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How Leadership Affects Culture and Culture Affects Leadership
So much has been written about leadership that there is very little I can really add. Leaders should be storytellers, communicators, holistic, strategic, encouraging, creative, conservative, risk-takers, ethical, competitive, inspirational, and a host of other attributes too numerous to mention. There are 940 books currently available on the subject and I wouldn’t be surprised if there were close to over half a million articles on the subject. It is the bread and butter of every consulting company in the world. With so much thought and insight, why is it still a problem?
The answer lies with culture. The whole purpose of leadership is to create a culture. In a large and well-established organization, it can be difficult for an outsider to implement a new culture. So, does leadership create culture or does culture create leadership? The answer to both questions is yes.
Culture influencing Leadership
“I’ve been here 25 years.” said the director of a large municipality. “I’ve survived 3 City Managers so far and I’ll survive this one.” This is the attitude that many managers face, especially when they are brought in by external organizations to manage or manage large, well-established ones. Negative cultures in particular can undermine positive leadership, as initiatives are actively undermined by managers who have a vested interest in the old culture. Whether through manipulation or complacency, negative cultures can be significant challenges to change.
Negative leadership, however, can have a quick and dramatic effect on a positive culture. WorldCom was a telecommunications leader and a very innovative culture until Bernie Ebbers took over. While squeezing every penny he could from the environment and putting pressure on employees to work harder with less, he was pillaging the company. Turnover soared and within a few years, WorldCom was bankrupt.
Culture as a function of Leadership
Businesses reflect the ethics of the leaders who run them. Bob Page felt like an outsider and had to hide his sexuality. When he built Replacements Ltd., he made sure it would be a place that accepted diversity not only in lifestyle, but in thought and invested in building its community. Anita Roddick founded the Body Shop to show that you can build a green corporation that reflects her commitment to environmental activism. Jim Goodnight’s commitment to work-life balance is part of the culture of SAS, the world’s largest privately held company. Jack Welch’s commitment to being the best created an environment of excellence at General Electric. In each of these cases, the ethics of the leader became a central part of the culture.
Obstacles to cultural change
The real obstacles to culture change are what we call internal obstacles. False ego, fear, complacency and preconceived ideas create a negative environment. When change is introduced, there is resistance, even when the change is positive. People learn different coping mechanisms to avoid change, such as hiding behind procedures, talking about ‘cooler office’ or gossiping and complaining, or actively undermining the initiative. The question then becomes how leadership can have a positive impact on the culture of an organization.
How a leader can influence culture
Whether a leader comes through the organization or is brought in from the outside to change the organization, there are ways that leadership can impact culture.
1. Walk the Talk People watch what you do, not just what you say and the leader’s values, not just what they say, While Enron CEO Kenneth Lay and his management team stole from shareholders, many of his traders laughed how. they were going bankrupt for their heating bills. This is the hardest part of leadership. Having worked with people who have written books on the subject, I can tell you that often their actions do not match their words and the feeling was that a number of people did not respect them. When you say you’re going to do something, you need to follow through and do it.
2. Reward and enforcement are a function of ethics. .
We value what we recognize. How are people rewarded or recognized? For example, if you want collaboration and teamwork and then reward people for “hitting their numbers”, then their energies will be on what they are recognized for. Jim Goodnight from SAS mandates that people only work 37.5 hours a week because they will burn out if they work late and are therefore less productive. If “yes” people are promoted, then the culture will see that conforming is the only way to succeed and you will create a hierarchical culture.
3. Be Passionate
Passion is contagious and people love to be part of it. As they say in the Marine Corp. leadership program, “People will follow you because they have to or because they want to and who do you want with a gun to your back?” When you inspire people to make change, you literally reprogram their brains and they take ownership of ensuring success.
4. Get Networked with the Organization
Many senior leaders are far removed from the front line, which is literally where the tire hits the road. These are the people who ultimately create the culture. Many managers really only interact with their direct reports, which gives them a distorted sense of what is going on. What is really happening on the front lines of the organization? Who are the enablers and resisters in the organization? This is the only advantage of being promoted in the organization – you know people. Of course, problems in the organization may call for new leadership. However, it is important to network in the culture. There is the culture you have and the culture many leaders think they have.
Several years ago, I heard this story from a client. It was regrettable that the organization was getting rid of its smokers because smoking had been prohibited by law throughout the building. “Even if I don’t smoke,” he told me. “I was amazed by what was happening in there. People were really talking without regard to the title because they had one thing in common – an addiction. One day a senior vice president came to me and told me about this guy who was talking to .had a number of very good suggestions as to the labor relations he wanted to implement.He asked me who he was, I looked it up and found out he was part of the custodial staff.
Leaders need to remove the layers around them and build in “smoking room”.
5. Communicate clearly
It may be an obvious statement, but in the absence of clear communication, there is unclear and informal communication, i.e. gossip. Gossip can undermine any change and have a negative impact on the culture. People appreciate honest and direct communication, even when it’s negative. The worst thing is not knowing.
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