Upgrading Culture for Growth and Transformation

Summary

In the webinar titled 'Upgrading Culture for Transformation and Growth,' moderated by Laurianne McLaughlin and sponsored by HCL Software, Per Hugander, a strategic advisor and professor at Hult International Business School, discusses the importance of culture in organizational transformation. Hugander emphasizes that while a clear strategy is crucial, it is the ability to handle unforeseen challenges that often determines success. He introduces two key skills for navigating complexity: perspective-taking and psychological safety. Perspective-taking involves understanding different viewpoints to foster innovation, while psychological safety encourages team members to share ideas without fear of retribution. Hugander shares practical approaches and models to integrate these skills into an organization's culture, using the case study of Swedish Bank SEB as an example. He also addresses the challenges of implementing such cultural shifts and offers strategies to overcome skepticism and resistance within organizations.

Takeaways

• 🚀 **Culture Upgrade for Transformation**: Organizations need a culture upgrade to effectively transform or scale, as traditional structures are not equipped to handle complex challenges.
• 🤔 **Understanding Complexity**: The need for a culture upgrade arises from the complexity of challenges that organizations face during transformation or growth, which traditional decision-making processes struggle to address.
• 💡 **Key Skills for Culture**: Perspective-taking and psychological safety are identified as key skills that, when learned and ingrained in a culture, can lead to better problem-solving and decision-making.
• 🧠 **Perspective-Taking Defined**: It involves moving outside one's own viewpoint and genuinely understanding another person's perspective, including their motivations and history.
• 🔐 **Psychological Safety**: Vital for surfacing important information and ideas, it encourages team members to take interpersonal risks and share their thoughts without fear of repercussions.
• 🌐 **Influence Through Models**: Robust models are necessary to provide a structured approach to the abstract concept of culture, helping to base thinking and actions on proven frameworks.
• 📈 **Practical Application**: The case study of Swedish Bank SEB demonstrates how a skills-based approach can be used to upgrade culture, leading to innovation and recognition as a leading financial institution.
• 🔗 **Linking Skills to Outcomes**: Repeated successful outcomes from using perspective-taking and psychological safety help solidify these skills as effective tools within the organizational culture.
• 🏆 **Championing Change**: Finding a culture champion within the organization who is willing to invest time and effort in the process is crucial for successful cultural transformation.
• 📚 **Educational Resources**: Articles and research on perspective-taking, structured dialogues, and boosting psychological safety provide a foundation and depth to the skills-based approach.
• 👥 **Group Dynamics**: Effective workshops for skill development typically range from 6 to 20 participants, allowing for structured dialogue and active engagement in learning and applying the skills.

Q & A

What is the main focus of the webinar 'Upgrading Culture for Transformation and Growth'?

The webinar focuses on the importance of culture upgrade in organizations for successful transformation and growth. It discusses the need for a culture that embraces complexity, supports decision-making, problem-solving, and aligns with the organization's strategy for innovation.

Who is the key speaker of the webinar and what is his area of expertise?

The key speaker is Per Hugander, a strategic advisor and a professor of practice at Hult International Business School. His work focuses on decision-making, problem-solving, and culture, and he has been published in the Harvard Business Review, MIT Sloan Management Review, and Knowledge at Wharton.

What are the two key skills that Per Hugander emphasizes for dealing with complex challenges in organizations?

The two key skills emphasized by Per Hugander are perspective-taking and psychological safety. Perspective-taking involves understanding topics from others' viewpoints, while psychological safety is about creating an environment where people feel comfortable sharing ideas and challenges without fear of judgment or repercussions.

How does Per Hugander define 'psychological safety' in the context of organizations?

Psychological safety, as defined by Per Hugander, is the willingness to take interpersonal risks. It is vital for problem-solving and decision-making as it encourages people to challenge each other, share accurate information, and voice their ideas without fear of appearing less competent or aggressive.

What is the 'Capability Trap' as described by Nelson Repenning?

The 'Capability Trap' is a theory that suggests organizations and individuals are poor at prioritizing long-term gains over immediate costs. Even when aware of the benefits of certain practices or skills, such as psychological safety, many fail to implement them due to the immediate investment of time and effort required, despite the potential for significant future rewards.

How does Per Hugander propose to overcome the 'Capability Trap'?

To overcome the 'Capability Trap', Per Hugander suggests shortcutting the feedback loop by providing immediate benefits or a taste of the successful outcomes right at the beginning. This approach aims to keep people engaged and motivated to continue investing time and effort into developing the necessary skills.

What is the role of a 'culture champion' in the process of cultural transformation?

A 'culture champion' is a leader within the organization who is committed to investing time and effort into the cultural transformation process. This individual leads by example, drives the process within their team, and helps to maintain the momentum and interest in the training and development of new skills.

How does the concept of 'perspective-taking' differ from 'active listening'?

While active listening is a part of perspective-taking, perspective-taking goes a step further. It involves moving outside of one's own viewpoint and genuinely trying to understand the topic from another person's perspective, including their motivations, history, and experiences. Active listening, on the other hand, often occurs from within one's own frame of reference and can be limited to hearing what confirms one's existing ideas.

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What are some strategies to promote psychological safety among team members?

Strategies to promote psychological safety include practicing on less sensitive topics to get comfortable with vulnerability, framing discussions as learning questions rather than debates, and using perspective-taking as a way to foster curiosity and understanding. It's also important to create a structured environment where everyone's input is valued and where the focus is on exploring the topic rather than winning an argument.

How can leaders effectively work with other teams that have not been trained in the same skills?

Leaders can use their individual skills of perspective-taking and psychological safety when working with other teams. They can introduce the vocabulary and concepts gradually, be clear about their intentions, and model the behavior they wish to see. By being open about their approach and inviting others to understand their perspective in return, leaders can bridge the gap and foster more collaborative interactions.

What is the optimal group size for conducting a workshop on these cultural transformation skills?

The optimal group size for such workshops is between 6 to 20 people. Smaller groups of around 8 to 9 are ideal for more intimate discussions, but the process can be adapted to work with larger groups as well. The key is to maintain structure and ensure that everyone gets a chance to participate in the dialogue sessions.

How can organizations ensure that the cultural transformation process leads to tangible outcomes?

Organizations can ensure tangible outcomes by linking the new skills to successful outcomes as quickly and as often as possible. This involves applying the skills to real-world challenges, sharing stories of success, and using these examples to recruit new promoters of the cultural change. It's also important to involve skeptics in the process and convert them into believers who can advocate for the new culture.