Improving Culture: Do You Need That Burning Platform?
by Anthony Demangone
I stumbled upon a great article recently that discussed the role of the CEO in establishing a company’s culture.
As you might expect, the article notes that today, successful CEOs see the development of culture as one of their top priorities. But it argues against using the “burning platform” technique, which involves using or creating a crisis to spur fast changes to a company’s culture.
continue reading »Certainly we understand the logic that underlies this point of view: Companies full of complacent people will rouse themselves only in response to crisis. But experience and common sense argue differently. Consider what people on real burning platforms do. They escape. They barely have time to act, much less change their mind-sets and habits with a view toward long-term success. In the business equivalent, which usually involves a rapid drain of cash and profitability, your options will be similarly limited—in this case, to layoffs, plant closures, responses to the press and investors, and other forms of damage control. Like BP’s recovery efforts after the Deepwater Horizon spill, Toyota’s after the Fukushima disaster, or any plant shutdown made in response to a sudden loss of business, these traumatic activities are typically seen as a one-time event, not as a way of building for the future.
There is a much better way to overcome complacency. As a CEO or senior executive, the greatest thing you can do is to marshal an authentic sense of urgency, but not one built solely on the logical reasons that change is necessary. Rather, build an emotional sense of urgency, focusing on the values that the company cares about collectively: its way of serving customers, its desire for growth and success, its positive impact on social and community issues, and the attraction and welcome that people felt when they first arrived.
