How can leaders take steps to enrich and more effectively leverage their culture to affect organizational change?

It is possible for an employee to change a company’s culture but several issues must be acknowledged.

1.)    The company must have a conduit for change. An idea submission program or a new product development suggestion effort. Regardless of whether a company makes good use of these is based on how much importance or emphasis management places on hearing those suggestions.

2.)    There must be an effort to hire the type of employee who is willing to suggest change. Some employees are satisfied with the status quo where others are of the personality or character type that they question and make suggestions to established practices.

3.)    It must be an industry where the company can make changes. For example: Any company that is tech-related or internet-related, in our present economy and business climate can expect profitable returns if what it offers is attractive to mass audiences. Now take an industry such as coal-fired power plants. Government regulations, agency regulation overlap, extreme costs for startup and shutdown and competition from not only nuclear (among others) but green resources such as wind and solar power mean that there is far less opportunity for a company to extend itself to new ideas or change.

An employee with an effort to change a company’s culture who is met with the working environment to appreciate that effort and an industry that has room for change or improvement will be met with a greater chance at making change.

 

Are there conditions under which change is not possible? If so, what would such conditions be?

In the space industry, two things are required for success, aside from a fully-functional rocket: Vector and Velocity. You must have the right angle and you must have the right amount of energy applied to send that rocket into its orbit or to the point where it reaches its target.

If one desires to affect change in a workplace, they must have similar conditions available to them. They must be in a position where they can suggest change and they must have the mental strength to outlast the detractors, nay-sayers and others who will present opposition to them. It is far more difficult to suggest change if one is in a position where their voice is not heard, accepted or appreciated.

In some organizations, the perception is that the company is currently on the “right track” and that efforts should continue without change. If an employee happens to have insight into external forces that could affect the potential for the organization’s success in the future, then being able to voice those concerns would be critical and in some organizations, that is simply not available. A good example of this is with hedge fund manager Michael Burry. He foresaw the impending collapse of the sub-prime mortgage industry of 2007-8 and bet against it. Everybody saw him as foolish and their perception of him was that he was wasting the funds of his company, Scion Capital. When the sub-prime market collapsed, banks, investment houses and others lost significant amounts of money but Burry profited by over two billion dollars. He knew investors were intoxicated with the fast profits of doling out sub-prime mortgages to risky and not-fully qualified home buyers and then reselling them. Despite doubt from within his own firm and doubt from those around him, he was able to lead his firm to a profit of greater than 400% on that investment gamble.

Profitability often leads people within an organization to believe that their current vector and velocity are correct but often that is where concern about changes in the market should be most carefully studied. Change is inevitable and should never be ignored given a comfortable status.

 

 

Leaders must not only recognize that change is not only inevitable but that change is constant. Regardless of the product, progression in technology, working environments and competition precipitate change. Embracing change as a part of the business activity is key to leveraging their future.

Leaders must also work to incorporate the idea of embracing change with every level and every person in the organization. When the group mindset is that change is not only inevitable but something that is simply part of the forward effort of an organization, then reaction to change will be better received.

Leaders should recognize those who support and supply ideas that improve current efforts or create new opportunities for the organization. Without new ideas, a company will be stagnant in their market offerings and ultimately fall behind. Those organizations who do seek new ideas are those which will push ahead of the rest.