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How to Overcome a Toxic Workplace (5 Cultures of Culture)
Rich Baron • May 17, 2023
The Need for Cultural Transformation Never Ends
Did you know a toxic corporate culture is 10.4 times more powerful than compensation in predicting a company’s attrition rate? Executive leaders are concerned with employee turnover and are admittedly losing their most talented workers. While many assume that salary and compensation are the leading cause of quitting, a recent survey
conducted by MIT Sloan Management Review and Glassdoor reveals some shocking truths about the factors that cause employees to leave. In another recent survey
conducted by the same group, 1.4 million employee reviews were analyzed and then broken out into the top 10 reasons that matter most to employees when it comes to corporate culture:
- Employees must feel respected. In fact, respect for employees is 17.9 times more powerful a predictor of an organizational culture score than the typical topic. Treating employees with dignity, consideration, courtesy and valuing their individual perspectives.
- Supportive Leaders. Employees must believe that you have their backs.
- Living Core Values. Are the leader’s actions consistent with the organization’s core values?
- Toxic Managers. Managers that continually create a negative work environment.
- Unethical Behavior. This is an issue for both leaders and employees that lack integrity and act in unethical manners.
- Benefits. Employees’ assessment of the benefits provided by the employer.
- Perks. Employees’ assessment of the workplace amenities.
- Learning and Development. The opportunities provided by the organization for formal and informal learning. This includes advanced leadership development such as executive coaching.
- Job Security. Fear of losing your job to such things as layoffs, offshoring, and automation.
- Reorganizations. Mergers, acquisitions, and reorganizations were viewed negatively 97% of the time by employees.
In addition to these ten reasons, other culture breakers such as subversive communications, unhealthy competition, and employee favoritism, have a major impact on company culture. Effective organizational culture is a top-down exercise and, unfortunately, even the best CEOs sometimes underestimate their own role, and the role that their leadership team has in crafting a people-focused culture that inspires and motivates their employees to produce results.
When assessing and transforming company culture,
you must commit to the 5 C’s of Culture which are:
- Capability Culture (“Can Do”) – leaders must instill values, character, and beliefs that exude a “can do” spirit among employees, showing them what it takes to succeed.
- Commitment Culture (“Will Do”) – leaders must develop a unique culture that motivates and inspires others, instilling the belief that each employee has the power to take risks and add value.
- Connectedness Culture (“Must Do”) – using both cooperation and consensus-building elements, leaders must foster a culture based on teamwork and collaboration, allowing employees to execute at a high level.
- Individual Performance Culture – leaders must foster an environment that is transparent, open, and equitable – where honest feedback is not only welcome but encourages continual improvement; this step demonstrates your willingness to “walk the walk.”
- Team Performance Culture – leaders must create equitable cultures, where every employee’s contribution adds to the collective success of the organization; conflict may arise, but your team will work hard to find a win/win situation.
The need for cultural transformation never ends. In fact, 75% of all organizations flat out fail resulting in eventual decline, failure, or extinction due to the inability to pivot and change in today’s business world. One of the primary reasons for this is the CEOs and their senior leadership teams who were not as diligent as they should have been in developing and transforming their organizational culture. Simply put, it is a lack of leadership. Is it any wonder a record number of employees have thrown in the towel over the past year?
Great companies invest in their people and foster cultures that empower their team to deliver results, which is why 80% of a leader’s time should be dedicated to growing tomorrow’s leaders. Through our cultural transformation process, we can help make your culture healthier – and your leaders stronger – resulting in an organization that attracts top talent.
In assessing and transforming company cultures, ILEC and John Mattone Global work with organizations of all sizes – from Fortune 500 organizations to small to mid-sized global entrepreneurial companies. As a Master Certified John Mattone Global Coach, I utilize a proven blueprint and philosophy designed to build strong, vibrant organizations. If your company is serious about creating a culture that creates loyalty, trust, and optimizes performance, go to my website , and let's have a conversation about what’s possible!
If the years since the pandemic are any indication of what we can expect in this ever-changing business world, leadership needs to be stronger than ever. With rapid changes in business worldwide, the leadership skills we need are changing. Strong, versatile leaders are needed to face the challenges we will inevitably see - leaders who can adapt, strategize, and motivate their teams through complex situations. However, studies show that organizations and leaders alike are far from prepared to combat these challenges. What Do The Studies Show According to the Bersin by Deloitte report High-Impact Leadership Development , organizations with stronger “leadership maturity” are 11 times more likely to have a high number of leaders who can build talent for competitive advantage. And they’re 7 times more likely to have a high number of leaders who can inspire people to follow them. Unfortunately, the report also found that capable leadership talent is very rare. Only 60% of leaders in organizations show commercial acumen and business judgment; 48% are seen as driving change and innovation; and only 44% build talent for competitive advantage. Regarding rare leadership talent, in a study conducted by Kaiser Leadership Solutions , using a 360-degree instrument called the Leadership Versatility Index, they assessed over 24,000 senior managers from a variety of industries around the world. The results showed that less than 10% of the leaders in this study had the versatility and timing to be effective leaders. That means that more than 21,000 of the leaders studied do not have the versatility and timing to be truly effective in reading and responding to change with a wide repertoire of complementary skills and behaviors. Despite the studies that show that leadership skills and development are lacking, there has been a disturbing trend in organizations cutting L&D budgets and individual leaders putting the brakes on their own development. Or worse yet, ignoring the importance of leadership development altogether. A Short-Sighted Approach This lack of investment in leadership development is a short-sighted approach that ultimately hurts both the individual leaders and the organization. Effective leadership is crucial for the success of any organization, as leaders set the tone for the rest of the team and drive the company toward its goals. Additionally, in today's rapidly changing business landscape, it is more important than ever for leaders to be adaptable, agile, and able to navigate uncertainty and change. Investing in leadership development is key to ensuring that leaders have the skills and knowledge needed to thrive in this environment. Organizations must prioritize leadership development and allocate the necessary resources to support the growth and success of their leaders. By investing in leadership development, organizations can create a culture of continuous learning and improvement, drive innovation and growth, and ultimately, achieve sustainable success in the long run. Without ongoing development and training, leaders can stagnate in their skills and become less effective in their roles. This can lead to decreased employee engagement, lower productivity, and ultimately, a negative impact on the bottom line. Hitting the Pause Button Simply put, businesses and leaders are falling behind in preparing for the upcoming business challenges they will certainly face. This fact was shown in another leadership development survey of almost 18,000 human resource professionals and business leaders from around the world. The findings showed that 83% believe it is critical to the success of their organizations to develop leaders at all levels. Despite this, less than 5% of businesses have integrated leadership development at all levels. According to the Global Leadership Forecast 2021, “fewer than half of leaders feel they are effective in leadership skills that will be most critical for future success. This means that strong, versatile leaders are not being developed and prepared for future business challenges. As an executive coach, the most disturbing trend that I have seen in organizations, and individual leaders alike, is pumping the brakes on leadership development. Many of the excuses I have heard are that the L&D budget was cut, or we plan on revisiting leadership training next year, or my personal favorites, we are too busy to focus on that right now, or we simply don't have the time. With all the issues in poor employee retention, lack of leadership pipelines, poor talent selection, toxic bosses, and failing organizational culture (which is a direct result of poor leadership), it is no wonder you don't have the time. More than likely your time is now being spent chasing the tiger by the tail, putting out fires, and trying to keep your head above water. So, a quick question, do you think your excuses will help solve the problems? Or perhaps employing the age-old wisdom that if we just ignore it, it will go away. The trend of cutting L&D budgets was a concern even before 2024. In February 2023, we featured an episode on our podcast, Mainline Executive Coaching ACT, entitled, "Dear Employees, Your Budget Has Been Cut." It has been downloaded and listened to in over 70 countries and 750 cities worldwide and is still our top downloaded episode with continued daily downloads to this date. This goes to show that this is not just a concern for organizations in the United States, but globally as well. Quite frankly, this is an urgent situation that needs to change. Versatility Will Be The Key The need for leadership development is greater than ever. Over the past three years, business dynamics have shifted so dramatically, that the moment to maximize the benefits of strong and equipped leaders is now. Versatility in leadership skills is the master capability for leading in a VUCA world — that is, one characterized by volatility, uncertainty, complexity, and ambiguity. Versatility is, "the ability to read and respond to change with a wide repertoire of complementary skills and behaviors." For instance, some circumstances call for leaders to take charge, force difficult issues, and make tough decisions, while others require leaders to enable, support, and include people. Similarly, organizations sometimes need leaders to focus on their future strategic direction and at other times to focus on day-to-day operations and execution. Versatile leaders can seamlessly move between opposing behaviors. They can step up and make a call just as easily as they can bring people together to make group decisions. They can read the room and adjust their behavior accordingly, from asking questions and listening with an open mind to driving the team to achieve success. They can also envision change in big-picture terms and focus on the tactical details of implementing change. Versatile leaders can read the business, from playing out the chessboard five moves ahead to making the next move swiftly and with precision. Focusing on the Future It is time to stop pausing or ignoring leadership development altogether, or worse, simply putting someone in a leadership role because they are strong individual contributors in their jobs. The ripple effects of poor leadership have resulted in skyrocketing turnover rates, poor customer retention, disengaged employees, and high costs associated with replacing the employees who left. To be successful and competitive in the future, developing versatile, strong leaders is imperative. Organizations that value leadership development with a focus on building a strong leadership pipeline full of well-trained, versatile leaders will inevitably see greater innovation, stronger financial performance, highly engaged employees, and strong employee retention. Going forward, organizations and individuals alike need to engage or reengage in leadership development. However, do not make the mistake of bringing back leadership training that the company invested in 10 years ago. Or worse yet, relying on someone in the organization who participated in those programs in the past to take on the task of leadership development today. The days of marathon seminars focused on a particular leadership skill are in the past. Quite frankly, they did not work then, and certainly will not work now. A Training Evolution Leadership training has evolved and executive coaching is the sturdy bridge that connects individual leadership effectiveness with outstanding organizational performance . It can help organizations attract and retain exceptional leaders and help executive teams to improve their performance. In addition, online coaching platforms that feature ongoing, bite-sized, dynamic, and hybrid training sessions with accompanying implementation tools coupled with one-on-one coaching have proved to be very effective. Intelligent Leadership Online Academy (ILOA) which was created during the pandemic by the world's top executive coach, John Mattone is one such platform that is trusted and respected by the top executives and technologists at some of the world's top companies. Wrapping Up Today's leaders need more proficiency than ever before. No one knows what our disruptive world will throw at leaders next. However, if the past three years are any indication of what lies ahead, organizations and individuals must be prepared to face those challenges. Those organizations with strong, versatile leaders who possess a wide and balanced repertoire of complementary competencies, skills, and behaviors, combined with the wisdom to know which one to use in a given situation, are likely to be most effective at leading their people, teams, and organizations through the turbulence. And we know that this meta-competency — versatility — can be learned, coached, and developed. Reach out to me here to find out more about executive coaching, and ILOA. Or schedule time with me here for a discussion on how your future and the future of your organization can look. About the Author Rich Baron holds the esteemed title of Master Certified Intelligent Leadership Executive Coach at John Mattone Global. With a wealth of expertise spanning over 25 years, he has excelled in various realms such as cultural transformation, operational leadership, executive positions, and coaching individuals from emerging leaders to CEOs. Together with his coaching partner, Maikel Bailey, Rich hosts "Mainline Executive Coaching ACT," a podcast acknowledged by Feedspot in 2023, and again in 2024 as the foremost Executive Coaching Podcast worldwide. This recognition is based on an evaluation of numerous podcasts on the internet, taking into account factors such as web traffic, social media followers, and timeliness. The podcast enjoys a substantial following in more than 60 countries and 550 cities across the globe.
With Thanksgiving approaching in the United States, it’s a perfect time to reflect on the values that enrich our lives, no matter where we call home. Leadership, in particular, holds a unique power to shape our communities, organizations, and personal growth. In this blog, I want to celebrate the transformative nature of leadership, express gratitude for its impact, and honor the remarkable leaders who inspire and guide us. Here are a few ways leaders can express gratitude and show appreciation to the people who make a difference in their lives. Visionaries Who Inspire Leadership often begins with a clear vision. We are grateful for the visionary leaders who inspire us to dream big, challenge the status quo, and defy conventional wisdom. These trailblazers ignite passion and propel us toward a future that seemed unreachable before. Their visionary approach gives us hope and motivation to achieve more. Empathetic Guides Possessing empathy and understanding is a hallmark of exceptional leadership. Thanksgiving reminds us to appreciate the leaders who genuinely care about their team members' well-being. They create an environment that fosters collaboration, empathy, and open communication. These leaders go the extra mile to understand the needs of their team and provide the necessary support, enabling individuals to flourish both personally and professionally. Leading by Example Leaders play a crucial role in creating a positive and appreciative culture within their teams. By expressing gratitude, both publicly and privately, towards their employees, leaders can inspire their team members to reciprocate and appreciate one another's efforts as well. This creates a cycle of appreciation and gratitude within the team, which, in turn, creates a sense of trust and loyalty within the team. When employees feel appreciated by their leaders, they trust that their efforts are valued and recognized. This trust fosters a positive work environment where team members feel comfortable and supported. Be Thankful for Your Team As a leader, it is important to recognize and accept that you cannot be an expert at everything. No one can possess all the skills and knowledge required for every task or project. Instead, it is crucial to identify the gaps and seek out individuals who have the talent and passion to excel in those areas. When you surround yourself with talented individuals, each specializing in their respective fields, you create a dynamic team that can tackle challenges effectively and produce exceptional outcomes. Be thankful for those people on your team who bring their best every day. Their expertise and passion will bring new perspectives, innovative ideas, and a high level of proficiency to the table. Be Thankful You are a Leader Being a leader is indeed a privilege, as it allows leaders to have a direct impact on the future and success of their followers. For this reason, we must all learn to be servant leaders. By adopting a servant leadership approach, the leader takes on the responsibilities of a coach, mentor, and enabler. They guide and support their team members, helping them to develop their skills and achieve their goals. The focus is on empowering others and creating an environment where everyone can thrive. The beauty of servant leadership lies in the fact that when leaders prioritize the success of their team, they ultimately find success themselves. By investing in the growth and development of their followers, leaders cultivate a motivated and engaged team that produces outstanding results. This is something that every leader can truly be thankful for. Wrapping Up As leaders, this is a wonderful time of year to be thankful and to begin the habit of saying, "Thank You," so you can say it all year. Saying those two powerful words can mean the world to those on your team who have worked hard and deserve your admiration and sincere gratitude. The simple act of expressing your thankfulness and gratitude with these two simple words will ensure your team feels recognized and appreciated for their work. When we strive to be true servant leaders throughout the year we have the opportunity to instill worth in all those people around us. For this reason, leadership is not just a privilege to be thankful for, but a calling all leaders have the responsibility to live up to. As we celebrate this season of Thanksgiving—a time to express gratitude for the blessings in our lives—let us also extend this spirit of thankfulness to our superiors, colleagues, clients, customers, and all who support our professional journey. As Thanksgiving gives way to the rest of the holiday season, let’s strive to carry this attitude of gratitude into our daily lives, embracing it fully in our roles as leaders and managers. Happy Thanksgiving to all of you who are reading this. I am truly thankful for your support and wish you all the best! About the Author Rich Baron is the Director of Culture Transformation and Certification as well as a Master Certified Intelligent Leadership Executive Coach at John Mattone Global. With a wealth of expertise spanning over 25 years, he has excelled in various realms such as cultural transformation, operational leadership, executive positions, and coaching individuals from emerging leaders to CEOs. Rich hosts "Mainline Executive Coaching ACT," a podcast acknowledged by Feedspot in 2023, and 2024 as the foremost Executive Coaching Podcast worldwide. This recognition is based on an evaluation of numerous podcasts on the internet, taking into account factors such as web traffic, social media followers, and timeliness. The podcast enjoys a substantial following in more than 70 countries and 750 cities across the globe.
