change actually can become welcome.

Teaching by clear and helpful examples is the strength of `Developing your company culture'. Dr Phegan in less than 150 pages provides valuable insights on understanding the decision making process in corporate cultures, the nature of power sharing, the importance of feedback and the benefits of listening to each other. In terms of implementing consensus management and increasing productivity through creating friendly work environments his practical tips clearly come from someone who has "been there" and learned from his experience. I found this a very useful book for all levels of leadership from project management to CEO level. Highly readable with no fancy jargon. Peter Robinson, Editor "San Francisco Books and Travel."

Teaching by clear and helpful examples is the strength of `Developing your company culture'. Dr Phegan in less than 150 pages provides valuable insights on understanding the decision making process in corporate cultures, the nature of power sharing, the importance of feedback and the benefits of listening to each other. In terms of implementing consensus management and increasing productivity through creating friendly work environments his practical tips clearly come from someone who has "been there" and learned from his experience. I found this a very useful book for all levels of leadership from project management to CEO level. Highly readable with no fancy jargon. Peter Robinson, Editor "San Francisco Books and Travel."

At some point in your career either in an organization or as an external consultant you are likely to be handed a "golden baton" and asked to facilitate or create change within the corporate culture. On one hand you may be delighted that the organization has seen the value in this sort of initiative and recognizes the need. On another hand you may be aware of the task at hand and wonder, "Does this organization really understand what it is asking for. Is it truly ready to make the necessary changes to create this `said' desired outcome." If in fact you accept at this endeavor, ( and I choose this word lightly-as many are not asked but assigned to the undertaking) I recommend you read two useful resources. The first you are probably already familiar with, John Kotter's Leading Change; the second I will be sharing with you here, Barry Phegan's Developing Your Company Culture-The Joy of Leadership.

John Kotter's Leading Change is very useful as a pragmatic guide to the strategic steps necessary in creating change. Strategy, alone, cannot ensure cultural change. What Phegan does is put strategy in the context of what he calls the "Five Levels of Evolution, Culture, and Leadership." According to Phegan, there are five areas in organizational culture that require balance: physics, life, competition, language, and experience. In most companies the organizational cultures are strong in some areas, weak in others. In order to align a "cultural change" strategy in a way to create meaningful change, there must be leadership to balance out these areas.

5. Experience-feelings, trust, fear, caring, values, involvement, satisfaction There is always experience, but in most organizations the quality of it is poor. You cannot get to this directly, only through actions at level 4.

4. Language-communications, listening, meaning, understanding, relationships, teamwork, consensus, win-win This is the thinnest area in most organizational cultures. Communications, understanding, relationships, and teamwork are usually weak. +

3. Competition-economics, authority, control, politics, win-lose, rules, information, productivity, profits, decisions Although not always discussed, openly, this level is overemphasized in most organizational cultures.

2. Life-systems and processes, biology, operational procedures and methods, training, software, efficiency Operating systems are often poorly developed. There is usually plenty of room for process improvements. *

1. Physics-chemistry, equipment, hardware, engineering, technology In most organizations, this level is fine. It is easier to talk about equipment than the more productive areas of processes (2), or communications (4). The table below (page 53 of text) points to the fact that the largest opportunity to develop changes in the work culture lies in language-which has been broken down into communications, listening, meaning, understanding-basically relationship building. The next largest opportunity lies in tackling problems in processes and procedures.

While I am sure that this makes intuitive sense to you, the task becomes how to document and put together a means to actively measure the actions you are taking and how they affect the bottom line or the goals and objectives by which you are to be measured while leading this imitative. Phegan does not offer any solution to that dilemma. What he does, however, is offer a template to improve the areas that need the attention. The most effective strategy that Barry Phegan advocates is the use of an informal interview. He provides a template for an interview format that will allow organizational leaders to get clearer understanding of the framework of the organizations employees. It is from these "non-agenda-conversations"-not "fireside chats" relationships are built, the "true" picture of the existing culture can be drawn, and human beings can feel individual and valuable. This is where he claims you get the biggest return on your cultural change investment.

The book is full of information regarding group dynamics, the art of negotiating, and skillful tips to managers. What is somewhat discouraging is that after several pages of information, guidance, and helpful hints, he ends his book with a section called Reflections where he points out that "work cultures are very stable. Sometimes they would rather die than change." He outlines why managers resist employee involvement in cultural change initiatives. Perhaps the knowledge of why there is resistance is helpful, but he does not offer any solutions to this aspect of human management nature. He even encourages external consultants to work in teams, "culture consultants should always work as a team. Work cultures are simply too seductive."

As you go forward with the task at hand to lead or create cultural change, don't get discouraged. Remember, each positive conversation, change, meeting does have a ripple effect. Phegan encourages you as a cultural leader to look for "pockets of readiness" and to encourage them. Work and gain momentum with those who "get it" and allow the change to evolve over time. It cannot be forced.

Clearly, no one wants to work in a company that has no or no positive company culture. Employees want to identify themselves with the culture of the company they work for. For years researchers preach that empowered and engaged employees are happier and more productive employees.

"Developing Your Company Culture" is a book that shows you how to achieve this and how to increase the morale among your staff. As culture is a very qualitative term and is influenced by many factors such as the leadership style, communication methods, incentives etc. it becomes quite hard to measure or to grasp it. Company culture is something that emerges and can be influenced and controlled at the same time. Phegan provides several guiding principles how to control culture and how to steer it into the right direction. Focusing on an increase in morale and motivation this guide tells the leaders of today's companies how to achieve lasting positive change regarding their culture. A great guide for everyone, who wants to achieve true organizational change.

- Frank Roettgers, author of Going Green Together - How to Align Employees with Green Strategies