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For the CEO
In a business world that is changing at an exponential rate, organizational culture has become a fundamental pillar for sustaining growth and innovation within companies. Many times in my career I've been asked if the culture should change and if this wouldn't have an impact on the essence of the company. So I decided to bring some of my experience to share when, exactly, is the right time for a company to revisit and possibly reformulate its culture.
The big indicator of the right time is when your business is undergoing significant strategic changes and the current culture no longer serves this new strategy. Most of the time, there's no mistake.
Below are some examples of what we might call strategic changes that should go hand in hand with a possible culture overhaul:
Whenwe notice that actions and behaviors within the organization no longer reflect the established values, mission and vision. This is a clear sign that the culture needs to be revisited. Culture should be a living reflection of these principles, guiding decisions and actions.
The market is always evolving, and companies need to adapt in order to survive and thrive. Significant changes in a company's industry, such as new technologies or changes in consumer behavior, can require cultural adaptation in order to remain relevant and competitive.
Aculture that is unattractive or does not offer a favorable working environment can result in difficulties in attracting and retaining talent. The best professionals look for organizations that have a more coherent culture between discourse and reality, a clear and challenging purpose and a good alignment between corporate values and personal values.
Low levels of employee engagement and a drop in productivity are indicators that the culture may be misaligned and disconnected from the company's reality. A strong, positive culture motivates staff, boosts productivity and fosters innovation.
M&A processes are critical moments for corporate culture, as they involve the integration of different cultures. In this scenario, I often say that it is not the culture of one company or the other that remains, but a third culture emerges to unify the two.
Culture lives within sensitive elements, rites, values, discourses, processes and visual elements. Start with a cultural diagnosis to understand the prevailing perceptions, behaviours and attitudes in the organization. Tools such as surveys, interviews and focus groups can be very useful. However, don't underestimate "coffee shop" conversations. The way people are behaving, what your employees value most. A good diagnosis includes quantitative and qualitative data and a good dose of observation. The most important thing here is active listening. Creating a space where people feel comfortable to speak their minds without judgment as to right or wrong.
Based on the diagnosis, reaffirm the values that remain relevant or define new values that are in line with the company's strategic direction. The communication of values and the desired culture must be clear, consistent and continuous. A cultural change doesn't happen overnight, it doesn't please everyone and it requires a lot of persistence from the leadership to set the company's new modus operandis by example.
Never underestimate the importance of training leadership and employees so that they can live the company's values on a daily basis. Workshops, training and moments of collective reflection are essential, as is the creation of rites and rituals that endorse this new moment for the company. The important factor here is: be intentional. Rites and rituals that connect with values have the function of reinforcing what your company believes in. Eliminate what no longer makes sense.
Culture is dynamic and must be constantly assessed and adjusted as the company evolves. Create feedback mechanisms that allow you to monitor the health of the organizational culture and make adjustments when necessary.
In short, organizational culture is not something that is defined once and remains unchanged. It is a living organism that breathes together with the company, its employees and the market. Constant attention to culture is what sets successful companies apart, because it defines the way we work.
Co-founder of Chiefs.Group. More than 15 years' experience in Human Resources. She has a degree in Psychology from PUC-MG, a postgraduate degree in People Management from FGV and completed her Executive Program at Stanford. Experience in companies such as Ambev, Sinch and Movile, where she played a leading role in the creation of two unicorns in Brazil. Extensive experience in building and maintaining strong organizational cultures with a focus on high performance. Expertise in M&A, Management Models, Change and Organizational Design. Advisor to national and multinational publicly traded companies.
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