How can you align culture change goals with performance management?

Taking a step back, I would start with the WHY - Why change? Why now? Why is it important? This helps to build the business case for change and create the foundation for future employee communications. What is it that isn't working that requires change? What will the change bring that the current situation/setup isn't fulfiling?

Like any change in an organisation, change needs to happen because results are not meeting expectations. Too often in my experience, the conversation around culture starts with a focus on staff and staff performance. There may well be some issues here, but the best place to start a discussion on culture is at the top. Too often boards and executives see themselves as somehow above and separate from the organisation, and therefore don't even consider that there may be significant issues to fix at that level. The first step in addressing any problem is gaining a thorough understanding of said problem. If the executive don't approach this discussion impartially and honestly it is doomed to failure before it begins.

Why asses the current (and soon to be obsolete) situation? The need for culture change is always caused by the need for process changes within an organisation. The processes being the “what”, the culture the “how”, and the two connected to the mission the “why”. When these three are no longer aligned, the organisation has failed to adjust to environmental changes and needs to change to survive. After restating the mission and strategic objectives, next step would be to redefine the processes (the “what”), followed by the definition of the “how” for each process. Cumulatively they define the organisational culture and combining the “what” and the “how” delivers almost naturally the KPIs (both behavioural and functional).

Performance management is about the WHAT is achieved. Culture is about HOW it is achieved. So, inside the WHAT should include the HOW if culture change is to be implemented. For example, if an organization wants to sustain a more collaborative culture, then the Performance Management System must start rewarding team goals and achievements. Similarly, if creativity is a culture aspect, then any process, product or system improvement must be rewarded. Organizations must clearly define the different culture change elements and associate tangible goals with it. Then set standards of behaviors and integrate those into both monetary and non-monetary aspects of the Performance Management System.

Culture for me is values that are well communicated, understood, translated into behaviours and clear boundaries. Most companies have not reached this level. Second: only hire and promote people who behave and act consistent with these behaviours. Thirdly: less is more - get rid of most processes but focus on key hiring - promotion and performance process Fourthly: be patient change takes time

One of my favorite tools for cultural change is Appreciative Inquiry because everyone is involved, everyone gets to have input, and because it focuses on increasing the positive.

A desired culture to carry out the organization's strategy must be defined clearly and precisely by senior management or executive teams in leadership positions, always based on a solid and practical frame of reference. After using the Organizational Culture Framework from Dr. Geert Hofstede for more than ten years to define a desired culture, it is crucial to consider tangible and well-structured practices to be as accurate as possible. A desired culture embraced and actively promoted by senior leaders enables the realization of business strategy independently of the actual Culture in a specific organization or institution. Be aware that a desired Culture can vary between different departments or areas of a company in certain situations.

The foundation of any culture are the following elements: - Purpose: why we exist - Mission: how we do it - Vision: what we do - Values: the behaviours that we demonstrate to achieve our purpose - Decision making framework: how we make decisions and enable each team members to fully own their role. Those elements form the organisation's new operating system and will support any other change made.

To define the right culture and performance outcomes, we need to identify the ingredients/actors involved: These would include the following: Vision & Mission Core Principles & Values Business Model (People-Process-Purpose) Leadership behaviors Employee behaviors Result measurements (Tangible & Intangible)

If you want to align performance with culture change goals, then the following is recommended: - document what the correct behavior/outcomes are for what is good/desired so it is clear - make sure that leaders are modeling the desired behavior and rewarding it - write a performance review that focuses on the valued target - providenexampkesnifntmhownthebemployeendemonstratedntjose desiredncuktureal traits n theirndaikynwotk

Operationalizing cultural change is the piece that is often overlooked. If you want to, for example, improve your organization's hiring diversity, this must be reflected in managers' performance goals and you must have a way to measure results. This is where many change efforts fail.

Aligning your performance management system with your culture change goals means embedding he desired behaviours in the way people are evaluates. To do so, create and integrated performance management system that is based on your company's strategic direction, it's purpose and values. The same questions should be asked during team meetings, 1:1, performance reviews and should be the basis for all reward and recognition scheme across the organisation.

I would invite anyone to shift the thinking around performance from being a "couple conversations" a year, to something much more systemic. Having regular conversations, which focus on the present (my actions, my delivery, my impact and my behaviours) and on the future (my priorities, my team priorities, my contributions, my future skills), will guide an organisation to not only a much better performance, but also a much better culture. The best organisations already do this, and put a lot more emphasis on the relationship between managers/team leaders and their teams, facilitating a multi-directional input on performance rather than the largely biased one of a manager reviewing its employees (managers have a 6 weeks memory, at best).

Performance Management Systems are evolving to find a harmonious balance between delivering business results and sustainably developing, growing, and engaging their employees. Balancing employee welfare with increasing productivity and improving financial performance can lead to a more harmonious and prosperous workplace. Business leaders must create a culture that fosters engagement, creativity, and collaboration. Aligning performance toward culture transformation will create sustainable value and greater financial rewards for the organization. In my experience, transparency and authenticity in performance management discussions significantly increase trust. Setting targets for culture transformation can improve performance and engagement.

Absolutely - but make sure you do it as step one - don't disappear into a management or board huddle and then come back to your staff and say: "Look what we decided was necessary - how good are we! Now your job is to make it happen" So, no, this is not the fourth step - it is the first step.

Engaging employees requires that they take part in the process of developing the change itself. Don't just ask for feedback - find their passions around the culture, and offer them opportunities to develop their own roles in the change, or assign them roles accordingly.

If you engage employees in improving performance, improving workplace experiences, improving the intersection of the two - then you will be changing the culture. Culture is not a noun, it is a verb - telling people you want to change the culture is like telling them you want to change the sheets on your bed - it is a one time thing. But changing the culture isn't a one time thing - it is changing those sheets every day, all day, with every action you take and every decision you make. If you focus on performance and focus on aligning the business with employee practices that will be more achievable than changing the culture.

Here, it's important to understand the underlying factor: is a culture transformation following a "change process"? To ofter I see companies developing (typically sitting in an OD function) a change management process. It's good. But not that good. What works best is to handle the creative thinking of a group of champions across an organisation to define and create the blueprint of the transformation. That way, any organisation looking to transform their culture can do it through a MOVEMENT. Establishing this movement takes no more time than following a process, the difference lies in the sustainable nature of the transformation and how the activation will take place over time.

In these cases of cultural change I think it is also vital to share what is NOT changing for the organisation. Share what the organisation is currently doing really well and will be continued. This can also be applied when looking at performance management. Be consistent in your messaging of both: what works well and what needs to change? This ensures we are starting communication with a positive view and are instilling confidence in the organisation.

Setting up and leading a solid project management process with a dedicated project manager will ensure that you follow-up on promises and hold everyone accountable - without follow-up and measurement, change projects lose momentum.

Change takes time , even if you were perfect at all stages. Implementing the change by regular checkups and reinforcement is a good way to make sure the change sticks. Don't thing that after the initial project everything will be okay - the forces of change can wreck havoc in your plans. We once had a new process implemented the moment I changed positions things got back to normal. Implementation is never ending

This monitoring also needs to be comprehensive. If your customers, staff and managers are totally happy with the way things are, you are profitable and growing - there's no need to change culture - but there may be a need to maintain it. Engagement with all the stakeholders is key. It needs to be done up front, and at several check points along the way - if it isn't - how did you know what was broken and how will you know if you're fixing it? Be careful of confirmation bias in this process. Seek out contrary views and be prepared to evolve your aims as time passes. Culture is not a destination, it's an iterative process. Be prepared to re-assess along the journey.

Always keep in mind that any culture change is a long term and organic process. Review where you are and where you want to be regularly - your destination/desired state may also need redefining as you undertake the journey.

Measurement is key. Yet resist the call for absolute measurement of culture. Rather focus on what can be measured, what are the lagging indicators that the transformation is taking place, establish ways for measurement to be a tool for success for anyone going through the transformation: it helps identify the areas where more work is required and it helps celebrate what already works well.

For Culture Change to be effective, organizations need to address Behaviors (an actionable set of expected behavior patterns and habits), Systems (organizational processes and tools), Symbols (such as awards and recognition, rituals, and language use), and Storytelling (how leaders, managers, and employees narrate the story of the desired culture) simultaneously. Modifying the Performance Management Process is just one aspect that needs to evolve within the 'Systems' category. It is essential to revisit the various elements encompassed in the four mentioned areas and work on them concurrently.

Change efforts are a long-term play. Clients often want them done in 6-12 months and its just not possible. Stakeholders are often in conflict, everyone requires strong reasoning with varying levels of ownership, responsibility, and time required for the change is always an issue. When working with a client, you must come to an understanding that culture change is for the long-game, and will require a great deal of design, commitment, budget, and follow-up. It cannot be a one-time one and done process.

Aligning culture change with performance management is like teaching penguins to do stand-up comedy: it needs a clear plan (not a fishy one), leaders who quack (uh, lead), and communication smoother than a buttered slide. Adjust metrics like checking if penguins waddle less. Reward them with top hats, but remember, it's a slow march to success.

If someone says that they think you need to change the culture respond "no, we need to change our practices. As Blanca says - behaviors, systems, symbols and how we talk about all three. Don't do a 'culture change' project unless you have 5-7 years to invest and maintain interest. Change practices instead - it will get you moving in the right direction and you can build on it over time.

Beth - Couldn't agree more. Focusing on "change the culture" often becomes an obstacle to change - when leaders wait for the culture to change before they empower themselves to change habits, practices, behavior. Our advice: First, have the courage to BE the culture you want to see and show leadership habits and practices that redefine "what it takes to fit in and succeed here," while reaching out to early adopters who'll join you modeling the new culture. Two, profit from the culture change - by showing how it turns into a brand advantage and earns a higher margin for your business. It's only when the new culture delivers a ROI that it will be supported by the sponsors you need to enlist. Three, make it fun.