Is it possible to change team culture? Or is culture part of the team’s DNA? The short answer is “Yes, it can be changed”.
Consider IBM in the 1990s. In the 1970s, the company produced 70% of computers worldwide. It was one of the USA’s technology success stories. The IBM corporate culture was legendary. Yet by the 1990s, this had all changed.
In 1993, IBM posted an $8 billion loss: the largest in US corporate history. Decisions were slow to be made and were often overruled by multiple layers of management. When Lou Gerstner arrived as IBM’s new CEO in 1993, he knew that to save the company he needed to transform its culture. He took bold steps.
One of Gerstner’s first moves was to eliminate the company’s tradition of “permanent employment.” Under this cultural norm, employees had job security and benefits for life. Gerstner replaced that with a performance-based norm where employees were rewarded for their contributions to the company. Under Lou Gerstner’s leadership, IBM’s market share rose from $29 billion to $168 billion. A once bureaucratic culture became a culture of performance.
Creating culture is a leader’s responsibility. If her team’s culture no longer serves its mission, then she must change that culture. Changing culture requires relearning behaviours and resetting norms. You must bring your team from comfortable performing to the ambiguity of storming. But, over time and with purpose, culture can change.
Culture is both a cause and a consequence of what got you here. It might not be what you need to get you there. The good news? Culture can be changed. How have you seen culture successfully changed?