How to fix a toxic culture
There is much conversation in the media about toxic cultures. A toxic culture hurts the people, it hurts the company and their bottom line.
Who can forget the high profile case of UBER Founder/CEO Travis Kalanick and his toxic ‘bro culture’ which cost the company an estimated 23% of its IPO value, approximately $17bn and led to him resigning as the CEO.
The earliest references to a toxic workplace were as late as 2010-11, and talked about toxic workers, rather than a toxic culture. The work on the importance of psychological safety in understanding team effectiveness by Google and Amy Edmondson has brought it to the attention of the mainstream media.
It is easy to name something, and the term ‘toxic culture’ seems to stick. An internet search in early 2022 for ‘toxic culture’ brings up 3 trillion results
Which leads to the question; What is a toxic culture, and what can we, as change agents, do to fix one?
As change agents, we work in the most emotionally charged environments of any organisation. As a minimum, we should lead by example, creating a positive culture in the changes we work in.
The impact a toxic culture has on the people who work within it is huge; emotionally, intellectually and physically. MIT Sloan estimate that a toxic culture is ten times (10.4) more likely to be the reason you leave a company than your salary.
With humans being one of your most flexible sources of competitive advantage, a toxic culture quickly removes that benefit.
Being able to spot a toxic culture, and mitigate its effects, is an important skill in delivering a successful outcome.
This paper helps you spot a toxic culture, gives you the six causes of a toxic culture, and offers eight areas that make the most difference in fixing a toxic culture.
In summary
To fix a toxic culture, these EIGHT actions will make a big difference:
Give clarity: Be consistent in your actions.
Own it: Accept responsibility; call it out.
Be Open Minded: Seek to understand rather than judge.
Be Human: Build relationships, apply empathy.
Decisive Action: Take action and quickly, in the moment.
Value Each Other: Create a sense of safety and belonging.
Self Talk: Change the way teams talk about each other.
Lead by Example: Know the impact of your behaviour and actions.
Each of these help create a culture where your humans feel safe, nurtured and are able to do their best work.
We identified SIX causes of a toxic culture:
Pressure: Shareholders push for value at all costs. Shrinking organisations operating in crisis mode.
Capability: Lack of leadership capability. Leaders don’t know where to start or how to deal with conflict or resistance.
Fear: It is too risky to try something different, fear of failure and being blamed. Afraid to challenge. Low levels of trust.
Awareness: This is the way things have always been done. The rituals and games are established and not challenged. The culture is normalised.
Empathy: Little humanity, respect or empathy. Leaders are afraid of being seen as weak or vulnerable. No joy.
Accountability: Little accountability for actions, no consequences for bad behaviour. Toxic behaviour goes unchallenged.
We would like to thank Arjan, Nabeel, Arlene, Lisa, Emma, Anna, Dima, Kim, Rosie, Tracey, Ed and Ian for their contributions, as part of changeXchange. To find out more about the activities of the changeXchange, and to join us for an upcoming brainstorming, see our website or follow us on LinkedIn
The insights were generated in Feb 2022.
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