Leadership plays a significant role in work culture and organizational strategy. Yet many who are in charge seem unprepared for the responsibility. Seventy-six percent of employees agree that management sets the tone for workplace culture. But 40 percent say that managers fail to engage them in honest conversations, 36 percent say that their managers don’t know how to lead a team, and 58 percent cite their managers for their reasons for leaving their jobs, according to SHRM’s 2019 Culture Report.
Moreover, businesses lost nearly a quarter of a trillion dollars over the last five years due to employee turnover triggered by poor work culture and bad managers. With these stats in mind, if organizations want to stay afloat, they can’t wait on making improvements to work culture and organizational structure.
Our Guest: Dr. Phillip Meade
On the latest #WorkTrends podcast, I spoke with Dr. Phillip Meade, co-owner and COO of Gallaher Edge, a management consulting firm that applies the science of human behavior to create highly effective cultures. Dr. Meade has led teams and organizations for 25 years, serving at various levels of management. Following the Space Shuttle Columbia accident, where the shuttle broke up as it returned to Earth, killing seven astronauts, Dr. Meade developed a plan for the organizational and cultural changes necessary for return to flight and create leadership behaviors to drive sustainable change.
In the case of the Space Shuttle Columbia, I wanted to know: What work culture influences played a part in the accident, and what was done afterward to pivot to a more functional organizational structure?
“Part of the issue was overconfidence. We thought that we were safe after we got up into orbit. Also, many felt that we couldn’t raise questions or talk about problems,” Dr. Meade says. “We had, for so long, this deep ingrained ethos that failure is not an option. And there were a lot of people in key leadership positions that believed that there was no way to fix the problem on orbit, even if we discovered it. And so, there was a resistance to even look and see if there was a problem.”
When he was asked to lead the work culture change, he noticed that many were highly dedicated individuals who wanted to be at work. It was then that he realized the difference between an effective organizational culture, and what’s merely a good organizational culture where people are happy, or enjoy working there.
“A truly effective organizational culture also drives the strategy of an organization. In the case of NASA, that means driving organizational safety and leads to high organizational effectiveness. So, that was one of the big keys to solving and changing the organizational culture.”
Changing Organizational Structure: Key Takeaways
So, when it comes to changing organizational structure, one of the key takeaways, according to Dr. Meade, is that organizational work culture is an emergent property of a complex adaptive organizational system. This means that it’s a combination of beliefs and behaviors of employees within an organization.
“While leaders are responsible for the organizational culture, it still lives between the ears of the employees. This is why we say that we use the science of human behavior to really work on and affect organizational culture because that’s where it lives,” Dr. Meade says. “It starts with the self, with the individual and it starts from the inside out. And so, I think that that’s one of the main keys about working with organizational culture.”
Another key takeaway, says Dr. Meade, is that the culture must align with an organization’s business strategy. It isn’t just about creating the happiest place on Earth to work. Sure, it’s great if you can achieve such a feat, and high employee engagement has been shown to increase productivity. However…
“If you’re increasing productivity towards goals that don’t align with your strategy then, there’s no point to it,” says Dr. Meade. “You want to make sure that the organizational culture you’re creating drives business results and aligns with your organizational strategy.”