What Is Company Culture, And How To Change It?

Lawrence Price, Vice President, Organizational Effectiveness & Change ManagementStanley Black & Decker

It was my first day at my new job. It was my first civilian job, and I was excited to start this new chapter in my life. Just three months before, I was in Iraq. And now, I was standing in an expansive corporate headquarters, wearing my new suit. I was anxiously waiting for the New Members Orientation class to start when I noticed an unshaven, shorts-wearing person in sandals approach the door. I watched the security officer, expecting him to turn away this person. I reasoned, from their dress, that they didn’t belong here. However, the person produced a company badge and entered the building. I knew then that I and my navy-blue suit were out of place.

Culture is a funny word. Intuitively, we all know what it means. However, it’s a challenge to communicate concisely. Company culture is simply the informal, mostly undocumented norms that employees pass along to one another. As my personal story illustrates, these norms are often passed along without even a spoken word. 

Culture, therefore, is not what we may sometimes like to think it is. It is not what the executives claim it is. It is not the scripted words in a presentation or an employee handbook. Culture is not even the product of the loudest voices in the room.

Instead, culture is what the collective group says it is, and it is the set of invisible, pervasive norms that we all adhere to signal to others that we “belong” here. That said, company cultures can be changed, and in the current VUCA environment, company cultures often require intentional, deliberate change. However, it takes a unique leader to accomplish this. Research shows six steps leaders and their change agents must navigate to create culture change.

Quick-Wins. The leader exhibits the new behavior and signals the new expected norm to everyone. In this sense, the leader must be willing to be the oddball and establish a different norm. A quick win must accompany this new cultural norm. This quick-win connects the new norm with a positive outcome.

“culture is what the collective group says it is, and it is the set of invisible, pervasive norms that we all adhere to signal to others that we “belong” here.”

Support Followers. The leader will produce early adopters for the new norm when this occurs. These early adopters are often followed because they believe in the leader and not necessarily because they believe in the norm. During this step, the leader must continue to personally demonstrate the new norm but also support and encourage these early adopters as they attempt to follow the leader.

Celebrate Followers Quick-Wins. It may be flattering to the leader that people are following their lead, but it is not sustainable. The leader must help the followers believe in the efficacy of the new norm. The best way to accomplish this is for the followers to have their own positive experiences through their quick wins. 

Connect Followers. At this point, the leader must establish a community of like-minded people. This involves followers coming together and learning to believe in their collective power to effect change. These steps accelerate the number and magnitude of wins from adopting the new norm.

Create New Leaders. At this point, the leader must focus on creating new leaders within the community. The adoption of the new norm accelerates by producing new leaders and starting them on their journey.

Organizational Adoption. At this point, the culture has shifted, and the new norm has been adopted. To solidify the new change, the leaders build shared knowledge, new language, and shared goals around the new behavior.

It’s rare to find a leader that can successfully execute all steps for a team, department, or organization through 6 steps. For example, one person may lead the team through steps 1-3 while their successor completes the journey. 

Cultural change is challenging, but it is doable. Companies that create meaningful change in this intangible space will have a competitive advantage within our current business climate.