Can Your Organization's Culture Survive its Next Leader?

Several weeks ago I was a guest at a retirement function of a long-standing leader of a prominent local organization.  Not surprisingly, there were many accolades and a few good-natured barbs directed towards the retiring executive.  Similarly, there was an expression of both sadness and joy on the part of the retiring leader themselves - pride at the many years of accomplishments and challenges overcome but similarly a true sense of loss in preparing to be apart from a team and not being able to continue to see through the next round of major initiatives. 

Just as there is transition for the individual leader there is also a fair degree of uncertainty for the organization.  For those "left behind" they now begin to wonder what will the new leader be like?  What will change?  How will this impact us? How will this impact me?  These questions and anxieties don't just play out when an Owner, President or CEO transitions out of an organization.  At a frontline level, staff can also feel real anxiety when their supervisor, manager or director move on to new roles.  For better or worse, the leader - President or supervisor - has established a certain way of getting things done for the entire company or for simply their unit.  The leader has created a culture or sub-culture that people have become accustomed to.

For the purpose of this entry, I'm assuming that the culture the departing leader has created is in fact a positive one - a culture that has not been enforced but rather has been fostered and grown over time, that is characterized by great teamwork, open communication, strong employee engagement, great morale, strong customer satisfaction, and a record of success that comes from a strong values base and a can-do attitude.  The unit, division or organization has a great reputation, is a magnet for both clients and prospective hires, and stands out as being a great place to work.  It is a benchmark for other organizations or other parts of the same organization.

By all metrics this is an entity and culture worth preserving, growing and emulating.  And because its been performing so well one might believe that the reasons for its performance and capability might be well understood.  And because it has been performing so well one might believe that particular care might be taken selecting the right leader with the right qualities to build upon that success.  Unfortunately, that is not always the case.

I've experienced or seen a few situations where a strong, dynamic, values-based, performance-oriented culture was lost because of errors in selecting the next leader.  In one example, a CEO was hired into a newly created organization which was the result of a forced merger of at least 10 different smaller entities.  At the outset of this CEO's tenure there was a real possibility of continuing division along community and service lines.  The reality was that less than a year later this organization was a benchmark amongst its peers - a united leadership team, commonly-held vision and values, significantly improved relationships and partnerships with its unions, empowered and energetic staff, open communication, and above all integrity of character and decision-making.  In addition, the CEO and the rest of the senior leadership took strong steps in succession planning with a focus on sustaining long-term gains and success into the future.

Unfortunately, when that CEO determined it was time to move on to bigger challenges and opportunities the Board failed to adequately consider these succession planning efforts - or perhaps didn't buy into the culture of the organization that had been created.  The Board selected an external candidate as the next leader. In hindsight, it is now clear that the factors that had led to success for the organization and that established a strong performance-based culture were not understood or appreciated by the Board.  The new CEO had a far less open approach than the organization was used to.  Decisions were made by him alone or by a very small circle of advisers.  Empowerment, flexibility, autonomy, and integrity became more challenging commodities to come by.  The result was a relatively rapid departure of a number of "bright lights" in the organization.  They moved on.  They looked for other opportunities to continue their careers.  Within a short time the former culture - and successes - of the organization became a historical footnote.

A second example with the loss of culture is less dramatic but no less challenging.  Historically, an organization with a long values-driven history but perhaps less dynamic leadership than one might have expected and hoped for.  Nonetheless, the strong values base had in fact helped create an element of competitive advantage in the local marketplace and helped sustain the organization's existence through some rather dramatic changes in its business environment.  Like the previous example, however, the Board seemingly had less appreciation of the strength of the existing organizational culture while at the same time being sensitive to the less than dynamic leadership they had historically had.  They were intent on rectifying this and were also intent on growing the enterprise.  For this purpose, they identified a need to hire a leader from outside the organization with the requisite vision to move the enterprise forward.  Unfortunately, the same leadership characteristics of charisma, energy, and self-confidence that seemingly commended this leader also masked some less than desirable characteristics. 

The results?  The organization did in fact grow and there continue to be plans for more growth.  The public perception of the organization remains somewhat intact, but perhaps as much due to low performing competitors than to any real enhancement in performance.  The impacts on the organization's culture have been more clear - staff engagement results have dropped, teamwork between service lines has declined, there is limited if any trust in official internal communications, morale is low, and the competitive advantage that once existed in recruitment and retention is less pronounced if there at all.  Fear within the workplace is a growing reality with few if any prepared to openly question decisions or the basis upon which these decisions have been made.  Leadership of the organization has become increasing isolated from the frontline. 

Two very different examples.  Two very similar results.  In each case a strong, performance-based culture was negatively impacted by one decision - the hire of a new leader.  In the first case, the new leader was too insecure and weak to work within the strong, inclusive and empowered decision-making culture that had been created.  Making decisions in isolation for fear of being challenged ultimately led to the loss of many key personnel, the relatively rapid departure of this particular CEO, and a mortal wound to the organization's performance-based culture.  In the second case, the stated values do not seem drive current decision-making.  Key personnel have left or remain physically present but otherwise disengaged.  The organizational culture is certainly not what it once was and in many respects it bears more and more resemblance to the competition in its marketplace.  The competitive advantage it once had is being eroded.

Two very different examples that look at the impact of a leadership hire and the failure to truly consider the existing culture - and what it takes to maintain such.  The lesson of these tales, however, is just a relevant at a frontline level.  The selection of a supervisor, manager, director or any other role must explicitly consider alignment of leadership skills, style, and character if there is a desire to sustain and promote a positive work culture that has been the hallmark of the work unit in question. 

It's about leadership and if you don't pay attention in making these critical leadership decisions your culture will be immediately, inevitably, and perhaps irrevocably impacted. 
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Greg Hadubiak, MHSA, FACHE, CEC, PCC
TEC Canada Chair/Executive Coach/Senior Consultant
hadubiak@wmc.ca

Helping leaders realize their strengths and enabling organizations to achieve their potential through the application of my leadership experience and coaching skills. I act as a point of leverage for my clients. I AM their Force Multiplier.