On our ‘Engaging People, Powering Companies’ podcast last week,

Amrit spoke on the topic of Organisational culture, specifically the toxic micro cultures that can develop within an otherwise positive Organisation and the dangers that these can present. Culture is a popular topic for us and something we are incredibly passionate about. We talk about it a lot! What we don’t always talk about though is the hidden, toxic, micro cultures that exist within an organisation that run in the background, eroding people’s experiences at work, despite the efforts made to make it the best place it can be.

So firstly, what do we mean by organisational culture? Well, academia defines it as the norms, values, attitudes, and practices that collectively help create an organisation’s identity. An easy way to understand it though, is to think about it as ‘the way things are done around here’, which of course encompasses everything. The day-to-day interactions, how we treat each other, and how we deal with problems, all show the type of culture we have. Different cultures can exist within the same organisation, which is what we are referring to when we say micro cultures. They exist within teams or departments, where the way they do things feels different to that of the organisation. And of course, these can be positive or not, but the focus here, is those that are not and could be considered toxic.

We come across this all the time, even in big open plan offices we see differences in culture from one desk to another! Where one team ends and another begins, you can sense the difference in cultures. These micro cultures exist in every organisation, where there is a them and us, our team here and that team over there that just don’t get it. Where there is one team vs another team, we get these micro cultures. It is inevitable and very human!

The problem in a culture that is considered positive in the main, is that we can miss the clues, focusing on the good, and therefore end up being blindsided when we discover that these toxic micro cultures existed, and maybe it is discovered all too late to claw it back. Especially if the engagement scores are good, or we hear from the same people feeding back in employee voice sessions. We can miss hearing from the people we really need to hear from, to identify and address anything untoward, and therefore inadvertently let people that are stuck in these toxic environments down.

Amrit shared a stat from the US that stated that toxic workplace cultures were costing American businesses over $9 billion due to disengagement and turnover. We know there is a tangible impact on turnover directly related to unhealthy cultures. People just don’t want to stay in such atmospheres. Another report said that 39% of people that quit, state that it was due to bad management or a toxic environment. These environments lead to burnout, poor morale, and indicates that bad managerial behaviour, that goes unaddressed, fuels these environments. This is real, people are experiencing it and dreading work on a Monday morning.

So as a leader, how can we spot and eliminate them? It starts with knowing your team and being really curious about how those that report into us, treat their people. We need to be sure that those in our structure are aligned with and believe in the culture and the expectations we are role modelling and expecting. Not to just trust what our direct reports tell us, but be a leader out and about, taking notice. To be really intrigued by any feedback and data that comes out of engagement surveys or feedback mechanisms, that isn’t just for our area rolled up, but for each individual group that makes up the whole, even if our area is looking great on paper.

We need to get down to the route cause in order to address such environments. Those managers you lead, why might some of them drive toxic cultures? It could be down to the fact that we recruited (or inherited) someone that just isn’t a good fit. Were their personal values aligned to that of the team and the organisation? Or could they have been promoted too quickly and are struggling to balance stepping into a new role and persona, within the team. Perhaps they have not had adequate support or training to cope with the needs of the team and the changing skill sets required to lead.

People that are struggling in their roles can have one face for their peers and their boss, and then another one, that is quite different for their people, only surfacing behind closed doors. This of course stems from pain, fear, uncertainty, or a lack of confidence, but whatever the reason, it is damaging and needs to be addressed.  Or it could be to do with high pressure, or unclear expectations. Pressure can really change people, so being as close to your direct reports as you can, and knowing them well, can ensure we get ahead of these types of feelings and help upfront.

Maybe though it is just the personality trait of this person. Maybe they are someone who likes control and micromanaging and is just part of their character. In this instance, we have to dig in ourselves and do the work to manage this person on to something more suited, or out of the business entirely. Failure to act in this scenario sends messages to the group that it doesn’t matter how you behave, or what we say is important, because we aren’t going to stand by it anyway. This erodes culture, and painfully so for all involved.

We would like to say that people don’t really experience this, but of course we know they do, and we get to hear about it on an all too regular basis. The impact of it leads to good people leaving, lower engagement and productivity, which of course impacts the bottom line. The financial toll of the loss in productivity due to people being run into the ground, burnt out, and frustrated can be hard to measure, but dangerous to ignore.

As leaders, the ask is that we be vigilant. Anyone going through this on the ground needs to know that the people above see what is going on, understand, and care enough to do something about it. Get into the details of any data you have, be it engagement data, absence, or turnover figures, what are the patterns? Collect regular feedback, and get your teams used to doing the same. Being bold and using 360 degree feedback surveys are insightful and great tool if you are developing leaders, to understand where people are starting from in their leadership journey and then again at the end of any programmes, to see improvements made along the way. We need to have our eyes wide open to any red flags, and these things help.

If we do discover these toxic micro cultures and we work to address the route cause, the final point here is not to forget what it might take to earn the trust back of those that have been impacted. This takes time, but with genuine care and a genuine intention to make things better, people will thank and respect you for it and choose to give their trust again willingly. 

Click here to listen to the podcast.