I just read sad and shocking news in GIGAOM. Former France Telecom chief executive Didier Lombard has been indicted by a court in Paris over allegations that he led a corporate culture of bullying and harassment that resulted in the suicide of at least 30 employees.
It made me think. Are leaders consciously aware that the cultures they create can bring life and joy, or fear and death?
I would like to think that Mr. Lombard did not set out to create a culture of death. But he failed to see how bullying and harassment could result in suicides. What is even sadder is that he failed to grasp that creating a different kind of culture not only could have prevented many of those deaths, but could have also created a positive environment for all employees which could have resulted in more profits and a better work environment.
Why it’s important to create a positive culture?
Besides the obvious lesson from the alleged deadly results of Mr. Lombard negative organizational culture, I want to share with you some of the reasons (backed by research) for creating positive cultures.
The American Management Association published a report of a global study which they titled: Cultivating effective corporate cultures. Their results do not stand alone. I have read other research report with similar results. Some of the results of creating a positive culture are:
1. Higher performance
A positive corporate culture is associated with higher performance. It also results in doing well in the marketplace.
2. Higher productivity and better talent retention
Positive corporate cultures tend to have more engaged and satisfied workers. Happier workers enhance productivity.
3. More effective change initiatives
Positive corporate cultures are associated with the greater facilitation of change initiatives. This finding is true regardless of conventional wisdom that sees a strong culture as entrenched and resistant to change. Instead, the study found the opposite—positive corporate cultures are more receptive to change and adapt quickly to meet new challenges.
4. More successful mergers
Organizations with positive cultures are more likely to have successful mergers. Yet, it is the rare organization that successfully manages to combine two cultures into a unified culture—only 22% of respondents whose organizations had undergone a merger said they had managed to do so to a high or very high extent. It would be probably better to focus on creating a new positive culture.
5. Better talent management
Success in the area of talent management—as well as its key components—is linked to having a more positive corporate culture. The study found that talent management itself, as well as its various strands (hiring, retention, training, etc.), are all significantly associated with positive corporate cultures.
Maybe Mr. Lombard should have read and head the arguments for a positive culture. What about you? Are you ready to take the banner for creating a positive culture? On my next post I will share guidelines for creating a positive culture.
Remember. . .
Setting the standard for a positive corporate culture should be a major focus for leaders in any organization. When employees are in a positive environment, they are more likely to perform better and contribute more. Creating something positive and upbeat within the organization will contribute greatly to organizational effectiveness and success.
Photo by: Lars Plougmann