CEO Chronicles # 29 : How To Prevent Toxic Teams?

Consulting A Specialist

I raised my hand (digitally, by hitting the little hand symbol).

“Yes, Shesh, please go ahead.” Barbara had just completed a closed-door webinar on Human Capital in a VUCA World. She was a legend among mentors and coaches and had helped many CEOs find themselves and turn their companies around.

I unmuted myself. “Thank you, Barbara, for the great talk. I have recently been asked a question by a young lady for which I am hoping to find an answer – How can we prevent toxic teams and how can we remove toxicity from teams?”

Barbara smiled. “She sounds like a smart young lady. That is a very apt question, indeed, especially in today's world. Do all of you have time for a story?”

The 15 CXOs participating in the webinar chorused their yeses.

“Great,” Barbara continued, “I don’t need to say this, but all of us have encountered toxicity. Many of us have accepted it, even turned a blind eye. Some of us have tried to fix it, sometimes succeeding, often failing. I would not be surprised if, at some point during our careers, some of us have even contributed to a toxic culture.”

Watching my fellow participants on the screen, I could see their visible discomfort. Eyes that were previously fixed to their screens moved sideways and upwards. Buttocks shifted on ergonomic chairs.

“I know,” Barbara smiled, “These are uncomfortable words. But, hear it from me - toxic teams DO NOT happen without the leader’s consent or acceptance.” She looked at her screen, somewhere in New York City, her eyes probing ours. All of us studiously avoided her eyes.

Barbara sat back. “The year was 2012…” she started.

Testing For Toxins

I was asked to be the Executive Coach to the new CEO of The Fortune Group. I was a little concerned. Normally, a CXO is offered coaching only after he or she has been in the role for a while. This was the first time I have been asked to coach a brand new CEO.

I had a meeting with the Chairman of the Group and he helped clear this concern.

“Well, Barbara,” he said, “you know that The Fortune Group has been facing some serious issues. One of the main contributors is the former CEO, and that is why we had to let him go. He has caused a lot of disruptions internally. The organization's culture is toxic. Senior managers are constantly sniping at each other. There seems to be little or no accountability. Financial commitments are rarely kept. We get inventive excuses and explanations, rather than results!”

“I feel guilty to an extent that we are handing over a damaged company to Jacintha. I am worried that we are setting her up for failure. It is to ensure that she has the resources she needs, the support she needs, that I thought of you.”

I was surprised. This was both honest and thoughtful. Rare qualities in boardrooms, I assure you.

“Thank you, John, for sharing this,” I responded, “as I said, it would be my pleasure, and yes, I will meet Jacintha tomorrow.”

Diagnosing The Cause

Jacintha Lee, soft spoken, kindly and charming, started her job the following week. She was a whirlwind. In the first 3 weeks, she had individual meetings with every senior manager; she visited Fortune’s 22 offices and plants; she had townhalls with various groups of employees. I noticed that she did not meet customers, nor the banks, nor did she speak to the press who were clamoring for interviews. In one of our calls, I brought this up.

“Well, Barbara, all my research indicates that our problems are internal, not external. I am going to understand these and fix them first, before I tackle anything else,” said Jacintha.

Fair enough, I thought.

On the first day of her second month in Fortune, Jacintha acted.

She called a meeting of the senior management team. (I was present as an observer). She spoke to 46 managers.

“In the last 30 days, I have spent time with all of you, and thank you for your honest inputs to everything I asked. I am grateful for your acceptance and support,” she started.

“This is hard for me to say,” Jacintha continued, “but we are in a mess. Our numbers are far below where we can and should be, our customer satisfaction levels are way below expectations, our employees are unhappy and our quality standards are suspect.”

“I believe I know why, and I believe I know how we can correct this.”

“The WHY has four parts :

One, we, the management team, are not aligned on who we are and what we want. We have no cohesion, and sadly, there seems to be a serious lack of trust between us.

Two, the organization lacks clarity. We don’t have a clear understanding of the fundamentals, we do not have a common vocabulary. Our values are not clear, our vision is opaque, we question ourselves at all levels.

Three, our Group’s communication and coordination is quite abysmal. Our subordinates, our vendors, our customers have no idea what we stand for, mainly because they see us, the management team, as inconsistent and undecided and often, at odds with one another.

And finally, four, our Human Capital systems are bereft of caring or consideration. I have seen government systems which are less bureaucratic, and more compassionate.”

Starting A Cultured Diet

“I am sure,” Jacintha continued, “that some of you may disagree with some of what I have said. Under normal circumstances, I would be happy to consult and discuss this with each of you. But not now.”

“Any organization is as strong as it’s culture,” she said. “Our culture is so dysfunctional that it is non-existent. We are going to fix this first.”

“As of today, I am rolling out a set of basic values that we will all adhere to from this moment in time. Together, we, as the senior management, will align and cohere. We will spend the next month imbibing and assimilating these values. If any of us needs help, please speak to Barbara (as she gestured to me), and she will be happy to listen, to guide and coach.”

Jacintha stepped forward, her face becoming even more serious. “Adherence to these values is not a choice. It is an obligation. Any of you who don’t or can’t live these values are free to find futures elsewhere.

While I had some inkling as to what was coming, I was left agape. The person who stood there in front of 46 senior veterans of the corporate world was not the nice, gentle, friendly woman I had got to know. This was an indomitable force, clad in designer clothes.

I looked around the room. It looked like everyone felt like I did. Wide eyes and partially open mouths abounded.

Jacintha took the meeting to its conclusion, after presenting the new ‘core values’ and explaining them in simple and clear terms.

She then asked if there were any questions, answered the few requests for clarifications and adjourned the meeting.

Cleansing The System

The next month was quite hectic, both for Jacintha and me. Together and separately, we met with almost all the senior managers. All through the discussions and explanations and even arguments, the message was clear – align or depart.

In the meantime, Jacintha had also hired two capable young people for her communications team. She spent a substantial amount of time preparing for the next stage – establishing organizational clarity across the Group.

On the last day of August, just before Labor Day, Jacintha launched her communication blitz. The communications team organized a group-wide townhall, across 12 countries and 22 offices.

Jacintha spoke about the ‘new’ culture and laid out The Fortune Group’s purpose, vision, values and strategy. She spoke about what Fortune stood for, its long term and medium term goals, its strengths and weaknesses, its competence and its competition.

When she finished, after a prolonged silence, I witnessed something I had only seen in political rallies before. The entire organization erupted in a standing ovation! It seemed that Jacintha had given the Group's two thousand employees what they were hoping for – a clear vision, a focused approach, and a set of measurable goals to achieve.

Exercising - Walking The Talk

I know you have other meetings and commitments, and I am not going to bore you with a blow-by-blow commentary. A few milestones -

In the next 3 months, Jacintha replaced 6 members of her senior management team – those who could not or did not conform to the new culture. Concomitantly, quite a few other managers who had gotten used to or taken advantage of the previous regime were encouraged to find other avenues. She and other senior managers spent a substantial time on the road, spreading and reinforcing the word.

In the second month, the organization woke up one Monday to the shocking news that Jacintha has suspended two of her senior most lieutenants for ‘non-compliance’ with the new culture. Both the gentlemen spent a week at home (and some time with me), and resumed their duties,smarter and wiser.

Jacintha spent a lot of time with the Human Capital team.

She reorganized the team, tore up all the redundant chapters of the policy manuals, and created a truly employee-centric, transparent, caring system. In November, The Fortune Group launched the new system in another group-wide townhall. I witnessed my second corporate standing ovation.

In November, five months after we began, I attended my second Management Review meeting. The difference was startling! The senior managers were engaged, aligned and clearly working together. The quality of information being presented was top notch. And most importantly, ALL the trends were pointing steadfastly in the right direction.

In December, at Jacintha’s request, I chose 30 employees at random, and had one-to-one meetings with them, to understand whether Jacintha’s initiatives had spread across the organization and taken root. As I compiled my report, I felt amazed and uplifted that so much could have changed in so little time…

Hale And Healthy Again!

So, Shesh, to answer your question, “How can we prevent toxic teams and how can we remove toxicity from teams?”

We need –

1. A trustworthy, competent leader
2. A strong culture
3. A cohesive, aligned management team
4. Consistent communication
5. Systems that are built to care, not to be complied with

Of these, the first two are the most critical. Leadership and Culture are interdependent and feed off one another. The lack of one leads to the failure of the other.

Everything else follows, though not by default, but by design.

I hope that answers your young lady. Thank you, everyone, for your attention, and for a wonderful session! Have a great week ahead!

****

What do you think of Barbara’s narrative? Do you agree with her solution? Do share your views and experiences…

Please send them to me, either as a comment or as a PM. Let us cure this persistent disease...

Cheers | Shesh | Singapore | 16 June 2020.

Post Script :

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