Glug glug. The proverbial watercooler.

It’s where employees take a pause and engage in small talk. It’s where employees keep up to date on the latest developments. And it’s where many of the most innovative ideas first get floated. When employees can casually congregate at the watercooler, cafeteria or ping pong table, it breaks down formal barriers and encourages employees to bond with co-workers outside of their immediate working team. These personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.

But with so many of us now working remotely, interactions with co-workers have become more transactional and largely only with those on our team or within our department or function. Save the occasional Zoom cocktail hour, serendipitous conversations are becoming virtually non-existent. A recent report found that virtual work now accounts for 62% of the workforce, and for many, work-from-home is here to stay. Although the world has adapted almost overnight to working remotely, organizations are now asking what impact this is having on their culture. Case in point: how can organizations recreate unplanned watercooler moments in a virtual work environment?

Creating the Right Environment

Remote work has forced us to think about new ways to support our people as they try to remain productive while feeling isolated and overwhelmed. Ensuring teams have the right digital tools, technology and access to the information they need to do their jobs are table stakes in virtual work. Preserving informal conversations and informal networking takes a bit more thought, especially without physical spaces like the coffee counter, lunchroom or Vinnie’s Pizzeria around the corner.

In a physical environment, the culture encourages watercooler moments through symbols, rituals and artifacts – naming the snack area, choosing unique furniture styles, and allowing personalization of meeting spaces. In a virtual environment, we have to be more overt about the watercooler moment to encourage organic interactions and fight the tendency to easily disconnect. Before looking at solutions to the problem, let’s define the qualities of a great watercooler moment:

• It’s a safe space. Trust is pervasive to the experience. Employees need to feel they can ask questions, share ideas and be “wrong” without repercussion. Employees will avoid the company’s intranet for informal communications if it leaves a trail.
• It’s casual and organic. Informal moments happen in the normal course of the day, on the way between tasks, or in scheduled breaks (i.e. lunch). It shouldn’t feel like another item on the “to-do” list.  Make it fun and easy to slip in and out of.
• It’s acknowledged. While rarely explicit, unplanned interactions are acknowledged as essential to the culture. Successful leaders model desired behaviors by seeking out casual conversations, and encouraging their teams to do the same.
• It’s iterative. Watercooler moments are just one step in a consensus-building process, that builds on and carries forward a continuing conversation. They don’t require hard inputs and don’t expect hard outcomes. It’s about the journey, not the destination.

“Personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.”

Simple Ideas to Get Started

In some ways, virtual work has already begun to break down traditional organizational norms. Despite the lack of a corporate campus, decisions are being made and operations are proceeding, in some cases faster than ever before. The pandemic has created a rapid test-and-learn environment for new ways of working, and is a great opportunity to help your employees connect in new, more meaningful and personal ways despite the distance:

Leverage Technology:

• Consider tools like the Slack app Donut that automate virtual coffee chats by pairing co-workers from different parts of the organization at regular intervals.
• Encourage employees to stay logged into their virtual meeting apps (i.e. Zoom) during the workday and “drop in” for a quick conversation or brainstorm.
• Conduct informal polls for favorite summer cocktails, recipes or outings; enable a comment feature to allow for additional interaction about the poll topic.
• Create an #aboutme hashtag on the intranet where employees can share their hobbies, interests and passions and build affinity groups.

Create Collaboration Moments:

• Form cross-functional working teams from different geographies, levels and skill sets to address social issues (i.e. community outreach, LGBQT, BLM).
• Set up group chats on a messaging platform to discuss non-business topics like trending pop culture, parenting, fashion or music.
• Host virtual brown-bag lunches to cook, share, eat and chat informally.

Have Fun:

• Host a virtual concert where employees and their families can perform a song, play an instrument or do karaoke.
• Encourage book or movie clubs where employees can share and discuss their latest Netflix binges.
• Run a virtual game night where teams play a board game or on-line video game.

Recent world-altering shifts have led to a spotlight being put on organizational culture. As many look to build the cultural resilience needed to help accelerate transformation efforts, Bernhard Schaar, Associate Partner, talks to Helen Rosethorn, Partner and Co-Lead of Prophet’s Organization & Culture practice to understand how organizations might best focus their efforts supported by insights from the practice’s latest global research.

1. What is the model or methodology you use when approaching cultural transformation work with clients?

No matter how digitally-driven an organization may be, it is still human. And for sustained and impactful transformation to happen people must change what they do in a sustained and impactful way. Two years ago, we designed the Human-Centered Transformation Model™ to reflect this core belief.

Just like a human, all organizations have  DNA – the coding that guides it, be that purpose, values, brand or strategy. It also has a Soul – these are the rituals, symbols and behaviors that reflect the beliefs of the organization. It has a Mind – which are the capabilities required to enable it to operate – such as talent and learning to ensure the organization has the skills and expertise to deliver on its goals. And it has a Body – and by this, we mean the operating model and organization design that directs its operations – translating into processes, systems and aspects of governance.

This thinking has helped a lot of our clients grasp that culture needs to be understood as a holistic ecosystem and successful transformation today requires leaders to think about every aspect of this ecosystem.

2. Transformation can be daunting. Where should organizations start when it comes to cultural transformation and driving this change?

In our research last year, (‘Catalysts: The Cultural Levers of Growth in the Digital Age’) we spoke to business leaders to understand WHAT aspects of culture are critical to successful transformation in the digital age. This year, our actionable global report outlines the HOW –how and where to focus efforts in order to power transformation from the inside out.

“No matter how digitally-driven an organization may be, it is still human. And for sustained and impactful transformation to happen people must change what they do in a sustained and impactful way.”

We have identified four pathways of change, which are designed to help leaders understand their “starting point” in the Human-Centered Transformation Model™ based on their perceived immediate need for transformation. We were being asked this key question over and over again: where should I start? So, the pathways are there to provide a perspective for executives to identify exactly where. There are two things to flag though. Firstly, organizations often focus on where it is “comfortable” to start within their cultural context to activate change – that might not mean it is the right place to start. For example, there are organizations where a “comms” focus seems the natural way to kick off change because it feels logical to have everyone “in the know” but very little of substance happens beyond that and change efforts run out of steam, nothing is “landed”. Secondly, even if you start for example with enabling the transformation through a focus on talent systems because you identify that this is what may be holding you back, you still need to consider the whole of the Human-Centered Transformation Model™ to build sustained and real change.

3. Is there any area of the Human Centered Transformation Model™ that should be prioritized over others?

If there is one that is more critical than another it is DNA – if you do not define the change and align on what that means, then you have a “hole below the waterline” from the get-go.  Even if it is a small hole it will come back to haunt you.  What is particularly interesting in relation to this is the emergence of the Transformation Management Office (TMO) in service of both the ambition and the roadmap to get there. The report sets out compelling data about the organizations that achieve greater transformational success through setting up a dedicated TMO.

4. What are your three key takeaways from this year’s report?

• There is no silver bullet – I can’t reiterate this enough. To achieve effective transformation, you need to align the whole Human Centered Transformation Model™
• Select the right starting point – as the pathway focus reveals, selecting the right starting point drives real progress.
• Harness the many different voices – if you need to elevate one leadership behavior that will serve you well to add value to your transformation then it is the ability to harness the “employee voice” of your organization. By this we mean enabling the ideas, opinions and feedback of everyone at every level of the organization. Deep cross-functional collaboration and engagement are required to make transformation work.

5. What impact has COVID-19 had on cultural transformation and on the findings of the Catalysts in Action research report?

COVID-19 is accelerating existing transformation ambitions for many organizations or forcing a reinvention for others, and every shade in between. It also obviously adds complexity because right now nothing is certain, there is a two-speed transformation going on – or maybe better expressed as a transition and a transformation happening at the same time.  One would be hard enough for any organization to manage but two speeds of change is particularly challenging. However, in the current context, change cannot be considered in an isolated way.

I am generally the type of person who naturally seeks to find a silver lining in times of stress and change. When the pandemic disrupted our personal routines and business norms, I very much enjoyed the initial creative flurry of activity as everyone designed a new version of themselves for the world of remote work: where they were going to sit at home, what they would wear, and what background they were going to use (real or virtual).

Any bursts of optimism, however, were clouded by the ever-present anxiety about a future to be defined by what we were losing: the ability to see each other in 3D, shake hands, or embrace. What has surprised me most is how the enforced use of technology in our world of isolation has coaxed out more of our humanity at work.

1. Our whole selves on display. All day.

A decade ago, the poet David Whyte wrote of the sad state of arriving at work, parking our cars and cracking our windows as we headed inside. The real reason we left our car windows cracked, he observed, was so that we didn’t suffocate our souls left behind in our vehicles as we assumed the shadow versions of ourselves which we show at work.

In a world where video conferencing quickly became de rigueur, we were forced to confront others as they truly are and to share a fuller view of ourselves in return. While most have now learned it’s healthy to go camera off from time to time, our insights from our collective period of voyeurism remain.

2. More empathy. More authenticity.

Not all opportunities to connect are truly embraced in our workday world. When COVID lockdown began, the standard obligation to inquire about each other’s well-being was still mostly habitual, not genuine. However, living through tough times together can nurture mutual respect in the understanding that it is ok to admit we are not always at our best. Sharing our raw emotions broke our routines and deepened our abilities to care for each other authentically.

3. More distance. More trust.

As is true in crisis, we bond against a common threat. This rallying together against the common enemy of the coronavirus has forced us to let go of some of our preferences, especially those ways that help us feel in control. With leaders being stretched with so many more critical decisions than before, they are learning they must trust in the decision-making of others. As one of our Prophet leaders observed about the process of letting go, “Perfection is the enemy of ‘good enough.’ And good enough might not include my favorite idea or personal stamp.”

4. Deeper relationships. Enriched collaboration.

The traditional centering of collaboration around functional expertise inadvertently narrows diversity of thought by pre-determining who is in the room. A broader understanding of our colleagues reveals valuable passions and skills that may not be indicated by a job title. As we learn more about each other through these new windows into each other’s lives, we let go of pointless preconceptions and improve our work together.

“Living through tough times together can nurture mutual respect in the understanding that it is ok to admit we are not always at our best.”

What is cultural transformation?

Cultural transformation is about the accelerated changes made by companies that focus on growing their businesses from the inside out – empowering people and the way they work through a human-centered approach. It has become more relevant than ever as organizations build the resilience required to serve their stakeholders in the midst of world-altering shifts. Prophet’s 2020 global research report: “Catalysts in Action: Applying the Cultural Levers of Transformation” intends to help organizations determine how and where to focus their efforts to continue powering their transformations from the inside out and ultimately emerge even stronger.

This report builds on our 2019 research, in which we first identified the cultural levers of transformation. A strong slate of global leaders contributed to these findings via in-depth interviews and we’re fortunate that many of these individuals have once again participated in our 2020 research to share progress and lessons learned, in addition to the stories and examples gathered from other leaders to demonstrate the power of cultural transformation in action.

Why is cultural transformation important? 

The future is here. Companies no longer have discretion when it comes to transformation for the Digital Age; it is their only option. Deferred digital decisions – which previously may have shown up as small chinks in a company’s armor – have now exposed significant vulnerabilities in organizational cultures across industries and regions, shattering any reason to hold onto historical behaviors, skillsets, organizational designs and operating models.

Our research shows there is a need to address culture as a part of an effective transformation.

Though the context for companies’ transformations has dramatically changed, the core methods have not. Prophet’s Human-Centered Transformation Model acknowledges that just like the humans that comprise them, organizations have DNA and a Mind, Body and Soul and successful transformation depends on these elements working in sync to drive sustained cultural change.

“Focusing on levers that help create safe spaces and meaningful mechanisms for employees to adapt to the change are critical.”

The application of these cultural levers invites its own set of questions and challenges. We’ve observed that organizations are often unsure where to start or where to go next in terms of which levers to pull. Our research report identifies four pathways of cultural change that are intended to help organizations focus their efforts and make sustained progress toward cultural transformation. These pathways are not intended to be prescriptive but rather a helpful aid for how organizations might navigate transformation based on overcoming primary roadblocks. The report also provides best practices and stories of how other companies are moving forward in making progress against these cultural levers.

Four Pathways of Cultural Transformation

We’ve identified the following four pathways of cultural change. These pathways align to our Human-Centered Transformation Model and can be viewed as either entry points into the model or ways to move through the model, i.e., where to focus next:

Defining the Transformation

Consider this pathway to be the “control tower” for all other pathways. This is where a company solidifies its DNA: its business and brand strategy; purpose and values and employee value proposition. Once established, DNA serves to continually direct the ongoing change. In order to successfully define the transformation, organizations must set a powerful, actionable ambition and clarify the leaders who will lead the cultural transformation.

Directing the Transformation

Directing the cultural transformation requires focusing on cultural levers related to the Body of the organization. This focus ensures organizations are taking a holistic view of the governance, processes, roles, systems and tools needed to enable an operating model that makes transformation real. Many organizations have made progress on a clear roadmap and KPIs, though other key levers, such as pushing decision rights downward have proven more challenging. Our research provides examples from organizations that are successfully overcoming these hurdles. Furthermore, a powerful story emerged in the data where organizations with an empowered transformation management office (TMO) are experiencing more positive impact and transformation success.

Enabling the Transformation

Enabling the cultural transformation requires focusing on the Mind within our Human-Centered Transformation Model. The Mind is where organizations identify, source and build the capabilities required for employees to thrive and for organizations to succeed in the Digital Age. These organizations will benefit from a focus on levers related to upskilling their employee bases and upgrading the ways they identify, recruit and retain talent – resulting in a supercharged workforce that is prepared to take ownership of operating in new ways.

Motivating the Transformation

Organizations that are motivating cultural transformation must focus on the organization’s Soul. In our Human-Centered Transformation Model, the Soul is where leaders are equipped to both talk and “walk the talk” around the transformation journey to create trust among employees to adopt and evangelize new ways of working. Stories, rituals and symbols help build belief among employees and connect their day-to-day work to where the organization is heading. Focusing on levers that help create safe spaces and meaningful mechanisms for employees to adapt to the change are critical, as is recognizing progress being made along the way and sharing these stories of both successes and lessons learned.

It’s easy to know where you’re reading this blog: at home. In fact, you haven’t been to an office in many months now because the COVID-19 crisis launched the largest volume ever of workers into the world of remote work and virtual collaboration.

An Option Becomes a Necessity

The advent of remote working technologies 20 years ago didn’t have a widespread effect on how most people work. From Fortune 500 companies to digital natives, it has been common to find remote work happening in only one isolated part of the business or not at all. In fact, remember when Yahoo! famously banned remote work? Or IBM?  So, it was not a surprise at the outset of the COVID crisis to see waves of announcements about “testing the technology”.

That “test”, of course, is still ongoing. It is only now in this unprecedented moment that a deep and unavoidable business need and the existing technology have come together. Suddenly, what was once largely implemented as a lifestyle choice for most companies is a universal necessity. From companies extending work from home policies through the end of the year to Twitter’s recent announcement that it’s employees will be allowed to work from home forever, it’s looking likely that our working lives may never be the same again.

The Technical Foundation is in Place

Whether or not we’re individually skilled at remote work, collectively most corporations are dominated by those who have relatively little experience navigating the new world into which they have been unwillingly thrust. This is evidenced by the many articles about the perils of back-to-back video conferencing on Zoom.

“Suddenly, what was once largely implemented as a lifestyle choice for most companies is a universal necessity.”

As a result, every employer now realizes that their workforce needs both proper equipment and real skills to work effectively remotely and that they, as a culture, had better get good at remote collaboration or they will be outpaced by those companies that already can.

Core Skills for Remote Working

This moment offers the opportunity to take a hard look at how you might best equip your workforce for a future way of working that is arriving precipitously fast. How might you begin preparations now to be able to dominate your competition in this brave new world?

There are well-known needs for skills around goal setting and time management for each individual when working from home. However, as many people are now discovering, working remotely with distributed teams requires new application of existing skills; and also, some skills which might be entirely new. At Prophet, we’ve identified three core skills for remote teamwork that need support and reinforcement:

1. Clear Communication: Working in offices offers the opportunity for what architects and workspace designers call “unprogrammed interactions”, by which they mean casual run-ins in the kitchen, rest room or on an open plan floor. It’s not until you’re remote full-time that you realize how often you depend on bumping into someone in the office pantry and using it as an opportunity to quickly clarify your intentions, needs and objectives. Working remotely requires colleagues to communicate more clearly on the first go, often using new tools. Knowing when it’s best to use messaging (e.g., Text, Teams, Slack) versus video chat or email is important, as is being able to articulate your information and expectations clearly in that format.
2. Virtual Meeting Design and Facilitation: Working remotely, most of your meeting participants are going to be easily distracted, whether by virtue of the fact that their meeting attendance tool is also their tool for messaging and email; or because a partner, child, or dog demands their attention. We probably do not spend nearly enough time on meeting design in the normal course of events. Working virtually, however, makes ‘magic meetings’ with little or no design even more problematic. Knowing how to design virtual meetings, meaning how long a conversation or other activity should take, how to orchestrate different types of productive conversation and which specific tools will keep participants focused are all critical for making a virtual meeting successful. Equally important is knowing how to facilitate across the distance—which sometimes means separating the process role of facilitation from being in a participant role.
3. Remote Relationship Building: Anyone who has been on a great team knows that success is not just driven solely through processes and roles, but that team culture is part of the secret sauce that distinguishes exceptional output from the merely mediocre. With a pandemic that has separated us all physically, it’s more critical than before to be able to lean into soft skills and drive connection across the gap. Team leaders must be able to create a safe space where individuals can freely share ideas, get advice and balance workload in a way that respects their personal lives. This is how creative solutions to pressing challenges will be found and how teams will come through the crisis intact.

A trained eye observing a successful virtual team will see all three of these skills in action. Individuals will interact with clarity and purpose. Meetings will have a clear structure and focused, engaged participants. And teams will bond in the ways great teams do – each person connected to one another’s passions, talents and needs – enabling effective working harmony.