Change the Culture, Change the Game

1. Culture is a choice: Manage it or be managed by it.

Either you will manage your culture, or it will manage you.

Culture's pervasive influence. Every organization has a culture, whether intentionally cultivated or not. This culture, defined as the way people think and act, profoundly impacts success or failure. Leaders must recognize that culture is not a passive element but an active force.

Alaris Medical Systems. Alaris transformed its culture from one of survival to one of accountability, leading to a dramatic increase in share price and revenue growth. This turnaround highlights the power of proactive culture management.

Take control. Leaders must make a conscious choice to manage their culture, shaping it to align with desired outcomes. Neglecting culture allows it to develop haphazardly, potentially undermining strategic goals and hindering performance.

2. The Results Pyramid: A framework for culture change.

Experiences foster beliefs, beliefs influence actions, and actions produce results.

Interconnected elements. The Results Pyramid illustrates how experiences, beliefs, and actions are interconnected. Experiences shape beliefs, which drive actions, ultimately determining results. This model provides a roadmap for understanding and influencing organizational culture.

Culture produces results. The culture of an organization directly produces the results it achieves. If the results are undesirable, leaders must examine and adjust the underlying cultural elements.

Altering the pyramid. By strategically intervening at any level of the pyramid, leaders can initiate a cascade of change. However, focusing on both the top (actions and results) and bottom (experiences and beliefs) is crucial for lasting transformation.

3. Accountability: The cornerstone of a high-performing culture.

At the end of the day, greater accountability produces greater results.

Accountability defined. Accountability, when done right, is a positive and enabling principle, not a punishment. It involves taking ownership of results, both individual and organizational, and proactively seeking solutions.

Above and Below the Line. The Oz Principle introduces the Steps to Accountability: See It, Own It, Solve It, and Do It. These steps represent Above the Line thinking, contrasting with the Below the Line blame game and victim cycle.

Culture of Accountability. A Culture of Accountability fosters transparency, teamwork, effective communication, and a focus on results. It empowers individuals to take initiative and contribute to organizational success.

4. Define R2: Clarity on desired results is paramount.

It makes no sense to initiate any culture building activity or process unless you intend to increase the capability of the organization to deliver results.

R1 vs. R2. R2 represents the desired results, which may differ from the current results (R1) due to increased difficulty, a change in direction, a need for resource deployment, or the development of new capabilities.

Alignment around R2. It is crucial for leaders to ensure that everyone in the organization is aligned around the key R2 results. Confusion about results can lead to poor execution and undermine the culture change effort.

Opthometrics example. Opthometrics successfully improved its business results by aligning its Brand Leadership Team around R2 and conducting a pilot test to demonstrate the impact of culture change. This pilot test showed a significant impact on the business before the company made a go-forward decision to launch the culture change effort worldwide in all of its retail stores.

5. Actions speak louder: Shift behaviors to drive change.

The single most important change in actions that needs to occur during a time of cultural transition is the shift to greater accountability.

Accountability in action. Shifting from A1 (current actions) to A2 (desired actions) requires a focus on greater accountability. This involves getting employees to invest fully in achieving results and take personal ownership of their work.

Three levels of change. The Input/Output Change Model identifies three levels of organizational change: temporary, transitional, and transformational. A Level Three Change, requiring a significant shift in thinking and acting, is essential for full-scale cultural transition.

Stop, Start, Continue. To facilitate the shift to A2, leaders should identify what actions need to be stopped, started, and continued. This analysis helps to clarify the desired behaviors and guide the change effort.

6. Beliefs drive behavior: Target beliefs for lasting impact.

If you change the way people think, you will change the way they act.

Beliefs matter. Focusing on beliefs, the bottom of the Results Pyramid, is crucial for lasting change. By helping people adopt new beliefs (B2), leaders can motivate the desired actions (A2) and achieve R2 results.

Common misconceptions. Misconceptions about working with beliefs, such as the belief that they are too hard to discern or change, often prevent leaders from addressing this critical element of culture.

Categories of beliefs. Beliefs can be categorized as Category 1 (easily changed), Category 2 (strongly held), or Category 3 (deeply ingrained). Culture change efforts should primarily focus on shifting Category 1 and 2 beliefs.

7. Experiences shape beliefs: Create the right environment.

The experiences you provide create the beliefs people hold.

Experiences are foundational. Experiences form the foundation of the Results Pyramid, shaping the beliefs that drive actions. Leaders must become proficient at creating the right experiences (E2) to instill desired beliefs (B2).

Amy's Ice Creams. Amy's Ice Creams demonstrates the power of creating experiences to manage culture. By fostering a fun and creative environment, the company cultivates a unique brand identity and achieves market success.

Four types of experiences. Experiences can be categorized as Type 1 (clear and meaningful), Type 2 (requiring interpretation), Type 3 (dismissed as normal), or Type 4 (undermining the culture). Leaders should strive to create Type 1 and 2 experiences.

8. Alignment is key: Ensure everyone is on the same page.

Alignment is common beliefs and concerted action in collective pursuit of a clear result.

Defining alignment. Alignment involves adjusting the parts of the culture so that they are properly positioned in relation to one another. It requires common beliefs and concerted action in pursuit of a clear result.

Forces of misalignment. Various forces, such as lack of clarity, poor communication, and conflicting priorities, can push an organization out of alignment. Leaders must be vigilant in identifying and addressing these threats.

Leadership Alignment Process. The Leadership Alignment Process provides a framework for achieving alignment, emphasizing participation, accountability, discussion, ownership, communication, and follow-up.

9. Culture Management Tools: Focused Feedback, Storytelling, and Recognition.

The C2 best practices are high-leverage activities that help move the boulder forward and build the desired culture.

Focused Feedback. Focused Feedback, both appreciative and constructive, helps to clarify desired behaviors and provide guidance for improvement. It should be centered on the Cultural Beliefs.

Focused Storytelling. Focused Storytelling involves sharing stories that exemplify the Cultural Beliefs, reinforcing their importance and showing people how to put them into practice.

Focused Recognition. Focused Recognition provides positive reinforcement for demonstrating the Cultural Beliefs and achieving desired results. It can be implemented through recognition cards or other forms of appreciation.

10. Lead the change: Model the desired culture.

Every leader is empowered, by virtue of his or her position, with the visibility and authority either to spearhead or to undermine the transition to the new culture.

Leadership's crucial role. Leaders must take personal ownership of the culture change effort and model the desired behaviors. Their actions send a powerful message to the organization about the importance of the transition.

Three leadership skills. To effectively lead culture change, leaders must develop three key skills: the skill to Lead the Change, the skill to Respond to Feedback, and the skill to Be Facilitative.

Methodology for Changing Beliefs. The Methodology for Changing Beliefs provides a structured approach for leaders to respond to feedback and create experiences that shift beliefs. It involves identifying the belief, stating the desired belief, describing the experience, seeking feedback, and enrolling others in providing feedback.

Last updated: March 13, 2025