CULTURE TRANSFORMATION

AN EXECUTIVE VIEW BY PHIL GELDART

CEO, EAGLE’S FLIGHT

ABOUT EAGLE’S FLIGHT

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companies to provide them with consistent training messages and methods around the world.

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Culture Transformation An Executive View, by Phil Geldart, CEO, Eagle’s Flight

Powerful, Yet Difficult

Culture Transformation is powerful once achieved, and yet difficult to achieve.

It’s powerful because, if done effectively, it results in the whole organization being

aligned around a common direction, with a common language, and clearly defined

standards. As a result, much of the typical waste evaporates. There is less wasted effort

and energy, fewer wasted resources, and far fewer wasted opportunities.

It’s difficult to achieve for two distinct reasons. Firstly, it must be leader led, and reflect

organizational will to stay the course until the transformation is achieved. Secondly,

once under way successfully there is a natural human tendency towards “chasing the next

fat rabbit.” As a result the required effort is not sustained long enough for the Culture

Transformation to take root, and bear fruit.

The Difference Between Culture, Mission and Values

Organizations begin with a Mission, or Vision. These terms are often used

interchangeably, which is fine. Essentially the mission, or vision, states the organization's

reason for being. It is a summary which clearly captures the "charter" under which the

leadership of the company operates; it's a statement of the "why" the organization exists.

The culture of a company is how the organization brings that mission to life.

Culture is the sum total of all the behaviors of the individuals working within that

organization. It reflects how they solve problems, how they interact with each other, and

how they simply get things done. The operative word here is "how". A culture defines

what I'd feel if I joined that organization and had to work there. The things people do (the

"how's") create in me a sense of "how I feel things are done here".

Culture is sometimes easy to articulate ("here everyone works long hours"), and

sometimes not so easy ("here we just seem to rely a lot on one another"). Either way,

those working in that environment get a "feel" for how things are done. They may like it,

or not; but either way, they are clear on what it is, and can describe it in some fashion.

Values, on the other hand, often provide the basis on which a culture is built. The "value"

of "everyone is important" drives an empowering culture. The "value" of "trust

experienced leadership above all" drives a more hierarchical culture. The "value" of

"integrity" will drive an accountable culture; the value of "respect for individuals' worth"

will drive a culture of greater freedom of action.

Clearly an organization's culture is far more complex than just one or two principles,

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driven by one or two values. Rather it is the sum total of many factors, all in varying

degrees. The key thing, though, is to distinguish between mission, culture and values.

They are different, but mutually dependent, and yet all facets of an organization's

identity,

Mission sets the direction, culture describes how the mission is achieved, and values

define what that culture will be.

When the focus becomes the transformation of a culture, it's important to consider each

of these aspects of the organization, and the relative weight of each; and then from that

perspective determine how best, and what, to alter in order to ensure the newly

transformed culture is what's wanted, sustainable, and carrying no unforeseen

consequences.

The Hourglass Analogy

Every organization has a culture. Sometimes it’s well defined, promoted, and celebrated.

Sometimes it has just evolved, unintentionally, over time; and sometimes it’s the result of

an amalgamation of several different cultures.

Whatever the situation, a “Culture Transformation” begins with something. It is

transforming from one culture to another; or it may only be transforming a small

component of a larger culture.

For example, an organization may have a strong culture in every area except “customer

service.” They wish to keep the current culture, but transform around customer

centricity. In this case the “transformation” is not of the entire culture, but only of one

aspect. Regardless, to transform is to move from one set of behaviors, to another.

This is like an initially stable hourglass, with each grain of sand nestled peacefully in the

bottom half of the hourglass. A Culture Transformation turns the hourglass upside down,

and the sand must react. Employees affected by a Culture Transformation are like those

grains of sand.

Some – the early adopters – move quickly to the bottom, embrace the change, and move

on; others cling to the sides, much slower to move, but ultimately get there. Lastly,

some, usually those who feel the transformation affects them least – they’re further away

from it – are the last to participate.

A successful Culture Transformation seeks to widen the neck of the hourglass as quickly

as possible and to as large a degree as possible.

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The 3 Non-Negotiables of Culture Transformation

1. Executive Leadership must be seen to be leading it

2. A clear line of sight to the foreseen benefit must remain top of mind.

3. What to stop, start, and continue doing, must be clear for everyone at the

individual level.

The 3 Pitfalls to avoid when Implementing a Culture Transformation

1. It being seen as a “program” rather than a “DNA exchange” will cause it to fail.

2. Failing to include everyone, including unions if they exist, will send the message that it’s

only temporary, and not here to stay.

3. Lacking the will to stay the course, and keeping it a priority, until the

transformation is complete, will not give it time to truly take root, and so not be

truly permanent.

Guaranteeing Success

Consequently, for a Culture Transformation to achieve optimal success a number of

components are crucial.

1. Leadership by Example

This leadership must occur at every level, from the front line to the corner office.

The nature of this leadership must be such that all employees can confidently say

their own leaders are walking the talk of the new culture, are there to coach and

help, and demonstrate that the behaviors of the new culture are not optional.

2. Clarity on Behavior

It’s one thing to know what the new culture looks like, but it’s quite another to

know, in very practical terms, how it should affect day to day priorities,

decisions, and relationships. This needs to be clearly spelled out for each

function, and then supported by line management.

3. Capture Hearts as well as Minds and Skills

People learn by doing. People engage when vision is caught, not just taught.

People move best when there is a desire, or passion, to change; only then do they

truly look to embrace the facts or the skills of the new way.

Consequently, each Culture Transformation must include as a component an

approach that engages people’s hearts, not just their will. Done well, this ensures

the transformation will in fact occur, then be sustained in the near term, and

ultimately retained over the long term.

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4. An Experienced Partner

Given the many components affecting a successful Culture Transformation,

and the need to do so within the additional priorities of day to day urgencies, an

Experienced Partner can be very helpful.

This Partner is typically an organization who’s successfully partnered numerous

times with other organizations, and who can bring the necessary disciplines to

bear. Included in this must be the methodology to capture hearts, the skill to

engage the intellect, and the tools to teach the new behaviors…and clarity to do

this through company leaders, already busy.

20 frequently asked Questions…and the Answers

1. Q: How long does it take?

A: Two to four years. Two years if it’s a transformation within a culture (e.g.

Innovation); four if it’s organizational (e.g. Accountability and Compliance).

2. Q: What does it cost?

A: Hard costs: usually an average of $2 million, depending on population size,

geography, and what needs to be changed. Soft costs: an average of ½ day per

month per employee.

3. Q: Should we be in a hurry?

A: No. It takes time to change behavior, which is what a culture transformation

requires. New skills (e.g. process improvement) can be learned quickly, but

behavior change is much longer because it needs to be applied effectively in

many different situations before it becomes the norm.

4. Q: How much of this should be led by senior people?

A: Without senior people being seen front and center, clearly owning the

transformation, it will not take hold. Within a division, it must be the leader

of that division, within a company, the leader of the company and the

executive team.

5. Q: How involved should HR be?

A: HR can coordinate, interface with an outside expert like Eagle’s Flight

brought in to help, and take a pivotal “back room” role, but must not be seen

to lead it. It must be led by line management.

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6. Q: How fast will it take effect?

A: The first results are usually seen within two to four months of launch, if done

properly. There are always the “early adopters". From there, the rest of the

population will come on board, so at the end of one year some good

momentum should be seen.

7. Q: What do I do with people who don’t buy into it?

A: Give them time. Not everyone learns, adapts, or applies at the same pace. If,

after 18 months or so they still show clear resistance (vs. just a slow “get it”

factor) they should be asked to leave. They need to find an organization with

a culture they can fully support.

8. Q: Do I tie it to compensation and performance appraisal?

A: Some aspects of culture transformation will have either discrete measurable,

or assessable, components (e.g. enhanced leadership competencies). These

could, and should be linked to performance management. Similarly the

recruitment and succession planning decisions should reflect the behaviors

expected from the culture transformation.

9. Q: Should I involve customers? Suppliers?

A: Absolutely. They will be affected (presumably positively!) by it, and would

probably greatly appreciate being included. By so doing, they may also be

able to contribute to its success, as well as gain some valuable insights for

their own organization.

10. Q: How does it impact new hires and the onboarding process?

A: For new hires, this is not a “culture transformation”, but the “cultural reality”.

The more clearly they can understand the desired behavior, the faster they will

model and demonstrate it. They can often add immediately and effectively to

the group that “get it”.

11. Q: Who measures the impact?

A: The culture transformation should ultimately improve shareholder value, either

directly (e.g. focus on safety) or indirectly (e.g. focus on customers). As such

that portion is measured by the CFO. The more behavior focused aspects

should be measured by HR.

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12. Q: Should I measure the impact?

A: Without doubt the impact of the culture transformation efforts should be

measured. Doing so provides a yardstick to track progress, creates a winning

spirit as progress is made, and provides an excellent basis for a Recognition

program.

13. Q: What relative priority should it receive?

A: Any activity or initiative must be prioritized based on the impact that will be

felt once it’s completed. Culture transformation is judged the same way – the

priority it receives should be directly proportional to the foreseen impact an

effective transformation will have on the business.

14. Q: Should everyone be involved?

A: A company, or division, culture is the sum total of behaviors demonstrated by

the individuals within that organization. If true culture transformation is to

occur then every single individual must be included, involved, and expected to

learn, and then grow into the new cultural norm.

15. Q: Does the CEO have to buy in?

A: The CEO as the leader of the company should be clearly seen to be a

champion of this transformation, if it’s company-wide; and strongly

supportive if it’s divisional. The body follows the head, so if the “head” has

not fully “bought in” this will become apparent, and significantly weaken any

transformation efforts.

16. Q: Is it worth doing?

A: If the outcome (e.g. dramatically improved customer centricity) is crucial to a

corporate strategic priority, it’s very definitely worth doing. This foreseen

impact must be kept top of mind, as the effort required for true culture

transformation is substantial, and often demanding over a considerable period

of time.

17. Q: When is the best time to start?

A: As soon as the need is recognized, the first steps should be undertaken. It’s

often felt that something else “needs to be finished, or done, before we begin”.

There is never an “easy” time to start, and since it’s a cultural shift being

made, it will positively influence any ongoing initiatives, so the earlier that

benefit is realized, the better.

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18. Q: Is there a finish line?

A: Absolutely. Once the transformation has occurred (2-4 years), then it’s done,

and the new culture is in place. The true test of any transformation is “Will

the new behaviors remain after the senior champions of the transformation

have moved on?” If yes, then the finish line has been crossed.

19. Q: Will it be painful?

A: If done right, any culture transformation will be embraced by the vast

majority of employees. It will lead to a more fulfilling work environment, and

improved shareholder value. Change is always challenging, but need not be

“painful” if done properly. It should be rewarding.

20. Q: Will everybody ultimately get here?

A: There is typically a very small number who will not ever get there, for various

reasons. They should be encouraged to leave to find a culture which matches

their needs. However, the rest will, ultimately, get there. Like a just turned

hourglass – some grains of sand will fall sooner than others; but eventually it

all slides down.

A quick “Quiz,” and my Suggested Answers

1. In your opinion, whose role is most important in an enterprise wide culture

transformation initiative?

1. CEO and Executive Team…The body follows the head.

2. Senior Management immediately below Executive level

3. Middle Management

4. Front Line Leaders

2. In your opinion, who has the greatest influence in the culture transformation

initiative?

1. CEO and Executive Team

2. Senior Management immediately below Executive level

3. Middle Management

4. Front Line Leaders…To the majority of employees this is the level

where leadership in action is really seen.

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3. As the culture transformation begins to be implemented, regular “pulse checks”

on progress are important. Whose input on progress is most important?

1. Customers

2. Employee Population…Each individual contributes to a

company’s culture so the combined impact and attitude of that

group determines what the culture really is. “Customers” is often

a frequent response, but actually customers are the beneficiaries

of a culture, rather than the authors.

3. Shareholders

4. Executive Management

5. Company Leaders

4. Which aspect of the culture transformation communication package is most

crucial to get right?

1. What it means to each person

2. What’s coming next

3. Why we’re doing this…Personal conviction is the most powerful

influence on behaviors change; so the “why” is more important

that the “what”.

4. Progress made along the journey

5. Which component to implementing a sustained culture transformation do you feel

is the most essential?

1. Top down leadership, consistently demonstrated

2. Widespread training showing what to stop, start, and continue

doing

3. Equipping all line managers with the skills to lead the

transformation at every level

4. Gaining and maintaining employee conviction for the foreseen

benefit of a successful transformation…All of these are important

but this level of conviction will ensure the transformation

remains for years to come.

5. A measurement and communication strategy that shares progress

and celebrates success

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A Summary of the Top 10 Specific Steps Required for Successful Culture

Transformation

1. Engage Executive Management

2. Involve every line manager

3. Monitor progress frequently

4. Regularly reinforce the anticipated benefit

5. Provide specific training on what to stop, start, and continue

6. Build conviction, no just skill and knowledge, around the transformation

7. Celebrate success

8. Maintain the focus and intensity for 2 to 3 years

9. Include every employee, including any unionized groups

10. Ensure HR practices are integrated and aligned

The Result

A Culture Transformation carefully thought out, with a clear goal or vision in

mind, and one that accelerates performance, not disrupt it, can bring great value to

the organization. However, it takes time. Usually a Culture Transformation is a

two to four year process, depending on the desired outcome.

Hence, patience, organizational will, clarity, and an experienced partner all need

to be in place before beginning. If done well a Culture Transformation can

harness corporate energy, individuals’ desire to help, and existing leadership

strength; and then leverage these to accelerate organizational performance, and

customer benefit.

™ and © Eagle’s Flight Creative Training Excellence Inc. Not to be copied without written permission. 1013

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