Tag: integration

2020 has left a trail of exhausted people, mentally drained, after coping with a year of high uncertainty. We learned to adapt by force and reinvented ourselves. But more importantly, where we developed resilience, our ability to bounce back in the face of adversity grew and as a result, we came out stronger.
 

Ready for 2021? Bring it on! …but how?

How are we supposed to be ready for new endeavors when most of us feel the urge to step down and go slow for a change?
2021 is already proving itself challenging. We aren’t close to overcoming the COVID-19 crisis and we still need to care of ourselves and others.  Meanwhile, the world keeps changing. New opportunities emerge in the midst of this crisis and lots of organizations struggle to survive and transform their businesses. It can feel overwhelming.
Leaders are not only dealing with their own need to reconnect and reinspire themselves, but they also need to take care of their teams, as many continue to work remotely while performing other roles (homeschooling, taking care of our elders, looking after our home etc.). Some may be suffering from change fatigue, by being constantly called to change their way of working, taking on more responsibilities as a consequence of employee cutoffs and new demands.
However, not everything is doom and gloom. There is a silver lining: we have learned a lot in 2020. We have increased our ability to confront difficult circumstances and take advantage of new emerging opportunities driven by change. Each of us has what we need to rise and shine. We just need to remind ourselves of it and invest time in renewing our energy and leading the way into 2021.
 

Balance work / life integration

There are simple, yet powerful, things you can try that will help refuel your energy, reignite your enthusiasm, and bring focus to what’s important, thus improving your wellbeing.
 

1. Disconnect to re-connect.

With travel restrictions and lockdowns throughout the world, taking time off to stay home seems counterintuitive for some of us. We usually connect holidays with traveling. However, now, more than ever, we desperately need time to pause and disconnect fully from work and daily activities. We need time to recharge, even if it means staying home, relaxing, and doing nothing. Some of the most brilliant ideas have flourished while doing nothing… just being. Plan for it and make sure you also unplug from technology. Technology has been a main character in our lives in 2020. Let’s give ourselves a break!
 

2. Re-commit to yourself, connecting with what is important in your life.

Take some time to reflect on what you value most: is this the life I want to have? What do I really want my life to be about? How do I want to live my life? What gives meaning to my life? Where do I want to invest my time and energy?
Gifting ourselves with time to envision what we want and grounding our thoughts re-connects us with what’s important in our lives and gives meaning to everything we do. Spiritual meaning is an unlimited source of energy.
 

3. Do something you love every day.

Make a list of the things you enjoy doing that lift your spirit and feed your inner self. Set aside some time every day to do the things you love. The key to refueling your energy is to be consistent and invest time in you. This will help you to be centered and present.
 

4. Count your blessings.

Practice gratitude deliberately every day, until it becomes a habit. Gratitude and appreciation unleash joy and happiness and provide us with a sense of wellbeing and peace of mind. We can train our minds to focus on abundance rather than scarcity, on appreciating what we have instead of what we miss. It helps reorganize our priorities to enjoy life as it is.
 

5. Celebrate your achievements.

Take time to celebrate what you have accomplished, even what you judge to be unimportant. Don’t take it for granted. Small celebration rituals, such as sharing what makes you feel proud with others or voicing your emotions can be enough to reinforce a sense of accomplishment, strengthen your character, and fill yourself with new renewed energy and craving for more.
 
A new year is a great time to stop, pause, and recommit to ourselves and what is important for us. It’s a time to refresh and consciously replenish our energy. There are small and important practices we can learn and apply every day that helps us stay focused, energized, and enjoy the ride, increasing our wellbeing and living a more conscious life.

Team working together with their leader

As my colleague, Elena Ortega, wrote in her recent article, at Axialent we define culture as a set of values, norms, beliefs, and assumptions that govern how we work and what we do. So, how do we go about setting these values, norms, beliefs, and assumptions?

Some believe that to define a company’s culture, its leaders simply have to state what they want the culture to be, the values, and mission statement. Having a clear vision of your ideal culture is an important step toward building a strong one. However, behaviors and decisions from leaders will always be the strongest representation of what the company’s culture truly is. Culture and leadership are intimately connected.

Culture and leadership: You cannot truly understand one without the other

Organizational culture and leadership go hand in hand. To understand the culture of an organization, you must examine its leaders and leadership styles. Employees learn the culture of the organization through the messages they receive from its leaders. Whether the messages are consciously sent or not, we observe what is encouraged and discouraged and usually learn to act accordingly (or are forced out).
Culture also plays a role in shaping leaders and their styles. Those leaders that “fit in” to the current culture will thrive. On the other hand, a new leader who brings a different leadership style that is not aligned with the company’s current culture will come up against a lot of resistance from the organization and its people. Culture is a strong force and leaders also receive messages about what they should and shouldn’t do to fit in. If leaders want to change the culture, all leadership must be on board to do so.
These are some of the reasons why we use the  OCI® (Organizational Culture Inventory®) and OEI® (Organizational Effectiveness Inventory®) in combination with the LSI® (Life Styles Inventory®). The culture assessment tools (OCI-OEI) allow us to take a deep dive into the current culture. We invite a cross-section of employees to answer the culture surveys in order to truly understand their experience of the organization’s culture. At the same time, we measure the top leaders’ thinking and behavior styles with the LSI tool. Because of the links between these tools, the results provide a powerful way to connect the dots between the leaders’ styles and behaviors, and the current culture.

Leaders define the ideal culture of an organization

Leaders have the power to define the ideal culture based on what they value and believe leads to effectiveness. In turn, they shape the organization’s current culture through the messages they send about what is acceptable and unacceptable. In our culture transformation projects at Axialent, we like to take our diagnostic process a step further and define the ideal culture using another Human Synergistics tool: the OCI Ideal. Combining these tools allows us to get a complete look at the culture and the work that needs to be done to achieve the optimal culture for success. The OCI Ideal shows us where the leaders of the organization want the culture to be. The current OCI results show us where the organization is today. And the LSI tool allows us to examine the leaders’ role in the culture and create a game plan to make lasting change.

Conclusion

Culture and leadership are not two separate entities but are intimately connected. One influences the other and vice versa. This powerful information can be an important driving force in creating and maintaining the culture your organization needs to be successful.

Watch this live webinar recording where two of Axialent’s culture transformation experts, Thierry de Beyssac and Anabel Dumlao, talked to Tim Kuppler, Director of Culture and Organization Development for Human Synergistics, about the importance of intentionally managing culture and leadership development in an integrated way.

This article is part of a series on integrating culture and leadership change in culture transformation work.
5 Reasons To Integrate OCI-OEI And LSI Diagnostic Tools In Culture Transformation
Culture Change: For Culture to Change, Leaders Must Change
Culture Change: Measuring the gap makes the invisible, visible

In 100% of deals where significant value was lost, senior leaders in corporate and private equity firms reported that culture issues were the root cause.

If the data shows a 100% correlation, then optimism about cultural integration in mergers and acquisitions (M&As) seems, at best, negligent and, at worst, self-sabotaging.

According to PwC’s research report “How to Create Value Beyond the Deal,” senior leaders identify culture as critical to business success and essential for value retention in M&As. Yet, many proceed as if “this time” it will all work out, despite lacking a full understanding of cultural integration.

Better options exist than leaving money on the table due to optimism, inertia, or lack of expertise. The unnecessary suffering and permanent damage caused by poor cultural integration demand a new approach to help leaders merge separate cultures more successfully.

The Importance of Culture in M&As

“Buyers and sellers both are saying culture and people need to be the highest priority from day one.” — PwC

Culture is a well-known driver of value, but many leaders overestimate their competency and underestimate its importance—only recognizing its critical role in hindsight.

Key findings from the PwC report include:

  • 65% of companies (and 57% of private equity dealmakers) said cultural issues hampered value creation.
  • 83% of deals that lost significant value saw between 21%–30% of key talent leave the business.

McKinsey & Company agrees: “Understanding culture and proactively managing it is critical to a successful integration. This requires a comprehensive approach. Yet leaders often overlook culture, leading to poor results.”

Leaders typically excel at technical and tangible aspects of integration but frequently neglect the human side due to a lack of cultural competency—a costly oversight.

What Usually Goes Well (But Isn’t Enough)

Some aspects of integrations are often well-executed:

  1. Dedicated team-building time: Teams demonstrate openness, share concerns, and discuss opportunities.
  2. Strong leadership in action: Leaders step up to tackle challenges and drive tasks forward.
  3. High business knowledge: Both sides understand the business well but often lack knowledge of the human side of change.
  4. Role modeling by leaders: Some leaders intuitively embody the desired culture.

What Gets in the Way of Cultural Integration

A successful integration requires working from the inside out. Key barriers include:

  1. Ineffective mindsets: Shifting from fixed to growth mindsets and fostering new habits requires deliberate effort and practice.
  2. Poor listening skills: Leaders need to “listen to understand” and differentiate between opinions and facts. Miscommunication often creates barriers, despite good intentions.
  3. Lack of empathy: Teams need support to enhance self-awareness and practice empathy. Even well-meaning reassurances, like keeping existing processes, can unintentionally create disappointment.
  4. One-size-fits-all approaches: The acquirer’s methods may work well in some contexts but can become liabilities when dealing with different cultural values.
  5. Leadership impact: Leadership styles heavily influence how inspiring and engaging leaders are perceived to be. Many leaders lack self-awareness of their impact on others.

Starting Strong as One Team

To preserve the best of both cultures and create value together, here are key steps:

  1. Design a compelling vision: Make the merger a symbol of commitment to innovation, people, and long-term success. Use proven models like the Organizational Culture Inventory (OCI/OEI®) to build alignment and tell a cohesive story.
  2. Align culture and strategy: Engage joint leadership teams in exploring culture readiness and developing high-performance teams through individual and collective learning journeys.
  3. Co-create a culture plan: Empower leadership teams to collaboratively design a new organizational culture with expert guidance. Align the desired behaviors with senior leaders’ mental models.
  4. Integrate with business execution: Treat cultural work as a prototype in a business context. Implement a culture champions program to model behaviors, gather feedback, and ensure communication aligns with a common vision.
  5. Measure progress: Define tangible metrics to assess cultural integration and track progress effectively.
Download Case Study

Now that we have busted the belief that you need everyone on board in order to start a culture transformation process, we will add an additional layer to that belief — the belief or myth that you need to start such a process at the top, with the most senior leaders, the CEO or the Executive Committee.
But do you really need them to start?
Of course, it is an ideal scenario to have the top leadership of your organization leading the culture transformation efforts — the leaders who are role-modeling the behaviors of the desired culture and are fully engaged in the process. In our experience helping global companies with culture transformation, this only happen in about half of the cases.
Remember the story in the previous article about the large manufacturing organization and how we engaged with a single team at the time. Other teams took notice and engaged with the HR team to set the teams up with their own leadership development programs, and slowly the culture change in the organization began to grow more and more obvious. After four years of working with different teams, business units and leaders, the CEO started to take notice. The overall performance of the organization kept improving, and he realized the new organizational culture was the driver for this. The organization’s board, including the CEO, is now embarking on their own leadership development journey to take the culture transformation to another level. This program will cascade to other leaders in the organization who have not yet participated. The HR team never lost sight of their ultimate desire to change the culture, but they focused their energy on those willing to engage, eventually impacting the 56,000+ employees.
Instead of focusing on who is not on board (e.g., your CEO), how can you focus on who is? Just like the innovators and early adopters, can you find a leader or a team that has the energy, engagement and appetite to start something new? The more you focus on who is on board instead of focusing on who is not, the more likely you will see those who are, and there are more than you had imaged. You just didn’t see them.
Just think about when you had set the intention of buying a new car, for example. All of a sudden, you are much more conscious about the cars around you — the colors, the ones you want, the ones you don’t like, the model, the make. You see those same cars every day on your commute, but when you actually put your focus on them, you are more aware or conscious of them.