The handicap of a head start
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In the previous blog in this leadership series, we discussed how organizations struggle with implementing decentralized leadership. This challenge is closely linked to broader societal and economic developments. Today, we will delve deeper into the mechanisms behind these difficulties and how we can effectively address them.
Drivers as Culture Carriers
Every organization is driven by certain underlying values and motivations, also known as drivers. These drivers determine how we solve problems, build structures, and collaborate. 5
However, they are not static. Due to changes in society and the economy, dominant drivers eventually become less effective, sometimes even counterproductive. Moreover, an effective tool can be overused to the point where it starts to work against you.
The pursuit of efficiency is a prime example. For years, a focus on performance, control, and efficiency helped organizations grow. But when this way of working goes too far, it actually leads to inefficiency. Consider, for instance, the Dutch Tax Authorities, where a desire for efficient fraud control through algorithms and a rigid focus on control led to scandals, or the HSL (High-Speed Line), where the pursuit of efficiency through outsourcing resulted in a loss of expertise, leading to technical and organizational problems.
The once successful remedy then becomes worse than the disease.
Why Change Is So Difficult
Cultural change is complex, especially when an organization has operated in a certain way for years. The people who built this culture often strongly believe in the system that made them successful. Promotions reward this behavior, leading like-minded individuals to leadership positions. The result? An organization deeply entrenched in a particular way of thinking and working.
This is reinforced by individual frames of reference. People view the world through the lens of their drivers, which makes it very difficult to understand other perspectives, let alone accept or even appreciate them. In my previous blog posts, we saw that a pragmatic, results-oriented and structured, controlling way of working has brought growth to many organizations.
But the approach has run its course, times have changed, and there is a call for a more people-centric approach. However, this requires a fundamentally different perspective on people, success, and collaboration.
Organizations that prioritize business results have a completely different view of people than those that prioritize employee well-being. While they may try to work with 'more consideration for people' in pursuit of better results, they often lack genuine belief in the new approach and the long-term commitment needed for success. If results are slow to materialize, they quickly revert to familiar methods, trapping the organization in old patterns.
Towards a New Balance
One of the biggest challenges for organizations is finding balance. How do you change without completely abandoning the strengths of your current culture?
This tension requires a conscious and targeted approach where new drivers are gradually introduced. At the same time, it's crucial to prevent corrections from overshooting and thereby causing new problems. Based on a vision for the change you plan to roll out systematically, you could, for example, seek out employees within the organization who have already developed the 'new' drivers more strongly, and attract new people who, in their driver profile, possess enough of the required drivers while having little resistance to the drivers of the existing culture.
Organizations that find this balance are better able to respond flexibly to changes in society and the economy. They understand that leadership is not about choosing the ‘best’ approach, but about finding the right mix that suits today's challenges.
The Consequences of Not Changing
If organizations fail to adjust in time, problems escalate, with Blokker as a recent example, which clung too long to its traditional retail models and recognized important internet opportunities too late. The inhibiting effect of a culture that has been successful for too long (and thus become entrenched) and the need for change become even more palpable and urgent due to factors such as a tight labor market, rising raw material prices, and inflation. However, translating these signals into timely action remains a challenge.
In short...
Organizations face the challenge of adapting to a changing world while simultaneously remaining true to what has made them successful. This requires a deliberate approach with more attention to people and less focus on results and control, though it's important not to throw the baby out with the bathwater.
By taking the time to reflect on old drivers and being open to new perspectives, organizations can break through the inhibiting effect of their culture and prepare for the future. The central question is: how can an organization better understand its drivers and respond to them? We invite you to share your insights and experiences with us!
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