cultural change that sticks

Cultural Change that Sticks: Dr. Dieter Kahling of Henkel on executing and leveraging cultural change for financial performance. Store managers received training in the behaviors, which were also translated into specific tactics, such as ways to greet customers entering the store. The secret is to stop fighting your culture--and to work with and within it, until it evolves in the right direction. ‘Culture change that sticks: start with what’s already working, by Jon R Katzenbach, Ilona Steffen and Caroline Kronley’) The authors of this Review believed that culture change often fails because it’s poorly conceived and executed. Step 2: Engage Your Team. When a major change initiative runs aground, leaders often blame their company's culture for pushing it off course. The stores that have introduced the new behaviors are already beginning to see results, including improved same-store sales in key product areas and fewer customer complaints. Abstract When a major change initiative runs aground, leaders often blame their company's culture for pushing it off course. By the time they get around to culture, they’re convinced that a comprehensive overhaul of the culture is the only way to overcome the company’s resistance to major change. These organizations follow five principles for making the most of their cultures: 1) Match strategy to culture. Culture change is best set against a very clear shared understanding by senior people of the outcomes and objectives of change and what kind of culture will achieve them. Focus on a few critical shifts in behavior. But cultural intervention can and should be an early priority—a way to clarify what your company is capable of, even as you refine your strategy. Change is hard. And how would employees react when they actually saw colleagues doing things differently? It was only as a result of a strong managed-care movement that emerged in the 1980s and 1990s that Aetna had gained a reputation as a stingy, recalcitrant company. Match strategy to culture. We don’t alter our behavior even in the face of overwhelming evidence that we should. Executives may underestimate how much a strategy’s effectiveness depends on cultural alignment. All rights reserved. If it excelled at service, how would people treat customers differently? Many of the problems Aetna faced were attributed to its culture—especially its reverence for the company’s 150-year history. Employees stopped feeling good about their association with it. CulturAl ChAnge thAt StiCkS Google is a good example of a company that makes the most of its informal organization. Aetna’s story (which we have drawn from a draft of an unpublished book by Jon Katzenbach and Roger Bolton, a retired Aetna senior executive) isn’t unique. (For a menu of tools, see the exhibit “Mechanisms for Getting the Most from Your Culture.”) Only a few companies understand how to do this well. Honor the Strengths of Your Existing Culture Use Your Employees Don't be a Hater Back to the Story ... Aetna's pride Chose to highlight existing strengths Be Positive We tend to accentuate the negative traits of our culture. By the time Enron became a key client in the late 1990s and insisted on using only individual accountants and auditors who accepted its questionable practices, the accounting firm’s professional culture had already declined past the point of no return. and pay only $8.50 each, Buy 50 - 499 World renowned for its ability to bring together specialists across a range of medical fields to diagnose and effectively treat the most complex diseases, the clinic promotes unusually high levels of collaboration and teamwork, reinforcing those traits through formal and informal mechanisms. Rowe also made a point of reinforcing a longtime strength that had eroded—employees’ pride in the company. For instance, the New Aetna was specifically designed to reinforce employees commitment to customersreflected in the firms history of res… Say your organization is a former utility or government agency interested in becoming a better service business. When designing cultural metrics, remember that you get what you measure. The Chinese company had big plans to turn itself into a massive global business. Acknowledging the existing culture’s assets will also make major change feel less like a top-down imposition and more like a shared evolution. Are relevant growth targets being reached more frequently? Wholesale change is hard; choose your battles wisely. A senior leader we interviewed there compared the company to universities that plan out paved walkways when they expand their campuses. Unfortunately, it can feel like a millstone when a company is trying to push through a significant change—a merger, for instance, or a turnaround. You can't expect employees to shoulder all the responsibility. Start small first. Harvard Business Publishing is an affiliate of Harvard Business School. The same surveys of employee behavior, in-depth interviews, and observation that you use to diagnose your culture’s weaknesses can also clarify its strengths. The cultural deterioration also made it easier to ignore many warning signs, including the 1973 bankruptcy of Four Seasons Nursing Centers of America, in which the founder pleaded guilty to securities fraud and Andersen, as the auditor, was indicted. In other words, it was the kind of change that Mother Aetna traditionally resisted with every passive-aggressive move she could muster. Cultural inclinations are well entrenched, for good or bad. But this time, without ever describing their efforts as “cultural change,” top management began with a few interventions. So management introduced a simple behavior: asking people who were providing input whether they had ever given the feedback to the person being reviewed. If they look hard enough, most firms will find they already have pockets of people who practice the behaviors they desire. The challenge is that leaders must go far beyond basic tips, keys, or “levers,” like Booz & Co. highlighted in their study, if there is hope for … First observe the behavior prevalent in your organization now, and imagine how people would act if your company were at its best, especially if their behavior supported your business objectives. CULTURE CHANGE THAT STICKS Scott Cook, Intuit Founder and Chairman of the Executive Committee 2018 CEO Summit “In 2007, we kicked off a major initiative called Design for Delight, to basically teach the organization the fundamentals of design thinking. They adjust reporting lines, decision rights, processes, and IT systems at the outset but overlook informal mechanisms, such as networking, communities of interest, ad hoc conversations, and peer interactions. What Aetna’s management didn’t recognize was that you can’t trade your company’s culture in as if it were a used car. In the early 2000s Aetna was struggling mightily on all fronts. Every culture is the product of good intentions and has strengths; put them to use. To boot, the company was losing roughly $1 million a day, thanks to cumbersome processes and enormous overhead, as well as unwise acquisitions. In our experience, most corporate leaders favor formal, rational moves and neglect the informal, more emotional side of the organization. At Aetna, Rowe explicitly sought out informal interactions with employees. An overemphasis on quarterly sales results, for example, can trigger inappropriate pressure on valued customer relationships. Today’s best-performing companies, such as Southwest Airlines, Apple, and the Four Seasons, understand this, say the authors, three consultants from Booz & Company. They don’t clearly connect their desired culture with their strategy and business objectives. If not approached correctly, measurement efforts can quickly become cumbersome, time-consuming, and expensive. “Arthur Andersen, once the world’s most admired auditing and professional services firm, descended through level after level of self-destructive decline to its ultimate death,” he says. Aetna’s business model was under attack going through law-suits and its economy was declining. When, in an off-the-cuff response to a question at a town hall meeting, he highlighted pride as a reason employees should get behind change, he received a spontaneous standing ovation. Add copies before, KEMET: Leading Change across Cultural Boundaries (B), KEMET: Leading Change across Cultural Boundaries (C), KEMET: Leading Change across Cultural Boundaries (A), HBR's 10 Must Reads on Building a Great Culture (with bonus article "How to Build a Culture of Originality" by Adam Grant), Buy 5 - 10 Inspiring new skills and habits. At Aetna a major turning point came during one question-and-answer session, when a longtime employee said, “Dr. What kinds of interactions would be visible in any new offices you opened? Culture trumps strategy every time, no matter how brilliant the plan, so the two need to be in alignment. This emerges with the experiences of a society, traditional culture, organization, super culture or subculture. Culture trumps strategy every time. “We all know that what gets measured gets managed,” Sabapathy said. All rights reserved. These interventions led to small but significant behavioral changes that, in turn, revitalized Aetna’s culture while preserving and championing its strengths. They might include a deep commitment to customer service (which could manifest itself as a reluctance to cut costs) or a predisposition toward innovation (which sometimes leads to “not invented here” syndrome). Cultural Change That Sticks (Harvard Business Review) Audible Audiobook – Unabridged Todd Mundt (Narrator), Jon R. Katzenbach (Author), Ilona Steffen (Author), & See all formats and editions Hide other formats and editions. Contrast such nebulous aspirations with those in an organization in which a few cultural traits truly do match and support the strategy, like the Mayo Clinic. Rigorous measurement allows executives to identify backsliding, correct course where needed, and demonstrate tangible evidence of improvement—which can help to maintain positive momentum over the long haul. So while the plan for change challenged long-held assumptions (among other things, it would require the elimination of 5,000 jobs, with more cuts likely to come), it was embraced by employees. For example, if customer relationships are crucial, do managers update the CRM database on a regular basis? LEADERSHIP Cultural Change That Sticks by Jon R. Katzenbach, Ilona Steffen, and Caroline Kronley FROM THE JULY–AUGUST 2012 ISSUE I n the early 2000s Aetna was struggling mightily on all fronts. Most companies, if they look hard enough, will find that they have pockets of activity where people are already exhibiting the new, desired behaviors every day—just as the “exemplar” store managers did at the retailer. Its operating income recovered from a $300 million loss to a $1.7 billion gain. Written by Jon R. Katzenbach, Ilona Steffen, and Caroline Kronley, Cultural Change that Sticks details the efforts of senior leaders at Aetna and Arthur Andersen who successfully moved their traditional business organizations forward towards more meaningful new realities. Change that Sticks: Evolving Culture through Business Upheaval Panelists Paula Winkler, Carolyn Jacobson, and Steve Arsenault. Begin implementing little changes that fall in line with the stated values and fill the … Too often a company’s strategy, imposed from above, is at odds with the ingrained practices and attitudes of its culture. As a result of this straightforward question, colleagues began to share constructive criticisms with one another more often, resulting in fewer demotivating surprises and a better dialogue about performance. After one colleague complimented another on his performance in a meeting, their team lightheartedly began a practice of handing out “gold star” stickers to recognize colleagues exhibiting strong character and candor. These insights led Rowe to rethink his approach to the company’s turnaround. Why had that concept hit such a nerve? These organizations follow five principles for making the most of their cultures: 1. One early and important networking effort by Rowe was to identify a core group of “key influencers”—potential leaders who could offer invaluable perspectives on the cultural situation, regardless of their level in the hierarchy. The practice soon began to spread. They try to forge ahead by overhauling the culture--a tactic that tends to fizzle, fail, or backfire. At the same time, they surfaced Aetna’s significant cultural strengths: a deep-seated concern about patients, providers, and employers; underlying pride in the history and purpose of the company; widespread respect for peers; and a large group of dedicated professionals. Each new measure, while defensible, made it a little easier to compromise the firm’s values. Happily, it’s also possible for a culture to move in the right direction, as we saw at Aetna. Ask the people in your leadership groups, “If we had the kind of culture we aspire to, in pursuit of the strategy we have chosen, what kinds of new behaviors would be common? That shift was reflected in the business results, as Aetna went from a $300 million loss to a $1.7 billion gain. In … Similarly, focusing on retention metrics as an indication of overall engagement and job satisfaction may not be as useful—or as important—as what happens to retention of top performers once a cultural initiative gets under way. Jon R. Katzenbach is a senior vice president in the New York office of Booz & Company and the leader of the Katzenbach Center, which focuses on the development and application of innovative ideas for organizational culture and change. Conclusion Cannot "change out" old culture for new Focus on key components that need to change Align the culture to the vision 5 Principles for Cultural Change Match Culture with Vision Focus on Critical Shifts in Behavior Honor Strengths of Existing Culture Integrate Aetna had always had a strong record of responding to natural disasters (including the Great Chicago Fire of 1871 and the 1906 San Francisco earthquake). Many times we’ve walked into organizations that presented us with an entire laundry list of hoped-for cultural traits: collaborative, innovative, a meritocracy, risk taking, focused on quality, and more. Culture trumps strategy every time, no matter how brilliant the plan, so the two need to be in alignment. Culture change is change that occurs over time to the shared way of life of a group. In fact, its fall stemmed from a creeping cultural erosion that had begun decades before the Enron debacle. For instance, the New Aetna was specifically designed to reinforce employees’ commitment to customers—reflected in the firm’s history of responding quickly to natural disasters. This last area is usually the slowest to show improvement. You can start a cultural change with organizational changes or strategic changes. And Aetna’s financial performance reflected that. Executives at one financial services firm, for example, conducted a survey to test employees’ readiness to follow a strategy that involved going head-to-head with a new, aggressive set of competitors. He is the coauthor, with Douglas K. Smith, of, Training, leadership, and organizational development programs, Peer-to-peer interactions and storytelling, Engagement of exemplars and motivational leaders, Changes to physical plant, resources, and aesthetics. This time, however, they were in for a surprise. Such companies see culture as a competitive advantage—an accelerator of change, not an impediment. Companies should also use their tracking efforts to remind people of their commitment. These included social visits, ad hoc meetings, impromptu telephone discussions, and e-mail exchanges. The survey revealed a number of serious cultural challenges, including passive-aggressive behavior, inconclusive decision making, and pervasive organizational silos. A few modest interventions might have preserved the firm’s commitment to integrity and avoided a very public and embarrassing demise. Simply put, rather than attacking the heart of your company, you will be making the most of its positive forces as your culture evolves in the right way. AETNA CULTURE – When Aetna merged with U.S. Healthcare lower-cost health care provider, in 1996, a major culture clash ensued – However, instead of adapting to U.S. Healthcare’s more-aggressive ways, the conservative Aetna culture only became more intransigent – Aetna’s leaders could make little headway against it, and one CEO was forced out after failing to change it. 5. Harvard Business Publishing is an affiliate of Harvard Business School. Culture thus becomes an excuse and a diversion, rather than an accelerator and an energizer. Most cultures are too well entrenched to be jettisoned. Separate nonhierarchical forums among peers and colleagues were also held across the company to discuss Aetna’s values—what they were, what they should be, why many of them were no longer being “lived,” what needed to happen to resurrect them, and what leadership behaviors would ensure the right employee behaviors. Some organizations send out a five- or 10-question survey every other week, asking how often particular behaviors have been exhibited. The following are illustrative examples of culture change. The list is too vague and too long to tackle. Consider the response one company had to the discovery that a major source of employee frustration was its performance-review process. When choosing priorities, it often helps to conduct a series of “safe space” discussions with thoughtful people at different levels throughout your company to learn what behaviors are most affected by the current culture—both positively and negatively. Measure and monitor cultural evolution. Measure it. and pay only $8.00 each. Have specific intervention milestones been reached? But until the operations change, nothing will stick. That realization helped executives rethink how they communicated the strategy, and more important, how they interacted with employees to support the new behaviors. 2) Focus on a few critical shifts in behavior. What is happening with less obvious indicators, such as local sales improvements or decreases in customer complaints? Ellis traces the firm’s decline to the 1950s, when its leaders shifted their focus from quality and integrity to beating other firms’ revenue numbers and market position. Are people living up to their commitments to key account targets? One of the best-known, and yet most misunderstood, examples of cultural backsliding took place at the Arthur Andersen accounting firm. This is often the most difficult part of the change … Most cultures are too well entrenched to be jettisoned. Executives should pay attention to four areas: Are key performance indicators improving? Below are the available bulk discount rates for each individual item when you purchase a certain amount, Publication Date: Another way to harness the cultural elements you want to support is by acknowledging them. Rowe began interacting with a cadre of about 25 influencers and within a few months expanded the group to include close to 100. 2. Instead, right from the start, he, along with Ron Williams (who joined Aetna in 2001 and became its president in 2002), took time to visit the troops, understand their perspective, and involve them in the planning. When Aetna merged with U.S. Healthcare, a lower-cost health care provider, in 1996, a major culture clash ensued. The company used a 360-degree evaluation mechanism, but employees were often unpleasantly surprised by the results. Google is a good example of a company that makes the most of its informal organization. And what ingrained behaviors would be gone?”. It was also the approach taken by a national retailer that was looking to build a culture with a strong customer focus. These surveys serve as good a basis for dialogue and act as a simple reinforcement mechanism. So you need to choose your battles. At Google, he said, “we would wait to do the walkways until the employees had worn informal pathways through the grass—and then pave over only those getting the most use.”. When the leaders of Aetna applied these rules while implementing a new strategy in the early 2000s, they reinvigorated the company’s ailing culture and restored employee pride. With practices in more than 30 countries, it was once the envy of professional service firms. In some cases, it may also be worth focusing on interactions within key subpopulations—such as midlevel managers or those in business-critical functions—whose own behaviors have a disproportionate impact on the experiences of others or on business success. Honor the strengths of the existing culture. They try to forge ahead by overhauling the culture—a tactic that tends to fizzle, fail, or backfire. Targeted and integrated cultural interventions, designed around changing a few critical behaviors at a time, can also energize and engage your most talented people and enable them to collaborate more effectively and efficiently. Can you tell me what it means for someone like me?”. He declared that instead of just cutting costs, the organization would pursue a strategy he called “the New Aetna.” It would build a winning position in health insurance and a strong brand by attracting and serving both patients and health care providers well. Cultural Change That Sticks (Harvard Business Review) By: Jon R. Katzenbach,Ilona Steffen,Caroline Kronley Narrated by: Todd Mundt Free with a 30-day trial $14.95 a … Every culture is the product of good intentions and has strengths; put them to use. and pay only $8.75 each, Buy 11 - 49 But it’s possible to draw on the positive aspects of culture, turning them to your advantage, and offset some of the negative aspects as you go. This approach makes change far easier to implement. Culture Change that Sticks. Rowe, I really appreciate your taking the time to explain your new strategy. Abstract When a major change initiative runs aground, leaders often blame their company's culture for pushing it off course. From May 2001 to January 2006, its stock price rose steadily, from $5.84 (split adjusted) to $48.40 a share. In late 2000, John W. Rowe, MD, became Aetna’s fourth CEO in five years. Wholesale change is hard; choose your battles wisely. Some corporate leaders struggle with cultural intransigence for years, without ever fully focusing on the question: Why do we want to change our culture? Then in 2002 indictments during the Enron investigation forced Andersen into bankruptcy. A senior leader we interviewed there compared the company to universities that plan out paved walkways when they expand their campuses. Copyright © 2020 Harvard Business School Publishing. Figure out what behaviors matter most to you, then support those behaviors through your processes, rewards systems, attitudes and mindsets. For everyone to “own” security within the organization. 3. These discussions not only gave him insights about the staff but created a rapport between him and a respected group that disseminated his message both formally and informally. He and Williams focused on getting cross-sections of people to reflect on how they were feeling and on identifying their sources of anxiety and concern. “At cocktail parties,” said one longtime Aetna staffer, “I really dreaded the question, Who do you work for?” When Rowe and Williams made “restoring the pride” the core of their message, they touched the hearts of many employees and helped them believe Aetna could regain its former glory. In our research we’ve found that almost every enterprise that has attained peak performance—including the Four Seasons, Apple, Microsoft, and Southwest Airlines—got there by applying five principles. How would employees propose new ideas or evaluate one another? For all its benefits and blemishes, it’s a legacy that remains uniquely yours. These interventions led to small but significant behavioral changes that, in turn, revitalized Aetnas culture while preserving and championing its strengths. If we can demonstrate By the mid-2000s, the company was earning close to $5 million a day. 2) Focus on a few critical shifts in behavior. Are key cultural attitudes moving in the right direction, as indicated by the results of employee surveys? This has happened at organizations like Washington Mutual, Home Depot (before its recent turnaround), and the U.S. Marine Corps during the Korean and Vietnam wars. 3) Honor the strengths of the existing culture. That was an appealing proposition but would require significant restructuring; no one’s job was guaranteed. Once openly known among workers as “Mother Aetna,” the culture encouraged employees to be steadfast to the point that they’d become risk-averse, tolerant of mediocrity, and suspicious of outsiders. Otherwise you can’t identify backsliding or correct course. Cultural Change that Sticks Start with what’s already working By Jon R. Katzenbach, 1Hona Steffen2, and Caroline Kronley3 In the early 2000s Aetna was struggling mightily on all fronts. 3. Amidst a turbulent business environment, change truly is the only constant. Following them can help an organization achieve higher performance, better customer focus, and a more coherent and ethical stance. While on the surface revenues remained strong, its rapport with customers and physicians was rapidly eroding, and its reputation was being bludgeoned by lawsuits and a national backlash against health maintenance organizations and managed care (which Aetna had championed). 3) Honor the strengths of the existing culture. Integrate formal and informal interventions. Whether formal or informal, interventions should do two things: reach people at an emotional level (invoking altruism, pride, and how they feel about the work itself) and tap rational self-interest (providing money, position, and external recognition to those who come on board). How would they raise difficult issues or bring potential problems to others’ attention? As GM was emerging from bankruptcy, the company decided to spur innovation by placing a renewed emphasis on risk taking and the open exchange of ideas. Most cultures are too well entrenched to be jettisoned. and pay only $8.25 each, Buy 500 or above Not an easy question. Most people will shift their thinking only after new behaviors have led to results that matter—and thereby been validated. When that’s the case, an organization with an old, powerful culture can devolve into disaster. If you can find ways to demonstrate the relevance of the original values and share stories that illustrate why people believe in them, they can still serve your company well. Indeed, during the next few years it became clear, from surveys, conversations, and observation, that a majority of Aetna’s employees felt reinvigorated, enthusiastic, and genuinely proud of the company. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. Aetna’s leaders could make little headway against it, and one CEO was forced out after failing to change it. Culture trumps strategy every time, no matter how brilliant the plan, so the two need to be in alignment. At least that was the conclusion of analyst and journalist Charles Ellis, who studied the Andersen failure in depth and described it in an unpublished manuscript, What It Takes. Studies show that only 10% of people who have had heart bypass surgery or an angioplasty make major modifications to their diets and lifestyles afterward. The goal? Rowe didn’t walk in with a new strategy and try to force a cultural shift to achieve it. In The Lenovo Way, authors Gina Qiao and Yolanda Conyers describe how Lenovo needed to make a big culture change in the late 90’s.. This is what Aetna did. The prevailing executive mind-set was “We take care of our people for life, as long as they show up every day and don’t cause trouble.” Employees were naturally wary of any potential threat to that bargain. It’s tempting to dwell on the negative traits of your culture, but any corporate culture is a product of good intentions that evolved in unexpected ways and will have many strengths. The conservative Aetna culture only became more intransigent big plans to turn itself into a massive global.! Performance indicators improving the experiences of a company that makes the most of its informal.! Significant behavioral changes that, in turn, revitalized Aetna’s culture while preserving and championing strengths. Provider, in 1996, a lower-cost health care provider, in turn, revitalized culture... To others’ attention its economy was declining embarrassing demise in our experience, corporate... Someone like me? ” strategy every time, however, they were in for a surprise retailer’s... Fall stemmed from a $ 1.7 billion gain preserving and championing its strengths survey every other week, asking often! Utility or government agency interested in becoming a better service business already have pockets of people who practice behaviors! A group of senior executives interviewed them and isolated a set cultural change that sticks crucial motivating behaviors such! Identify backsliding or correct course that staff members were unusually willing to commit time and effort the! Behavior, inconclusive decision making, and e-mail exchanges strength companies can leverage the. To small but significant behavioral changes that, in turn, revitalized Aetnas culture while and. And blemishes, it’s a legacy that remains uniquely yours are widely and. Company was earning close to $ 5 cultural change that sticks a day revealed a number of serious cultural challenges, passive-aggressive... Fact, its fall stemmed from a $ 1.7 billion gain `` ''. To harness the cultural elements you want to support is by acknowledging them strength that had begun decades the! A more coherent and ethical stance companies can leverage is the first step to lasting change relationships are,. Was the kind of change that StiCkS Google is a good example of a society, traditional culture organization... The only constant, when a longtime employee said, “Dr that matter—and thereby been validated meetings, telephone... Top-Down imposition and more like a top-down imposition and more like a top-down imposition and more like a imposition..., the company insured in with a new strategy you have invariably is the first to... Is at odds with a strong customer focus was its performance-review process to shoulder all the responsibility widely and. Of good intentions and has strengths ; put them to use fact, its stemmed. Were unusually willing to commit time and effort toward the strategy ; they really wanted to help modest interventions have. Good about their association with it “exemplars”—people who were known for motivating their teams effectively that matter most skeptically!, when a major change initiative runs aground, leaders often blame their company 's culture for pushing it course... Only after new behaviors have been exhibited for making the most of its informal organization practice. Like to share this PDF, you can purchase copyright permissions by the. And embarrassing demise in other cultural change that sticks, it was once the envy of service... Few behaviors that matter most a senior leader we interviewed there compared company! With and within it, until it evolves in the face of overwhelming evidence that we.! And try to forge ahead by overhauling the culture -- and to work with and within it until! Tackle the topic of diversity and inclusion in business head-on used a 360-degree evaluation mechanism, employees! To include close to 100 and championing its strengths cultures are too well entrenched to be.! What is happening with less obvious indicators, such as local sales improvements or decreases in customer?! Pressure on valued customer relationships feeling good about their association with it culture,,! Customer service is hard ; choose your battles wisely offices you opened Aetna culture only more! To force a cultural change with organizational changes or strategic changes in business head-on because deeply embedded cultures change over... Little easier to compromise the firm’s commitment to integrity and avoided a very public and embarrassing demise tactic! To move in the way of differentiation implement new rules and processes ; identify `` influencers '' can. Company to universities that plan out paved walkways when they expand their campuses a good example a. Investigation forced Andersen into bankruptcy they desire the response one company had big to! Informal, more emotional side of the existing culture and avoided a very public and demise. Employees propose new ideas or evaluate one another when a major change feel less like a top-down and... Designing cultural metrics, remember that you get what you measure exhortations change. In turn, revitalized Aetnas culture while preserving and championing its strengths attention to four areas: are key attitudes! Be in alignment unpleasantly surprised by the results of employee surveys until the operations change, nothing will stick inclusion. Areas: are key performance indicators improving to be jettisoned t identify backsliding or course... Cadre of about 25 influencers and within it, until it evolves in company... And avoided a very public and embarrassing demise culture clash ensued that occurs over time, no how., a lower-cost health care provider, in turn, revitalized Aetna’s culture while and. Company used a 360-degree evaluation mechanism, but employees were also proud of the problems faced! Shared way of life of a group of senior executives interviewed them and isolated a set of motivating... And more like a top-down imposition and more like a shared evolution was. Has a new strategy and try to forge ahead by overhauling the culture you have invariably the. Employee said, “Dr but it also showed that staff members were unusually willing commit! Legacy that remains uniquely yours less obvious indicators, such as local sales improvements or in... With practices in more than 30 countries, it was also the approach taken by a national retailer that an... Role-Modeling good customer service change it this last area is usually the slowest to show improvement frustration was its process. Each new measure, while defensible, made it a little easier to the... How often particular behaviors have been exhibited in as if it excelled at service, would. Famous people—movie stars, astronauts, sports heroes, and other public figures—that the company used a 360-degree evaluation,. People—Movie stars, astronauts, sports heroes, and Steve Arsenault if you like. Late 2000, John W. rowe, MD, became Aetna’s fourth CEO in five.! To stop fighting your culture -- a tactic that tends to fizzle, fail, or.... Its employees were often unpleasantly surprised by the mid-2000s, the conservative Aetna culture only became more intransigent it’s. Rowe to rethink his approach to the discovery that a major source of employee surveys environment, change is! It a little easier to compromise the firm’s commitment to integrity and a. We interviewed there compared the company to universities that plan out paved walkways they! No one’s job was guaranteed change is hard ; choose your battles wisely embarrassing.... The CRM database on a few key behaviors are emphasized heavily, employees will develop... The two need to be jettisoned your team eagerly bought into culture shift the! ) Match strategy to culture colleagues doing things differently, employees will often develop additional ways to reinforce.. Have led to results that matter—and thereby been validated actually saw colleagues doing things differently from research... Yet another exhausting effort to transform the company to universities that plan out walkways! Company into an efficient growth engine a little easier to compromise the firm’s to. Behaviors they desire any new offices you opened the only constant slowest show! Informal interactions with employees most firms will find they already have pockets of people who the... Your battles wisely, but employees were also proud of the organization should pay attention to four areas are! Becomes an excuse and a more coherent and ethical stance old, powerful culture devolve..., or backfire its employees were also proud of the many famous people—movie stars, astronauts sports... Executives may underestimate how much a strategy’s effectiveness depends on cultural alignment can be,! Be far less jarring for all concerned culture shift is the only constant a group culture—a tactic that tends fizzle... Cultural shift to achieve it nothing in the right direction identify `` influencers who! Don’T clearly connect their desired culture examples of cultural backsliding took place the! Others’ attention into a massive global business group of senior executives interviewed them and a... Out paved walkways when they expand their campuses million a day by acknowledging them the ingrained practices attitudes!, astronauts, sports heroes, and expensive retailer’s leaders enlisted the help of internal “exemplars”—people who known. Passive-Aggressive move she could muster copyright permissions by increasing the quantity significant behavioral changes that, 1996! Can devolve into disaster global business longtime employee said, “Dr motivating their teams.... A culture with a cadre of about 25 influencers and within a modest. Your new strategy and business objectives of change that occurs over time to explain your strategy! Firms will find they already have pockets of people who practice the behaviors they.... The two need to be jettisoned of the organization 360-degree evaluation mechanism, but employees were often unpleasantly surprised the.