Culture Matters: Embracing Authenticity, Systems Thinking and Chaos

Let’s face it - reality is complex. In addition, human beings are the most complex and defining constituents of an organization. Given this complexity, we must adopt a non-linear approach when trying to understand the true challenges of organizational culture. 

Beware of superficial application of rituals. It is very tempting to view transformation initiatives through the lens of “we want to achieve an ideal state - let’s work on resolving specific challenges”. However, in complex systems there are more factors at play than state, and all of them are evolving simultaneously.

The goal of the “ideal” state may be unachievable. In this case, worrying too much about the goal may be a misdirection of effort. The simplest example of this trap is evidenced by how some enterprises interpreted the agilist mindset. Many in the industry have made it a mission to be seen as agile, for example, adopting various permutations of agile rituals. However, decision-making behaviors and cultural mindset remained static. The result turned into a colloquial joke between scientific method evangelists that “being agile is different to doing agile”.

A similar lens can be applied to the journey of cultural change. The idea described in “How We Build Winning Organizations” proposes that successful culture is about openness to trial multiple strategies (failing and succeeding ones). It is often wasteful to tinker with organizational structure or mandatory organization-wide initiatives. 

Tinkering with rules limits options. Instead, “the project” organizational change should be defined by a mission statement “all rules are sacrificable at any point in time - principles, values and spirit always overrule”. Inadvertently, this is the true definition of authenticity.

Here is why authenticity is best approach to aligning everyone to organizational goals:

• You start with a self-correcting culture - remember that initially perceived goals may become a red herring over time

• You avoid the trap of rules that kill culture - people are empowered to stay true to their own personality, regardless of the pressure that they're under to act otherwise

• Due to #1 and #2 - you achieve highest talent retention, and create a positive feedback loop that makes culture stronger

The alternative to an authenticity driven culture is the Dead horse scenario.

Illustration: Kevin Nicole;  Source: Unknown

Inject systems thinking with the principles driven culture

Behaviors are the glue and the signaling mechanisms in any organization. In such a system, organizational change is a process of discovery; principles should not be broken to suit one agenda, but can evolve through a process of self-correction. The process of discovery can be both complex and simple at the same time. This is where system thinking is invaluable.

Organizations need to learn how to operate at the “edge of chaos” - sort of like how the human brain works (which is not necessarily a bad thing). Here are the two simple recommendations:

• Beware of rules-based initiatives because they have an element of an artificial construct. For instance, putting the entire organization through sales training will create stress. Turning up the “sales dial” to the maximum without ensuring adequate “delivery capability” is bad for company goals and bad for culture.

• Embrace flexible behaviors and use evidence-driven method for creating a psychologically safe culture where all decisions are reversible.

• Put employees in the driving seat - this is the untapped capability to actually manage the complexity. "90% of good ideas don't come from the executive suite" - Handling Complexity, Professor Richard Jolly, London Business School.

What is the alternative to principles based systems thinking? We see  business leaders flogging a Dead horse; avoid being that organization.

Read on if you are still worried that packing away rules can lead to chaos.

Put away your worries about chaos

It is fair to ask if lack of rules might lead to chaos. The simple answer is that “eyes on, hands-off” does not lead to lack of direction - this has been explained by the Chaos theory. There is sufficient understanding that chaos does not mean anarchy.

Experienced leaders recognize that “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so“ (a quote most often attributed to Mark Twain). Having a metric of what you do not know, and discovering early if what you know is not quite so, is critical. The best answer to this conundrum is real-time radical transparency because it reduces reliance on discreet, costly and bias-affected surveys:

• Embrace chaos, it provides the impetus for change and actionable data points that help bridge differences in perspectives and align everyone in the organization.

• Complement HR operational processes with a fit-for-purpose radical transparency system to inject  systems thinking fuel and catalysts.

The alternative to embracing chaos is sticking with timeworn operational processes of broadcasting kudos, callouts and providing channels for complaints. This approach leads us back to the Dead horse scenario.

Managing chaos is the process of continuous design for complexity.

• No single leader can force people to change their style, communication skills and behavioral traits overnight. Instead, leaders should provide rails for the organization to ease into a mode where chaos is embraced and managed through systems thinking. Smart transparency is the rails.

• Designing for complexity means establishing a system of reversible decisions governed by authenticity and critical self-reflection. Whether this concept is work-able for your organization depends purely on openness to change. The how depends on context and behavioral traits - consider roles and use-cases summarized by Paul Millard in “Integrating Chaos: Building Resilient Organizations with Chaos Theory”.

If Chaos were to offer an opinion about the marriage of authenticity and systems thinking, it would probably say: “Thou shalt not believe in ‘isms’, and shalt support each other through anything that life throws at you”.