Blueprint Action #2: Figure Out What to Keep During a Culture Change
When organizations decide to embark on a culture renovation, the focus is—understandably—on what needs to change. Whether it’s recent poor business performance, a new CEO, an internal scandal, or an acquisition, culture change is usually instigated by an event that signals it is time for something different. Rarely do companies initiate culture change when everything is going well, even though that is probably the best time to consider it. Some of the largest failures in corporate history were by companies that were lulled into complacency by their previous success.
It’s natural to put a great deal of initial energy into the unhealthy cultural traits that need to disappear, be reversed, or remade. If you are considering a culture renovation, one of the first steps is to resist that urge and, instead, focus on what you want to keep.
When considering this, it’s important to not let sentiment get in the way of progress—a common misstep particularly with corporate founders and senior leaders. Instead, focus on what is foundational and will serve the organization well in the future. Last month we discussed the importance of deep listening of the workforce to truly understand the culture; listening not only illuminates what the culture is today, but also helps determine the most positive and valued aspects of the company’s historical culture to carry forward. 57% of organizations that were highly successful in renovating their cultures were very intentional in ensuring that the best of the company’s existing norms was preserved and fundamental values and history were woven into the new culture.
This practice is especially important for an organization that has a long and storied history. One such company is 3M, and their CHRO, Kristen Ludgate, details how the company views this in terms of their ongoing culture renovation efforts.
“For 3M, whenever we needed to recharge the business, we’ve looked at culture as a tool that goes back decades and decades. So, we’re all very excited that other companies now think culture is the thing to do. But that’s something that we would naturally turn to as an organization. We were in a position of strength, but we also knew we could not sit still. You don’t want to wait until you see signs of weakness in your culture to try and change or improve it, especially given the speed of business and how central culture has always been to 3M’s success.”
“We asked ourselves, how do you intentionally renovate your culture?” continued Ludgate. “We knew we had to have a plan to articulate what our aspirational culture is, and then do the hard work of rewiring.”
“As we start to define aspirationally—when we’re at our best and in light of what we want to accomplish—what is core to 3M’s success,” describes Ludgate. “We know it is innovation, but what is unique to 3M and how do we continue advancing 3M’s innovation model? We know everyone has to be agile and our history is one of strong collaboration; how does this strength evolve, what does agility mean at 3M today? You don’t start with a clean sheet of paper. You have a fantastic company that’s been around and achieved great things. So, you start with your strengths and where they line up with your strategies and you want to leverage those. And then we ask: where do you need to stretch? And that’s how we’ve thought about it—strengths and stretches.”
Strengths and stretches. As you contemplate renovating your culture, don’t ignore the strengths…they will typically form the foundation which will allow you to stretch further than most imagined.
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article was originally published on CultureRenovation.com. Visit the website for additional resources, solutions, and information about the bestselling book.
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.