Categories
Behavior Leadership People

How to Avoid Cultural Debt

In July 2020 we began a conversation about culture with an assertion that culture is the sum of all of the behaviors in your organization. We also noted that, in general, culture tends to modify our behaviors and yet individual behavior can also shape the culture of your organization. This is why culture is constantly evolving. Good leaders behave in a way that highlights and supports the culture of the organization. Conversely, toxic people diminish your culture.

Subsequently, we have talked with many of you about how individual behaviors influence culture and how culture modifies, or constrains, our behavior. Overwhelmingly, we agree that while culture typically helps to modify our behaviors we each have one or two examples of individuals who have shaped culture. Both positively and negatively.

Back in July we said that culture is often shaped by the worst behaviors that leadership is prepared to tolerate and our conclusion was that managing behaviors is preferable over managing people. 

Building on this point, tolerating poor behaviors actually contributes extensively to cultural debt in organizations. Cultural debt accrues when individuals undermine the values, attitude, and beliefs embedded in your organization. When leaders and employees don’t address these behaviors directly it acts as a tax, or interest payment, on the business. These taxes come due sometime in the future and are often the underlying reason for poor business outcomes. Other impacts can be seen in employee engagement, employee turnover, and business results. 

Allowing poor behavior to continue unchecked means that you may well experience “Hemingway’s Law of Motion: Gradually, then Suddenly”. In his 1926 novel, The Sun Also Rises, Hemingway’s character Mike, when asked “how he went bankrupt, responds “Two ways. Gradually and then suddenly.”

The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.

Rudiger Dornbusch

This is very much they way cultural debt operates. If we tolerate it and let it go unchecked we create this gradual grinding on the business and then one day we are surprised by the sudden impact of our culture.

All of a sudden, things seem to come to a head.

How to avoid “Suddenly”

  • Have a defined set of values, beliefs, and behaviors.
  • Communicate broadly and consistently connect actions and results to values, beliefs, and behaviors.
  • Immediately address behaviors that are inconsistent with the cultural expectations.

Of course, avoiding suddenly is really a story of fixing gradually. Having a standard by which to measure interactions is useful. Actually taking action when behaviors do not meet expectations is a more important action. Unfortunately, all to often, we see poor behaviors go unchecked and gradually becomes suddenly.

Categories
Behavior Complexity People Simplicity

How complexity gets in the way of leadership, culture and wellness.

Photo by Andreas Klassen

Modern management theory teaches us to create leadership positions with accountability for a broad scope of operations.  Basically, a hierarchy shaped like a pyramid with defined spans of control. “Successful” leaders are generally found to grow their scope of authority through internal and external advancement, growth of their business enterprise, both organic and through M&A. During this time their day to day becomes more complex. They have more touch points with subordinates, peers, senior leaders and external stakeholders. There are more moving pieces to manage, more issues to resolve, and more solutions to implement. Change is inevitable: market changes, customer needs change, and employee needs change. In addition, special projects, industry events, networking, and planning & reporting activities all draw on a leaders ability to be successful. 

Soon enough many reach burnout and stay in a position where they are ineffective. This has, since 1968, been referred to as “The Peter Principle”, an observation made by the Canadian educational scholar and sociologist, Dr. Laurence J. Peter, whereby employees are often promoted to their level of incompetency.

Complexity places pressure on three critical resources; time, energy, and capability. Time is finite for all of us and however much we attempt to do more with less there are only 24 hours in a day! Energy and capability differ from individual to individual but eventually it all catches up to us. 

What complexity does is prevent you from doing what good leaders should be doing. Leading through influence and trust, mentoring and developing teams and planning for the future both from a business and talent perspective. Good leaders don’t just get results, they develop the next generation of leadership. 

Complexity and leadership is partially what drives culture and behavior in your organization. Your words, actions, and behaviors show people what it’s really like to work at your organization. They show people who you really are, how to interact with you, and they mimic your behaviors.

The other impact is on the overall wellness of the leader, their direct reports, and their personal life. Complexity in the work place, being present with family, having ‘me’ time all draw down on the time, energy, and capability. This often leads to inner feelings of not being good enough, imposter syndrome, and lower self worth. Subordinates and family can become resentful, mistrusting, and resigned to your way of being. Resignations of staff, divorce, and estrangement are not uncommon and can often be attributed to an over aggressive work ethic caused by complexity.

For sure, there are hundreds of great leaders business across the globe, but there are thousands of mediocre ones and millions of future leaders.

Take a moment to think about the level of complexity that you deal with on a day to day basis and the impact it has on your being. In fact, I encourage you to take 30 minutes after reading this to ask yourself the following questions:

  • How many meetings do you attend a day?
  • Which of those meetings are really effective?
  • How much time do you spend informing others on status?
  • How would you describe your listening style, how would others describe it?
  • How much time did you spend yesterday on developing others?
  • When did you last spend time thinking and reflecting on your day?
  • How much time do you spend thinking about the future of the business?
  • Do you know who is looking for a job in your span of control?
  • How do you personally define success?
  • Where are you in that journey towards success?
  • What of all of your daily actions make you feel energized and fulfilled versus drained and discouraged?

Be honest with yourself. Write down your first thought, don’t over think it. When you look at your answers some things will become clear to you. Reflect on all your answers but pay particular attention to those answers which might require more consideration.

We’d love to hear from you. How much complexity is there in your organization and how does it impact you as a leader or as a future leader? For the courageous, send us the answers to your questions and we would be more than happy to be a sounding board for your reflections.

Categories
Adoption Complexity Innovation People Process Simplicity Technology Transformation

How to talk to your CEO about your Transformation Journey

If you are about to embark on a transformational journey, or have already begun your journey, follow these guidelines and increase your chances of success.


  • Lead with the business process 100% of the time
  • Adoption is 90% behavioral change
  • Always start with an 80% solution
  • Innovation is 70% team diversity
  • Simplicity is 60% stepping back and looking at the big picture
  • Context is 50% of people’s understanding
  • Complexity is 40% fear of changing the status quo
  • Innovation is 30% listening
  • Spend 20% of your time building trust
  • Spend 10% of your time engaging the winners and losers
  • Spend 0% of your effort worrying how unique your business is

Please reach out if you have questions about how to apply these guidelines during your journey.