When Management Changes Disrupt Your Culture

Written by Datis Admin

July 17, 2018

When Management Changes Disrupt Your Culture

This DATIS Blog Article, “When Management Changes Disrupt Your Culture”, was originally posted by Sharlyn Lauby, Great Place to Work on September 26th, 2017 and was reposted with permission.

Talent development strategies were key themes during this year’s Great Place to Work Conference. Organizations are asking their managers questions like, “What are you doing to develop talent? And specifically, your replacement?”.

Managers have a key responsibility to hire and train their replacement. So, it goes without saying that company culture can be interrupted when there’s a change in management. Organizations don’t always get to plan for management changes, so when they do, it’s a big deal. It’s a visible process that demonstrates whether the company really lives their culture.

During the conference, Managing Partner Emeritus Bill Hermann and current Managing Partner Gordon Krater shared their formula for successfully transitioning management responsibilities at Plante Moran. The firm is the 14th largest certified public accounting firm in the U.S. It has over 2,000 employees and has been recognized as a “best place to work” by Fortune Magazine for 13 consecutive years.

Their transition took 8-9 months. Just let that sink in for a moment. Almost a full year. Now some of that time could be attributed to the position of managing partner. But after hearing Hermann and Krater share their story, it could also be attributed to their desire to make the transition successful. The goal of transitioning management responsibility was for the incoming and outgoing managers to maintain credibility. Both of them. Equally.

So many times, when we think of transitioning management, it’s because one person is leaving the company. In this situation, Hermann wasn’t leaving. He simply wasn’t going to be managing partner anymore. It could hurt the organization if the transition didn’t preserve the individual’s credibility.

3 Phases to Successfully Transitioning Management

In today’s work environment, we are going to be faced with more situations where a manager transitions and doesn’t leave the company. Maybe they move to another department, division, or position. Maybe they retire and come back as a part-time consultant. Organizations should put more thought into the transition process. Hermann and Krater shared three phases to a successful management transition that apply at any level of the organization.

1. Become knowledgeable about the company.

This might seem like the easy part because it includes understanding the financials and the business. It might involve some technical training. But knowledge of the company means giving individuals the experience they will need in a future role. It’s allowing them to make mistakes while gaining knowledge. Remember the goal of maintaining credibility while creating a teachable moment. It can be tricky.

2. Take responsibility for the organization.

Great managers should try to leave the organization better for their successor. They don’t “kick the can down the road”. They take care of business and do what’s in the best interest of the organization. Once a successor has been identified, managers need to step aside so the successor can start to assume responsibility. But not step so far into the background that it appears the new manager isn’t getting the support they need to be successful.

3. Maintain the company culture.

We know that culture is the number one reason people come to work for our organizations and the number one reason they leave. Managers should not only act in the best interest of the organization but also its culture. For example, in organizations where employees know the founder and remember the early days, it can be hard when a new manager takes over the reins. New managers need to understand and preserve the culture.

A lot of organizations do Phase 1 and 2 well. Managers know the company and their responsibility. It’s the culture component that can derail their success. Company culture is made up of those moments of truth about who the company hires, promotes, recognizes, and fires. If you want to learn more about how to maintain company culture during a management transition, check out Hermann and Krater’s book, “Succession Transition: A Roadmap for Seamless Transitions in Leadership”. It’s a super easy read that can provide a little creative inspiration for your organization.