Table of Contents
- What Aspects of Company Culture Can Leaders Control?
- 7 Ways Leaders Can Focus on Culture
- 12 Myths About How Leadership Impacts Company Culture
- Why Recognition Matters for Company Culture
- Ways Leaders Can Recognize Excellence
- Invest in Your Culture
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The would-be analyst of leadership usually studies popularity, power, showmanship, or wisdom in long-range planning. But none of these qualities is the essence of leadership. Leadership is the accomplishment of a goal through the direction of human assistants—a human and social achievement that stems from the leader’s understanding of his or her fellow workers and the relationship of their individual goals to the group’s aim.
To be successful, leaders must learn two basic lessons: People are complex, and people are different. Human beings respond not only to the traditional carrot and stick but also to ambition, patriotism, love of the good and the beautiful, boredom, self-doubt, and many other desires and emotions. One person may find satisfaction in solving intellectual problems but may never be given the opportunity to explore how that satisfaction can be applied to business. Another may need a friendly, admiring relationship and may be constantly frustrated by the failure of his superior to recognize and take advantage of that need.
In this article, first published in HBR’s September–October 1961 issue, W.C.H. Prentice argues that by responding to such individual patterns, the leader will be able to create genuinely intrinsic interest in the work. Ideally, Prentice says, managerial dominions should be small enough that every supervisor can know those who report to him or her as human beings.
Prentice calls for democratic leadership that, without creating anarchy, gives employees opportunities to learn and grow. This concept, along with his rejection of the notion that leadership is the exercise of power or the possession of extraordinary analytical skill, foreshadows the work of more recent authors such as Abraham Zaleznik and Daniel Goleman, who have fundamentally changed the way we look at leadership.
Although the more recent work of authors such as Abraham Zaleznik and Daniel Goleman has fundamentally changed the way we look at leadership, many of their themes were foreshadowed in W.C.H. Prentice’s 1961 article rejecting the notion of leadership as the exercise of power and force or the possession of extraordinary analytical skill. Prentice defined leadership as “the accomplishment of a goal through the direction of human assistants” and a successful leader as one who can understand people’s motivations and enlist employee participation in a way that marries individual needs and interests to the group’s purpose. He called for democratic leadership that gives employees opportunities to learn and grow—without creating anarchy. While his language in some passages is dated, Prentice’s observations on how leaders can motivate employees to support the organization’s goals are timeless, and they were remarkably prescient.
Attempts to analyze leadership tend to fail because the would-be analyst misconceives his task. He usually does not study leadership at all. Instead he studies popularity, power, showmanship, or wisdom in long-range planning. Some leaders have these things, but they are not of the essence of leadership.
A version of this article appeared in the January 2004 issue of Harvard Business Review.
Executives are often confounded by culture, because much of it is anchored in unspoken behaviors, mindsets, and social patterns. Many leaders either let it go unmanaged or relegate it to HR, where it becomes a secondary concern for the business. This is a mistake, because properly managed, culture can help them achieve change and build organizations that will thrive in even the most trying times.
The authors have reviewed the literature on culture and distilled eight distinct culture styles: caring, focused on relationships and mutual trust; purpose, exemplified by idealism and altruism; learning, characterized by exploration, expansiveness, and creativity; enjoyment, expressed through fun and excitement; results, characterized by achievement and winning; authority, defined by strength, decisiveness, and boldness; safety, defined by planning, caution, and preparedness; and order, focused on respect, structure, and shared norms.
These eight styles fit into an “integrated culture framework” according to the degree to which they reflect independence or interdependence (people interactions) and flexibility or stability (response to change). They can be used to diagnose and describe highly complex and diverse behavioral patterns in a culture and to model how likely an individual leader is to align with and shape that culture.
Through research and practical experience, the authors have arrived at five insights regarding culture’s effect on companies’ success: (1) When aligned with strategy and leadership, a strong culture drives positive organizational outcomes. (2) Selecting or developing leaders for the future requires a forward-looking strategy and culture. (3) In a merger, designing a new culture on the basis of complementary strengths can speed up integration and create more value over time. (4) In a dynamic, uncertain environment, in which organizations must be more agile, learning gains importance. (5) A strong culture can be a significant liability when it is misaligned with strategy.
What’s Your Organization’s Cultural Profile?Leaders can use this worksheet and accompanying questions to determine what kind of culture currently operates in their company.
How to Shape Your CultureStep-by-step advice for arriving at an aspirational target
Convergence MattersHigh levels of employee engagement and customer orientation correlate with closely aligned views among employees regarding which cultural characteristics are salient in the company.
Context, Conditions, and CultureWhen assessing a culture’s strategic effectiveness, leaders must keep in mind two germane external factors—region and industry—and three internal considerations: alignment with strategy, leadership, and organizational design.
The complete Spotlight package is available in a single reprint.
When leaders connect their people to these pillars, employees are 373% more likely to have a strong sense of purpose and 747% more likely to be highly engaged while at work.
Leaders can help their people feel connected through frequent one-to-one conversations. One-to-ones allow leaders to
regularly check in with employees, provide mentorship and coaching, show appreciation, and reinforce culture. Tools like O.C. Tanner’s Culture Cloud can help you show appreciation, connect with employees, and reinforce and strengthen organizational culture.
What Aspects of Company Culture Can Leaders Control?
Leaders have a tremendous impact on company culture. They set the agenda, prioritize work, manage, lead, and delegate. Strong leaders provide a sense of vision, purpose, mentorship, and inspiration to those they lead.
Today’s diverse workforce is reshaping what it means to achieve personal and professional success. Traditional leadership styles and types of leadership culture are not resonating with younger generations who thrive upon more growth and coaching.
For example, our research shows that only 54% of employees report their leaders know what they do while at work, a mere 26% feel their leader encourages collaboration, and just 59% believe their leader values them.
The relationship between a leader and an employee is a critical connection. If the link is weak or negative, our research also shows that employees will be disconnected from other aspects of culture as well.
7 Ways Leaders Can Focus on Culture
Leaders significantly affect an organization’s culture, so doing a good job at inspiring others should be a big focus of every leadership strategy. This can be done a multitude of ways, but here are seven that stand out:
1. Be a role model. Those at the top must exemplify the culture they preach—no exceptions. If trust is ever breached, a solid apology (and, depending on the situation, perhaps even consequences) better follow in a timely manner.
2. Observe for insights. Sometimes just sitting back for a bit and soaking in what’s happening around the office will be quite telling. Take in subtle details about the work environment and employee behavior. You might be surprised by how much can be learned when there is a moment to step back.
3. Provide an open communication platform. When anyone at any level has access to participate in Q&A sessions with senior leaders, answers can be given on the spot. This helps employees be heard, but it’s also a good way to reinforce the company’s goals and values.
4. Take meaningful action on feedback. Asking for feedback is only as useful as the action that follows. Feigning a listening ear won’t go unnoticed.
5. Empower employees. A culture of autonomy allows for more problem solving and greater innovation. When employees are trusted to contribute (with accountability), they will outperform everyone’s expectations.
6. Remind workers that failing isn’t fatal. Failure is inevitable, no matter who you are. It just means that chances were taken and growth is occurring. Don’t punish people for trying, but encourage them to learn from what went wrong and make improvements the next time around.
7. Recognize a job well done. Employees who are openly shown appreciation at work are happier and more productive. When they know their contribution matters, that what they do is meaningful, and that their superiors take the time to express thanks, employees are more loyal to their team and the company as a whole.
12 Myths About How Leadership Impacts Company Culture
It is more apparent than ever that today’s workforce needs an effective leadership style that transcends changing organizational principles.
Effective leadership shapes the employee experience, engagement, and wellbeing, all which are critical to a thriving workplace culture. To help leaders know where to begin, we’ve looked at 12 myths about how leadership impacts company culture:
1. Culture is only about how people interact with each other. FALSE. Yes, it’s good when people can just “get along” with each other. However, culture entails much more than that—it takes into account unspoken behavioral norms as well. Things like beliefs, clarity, commitment, purpose, and outcomes are all big players in an organization's culture.
2. A company’s culture should organically develop. FALSE. Culture is rooted in the everyday values, interactions, and behaviors experienced at an organization. This means that without intentionally laying a foundation of good principles, the wrong type of culture can take hold quicker than can be imagined.
3. Leaders can’t rebuild company culture. FALSE. A broken culture can be a byproduct of poor leadership; therefore, strong leadership can repair and rebuild. However, new (or improved) leaders can better connect with employees for the common purpose of achieving a more positive, supportive company culture. Creating a dialogue and sense of accomplishment where people feel valued will help establish a culture of appreciation.
4. Culture is HR’s responsibility. FALSE. A common misconception is that the human resource department is the sole instigator and cultivator of organizational culture. The fact is, every leader and employee must be on board for a cohesive and meaningful culture to propagate.
5. Culture is all about having fun. FALSE. Although “fun” work cultures seem to capture a lot of attention, having social events and employee perks can only go so far. Ultimately, having the right processes in place—propped up with strong support and supplemented with good attitudes—will drive positive culture much further than field trips ever could.
6. Company culture doesn’t inform performance. FALSE. There’s no getting around it—company culture correlates closely with its performance on just about every benchmark. When employees have confidence in their leaders, they’re more willing to work hard for them. Good leadership influences efficiency and effectiveness, which goes on to dictate success.
7. Mentorship is ineffective. FALSE. One of the most useful things a leader can do is focus on developing the people who report to them. Leaders are in the unique position to advocate for and mentor their teams. Organizations should teach managers how to support their employees, instead of just being the gatekeeper to their internal careers.
8. The annual review is effective. FALSE. When done incorrectly, relying on performance reviews alone can actually cause more harm than good, as they don’t inspire or improve overall performance. Frequent and effective feedback is the new standard.
According to Gallup, managers who provide weekly feedback have employees who are 5.2x more likely to agree that they receive meaningful feedback, 3.2x more likely to be motivated to do outstanding work, and 2.7x more likely to be engaged at work.
Regular check-ins provide more of an opportunity to ensure employees are aligning their work to purpose, finding development opportunities, and creating a more impactful dialogue.
9. Creating a strong culture costs a lot of money. FALSE. Big brands have big budgets that can go toward implementing and promoting a great culture, but that doesn’t mean it has to be that way. The biggest investment in organizational culture takes is time. Putting in the effort and practicing some patience will pay off more in the end than only throwing cash at the problem.
10. Pay raises lead to a better culture. FALSE. This is an antiquated thought. While fair compensation is necessary for a better culture, other things also come into heavy play. Providing positive opportunities and interactions, being inclusive, and having integrity lead to great overall satisfaction.
11. Appreciation isn’t that important. FALSE. C-suite leaders often have trouble emotionally connecting with employees on the front line, but praising their positive behavior exemplifies strong company values. Recognition programs are an excellent way to embed appreciation into daily work because they hold people accountable in a positive way, no matter their role.
12. Employee recognition doesn’t matter. FALSE. Standup recognition moments provide opportunities for leaders (and peers) to let employees know their work is meaningful and show they are a valuable part of the company.
Why Recognition Matters for Company Culture
Many of the 12 myths about company culture ultimately have to do with:
• Valuing what employees have to offer with their skills and experience • Recognizing employees’ worth to the success of the organization
• Appreciating employee efforts and loyalty
When all this is done openly and in an established, consistent way, all members of the organization from top to bottom can share mutual trust, a strong sense of security, and reciprocal loyalty.
Ways Leaders Can Recognize Excellence
There are an endless number of ways leaders can encourage a thriving team culture through recognition. A few events that can be recognized are:
• Daily wins • Team-building triumphs • Big victories • Safety improvements • Service operations • Health achievements • Workplace anniversaries • Holidays
• Company-wide celebrations
Here are just a few tangible ideas that professional companies have used to communicate value and appreciation:
• Certificates or plaques • Gift cards to stores or restaurants • Watches or jewelry • Electronics • Housewares • Flowers or plants • Art or sculptures
• Concert or event tickets
Leaders can choose which products to award their employees, but oftentimes letting the employee choose for themselves is even better. A company-wide recognition program, like O.C. Tanner’s Culture Cloud, can make it easy for leaders to appreciate and recognize their people in a way that also strengthens and reinforces your organizational culture. Either way, make sure the award appropriately reflects the accomplishment.
Invest in Your Culture
Want more information? The 2021 Global Culture Report offers simple, actionable steps you can use right away to create an engaged, thriving workplace culture.