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Transcript

[00:00:00] Aubrey Bergauer: Hello, everyone. I am recording today from Los Angeles, where I have been working slash escaping, we'll say. Escaping because I mentioned in the last episode, I'm in the middle of this big kitchen remodel project, and my house is a total construction zone. And if you have ever done any kind of remodel or renovation project, you know, Not having a kitchen means you are, like, doing dishes in the bathtub, eating out way, way too much because you have to, and just all kinds of things that are, I guess, fine for a little bit, but not really enjoyable for weeks on end.

So, my partner and I decided to take a road trip down to Southern California for a week to kind of work hard, play hard, and get an Airbnb with a kitchen so we can actually not eat out a million times this week. Okay. Speaking of renovations, we are talking a little bit this week about how to renovate [00:01:00] our cultures at our workplaces.

If you listened to the last episode, you know we talked about the toxic traits of company cultures and ended. Hinting at this idea of culture renovation and how we are tasked with not burning it down, but the data and research show that organizations that really look at how to renovate, how to preserve what's working about the tradition and keeping the good and then building on top of that are the ones that are more successful with developing stronger cultures.

We talked last time about the nine traits of toxic company culture. So if you want the list of the hard stuff, the negative stuff, that's all there. But today is the positive stuff. So their research, I4CP is the company we're pulling all this from. Their research measured the differences between those two different types of company cultures, toxic cultures versus healthy company cultures.

And the part I love most is that all of this directly correlates to to financial performance. So [00:02:00] healthy company culture, strong company culture, directly leads to better financial performance. I said this last time, I'll say it again. For anybody who thinks this culture stuff is like a quote unquote soft skill or somehow shouldn't or can't be a top priority when we all have quote unquote bigger fish to fry, or quote unquote, You know, we're just busy balancing the budget or whatever.

I am here to tell you that is all wrong. That's not what the data show. When we look at company culture, it really directly affects these other things that matter to us quite a bit in terms of the numbers. So, Peter Drucker, if you know that name, he is a famous management consultant, father of modern management theory.

He very famously said, culture eats strategy for breakfast. And I take this a step further, the chapter in my book about this, I say that strong company culture is a strategy in and of itself. And I really believe that. I think when we make it a strategy that we pursue [00:03:00] in service, not just to our employees and the institutional health of our people internally, it really, really does extend to what we do externally to the point of a better bottom line. I've got a free resource download for you on this topic, too, that I will share more about later. It's all on my website, aubreybergauer. com slash 32 for episode 32. I'll give you the full scoop and details at the end.

But for right now, we are going to see just how healthy company culture does connect to those things like better morale, better employee performance. And like I said, literally how it connects to a strong bottom line as well. Welcome to episode two of season four of the Offstage Mike, let's do it. I'm Aubrey Bergauer and welcome to my podcast.

I'm known in the arts world for being customer centric, data obsessed, and for growing revenue. The arts are my vehicle to make the change I want to see in this world, like [00:04:00] creating places of belonging, pursuing gender and racial equality, developing high performing teams and leaders. And leveraging technology to elevate our work.

I've been called the Steve Jobs of classical music and the Sheryl Sandberg of the symphony. I've held Offstage roles, managing millions of dollars in revenue at major institutions, been chief executive of an orchestra where we doubled the size of the audience and nearly quadrupled the donor base. And now I'm here to help you achieve that same kind of success.

In this podcast, we are sorting through data and research inside and outside the arts. Applying those findings to our work in arts management and bringing in some extra voices along the way, all to build the vibrant future we know is possible for our institutions and for ourselves as Offstage administrators and leaders.

You're listening to The Offstage Mic.

Hi, everyone. Aubrey Bergauer here. Before we dive into today's episode, I want to [00:05:00] tell you about Annual Fun Toolkit. If you're a nonprofit looking to revolutionize your fundraising strategies, You need to know about Annual Fund Toolkit. They're not just another consulting firm. They're specialists in transforming annual funds through data driven donor engagement.

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Now let's dive into today's episode. All right. So last episode, as I mentioned, we talked about the traits of toxic cultures and That research, along with what we're looking at today on healthy company culture, comes from I4CP, the Institute for Corporate Productivity. [00:07:00] I4CP is the leading authority on next practices in human capital, and they do a lot of research on the workplace and what's working to drive productivity and attract the best talent.

All things we want. More productivity, best talent. And so much of their work comes down to this exact topic, strong company culture, and what they find time and time again is that strong cultures are what's driving productivity, are what's driving attracting the best talent. And ultimately improving financial performance.

So this is all just so, so good. It's in their data time and again, as I said, and I shared some of this in the last episode, but I first came across their work a few years ago and then interviewed their CEO, Kevin Oakes here on this podcast, included some of his work as I was researching and writing my book.

And this research that we're covering, though, just to be clear, [00:08:00] last episode and this episode, this is new, or at least newer to me. I found it more recently, I should say. So none of this is in the book. This is all brand new right here, right now. And let's just first talk about what is a high performance organization.

So I defined this a little bit in the last episode, but to break it down just a little bit more, I4CP defines high performance organizations based on their reported multi year revenue growth, profitability, and profitability. Market share and customer satisfaction. So I keep saying financial performance, financial performance.

Yes, that's a huge piece of a high performance organization, particularly in a capitalist place like the United States. So let's be clear on that, but it's not just that it is multi year revenue growth, profitability. Yes, yes, but also customer satisfaction. And I think it's really smart that they put that in there because you can have [00:09:00] revenue growth and do that at the expense of customer satisfaction.

So they kept that piece in the rubric in terms of how were they qualifying what makes a high performance company. And these are all things arts organization want to, right? We basically want to make more money and serve more people. And if we do those things, we're funding our mission and having a big impact.

Broader impact on more people in our community. So these are, these are good things for us. So here are some stats they found before we get into the specific list of healthy traits. Some stats they found are number one, that. High performance organizations meeting the criteria I just described are twice as effective at focusing externally on key customers, markets, and competitors.

So I find this very interesting. This whole episode is about really focusing internally on company culture, but these high performance organizations are twice as effective [00:10:00] at focusing externally, again, on key customers, markets, and competitors. And when they say twice as much, their report was something like almost 90%.

percent of the high performing organizations focus on their customers compared to only 45 percent of the low performance organizations. And again, low performance as measured by their financials. So I just feel like everything I say and teach about. Centering the customer. There are many podcast episodes on that many blog posts I've written.

It's a bunch of what I talk about on my book. It's really a through line for my work. And now I read a stat like this and suddenly I feel like everything I teach about centering the customer starts to make sense, right? Like high performing organizations have as part of their culture to focus on their customers, key stakeholders, their market and on and on.

Anyways, this just really, for me, at least brings a lot into clarity. Here's another stat. This one is also so good for arts organizations. They [00:11:00] found, I4CP found, that high performance organizations are five times more effective at adapting to changing market conditions. Who here listening wishes their arts organization was more effective at adapting to changing market conditions?

Just, I mean, think of everything that has changed in our world, in our market, in your market, wherever you are in the last few years. Like we talk so much about the world changing around us, consumer 81%

A lot of high performance organizations are focusing on this and reportedly good at this compared to only 17 percent of low performing organizations. So adapting to the changing world around us absolutely matters. So I think this makes a lot of sense too, that building a stronger culture is what allows for adaptation, allows for planned [00:12:00] pivots.

I don't know if pivot at this point is like a trigger word for people, but I don't mean these like forced pivots, these knee jerk pivots of, Oh, we got to do this, or, Oh, we got to change this. Or like, you know, so many of us have had experienced so much of that in recent years, but it's to say that it doesn't have to be something that is triggering and that we hate so much, but a stronger culture is what allows us to be adaptable in that way.

So that's all a pretty good segue into the points of what does make a healthy culture First, let me share how did they define or determine which organizations have a healthy culture or not. So we talked about what defines strong performance, but how do we define who has a healthy culture and who does not?

They say, quote, it is one in which employees rated their current organization's culture as very healthy and commonly described its top traits as employee focused, inclusive, of high quality, learning, innovative, and collaborative. So, in other words, [00:13:00] healthy cultures were ones where the employees said so, and the employees used some common specific descriptors, not just because a quote unquote leader or figurehead or whoever filled out the survey said they were healthy.

So I think that's important to note. These companies are identified not just as having strong financial performance, but by their own as being more healthy internally. Okay. The top underlying finding is this. This is straight from the report. They say companies with healthy cultures simply have a different attitude about change.

I swear I didn't make this up. Changing the narrative all the way here, but I didn't make it up. Quote, Those in low performing organizations perceive changes as overwhelming, wearing them down, or as a threat. This is just another one where the data just really brings into focus, into clarity, or makes some of my work make more sense.[00:14:00] 

Uh, cause seeing change as a threat is, in my experience, what happens a lot at organizations who are resistant to change. I would say overwhelm is number two, that was in their quote there as well, but um, and this is just my observation, it's not the research saying that, just my take I'm adding here, but people feeling threatened by change.

You know, they feel like there's something to lose. That's really holding our organizations back. And it's holding us back because many arts organizations. are losing something already right now, losing audiences, losing donors, losing trust, losing relevance. This stuff's hard right now. And that goes right back to changing market conditions, not being adaptable, all these things.

But I can talk about all day about ticket sales and how to increase donations and grow audiences and all that all day long. And, you know, I often do, but to think that these [00:15:00] challenges get addressed better when we have healthier cultures Underscores a different mindset all around change and whoo, that fills me up you guys.

So all right, two more quotes for you and then we're going to get into the actual list of top healthy traits. So this report says, quote, conversely, those in high performance organizations are more likely to view change as expected. And more importantly, as an opportunity, and that is key. Change is inevitable.

We know that. Change is not going to stop. The only thing that's not going to change is that change is inevitable, right? And they're saying that the high performance organizations see change as presenting an opportunity. So here I am, like I said, getting built up all over again over here. Um, I hope that does something for you too.

But last quote, the research report says, quote, This view or mindset on accepting and embracing change. This is a cultural advantage. Their [00:16:00] words, not mine. This is a cultural advantage that plays out every day. And the fittest cultures are the front runners in almost any market. How does that sound? A cultural advantage for cultural organizations.

Yeah, can't get enough, can't get enough. Okay, so we're going to do the same kind of exercise or game as we did last episode, and that is, before I share the results of these top qualities, top healthy traits of high performance organizations, what's your guess? What do you think will be at The top of the list, or at least on the list, for these high performing, healthy culture organizations.

Alright, if you have something in your brain that's good, um, if not, hit pause for a second. I really encourage you to think, like, what would be a healthy trait you hope to see on this list of high performing organizations? Okay, so let's do it. Working backwards, this list is six. The last episode had nine traits of toxic cultures.

This list, they did the top [00:17:00] six traits of healthy cultures that they found. Really permeating the results. Okay, number six. Six and five are tied, by the way, but okay. Number six, collaborative. Healthy cultures, strong company cultures are collaborative. And this showed in the data four times more than in non healthy or the low performing organizations.

Okay, number five, healthy trait of healthy company culture, strong company cultures is innovative. This is a word we say all the time in so many industries, not just ours, but including ours in arts and culture. Okay. Organizations that are innovative, that have employees self describe as innovative, as being part of their culture, they outperform.

And that, that word showed up, like I said, five and six are tied, so four times more frequently this was mentioned by the employees at healthy, fit, strong performance cultures, companies, than the non healthy counterparts. Keeping going here, number four, learning. [00:18:00] Having a culture of learning is number four on the list.

It was mentioned five times more frequently than the unfit culture. Survey respondents having a culture of learning. I love that so much. Another way to say this is growth mindset, right? When we have it as part of our M. O. internally that we are here to learn. Oh, man, no wonder why, like, that allows us to do all those things, adapt, innovate.

Number three, oh, this is so good for arts organizations. Okay, number three, quality centered. Organizations are quality centered, actually do have better financial performance, better, stronger cultures. So for pretty much every arts organization out there, give yourself a check mark on this one. Like quality centered, I think is so ingrained in what we do.

So much a part of our identity. So there we go. We got one in the bag for just about all of us listening here. Quality centered. That was reported six times more [00:19:00] frequently than the non healthy unfit cultures. So good news for us. And number three, quality centered is actually tied with number two, and that is Inclusive.

So this makes sense. If non inclusive, not inclusive was one of the top traits of the toxic organizations, one of the top toxic traits, then the opposite of that being inclusive, that makes sense that it's really high on the list. In this case, number two, for The fit cultures, healthy, strong performance cultures.

Okay. So what's number one? The number one trait of fit cultures, healthy company cultures, strong performance cultures is

that they are employee focused. This is so, I think huge, but also just really interesting because I I don't think I would have guessed, you know, playing my little game or exercise. I don't think I would have had employee focused as number [00:20:00] one. I would have said it matters, but I don't think I would have had it as number one.

And the data show that it was mentioned seven times more frequently. among the healthy culture organizations than their non fit, non healthy counterparts. So, just to put it in context, 7X difference could be the difference between 70 percent of people saying it versus 10 percent of people saying it in the non healthy cultures.

And I'm not saying it is 70 percent versus 10%. Uh, I don't think it's said in the data exactly, but 7 times more frequently is a really big difference in how many people are reporting this. So, employee focused, number one, at least in this data set. Number one trait for healthy, strong company cultures. So how do you get there?

How do you build healthy company cultures? It comes back to renovating a house. So here we are again, talking about renovations. That's what Kevin Oakes, I4CP's CEO, says. It's a lot like renovation. [00:21:00] Okay, let's take a little break. Coming up, we're going to get deeper into this renovating metaphor, starting with the five most important things to think about when it comes to a culture renovation at your organization.

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So this is from Kevin's book. I'm just going to name five things that he talks about in terms of renovation. Like I said, I got a podcast episode with him where he talks about some of these things in addition to his book. And then I've got a free resource for you at the end, uh, as I said at the top. So the first thing to think about when approaching a culture renovation is mindset.

And I mentioned mindset earlier and This goes hand in hand with the [00:24:00] culture of learning. So, as Kevin Oakes says it, the learn it all will do better than the know it all. That's just how it works, just what the research shows. The learn it all will do better than the know it all, and I gotta say, I've met a lot of know it alls in arts and culture.

They exist in every sector, I'm told, but I've definitely met them in our sector, and I've also met a lot of learn it alls, and I don't know, anecdotally, I believe that the learn it all will do better than the know it all, and that's what Kevin Oakes says is important for the arts. This idea of renovating the culture.

The next thing he says is to take small but effective actions. Okay. This matches completely the research on change management. I did a whole podcast episode on this. I got a whole blog post on this. Small actions add up. It's not about the big sweeping change, the big sweeping solution, the total hail Mary home run, whatever sports analogy you want to use small.

So here's an example. Microsoft. [00:25:00] Microsoft. Actually went, you know, massive company, of course, but underwent also a pretty massive culture change, and they worked with I4CP on doing this culture change or culture renovation, maybe I should say. And so what they started doing, many things, but just one example here of a small but effective action.

Microsoft started printing posters that they hung in every meeting room across their campus. And the poster said just this, Is this a fixed mindset meeting or a growth mindset meeting? That's it. They just hung that poster in every single meeting room across campus. That goes right back to the first point about learn it all, we'll do better than the know it all.

Is this a fixed mindset meeting or a growth mindset meeting? And we could so do this step two at our organizations, you know, whether it's printing posters or just saying it out loud, is this a fixed mindset meeting or a growth mindset meeting? And that little step was definitely in the category of small but effective actions that really started making a difference.

Okay, [00:26:00] number three here of things that are necessary for a culture renovation. Number three, transparency. I4CP research has uncovered in several of their studies. So this is a recurring finding that they keep seeing again and again. That is that transparency is a top hallmark of high performing companies and of effective leaders.

The more transparent generally the better, yet it is often very surprising how many companies inside the arts and outside the arts systematically and consciously avoid transparency while at the same time preaching the importance of transparency. I'm pulling this straight from their report. Like some of these are my words, but really it's matching what their data is.

And you know, we talked in the last episode about lack of information sharing. I can think of organizations, large organizations I've worked at and [00:27:00] with where information weaponized, you know what I mean? Like whoever held the most information held the keys to the kingdom sort of a vibe. And maybe it sounds obvious to say that's not healthy, but it's also true in the data that the opposite of that transparency isn't just quote unquote better.

It's actually, according to several studies, a top hallmark of high performance companies. So that I think is just really, I don't know, call it validating or just helpful to know that sharing of information actually is the better way to go. Not just in terms of company culture, but in terms of all the good downstream effects of that that we want to see.

Number four, lining up internal influencers. Okay, this one I thought was maybe newer to me. It definitely makes sense. So here we go. It is estimated that more than 90 percent of change initiatives, culture change initiatives, that is, can be achieved in shorter timescales. In other words, can be achieved [00:28:00] faster.

90 percent of culture change initiatives can be changed Or can be achieved faster and at a lower cost, they say, provided that the right influencers are identified and fully involved in all aspects of the change process. This comes straight from the I4CP research report. So what do they mean about influencers within the company?

Kevin Oaks in his book too gets into a whole, whole process of how do you identify these people who are your internal influencers. Internal influencers are not the most senior people. Almost always that is the case, not the most senior people. Internal influencers are other people within the ranks that really do have a lot of sway, really are recognized by others, um, for one reason or another.

And so identifying those people and really getting them on board with the process and part of the. Change, culture, renovation process is key to making it go faster. That's what this whole, [00:29:00] this whole data point is saying. So more than 90 percent of change initiatives can be achieved faster if we do this and engage and bring along more people within our ranks.

So that's awesome news. And that is because those folks also get to help us determine, going back to this idea, like what is the part of, you know, what is the part of, tradition we want to keep, you know, having those folks be a part of that is so important to in all of this. And that's really the last point here is what Kevin Oaks calls thoughtful preservation.

So like I said before, definitely worth saying again, this is so good for us at arts organizations in their research. I4CP found that 57 percent of organizations that were highly successful in renovating their cultures were very intentional in ensuring that the best of the company's existing norms were preserved and That [00:30:00] fundamental values and history were woven into the new culture.

I read that and I feel, I don't know, just a sense of maybe relief is the word. I don't know. I just feel like this is important for us. We're so steeped in tradition and nothing in this research says that needs to go away. And instead, what it says is, Thoughtful preservation. What are the parts of that tradition that are the existing norms that are the best of who we are?

Who's in our past? What's in our past? And again, it's not burn it down. I said this the last episode. It's not burn it down. It's, it's looking at what are the fundamental values and history we want to keep. Probably not all of it. I will go out on a limb or not even a limb to say probably not all of our past in history we want to keep, right?

But the fact that there saying and showing and what they've learned and studied is that there's definitely good there. [00:31:00] Is, I don't know, like I said, I don't know if it's relief or just something warm about it, but I'm really happy to hear it.

That's kind of where we'll wrap up for today. Through their research, IE4CP identified 18 different steps. I just listed a few of them here. A culture blueprint is what Kevin Oakes calls it in his book. We're going to link to it in the show notes. But again, the analogy is that it's like a house. You rarely tear down the whole thing.

You preserve the good, improve, build, or even replace what you need to. And I just want to leave you with one more stat as we wrap up. And this is I was going to say sobering, so we'll say sobering. The stat is that I4CP found that only 15 percent of companies that embark on culture change are successful.

And I don't share that to end on a downer, I share [00:32:00] that to say it's hard. It's hard work. It's time consuming. And if culture change were easy, if developing a healthy culture was easy. Everybody would be doing it, right? Every arts organization would be prioritizing their company culture. And this is why I see it so much.

This is why people want to leave their organization, or they say it's toxic and they want to escape and go to another organization, and then when they do, it's like the merry go round of all this stuff over again. Same issues, or You know, shade of the same issues, right? Some other shade of the same issues.

It's because healthy company culture does not happen on its own. That's the point. It doesn't happen on its own. It is work that's worth it. And that just goes right back to all the stats at the top about how a strong company culture directly affects financial performance. Arts organizations need, desperately need stronger financial performance.

We need stronger cultures as well. The two go hand in hand. We [00:33:00] absolutely need places of work that are inclusive, that are quality centered, that are fostering a learning environment, that are innovative, that are collaborative, and that are employee focused. That was our list today. And wow, would our industry be so different if we had those traits exemplified and exhibited as consistently.

As we have focused on being quality centered, if we had all six of those equally as part of our focus, the better financial performance piece, that's what I keep coming back to just because it's so clear that this stuff isn't fluffy, it's research backed, and that means it can and has been done by many, and that's the last bit of good news I want to leave us with today.

Research backed means the sample size was significant. It means it can and has be done by other folks. And that means we can definitely do it at our organizations too. Hey, Offstagers. I hope this episode gives you lots to think [00:34:00] about in terms of setting and contributing to healthier company culture at our arts organizations.

I promised I had a free resource to give you on this. Remember the number one healthy trait among the top performing organizations was that they are employee focused, right? So I put together a doc for you of 17 employee focused actions you can take. Several of these are so small, so easy. You could start doing them today, no matter your role or seniority or place in the org chart.

Now, I want to be clear. These employee focused actions are not going to change everything about company culture. There are entire books on this, including a full chapter in mine. But what they are, are ideas and tangible actions to become more employee focused based on what the research says actually drives employee satisfaction and therefore higher performance and better financial results.

So get going towards improving company culture with 17 free [00:35:00] actions you can take when you visit my website, www. aubreybergauer. com slash 32. That's 32 for episode 32. Aubrey Bergauer.

That's all for today, folks. Thanks so much for listening. If you like what you heard here, hit that button to follow and subscribe to this podcast. And if you've learned something or gotten value from this, please take two seconds to leave a quick one tap rating or review and return to all of you. One more time.

Thanks again. See you next time on the Offstage Mic. The Offstage Mic is produced by me, Aubrey Bergauer and Erin Allen. The show is edited by Novo Music, an audio production company of all women audio engineers and musicians. Our theme music is by Alex Broll. Additional podcast support this season comes from Jeremy Cuebas, Kelle Stedman, other members of the Changing the Narrative team, and social media brand management by Classical Content.

This is [00:36:00] a production of Changing the Narrative.

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