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In times of constant change, organizations must adapt. They must consider external change factors and incorporate change internally. In this video, we are asking how organizations change and how organizational culture and leadership affect this change.
We have three learning objectives for today's session. First, we want to explore the roles of identity, culture, leadership, and psychological safety in influencing employee attitudes towards change. We want to understand what influences whether employees are open to change or not. Second, we will identify strategies for supporting employees and reducing resistance during change. After examining why employees are open or not open to change, we will look at ways to help them become more open. Third, we will address how leadership impacts the sources of change and creates a positive environment for adaptation.
Let's start with a brief example. Consider Kodak, a film company operating in the analog photography industry during the 1980s and 1990s. When photography shifted from analog to digital, Kodak failed to adapt. Researchers have identified several factors behind Kodak's failure. Employees strongly identified with the traditional film industry, their skills and legacy were tied to it, and they resisted redefining the business model. They were confident—perhaps overconfident—about their market leadership in the film industry.
Kodak's organizational culture favored tradition, leading to groupthink. Opinions questioning the company’s established norms were not accepted. Leadership challenges existed throughout the organization. The firm needed immediate profitability, especially after global competition intensified. Leaders delayed crucial decisions regarding investments in the new technology, thus delaying the transition.
There was also a lack of psychological safety at Kodak. Psychological safety means trust that one can voice opinions and speak up about issues that might not be widely valued. Without it, employees with critical perspectives were reluctant to challenge the dominant opinion. Innovation and creativity suffered, and fewer new ideas emerged.
Today, organizations face similar challenges, especially with changes related to sustainability and digitalization. We ask: How do we ensure that all staff members are on board with sustainability efforts? How do we prevent resistance to change and keep everyone aligned?
This leads to four key questions we will discuss in this session:
We will have four separate videos. The first video focuses on resistance to change—understanding why employees resist and what psychological reasons stand behind that. The second video discusses identity and culture, examining how they shape self-conception, values, and openness to change within an organization. The third video looks at leadership and how leaders inspire employees in times of change and help overcome resistance. The fourth video focuses on psychological safety, crucial for open communication. When it is lacking, employees remain silent, hindering change.
In summary, we learned that changing towards sustainability is a must in today's business environment. However, organizations must bring staff and stakeholders on board, ensuring alignment and support. While organizations may be eager to change, it can be difficult to align all staff members with transformation processes. This challenge applies not only to sustainability efforts but to any major change. Organizations must consider the critical roles of identity, culture, and psychological safety to prevent silence and resistance. Leadership is critical in establishing a foundation that encourages willingness to change.
Stay tuned for our next video.
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