Categories
Culture Crafters

Culture Crafters – Turning Around a Toxic Culture: Part 5 – Ongoing Monitoring and Continuous Improvement of Culture

Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture.

In this special five-part podcast series, Sam Silverstein, the most trusted voice in America on accountability, and Tom Fox, the Voice of Compliance, look at the ways a company in the depths of such a situation can plan out and take concrete steps to turn around and rebuild its culture. In this concluding Part 5, we explore the dynamism of culture and why ongoing monitoring and continuous improvement are so critical for a true culture transformation.

Leaders must set a clear vision for a positive culture, emphasizing values such as excellence, safety, and community involvement, and stress the importance of proactive actions to foster a culture of excellence. However, even after assessing a culture, the culture transformation strategy, and the plan’s implementation, the culture transformation must be nurtured through ongoing monitoring and continuous improvement. Leaders must make culture a primary objective, consistently demonstrating core values while advocating for continuous culture monitoring and improvement. Both agree that cultivating a solid culture improves the organization’s bottom line, enhances the quality of products, and contributes to the betterment of communities.

Key Highlights:

  • Continuous Monitoring of Organizational Culture
  • Driving Cultural Change in Mergers Successfully
  • Culture is Dynamic

Resources:

Sam Silverstein

Sam Silverstein on LinkedIn

Sam Silverstein

The Culture Audit™

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Blog

Transforming Culture: Part 5 – Ongoing Monitoring and Continuous Improvement of Culture

Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture. Currently running on the Culture Crafters podcast on the Compliance Podcast Network is a 5–part of podcast series with myself and Sam Silverstein, the most trusted voice in America on accountability. (The Culture Audit™ is the sponsor of this blog post series.)

In this companion, 5-part blog post series, we have looked at how a company in the depths of such a toxic culture can begin to make a comeback by planning and taking concrete steps to turn around and rebuild its culture. In this concluding Part 5, we show why you must not simply stop after implementation but must monitor your culture continuously and work to improve it continuously. It is an ongoing work in progress, and you can always continue working on your corporate culture.

Ongoing monitoring is not something compliance professionals are unaware of or have never heard about. This concept must be used in your culture management strategy as well. You must assess how your culture management strategy is doing continuously. This is one of the power outcomes of The Culture Audit™ (the sponsor of this blog post series). Not only have you created a baseline of where your culture is at any point in time, but through ongoing use of the Culture Audit, you can measure your specific indices of culture on a go-forward or ongoing basis. You can then continually work to update as appropriate. If your organization needs greater trust, you can put further work into this through your speak-up culture.

Creating an organization’s speak-up culture is essential for fostering open communication, transparency, and employee trust. Such a culture encourages individuals to raise concerns, flag potential issues, and contribute to a safer and more accountable work environment. By prioritizing a speak-up culture, companies can proactively address challenges, prevent safety risks, and promote a culture of continuous improvement.

The significance of a speak-up culture must be balanced as a critical factor in ensuring organizational success and psychological safety. Silverstein emphasized the need for employees to feel safe, valued, and empowered to voice their opinions without fear of reprisal. He highlighted the role of trust and psychological safety in enabling individuals to speak up, noting that a culture that supports open communication leads to better decision-making processes and overall performance. The insights shared underscored the pivotal role of a speak-up culture in shaping a positive and proactive organizational environment.

Accountability in leadership is fundamental in setting the tone for organizational culture and fostering a sense of responsibility and integrity among team members. Leaders who demonstrate accountability model desired behaviors and create a culture where individuals take ownership of their actions and outcomes. By holding themselves and others accountable for their commitments and decisions, leaders cultivate a culture of trust, respect, and ethical conduct.

Leadership will always have a transformative impact on organizational dynamics. Emphasizing that accountability is a way of life rather than a mere task demonstrates leaders’ profound influence in shaping the values and norms within their teams. There must be consistency and fairness in holding individuals accountable. Leaders play a pivotal role in setting expectations and driving cultural change. The discussion underscores the critical role of leadership accountability in fostering a culture of integrity and excellence within organizations.

Changing organizational culture is a complex and multifaceted endeavor that requires a deliberate and strategic approach. Organizations seeking to shift their culture must assess the existing norms, values, and behaviors that shape their environment. By identifying areas for improvement and aligning cultural practices with desired outcomes, companies can embark on a journey of cultural transformation that enhances employee engagement, performance, and overall organizational success.

Companies can initiate meaningful change by defining and measuring the current culture, investing in training and education, and holding individuals accountable for upholding cultural values. You must align cultural initiatives with business objectives and ensure that cultural transformation efforts are embedded in every aspect of the organization. Organizations face challenges and opportunities when navigating cultural change, highlighting the critical role of leadership in driving lasting transformation.

The crucial role of leadership in shaping organizational culture provided valuable insights into the steps leaders can take to create a positive and thriving workplace environment. By prioritizing values, fostering open discussions about culture, and making data-driven decisions, organizations can pave the way for long-term success and employee well-being.

Categories
Culture Crafters

Culture Crafters – Turning Around a Toxic Culture: Part 4 – Design and Implementation of a Culture Transformation Strategy

Boeing has recently seen one of the most public meltdowns over corporate culture. In 2024 alone, there have been multiple incidents, allegations, and reports about the company in the public arena. The company is under investigation by numerous governmental agencies. Several news organizations have reported a ‘toxic’ culture at the company, and there are ripples throughout the worldwide aviation industry. In such a situation, the question for any organization is how it thinks about turning around its culture. In this special five-part podcast series, Sam Silverstein, the most trusted voice in America on accountability, and Tom Fox, the Voice of Compliance, look at the ways a company in the depths of such a situation can plan out and take concrete steps to turn around and rebuild its culture. In Part 4, we consider using the results from The Culture Audit™ to design and implement the transformation strategy.

The pivotal role of leadership in constructing and maintaining organizational culture is an intriguing and vital topic. Tom Fox, a strong advocate of taking action to communicate values within an organization, asserts that leaders who genuinely care about their employees and demonstrate this through their actions inspire loyalty and dedication, thereby creating a solid foundation for a positive workplace culture. Similarly, Sam Silverstein emphasizes the role of leadership in fostering a culture that values consistency, trust, and mutual respect. Silverstein posits that leaders who show they are there for their team members in times of need and consistently support them create a positive workplace culture where employees are willing to go the extra mile. Both experts stress that actions speak louder than words and that authentic leadership involves embodying the values of honesty, integrity, and care for others.

Key Highlights:

  • Values-Driven Assessment of Organizational Culture
  • Upholding Values Through Decisive Organizational Actions
  • Cultivating Organizational Culture through Intentional Leadership

Resources:

 Sam Silverstein

Sam Silverstein on LinkedIn

Sam Silverstein

The Culture Audit™

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Blog

Transforming Culture: Part 4 – Culture Transformation Strategy

Boeing is not the first company to find itself amid a massive scandal. You can think of Siemens’ bribery and corruption scandal, the VW emissions-testing scandal, the Wells Fargo fraudulent accounts scandal, or any other myriad of corporate scandals where culture failed and created a toxic culture. The question for any organization in such a situation is how to transform its culture. Currently running on the Culture Crafters podcast on the Compliance Podcast Network is a 5–part of podcast series with myself and Sam Silverstein, the most trusted voice in America on accountability. (The Culture Audit™ is the sponsor of this blog post series.)

In this companion, 5-part blog post series, we look at the ways a company in the depths of such a toxic culture can begin to make a culture comeback by planning out and taking concrete steps to turn around and rebuild its culture. In Part 4, we look at how to take on a culture transformation through the design and implementation of a culture change strategy.

Implementing a culture assessment is vital in assessing the current state of an organization’s culture and identifying areas for improvement. This systematic evaluation provides valuable insights into the underlying values, norms, and behaviors that shape the organizational environment. By conducting a thorough culture assessment, companies can pinpoint specific issues, align organizational values with actions, and develop a strategic roadmap for cultural change.

From there, you can leverage the findings from a culture assessment to tailor your remediations to address the root causes of toxicity and nurture a culture of integrity and excellence. By emphasizing the actionable nature of culture and culture assessment, an organization can make informed decisions and implement targeted strategies to drive positive cultural shifts within their organizations.

The process is similar to managing any other risk. After a culture assessment has revealed the strengths and weaknesses of any organizational culture, it can provide actionable insights on addressing specific issues and lay the foundation for cultural transformation. Whether a culture is by design or default, the culture assessment is a guiding light in formulating strategies to drive positive change. The culture assessment provides information about improvement, so you should assemble your plan. Once you have the strategy in place, you train your employees.

Once you have trained on the new culture strategy, you must implement it. This is where senior management again becomes so essential. A recurring theme for organizations with superior cultures is that actions speak louder than words when shaping workplace culture. It all starts with leaders who must embody the values they expect from their employees. Actions speak louder than words, and when leaders consistently demonstrate the organization’s values, it sets the tone for others to follow suit. Leaders must embody the values they expect from their employees. This role of leadership in spearheading culture transformation includes the profound impact a leader’s actions and behaviors have on shaping the culture within an organization. Leaders can inspire a culture of trust, accountability, and excellence by showcasing genuine engagement with employees and embodying core values.

It also means enforcing accountability and upholding values. This means holding everyone, regardless of their position, accountable for their actions. If a person’s actions supersede the organization’s values, it questions the strength of those values. Actions speak louder than words, and when leaders consistently demonstrate the organization’s values, it sets the tone for others to follow suit.

In a world where workplace culture plays a pivotal role in the success and sustainability of organizations, the need for understanding and transforming culture has never been more critical. This is true whether your organization has sustained a catastrophic culture failure, similar to what we see currently ongoing with Boeing, or has brought on a new acquisition or even a joint venture partner. Upgrading and updating your culture will be critical for any corporation to succeed.

Categories
Culture Crafters

Culture Crafters – Turning Around a Toxic Culture: Part 3 – Assessing Culture

Boeing has recently seen one of the most public meltdowns over corporate culture. In 2024 alone, there have been multiple incidents, allegations, and reports about the company in the public arena. The company is under investigation by numerous governmental agencies. Several news organizations have reported a ‘toxic’ culture at the company, and there are ripples throughout the worldwide aviation industry. In such a situation, the question for any organization is how it thinks about turning around its culture. In this special five-part podcast series, Sam Silverstein, the most trusted voice in America on accountability, and Tom Fox, the Voice of Compliance, look at the ways a company in the depths of such a situation can plan out and take concrete steps to turn around and rebuild its culture. Part 3 is assessing your culture to develop a transformation strategy through The Culture Audit™.

The Culture Audit™ is a powerful tool for assessing an organization’s culture, providing a comprehensive analysis of its values, employee engagement, and accountability. It serves as a diagnostic tool, pinpointing strengths, weaknesses, and areas for improvement. Think of it as a health check-up for your organization, revealing insights into aspects of your workplace culture that may not be immediately apparent. The value of cultural assessments extends beyond regulatory compliance; they empower leaders to foster an environment where ethical decisions are second nature.

Silverstein emphasizes the essence of an action plan based on audit results to bring about desired improvements. Both Fox and Silverstein agree on the value of an external perspective in auditing and enhancing organizational culture. From The Culture Audit™, you can move to strategy design and implementation.

Key Highlights:

  • Culture Evaluation Through Comprehensive Cultural Audit
  • Truthful Insights through Anonymous Culture Assessment
  • Using Data to Design a Culture Transformation Strategy

Resources:

 Sam Silverstein

Sam Silverstein on LinkedIn

Sam Silverstein

The Culture Audit™

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Culture Crafters

Culture Crafters – Turning Around a Toxic Culture: Part 2 – The Role of Leadership in a Culture Transformation

Boeing has recently seen one of the most public meltdowns over corporate culture. In 2024 alone, there have been multiple incidents, allegations, and reports about the company in the public arena. The company is under investigation by numerous governmental agencies. Several news organizations have reported a ‘toxic’ culture at the company, and there are ripples throughout the worldwide aviation industry. In such a situation, the question for any organization is how it thinks about turning around its culture. In this special five-part podcast series, Sam Silverstein, the most trusted voice in America on accountability, and Tom Fox, the Voice of Compliance, look at the ways a company in the depths of such a situation can plan out and take concrete steps to turn around and rebuild its culture. In Part 2, we consider the mandatory role of corporate leadership in a culture transformation.

The role of leadership in cultural transformation within organizations is a topic that holds great relevance in today’s corporate world. Experts like Tom Fox and Sam Silverstein widely agree that the success of an organization’s cultural transformation heavily relies on its leaders. Tom Fox, a renowned expert, opines that everything rises and falls on leadership, emphasizing that senior leaders are vital in setting the direction and maintaining the organization’s culture. His perspective is shaped by the belief in the importance of trust in the culture and the commitment of leaders to protect and defend the culture. Similarly, Sam Silverstein, another leading voice in the field, also believes in the crucial role of leadership in cultural transformation. Silverstein’s viewpoint is that senior leadership sets the tone for the organization’s culture, and their commitment to prioritizing and defending that culture is essential. He argues that genuine commitment to values such as quality, ethics, and valuing people will ultimately drive bottom-line results. Both Fox and Silverstein’s perspectives distinctly underline the importance of leadership in driving cultural transformation.

Key Highlights:

  • Transformative Influence: Senior Leaders Shaping Culture
  • Cultural Transformation by Strategic Board Leadership
  • Leadership Accountability in Fostering Organizational Culture

Resources:

 Sam Silverstein

Sam Silverstein on LinkedIn

Sam Silverstein

The Culture Audit™

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Innovation in Compliance

Innovation in Compliance: Sue Bingham on Fostering Trust and Transparency in Organizational Culture

Innovation comes in many forms, and compliance professionals need to not only be ready for it but also embrace it.

Today, Tom Fox visits Sue Bingham, Founder and Principal of HPWP Group. She helps visionary, courageous leaders create a high-trust culture of adult communication and high expectations that results in attracting and retaining truly great people.

Sue Bingham has a unique perspective on compliance in the workplace, shaped by her vast experience and passion for nurturing positive work environments. Anchored in the principles of trust, value, and respect, she advocates for a shift from the conventional approach to compliance, which often entails a litany of rules, to one that promotes positive assumptions about employees.

Bingham believes that while compliance is crucial for legal requirements and operational changes, it should not be at the expense of treating employees as valuable adults deserving of respect and dignity. Her conviction that a culture of trust and positive assumptions can drive behavioral change at work is reflected in her book “Creating a High-Performance Workplace,” a testament to her commitment to fostering effective leadership and high-performing workplaces.

Key Highlights:

  • Trust-Based Approach for High Performance Culture
  • Fostering Trust and Valuing Employees for Success
  • Developing Commitment and Accountability in the Workplace
  • Balancing Compliance and Commitment in Organizations

Resources:

Sue Bingham on LinkedIn 

HPWP Group

Creating the High Performance Work Place on Amazon.com

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Blog

Macbeth and Culture Transformation

Over the past week, I have been considering Joel Coen’s The Tragedy of Macbeth currently appearing on Apple TV. I have been reviewing the film and exploring my love of all things Shakespeare. Today, to end this series I want to talk about the remarkable performance by Kathryn Hunter as not one but all three of the weird sisters (3 witches) of the play.
In a New Yorker article, entitled “Weird Sisters? Make that the Twisted Sisters”, Henry Alford interviewed the actor and explored her preparation for the role. First a word about her performance which was nothing short of mesmerizing. Hunter contorted her body in the very first sisters’ scene where she prophesizes that Macbeth will become the Thane of Cawdor. It was basically acting with her body in addition to the dialogue. As the camera closes in on her you see not only her contortions but her dramatic voice. Of this scene, Alford wrote, “Hunter’s first scene in the movie has her squatting in the sand (no panty hose), where she alternately squawks, clutches a sailor’s severed thumb in her gnarled toes, and twists her right arm all the way behind her head. Imagine a litigious raven who has done a lot of yoga.”
Equally impressive was Hunter’s preparation for the role, which only lasted a slim few minutes in the entire movie. Alford wrote, “For her “weird sisters” research, Hunter studied people with multiple-personality disorder, and also crows, which are symbols of divination. She also consulted a modern-day witch. “I asked her to give me a simple spell to keep the company safe,” Hunter said. “Denzel told me he believes in the power of prophecy and the power of blessings, so, before going on set, I would do a ritual to keep him and the company safe.””
Finally, in the film, “Hunter also plays the Old Man outside Macbeth’s castle, which suggests that the witches have shape-shifted into an old codger. It’s the Old Man who, referencing first the darkness of the sky and then Duncan’s murder, says, “ ’Tis unnatural / Even like the deed that’s done.” Hunter was quoted by Alford, “It’s amazing that Shakespeare was so concerned with nature. He’s saying, When man is out of kilter, as it were, it’s reflected in nature. How prescient is that?”
I thought about Hunter’s performance and her innovative use of her body to communicate so well in the movie for my final exploration of transforming your compliance program. In a MIT Sloan Review article, entitled “Use Networks to Drive Culture Change”, authors Peter Gray, Rob Cross and Michael Arena posit that culture is difficult to change, “in part because it reflects people’s values — their deeply held beliefs about what is good, desirable, and appropriate. Relationships can complicate matters further. When colleagues are embedded in informal networks with others who share and reinforce their values, they often become entrenched rather than open to new attitudes and behaviors. But it doesn’t have to be like that. Those same networks can also help leaders identify and overcome obstacles to cultural change and discover unexpected allies.” Their approach has some innovations which every Chief Compliance Officer (CCO) should study to help in the culture transformation of your organization.
Deputy Attorney General Lisa Monaco, in her October speech, renewed the Department of Justice’s (DOJ) emphasis on corporate culture stating, “Now, I recognize the resources and the effort it takes to manage a large organization and to put in place the right culture. The Department of Justice has over 115,000 employees across dozens of countries and an operating budget equivalent to that of a Fortune 100 company. So, I know what it means to manage and be accountable for what happens in a complex organization. But corporate culture matters. A corporate culture that fails to hold individuals accountable, or fails to invest in compliance — or worse, that thumbs its nose at compliance — leads to bad results.” Clearly, she is signally a more focused DOJ interest in culture. This means you need to be ready to not only transform your culture but also document the transformation.
There are five steps which I have adapted for the compliance professional.

  1. Unearth the Subcultures. It turns out that culture is created not holistically but by corporate subgroups, which have their own cultures and cultural leaders. CCOs often think about the culture of their area of the organization and take action at that level, which across an organization culture is only partially influenced by holistic structures; it is also shaped and reinforced by subnetworks of employees who may spread across many different units. CCOs need to “see the diversity of values that exist in different cultural subnetworks can take much more precise action to support or change these subcultures.”
  2. Find Your Real Cultural Leaders. Here the key for compliance is that “Informal influencers deep inside the organization are critical — but often hidden — enablers of change. Enlisting their help is far more efficient than taking a top-down approach.” As the CCO you need to identify these real subunit leaders, get their buy in and then enlist them to lead your cultural transformation.
  3. Shine a Light on Hidden Tensions. There are always disagreements throughout an organization which can kill cultural changes, usually through the proverbial death by a thousand cuts. Analyzing network and cultural data can bring these tensions to light so leaders can manage them. A key one can be what the authors called, “toxic misalignments, where cultural influencers with very different values interacted in negative and dysfunctional ways”. Here the role of the CCO is to be a facilitator, to “appeal to a higher shared value can resolve a deadlock, but only after uncovering value misalignment and discovering who sits on which side.”
  4. Evoke Positive Emotions. I hope that you as a CCO have a positive outlook. Most CCOs I know are eternal optimists, even those who come from the General Counsel’s office. While a standard tactic to lead cultural change is rationality; i.e., explain and educate using “compelling logic, in hopes of persuading them to commit to new ways of working” the authors found their “research shows that culture spreads most effectively through network connections that have an emotional aspect.” As a CCO you should bring an energy and excitement level and then start “training first-level supervisors to become more skilled as “energizers.” They learned how to engage people in realistic possibilities that captured their imaginations and hearts, for example, and how to help others see how their efforts contributed to an ambitious plan. Nine months later, new data revealed far greater adoption of the new cultural values among individual contributors.”
  5. Give Adoption the Time It Needs. The authors found that the time to change culture can vary and “leaders may see slow or uneven adoption as new cultural ideas’ failure to spread, when in fact it may be a function of how tacit or complex the values are. And while networks play an important role in speed of adoption, faster isn’t always better.” The bottom line for the CCO is to give it time. But use the tools you have available to assess, monitor and improve your culture transformation program. Mid-course corrections are allowed. The authors concluded, “Combining network analysis with assessments of organizational culture provides leaders with a rich understanding of how new values take root.” This can provide to a CCO a more focused even “local” view of culture, where desired behaviors are communicated, modeled, observed, and adopted on the ground, not broadcast from on high. This in turn allows a CCO to drive cultural transformation in more targeted ways.

I hope you have enjoyed this short series drawing inspiration from Macbeth to discuss transformation of your compliance function as much as I have enjoyed watching the movie, researching the topic and writing about it.