Taking Positive Risks To Address The Organisational Culture Crisis

What we already know

The Chartered Institute of Internal Auditors survey (March 7th, 2022) has, once more, highlighted the absolute importance of recognising that business culture is a ‘critical risk’ that can adversely affect aims and long-term sustainability. The identified key risks are human resources (64.5%), inclusion, equality, and diversity (34.1%) and health, safety, and staff wellbeing (31.6%). They encourage boards and senior leadership to accept and address these risks because of the potential impact of a negative culture. 

But we already know this. There is sufficient data to tell us that the overall cost of not tackling this at the human and organisational level is billions of dollars. We have global public examples going back decades, for example, Enron. 

What we don’t seem to admit is that not acting is far more expensive in terms of human cost, financial impact and productivity. We have allowed history to keep repeating itself. Few have the courage to name and sever the toxicity. The District Attorney’s (DA) Office in Philadelphia, USA, had a very negative reputation. Almost immediately after his election (2017), Larry Krasner, incoming DA, outlined his plans for change and removed key instigators (based on knowledge of their actions). Of course, there were repercussions, but he is now on his second term and shifting negativity. 

While such actions are high risk, we do need to address these cultures and take positive risks, in a more measured way. We need healthy organisations, and some do exist.

A healthy organisation remains true to its purpose and does no harm to humans or the planet. There is a nourishing culture and structure within which people flourish to achieve the purpose. They address unhealthy elements while promoting the positive with collective accountability. What can we do to become more proactive? 

Recognise the conditions that allow adverse cultures to continue

A few can create and maintain negativity by their behaviours even if there is a positive board statement. Some will possess power and others will claim it. Most create cohorts who do their bidding to perpetuate the negative. All this intimidates people who fit in with the zeitgeist rather than contesting it. 

Organisational structures and systems supposed to protect do not do their job. There could be little trust in internal justice systems (complaints, ombudsperson services), human resources or internal audit. These may not exist or be inept. Leadership may be involved or not tackle the issues for a variety of reasons, e.g. self-preservation, considering that a statement about the expected culture is enough and not discuss audit results. 

Understand and work with individuals who feel justified in using negative behaviours

A minority who uses these behaviours have characteristics of psychopathy, sociopathy, Machiavellianism, or narcissism. They are usually strong individuals, and few will approach them to discuss the impact of their behaviours. We can encourage them to change, but the most we should expect is more appropriate acts with minimal internal change. 

Most perpetrators are insecure and use adverse behaviours as protection to mask personal insecurities. A manager could feel that their team is more expert than them, so they belittle and hide vital information. They may not know what else to do; they could have learned by watching others. A senior leader was very perplexed that his team had given him a middling rating. We asked him to think about why. “Well, I told someone they smelled, and I shouted at another once. My manager did this to me, and I don’t see the problem.” 

To help such individuals, we need to understand them and their motivations. Then help them change while recognising that they will have positives that are often not noticed. 

What we use to highlight negativity

We can involve internal auditors, use culture surveys, complaints, and HR data. Some methods are reliable, valid, and generalisable but few are holistic and inclusive. They often focus on one aspect, such as bullying and harassment, diversity and inclusion, staff attitudes, or culture itself. What we need is an approach that looks at both the positive and the negative with all in the organisation. Lloyds Banking Group investigates helpful and inhibiting factors in articulating attributes of the Financial Services Culture Board Framework. 

And we must act on results. In the last twenty years, there have been several findings that there is discrimination in the NHS, the most recent set released a few weeks ago. Why are we still shocked? Who didn’t want to let go of their privilege, power, and position?

What more can we do to avoid organisational culture crises?

Part of the problem is that people do not know what to do next. We need guidance and indexes on what should be present in a healthy organisation in terms of attitudes, behaviours, and organisational frameworks. 

People want decency. They need a culture that allows and encourages that with backup from the board and leaders. Individuals must feel that they can look after their mental and physical health, getting the support they need. Inclusion should become a fact, not an aspiration. Positive and healthy work practices should be the norm. We compromise our purpose and must acknowledge this. People need resources and suitable work environments. Individuals should feel they can collectively address negativity and take responsibility for it, alongside working for and being positive. 

Much of this will remain at the level of rhetoric until boards and leaders become more activist and braver. They must take the risks, know that they must be more selfless, think first of those they serve, plan holistically, inclusively and act sustainably. All should show expected behaviours.   

This needs to be built on what already exists. For example, encouraging people to discuss culture and self-care in supervision and meetings, enabling networks (that may exist) where people can share knowledge on self-care, and discuss problems. 

Who can evict negativity? It is us. 

About the author: Anna Eliatamby, clinical psychologist, workplace well-being expert and editor: Healthy Leadership and Organisations: Beyond The Shadow Side. £14.99.