Leadership and Culture: Why Leaders Should Destroy Obsolete Cultures
Leadership has many definitions and perspectives. To
understand leadership many scholars and managers have tried to contrast it with
management.
The popular distinction is that, while management is
concerned with order and stability, leadership must be heavily focused on
helping organizations adapt to their environment (business operational,
economic, political) etc.
The role of leadership has gained more prominence in a world
where technical skills abounds and where worthy captains that can lead
organizations are in short supply.
Leadership itself is not a function that exists in a silo
from where it directs the activities of organizations and nations. Leadership
operates through a mediating concept called culture.\
What is culture? Here in Nigeria, many people will agree
that culture “is a way of life”. I will share a definition of culture from
renowned social psychologist- Hofstede.
”Culture according to him is a collective programming that makes
members of one group different from members of another group.”
This programming of people in organizations affects their
actions and ultimately, the health of the organization. It has ultimate effects
in everything an organization does. Have we heard the saying that; Culture eats
strategy for breakfast?
In a world where organizations have to constantly disrupt
themselves to meet customer needs, the culture of an organization is very
important.
Some cultures favor coping with the demands of this
information age, some don’t. It is not organizations that have market
leadership that survive, it is organizations that change easily that will be
able to capture value in the future.
In the light of this, leadership must worry about the
culture in their organization. This then begs the question, why do some
organizations have a favorable culture and some don’t? I think the right
question is how is culture formed?
Edgar Schein in
his book: Leadership and Culture explains that culture is a result of the initial
adjustment of an organization to its environment. Perhaps, we should employ
story to get a vivid picture of Schein’s explanation.
Yinka and
executive who used to work in a top tier bank in Nigeria leaves to set-up an HR
consulting practice, she gathers a team of 5 people to work with her. In the
course of their work, they encounter many challenges in business development
and marketing.
Yinka’s team
obviously tried many things to cope with their business environment, but a few
things succeeded. It is the few things that succeeded that create and establish
the culture of the firm. Her team and organization will stick to what worked
when they were struggling and that becomes their culture.
What if things change? What if what worked for them becomes
obsolete? How does Yinka get her team to change their mental models so that the
organization can be sustainable? This is the typical dilemma of an average founder.
The organization grow up to a certain point where the behavior and culture can
no longer scale.
A culture that produced $1million may not be able to
generate $10million.
In situations like this, the work of leaders is to destroy
the culture of the organization. Edgar
Schein also makes a point that the role of leader’s is to make and break
culture.
Leaders guide teams to establish current cultures, thus they are
empowered to destroy a culture that no longer works.
Typically, a cultural analysis is done to understand the
dominant and sub-cultures in the organization. There are individuals who embody
these types of culture, they also need be identified.
Management needs to create a change management program where
these stakeholders are invited and involved in seeing the danger of carrying on
with a culture that is no longer useful.
Here management must teach the new thinking or new proposed culture.
They must also determine the early adopters and make them champions of this new
thinking.
Company wide consultations must be done to assess impact and
trauma that the new thinking may cause. The purpose for this is that people go
through what is called psychological reactance (People don’t want to lose
control of their future) and psychological insecurity (People fear they have
become less useful because of changes). The fears of people must be allayed.
People know they have to learn new skills; both soft and
hard and this bring undue stress. It is normal. Management must show support by
providing psychological safety and window period for people to change.
Leadership in the information economy is not short on
information and knowledge. What leadership is short of is the willingness to
destroy a culture that does not work.
It is the leaders who can drive change through “obsolete cultural destruction” and
organizational learning that will be the Level 6 leaders.
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