Leading Culture Change Series, Part 3
Leading culture change successfully requires the application of three principles. The first two were discussed previously in this series.
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Use the conveyers of culture – artifacts, icons, stories and heroes – to change the culture
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To gain commitment get their fingerprint on the clay that molds the new culture
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Communicate why the culture change is needed, in simple straightforward terms
Do these principles really work? Yes. The proof lies in the pudding of real-life stories about…
Leading Culture Change
In 1999 Kent Thiry became CEO of DaVita, a provider of kidney dialysis treatments. At that time the company was on the verge of bankruptcy. It had revenues of $1.4 billion, losses of $56 million, and a share price of about $2. By June 7, 2013, after the culture change, share prices had grown to $125.50. This magnificent turnaround resulted from changing the culture. To succeed in doing so Thiry ensured that:
1. Employees understood why the change was needed and the direction in which they were headed
2. People’s fingerprints were on the clay that molded the new culture
3. The artifacts, stories and heroes were different, evident, and in concert with the newly defined culture
Many turn-around execs use the slash and burn method. But CEO Kent Thiry intuitively knew in his heart of hearts and mind of minds, that culture change from the inside out was the one right way to save a failing company. He was right about that and right again when he used all three principles to lead culture change.
Leading Culture Change: Why are We Changing? (Principle #3)
Thiry told employees “We are going to flip the ends and means of this business. We are a community first and a company second.” DaVita employees would care about their patients, first and foremost. Thiry knew that this change also required employees to care about each other and the company. Thirly, and an executive I’ve had the pleasure to work with, know that a company cannot achieve its potential with two faces – one facing inward and a different one facing outward.
Leading Culture Change – Get Their Fingerprints on the Clay (Principle #2)
Naming the new company put the first set of fingerprints on the clay of culture change. What could be more symbolic? (principle #1) When Thiry took over, the company was called Total Renal Care. Cold. Clinical.
The new name was decided by a vote of 800 employees who were chosen to represent the entire employee population. DaVita means “he or she that gives life”. The company and the employees were being transformed from providers of renal care to givers of life. This uplifting name change began to shift the focus from treating body parts to providing life giving care for whole human beings.
Leading Culture Change – Artifacts, Icons and Stories (Principle #1)
The name change to DaVita was announced in an iconic celebration similar to election-night victory celebrations. It is also celebrated in an official company song that employees sing with pride. Thousands of employees have walked across a wooden bridge
at DaVita’s California offices, to symbolize their passage into a the new culture and a new way of being. The company also holds Nationwide Meetings, to celebrate awards, mourn the death of patients, and connect, by way of shared stories, to the emotional side of their work. Thousands of employees participate. They don’t attend to listen to the big kahunas. Instead they share stories and celebrate the new cultural heroes who care about each other, the company, and their patients.
Contemplating culture change? Already in the thick of it and things aren’t going so well? Don’t waste another moment. Invest 30 minutes, one call, to learn how you can apply the principles for leading culture change in your unique situation.
Culture Change series
Part 1 – 4 Delegation No Nos and Part 2 – Use the Culture to Change the Culture