How to Detox a Toxic Culture
No leader strives to create a toxic culture. It's a liability. Just its mention can stir up negative emotions within those with experience. Evidence from an MIT Sloan study suggests a toxic workplace is the most potent driver behind the more than 50 million workers who quit their jobs recently. Employees and leaders are trying to avoid toxic cultures at all costs. But when present, there is no escaping, even if working remotely. It is easy to understand a toxic culture is bad for business. But often, it's much less clear for leaders to distinguish between a characteristic of the culture that is just irritating and one that is so dreadful that it makes the culture toxic. For example, a cash-strapped healthcare system hired a new doctor – let's call him Dr. Strange – who was considered the best surgeon to lead a new, highly competitive, and lucrative service line. During a surgery, Dr. Strange slapped a nurse's hand in the operating room out of frustration. Although not always as ruthless and obvious in the workplace, toxicity often forces leaders to wrestle with the question, is tolerating the behavior worth the cost of dealing with the bad behavior? A positive company culture is a competitive advantage and force multiplier. Here are five signs you have a toxic culture and two steps every leader can take to detox the cutlure.
Why Leaders Need to be Concerned About a Toxic Culture
Culture is the one thing that influences everything in your business. It directly impacts your success, your employee's success, your customers, and the communities where you operate. Your organization's underlying cultural values influence employee behaviors and decisions.
A recent study by MIT Sloan into the factors driving the great resignation identified that toxic company culture is a more reliable predictor of voluntary turnover than how employees assess their compensation. Surprised? Evidence from this study suggests that a toxic organizational culture is more than ten times stronger at influencing employee attrition than what you are paying your employees.
There are negative consequences when employees are treated rudely or blamed for things over which they have no control. A survey of 800 leaders and employees across 17 industries revealed the following reactions to a lack of civil treatment in the workplace:
48% decreased effort
66% lower quality work performed
78% less organizational commitment
63% lost work time avoiding the offender
80% lost work time worrying about how they were treated
The side effects of a toxic culture extend beyond the workplace. Evidence suggests that negative consequences create a harmful ripple effect. Employees working in a toxic workplace report experiencing decreased well-being and increased work-family conflict.
Does Your Company Culture Show Signs of a Toxic Culture?
Company culture is a complex topic because it involves individuals, their interactions, teams, and the organization. A toxic culture is characterized by harassment, bullying, insulting leadership, threatening behaviors, and incivility directly linked to workplace stress.
There are many different opinions on the attributes of a toxic culture. Analysis by MIT Sloan revealed that the five most pervasive characteristics of cultures that are toxic and not just irritating:
Toxic Sign #1: Lack of Consideration, Courtesy, and Dignity
Feeling disrespected can deeply affect an employee's perception of their workplace environment and their overall satisfaction within the corporate culture. When individuals feel valued and respected, they are more likely to be engaged, motivated, and committed to their work. Respect in the workplace goes beyond mere politeness; it involves creating an inclusive and supportive atmosphere where all voices are heard and considered.
Encouraging employees to contribute their ideas and perspectives not only fosters a sense of belonging but also leads to innovation and creativity within the organization. When individuals feel that their opinions matter and are taken into account, they are more likely to be invested in the success of the company. Moreover, actively listening to others before expressing one's own viewpoint demonstrates empathy and understanding, which are essential components of a respectful and collaborative work environment.
Toxic Sign #2: Lack of Inclusion
This sign highlights the issue of companies failing to embrace diversity and inclusivity. The notion of an "us and them" mentality within the workplace is particularly concerning, as it signifies a deep-rooted division among employees. Such division not only hampers collaboration and teamwork but also creates a toxic work environment where individuals feel marginalized and undervalued.
Toxic Sign #3: Unethical and Dishonest Behavior
In addition to engaging in unethical behaviors such as cheating, being shady, lying, and misleading, it is crucial to highlight the importance of upholding regulatory compliance and safety standards within the workplace. By adhering to these guidelines, not only are employees protected from potential harm and hazards, but the overall well-being and efficiency of the organization are also safeguarded.
Regulatory compliance ensures that the company operates within the legal boundaries of governing bodies, promoting transparency, accountability, and trustworthiness. Similarly, upholding safety standards not only mitigates risks and prevents accidents but also fosters a culture of care and respect for employees' welfare. By incorporating these elements into the workplace, organizations can create a positive and secure environment that prioritizes both ethical conduct and the well-being of their workforce.
Toxic Sign #4: Ruthlessness and Backstabbing
These behaviors, characterized by a lack of teamwork and collaboration, represent a significant barrier to productivity and team dynamics. Instead of working together towards a common goal, individuals engaging in such actions actively undermine their colleagues and disrupt the harmony within the team. This deliberate sabotage not only damages relationships but also erodes trust and creates a toxic work environment.
By throwing their peers under the bus, individuals shift blame and avoid taking responsibility for their own actions. This behavior not only damages the reputation of the person being targeted but also reflects poorly on the individual engaging in such tactics. The repercussions of these actions can be far-reaching, leading to decreased morale, increased conflict, and a breakdown of communication within the team. Effective teamwork and collaboration are essential for achieving success in any organization. When team members engage in sabotage and betrayal, it undermines the foundation of trust that is necessary for a cohesive and productive team. Addressing these behaviors requires open communication, setting clear expectations, and fostering a culture of respect and accountability among team members.
By promoting a positive and supportive work environment, teams can overcome these challenges and work together towards shared goals.
Toxic Sign #5: Harassing and Bullying
Yelling, physical and verbal abuse, as well as condescending comments and treatment, create an atmosphere of fear and negativity. Such behaviors can lead to a breakdown in communication, erode trust among individuals, and ultimately harm relationships. It's important to address these issues promptly and effectively to foster a safe and respectful environment for all individuals involved. Additionally, exploring the underlying reasons for such behaviors and implementing strategies for conflict resolution and emotional regulation can help mitigate the impact of hostility in interpersonal interactions.
Culture Detox Step #1: Define Your Company Culture
Defining your company or team culture in measurable and actionable terms can feel overwhelming, but it is extremely helpful for creating and sustaining positive change. The concept of culture is often considered too abstract and poorly understood.
The Competing Values Framework is an actionable measure and framework for defining your company culture. It identifies four fundamentally different cultures.
Clan Culture creates a collaborative atmosphere like a family. This culture emphasizes the value of teamwork, participation, and a consensus decision-making style.
Adhocracy Culture creates an energetic and entrepreneurial atmosphere. This culture stresses the importance of research and continuous improvement.
Market Culture creates a competitive, fast-paced, results-oriented environment. This culture highlights coming in first.
Hierarchy Culture is a top-down, formal, rule-based atmosphere. This culture emphasizes efficient, reliable, and cost-effective performance.
Note: Adapted from Cameron and Quinn (2011).
The framework enhances cultural understanding by simplifying the cultural description to only two fundamental dimensions: flexibility or stability and internal or external focus. A culture survey aligned with the Competing Values Framework can define the alignment of the current culture with the preferred organizational culture.
"Feedback is the breakfast of champions." Blanchard
Culture Detox Step #2: Be the Change
Gandhi said, "Be the change you want to see in the world." Often, accidental bad leadership habits trickle down and become acceptable behaviors. A recent study found that only 12% of companies claim to have a program in place to define and improve culture.
Every leader can model good behavior and ask for feedback from followers.
Enhance your self-awareness of your leadership habits.
Evaluate the ethical consequences of your decisions and create an open-door policy allowing employees to provide input where their voices and concerns can be heard.
Then, actively architect and manage the workplace culture.
Hire and fire employees to create and reinforce the desired company culture.
Teach leaders and employees through stories about how they should respond in different situations and the costs of tolerating toxicity.
Reinforce and communicate the importance of trust and teamwork.
Reward employees who live the desired culture.
Measure company results and alignment with the preferred company culture.
References
Hickok, H. (2021). Why toxic workplace cultures follow you home. BBC.
Porath, C. & Pearson, C. (2013). The price of incivility. Harvard Business Review.
Priesemuth, M. Times up for toxic workplaces. Harvard Business Review.
Priesmuth, M. & Schminke, M. (2017). Helping thy neighbor? Prosocial reactions to observed abusive supervision in the workplace. Journal of Management.
Schein, P. (2017). Organizational culture and leadership (5th ed). Wiley.
Sull, D., Sull, C., & Zweig, B. (2022). Toxic culture is driving the great resignation. MIT Sloan Management Review.
Sull, D., Sull, C., & Zweig, B. (2022). Why every leader needs to worry about toxic culture. MIT Sloan Management Review.
Van Rooij, B. & Fine, A. (2018). Toxic corporate culture: Assessing organizational processes of deviancy. Administrative Sciences.
Wang, Z., Zaman, S., Rasool, S. F., Zaman, Q. U., & Amin, A. (2020). Exploring the relationships between a toxic workplace environment, workplace stress, and project success with the moderating effect of organizational support. Risk management and healthcare policy, 13, 1055–1067.
