The flaw in trying to change a company's culture

Stop saying "we have to change the culture".

Deciding you have to change the culture of an institution is apparently exactly the wrong way to go about changing the culture of an institution.

Here's Harvard Business review on the long, expensive, and ultimately ineffective process that happens when a manager says the dreaded sentence: "We have to change the culture around here."

Not many of them feel they know how to do that, so an army of consultants has obliged by creating processes for help. Most of these experts recommend beginning with a diagnosis of the present culture. After the diagnosis you need to get clear about where you want to head. That's another piece of work. Then you have to plan how you are going to get there.

Finally, when you are ready to get moving, the consultants are happy to jump aboard to help implement a multitude of programs — training, re-organization, systems redesign, and communications campaigns. A Google search on the term "organizational culture change programs" yields 273,000,000 entries.

The total effort generated by these processes is guaranteed to be complex and to cost huge amounts of time, money and effort. Some of these interventions may prove useful at an individual level, but sweeping, large-scale culture change efforts rarely cure those aspects of culture that were so frustrating in the first place.

There is another way, though. HBR write that as a company's culture comes from a range of dynamics that can only be dealt with one at a time.

The moral of the story is that a company need never sink resources into "culture change" programs. If they keep advancing an increasing number of performance improvements that empower their people — and if they distill and exploit the learning from their achievements — they'll wake up one day and discover that they are working in a radically new culture.

Try changing small things. Photograph: Getty Images
Getty
Show Hide image

There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.