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7STEPS

to Change Company Culture

www.ExtremeLeadership.com
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7 Steps to Change Company Culture

There are two sure-fire ways to change an organizations

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culture. One, do nothing. And, two, do anything.
Thats the very nature of a culture its always evolving,
because its a living creature, dynamic in personality and
There are shaped by its shared beliefs, values, experiences, and
circumstances. It can no more stay the same caterpillar.
sure-fire ways Unfortunately, its not always morphing into a butterfly.
Organizations are a collection of people, and people, for
to change an better or worse, dont stay the same. So theres never an
aha moment when an organization can say, Weve finally
organizations made it! We are done with culture. Check that box. Now,
whats next?
culture. No, developing a great culture is like developing a great
relationship it requires constant attention, a never-ending
awareness. Without that care, it stops growing. And when it

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stops growing, it starts dying.
The word culture comes from the same root word as cultivate,
so its helpful to think of it like a garden, with you and other
leaders as the gardeners who tend to it. Will it be filled with
do nothing. flowers that bloom with beauty or will the weeds choke the
life from it?
The famous philosopher Anonymous once noted that, If we

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reap what we sow, most of us should pray for crop failure.
There are plenty of organizations where thats the much-
And, , needed prayer. But not yours. You arent praying for crop
failure. Youre committed to sowing new seeds good seeds

do anything. and cultivating a culture that makes a positive difference


in the lives of your people and in the success of your
organization.

Heres how you can do it

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7 Steps to Change Company Culture

1 Define Your Culture Together

Geoff Colvin, a senior editor for Fortune This must be a collaborative process. One
magazine once described culture as, the way to achieve this is with a short, three-
way people behave from moment to moment question survey: 1. What are your five most
without being told.1 So what is that in your important personal values? What five values
organization and what do you want it to be? does our culture live out the best? What five
When you answer the question of what values do you wish our culture lived out more
is, dont go to your website or employee consistently?
handbook for the answer. Imagine you are a If your employees arent involved in defining
fly on a wall in the breakroom or that you can what your culture is and what you want it to
hear a few employees discussing the culture become, then you cant expect them to be
over adult beverages after work. In other overly involved in bringing it to life. Which
words, whats your real culture, not just your leads us to No. 2
espoused culture? What are the gaps between


what you want to see and whats actually
there?
Frankly, defining a cultures espoused values
is the easy part. We can all come up with
things we value like hard work, collaboration,
honesty, integrity, and the like. Whats more
important is to make sure you can find the
WHAT IF YOU COULD
ORGANIZE A GROUP OF
DIVERSE LIKE-MINDED
PEOPLE AND ENGAGE?

gaps between your real culture and your
espoused culture so you can take steps close
those gaps.

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7 Steps to Change Company Culture

2 Rally Around a Shared Mission

Researchers with Deloitte found that members to get their common viewpoints
mission-driven companies typically are and beliefs about the companys purpose.
first or second in their market segment, have But he also spent time on the road and on
30 percent higher levels of innovation, and the phone with the people who ran the stores.
have 40 percent higher retention levels.2 The He led workshops and he actually worked in
trick is to make the mission actually matter the stores to become more familiar with the
within your culture to make it part of your roles, the employees, and the customers.
organizational personality. He learned, he built trust, he sought input,
Neil Gill made this a priority in 2015 when and ultimately the company created a
he became president and CEO of Dogtopia, cultural message that fit its brand and its
a company that offers daycare, boarding, work. Dogtopia has operating values around
and spas to canines at more than 40 purpose, trust, accountability, enjoying the
locations across North America. Gill, who work, and displaying tenacity. But they share
had more than 30 years of experience in those values as five Dogtopia-isms3 five
retail and franchising with companies like statements expressed the way a dog might
Pizza Hut and Gloria Jeans Coffee, created express them.
a customized cultural personality identity In other words, it not only has shared values,
a non-traditional approach to the mission, it expresses them in ways that fit who they
vision and values. are as a company. That way they arent
He engaged all the stakeholders the chasing their tails so to speak.
support team, the franchisees, and the store

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We dont give ourselves nearly
enough time to reflect.
We dont think we have time
- Steve Farber

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7 Steps to Change Company Culture

3 Design a World that Supports that Vision

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One of the most important questions leaders can ever answer
when it comes to cultivating culture is, What does that look
like?
Lets say your organization values winning. Thats a
good thing, right? Every business needs to win clients, win
of the most business, and win market share. But what does that look like
important questions when lived out in your business?
leaders can ever For some organizations, placing a high value on winning
creates a culture of greed and a culture that devalues people.
answer when it Baylor University, for instance, had a culture of winning in its
comes to cultivating football program, but it lost sight of the importance of people.
It created a culture where leaders turned a blind eye to all
culture is, What sorts of allegations, including charges that women were raped
does that look like? by athletes.4
There are two primary ways to cultivate a culture that fully
aligns with the intent of a great vision: By modeling it and by
supporting it.
Leaders cant force a culture to change, but they can model
the values and behaviors they want to see. If you want people
to work with passion, then make sure everyone sees your
personal enthusiasm for your work and your business. If you
want people to take risks even if they fail from time to time,

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7 Steps to Change Company Culture

then tell people about the times when youve and transparency, which allows individuals
taken risks and failed. If you tell people they to be their authentic selves in service to
should leave the office at 5 and spend time each other and their customers. A cycle of
with their families, then leave at 5 to spend healthy feedback in a safe culture promotes
time with your family. growth. And safe environments lead to risk-
A few years ago, Gateway Care and taking, which is essential to creativity and
Retirement Center in Oregon had a problem innovation.
with its culture that was solved in part by a Do an audit of your formal policies and your
leader modeling the culture he wanted to see. work environment do you have an office
Allen James, the chief administrator of the that feels safe? That fosters creativity? That
post-acute care skilled nursing facility, was promotes connections and collaboration?
that leader. Before things changed, he was How do things like your vacation policy or
seen as distant and uninvolved in the lives of your bonus structure support or subvert your
employees.5 cultural goals?
There was a lot of gossip and tension Also look at your informal routines and
between staff members, one nurse said, rituals to determine how they are affecting
and supervisors were distant and preferred your culture. Ask people whats working,
to have the lower level staff do most of the whats weak, whats producing unintended
work. consequences, and how you make things


better.
When James made changes in his leadership
approach, the culture followed. Turnover rates
dropped, productivity increased, and top
talent began seeking jobs at Gateway rather
than avoiding it.
How did he change? He began leading with
more transparency, spending more time
talking to people, admitting his fears and
challenges, sharing the values he wanted to
live as a leader, and allowing staff members
to hold him accountable.
We just started talking about the different
values, he said, and it just starting growing
HOW DID HE CHANGE?
He began leading with more
transparency, spending more time
talking to people, admitting his

and growing and growing from there. fears and challenges
In addition to modeling values, leaders also
need to put policies and other structures in
place that gird the tenets of the culture you
espouse.
For instance, a safe environment is a
hallmark of healthy cultures. It breeds trust

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7 Steps to Change Company Culture

The only way to


change the world is
to be fully in it
- Steve Farber

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7 Steps to Change Company Culture

4 Value Cultural Fit

Hiring new employees all too often is like a hates his or her job ultimately causes more
bad dating experience. It starts out with lots harm than good.
of promise, because both sides are working Likewise, if employees on the team are
hard to please the other. Then reality sets in destroying the culture because they arent
and you soon find out if the relationship has a fit they dont share the values, they
real staying power. dont buy into the culture then its often
When you are recruiting a high potential best to help them find a great job at some
employee, theres a strong temptation to gloss other organization. This is especially true
over the realities of the culture that might not of cultural serpents, those snakes who
fit with the would-be star. Or an eager would- gossip and actively work against the values
be employee might pretend everything is fine you espouse. These often are the highest
just to get the job. (It wont really matter performers and, thus, the hardest to counsel
once Im in the door, she says.) or fire. But the longer they stay, the more
For instance, many organizations will say they they poison your cultural waters.


value work-life balance and that employees
are free to set their own hours as long as they
get their work done. Sounds great. But the
unspoken reality often includes, You know,
once youve put in 60 hours a week.
The smart play is to be transparent about
When you are recruiting a high
potential employee, theres a strong
temptation to gloss over the realities
of the culture that might not fit
expectations and to value cultural fit even with the would-be star
over talent, because a talented worker who

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7 Steps to Change Company Culture

5 Hold Each Other Accountable

Getting rid of cultural serpents not only like Fred Flintstone sliding down the back of
removes a source of cultural poison, it sends the dinosaur when 5 p.m. rolled around. So
a message to everyone on the team that Myers gathered everyone for a conversation
your espoused values are important and about their shared commitment to high
that theres a sense of accountability. That standards.6
type of accountability is vital even when When we do the right thing on our own, the
the violations of cultural conduct are less freedoms we enjoy as a team expand, he
nefarious. noted. When we abuse what freedoms we
Chris Myers, CEO and co-founder of have, they get reduced.
BodeTree, was a Millennial managing a The conversation wasnt fun, but it worked
workforce largely made up of Millennials. because it was delivered with kindness and
They had a culture of organizational kindness love, and it reinforced his commitment and
that allowed for flexible work hours, but it their commitment to living out their shared

led to a pattern of short work days people values together.


who arrived late but, as he put it, looked

In truth there is no such thing


as a small commitment

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Accountability has become that
thing that people desperately
want other people to take
- Steve Farber

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7 Steps to Change Company Culture

6 Recognize and Reward the Behaviors you Desire

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On the other hand, most organizations also have cultural
champions who infuse energy for the culture youre
cultivating. If youve done a good job of aligning your
organizations mission, vision and values to those of your
people, more of them will buy in and live it out. And if youre
way to do this is to modeling it yourself, so will the people around you. When
tell stories. Hold they do, its critical to let them and everyone else know
that you noticed.
regular company-wide
Recognition and rewards need to be a way of life, not a one-
meetings and spend time event. Sure, you can celebrate Employee Appreciation
at least a third of your Day. But find ways throughout the year, formal and informal,
to show appreciation for those who are living out the
time sharing stories of espoused culture.
people who are doing One way to do this is to tell stories. Hold regular company-
things the right way wide meetings and spend at least a third of your time sharing
stories of people who are doing things the right way people
who provided great customer service or who did something
outside of their job description because it was the right thing
to do.
Great leaders spend time getting to know the people around
them, so they naturally understand how to show appreciation
in ways that are heartfelt and meaningful.

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7 Steps to Change Company Culture

For instance, Dick Nettell, a former executive Ill remember those words until the day I
with Bank of America, once was the die, Nettell said. There wasnt a dry eye
supervisor of an employee who managed a in the house. It didnt cost a dime, but it
customer service center. He knew she wanted meant the world to her and everyone else who
to become a senior vice president, and she participated.
eventually earned the promotion. So he didnt Nettell knows recognition is essential to
just send her an email with the good news building strong cultures. His philosophy is
he announced it in a way that honored her that if you grab people by the heart, the
and cultivated the culture that he valued. head comes along for the ride. And he
He enlisted the help of her administrative knows theres no good reason for not doing it.
assistant, who tracked down about 25 people People say they dont have the budget or
who had played some part in her success. they arent allowed to do anything in their
During the promotion announcement, all 25 environment, he said. Those are all excuses
were on the speaker phone and each said from people who just arent willing to do the
a few kind words about her for everyone to work to recognize people in a meaningful
hear. way. It doesnt have to cost anything.7

When they got to the final caller, they heard a


hesitant, elderly voice: I just want everyone
out there to know how proud I am of the little
farm girl from North Dakota.
It was her mother.

If you grab people


by the heart, the head
comes along for the ride.

- Dick Nettell

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7 Steps to Change Company Culture

7 Re-evaluate

Remember, this train never arrives at the Theres a cycle to it. A rhythm. Its wonderful,
station. It might make some stops, but the really, but it requires attention and care and
journey to excellence never ends. People some adjustment along the way. But if you
grow. New people come on board to take the keep working at it, keep cultivating your
place of those who have moved up or on. The garden, the organizational results can be
competition changes. The world changes. colorful and spectacular.
And it all plays a role in the culture you are
cultivating.

Note: This report was created with input from Steve Farber, Bryon Stephens, Richard Corder,
Jenna Lynch, Indie Bollman, Jason Gottlieb, Ken Switzer, Tom Nichols, Timothy Johnson, Debra
Lawson, and Stephen Caldwell.

References:

1. How to Build the Perfect Workplace by Geoff Colvin, March 5, 2015, Fortune online edition. (http://fortune.com/2015/03/05/perfect-workplace/)
2. Becoming Irresistible: A New Model for Employee Engagement, by Josh Bersin, Deloitte Review Issue 16, January 26, 2015 (https://dupress.deloitte.com/dup-us-en/deloitte-
review/issue-16/employee-engagement-strategies.html)
3. We love life unconditionally like a dog. We stay loyal to our pack. We chase the absolute highest standards of safety. We play to our full potential. We treat every day like its the
most exciting day ever. (https://www.dogtopia.com/philosophy/)
4. New Baylor lawsuit alleges 52 rapes by football players in 4 years, show em a good time culture by Sarah Mervosh, Dallas News, January 27, 2017 (http://www.dallasnews.
com/news/baylor/2017/01/27/new-baylor-lawsuit-describes-show-em-good-time-culture-cites-52-rapes-football-players-4-years)
5. These Extreme Leadership Qualities are the Gateway to this Healthcare Facilitys Vibrant New Culture, by Steve Farber, September 14, 2016 (https://www.stevefarber.com/
these-extreme-leadership-qualities-are-the-gateway-to-this-healthcare-facilitys-vibrant-new-culture/)
6. Why Are Millennials So Hard To Manage? The Modern Workplace Might Be To Blame by Chris Myers, Forbes.com, July 6, 2016 (https://www.forbes.com/sites/
chrismyers/2016/07/06/why-are-millennials-so-hard-to-manage-the-modern-workplace-might-be-to-blame/#2ef6fef35f95)
7. 4 Creative (and Memorable) Ways to Recognize Your Employees Without Spending a Dime by Steve Farber, Inc.com, February 10, 2017 (http://www.inc.com/steve-farber/the-
grammys-of-personal-recognition-how-to-make-your-folks-feel-like-the-rocksta.html)

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