This is part of an ongoing series of blogs based on the latest Level Five Associates book, The Power of Being All In.
“While your culture should drive decision-making throughout the organization, consider it a North Star, not a straitjacket.” — Erin Meyer in the Harvard Business Review, July-August 2024 issue.
What Do We Do With a Broken Culture? 
As mentioned in our last blog, every culture seems to fit into one of five categories, which we’ve characterized as Levels 1 to 5. The first two are more common than they should be. If we find ourselves here, it is time for concerted action.
- Level 1—The “Nametag” culture: This ecosystem is a loose confederation of self-centered individuals acting in their own personal interests. Typically, these groups fragment easily, especially when the going gets tough.
Since these cultures are only held together by the idea that there’s something in it for every person, and whenever it seems that value proposition has eroded, the next step is to bail out. Sometimes it takes months or years before the dam breaks, such as was the case with Enron and Bernie Madoff’s pyramid scheme, but it’s inevitable that this fragile culture will disintegrate at some point.
- Level 2—The “Follower” culture: This environment has few leaders and many followers, and only those with tangible ownership are vested in the company’s well-being. Like the nametag ecosystem, the true loyalty to the organization lies in the hands of just a small number of stakeholders.
Family-owned businesses can sometimes go down this path, since true ownership is often based on bloodlines rather than competence or character. The same is true for companies seeking profit for profit’s sake. High turnover and low levels of buy-in are generally accepted here as the “cost of doing business.”
These are cultures of compliance. Most leaders know if their organizations fit into one of these two levels; the problem lies in confronting the facts. How do we address this challenge? Here are some initial steps to take in recognizing your cultural shortfalls and addressing them:
- Conduct a third-party survey of your climate. Ask a recognized expert to come in and measure how your culture operates. Be prepared to accept and process the results.
- Develop and implement an executive leadership training program. Start at the top and put your C-suite team into an extensive leadership program, including 360 evaluations. Those who want to change the culture will participate; the ones who should probably leave will be resistant to change.
Enjoy the journey!
This blog post is partially based on the book, “The Power of Being All In.” You can download the first chapter for free at this link. Or, if you’d like to purchase the entire book (available in paperback, eBook, and audiobook), it is available on Amazon.
