Senior leaders need a coach (about behaviour not business)
Gallup released some data yesterday on the engagement levels in Australian and New Zealand organisations. Two things stood out to me that are unusual.
1. Around 48% of Aussies and 41% of Kiwi's rported "significant stress" the day prior.
2. 50% of employees in both countries are quiet quitting - giving up
That is not good and points to the state of engagement in our organisations.
Engagement is poor, and 70% of engagement is explained by one factor - the quality of the manager - particularly middle managers and supervisors. Senior leaders, on the other hand, have a more systemic and enduring impact on engagement because they mostly determine the culture itself. My business exists to support this "C-suite" cohort through high impact coaching.
Culture is a choice
Organizational culture refers to the values, beliefs, behaviors, practices, and norms that define an organization. It’s the collective way an organization does things, encompassing its attitudes, experiences, beliefs, and values. Organizational culture is observed in the ways the organization conducts its business, treats its employees, clients, and the wider community. It also includes the extent to which freedom is allowed in decision making, developing new ideas, and personal expression.
Key components of organizational culture:
Shared Values: These are the core beliefs and attitudes that guide behavior in the organization.
Norms: These are the accepted codes of conduct or rules of behavior.
Symbols: These include logos, slogans, or other objects that represent the company.
Rituals and Ceremonies: Regularly conducted events that help reinforce the company's culture.
Stories and Myths: Past events or tales that have been kept alive to inspire and reinforce the organization’s values.
A good organizational culture promotes ethical behavior, innovation, engagement, and productivity. It attracts and retains talent and helps drive business performance. On the other hand, a negative culture can hamper business growth, lead to low morale, high turnover, and low productivity among employees.
Toxic culture creeps in when no-one is paying attention
A toxic culture in an organization is characterized by an unfavorable working environment that undermines employees' productivity, motivation, health, and well-being. Here are some key indicators of a toxic work culture:
Lack of Trust and Respect: In a toxic culture, there may be mistrust and disrespect between colleagues, leaders, and teams.
Poor Communication: Information might not be openly shared, and feedback, if given, is often negative or destructive.
High Stress Levels: Toxic cultures often cause excessive stress, anxiety, and burnout due to unreasonable workloads, constant criticism, lack of support, or fear of job loss.
Bullying or Harassment: Indicative of toxicity, workplace bullying, harassment, or any form of discrimination is common.
Lack of Recognition: In a toxic culture, employee efforts and achievements may not be recognized or rewarded.
High Turnover: Talent retention could be a significant challenge due to dissatisfaction, frustration, and a lack of growth opportunities.
Lack of Team Spirit: There's often a lack of collaboration and a sense of competition may be fostered instead of teamwork.
Unethical Behavior: Dishonesty, deception, or unethical conduct may be prevalent or even encouraged.
A toxic culture can significantly impact employee morale and productivity and can harm the company's reputation and bottom line over time. If not correctly and promptly addressed, it can also lead to legal issues for the organization. Organizations should strive to prevent toxicity by fostering respect, open communication, and inclusivity and by implementing strict anti-bullying and harassment policies.
The antidode to cultural toxicity is constructive senior leadership and accountability.
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