Organizational Culture: When a Pause and Reset are Needed

As I scroll through the myriad of LinkedIn posts that populate my feed each day, I can't help but notice a discernible shift in emphasis toward organizational culture compared to a decade or two ago. It's becoming increasingly apparent that consultants and leaders alike recognize the pivotal role culture plays in shaping the success or failure of an organization.

One thing that stands out to me is the pressing need for leadership development in every organization. Even if managers, supervisors, and executives have completed formal business academic programs, they often lack the essential leadership traits and, in some regrettable instances, the requisite leadership character to ensure that the professed culture permeates and thrives in every corner of the organization.

The character of leaders forms the cornerstone of an organization's culture. Many toxic work environments can be traced back to leaders who lack a deep and solid personal character. Character, as defined by the Oxford Dictionary, encompasses the mental and moral qualities distinctive to an individual. Culture manifests through people's behaviors, which are driven by underlying principles or beliefs. When leaders firmly believe that their character serves as the foundation of higher principles and should reflect a common ground throughout the organization, they set the tone for a healthy culture.

But, there comes a moment in the life of every organization when they confront a stark realization: the culture they've been striving to cultivate is not manifesting as intended. This is often because cementing a shared cultural blueprint across an organization can be challenging due to the diversity among individuals, among many other factors. It's a pivotal moment when leadership comes to terms with the fact that while some strategies have yielded results, many others have fallen short. It's a moment of reckoning when they observe pockets within the organization—whether they be individuals, units, or departments—where the cultural principles they hold dear are evidently absent. Conversely, they may also encounter instances where behaviors contradict the core cultural values the organization professes to uphold.

So, this marks a crucial moment to pause and reset.

Here are some insights into what that pause and reset could entail for the leadership team:

1. Stay current
   Articulating your current organization's cultural identity is essential. Your organization may have undergone changes. Perhaps new leadership has joined, bringing with them new principles to live by. External factors contributing to internal shifts may have propelled the organization in different directions. These are important considerations to reflect upon. Leadership teams can engage in discussions to assess how the organization's core values and principles have evolved. It may be discovered that there are other essential components that need incorporation.

2. Go Beyond Values
   While overarching statements hold power, they are insufficient. Sometimes, values alone are not enough. We must explore how they manifest in all our interactions, decisions, and actions. Just as in love relationships, where love is vital but requires many more elements to thrive, organizational culture operates similarly. Values are crucial, but they require much more. In the resetting efforts, leadership teams reflect on the gap between who they are as an organization and who they aspire to be.

3. Accountability with Empathy
   Holding individuals accountable for actions that harm organizational health should be approached with empathy. Some may perceive empathy and accountability as mutually exclusive, but I disagree. It's possible to hold people accountable while seeking to understand their motivations. Crucial conversations should address behavior that undermines organizational culture and well-being. These conversations should also reflect our deeply held values regarding how people should be treated and how relationships are cultivated within our culture.

4. Tackle Toxic Behavior
   During a recent presentation at a hospital's association convention on toxic cultures, an attendee raised a common concern: how to hold someone accountable when they possess specialized skills crucial to the organization. While replacing such individuals presents challenges, addressing the root causes of toxic behavior and reinforcing organizational leadership principles is essential. These key leaders need a reality check: their behavior is damaging to others, the organization, and themselves. They must understand that their leadership character is as much a job requirement as their technical expertise. Sometimes, the best person to communicate this in a safe way is a mentor—someone that the leader who demonstrates the toxic behavior regard or respect. Creating mentoring and coaching programs with internal colleagues could be a viable way.

5. Go Beyond the Individual
   It's crucial to look beyond individual behaviors when addressing cultural issues such as dysfunctional relationships, underperformance, or tolerance for mediocrity. Returning to the fundamentals—defining the organization's aspirations and values—can be immensely beneficial. Rather than simply correcting behaviors, organizations should aim to shift mindsets and persuade leaders to embody the traits that contribute to a positive workplace culture. This is where leadership development programs can reinforce mindset shifts with accountability exercises. Keep these discussions in small groups and choose a strong facilitator who can show respect and manage oppositional or defensive behaviors in a healthy and productive way. At the conclusion of each session, provide actionable steps for both the leader and the team, with support for implementation. The most effective way to facilitate leaders' transformation is by reinforcing actions that foster trust, accountability, and changes in interaction dynamics within the team. This approach may lead to more noticeable individual transformations.

In essence, navigating the complexities of organizational culture requires a willingness to adapt. Leaders must recognize that culture is not stagnant; it evolves over time due to various internal and external factors. However, it's crucial to recognize if it is evolving in negative, unintended ways. Therefore, leaders must pause and reset by redefining their organization’s cultural identity, going beyond mere values to understand how they manifest in daily interactions. Accountability must be paired with empathy, and toxic behaviors must be addressed head-on, even when it's uncomfortable. By reinforcing actionable transformations within the leadership team, its ripple effect on the overall organizational culture may be observed.

Are you a leader recognizing the importance of pausing and reflecting to reshape your organizational culture? Let's collaborate and explore strategies to guide your culture to where you envision it. Reach out today, and let's start the conversation on how we can support your journey towards a thriving organizational culture.

Revised April 2024

Written by Annie-Mariel Arroyo, PH.D

Dr. Annie-Mariel Arroyo-Calixto is a practiced organizational psychologist with more than 28 years of professional experience in organizational change and leadership development. Dr. Arroyo is the founder of Culture To Fit, where for the past 22 years, she has helped leaders build or reshape their organizational culture and lead transformation. She is a seasoned leadership educator and a renowned executive coach known for her ability to guide leaders in gaining deeper insights and self-growth.