Leadership

Company Culture in an Era of Change

May 10, 2020 | by David March. 

With COVID-19 having created a “new normal” for individuals and businesses alike, the idea of being “healthy” is on everyone’s mind. Now, more than ever, the focus is on staying healthy, staying safe, and adapting rapidly to changing situations.

When we look at being healthy, as a business, what does that look like?

There are many schools of thought on the subject. Google search: “How to have a healthy business,” and you’ll find millions of results.

What it boils down to, really, is the idea that companies are intended to solve problems. The ability to solve problems can be increased by having diverse people working at your organization. Diverse, alert, and engaged people. Employees who care about the overall success of the company.

“Diversity” gets thrown around a lot in the media. I want to be clear about what I mean by “diverse.” I believe that Martin Luther King, Jr. said it best: “I have a dream that…they will not be judged by the color of their skin but by the content of their character.”

The “content of their character” is a very large sum of actions, experiences and other things; it is a collection of cultural differences, dominant mental functions, preferences and dominant archetypical patterns (as Carl Jung would put it) which add up to your temperament and personality.

Having a diverse staff brings all these myriad experiences together and puts them to use for the company on the objectives and projects on which they are working. The more diversity on a team, the more easily they can come up with innovative solutions to problems. As problems are solved and innovations introduced, the company is able to generate additional revenue.

How can companies foster this kind of diversity and innovation?

For many companies, making this kind of change happen requires either an organizational structure change, a culture change, or a change in management and leadership styles. There are certain organizational structures that make it easier for a company’s culture to include diversity and innovation.

Flat hierarchical structures, where there is typically no middle management, can help employees feel a sense of autonomy. Everyone has an equal voice, so creativity and innovation are encouraged, and collaboration is a lot easier to accomplish. All employees have significant responsibilities for project outcomes and the company as a whole. While this type of structure is difficult to scale to a larger organization, it can also help smaller companies be more adaptable in times of change.

In the same vein, flatter hierarchical structures are one step down from a traditional hierarchy. These companies have fewer levels of management and strive to open lines of communication and collaboration. This kind of shift is often easier for larger, more established companies to adopt without as much of a drain on resources or the need to reinvent their entire structure.

Flatarchies, a less well-known type of structure, serve as the mid-point between traditional hierarchies and the flat organizational structure. They incorporate parts of both forms, with the main idea being that teams break out often from the main structure. It can look like a hierarchical structure with flat teams emerging as needed, especially as an innovation program, or a flat structure with hierarchical teams emerging to work on various projects or problems. It can be a great option to temporarily inject your company with the ingredients needed for innovation.

Finally, holacratic structures are not widely discussed, but are the basis for companies like Zappos and Medium. It is a “boss-less” organizational structure that relies on circles (think: departments) for decision-making and allows employees to work to their strengths within the company. Because there are no traditional bosses, this kind of structure allows leaders to emerge naturally.

The Emergent Leader

This idea has been around since the 60’s and there are four main theories surrounding the mechanisms by which leaders can emerge in different situations. It all boils down to a simple idea: when a group gets together, it creates a group identity and then a prototype for the ideal leader. As these expectations emerge, one person will tend to resemble that idea most closely, and the group will naturally begin to follow that person.

The efficacy of this type of leader stems from the natural, almost seamless way that they emerge into the role. They were selected because they were able to communicate their ideas to the group and listened to others’ ideas in return. The common thread in all of this is how vital communication is to innovation and creativity.

Oftentimes, these leaders can become the overarching ideal of leadership. As they arose naturally from within the group, they tend to be the kind of person who waters the seeds in their garden, nurturing them to develop the same leadership qualities they already possess. By knowing the right words, and the actions to back them up, the emergent leader can spark those around them into becoming their greatest selves.

Culture Shift

Sometimes, it’s not enough for companies to change their structure. It isn’t automatic that the culture changes, too. Additionally, the existing culture may clash with the new structure that is put into place. But how can a company go about changing their culture?

Communication is the key. The more you can foster open, two-way communication, the more innovation will thrive. So, too, must leaders be transparent about changes and decisions. The more these things are communicated and shared with employees, the more buy-in you’ll be able to achieve.

A commonality between all the structures discussed earlier is their impact on employee autonomy. When employees feel a sense of responsibility for their work and understand their impact on the company, it allows natural leaders to emerge within their teams and departments.

One of the main principles that we see again and again, especially with the leading tech companies in the market, is the idea that you should make it easy for your employees to want to work for you – they don’t need to work for you. The more you can design and foster a culture that exemplifies that, the more your employees will stay and thrive.

COVID-19’s impact on company structure and culture

Many culture shifts are in play because of the impact of the Coronavirus. As virtual workspaces are necessary, companies have had to figure out how to adapt and allow their employees to thrive despite the changes.

Self-determination theory and work motivation plays a big part in understanding how to make this shift efficient and effective for companies and employees. In 1968, Porter and Lawler first proposed the idea of intrinsic and extrinsic motivation. They “advocated [for] structuring the work environment so that effective performance would lead to both intrinsic and extrinsic rewards, which would in turn produce total job satisfaction.”

Working virtually, by its nature, gives employees a lot more autonomy in their roles. This plays into the intrinsic motivation – by enlarging the scope of their work and their responsibility for it, you enhance their ability to control what they do, when they do it, and who they do it with, otherwise known as the key components of intrinsic motivation.

However, companies must go a step further and work to individualize the work-from-home experience for each employee. Getting to know what motivates your employees allows you to tap into that and coach them more effectively, even from a distance.

Setting clear expectations is the next step for creating a positive work-from-home experience during these times. I’ve said it before in this article and I’ll say it again: communication is key. Expectations are the foundation for good communication, and the earlier they are set, the better. Making sure your employees are clear on what’s expected of them feeds into their sense of autonomy, adding to the interconnected nature of employee motivation.

Communicating more often and more intentionally while things are virtual will help employees feel more connected and at ease. Since we are all quite isolated, that sense of connection is vital. The more you are able to communicate with your employees, even just to chat, the more they will trust your leadership.

Will this shift be permanent?

We won’t all be stuck working from home because of the Coronavirus forever – but it’s possible that this will be the catalyst for increased use of virtual capabilities across many industries.

Gallup came out with some numbers related to virtual work: 43% of employees work remotely some or all of the time, 51% of U.S. employees say they would quit their job for one that offers flextime, and 53% of employees say work-life balance is very important to them.

We’re already trending towards working virtually, and we now know we have the technology to make it almost a seamless transition. It’s entirely possible that the “new normal” will include more virtual workspaces – and they may be the key to creating the culture shift necessary to foster innovation, creativity, and collaboration in existing companies.

Whether this is the case or not, getting ahead of the curve and making sure you’re opening the lines of communication with your employees is the key to success going forward.

To take the next step, schedule a call with me at  https://calendly.com/coachdavemarch

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