The Myth of Organizational Culture

Note: this article is part of The Transatlantic Debate Blog series, which forms a conversation between Dr. Katrin Muff and Dr. Kathy Miller Perkins on business sustainability. Read  more posts from The Transatlantic Debate Blog here

There is no such thing as organizational culture, there is only people culture. 

I am curious to explore the difference between a role and a person, an organization and its people. This difference can be illustrated by considering a familiar scenario: What is the culture of the White House? I am suggesting here that it is not the White House that has a culture – the White House is an institution that has a purpose. Those who live and work at the White House represent the people of the White House and these people, how they work together and how they are together define the culture of the White House as an institution. A different set of people will result in a different culture, even if the institution remains the same in its purpose. Individuals may have an influence on the appearance of an institution or organization and depending on the governance structure, also have an influence on the purpose. And yet, the culture is an attribute defined by a group of people, not an institution or an organization. This insight may influence our understanding of how a culture may be changed. Could it be that cultural change is much more about changes that take place at the individual level, rather than those that can be master-minded at the organizational level? Let me attempt to reflect this by considering our lessons learned through the cultural change at Business School Lausanne.

There is a seemingly small but possibly substantial difference between what Organizational Development experts call an “Organizational Culture” and what is really going on. I have become aware of this difference in a reflective talk with BSL’s Holacracy implementation coach Christiane Seuhs-Schoeller of evolutionatwork. We reflected on Business School Lausanne’s (BSL) biggest difficulty and darkest hour in the transformation from a hierarchical to a self-organizing organization that somehow relates to the people space.

As you may recall, Holacracy is a highly sophisticated operating system for self-organization that explicitly takes care of organizing decisions around the “work” that relates to the purpose of the organization and how it very clearly does not organize how people work with each other. Despite hearing and reading everything we could about this, we entered into this transformation and felt entirely unprepared for what was waiting for us.

As we focused on organizing work-related decisions in a power-distributed, non-hierarchical way, learning the complex and sophisticated Holacracy rules that provoked and forced a behavioral change in every single person taking part, we did not pay attention to something crucial: what do we do with our personal relationships above and beyond strictly work-related discussions. In our darkest months, busy negotiating the shadows cast by difficult change, we entirely neglected these personal relationships, trusting that all we needed was work-talk.

In hindsight, we now know that there is a huge need to deal with and find solutions for personal relationships. This is not something a “tribe meeting” can fix as Holacracy may suggest. It is one-on-one work, not something that can be masterminded and implemented across the board. Personal relationships are apparent in every single moment that people work together – in the same space or around a common purpose; rather than being an occasional moment around the coffee machine, they dominate all interactions. Purely work-related decisions form the exception in such exchanges, something we have become able to distinguish thanks to Holacracy, which forces a particular and awkward talk-protocol when work is concerned. As such we would start work-talk with a sentence that sounds like, “In my role of ….., I would like to talk to you in your role of … about …”. And this is where the conversation shifts from a personal talk to a work-talk where the two people share specific accountabilities they can expect within their cooperation.

Such a situation is in stark contrast with the more typical situation where a person with a superior position casually strolls into an office of one of her or his subordinates, leans against the doorpost and in a collegial tone starts a friendly conversation that, depending on personal affinity, is either relaxed, hearty or a bit tense. Typically, somewhere towards the end of that nice chat, the boss comes up with some new expectation, deadline reminder, urgent action to be embraced or a long-term project to ponder. Depending on the managerial style of the supervisor, she or he either checks back about the feasibility of this requests or just strolls out of the office, fully expecting the subordinate to take her/his request as an order. This is a normal mix of personal and work relationship that all of us who work in a normal hierarchy are used to and know by experience in all of its wonderful – and less wonderful – shades of conscious or unconscious manipulation.

Self-organization crushes such situations by rendering them inacceptable in one way or another. It is impossible for any individual to walk into the office of anybody else and expect them to do something just because his/her seniority dictates that their “great idea” becomes an action on someone else’s to-do list. Anybody who has not lived self-organization has no means of truly understanding the implication of this. It makes no sense and any straight-thinking person wonders how anything that needs to get done, does get done. This is where Holacracy and other self-organizing operating systems tend to fail. A leader cannot fathom giving up her or his power and truly trusting that other individuals will not only step up into the space created by defining clear accountabilities in roles, but will have so many more ideas in these roles than could ever have been imagined by one supervisor alone. This trust is a leap of faith that seems to be a big ask for leaders.

At BSL, we were lucky that this was not a problem. As a leader, I was very keen to let go of the implicit power my position held and to focus on activities I could not spend enough time on but where I felt I could add true value to the organization. Given that letting-go was not our main issue (although, despite my wish to let go, I had to check my instincts for a good year!), a deeper issue emerged as a potential deal-breaker in transforming organizations. This is what I am fascinated by: the distinction between what an organization is and what a group of people is.

An organization is indeed NOT a group of people that work together. An organization, and this distinction is crucial, is a “thing”, a legal entity with a very specific purpose that subsequently serves as a vehicle to employ people and resources to realize that purpose. A group of people consists of individuals who, together, form the group. An organization possesses a “culture”, no more than my teacup can possess a culture. My teacup may look a certain way by having a certain shape and color and material, but it has no culture. In the same way, an organization may house its employees in a certain type of building, paint its walls a certain color or serve food of a given quality in its canteen; however, these attributes do not constitute culture. The only aspect of an organization that can have a culture is the people. There is people culture, not organizational culture. If you want to look at what it takes to change culture, you need to look at what it takes to change the individuals who, together, are the people. This is an insight that is not fully embraced in organizational change theory or organizational development. Organizational change in this sense would imply a change of the organization’s purpose or structure, activities or locations, but not of its people. Organizational development cannot mean that its people develop but that the organization grows through new products and services, locations, contracts, partnerships etc.

The reason I feel this distinction is important is that I have a hunch that, by peeling back this layer called “organization” when we talk about changing the culture, we may discover true levers of change to enable cultural shifts in organizations. I am fascinated by this as I still don’t know how our own cultural change came about at BSL. And I was there closely observing it! What happened in these dark months and what came out and into the light after it? When trying to answer this question, examples of individual human actions come to mind. Acts of courage, love and care. All of which are entirely unrelated to any role or accountability. These acts of humanity are what have touched me and possibly others – as individuals, not in a role or a responsibility. Alex sharing his new Chinese tea leaves and showing me how to pour a cup of tea as I walk in tired from a long outside meeting. Denitsa standing up and giving me a big hug as I walk in to say hi. Yasmina cracking a joke as I walk by that makes me stop and see how she is doing, as a person not as a colleague delivering her to-do list. It is Aurea that closes her work notebook and shares how her friend is doing.

These moments which are entirely and totally disconnected from any follow-on comment that says, “and hey, would you mind printing me x and quickly running me this or that report?” or, “hey, since we are chatting, have you heard back from x on y?”. We don’t do that anymore. We were forced to separate these kinds of conversations by learning how to have power-free conversations among roles in a journey to replace our hierarchy. Awkward, coded language that has nothing human or fun in it. But it does its job, it provides a safe space for anybody with a certain responsibility to do the very best she can to embrace this responsibility with all the passion and knowledge and freedom to innovate that she can put into it, given other priorities of other responsibilities she may also have. What happened in these dark hours is that we reduced all of our conversations to such coded, awkward language, and next to that each of us dealt with the pain and the frustration that such cold exchanges created in our own ways. To all the varying degrees of incapacity that humans possess. Some started gossiping, others started to moan and complain, some formed small groups that tried to super-analyze it all and solve it for the team, some retreated in their caves, feeling alone and rejected by a system that was inhuman. All of us, in one way or another, felt alone, helpless and overwhelmed, and all of us reacted to it through the large variety of dark shadows that are a part of our human characters.

Until the human light started to shine through and some started to reach out in caring conversations, daring to question endless complaints by asking, “do you want help or do you just want to complain?”; some started to share their pains and how they went about dealing with them with their coach or in therapy. Somebody organized tea for everybody. Somebody else brought in a homemade cake. Some people started to have really honest and painful conversations with each other. In these early days, everything felt raw and we were all exhausted. Emotionally affected. Small groups of individuals formed who felt more affinity for each other and much energy was spent discussing a problem that nobody could name. Pockets of resistance against the transformation became loud and forceful and the pain was in front of all of us, all the time. The atmosphere was dim, and some people fell ill. They could not understand the coldness of Holacracy and the inhumanity it seemed to require. People who didn’t perform were suddenly very exposed and position power didn’t protect anymore. Difficult talks requiring courage were needed to end long working relationships that probably could have been addressed long before but were hidden due to an overlap with personal relationships. More and more we learned to separate these relationships and slowly, very slowly, too slowly, the benefits started to emerge.

We had focused on identifying work benefits – and we reported many of these, experiencing them with increasing rapidity. The degree and extent of self-initiative is simply mind-blowing. We have moved from a group of people who each felt overwhelmed with the amount of work we needed to do to a group of people open to listen to new ideas, suggestions and opportunities, and ourselves coming up with innovative new, additional things we can do. Where did this space suddenly come from? Our plates were full before – I had long stopped daring to bring in new projects as I feared the reaction of a team that was clearly already overstretched. How come these same people now had ideas far beyond what I had ever dreamt of bringing in? How come, solutions for problems nobody even acknowledged before suddenly were implemented without anybody even knowing? How come costs were reduced where before there was no alternative? How come a suggestion for improvement was suddenly met with “tell me more” rather than “I have no time”? These are all “just” work-related benefits that brought tremendous benefit to the organization and these deserve being studied to be better understood.

What we didn’t focus on was what would happen to our relationships. And this is where more miracles happened. Our human relations have deepened; we know today more about each other than we ever did before and we are forming more of a family in a true sense than ever before. It is wrong to use “we” and “us” as a term. This phenomenon is an individual one and builds on the individual care for somebody else. Massimo and I are sharing the difficult moments we both experience right now seeing our parents with health issues. Carlo and Branko share their worries about their kids during our upcoming company ski-weekend. Denitsa inspired us with daily emails in the holiday months sharing insights about positive psychology from her current Master’s studies. As I present a key note at a big business event, I see the faces of my colleagues in the audience whose smiles encourage me to say what I want to say in clear language. We are all signed up for a course in non-violent communication. Our stakeholders (students and faculty) tell us that it is easier to engage with us, that we listen better and have more time and space for them as human beings, not just as transactional problems. I notice myself that I am careful in responding with a personal comment to emails that I receive. I am friendlier, warmer and more open, and I like that very much.

In our team, a feeling has spread that says “we are cool” and we are proud to belong together. Strength-spotting has become a past-time. Laughter is easier, humor more present and even after a long, tough day at work, I walk out feeling much better in my body and certainly in my heart and soul. Denitsa had asked me midday, “how is your day going” and I was profoundly touched. What a nice question and rather than complaining about all the things that I had going on, I took a quiet breath and I realized, I was having a really good day!

There is a miracle that has happened in front of my eyes and I don’t understand it quite yet. I remain curious and do want to understand it better. For if I can describe it better, others can benefit from such “organizational change” that really is “people change”, and that would be just great! My hunch is that the differentiation between the organization and the group of individuals that make up the people is key. When I worked for Alcoa, it was not the organization I admired and adored as much as its people. It was not “being the best aluminum company in the world” that made my soul sing, it was the positive opportunities I was given, and the leader’s interest in hearing a twenty-four-year old’s opinion on strategy.

Author: Katrin Muff, PhD

Active in thought leadership, consulting & applied research in sustainability & responsibility, and directing the DAS & DBA programs

Onto higher grounds – Holacracy at BSL after the initial 9 months of birthing

Our all-team meeting carried an entirely different energy than our initial meeting in late August last year. While at the start, everybody in the team was politely and cautiously positive, well, politically correct might be a better term, we now have a team with members that no longer hesitate to express their personal sentiments about their insights and learnings about where we are. That may sound simple but represents a huge shift in how far we have come as a team and what collective and individual work it took to break down the proper facades of polite, superficial engagement with the truth of the deeper struggles, resistances, blind spots and shadows, but also the deep personal learning, the enthusiasm, unlikely transformations and breakthrough. The team has gained in color, flavor, diversity of opinion, in authenticity and in honest relationships.

I am not sure to be able to identify the individual elements that brought us here, but I can try sharing my perspective. To me, Holacracy has been a weekly if not daily reminder of my personal shortcomings and challenges, of where there is room to improve, opportunity to let go, to investigate uninvestigated convictions and beliefs. All of which have triggered a journey of personal development of an intensity that I have been missing in recent years. I had forgotten what it means to work on myself and within myself. The shared journey we have been at together with the BSL team has brought this notion back into the center of my life and I feel much more connected to myself than I have felt in a while.

I had the chance to shed light into my shadows and I have jumped on the opportunity to use a coaching method to work with the most urgent thing I wanted to personally improve: my tendency to express frustration and impatience in an aggressive email. Six weeks later and rich in learning, I have understood that my deeply ingrained values have stood in my way causing this tension in me: one set of my values had to do with wanting to change the world – at all cost, including over-committing myself; another set of values related to me honoring my inner space and seeking deep connections with other. Looking at my shadow I saw how these two sets of values could end up cancelling each other out – creating distance with those I wanted and needed to work with in an attempt of changing the world, destroying exactly what I had wanted most: a deep connection. Sharing such learnings may surprise but by now I am entirely at ease of sharing this with my colleagues and with you. Holacracy opened up that space. This does not mean that everybody does or must share what is going on within themselves. There is full freedom to also share nothing, and some of us are happy with that, too.

9 months into our collective transformative journey, it feels a bit like the initial birthing process is completed. We have had at our last full day work session with Christiane, our Holacracy coach, and five members of our team are currently spending four days in Vienna taking part in a Holacracy practitioner training. We haven’t invested anything like this into our team and our development and I am sure both the coaching and the four team days as well as the training have done much to change our understanding of who we are together as a team.

A few months ago, some members have talked about lost trust and about the team spirit having gone away. We have very much struggled with the separation of work roles and personal soul space. It felt so artificial, so sterile, in the beginning. We didn’t know anymore what to do with our relationships, our culture, our ways of relating. It took months and months for us to slowly experience to what degree we have been mixing work and personal relationships, how we use relationships to get work done and how work issues stand in the way of seeing each other as persons. Some work issues didn’t get addressed because of personal relationships, some personal relationships suffered as a result of tensions related to work issues. I struggled so much with the projections of others, and I still don’t always feel that I am seen as just the person I am when I am having a cup of coffee or lunch with a colleague. Positions and titles and old hierarchy habits do still creep in. What I say still counts as more than it should and sometimes I think I need to go away for this to really dissolve. I had tried to shut up for three months and have since learned to frame what I say as “just an opinion” or “just a pitch” when I am not speaking from any role I am energizing. Yet, it takes more than me to change all of that. We all are required to bring so much courage and openness and vulnerability to work and we are maybe just now ready to start understanding what it takes in terms of safe spaces where we can expose our weaknesses and problems in the spirit of learning and developing forward. One step at a time.

To me, that one step at a time is clearly the best thing Holacracy brought to me. Rather than masterminding re-organization or strategy, or solving any complex issues, my biggest learning right now relates to trusting that one step at a time is all that is needed and the very likely best way to solve any complex issue. Steps in Holacracy are tensions and tensions are positive. That is learned by now and acquired. Yet, there is so much that lies still ahead of us. One of the future challenges is how to bring in our faculty and our students into a more self-organizing, power distributed organizations. Deliberately developmental company (DDC) is what they call places like ours; and we want to share such experiences with our students who come to BSL to learn about how to be responsible leaders in a fast evolving world. Organizing around purpose is one important element of that and it has brought a dynamic of innovation at BSL that was entirely unimaginable just 9 months ago. We have come a long way on our journey from static individual performers to an inter-connected agile organization in just 9 months. I am so grateful to my colleagues for this journey, after many lonely years, I feel that I have partners and peers again I can truly work, share, play and co-create with. And this is just the beginning!

Katrin Muff, PhD

Active in thought leadership, consulting & applied research in sustainability & responsibility, and directing the DAS & DBA programs

 

What do Sustainability, Inclusion and Organisational Transformation have to do with Leadership?

Hint:

BSL professors have taken a long hard look at leadership and sustainability and have a strong vision of what is needed to make transformative organizational change a real buzz and not just a string of jargon. We know it won’t be easy, it involves mindset, culture and habits. We know that even when all these important elements are taken into consideration the hurdle of willingness and the resilience to push through the discomfort of uncertainty in order to sustain the change, remains.

There are courageous leaders working throughout industry to make this happen and BSL is looking to bring a selection of these people together to dialogue, share insights and learn how we each are contributing to make this happen. May 10th 2016, we’ve invited 30 companies to bring their know-how to the table. BSL brings its own secret sauces; our grass roots expertise, millennials’ insights and a fervent desire to convene a conversation that honors those who are willing to create change.

If you are running a team, a department or company and would like to receive information on the outcomes or reserve a place at the table on a second courageous leadership conversations in June contact: Mary.Mayenfisch@bsl-lausanne.ch.

Author: Nadene Canning, BSL Professor

Nadene Canning