This Week in Culture

Change Management is Changing 

Change management continues to perplex leaders despite years and years of frameworks and models being thrown at it. It’s time for an upgrade. 

First, why is change so hard? Change management is often a nightmare because it is treated as episodic in nature. The typical business approach to change management is from point A to point B: “Here’s B. B is fantastic. We’ve created an entire ‘awareness’ campaign around B. We are going to reorganize the team around B-friendly structures. We’re upskilling everyone on B. And we’re getting rid of everyone who is not on board with B.” This point A to point B mentality is what we see in change management today. 

The issue with this approach is that sometimes, we haven’t even fully gotten to B before we need to move on to C. Change management, when handled this way, feels like we’re constantly starting over from scratch. Every new change is a fresh start, leading to frustration and pushback. 

I saw this acutely at my time at Oracle. I was reporting directly to the head of cloud, a man named Shawn Price who has since passed away. He was tasked with “creating a cloud company out of an organization that had non-cloud DNA” (his words). This was a monumental shift for the company at all levels. The language of selling needed to change, the buyer changed, the mental models needed to change, and the structure needed to change. For example, the implementation consultants were eventually to be replaced with customer success teams. 

But this wasn’t an A to B change. As a cloud company, there are still new change dynamics every day in the form of new competitors, technologies, leadership, and everything else. Just last week, a large cloud company laid off their entire customer success team. Why? Because tech revenue drives higher valuations than people revenue, so they’re outsourcing customer success to their partners. The very roles we had created and nurtured are now being deemed expendable as companies look for ways to grow. 

Where can you start? 

Instead of treating change as a series of episodic events, we need to develop a muscle for continuous evolution. This is where the Culture Equation™ comes in. At Culture Partners, we support our clients by shaping how people think and act to get results. Our approach goes beyond simple awareness campaigns or structural reorganizations. We work to embed change DNA into the very fabric of your organization. 

Our research, including the Stanford study last year, revealed that the companies with the most significant revenue growth embraced adaptability as a mindset. We help our clients cultivate this mindset through targeted interventions and support, ensuring that change becomes a natural and ongoing part of their culture. 

By focusing on continuous evolution and the Culture Equation™, we empower organizations to navigate change seamlessly and achieve sustained success. So, where can you start? Let us guide you in building a culture of adaptability that drives results. 

 

Elsewhere In Culture 

Delta CEO Says CrowdStrike Tech Outage Cost It $500 Million

The recent tech meltdown at Delta Air Lines, triggered by a CrowdStrike outage, has resulted in a staggering $500 million loss and the cancellation of over 5,000 flights. This debacle exposed glaring weaknesses in Delta’s operational systems and has led the airline to take legal action against CrowdStrike and Microsoft. While the outage disrupted airlines and businesses globally, Delta’s sluggish recovery time underscores a dire need for robust crisis management and operational resilience. This incident is a stark reminder that a workplace culture focused on proactive tech management and rapid response strategies isn’t just a nice-to-have—it’s essential for survival. 

Delta’s ordeal highlights a critical lapse in accountability and preparedness. By seeking to hold CrowdStrike and Microsoft accountable, Delta is acknowledging a significant failure in contingency planning. This should serve as a wake-up call for all organizations to cultivate a culture that prioritizes rigorous testing, frequent system updates, and comprehensive disaster recovery plans. It’s not just about safeguarding operations; it’s about maintaining trust with customers and employees. Delta’s costly lesson should push other companies to reevaluate their practices, fostering a culture of accountability and continuous improvement to avoid falling into similar traps. 

Jeff Bezos’ famed management rules are slowly unraveling inside Amazon. Can they survive the Andy Jassy era?

Amazon’s famed Leadership Principles, once the cornerstone of its success, are now facing turbulence under Andy Jassy’s leadership. The recent return-to-office mandate, executed without sufficient employee buy-in, has sparked significant unrest among staff, who see it as a betrayal of the company’s core tenets like “hire and develop the best” and “earn trust.” This upheaval isn’t just about policy—it’s a litmus test for the resilience of Amazon’s workplace culture. The rigid adherence to these principles, which were sacrosanct under Jeff Bezos, appears to be unraveling, causing friction and uncertainty among employees who have long relied on them as a guiding force. 

This clash between old and new management philosophies underscores the critical importance of maintaining a cohesive workplace culture, especially in times of change. Amazon’s situation serves as a cautionary tale: a strong culture built on clear, actionable principles can drive innovation and trust, but it can also become a liability if not carefully managed and adapted. For any organization, the challenge lies in evolving these cultural pillars without diluting their essence. Companies must strive to balance adherence to foundational values with the flexibility to adapt to new realities, ensuring they continue to inspire and guide employees effectively. 

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