Organization Resilience: How to boost company culture after a setback

Setbacks are inevitable in any organization.

Setbacks are inevitable.

Coming back from them is not.
What will you do?

Coming back from one is not.

The ability for a company to thrive after a crisis depends on actions of the leadership. The way we address setbacks can have lasting impact on people and performance and the long-term viability of our companies.

Last year, McKinsey research said 75% of risk managers within companies believe strengthening integration of resilience into the strategy process is an important action companies can take. (Source)

We talked about it in Culture Matters recently so our companies/employers/clients can be proactive when setbacks occur. We talked about three types/examples:

1.  Poor Communication. Companies reeling from poorly communicated RTO practices. Without thinking through their Return to Office policies, companies are jeopardizing employee retention and reputation. Some of the policies we’ve all seen publicized are so out of touch they could have been written 100 years ago. Or, even 10 years ago.

2.  Systemic Issues. Systemic issues challenge culture all the time, and those get magnified during a crisis. Boeing is a good example. The first plane crash was a setback. The second and third revealed a systemic issue that needs serious attention and oversight.

3.  Mistakes. Another recent setback shared today is being faced by Mattel this week. On Monday, Mattel pulled their new “Wicked” dolls off the shelves because the packaging on several character dolls includes a typo in the web address. Instead of the website leading to the film’s webpage, it leads to an adult website. (Source) There are setback like this which can be rectified relatively quickly; however, the financial implications could be felt long-term.

We talked about several other company cultures, setbacks, actions, and outcomes. Our hope was to talk through these so we could build or update actions we take when there are setbacks.

Here’s what we came up with, along with a few I’m adding to round out a process.

1) Admit It: The first step is to admit there is an issue. Not publicly, yet, but to yourself. There have been so many publicized and analyzed business setbacks over the years, one would think all the business leaders everywhere know what to do when one occurs. Yet, often, the leaders will not accept there is a setback, mistake, or issue. Their obstinance delays rectification, which can exacerbate the issue on people, the environment, and financials.

 2) Restore Trust: Leaders need to re-establish trust and openness with their direct reports, internal teams, and external stakeholders, especially when a setback erodes confidence in leadership.

• Acknowledge and Apologize for Mistakes: If leadership played a role in the setback, openly admit to errors and take responsibility. Authentic accountability demonstrates humility and integrity.

• Actively Listen to Employees: Hold listening sessions or open forums to hear employees' concerns and perspectives. This shows a commitment to understanding their experiences and needs.

• Follow Through on Commitments: Rebuild trust by setting realistic goals and delivering on them consistently. Small, steady wins help restore confidence in leadership.

 3) Strengthen Core Values: Leaders can ensure that core values remain intact and visible, even when morale and unity are low

• Connect Decisions to Core Values: When explaining recovery strategies, highlight how each action aligns with the organization’s values to reinforce their importance.

• Create Value-Based Recognition: Recognize and reward behaviors that exemplify the company’s core values, even during tough times, to reinforce cultural alignment.

• Incorporate Values into Daily Routines: Encourage teams to discuss how core values can guide their work during meetings or project planning sessions.

4) Rebuild Team Morale: Leaders can reconnect team members, especially if they feel disillusioned or uncertain about the company’s future.

• Celebrate Small Wins and Milestones: Highlight achievements and progress, no matter how minor, to remind the team of their collective capabilities and resilience.

• Provide Opportunities for Connection: Organize team-building activities or informal gatherings to rebuild camaraderie and foster positive relationships among team members.

• Reinforce Individual Contributions: Acknowledge and express gratitude for the unique strengths and efforts of team members to boost their sense of value and belonging.

5) Communicate Authentically in Times of Recovery: Leaders need to be transparent and effective when addressing setbacks with teams, even if they cannot reveal everything discussed behind the scenes.

• Be Transparent About Challenges: Share what you can about the full context of the setback, including its impact and the steps being taken to address it. Honesty builds credibility.

• Use Empathetic Language: Show genuine care and understanding of how the setback affects employees on a personal level, demonstrating emotional intelligence.

• Provide Regular Updates: Keep communication consistent with updates on progress and recovery efforts. Frequent touchpoints ensure employees feel informed and involved.

6) Take Practical Steps for Moving Forward: Leaders and culture advocates can take specific steps to bring the team back together and create a positive outlook after a setback.

• Co-Create Solutions with Employees: Involve employees in recovery planning and encourage their input, fostering ownership and engagement in the path forward.

• Focus on One Clear Goal at a Time: Simplify efforts by setting a single, achievable objective to give teams focus and a tangible sense of progress.

• Revisit and Reframe the Vision: Share an updated vision for the future that inspires hope and aligns with lessons learned from the setback.

Leadership is hard. It is even harder for leaders who do not learn how to recover after setbacks.

🐣If you're too chicken to face setbacks, step aside.

For information about Culture Matters, click here.
All are welcome because culture matters to everyone.

The Real Cost of Catering to Toxic Clients: A Culture Perspective

Culture Matters, the monthly forum that tackles topics that impact company culture, tackled toxic customers in the conversation held last Friday, October 18, 2024.

Toxic customers, while rare (hopefully!) have a ripple effect on the company, people involved, and people who see the toxic behavior tolerated. The company can be impacted financially by scope creep, depleted morale, disengagement, turnover, and damaged reputation. Employees can be impacted when customers berate them, disrespect boundaries, and demand services beyond what is agreed upon.

When leaders allow disrespectful customers to continue treating employees poorly, they send the signal that their people do not deserve respect.

We have not had toxic clients in recent years, but some clients have. One executive client, Pam, shared about the client point person, Dwight, being so toxic that no one else will deal with him. Pam (names changed, obviously) said Dwight is rude, belittles the women account leaders, and demands they are available 24/7. No one wanted to work with Dwight, but his account brought in decent revenue. His account landed with Pam’s team because she was thick-skinned and could handle him.

And, she could. She did not take his treatment personally. The interesting thing Pam noted, however, was that her bosses would not speak with Dwight about how he treated their colleagues. Their lack of courage showed a side of leadership that discouraged her, and she lost respect for them saying, “They don’t respect me very much either.”

The Culture Matters conversation included a discussion around how to recognize the toxic behavior early so we can head it off before it gets out of hand. A few things to watch for…

◼️ Natural stages in the client relationship (i.e., new point people, account changes)
◼️ Consistent disrespect, boundary violations, or manipulation
◼️ Missed or constantly late deadlines, payments, meetings

To prevent toxic relationships, prevent them from occurring in the first place by onboarding clients to your company’s way of working. Include communication styles and expectations, boundaries (i.e., emails are read between 9am and 6pm), workflow, and confirming project scope.

 Seek to bond with clients early and often so communication is clear all along and relationships don’t have time to sour.

Here are a few other things discussed in this month’s Culture Matters:

◼️ Examples of Toxic Client Behaviors: Participants shared examples of toxic behaviors, including constant disrespect, unreasonable demands, aggressive communication, arguments about fees, and manipulative tactics.

◼️ What Non-Leaders Can Do: It’s important for employees to document interactions, escalate issues when necessary, and maintain professionalism while protecting their well-being.

◼️ What Leaders Can Do: Leaders have a responsibility to set boundaries, provide support to employees, and take decisive action when a client relationship becomes untenable. Discern how the values of the company align with the behavior you are tolerating.

The company culture will become the worst behavior you tolerate, so be careful what you expect your employees to accept. Be intentional about the behavior you accept.

 One of the worst statements in the history of business is: the customer is always right. They are not always right, and the pressure of that expectation contributes to toxicity. While there’s no need to be harsh when a client is wrong, bending over backwards for clients who are not only incorrect but also toxic goes beyond what’s reasonable for any company or employee to endure.

If you take care of your employees, they will take care of your customers. The Ritz Carlton, known for exceptional customer service, has this philosophy nailed.

"We are superior to the competition because we hire employees who work in an environment of belonging and purpose. We foster a climate where the employee can deliver what the customer wants. You cannot deliver what the customer wants by controlling the employee." 

Horst Schulze, Former Ritz Carlton President

---

Join the Next Culture Matters Session!

Register for our next Culture Matters discussion on November 15, 2024, where we'll dive into “How to Boost Your Culture After a Setback.” It’s a perfect follow-up to this month’s conversation, offering strategies to rebuild and boost culture after challenging times. We look forward to seeing you there!

What AI Can’t Replace: The Value of True Human Connection

The more I dive into AI strategies, the more I appreciate just how valuable genuine connection is. Have you felt that too?

This past Monday, we hosted the October AI Roundtable, focusing on AI’s Impact on Hiring—how it affects both companies and job seekers. It's a challenging situation with everyone involved feeling the friction. The potential benefits seem to be falling short.

A few weeks before the roundtable, I had a LinkedIn Live conversation with Scott Holsman, President of Next Level Performers, where we discussed the same topic. Our main takeaway? No matter how much technology evolves, finding ways to connect genuinely with others remains crucial.

At the AI Roundtable, participants—whether HR professionals, hiring managers, or job seekers—all landed on the same conclusion: in today’s world, genuine connection sets companies and individuals apart.

You can find a quick recap of the Roundtable on LinkedIn, but here’s what really stood out to me: despite our growing reliance on technology, there’s a deep, persistent craving for authentic human connection.

And we can definitely tell when it’s missing or fake, right? Several people shared stories about receiving automated emails with incorrect names—little mistakes that can make interactions feel impersonal.

When true connection is genuine, it becomes even more noticeable. That’s why a moment at a Starbucks a few months ago caught my attention.

I had arrived early for a meeting, and the Starbucks manager greeted me warmly the second I walked in. Her genuine approach made an impression, but when she later came over to clear away our trash so we could spread out our papers, I was truly taken aback.

The manager wasn’t just being polite; she was paying attention and looking for ways to make our experience better, without us even asking. That kind of thoughtful service is rare these days.

As I watched her throughout the morning, she kept up this attentive attitude—arranging items on shelves, picking up trash left by customers, chatting with other tables, and encouraging her team behind the counter.

Starbucks team at Blue Ridge Crossing, Independence, MO | Kelly Byrnes

Before I left, I couldn’t resist learning more about this remarkable manager.

Mikayla, as it turned out, was new to the role. She spoke about her team with enthusiasm and genuine excitement, looking forward to the new people joining them and the changes ahead. It was clear that she cared deeply about her team and their growth. Our conversation was brief, but it left an impression—she spoke more about her team than herself.

Her team noticed us talking and happily posed for a photo. I’m not sure if they’ll remember me, but I definitely remember them—and Mikayla.

Mikayla and her team at the Starbucks in Blue Ridge Crossing, Independence, Missouri, were living reminders of the power of genuine connection.

Just by being themselves, they connected with each other and with every customer who came through that morning. In doing so, they stood out from the many automated interactions we all face in our AI-driven workdays.

5 Ways to Create a Winning Culture from Day One

Managers are often so excited when their new team member’s start day finally arrives, that they cut out one of the most important things they could do: onboarding about the culture. They have been down a person, probably doing that job in addition to their own, so they are in a hurry to get the new person up to speed as quickly as possible.

Instead of onboarding about the company culture, managers bombard new employees with HR-related admin paperwork and hours of boring SOPs.

Nearly 88% of U.S. employees give their onboarding experience a failing grade. (source)

The same thing happens when a new customer chooses to work with the company. The company is so excited to begin the work, they dive in head first without setting the foundation for the relationship.

Those first few days are THE prime opportunity to build the bond between the new person and the company. It’s a bond that can pay off for a long time in big ways for the company, employee, and customer.

Benefits to the Company

1. Consistency and Alignment: Onboarding ensures that all new employees and customers understand and align with the company’s mission, values, and goals. This alignment is crucial for maintaining a unified direction and purpose.

2. Increased Productivity: Providing clear guidelines and expectations during onboarding reduces confusion and errors, leading to higher efficiency and productivity.

3. Enhanced Brand Reputation: A cohesive and positive onboarding experience strengthens the company’s brand by creating a consistent and favorable image.

4. Employee Retention: A well-structured onboarding process increases job satisfaction and retention by making employees feel valued and informed from the start.

5. Customer Loyalty: Effective onboarding builds strong relationships and trust, making customers feel like a part of the company community, which can lead to repeat business and referrals.

Benefits to the Employee

1. Clear Understanding of Role: Onboarding helps new employees understand their responsibilities and how their work contributes to the company’s goals.

2. Better Integration into the Team: By introducing new hires to the company culture and their colleagues, onboarding facilitates smoother integration and stronger team dynamics.

3. Increased Job Satisfaction: Feeling supported and valued from day one boosts morale and job satisfaction.

4. Access to Resources and Support: Onboarding provides employees with the necessary tools and resources to succeed in their roles.

5. Opportunities for Growth: A comprehensive onboarding process often includes training and development opportunities that set the stage for long-term career growth.

Benefits to the Customer

1. Enhanced Experience: Customers who are properly onboarded have a better understanding of how to use products or services, leading to a more positive experience.

2. Trust and Confidence: Onboarding builds trust and confidence by demonstrating the company’s commitment to customer success.

3. Personalized Support: Tailored onboarding processes cater to the specific needs of customers, enhancing satisfaction and loyalty.

4. Reduced Frustration: Clear instructions and support during onboarding reduce the likelihood of misunderstandings and frustration.

5. Long-Term Relationship: Effective onboarding fosters a strong, long-term relationship between the company and its customers, promoting loyalty and repeat business.

Onboarding is the critical process because it sets the foundation for a successful relationship between a company and its new employees and customers.

By investing in a comprehensive onboarding process, companies can enhance engagement, productivity, and loyalty, fostering a positive and cohesive organizational culture. Invest in a thorough process, and you can customize it for the needs of each division, product line, or operation.

Below are 5 strategies for onboarding employees and customers.

5 Ways to Onboard New Employees

1. Welcome Package: Provide new hires with branded materials and key information about the company that they can’t get from the website.

2. Orientation Sessions: Conduct sessions that introduce the company’s history, mission, and values. Tell a few relevant, heartfelt stories to help them connect with the company and feel proud to work there.

3. Mentorship Programs: Pair newcomers with experienced employees who can guide them through their initial days.

4. Regular Check-Ins: Schedule frequent touchpoints to address questions and concerns during the onboarding process and early months.

5. Team-Building Activities: Organize social events to help new employees build relationships and integrate into the company culture.
   

5 Ways to Onboard New Customers

1. Customer Onboarding Portal: Create an online resource with tutorials, FAQs, and key information.

2. Personalized Onboarding Plan: Develop a tailored onboarding plan that addresses the specific needs of each customer including needs related to their project and communication preferences.

3. Interactive Training Sessions: Offer live or recorded training sessions to help customers understand how to use products, tools, or resources effectively.

4. Regular Check-Ups: Schedule check-ups at reasonable intervals to assess the customer’s progress and address any issues. The key is to schedule these in advance rather than wait until there is an issue.

5. Feedback Mechanisms: Encourage customers to provide feedback on the onboarding process to continually improve it. Integrate feedback mechanisms into your project plan so they are used to giving it in a timely manner.

Use those actions consistently to engage with your new employees and customers, and they will bond better than if you leave them to view the intranet site alone for two or three days.

When a company neglects the onboarding process, it is likely to face several costly consequences that can take years to repair.

Impact of Neglecting Onboarding

1. Misalignment: Without onboarding, employees and customers may not fully understand or align with the company’s values and goals, leading to disjointed efforts and strategies. Disjointed efforts and strategies lead to more meetings, higher costs, and mistakes.

2. Decreased Productivity: Lack of clear guidelines and support can result in lower productivity, increased errors, and depleted morale.

3. Higher Turnover Rates: New employees who feel unsupported and disconnected are more likely to leave, increasing recruitment and training costs.

4. Customer Dissatisfaction: Customers who do not receive proper onboarding may feel neglected and frustrated, leading to dissatisfaction and loss of business. They may impact your reputation in the industry too.

5. Negative Impact on Team Dynamics: Lack of onboarding can hinder team cohesion and collaboration, as new employees may not understand their role within the team.

Clearly, there are many benefits to a thoughtful onboarding practice, and the consequences of skipping it are costly. Financially, disengaged employees cost companies approximately 18% of their salary, according to Gallup.

Investing in a comprehensive onboarding process is essential for the success of any company. It ensures that employees and customers are aligned, engaged, and supported, leading to a winning organizational culture that enables companies to accomplish their mission for the long-term.

How real is your purpose?

People are more motivated to work when a company's purpose is meaningful and aligns with them. Just know this: you can't trick your people for long.

For example, if you work for a tech company in the health and wellness space, your company's purpose is probably something related to better living or longevity.

You would expect to serve people, thus, generate revenue related to better living or longevity. Right?

But, if revenue is generated not by providing valuable resources but by annoying customers to death with pop-up ads, so they sign up for premium accounts just to stop pop-ups, is that really in alignment with the purpose?

If your company can't make money at its proclaimed purpose, maybe there is no market for it. Or, perhaps, something else is wrong.

In the tech health company example, if they can't make money helping people live better or longer, and they spend resources on algorithm maneuvers instead of building expert reputations, the purpose is not real.

The employees know it.

They won't fall for gut-wrenching speeches about how much you care about your customers, when all you're doing is minimal service then badger customers to get them to subscribe.

The employees see it, and it won't take long before customers see it too.

So, if you wonder about mediocrity or employee engagement, here is one thing to assess: How real is your purpose?