Leading by Design
Issue No. 2
Can Middle Management fix Workplace Toxic Cultures?
Hey Reader,
Culture plays a critical role in nurturing a healthy environment for employees in our workplaces. Culture can be defined as the beliefs, behaviors, and interactions between individuals and teams. As leaders, communicating in ways that uphold a healthy culture have large impacts on these factors over time. This includes setting clear expectations, removing barriers, and integrating well-being goals into team objectives.
There are cultural values, and cultural norms. Company values are a set of ideals the group strives to live up to, and “walk-the-walk” on. Values should be used as part of decision making processes. How values are operationalized and part of employee’s everyday world, or how folks respond and work together are the cultural norms.
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While 92% of executives believe that improving their firm’s culture would increase the value of their company, only 16% of these executives believe that their own firm’s culture is where it needs to be.” – Journal of Financial Economics, 2022
When it comes to walking-the-walk of culture, although there is top-level leadership support and espousing of the company values, many are highly aware of the translation gap between the values on a page and the day-to-day embodiment. This is in part due to lack of values-integration through employee incentives and rewards programs. How is individual performance measured for example, or what % of values-aligned behaviors is part of an employees annual review?
Tension in business demands, negatively impacts team culture
In the same research, the two main factors hindering effective culture were lack of leadership time and investment, and failure to adapt or manage change – culture lags behind the business. In my experience, as changes are implemented there is little attention on the long-range and phased impacts on employees, norms and communication. There is also a palpable gap between meeting business and investor demands, and investing in the softer side of culture and long-range sustainable business performance. Results are wanted in-quarter or in-year, and other initiatives with longer or harder to measure performance are lower on the list for senior leadership – in part due to how their compensation is tied to stock performance and the average tenure of c-suite execs is around four years.
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73% of executives agree or strongly agree that corporate polices work against the culture.” – Journal of Financial Economics, 2022
Middle Managers are key to employee experience
Research studies consistently show that Managers have the greatest impact on employee well-being and retention. According to Gallup, managers have the greatest impact on employee engagement, with 70% of a team’s engagement influenced by their manager. In contrast, only 42% of managers say they feel “completely” empowered and capable of helping their company achieve its well-being commitments.
A quick, observable litmus test for your team’s unspoken culture is how often folks are asking each other for help and candid feedback. This shows a willingness to not know the answer to something, to be in a state of learning and frankly showing some vulnerability due to fear of social threat. How is seeking or giving help to another rewarded on your team?
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Interesting Bits & Bobs
There are a few really good resources if you want to go deeper alongside me this week:
- Fearless Culture: Culture Canvas Workshop How to
- Who said “We as scientists and health officials need to reach out to and work with the business community so that they become our megaphones.”… Former U.S. Surgeon General Jerome Adams referring to FAANG leaders.
- How 20m a week devoted to culture improves team mental health: Listen here to Morra Aarons-Mele’s Anxious Achiever podcast 🎧
- Sara Wachter-Boettcher wrote this article: Hey Designer’s, They’re Gaslighting You and I am here for it 🍿
I’d love to learn more about what problems you and your teams are facing. Don’t forget to put your own oxygen mask on first.
Warmly,
Alison
Curator & Community Coach
Alison Gretz, ACC
Executive Coach, future of work & Leadership Development thought leader, Mum to 2 small humans, prior leader to teams of hundreds.
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