Episode 27: Impact of Change on Organizational Culture

by | Oct 31, 2024 | Podcast | 0 comments

Change is a constant in the business world. Whether it’s a new technology, a merger or acquisition, or simply a change in leadership, organizations are always evolving. But how does change impact organizational culture?

Culture is the personality of an organization – it’s the values, behaviors, norms, slogans, signs, symbols, and rituals that make up the work environment. It’s the “interstitial stuff,” the space between all the organs of an organization. Culture drives employee motivation, dictates decorum and unspoken expectations, and makes people proud to work somewhere.2 Lieutenant General George Flynn of the US Marine Corps summed it up nicely: “Culture equals values plus behavior.”

When changes are introduced to a company, they can disrupt established norms and routines, which can lead to uncertainty and resistance among employees. The introduction of a new software, for instance, might be met with resistance from employees who are used to doing things a certain way. In one instance, a small group of employees at a law firm resisted using a new software by changing the settings and reverting to their old ways of working with paper and spreadsheets. This resistance cost the company time and money, and ultimately required the company to reset the system and retrain employees.

Change can also shift organizational values, which can be especially challenging if the company has a long history and strong values.4 If those values aren’t reinforced, they become meaningless.1 A company that’s known for its integrity and trust, for example, may find it difficult to maintain its culture if it undergoes a major restructuring or downsizing.

One of the most important things leaders can do when implementing change is communicate transparently with employees. Explain the reasons for the change, the goals of the change, and how it will impact employees. Transparency is key to building psychological safety, where employees feel comfortable trying new things and voicing their concerns.8 However, it’s important to be mindful of oversharing, which can erode trust and damage morale.8 Leaders should strive to create a psychologically safe and supportive environment where employees feel comfortable sharing their ideas and concerns.

Another key to successful change management is to involve employees in the change process.9 This can be done by forming a guiding coalition of employees who are aligned with the goals of the change.10 It can also be achieved through co-creation, where employees have a say in how the change is implemented.7 When employees feel like they’re a part of the change process, they’re more likely to be supportive of it.

Leaders should also be mindful of the importance of training. Training should begin early in the change process, and should be ongoing to ensure that employees are comfortable with the new systems and processes. When employees feel confident in their ability to adapt to change, they’re less likely to resist it.

Change can be a challenge for any organization. But by following these tips, leaders can help to ensure that change is a positive force for their organization and their employees.

Check out our Workplace Culture Scorecard: https://harmoniousworkplaces.com/workplace-culture-scorecard/

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