Your workforce hates change. How can you prepare for the future?

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November 19, 2024
November 19, 2024
Your Workforce Hates Change Hero

This article was originally published on HRexecutive.com.

It’s that time of year when companies spend a great deal of time strategically planning for the future. Unfortunately, each year, this proves to be a tough endeavor because the only thing predictable about the future is that it is unpredictable. And lately, it seems to be changing at a pace previously never seen.

Leaders of high-performance organizations understand there is one thing that gives them an edge in unpredictable times—their culture.

I know what some of you are thinking: The benefits of a great culture are hardly a mystery. In fact, they have been explored and researched many times in the past … what’s different now? While many companies have worked to improve their cultures over the years, the pandemic changed some of the dynamics. The explosion of hybrid and distributed teams has created work environments that are much less dependent on physical location or formal structure. Culture has increasingly become difficult to control, and organizations with weaker cultures—and disappointing financial results—have suffered. In fact, we recently uncovered that 52% of respondents from low-performance organizations said their cultures have become somewhat to much worse over the last two years.

Conversely, over those same two years, strong cultures have thrived. In our latest study, The Future-Ready Culture, those from high-performance organizations (as measured by revenue growth, market share, profitability and customer satisfaction) are five times more likely to say they have a very healthy culture.

The importance of agility for a future-ready culture

Low-performance companies hate change. They view change as wearing them down, as overwhelming and—most damaging—as a threat that is potentially destabilizing to their business.

How does your organization perceive change?

How can I tell if my organization hates change?

How do you know if you have a change-averse culture? Well, we tracked the traits of the cultures that were most averse to change and found them to be overly bureaucratic, conflict-avoidant, hierarchical, risk-averse, complacent and consensus-driven. If that sounds like your organization, you likely have some work to do to move from a change-averse to a future-ready culture.

future-ready workforce, i4cpThere are three core principles of future-ready cultures that the research uncovered:

1. Employee-focused

Employee growth, wellbeing and engagement are core to being employee-focused. These cultures grow and engage their workforce by being learning-centered, inclusive, caring and safety-conscious.

2. Mission-driven

North Star clarity on mission and purpose of work creates a non-political, results-focused workforce that is purpose and mission-driven, customer-centric, performance-oriented and quality-focused.

3. Change-ready

Fluidity of mindset and collaboration enables a workforce that embraces change and innovation. As a result, it is creative, collaborative and—most critical to a future-ready culture—agile.

A future-ready culture is a choice. If companies want to have an agile, engaged and prepared workforce, they need to create a culture that is healthy and instills the proven traits of today’s high-performance organizations. As outlined in Culture Renovation®, by following certain steps, organizations have proven they can improve cultural health—and, in doing so, future-proof the workforce.

Kevin Oakes

Kevin is CEO and co-founder of the Institute for Corporate Productivity (i4cp), the world’s leading human capital research firm focusing on people practices that drive high performance. i4cp conducts more research in the field of HR than any other organization on the planet, highlighting next practices that organizations and HR executives should consider adopting.

Kevin is also the author of Culture Renovation®, an Amazon bestseller which debuted as the #1 new release in a dozen Amazon book categories. Drawing on data from one of the largest studies ever conducted on corporate culture, Culture Renovation™ details how high-performance organizations such as Microsoft, T-Mobile, 3M, AbbVie, Mastercard and many more have successfully changed organizational culture.

Kevin is currently on the board of Performitiv, and on the advisory boards of Guild Education and Sanctuary. Kevin was previously on the board of directors of KnowledgeAdvisors, a provider of human capital analytics software, which was purchased by Corporate Executive Board in March of 2014. Kevin was also the Chairman of Jambok, a social learning start-up company which was founded at Sun Microsystems and was purchased by SuccessFactors in March 2011. Additionally, Kevin served on the boards of Workforce Insight and Koru prior to their sales.

Kevin is on the board of Best Buddies Washington and helped establish the first office for Best Buddies in the state in 2019. Best Buddies is a nonprofit organization dedicated to establishing a global volunteer movement that creates opportunities for one-to-one friendships, integrated employment, leadership development, and inclusive living for people with intellectual and developmental disabilities (IDD).

Kevin was previously the Founder and the President of SumTotal Systems (NASDAQ: SUMT) which he helped create in 2003 by merging Click2learn (NASDAQ: CLKS) with Docent (NASDAQ: DCNT). The merger won Frost & Sullivan's Competitive Strategy Award in 2004.

Prior to the formation of SumTotal, Kevin was the Chairman & CEO of Click2learn, which was founded by Paul Allen, co-founder of Microsoft. Kevin helped take Click2learn public and engineered over a dozen acquisitions post-IPO. Prior to joining Click2learn, Kevin was president and founder of Oakes Interactive in Needham, MA. Oakes Interactive was purchased by Click2learn (then called Asymetrix) in 1997, prior to going public a year later.