Category: Culture

In a rapidly evolving business environment, characterized by constant changes and growth challenges, corporate culture emerges as a crucial pillar for the survival and prosperity of organizations. This global phenomenon not only affects large corporations but also startups and medium-sized enterprises. This article explores the nature of corporate culture, its economic impact, and its influence on business performance, offering a comprehensive perspective on its role in the modern era.

Corporate culture transcends a set of written values; it represents the soul of the company. It is the complex fabric of beliefs, behaviors, symbols, and systems that dictate how employees interact and make decisions. It is essential for navigating a disruptive business world, where only 23% of executives acknowledge that they can effectively manage cultural changes to align them with the business. Symbols in the form of rituals and myths, observable behaviors, and underlying systems define the unique character of each organization. This intangible yet powerful component is what drives companies to overcome obstacles and achieve their strategic goals.

To illustrate the economic impact of corporate culture with concrete data, we can consider, according to a survey by the Korn Ferry Institute, that between 30% and 50% of an organization’s market value can be directly attributed to its culture. This shows us that culture is not only a key strategic differentiator but also a considerable and compelling economic asset.

Furthermore, a recent study has revealed the power of a single cultural attribute, such as recognition, in the economic performance of a company. If the number of employees perceiving recognition as an essential attribute of their work environment were doubled, a 9% improvement in productivity, a 22% decrease in safety incidents, and a 22% reduction in absenteeism would be observed. This translates to $92 million in productivity gains and millions more in savings due to decreased incidents and unscheduled absences. Other studies also emphasize that companies prioritizing culture and investment in their employees can grow sales and margins up to twice as much as those that do not.

The economic influence of a strong corporate culture is undeniable. Another comprehensive study has shown that companies with strong cultures aligned with their strategy have significantly better financial performance. A longitudinal analysis of 25 companies over 11 years revealed that organizations with adaptive and aligned cultures experienced a 682% increase in revenue, compared to a 166% increase in companies without such alignment. Additionally, in the realm of mergers and acquisitions, an aligned culture is a critical factor for success, with executives willing to abandon deals if the culture is incompatible or reduce the purchase value by up to 30%.

These data underscore the power of culture as a driver of growth and sustainability. Likewise, a strong culture positively impacts employee retention and satisfaction, customer loyalty, and the innovative capacity of the company, creating an ecosystem where all aspects of the business nurture and strengthen each other.

A well-defined and executed corporate culture becomes a key strategic differentiator. In the current competitive landscape, where the pace of change is staggering, a culture that supports and embraces this change is vital. This is a key aspect that companies should not overlook if they seek not only to survive but also to thrive in the modern business landscape. Effective culture management can and should be a strategic initiative to generate more economic value and ensure a prosperous future. Companies that prioritize a culture of innovation and adaptability tend to outperform their competitors in terms of agility and ability to respond to market changes. Additionally, culture directly affects operational efficiency, decision-making, and strategy implementation. A culture that supports and embraces change is vital. Culture thus becomes the central axis for strategy execution, the development of new products, and expansion into new markets.

It is more than a strategic component; it is the heart that drives success in a competitive and disruptive world. With economic importance clearly established and tangible impacts on business performance, it becomes evident that deliberate actions to foster a strong culture are essential.

The remaining questions are: Is your organization prepared to transform its culture and move towards a prosperous future? And in addition to this, it is worth questioning how much economic value we are leaving on the table by not strengthening the culture to achieve unbeatable results. In summary: The best business we can invest in is our corporate culture consciously.

Behavioral risk management is an emerging field that aims to understand the underlying human and cultural factors that can lead organizations into both success and failure. By digging deeper than surface-level controls and metrics, behavioral risk assessments provide valuable insights for leadership teams looking to transform their culture and bolster integrity.

Mirea, a pioneering expert in the subject, has over a decade of experience applying behavioral science to regulatory oversight and internal bank programs. In our recent webinar, Mirea delved into the core principles and promising potential of this approach.

The Bright and the Dark side of companies

There are two sides, the dark side and there’s also the positive side of organizational culture, which is a very good place to be. It’s where risks are taken in a very balanced way, and we’re efficient and in control, and we know there’s trust and integrity. But there’s also this other side of culture, which is also part of our focus. I would say it’s behavioral risk management, that’s the darker side. It’s where, inconsistencies are inefficiencies, distrust, that’s where the sharks are. And I think the question is not so much, do organizations have a dark side? I think every organization has a dark side, every organization also has bright sides. And honest management and leadership is about understanding both sides, understanding what’s going on and doing something about it when necessary, and then being able to dive deep below that waterline and also swim out to where the sharks are is absolutely part of the leadership that you know today in this rapidly changing world.

The Desire State

How does behavioral risk management connect with safety in industrial enterprises?

There’s absolutely a connection there, so if we think about safety, if we’re talking about a safety culture or a risk culture, we’re talking about this as a desired state, at that moment we’re talking about the desired behaviors we want to see and that are essential and crucial for our organization because, in the work we do, we need to ensure our people and employees are safe, we have to ensure that the products we’re producing are also safe for our customers, in banking it’s important to have a strong risk culture, which means you’re aware of the risks. You’re identifying your risks, you’re escalating them when necessary, but all of this has to do with the desired state, the desired behavior we want to see and behavioral risk management can be very helpful in developing you toward that desired state because it gives you an insight into what’s preventing me from reaching that state, what’s preventing me from reaching that safe culture that I need.

Culture of Avoidance

Many organizations may inadvertently foster a culture of avoidance when it comes to risks. It’s like wanting to do the right thing, but unintentionally causing avoidance, which isn’t good for business. What are some signs? I think when we talk about avoiding this, and I believe in such a turbulent world, avoiding risks or staying in the safe zone is a behavior we see quite often. Bringing it back to Darwin, you know how people respond to stress and threat in their lives—either fighting, fleeing, or freezing. I think you know how avoiding and evading risks in this turbulent world is putting things backwards; avoidance is a coping mechanism. A coping strategy for many organizations or individuals in organizations who feel overwhelmed, out of control, psychologically threatened, and choose to simply do as little as possible and stay away from risk. Which, of course, I believe is very undesirable because for organizations, we think about, small business entrepreneurs, but also corporations, taking risks is part of organizational life and being part of staying viable. And I think here again, it’s true, instead of avoiding challenges in life, you know it’s better to face them and organize yourself around them, make sure you understand them as much as possible, organize support, and face them head-on rather than avoiding them because you know you’re on the road to nowhere.

Is an Honest Mistake acceptable? 

What is your opinion on an honest mistake that could lead to a major regulatory issue or loss of lives in aviation? People aren’t perfect, we’re not perfect, and we make mistakes, I think many things going wrong have to do with human errors and there are absolutely examples of ill intent of crossing the line, I think you have to be very clear that there’s something that’s not at all acceptable. I think many organizations fall into the trap of not being clear about accepting unacceptable behavior, but if it boils down to human errors you have to do it. I think the obligation is to find out what really happened and then with a lot of individual behavior that you see, there’s also a connection to the culture of an organization, so the social system of the organization you know sets a social norm that people must adhere to and there’s, social reward and social rejection. If it’s unacceptable behavior, then be very clear about it, but I think most behavior is like that. It’s a much more complex story, which I think for organizations is key to uncover because they have to carry on with their organization, they have to move forward, they have to keep the organization alive.

In conclusion, behavioral risk management emerges as a transformative approach, shedding light on the intricate interplay of human behavior and organizational dynamics. By embracing this paradigm, organizations can navigate uncertainties and foster cultures conducive to long-term success and sustainability.

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Highlights

Talking about the struggles and pains of leading a major restructuring is unfashionable in senior management circles. Executives call those restructuring projects “challenges” or “opportunities to transform”. Managers are supposed to be strong actors, make the impossible happen and stay energized and engaged throughout the process.

Yet, many leaders who moved up the ranks in times of growth are not fully prepared for restructuring and downsizing. Nor are they comfortable with the ambiguity and unpredictability of our increasingly complex world.

Moreover, the pressure on the role of executives is increasing. As in other parts of society, managers can no longer rely on their formal role as a source of authority. When a child was complaining about a teacher 20 years ago, the usual response of parents was “behave and try to get along with the teacher”. Today parents share the complaint with other parents online. The role of the teacher, or doctor, or manager evokes less and less trust. Combined with constant business change, this leads to an obvious but often unsaid truth:

Being a leader increasingly means to deal with major crisis situations whilst under pressure in your own role. Many executives therefore see less and less meaning in what they do, moreover as today’s tightly controlled corporate structures limit their own room for action. This can turn into a downward spiral for leaders, reducing their effectiveness, their identification with the role, their engagement and ultimately their mental and physical health.

A lot of tools have been recommended for leaders to master any type of crisis. We assume that our readers are already sufficiently equipped with the usual management instruments. Instead, we invite a short reflection on a very ancient story which can help us gain a complementary perspective.

The sea was calm when Ulysses and his sailors approached the island of the Sirens. All men had plugged their ears with wax to avoid hearing the deadly song of the Sirens. Only Ulysses dared to confront the danger and kept his ears open. However, he made sure that he would not be swallowed by the song of the Sirens by asking his men to bind him to the mast and not let him loose under any circumstance.

When we hear heroic stories, like the one of Ulysses, or watch more recent heroes going through life threatening challenges in movies, we experience in some short moments the angst of confrontation with the unknown and the dangerous. In those moments, together with our hero, we neither run away, nor are we swallowed and destroyed by the experience. We stay confronted by the danger, and we are relieved when the hero comes out of the experience. He is not only safe now, but he is stronger and surer of himself and of what he stands for.

Leading through downsizing, restructuring and other forms of major organizational crisis, there could be moments where leaders admit that they are not strong and all-knowing. They could become aware of their limitations and ask for help instead, as Ulysses did when asking his team to secure him.
They could, at the same time, avoid closing their ears and looking away from the threats and issues. They could avoid isolating themselves from their teams when times get rough, as many executives tend to do. They could instead stay connected to their people and the organization, while keeping their ears open and keeping their own voice.

During times of restructuring and crisis there could be moments where leaders become more aware about their role and about themselves and make sense of what they do and who they are. The crisis is a great moment in time to get in touch with, and express, one’s own true beliefs.

It is possible to go through a crisis and stay true to who you are and express it authentically and skillfully.

If leadership is executed like that, chances are that leaders and their teams will weather the storm. More than that, they are more likely to benefit from it and grow as professionals as well as personally. Ultimately, in leading through the crisis in that way, they will have the privilege to leave a meaningful legacy. This legacy is not only the targets they met, but also the maturity they have gained as human beings and the stronger and healthier organization they have built. We encourage leaders to look for the support they need to deal with restructuring and other major crisis in a meaningful way. Leaders face great challenges today; however, the opportunities are equally as great.

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*Test test test

Michelle doesn’t eat broccoli. She says that “it’s ugly.” Marcelo refuses to discuss an issue with Gustavo. He says that he “he’s an idiot”. The difference between Michelle, my five-year-old daughter, and Marcelo, my 45-year-old client, doesn’t seem that big. But in the case of Marcelo, marketing manager for Latin America of a well-known multinational, the consequences are much more serious. Gustavo is the executive in charge of the most important product line in the region of that same company. If Marcelo acts unilaterally, he will make a mess. He will not only create operational problems; he will also jeopardize relations between his show and Gustavo’s division.

Both Michelle and Marcelo suffer from the same malady: ontological arrogance; that is, the belief that our experience defines reality. “What seems to me,” thinks the arrogant ontologist, “is so.” Consequently, “if someone does not seem the same as me, they are wrong.” Marcelo calls Gustavo an “idiot” because she doesn’t think the same as him. Like all those infected by the “virus” of ontological arrogance, Marcelo considers himself the owner of reality. He believes that his opinions are “the” truth, rather than “his” truth about him.

Jean Piaget, the famous psychologist of cognitive development, was conducting a fascinating experiment with children. He would give a boy a cube painted half red and half green to familiarize himself with. Then she would sit in front of him and, holding the cube in his hands, would ask him: “What color do you see?” “Green”, the boy answered correctly. The next question was: “What color do you think I see?” The four or five year olds answered without hesitation: “Green”. But Piaget found that, between the ages of six and eight, they developed the cognitive ability to take a different perspective.

productivity

From what I have seen, more than people who are 45 years old, many executives have 40 years of experience in being five years old. “The client is an abuser”, “The computer science people are unbearable”, are some of the phrases that reflect the ontological arrogance in organizations. These phrases and, especially, the ideology they contain, prevent productive dialogue. Arrogance generates conflicts and lack of communication that hurt the effectiveness of the task and work relationships.

Since it is impossible to trade without opinions, what is the alternative? How to give an opinion without becoming arrogant? The key is to adopt a posture of humility; accept that my perspective of things is not the only one possible. That my opinions reflect my reaction to the facts and not the facts themselves. This reaction is conditioned by my information, my interests and needs. If other people have different information, needs or interests, even when faced with the same facts, their opinions will be different.

The language of ontological humility is based on the appropriation of my opinions and the consideration of the opinions of others. In order to establish a dialogue of mutual acceptance and respect, I must not only learn to express my opinion, but also the reasoning behind it and its consequences. Likewise, it is necessary to learn to investigate the reasoning behind the other’s opinion and the recommendations derived from it. These are fundamental competencies that most professionals never acquire.

… it is necessary to learn to investigate the reasoning behind the other’s opinion…

The maturity of the human being is reflected in his ability to integrate different perspectives. To do this, we must overcome the attachment to our own perspective and accept the perspectives of others. Dialogue is richer and more productive when all opinions are considered; that is, when none is presented as the only truth.

The problem is that the more permission people have to speak frankly, the more diversity of opinion arises, and the more conflicts appear. It is essential, therefore, to learn to deal with these conflicts, productively and respectfully. Exactly, the subject of the next article.

Let me tell you a story, the story of a 7-year kid (maybe me, maybe you, maybe your son or daughter…) being inspired by his parents to be his own superhero:

– Who is your hero? – my father asked.  

– Spider-Man! – I said excitedly.

– Why my son? – my father asked.

– Dad, because he knows what is right, what is wrong. And he has superpowers! He can save and protect the good guys and our planet against the villains! 🤩 – I answered, even more excited.

– And how are you going to look and act like him? – my father asked.

– I don’t know… I’ll have to find a spider to bite me… 😂 –  I said, laughing out loud.

My father and I couldn’t stop laughing.

– I have an idea that can save us from the hospital… Shall I tell you? – My mom said, joining the conversation.

So my mom started to first tell me a story, followed later on by many other stories (with my dad) embedded in a game called #ConsciousKids. It changed my life!

– Tell me, my son, do you remember when you learned to ride a bike? How many times do you fall? Do you remember the knee injuries? And your cries of pain and frustration? – Said mom. 

– Well yes, mom! – I answered.

– With your dad, we saw you fall, cry, scream with rage and we saw you get up, try again and fall down and try again.- Said mom.

– Yes, with mom we looked at each other and I remember we said to ourselves: “He is beautiful, our little one hero!”. – Said dad. 

– Do you know why? Nope? Tell me: When did you feel proud and strong like a hero? – Ask mom. 

– Well when I managed for the first time to pedal alone without falling for many meters, I was so happy and I cried with joy to be the hero! –  I answered.

– There you were just happy to have succeeded. For us, you were a hero every time you got up crying after falling and hurting yourself. – My dad said. 

– That’s how and when you were a real hero for us: You showed us your strength, your courage, and your determination to overcome your weakness, and you didn’t give up despite your failures and your pain. – My mom said. 

– The important thing is not to fall it’s how you get up. – My dad said. 

– Oh yeah, I think I got it. – I said

– Good! So, what other opportunities can you find to be your own hero?  – Dad replied

– Okay, but that sounds difficult to me. I think it’s easier to go back to the search for the spider than to give me superpowers. 😂 – I said

– Don’t worry son. I have an idea! Would you like to play a game with mom and dad? – My mom said. 

– Yes, I love playing with you.  – I said

– Well, welcome to the Conscious Kids game. We’ll be back with more stories very soon! Are you ready? – My mom said. 

– Yes! – we all answered in unison and we laughed together and hugged each other. This game sounds like fun.

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Curious Leaders Create Successful Cultures

About the Author: Stefaan van Hooydonk is the founder of the Global Curiosity Institute & Business Council Member of Axialent. This article is a shorter version of a dedicated chapter on curiosity and leadership in his book: The Workplace Curiosity Manifesto.

It is hard to be a good leader — whether the source of leadership is being an executive, running a country, or being a frontline manager. It is also hard to find good leaders. An extensive 2015 internal study of twenty thousand executive placements was conducted by the executive search firm Heidrich and Struggles. The study revealed that 40 percent of these newly appointed executives fail within eighteen months.

Curious Leaders Create Successful Cultures

A failure means the executive left, was asked to leave or was performing significantly below expectations. Consistent with data from other research in subsequent years, the success of executive appointments was no better than 50 percent. Executive recruitment seems to be a hit-or-miss activity. Candidates have an equal chance to succeed or fail.

The challenges managers face today are less predictable than they were in the last century. Solutions to problems are not so easily found in previous successes. The power to effect change requires more gentle influence than formal top-down authority. Especially now, leadership is ambidextrous. Leaders need to be good at keeping their ship afloat while, at the same time, reinventing the future. 

Curiosity in its various dimensions is well suited to assist leaders to widen their perspectives, listening intently, engage new challenges, experimenting, learning faster, and building organizations that create results in times of crisis.

What is a curious leader?

In a cross-industry curiosity study led by curiosity researcher Todd Kashdan commissioned by Merck KGaA, Darmstadt, Germany, professor Kashdan posits several curiosity barriers associated with leaders.

  • Autocratic, top-down leadership behavior stifles curiosity as curious subordinates are not provided with the opportunity to question or challenge decisions, nor are they invited to explore and share novel options.  
  • The prevalence of risk-averse behavior makes leaders opt for proven and safe ideas, thus restricting creative thinking time.  
  • A preference for conformity and fear of standing out from others among managerial peers.  

The above points already highlight a number of dimensions explaining incurious leadership behavior. What becomes clear is leadership positions are sensitive to the nature/nurture divide. Leaders show up with their own level of curiosity, yet simultaneously are also adapting their individual inclination for curiosity to the context they are in.

An interesting finding in the research is that when a CEO displays a healthy dose of curiosity, the company benefits both in terms of an increase in operational efficiency as well as an above openness to exploring new territories.

When the CEO, or the team leader for that matter, is high on curiosity, the members of the organization are more likely to agree with the statement that the organization encourages curiosity. This does not mean employees at all levels of the organization automatically feel encouraged and enabled to show up curiously at work.

Next to being role models, leaders also need to establish habits and interactions, so employees are reassured curiosity is not reserved for people at the top.

Curiosity needs champions. The shadow the manager casts is an important driver of team curiosity. In my research, I have established a linear correlation between the number of hours a manager spends on the acquisition of new information and knowledge through reading books or articles, viewing educational videos and taking (e-) classes, listening to podcasts or e-books, and so on.

The more the manager consumes new knowledge, the more the team also follows in the curious behavioral footsteps of the leader. As a result, there is an increase in the hours the team spends on learning to mimic those of the leader. Intuitively this makes sense.

When the manager is curious herself, she will—openly or not—make it clear she values new knowledge in the team. The team will recognize that learning and intellectual exploration are important and will follow her example.  

The inverse is sadly also true. If a manager does not communicate in words or—more importantly in actions—that learning is important, the team refrains from consuming learning. Luckily, not all team members mimic the manager’s learning habits.

Some of them—the A players—are intrinsically so curious, that even a non-conducive environment does not stop them from exploring. A-players are not negatively influenced by the behavior of their leader. In summary, curious managers uplift the team and stretch it beyond what they thought was feasible. Incurious managers, on the other hand, stifle the team and hold it back.

Curious Leaders Create Successful Cultures

A 2018 study of three thousand international employees conducted by Harvard Business School professor Francesca Gino disclosed the implications of workplace curiosity and the corresponding leadership support for curiosity. She states curiosity is an important aspect of a company’s performance because of the following reasons:  

  1. When curiosity is triggered, leaders tend to be more intentional and rational about their decision-making.
  2. Curiosity makes leaders—and their teams—more adaptable to the dynamics of uncertain market environments.
  3. Curious leaders command higher levels of respect of their followers than incurious leaders.

Workplace curiosity works in real-time. When leaders are more curious and invite surprise about everyday activities, the more it has a carry-over effect on team members.  

However, when studying the above-mentioned Harvard Business School research on how leaders viewed curiosity, Professor Francesca Gino found: “Although leaders might say they treasure inquisitive minds, in fact, most stifle curiosity, fearing it will increase risk and inefficiency”.  

On the one hand, executives realize the underlying importance of curiosity in helping to implement their firm’s strategy agenda when it comes to product and services innovation, outwitting competition, winning deals, and taking calculated risks in the pursuit of novel and creative outcomes, etc. On the other hand, these same executives are rejecting curiosity as something which goes against the grain of operational efficiency of the organization or that of their team.  

A crucial misconception is that curiosity will naturally occur in any reasonably healthy workplace. In fact, curious work environments are rare. They require deliberate and consistent action. Here are some steps to help you as a leader promote a more curious work environment:

  • Put curiosity on the team agenda.
  • Show up as an all-around curious individual interested in the world, the people around you, and yourself.
  • Ask for (reverse) feedback.
  • Become aware of your question strategies. Are they open-ended or closed?
  • Baseline your own curiosity as well as that of the team.
  • Identify barriers to curiosity in the team, create quick wins and build on their success. Ask the team how they can help in creating a curious environment.

Do try out the above steps and explore on your own how curiosity can lead to building more successful and better performing organizational cultures. 

I invite you to become aware of how you show up as a leader. Are you showing up with curiosity or with judgment? Are you listening to fix or are you listening to learn? Are you projecting yourself a personal desire for continuous learning and growth or not (what type of questions do you allow in your team meetings; questions that confirm what you know already or questions that challenge the status quo)?

These questions will help you become aware of your own curiosity level, trigger you to make curiosity at work intentional, and help you start measuring progress.   

Welcome to the community of curious leaders. Watch the full webinar here.

conscious kids

I have a dream, and its name is Conscious Kids! And I want us to dream together. With my colleagues at Axialent, I work with great business and people leaders around the world. Fundamentally, we help build conscious cultures and coach leaders to successfully run conscious businesses. I love what I do. I really do it out of passion, and I am rewarded by the outstanding impact this work has on individuals and organizations. And yet, I feel there is so much more that can be done to foster consciousness in our ecosystems. 

A few months ago, at an Axialent Board meeting in Barcelona, I had some sort of revelation: we could also support the leaders of tomorrow – our kids! This revelation made me feel 30 years younger, made my eyes shine, and filled me with renewed energy…and a new sense of noble purpose. I began my work toward this by preparing a series of videos where I addressed what conscious kids means concretely, how we could impact kids around the world, and how to make this revelation real.  

conscious kids

When discussing “kids”, I am referring to potentially three different groups: children ages 7-12, teenagers 13-17, and those preparing to enter their adult and professional life. 

In the first phase of these videos, I addressed the what (help kids raise their consciousness so that they are the owners of their lives), the why (our kids’ freedom of mind is at risk), and the how (to raise our kids’ consciousness and be the owners of their future).  

The what of conscious kids is the DNA so to speak. It is helping kids to become: 

  • The player, rather than the victim of their life 
  • A learner, rather than a typical teenager pretending to know everything 
  • A master of their emotions, rather than being controlled by them 
  • Someone who thinks for themselves, rather than just as they are told to think 
  • Someone who speaks their truth constructively without the fear of avoiding confrontation or conflict and without disrespecting the opinions of others. 

The why of conscious kids is somewhat obvious, yet under-addressed. Kids are facing many challenges today for which they are not prepared. There are more and more challenges coming up that nobody but themselves will have to manage individually and collectively.

As adults, we don’t yet know the solutions to the unique challenges they will face. But it is our job to prepare and empower them. As I see it, our children are endangered by three key phenomena:  

  • Social networks, which are based on algorithms that create circular thinking. Social networks do not only tell us what to think but also unconsciously how to think and what relationships to have or not to have with others. These are all the opposite of critical thinking, and of thinking for oneself.   
  • A dramatic polarization of opinions towards the extremes, which divides people within the same family, community, and country in an increasingly violent and lack of respect for others ‘world. Kids need to discover and master polarity thinking that is not taught at school. 
  • The meteoric arrival of the metaverse will immerse us — our kids first — in a world of virtual and augmented realities. Once again, for the better and for the worse. The metaverse, together with artificial intelligence and transhumanism, is revamping the notion of life and of WHO we are. Psychiatrists and psychotherapists have already evidenced how virtual worlds in some video games are leading our kids to face serious risks of loss of identity, confusion about reality, and what the sense of life is — not to mention the risks of manipulation and brainwashing in virtual reality worlds. The metaverse could also be a world of opportunities for the best — if we infuse it with consciousness and mindfulness.  

One thing for example that is of major concern, I think, is the relationship our kids should consciously build with their AI avatar(s): The avatar is their self-representation / projection in the virtual worlds. We need to help them decide and define how this avatar could be their own hero: a hero who can help them become the best version of themselves in real life, and NOT a confusing chimera of someone they are not and should never be. 

My fourth video on conscious kids was a very early reflection on how we can help kids raise their consciousness and be the owners of their life and future. A couple of possibilities include:  

  • A community-based learning & development program where kids will learn from each other, from their parents, from teachers, psychologists, therapists, and pediatricians, from their sports coach, from universities, from corporate foundations, and from all kinds of educational governmental agencies and NGOs — with the support of high-tech companies through strategic alliances. 
  • Gamification — through the investigation of how kids of different ages learn, providing video games, sports, art, and/or physical projects that are tailored to raising consciousness. 

Our aim is to become a marketplace and connector, leveraging the ecosystem of private and public initiatives around the world for raising our kids’ mindfulness, and their ability to make this world a better place for them and for others. 

Take a look at my series of videos about Conscious Kids:

Watch my entire series of videos about Conscious Kids!

At this stage I have three key inferences to be validated or not as we are confronted by realities in our experience: 

  • The ways kids learn and develop are obviously different from how we structure L&D programs for adults — and the way kids will learn & develop in the coming years and decades will be completely different from what it is today. Their world is changing dramatically at a pace that we adults might not even be able to imagine. 
  • Kids and their education are our future: I don’t know how yet, but I intuit that the kids themselves will be the masters of this game. They will tell us, we will learn from them, and they will make us grow. We will not be the teachers — just enablers, facilitators, and coaches. What a shift of paradigm in our education approach!  
  • Likewise, with AI and the metaverse we really need to figure out how together, kids and adults, we will shape the world and the life we want. 

The next step in this exciting journey is to develop the how suite further. Stay tuned for further videos in our next phase, towards the end of the year. I am looking forward to this journey ahead, and hope you are with us! 

how to overcome the challenges of culture transformation

Teryluz Andreu, Axialent Partner & Culture Expert, and Ginger Hardage, Founder of Unstoppable Cultures Fellowship & Former SVP of Culture and Communication of Southwest Airlines, engaged in an interactive forum discussing how leaders can create and sustain cultures of enduring greatness within their organization.

Ginger retired from Southwest Airlines after an illustrious 25 years and created The Unstoppable Cultures Fellowship. UCF lives on as The Fellowship (which Axialent has the privilege of partnering with this year), a four-day masterclass helping you build a captivating culture that your customers can’t resist and your employees refuse to leave.

Ginger Hardage Unstoppable cultures

Ginger and Teryluz began their discussion by listing the three most common pitfalls organizations run into during their pursuit of cultural transformation and advice on how you can address them.

  1. Leadership is not on the same page. It is critical for leadership to be on the same page when trying to evolve their organizational culture. Alignment amongst the leadership team on what kind of culture they desire, how they will drive it, and what commitments they are willing to make is vital. If misalignment occurs within leadership, it will not only be noticed internally but externally as well.
  2. Lack of processes and discipline. Cultural transformation is not a one-and-done project. It requires time, processes to support the change, ongoing communication, and discipline in follow-through. Too often, organizations underestimate the rigorous processes and disciplines needed after launching cultural initiatives and don’t make the necessary investments to drive sustainable change.
  3. Lack of employee involvement. It is important to understand employees’ thoughts and perspectives before making organizational changes. Often, organizations do not listen to their employees’ pain points and roadblocks, which slows efforts down the road. When employees are involved from the start, it creates a sense of ownership and shared responsibility to overcome barriers and see transformational change.

Ginger and Teryluz shared some insights on actions that we can take to address (or even better, avoid) these challenges. It all starts with two key steps: Define and Demonstrate.

  • Define. Have open conversations with your team about these key questions: Where do we want to go? Who do we want to be? What do we need to protect? What do we need to evolve? Teryluz mentioned that this step is a great opportunity to find creative ways to make everyone in the organization a part of the cultural conversation.

For this to work, senior leaders need to have a vision of where they need to go, but also have the courage to seek understanding. Additionally, and perhaps most importantly, these leaders need humility to let go of any preconceived notions on what needs to change. Understanding the current culture from employees’ point of view will help inform what key shifts need to be made culturally.

  • Demonstrate. Help leaders walk the talk. When it comes to demonstration and changing culture, Ginger outlined a few key things leaders should address:
    • “Culture is everyone’s job.” The most effective efforts involve all departments, not just the typical communications and HR-driven initiatives. If all leaders aren’t living the values and modeling the desired behaviors the desired outcome will not be achieved.
    • For culture to change, leaders may need to change. Leaders must reflect on how they need to change, not just the organization. It’s critical to provide safe spaces for leaders to gain self-awareness on how they need to improve their own mindsets and behaviors to align with the new ways of working.
    • Never underestimate the power of storytelling and leadership visibility. In the era of social media, people are used to the continuous flow of communication and increased accessibility. Engaging in conversations about the what, why, and how of the organization’s cultural initiatives has to be a constant process across multiple channels. To be authentic, leaders need to find what approach works for them, understand what is most engaging for their internal audiences, and establish a cadence to keep the dialogue going.

Even the best laid-out strategies can get stuck or go off the rails. Ginger and Teryluz offered some ideas on what to do if you feel stuck in your culture journey.

Watch the entire webinar now! Click here.

  • State the need for change. Tie the need for change to your business strategy and priorities. Ginger encouraged organizations to look at their “return on culture” like other ROI challenges. How can culture drive your business at the enterprise level? It’s essential to clearly articulate how the lack of change will impact employees.
  • Give a cross-section of leaders the responsibility to lead culture. Too often, change is only driven through the HR lens, which can be limiting. It takes a cross-section of people to solve problems and help initiatives get unstuck.
  • Don’t be too prescriptive. Let people serve the organization in the way that works best for them. Model employee empowerment and involve people in creating solutions for problems they care about.

Like any strategic change initiative, cultural transformation requires a clear vision, discipline in execution, agility to adapt to circumstances, dedication to overcome obstacles, and a great deal of resilience.

Let’s allow this journey to be an opportunity to evolve as people as we transform our organizations.

Many organizations have identified the need to drive culture change to adapt to evolving business needs and strategies and new ways of working and retaining talent. The need is clear, and the desire is there. So, what gets in the way of actual change happening?

Most culture change efforts start with a lot of energy but quickly lose steam.  We start seeing the tell-tale signs that we’re not moving forward:

  • Senior leaders dedicate less time and focus
  • Culture activities get cancelled or postponed
  • Initiatives are superficial and there’s no real effort to change mindsets and behaviors that get in the way
  • Focus is on storytelling, but not on “story doing”

As time goes on, it gets difficult to remember why we were doing this to begin with. Because we don’t know what got us here, we wonder, can we really change? We start focusing on all the reasons why we can’t change instead of what we are missing by not changing — what other possibilities could exist.

Unfortunately, sometimes it takes a shock to the system, a call to consciousness to make us focus back on culture – an incident that publicly exposes detrimental behaviors permeating the company and tarnishes the brand, talented people leaving due to burnout and disengagement, crippling bureaucracy or missed growth opportunities.

If you are a leader or culture champion, you may be wondering: How can we jumpstart the culture change? How can we spark renewed enthusiasm and support? Instead of looking for a recipe for success, we encourage you to address the challenge with curiosity, one conversation at a time.  Contemplate who you need support from to reenergize the process and how you can best engage them in discussing the following questions:

  • Who is in? Who is indifferent? Who is out? Why is that the case?
  • Are we clear on why culture matters to our business?
  • Are we aligned on what needs to change about the way we do things today?
  • What is holding us back from making the necessary shifts?
  • How can we quickly demonstrate that things are changing?
  • As leaders, how do we need to change to ourselves?
  • What commitments are we willing to make?
  • What support do we need to fulfill those commitments?

Conventional wisdom is that change takes time; in reality, what it takes is intention and practice.  Culture changes one conversation at a time.  If your culture journey is stuck, jumpstart it by creating a safe space to discuss the questions above constructively.  It may sound counterintuitive, but instead of doing more and going fast, it may be better to focus on less and take time to reflect.  Don’t get discouraged if things don’t happen in the first conversation. Change requires intention, inspiration, a simple plan, and practice.

I was lucky enough to catch a glimpse of the pandemic a few weeks in advance and to be able to act based on the signs, intuition and experience to face a challenge that we did not even imagine what it would finally be like.

The signs were the cancellation of a project in Germany and the anger around the Mobile World Congress in Barcelona. The intuition, that we were facing something unknown and devastating. The experience was that of my colleague Thierry de Beyssac warning me that in the face of real crises, the “worst-case” had to be “really” a nightmare scenario.

Today, two years later, I know that surviving would have been impossible without the trust of our partners and the support and ability to sacrifice of all of us who comprised of Axialent in March 2020. Practically our entire operation was face-to-face with our clients, and involved travel throughout Europe and America that was cut off to prevent the spread of Covid-19.

That was the situation.

The first thing I perceived was fear — fear in our people, fear in our clients, fear in our families. And I understood that the first thing we had to do was to overcome fear.

I set myself three priorities to transform fear into hope.

The first: guarantee the survival of the company. We did it by renegotiating the financial structure, expanding the capital base and applying very tough cost management that included pay cuts up to 50% in the highest salaries and eliminating all non-essential expenses.

The second: talking to people, honoring our values and proposing a pact to socialize sacrifice so that no one would be left behind in circumstances in which uncertainty and vulnerability were total. The tsunami had hit us in the middle of the sailing and all of us on the Axialent ship deserved to reach port together, safe and sound. So we agreed, so we did. It is what I am most proud of as CEO.

The third: to talk to our customers and offer help and support with the ship afloat and the crew weathering the storm. They were just as scared and perplexed as we were. It was the best we could do — we helped each other. We designed new services together that helped them in a complex and challenging scenario, and because of this we were able to reinvent ourselves beyond what we would have dreamed of without the pressure of the coronavirus.

The implementation of these three priorities brought us an unexpected gift, which was to accelerate innovation. Almost without realizing it, we began to do remotely what we were doing in person. The need helped us to make possible what we previously saw as impossible — and for which we had brought a team to the company whose presence at that time was critical. Thanks to this, we found ourselves giving new answers to the new problems that the pandemic brought to the table. At the same time, none of this was easy. And although today I see these two years as a vital and invaluable learning experience, the truth is that we all suffer a lot and still continue to suffer consequences of COVID-19.

At some point, we used the tools we use with our clients to see how we were working in the midst of chaos and the result overwhelmed me. I heard things that I did not like, and it helped me to see things that I did not see. All of this helped us to correct course, and taught me how the humility to admit mistakes is the best ally to create the confidence that is needed to act and lead in uncertainty.

When they ask me what my keys as CEO were for Axialent to survive, I answer that I listened a lot and made quick decisions at the service of the people. Decisions to empower, remove obstacles and protect with an armored umbrella those who were on the front lines helping our clients, containing the budget, or reinventing our services. And underneath the armored umbrella manage the storytelling without essentially missing the truth and remembering that “a team is a state of mind” as my friend Jorge Valdano says. I considered that some bad news or explaining in detail the size of certain obstacles would only serve to increase the distress and discouragement of the team in the midst of the greatest challenge most of us had ever faced in our lives. I sincerely believe that this selective transparency, and sometimes with an optimistic bias, helped us stay on course and reach port.

The pandemic brutally showed us the difference between what we can control and what we cannot. Knowing how to make this distinction and focus energy on what is under our control is what we call at Axialent “unconditional responsibility” which, next to caring for people, are the keys to getting out of a crisis like the one we are experiencing with more awareness and wisdom. Is important to know it now since we also know that this is not last crisis we will have to live.