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.

Unlock the power of your company culture

When I started working with companies on their culture 20+ years ago, every company had the same words painted in fancy fonts on their walls:

Our people are our most important asset.

It was one of the first indicators that they talked more than walked their company values, especially since most of the time, the CEO who met me in the lobby and walked to the board room did not even acknowledge colleagues we passed along the way.

The better indicator? The colleagues did not acknowledge the CEOs either.

Fewer companies have trite sayings like that blasted on their walls these days, but culture is more important now than ever.

Seven reasons company culture is so important right now are…

1. Changing market demands require speed of innovation, which can be slowed by internal functions with reams of red tape in a mediocre culture.

2. Employees today expect empathy from Managers, which many Managers do not have capacity or skills to provide. The increased pressure on Managers impacts their self-esteem, diminishes their productivity, and leads to burnout.

3. Increased time to hire for many key roles leaves roles unfilled, which strains current employees and Managers trying to maintain productivity and performance.

4. Increased remote and hybrid work environments, where face-to-face interaction is limited, culture becomes even more critical. It bridges the gap between physical distance and helps create a cohesive, unified team.

5. Different generations in the workforce bring different skills and expectations. The expectations Gen Z and Gen Alpha have of Managers, workplace rules, development, and career paths are changing company cultures and how companies function.

6. Increased expectation of trust on all fronts. Customers, employees, and companies expect to trust each other, and they need to build and reinforce the trust all the time. Their culture nourishes the trust and reveals when it’s not there too.

7. Companies who take an hour to decide what to serve at the summer picnic or leadership teams who need three meetings to choose brochure colors do not have a strong enough culture to implement and capitalize on AI safely or successfully.

There are many more reasons. What would be on your own list?

Company culture is not just about perks or the atmosphere at work. When cultivated intentionally, it influences everything from employee engagement, retention, and performance to management capacity to innovation and company performance.

The organizations that thrive are those who understand culture as a strategic asset—not just something that happens organically, but something to be shaped and nurtured. All. The. Time.

Today’s Culture Matters topic was, “How to unlock the power of your company culture.” The group of business owners, leaders, and professionals talked about the changes happening in the world and inside companies and what we can do about it.

If you want in on relevant, modern conversations like this, join Culture Matters next month. (Find out more here)

When you’re ready to talk about how to nourish your culture and treat it like the strategic asset it is, email us. We can help. 

Culture drives performance.
Don’t leave it to chance. Join us!

Getting in the Zone: What Business Leaders Can Learn from Patrick Mahomes

Instagram post by coach dan casey.
click to see the video

This video (shared by Coach Dan Casey on Instagram) shows the small gesture Patrick Mahomes, quarterback for the Kansas City Chiefs, makes to the sideline that he’s ready for the next play. His teammates and Coach Reid say it indicates when Mahomes is in the zone.

Travis Kelce said, “When he gets in his super-competitive mode, he’s locked in.”

Coach Reid said, “He doesn’t even know he’s doing it.”

Whether he's dodging defenders, making behind-the-back passes, or leading the team down the field, there’s a point where everything just clicks. He signals to the sideline, calling for the next play, ready to keep the momentum going.

As business leaders, founders, and executives, we face our own kind of high-stakes game every day.

Though we may not be on a football field and have more than a game at stake, we need to get in the zone, stay there, and lead our teams with the same focus, agility, and confidence that Mahomes displays.

But how do you do that in business?

Here are three key ways to get in the zone, stay there, and lead your team to a championship-level performance.

1. Getting in the Zone: Preparation Meets Opportunity

Mahomes doesn't just wake up on game day and become great. He spends hours studying film, practicing throws with teammates, and running drills. His in-the-zone moments are the result of preparation. The same goes for leaders. You can't expect to reach peak performance without putting in the groundwork.

For business leaders, this preparation looks different, but it’s equally crucial. It might involve analyzing market trends, deepening your understanding of your industry, or strengthening your leadership skills. Are you learning, growing, and adapting as fast as your industry demands? When opportunity knocks, will you be ready to capitalize on it?

The key is discipline. Just as Mahomes commits to practice, leaders must commit to ongoing self-improvement, whether that’s through education, developing a more agile mindset, or executive coaching. Preparation is how you position yourself to recognize and seize opportunities when they arise.

2. Staying in the Zone: Focus, Flexibility, and Trust

One of the most remarkable things about Mahomes is his ability to remain calm under pressure. When the game is on the line, or he is being chased by defenders, he doesn't panic—he focuses. For business leaders, staying in the zone means maintaining focus amidst chaos. In our world, the pressure comes from shifting markets, competition, or unforeseen challenges with employees, customers, or suppliers. Staying locked in means you’re ready for whatever comes next.

But focus alone isn’t enough. Flexibility is key to staying in the zone. No game ever goes exactly according to plan, and no business does either. Heck, hardly any business day goes according to plan, does it?!

Mahomes doesn’t just stick to the playbook—he improvises. Similarly, great leaders stay flexible and adjust their strategies on the fly when circumstances change. They recognize that what worked last quarter may not work now, and they’re willing to adapt.

Finally, staying in the zone as a leader requires trust—trust in your team, your process, and your own instincts.

When Mahomes signals for the next play, he’s trusting his teammates to execute. He doesn’t micromanage; he empowers. For leaders, this means cultivating a culture where teams can perform at their best without constant oversight. Trust your team to make decisions, take risks, and grow. That trust keeps everyone focused and aligned, even when the pressure is on.

3. Leading to Victory: Keep the Momentum Going

Once Mahomes is in the zone, he doesn’t slow down. He signals for the next play quickly, keeping the defense on its heels. For leaders, this means knowing when to capitalize on momentum and push your organization forward. Too often, companies lose steam after initial success because leaders fail to sustain momentum. Sometimes, leaders take success for granted, as if the next steps will be easy because they surmounted the last hurdle.

Keeping momentum in business requires a forward-thinking mindset and decisive action. Are you continuously looking for new opportunities to innovate, grow, or pivot when necessary? Or, do you wait to see what your competitors or customers do? Are you setting the pace or is someone else?

Are you building on your team’s strengths and wins, while learning from setbacks? Like Mahomes, you can’t afford to coast after a touchdown. The game isn’t over whether the Chiefs scored or the opponent did. Play to the very end, even if it’s decided by the smallest sliver of a toenail amount. Give your best the whole time.

In football, it’s not just the quarterback who wins the game; it’s the entire team working together. The same is true in business. As a leader, it’s your job to ensure that your team feels like they’re part of something bigger—that every role matters, and every contribution propels the organization closer to its goals. Create a culture of accountability, where everyone is invested in the outcome.

Include rewards too because when the team reaches the pinnacle because of its investment, the celebration is sweet!

The key to championship-level leadership is a blend of disciplined preparation, laser-sharp focus under pressure, the flexibility to adapt, and the trust in your team to execute.

So next time you feel the pressure mounting, think of Mahomes. Signal for the next play. Stay in the zone. Keep your team moving forward.

You can probably nearly pinpoint when you will feel pressure again the same way Mahomes can because he watches game and knows the schedule. What can you anticipate coming up? How can you prepare for it? How can you get in the zone, stay there, and lead your team no matter what else is going on?

Championship seasons aren't won by accident—they’re the result of intentional, consistent leadership. What is your intention for your team?

The Perils of Picking a CEO

The Perils of Picking a CEO:
5 Things Starbucks Can Teach Us All About Leadership Hires

Red flags were all over the field when Starbucks hired Laxman Narasimhan as CEO in 2023, so it was not a big surprise when there were challenges during his tenure, and his time there ended after just sixteen months. The five red flags below could happen to any company, and they are shared to help others avoid the same outcomes Starbucks and its employees and customers experienced.

CULTURAL MISALIGNMENT

Starbucks has a strong and unique company culture that emphasizes community, employee engagement, and a commitment to social responsibility. Narasimhan's previous roles, particularly in the more corporate and profit-driven environments of PepsiCo and McKinsey, signaled a potential misalignment with Starbucks' values. His approach to leadership which focused on financial performance, may not have fully resonated with the Starbucks ethos.

Outcome: During his tenure, there were reports of declining employee morale and dissatisfaction among baristas, who felt overworked and underappreciated. This could be seen as a sign that Narasimhan's leadership style was not effectively fostering the inclusive and supportive environment that Starbucks prides itself on.

LACK OF RETAIL EXPERIENCE

One of the most obvious red flags was Narasimhan’s lack of experience in Starbucks’ core business. Narasimhan had a background in consumer goods, particularly at PepsiCo, and twenty years consulting at McKinsey & Company, but he lacked direct experience managing the core of Starbucks' business: retail. The retail sector, especially at the scale of Starbucks, requires a deep understanding of operational complexities, supply chain logistics, and frontline employee management—areas where Narasimhan's experience was limited.

Outcome: This gap in experience became apparent when Starbucks faced operational issues with the mobile order-ahead system. The new system was intended to enhance customer experience, but instead led to store-level chaos. Long wait times frustrated customers and stressed employees, highlighting a disconnect between corporate strategy and on-the-ground execution.​

STRATEGIC MISJUDGMENTS

Narasimhan's decision to prioritize and rapidly implement mobile order-ahead services was seen as a strategic move to modernize Starbucks. However, this strategy underestimated the operational strain it would place on stores and did not account for the complexities of managing increased digital orders alongside in-store customer service.

Outcome: The mismanagement of this initiative led to customer dissatisfaction, with many frustrated by long wait times and a decline in service quality. The strategy also alienated some loyal customers who valued the in-store experience over the convenience of mobile ordering​. The operational strain negatively impacted employee morale too.

POOR CRISIS MANAGEMENT

Starbucks, like many global brands, often finds itself at the center of social and political debates. Narasimhan's handling of the Israel-Gaza conflict, which sparked backlash from both pro-Palestinian and pro-Israeli customers, highlighted a lack of adeptness in navigating sensitive issues that require a nuanced and careful approach.

Outcome: The company's handling of this situation not only led to a public relations challenge but also negatively impacted sales. Narasimhan might not have fully appreciated the complex dynamics of leading a brand like Starbucks, which is deeply intertwined with its global customer base's social values​.

INVESTOR AND BOARD RELATIONS

Howard Schultz, the former CEO and a key figure in Starbucks' history, had a significant influence on the company and its strategic direction. Despite Schultz initially endorsing Narasimhan, there were signs that Schultz's confidence in Narasimhan waned as financial and operational issues surfaced. Additionally, activist investors like Elliott Management began to pressure the board for changes, indicating growing dissatisfaction with Narasimhan's leadership.

Outcome: The eventual loss of support from Schultz and activist investors contributed to Narasimhan's premature exit. The fact that these influential stakeholders lost confidence relatively quickly could be seen as an indicator that Narasimhan was not the right fit for the role​.

While the first two red flags were visible prior to hiring Narasimhan, the others evolved. The first two should have been enough to either not hire him in the first place or create a different onboarding plan.

For his onboarding, Narasimhan spent six months training as a barista, which gave him insight into daily store operations. He saw the anxiety over keeping up with long lines of customers and their orders, tension between stores and corporate, and supply chain management issues. He burned his hand during his time in the stores. He had good intentions but his misunderstanding of the culture and lack of experience with operations would have taken too long to repair the challenges Starbucks faced at the time.

The takeaways for our companies and us as leaders? Pay attention to the red flags you see when you are interviewing as the candidate or company.

A thorough understanding of the challenges facing the company, the skills needed to face them in the timeframe required, and a customized onboarding plan would have helped Narasimhan and Starbucks.

That understanding might have prevented Narasimhan from getting burned literally or figuratively by taking on the role in the first place.

5 Ways you can be just like Olympic Champion Simone Biles

Simone Biles may be just 4’ 8” tall, but she’s a giant when it comes to mental fortitude. She continues to show her strength throughout the 2024 Olympics on and off the mat, beam, bars, and horse.

While many thought she was weak when she bowed out of the Tokyo Olympics, that step may have taken the most strength of all.

What do you think Biles may have considered to make that move?

• Years of hard work it took to earn the Olympics spot

• Letting down her teammates

• Wrath from her coaches

• Obligations to sponsors

• Disappointing her family and friends

• Becoming a punch line about mental health

• Fear of the future

Heck, we all know people who won’t even call in sick for a day, much less take time off for their own mental health. Would you?

Biles has something important figured out.

She knows there is something inside her that made her capable of improving her mental health and being even better after the improvement. It’s called resilience.

Resilience is not making it through. That would have been Biles being fine and healthy after leaving Tokyo. Throughout the 2024 Olympics in Paris, however, Biles has shown she is even better than prior to those “twisties” that caused her to depart Tokyo.

These are five times Biles has shown her Olympic-sized mental fortitude during the 2024 Olympics:

Simone Biles during the gymnastics all-around final. Photo: Jamie Squire/Getty 

1. Celebrates Others. Floor silver medalist Biles and her teammate, bronze medalist Jordan Chiles, bowed to gold medalist Rebeca Andrade when Andrade stepped to the podium. Pure joy on Biles face showed no regret over her routine or for winning silver instead of gold. Her responses to questions about the bow show mental fortitude as well. She celebrated the moment genuinely.

2. Focus. When asked about her messy hair, she shut down comments saying there was no air conditioning on the bus. She was not going to let messy hair occupy her mind and neither should anyone else. In the past, her hair would have made the cover of every media outlet; however, since she shut it down, it did not become a major topic around the world.

3. Stands up for Others. Biles has stood up when people she cares about have been criticized or insulted. When her husband was criticized for wearing her gold medal, she shut it down. When a former teammate criticized the current team, she shut it down. When people kept asking Olympians, “What’s next?” Biles, suggested they stop asking and let the Olympians enjoy their moment. She speaks up on behalf of others because she is not afraid.

4. Supports Others. When Biles learned that her teammate Jordan Chiles was going to retire from gymnastics, Biles invited her to train at Biles’s gym in Texas. This was several years ago, and the two bonded over mental health and fortitude ever since. Their support for each other spread over the team at these Olympics. Perhaps that bond even contributed to the bow mentioned above.

5. Protects her Mental Health. She continues her mental health practices during the Olympics. She has spoken about calling her therapist from Paris, and the beautiful photo above of her meditating in the gym shows how centered she is. (Photo credit: Jamie Squire/Getty)

So, what does Simone Biles have to do with business leaders?

• When was the last time you genuinely celebrated a peer?

• When was the last time you shut down useless criticism and didn’t take it personally?

• How often do you stand up for others without fear?

• How do you bring out the best in others?

• How do you protect your mental health and that of your team?

We can learn from Simone Biles and try to be like her. Okay, there may be no way we can do her double layout with a half-twist in the second twist, but we sure can do the same five things when it comes to mental fortitude.

We can become self-aware of our physical and mental needs so we are able to...
⚫ Celebrate others. Do it today. Identify a peer or teammate who has worked hard to improve or contribute differently and give them the recognition they deserve.
⚫ Focus on your priorities. Release what you are taking personally, especially when evidence does not support those thoughts.
⚫ Stand up for others. Encourage others to stand up for their needs, and don’t stand by when others disparage professional colleagues.
⚫ Support others. Watch out for your peers and teammates. Notice and offer help when they need breaks before they get burned out or self-sabotage.
⚫ Protect your mental health. Create a morning routine that centers you to start each day and keep it no matter what else goes on in life.

As Biles has shown, self-awareness of our physical and mental needs is just as important to championships as twists, flips, and jumps.

Taking care of our mental needs might be even more important to enjoying championships.